Failure to sell Red work during VHC process costing UK franchised dealers more than £460 million in lost sales9th March 2016 – Franchised dealers are missing out on £461 million worth of revenue by failing to sell Red work identified during customer vehicle health checks (VHCs), new data from automotive industry consultancy BTC has revealed. Across the UK’s 4,900-strong franchised dealer network, this equates to £94,084 of lost sales per dealer, raising further concerns that independents and rapid-fit operators are being allowed to benefit from missed opportunities. The data was gathered using autoVHC, BTC’s electronic vehicle health check system, which recorded information from a sample of 500 UK dealers in 2015. It revealed dealers sold an average of just 56.6% of urgent Red work, such as severely worn or illegal tyres and faulty brakes. This equated to £42.19 of unsold Red work per vehicle health check (VHC)and an annual total of £47 million across the sample. On a national scale this means £461 million of lost sales per year. BTC chief executive Guy Allman said: “The failure to sell Red work continues to be a major missed revenue opportunity for franchised dealers. When you consider that after sales departments typically contribute 50% of a dealership’s annual profits, this is a significant problem that needs addressing. “Red work is identified as faults that if not addressed pose a serious safety risk and in many cases will mean the owner will be breaking the law if they continue to drive the vehicle. The fact that dealers are only persuading customers to address these issues 56% of the time also raises a major duty of care question, with the threat of potential legal action another concern.” The problem of missed... read more
BTC teams-up with website analytics platform CANDDi to offer UK dealers and manufactures online visitor insightsBTC has teamed-up with website analytics platform CANDDi to offer UK dealers and manufacturers a solution for identifying and profiling their website traffic. The automotive consultancy, which specialises in electronic vehicle health check (eVHC) and lead management software for the franchised dealer sector, as well as services such as training programmes and contact centre capabilities, will begin distributing the software in November. CANDDi uses IP look-up and data capture methods to deliver intelligence about otherwise anonymous online visitors. The tool, designed by the Manchester-based company’s chief executive Tim Langley, has already been rolled out to more than 300 businesses internationally. Its insights can be used to bolster sales approaches, by determining the identity of potential customers visiting a dealer or manufacturer’s site, and the products they are looking at. CANDDi, which can be fully integrated with a range of Customer Relationship Management (CRM) systems and email marketing tools, also allows users to build and engage with customer databases, and gain valuable metrics on website and product engagement. Nick Squire, Operations Manager at BTC, said: “CANDDi provides invaluable information for sales and marketing teams and is a perfect fit for the automotive sector. “Today, most car sales begin as initial online searches, so it’s vital that dealers and manufacturers understand who customers are and what they are interested in, at the earliest possible opportunity. “This information can then be used in the sales process, to ensure the customer is being offered a tailored service.” In addition to IP look-up technology, which can determine a website visitor’s approximate location, CANDDi also uses opt-in capture fields to gather specific data, allowing individual... read more
Franchised dealers are missing out on more than £450 million worth of revenue by failing to sell Red work identified during customer vehicle health checks, new data from leading automotive industry consultancy BTC has revealed.
Across the UK’s 4,900-strong franchised dealer network, this equates to £92,145 of lost sales per dealer, raising concerns that independents and rapid-fit operators are being allowed to benefit from missed sales opportunities.read more