Aftersales. The Way Forward

Aftersales. The Way Forward

In recent years, the margin on new vehicle sales profits has been declining steadily. The day where new vehicle sales volumes keeping the doors open has long gone. With increased overheads, manufacturer annual employee training obligations, special tooling, CI obligations, the list can be extensive. This has been observed by the major manufacturers supplying the Australasian market in recent years. In turn, this trend has had manufacturers placing a strong emphasis on the operational values of their Aftersales departments.
A profitable Aftersales department, running correctly, can assist significantly to not only back end but also front end. A very important factor, is that of gaining customer retention through a positive Aftersales experience. A dealership can easily lose a customer through a bad experience in Aftersales, even after a positive buying experience through thier new vehicle sales departments. On the flip side, Aftersales has a higher success rate of retaining a customer after a poor buying experience through their new vehicle sales department, turning the customer around, thus resulting in a positive customer retention and future re-purchases.
Manufacturers are now on a major push to ensure that their northern hemisphere dealer network are following suit and empowering Aftersales departments to lead them forward.
In Ireland, it is predicted that new vehicle sales volumes will decline by 10% in 2017 from 2016. With market uncertainty, Brexit in motion for the next two years, we need Aftersales departments to be operating at their full potential. With the Euro strength on the weaker GBP, used UK imports into Ireland has risen by over 40% in the first quarter. The time is now, to capture their business through a strong Aftersales presence.
Let my team help you achieve your full potential.
Jarrod Nisbet
Directing Partner.

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