Dealerlogix Delivers 22% Increase in Gross Revenue for Audi New Orleans

May 22, 2022Case Studies

The fixed-ops team at Audi New Orleans had a decision to make. The technical issues they were experiencing with the dealership’s prior service software made the luxury automaker’s new video mandate for multipoint inspections impossible to meet.

“We were having a lot of issues with the software’s video features. Our techs would try to upload videos, but they wouldn’t record right and wouldn’t upload,” recalls Service Director Ken Morales. “Same thing on the service drive. We were having issues with their tablets and customers being able to approve or decline service recommendations.”

Audi New Orleans made the switch to Dealerlogix in October 2020, just as the luxury automaker’s video mandate was taking effect. Morales says the solution’s software-driven sales process delivered immediate gains, with alignments climbing from 33 to 80 services a month and tire sales increasing from 180 to 300 units.

“Tires, brakes, and alignments are the big things we sell a lot more of now, and that’s because videos help customers see what needs to be done,” says Morales. “They’re just more inclined to approve repairs if you send a video versus calling them and telling them what needs to be done.”

Gross Sales Revenue Jumps 22%

Audi New Orleans now averages $253,000 per month in gross sales revenue, up from $208,000 before the switch. Dealerlogix’s software-driven sales process also has the service department closing in on a 60% closing ratio on recommended repairs, up from 35% with CDK Service.

The process starts with Dealerlogix’s digital inspection sheet. It walks Morales’ tablet-equipped technicians through a process designed around what drives the dealership’s bottom line. It also arms them with image and video capture capabilities that set up Dealerlogix’s Live Estimate. Sent by text or email, these Live Estimates allow service customers to see the real-time price impact as they approve the technician’s recommended repairs.

Dealerlogix then automatically stores all declined repairs in the customer’s profile, making it easy for service advisors to access when checking in customers during their next service visit. As for approvals, Dealerlogix’s Live Estimates can capture customers’ signatures digitally to confirm what’s accepted. Morales says most customers then choose to pay online, so all his advisors need to do when customers pick up their vehicles is hand over the keys.

“Even if our customers are not familiar with how a car works, seeing those videos makes the decision easier to make,”

Morales says, noting that the videos also double as protection for his service department.

“When we check cars in, we document all existing dings or scratches. If a customer complains, we send them the video as visual proof of the condition of their car.”

Faster Approvals, Improved Throughput

In a recent survey conducted by Audi, 80% of vehicle owners indicated that they would not have purchased a service if they hadn’t seen a picture or video of the technician’s recommendation beforehand. Morales points to another benefit of this more digital retail approach: a reduction in wait times for customer approvals when inspections are sent via text. For Audi New Orleans, approvals are received in minutes.

“We used to play phone tag, and, sometimes, it would take hours to hear back from customers,” he says, adding that metrics related to the dealership’s loaner cars reveal his department’s improvement in service throughput. “Our average loaner car turn time used to be seven to eight days. Now it’s down to three to four days — literally cut in half,” he notes. “This corresponds to our RO volume, which has picked up quite a bit.”