The Quest for Connectivity: The Impact of Telematics on Dealers

The frank Agency Branding
Summer 2017
the-quest-for-connectivity

2017 is the year of connectivity. By December Electronic Logging Devices (ELDs) will be a mandatory feature in commercial motor vehicles, and we’re already seeing rising numbers of passenger cars equipped with telematics functions.

Soon, the majority of vehicles on the road will be powerhouses of data, constantly communicating with the operator and vehicles around them. Vehicle tracking tells you where your vehicle is – whether you’re in it or not. Electronic sensors tell you how close you are to that lamp post. And, notably for dealers, diagnostic systems notify drivers when something goes wrong under the hood.

A unique and never-before-seen opportunity now presents itself to dealers: offering connectivity service to customers that would link their vehicle diagnostic systems directly to the dealership service department.

All This Data and No Place to Go

Currently, most diagnostic data either gets routed to an OEM or simply notifies the operator with a dashboard light. But when a light is tripped, many vehicle operators don’t know what it’s for, or whether it denotes a serious problem. However, if these vehicles have a connectivity service through their local dealership that pings the service department when maintenance is required, this guesswork is gone.

The service manager can reach out directly to the customer, letting them know their vehicle has a problem, what the problem is, and how soon they can get in for service. Or, if the issue is not a pressing one (for example, the vehicle is notifying the operator that it will need an oil change soon), the dealer can simply send out a direct mail or email offer to get the customer in at a later date.

This is especially helpful for commercial vehicle owners who stand to lose a source of income if their vehicle is down.

Telematics are set to change the face of vehicle dealerships. Are you prepared to adapt?

For them, diagnostic notifications need to be taken very seriously to prevent breakdowns – and yet, owners also benefit from knowing what kind of attention the problem deserves. If their diagnostic light is indicating a minor issue that can be addressed down the road, then a quick phone call from a dealer service center could actually save a commercial vehicle owner some downtime.

The New Norm for Fixed Ops

This type of direct dealer-to-driver connection could spell significant expansion for fixed ops departments. When dealers are the first to know and the first to respond to their customers’ needs, they can more easily capture after-sales, but more importantly, they retain their customers' loyalty.

The connectivity shift will require willingness on the part of dealers to dive into the realm of telematics so they are able to expertly address issues and answer questions for their customers. It will also require dealers to be proactive about sending calls, texts, or marketing to those vehicles owners who require service – especially those with more immediate needs.

Connectivity provides more opportunity than ever before for dealers to maintain contact with their customer base and keep them coming back for service. It’s time to embrace the era of telematics – it’s here to stay, and the future of your fixed ops department depends on it.

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