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The importance of aftersales in an era of uncertainty
The importance of aftersales in an era of uncertainty
While showrooms have been forced to close as a result of COVID-19, workshops have remained open as they are deemed an essential service. With uncertainty regarding the potential for future COVID-related disruption, your aftersales department is the one area of your business where you can look for stability for the longer term.
Aftersales and COVID-19
The pandemic has had a significant impact on aftersales departments however, for many, workshops remained busy due to public service vehicle maintenance work and pent up demand from the initial lockdown period.

While the global vaccine rollout is expected to result in the beginning of economic recovery in the coming year, it is difficult to predict the restrictions that may be imposed on retailers in the near future. However, given that workshops are deemed essential services, your aftersales department will remain a more consistent and predictable source of revenue.
Challenges
Regardless of closure restrictions imposed in the future, your aftersales department will continue to be a consistent and predictable source of revenue.

Undoubtedly, aftersales departments have been significantly impacted by the pandemic. Some challenges include:
  • knock-on effect of the of the decline in car sales
  • global part supplies
  • lower traffic volume
  • fewer collisions
  • customers delaying preventative repairs
  • reduction in spending on non-essential, performance parts and accessories
  • recently unemployed customers delaying essential repairs
  • long term, with reduction in new car sales this year will see a decline in the number of cars needing aftersales services after 3-5 years

Aftersales Departments have had to adapt, with many having to completely alter their work space, implement new health and safety protocols, employee shift patterns, customer deliveries and flexible work schedules.

However, workshops remain busy and at the peak of lockdown, many were maintaining vehicles for emergency services and essential workers.

With this in mind, it is important to instil confidence in potential aftersales customers by communicating with them effectively.
Opportunities
While it is impossible to predict the changing nature of COVID-19, as workshops are deemed essential services, it is likely that they will remain open. There are some aspects which may see an increase in aftersales demand:

  • There will be pent up demand for essential service, repair and pre NCT work
  • Many commuters are choosing to travel via private car over public transport. In a recent survey, 50% of commuters said that they are less likely to use public transport as a result of COVID-19
  • Some customers may delay their new car purchase and hold onto their older car for longer thereby requiring more repair work
  • With dealerships shifting their vehicle sales model online almost overnight, there are opportunities to further enhance digital offerings in your aftersales department. With an increase in overall online consumer retailing, is there room for improvement in terms of parts click and collect, immediate service booking, at home services etc.
The light-vehicle aftermarket has typically been the most recession-resistant part of the automotive industry. Its size primarily depends on the size of the car parc, rather than new vehicle sales. When economic pressure causes drivers to delay purchasing new cars, repairs on their current (and older) vehicles become even more vital.
— McKinsey: 'Beyond coronavirus: The road ahead for the automotive aftermarket'
Communicating with aftersales customers during COVID-19
1
Open for business
There may be an assumption that as your showroom is closed, your workshop too is closed
2
Safety measures in place
  • Consider a walkaround video of a demonstration service customer visit
  • Clearly explain the sanitation procedures in place
  • Highlight how each touchpoint has been carefully considered
  • Offer additional options for those particularly concerned such as collection and delivery
3
Promotions & offers
  • Encourage customers to book their service or repair appointment early
  • Provide a clear indication of service lead times
  • Promote special offers and seasonal campaigns
4
Increase communication
Make sure that your dealership is available to answer aftersales customer enquiries across your channels; social, website and phone. Enhance the aftercare experience through video strategies to boost engagement.
A renewed focus on productivity
While several dealerships are seeing early success in remote vehicles selling, activity is only a fraction of normal levels.

Take this time to conduct an audit of your aftersales department to see what improvements you can make in the areas of:
  • Equipment - updating/replacing?
  • Technicians - skills gap or need to recruit
  • Processes - digitisation of communication
  • KPIs - reassessment of monthly and annual KPIs
  • Productivity - overall productivity and efficiency of workshop
Digital aftersales improvements
While the focus for most dealerships has been on transitioning to a digital offering for vehicle sales, now is the ideal time to consider digital improvements to your aftersales department.

Consider how you can build a seamless digital journey for your aftersales customers incorporating;
  • immediate online booking
  • initial troubleshooting via video or live chat
  • self check in
  • personalised post service and repair videos
  • digital paperwork
  • remote handover

Implementing these digital initiatives, as standard, will instil confidence and transparency in the service and repair process and will also encourage repeat business and advance bookings. Doing this will ensure a more reliable stream of aftersales revenue with greater visibility of your future income, allowing you to make a more accurate plan for 2021.
TIP
Keep your Google My Business page up to date with new hours and special aftersales promotions and safety measures. More than 50% of online searchers will stop on a dealership Google My Business page [if they think you aren't open] and never make it to your dealership website."
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