A recent analysis of Xtime metrics conducted by Cox Automotive has indicated a decrease in service activity at franchised dealerships in the U.S. during February compared to January, despite a slight uptick in revenue. This observation aligns with historical trends, where February tends to pose challenges for service departments.
The Revenue Index metrics from Xtime metrics are a monthly look at how franchised dealerships’ service departments are performing, measured by the number of repair orders and revenue received from those jobs.
Amidst the seasonal fluctuations, Cox Automotive noted a promising trend in the Repair Order Revenue Index, which demonstrated a year-over-year increase. February registered 139.9, marking a 1.6% rise from January and a significant 4.5% increase from the same period last year. Notably, this index has surged by 26.4% since February 2019, largely attributed to inflation, alongside elevated labor and parts costs.
On the other hand, the February Repair Order Volume Index experienced a decline, dropping to 78.8, down 4.1% from January. While this index showed a modest 2.2% increase from February of the previous year, it also reflected a notable 12.3% decrease from February 2019.
Skyler Chadwick, Director of Product Consulting at Cox Automotive, shed light on the metrics and offered recommendations for managers in navigating such challenges. “February is typically a bump in the road for service departments, with low consumer spending,” Chadwick remarked. “The data indicate a decline in repair order volume, partly due to customers missing appointments.”
As dealerships continue to adapt to market fluctuations and customer behaviors, leveraging data-driven insights remains critical in optimizing service department performance and enhancing customer experiences.
Cox Automotive emphasized that the monthly Xtime volume and revenue metrics serve to illustrate average service department performance over time, with data indexed to February 2019. These insights offer valuable perspectives into service department dynamics across franchised dealerships in the U.S.
Chadwick says, “In such challenging times, dealers must prioritize appointment confirmations, leveraging simple solutions like text reminders,” Chadwick suggested. “The decline in appointments was observed across all OEMs, presenting an opportunity for dealers to enhance their operations in this area.”
