Beaman Toyota improves customer satisfaction scores while increasing revenue with on-demand rides
INDUSTRY | AUTOMOTIVE
Challenge
Getting to and from Beaman Toyota for car repairs was costing the dealership. Long wait times, high shuttle maintenance costs, and pressure on service advisors who juggled dozens of clients led to poor customer satisfaction scores.
Solution
RedCap Shuttle OnDemand, powered by Lyft, was the key to improving operational efficiency by giving service advisors more time to spend talking to customers. Beaman Toyota reduced customer wait times, freed up service advisors, and eliminated shuttle costs—all while increasing average repair order.
Impact
- Increase in revenue by improving average repair order from $150 to $215
- Net savings of $10,000 each month from eliminating shuttles and improving operational efficiency
- Beaman Toyota moved from the bottom 10th percentile for customer satisfaction to the top 25th percentile for its comparison group
- Increase in CSI score led Beaman to win Toyota’s prestigious President's Award for Customer First, reserved for top performing dealerships
RedCap Shuttle OnDemand, powered by Lyft, improves Beaman Toyota’s CSI score while increasing revenue. Service advisors can now spend more time talking customers through additional car repairs, increasing the average repair order from $150 to $215.
Located in bustling downtown Nashville, Beaman Toyota is one of the top-selling and servicing dealerships in the Southeast. The 400-employee dealership prides itself on treating both its staff and customers like family and is located in a historic building where Elvis Presley recorded his double-platinum single, “Heartbreak Hotel.”
The challenge
Beaman Toyota puts people first, but getting customers home once they drop their cars off for service appointments resulted in poor customer experiences. During peak hours at the dealership, anywhere from 30 to 40 customers could be waiting in the lobby at the same time.
“A lot of customers got so frustrated, they would just leave before we were able to get to them, and we never got an opportunity to service their car,” says James Stephens, the Fixed Operations Director of Beaman Automotive Group, who has nearly three decades of experience under his belt.
For the customers that stayed, service advisors had to rush their appointments to ensure those waiting for a ride would catch the next scheduled shuttle. More times than not, the advisors would have to cut their conversations with customers short, leaving no time to discuss additional repairs or suggested maintenance.
Shuttle vans were often running late. And once on the shuttle, customers complained about the “cheap Nashville tour,” with multiple drop-offs throughout the city. The shuttle program drove customer service scores down, yet it cost Beaman Toyota between $20,000 to $30,000 a month to maintain. Stephens knew that something had to change.
“We have benefitted so much from the amount of time we’re now able to spend on customers’ cars. It’s hard for me to give you a value because the value to me is so large. ”
— James Stephens
Fixed Operations Director, Beaman Automotive Group
The opportunity
Inspired by a dealership in Arizona that offered a 24/7 service model, Stephens began researching how rideshare could improve operational efficiency. “We sat down with many people trying to figure out which rideshare solution was the best fit,” says Stephens. RedCap Shuttle OnDemand, powered by Lyft, was the best solution to meet Beaman Toyota’s need for flexible, affordable rides.
The solution
Beaman Toyota began using the RedCap and Lyft integration in 2018. The software integrates Lyft’s transportation network into RedCap’s dealership experience platform, making it easy to use for service managers who can book customers' rides ahead of appointments or after a meeting ends. Rides are covered by the dealership and customers do not need the Lyft app to get a ride.
Within a month of offering customers rides to and from the dealership, Beaman Toyota saw results. Their customer satisfaction scores rose from the bottom 10th percentile to the top 25th percentile among their comparison group.
Eventually, their CSI score rose from 89% to 94%, helping the dealership win Toyota Motor Company’s coveted President's Award for Customer First. This prestigious award is reserved for outstanding Toyota dealerships who go above and beyond for customers and excel in all areas of operation. It is the highest honor a dealership can receive.
Not only were customers more satisfied, but service advisors had more time to spend walking customers through repair and maintenance needs. The RedCap and Lyft integration reduces rush hours at the dealership with rides that fit into customers’ schedules. This led to fewer interruptions for service advisors who can now more thoroughly explain what technicians did to the car in the shop while suggesting additional repairs. As a result, average repair orders rose from $150 to $215, increasing revenue for the dealership.
“That’s the most important part of all of this—the amount of time that my technicians and my advisors can spend with customers and their vehicles. We have high closing percentages on recommended maintenance,” shares Stephens.
By eliminating shuttle fleets and reducing the peak hours at the dealership, Beaman Toyota also decreased its outside service expenses, saving about $10,000 a month. “We put a 25-mile limit on our area to control the cost,” Stephens adds. These savings, combined with the increase in customer satisfaction scores and average repair order, help drive Beaman Toyota’s business forward.
TOP BENEFITS INCLUDE
Unlocking sales
Instead of herding customers to shuttles at peak hours, service advisors now have more time to walk customers through their recommended vehicle repairs.
“We saw a significant increase in the amount of money spent per repair order going from about $150 to $215 on average.” - James Stephens, Fixed Operations Director, Beaman Automotive Group
Improving customer satisfaction scores
Beaman Toyota initially ranked in the bottom 10th percentile of all Toyota dealerships in the US for customer service. However, after using RedCap Shuttle OnDemand, powered by Lyft, they rose to the top 25th percentile in 2018.
“Everyone is impressed with how quickly they can get to their destination.” - James Stephens, Fixed Operations Director, Beaman Automotive Group
Saving money with operational efficiency
Before using the RedCap and Lyft integration, Beaman Toyota spent up to $30,000 a month to maintain, insure, and drive a shuttle fleet of four vans and eight loaner cars. Now, they save about $10,000 per month.
“When I looked at the cost of eliminating the shuttle program and going to rideshare, it was a no-brainer.” - James Stephens, Fixed Operations Director, Beaman Automotive Group
Offering reliable rides
Customers trust the RedCap and Lyft integration to get them home or to the office on their own schedules, alleviating rush hours at the dealership. Stephens adds that Lyft drivers have become an integral part of the Beaman Toyota community—some have even become customers.
“A lot of Lyft drivers stay around our area, so customers start to see drivers on a regular basis. They’re starting to build relationships. I've had customers buy gifts for drivers.” - James Stephens, Fixed Operations Director, Beaman Automotive Group
Looking ahead
James Stephens hopes to continue using the RedCap and Lyft integration to improve customers' lives and help protect his community. “During Phase I of the COVID-19 crisis, Nashville became a ghost town,” Stephens shares. “We started using Lyft for pickups and delivery.”
To help keep both technicians and customers socially distanced, employees would take a Lyft to a customer’s house and drive their vehicle to the dealership for service. “That’s been a big impact for us because many customers don’t want to come into our location. We do everything we can to protect our customers and staff and make them feel comfortable.”
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