Equity mining helps dealerships identify customers who are in a good position to get out of the vehicle they have and into a new one for about the same monthly payment. That builds loyalty by helping service customers use the equity in their used vehicles to buy new ones. It’s also a cost-efficient way to turn vehicle inventory because it minimizes marketing cost.
The service center practice creates a revenue cycle for the dealership’s other businesses, including the new and pre-owned departments and finance and insurance. It also benefits the service department, since the vehicles traded in must be prepped for resale and have parts replaced. Profitability from the new-car and trade-in sales have both increased through equity mining.
“Service customers are the most valuable customer, and it became apparent we were missing so many on a daily basis,” Dement said. He said the missed opportunity became clear to him when he noticed his service department lounge filled with people…
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