Service Business Falls in December
Lowest reading in years exposes room for improvement, Cox Auto says.
IMAGE: Pexels/Andrea Piacquadio
Service drive volume fell in December to its lowest level in six years, though service revenue rose.
The drop in business at franchised dealers is an opportunity for growth by making service a seasonal spending priority, Cox Automotive says.
The 5% month-over-month decrease – 3% year-over-year – put Cox’s Repair Order Volume Index at 82.1, tying its lowest reading in six years. The data, which tracks average service drive business, is indexed to January 2019.
Revenue, meanwhile, while it fell 1.5% month-over-month, rose 3.5% year-over-year and was up dramatically – 36% – over December 2019, Cox said largely due to inflation.
It said dealerships have room for improvement, as there was a 5% drop in what it calls same-day sales, or repairs made the same day as diagnosis.
It recommends digitizing customer interactions that enable them to approve repairs from their phones, and offering flexible payments, both to build trust and make customer experience more efficient.
Originally posted on Auto Dealer Today
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