Eighty-nine percent of dealership owners and senior executives said they are pursuing sales of aftermarket products as a strategy to improve per vehicle revenue (PVR) while maintaining a high customer satisfaction index (CSI), according to a survey funded by LoJack Corporation conducted at the National Automobile Dealers Association (NADA) Convention released Feb. 3.
Seventy-one percent said aftermarket products play a more important role today in generating profit for their business than in the past.
The survey also revealed that 90 percent of these key decision makers are not planning on downsizing employees or employee hours, and 61 percent said they had no plans to reduce auto inventory to increase PVR.
“What we’ve learned from this survey is that rather than downsize like so many other industries, dealerships are pursuing a proactive sales approach to maintain growth and profitability, despite the projected decline in new car sales this year,” said Donna Driscoll, vice president of global marketing at LoJack. “We see this as an opportunity for LoJack to continue to strengthen relationships with dealers by delivering aftermarket products, services and support that ultimately enable them to improve their PVR.”
When asked about the general mindset of customers today, 95 percent said they have a higher interest in products that provide good value or financial practicality, such as financing deals and discounts, while 85 percent said customers have a higher interest in products that provide a sense of security and peace of mind, such as extended warranties and theft protection systems.
Respondents also indicated that only 65 percent have a higher interest in products that appeal to consumers’ sense of style.
Reputed High Quality, Product Compliance, Brand Name Critical to CSI
When determining which aftermarket products dealers would sell to achieve high CSI,
an overwhelming 99 percent said reputed high quality was important to very important, 92 percent said product compliance was important to very important, and 78 percent said known brand name was important to very important.
“These three elements are a roadmap to dealer success,” Driscoll said. “By presenting products with these attributes, dealers both fulfill customer needs and facilitate sales.”
The survey comprised one-on-one interviews with 75 owners and senior executives attending the NADA conference in San Francisco. Executive interviewers from an independent agency, working on behalf of LoJack, intercepted respondents in person, administered screening questions to ensure they qualified for the survey, and proceeded with a brief, five-minute interview. All interviewing took place Feb. 1-2.
About LoJack
LoJack Corp. specializes in stolen vehicle recovery technology. In the United States, its stolen vehicle recovery system, utilized by law enforcement agencies, has maintained more than a 90 percent successful recovery rate during the 16 years it has been available to the consumer.
The LoJack System operates coast-to-coast in 20 states and the District of Columbia, representing the areas of the country with the greatest population density, highest number of new vehicle sales and incidents of vehicle theft.
For more information, visit www.lojack.com.
