Monetising the Connected Car

All four panellists agreed: Telematics is absolutely a profitable endeavour. But when targeting customers, the focus should be on what the system can do, not on technical specifics. As Lanctot explained, separate monthly subscriptions and highly technical language distract from what telematics brings to the table. “What sells the car is really offering solutions,” said Deitz. “It’s about solving problems for the customer, and doing it in a way that is cost-effective for them.”
The need for cost-effective problem solving makes a dealership’s service department an especially well-placed application for telematics. When service departments use telematics to provide objective insight into a vehicle’s needs, they see an increased likelihood that customers will service their vehicles in a timely manner. This allows dealers to deliver outstanding service and win customer loyalty. According to Hubbard, “Telematics is changing the dynamic of a workshop.”

Telematics-enabled service delivers serious benefits for participating dealers. As Hubbard reported, parts and service accounted for 11% of Group 1 Automotive’s 2014 revenue, and 40% of its gross profit. Parts and service are a major part of a dealership’s bottom line, and savvy dealers will use telematics to maximise their capacity.

Dealers and OEMs aren’t the only ones to benefit from connected cars. Telecommunications companies have an unparalleled opportunity to integrate their services into consumer vehicles, especially when taking advantage of the “upgrade envy” currently dominating the mobile market.

“We should be thinking about upgrading the capabilities of vehicles over time so they can take advantage of the latest technologies, the latest operating systems, the latest applications, the latest radio functionality,” Coursey said. “If we can find a way to do that, it would satisfy the automotive manufacturers, the customers and the whole ecosystem.”

Though the panelists brought widely different perspectives to the table, all four agreed that telematics is no passing fad. Perhaps Hubbard summed it up best, saying telematics “is relevant, and it’s relevant in a big way.”

Customers today expect businesses to stay on top of technology. From a dealer standpoint, there is a lot our customers can do on their own, from making appointments on their phones to having a smart car with telematics that tells them when they need service. In using Xtime, we wanted to make sure that our customers were as educated about their cars as possible while also being able to maximise our advisors’ time. Our customer loyalty was pretty high to begin with but we wanted to make that extra push towards being technologically savvy and making sure the Service Advisors got an equal number of customers on a daily basis. From a presentation standpoint, the customers liked seeing that we used a tablet from the moment they arrived until they checked out. This platform has helped us keep organised and better serve the customers and the guys in the service drive.

This system helps us support all of our personnel from start to finish. The majority of our days are very busy in the service drive but Check-In 7 makes it run so much more smoothly than before. Xtime has definitely helped even out even the most hectic processes to allow us to focus on the customers more efficiently. From both a dollar standpoint and a customer service standpoint, this system helps us have really successful days even when it’s very busy.

Getting Scheduling 7 and Check-In 7 up and running was a two-phased process. We spent time making sure that the system’s implementation was well thought out, so our transition to Xtime was pretty seamless. Once everyone at the dealer was fluent in the software, we loved it. I particularly enjoyed that our Service Advisors could just walk up to a car and give their full attention to the customer without having to focus on filling out paperwork and then rush the paperwork to the front desk. The whole platform is very intuitive so can’t see anyone having a big learning curve.

Our personnel like how easy and convenient the system is to use and how easy it makes their jobs. Our Detail Manager especially likes how it allows the advisor to do car walk-arounds more easily with customers to show them damage discovered on the vehicles. This is key for upselling but more importantly builds trust with customers in that we can show them opportunities for improvement with their cars, which has allowed us to convert more damage repairs. Mostly, we like being able to do everything from the tablet.

This platform has changed the way we interact with customers. The greatest feedback we get from them is that they love being able to take ownership of their cars’ service needs with the scheduling system. They can make appointments in a time slot that is convenient to them, in a format that is convenient to them. It has also changed the way they view us as a service provider—customers will actually call us when they’re running late for an appointment, so they’re just as conscious of trying to maintain a good relationship with us as we are with them.

From the onset, we don’t give our customers any reason to go anywhere else for service and Xtime supports this initiative. The biggest suggestion I can offer to a dealer considering Xtime is to use Check-In 7 and Scheduling 7 together, not just one or the other. It will help your service drive run better and give customers the tools they need to communicate with you, as well as help you stay competitive by handling heavy schedules and walk-ins more effectively.