Xtime's automotive service experience solution shows boost in revenue and retention for dealers
Xtime's Spectrum service solution delivers convenience and efficiency in service and ownership experience
Jan 25, 2017, 14:21 ET
REDWOOD CITY, Calif., Jan. 25, 2017 /PRNewswire/ -- Xtime, a Cox Automotive™ brand, today released 2016 data on the impact of its Spectrum solution, the brand's fully integrated service experience platform. Since Spectrum's launch last year at NADA 2016, Xtime has continually gathered and analyzed user data on how Spectrum affects dealers' ability to improve the ownership experience and drive customer retention and revenue.
Results of Spectrum's first year in the marketplace underscore the significance of the ownership experience. Using data based on Xtime dealers' usage from Q4 2015 to Q3 2016, Xtime found that dealers using the full Spectrum platform were able to increase annual revenue by at least $660,000.1 The data also indicates that four specific capabilities within Spectrum significantly impact revenue, as well as retention, by helping dealers optimize the ownership experience:
- Consistent multipoint inspections: Spectrum's digital multipoint inspection tool, Inspect, helped Xtime dealers perform regular multipoint inspections more frequently, enabling more efficient and comprehensive service. This led to an average revenue increase of $141 per vehicle, or $191,000 in additional monthly service revenue.2
- Convenient online scheduling: Xtime Schedule offers an intuitive online scheduling option, which improved show rates by 8.7 percent on average.3 This resulted in 50 additional monthly repair orders and nine new online customers per month,4 as well as a 6.6 percent increase in service retention.5
- A streamlined service lane process: The Xtime Engage tablet-based feature provides access to menus, pricing and history in the service lane, which increased service retention by 8.2 percent.6 Use of tablets can increase CSI scores by an average of 67 points.7 This level of convenience and transparency in the ownership experience increased dealers' monthly revenue by $13,000.8
- Lost souls recovery: Xtime Invite identifies specific shop days and times that are underutilized and sends special incentives to vehicle owners who have defected from servicing at the dealership. This combination of customized discounting and improved convenience enables dealers to recapture a monthly average of 24 lost customers who hadn't visited the dealership in almost two years.9
"It's gratifying to see results this strong just one year after launching Spectrum," said Jim Roche, senior vice president of marketing and managed services at Xtime. "Consumers have grown accustomed to high-quality services outside of automotive, so their expectations are high. These improved CSI scores and retention rates prove Spectrum is helping dealers deliver a superior, seamless service experience in a way they weren't able to before, and the revenue increase speaks for itself. We look forward to helping even more dealers realize results like this in the coming year."
"Our initial love affair for Xtime was always tied to a service scheduling tool for ongoing communications with customers," said Shaun Del Grande, president of Del Grande Dealer Group in San Jose, California. "After that, it became sort of a no-brainer for us to really look at the whole suite of services Xtime had to offer. The tools that Xtime provides make it a lot easier when we're with a guest, because we're using devices that they feel comfortable with, so it feels like it's more of a collaborative discussion and not just us trying to sell them anything," said Del Grande. "We're utilizing technology that helps bridge the communication gap and creates trust between us and our guests. It creates validity with what we're presenting."
Providing an optimal ownership experience is a proven driver of revenue and retention, and research indicates that 94 percent of dealers already believe the service experience is more important than the repair itself.10 Spectrum's integrated platform equips dealers to deliver the superior ownership experience that today's customers expect.
To learn more about how Spectrum can optimize customers' ownership experience and drive profitable growth, visit Xtime at the 2017 NADA Convention & Expo, booth #1537.
1 Based on average of 977 repair orders at $199 per month
2 Average monthly increase, Dec. 2015–Nov. 2016
3 Average annual increase, Q4 2015–Q3 2016
4 Average monthly increase, Q4 2015–Q3 2016
5 Average annual increase, Q4 2015–Q3 2016
6 Ibid.
7 J.D. Power, "Technology's Impact on Retail Satisfaction", October 2015
8 Average monthly increase, Q4 2015–Q3 2016
9 Average annual increase, Q4 2015–Q3 2016
10 Xtime Foundational Research, February 2016
About Xtime
Xtime delivers retention solutions for the automotive retail industry. Xtime, headquartered in Silicon Valley, is the exclusive or preferred provider for 25 major global automotive manufacturers in the United States, Canada, Europe and Australia, as well as leading dealership groups, and services 7,600+ dealerships. Xtime is a Cox Automotive brand. For more information, visit Xtime.com
SOURCE Xtime