As the auto industry continues to change, staying on top of trends that benefit OEMs means maximizing your profits.
Driver assistance on the rise
Most auto accidents are tied to human error, and today’s cars are evolving to use new technology that improves safety. That progress means serious business: the Advanced Driver Assistance System (ADAS) market is projected to be worth $43.27 billion by 2025.
Given the more sophisticated mechanical parts involved in this developing technology, OEMs stand to profit big time by focusing on quality anti-collision and ADAS parts. And with online auto parts and accessories sales projected to be a $14 billion industry in 2020 (and $19 billion by 2022), now is the time for dealerships to ramp up eCommerce and other digital sales efforts.
Stand out through service
To gain a competitive edge against the aftermarket, which has traditionally commanded the mechanical parts market, positive customer experience is incredibly important. If every parts department offers similar products for similar prices, consumers will be loyal to the one that offers the most rewarding, hassle-free experience from start to finish. In fact, one study found that 54% of consumers would buy from dealerships who provide great service even if they charge higher prices.
READ MORE: 2020 Fixed Ops Revenue Trends
Dealerships can outdo aftermarket auto parts suppliers by not only providing better parts (OEM quality with a warranty) but also by giving consumers a level of service and smooth purchasing experience that they can’t find anywhere else. Growing consumer loyalty to the dealership through standout treatment will generate more revenue.
Make data work for your dealership
Today’s cars are increasingly built with complex digital technology, which gives OEMs a treasure trove of data to leverage in the parts and service market. One study from Mckinsey.com suggests that by 2030, OEMs could gain market power through their firsthand access to car-generated driving and diagnostic data, which will be of even greater importance as the market shifts to favor more optimized customer experiences.
The auto industry landscape is changing and it’s time to act. Don’t get left behind. Connect with RevolutionParts to maximize your parts sales channels and show consumers why OEMs beat aftermarket vendors every time.
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