Research finds average retailer risks £59,145 of aftersales opportunity

Recent research has revealed that the average retailer has £59,145 of aftersales opportunity at risk due to poor data health.

The analysis by MGS, of more than 700,000 dealer management systems across 555 franchise sites, measured the completeness, accuracy, and conversion potential of every DMS record.

The company said the findings displayed a “worrying picture”. 24% of DMS records had a significant error (including incorrect service due dates and missing contact details) that could prevent timely customer contact and negatively impact retention.

Andy Donaldson, sales director at MGS, said: “Poor data health means retailers are missing a golden opportunity to connect with customers and encourage them to visit for service and MOT.

“Alongside this missed potential, the average retailer wastes £8,000 every year trying to contact customers who have sold the vehicle or are very unlikely to return for service

“As part of the Health Check, we also applied advanced lead scoring to show conversion potential. Amazingly, 28% of customer records in the DMS had less than a 7% chance of converting.

“With resource pressures right across the industry, this opens a valuable conversation on the importance of prioritising prospect follow-up."

The research also showed that 17% of customers in the average DMS no longer owned the linked vehicle whilst 27% of MOT due dates were out by 14 days or more.

Tight budgets mean a likely increase in the number of cars being driven without current MOT certificates, according to Halfords.

The Department for Transport (DfT) has a consultation underway currently on proposals to change the UK's MOT requirements, which have remained the same for 50 years.

The company said the £59,145 was calculated by applying the average retention rate by the retailer to provide an accurate figure for opportunity at risk.