If I’m an owner of a GM car dealership, I’m loving OnStar.
But, if I’m you, I don’t think I like it very much unless you have it in one of your personal vehicles. I think it is fantastic technology, a great source for some very valuable data and, most importantly, it’s a great way to keep the dealership connected to the customer.
According to Automotive News, OnStar has roughly 6 million customers of which 4 million have signed up to receive diagnostic e-mails about their vehicle. In addition, 25% of the 4 million subscribers are now receiving service reminder e-mails from their dealership.
These e-mails not only remind the vehicle owner about maintenance work that is needed, but provides them with a way to deliver coupons to sweeten the deal.
Sure OnStar has smartphone apps, First Assist, turn-by-turn navigation assistance, crash notification, hands-free calling, a push-button link to a service representative for directions and assistance, and has sent more than 147 million monthly diagnostic report e-mails to their subscribers. But the dealership doesn’t have a service relationship with the car owner yet. They want to get this vehicle owner coming back so they can pick up some service dollars and, ultimately, sell them another car or truck.
Your customers have a lot of choices for maintenance and repairs so you need to work at enhancing the service relationship.
Are you placing reminder stickers on the windshield? Are you mailing reminder cards and coupons? I hope the answer to both questions is “yes.”
Are you sending e-mails? There is no reason you shouldn’t be doing the same thing as OnStar. Are you collecting the e-mail addresses of your customers?
Are you asking them if they would like to be sent service reminders and coupons? Remember, OnStar got two-thirds of their 6 million customers to sign up and receive diagnostic e-mails, so the customer must see a value in it.
You have the opportunity to provide truly important information to your customers given the fact they are driving older vehicles that will be in need of vital service and maintenance. But, don’t feel you have this old vehicle service market locked up. There are two trends to be aware of:
1. According to R.L. Polk, consumers are holding onto new cars an average of 63.9 months, which is up 7.2 months compared to two years ago. This gives the dealership a better chance at some post-warranty service work.
2. Some car dealerships are selling “older” used cars in order to capture the service work and an eventual sale of another vehicle.
Communication technology is changing along with the communication practices of your customers. E-mail and texting are common business practices that need to be a part of your everyday routine. Enhance the relationship with your customers by communicating the valuable knowledge you have about their vehicle in the manner they want to be reached.
