Over the past few years, there has been a major push by dealerships and manufacturers to focus on service retention. The top two services customers have performed away from the dealership are oil changes and tires.
Why Should I Care About Selling Tires?
Yes, tires are a low gross profit item compared to services that require more labor hours. However, 75% of consumers purchase tires from the first person that recommends them. Furthermore, 78% of consumers maintain their vehicles at the place where they purchase tires.
How Will Tires Help Me With Retention?
Did you know that 15% of vehicles in the service drive need tires? That’s 1 out of every 6 customers rolling into your service drive! Yet surveys show that despite promotional efforts and tire displays, only 40% of service department customers are aware that their dealership sells tires.
Don’t feel discouraged! The good news is over 80% of these same consumers would be “likely” to purchase tires from the dealership. Breaking it all down, customers would prefer to buy their tires at the dealership then drive down the street to the discount tire shop. Let your service customers know they’ll get the best value at the dealership on EVERY type of service for their vehicle.
The Bottom Line?
Focus on tires and you’ll see a boost in your service retention numbers.