Analysis reveals dealer workshops have seen £210 million EV service revenue loss, compared with ICE, according to ADS (Auto Data Solutions)
High EV recall rates are good news for dealers looking to claw back a £210 million gap in service revenue between EV and ICE vehicles via improved customer retention.
Jon Sheard, Operations Director of ADS, said: “Our analysis is good news for dealers who are confronting fewer organic opportunities for customer contact between services. For those dealers who manage their customer data most effectively the disproportionately high rate of EV recalls is a golden opportunity.
“Just as proactively offering more frequent tyre rotation, due to the difference in weight and torque for EVs, is an important customer contact opportunity for dealers, increased recall appointments bring another welcome reason for customer contact.
“But to manage this opportunity effectively it’s essential to have reliable customer contact details in the database and to have a clear and timely view of recall data.
“Dealers who take advantage of data-cleansing and updating services consistently report significantly increased revenues through improved customer retention.
The higher rate of EV recall activity provides dealers with more opportunities to offset the service revenue erosion caused by growing EV market share by creating more reasons for direct customer contact.
ADS argue that customer contact between routine appointments is an overlooked driver of both profitability and retention.
Addressing it transforms the current overrepresentation of EVs in recall data into a win for dealers.
