Oil really can be black gold for automotive repair shops. According to The NPD Group, oil change service is the leading driver of traffic through service bays and represents the greatest opportunity for cross-selling other services.
NPD’s car care consumer tracking research finds that tire rotations, air filter replacements and car washes are among the top services purchased at the same time as an oil change.
“With consumers driving less and softer demand for automotive maintenance and repair, automotive service outlets need to maximize each service occasion,” said David Portalatin, NPD executive director and aftermarket industry analyst. “Service providers who are providing just the oil and filter service are missing out on significant revenue opportunities.”
NPD’s Car Care Track, which monitors purchase behavior details of the “do-it-yourself” and “do-it-for-me” auto aftermarket and repair consumer, finds that 24% of customers are purchasing tire rotations with their oil change, 17% buy an air filter or cabin air filter replacement, 12% of oil change customers purchase a car wash or car detailing, and 11% purchase wiper blades or brake service.
NPD’s Car Care Track also reported that independent repair shops are getting a higher percentage of brake service and a variety of repair and replacement-oriented needs, such as steering and suspension, fuel system, electrical and engine work, whereas car dealers and tire shops are much more effective at cross-selling tire rotating or balancing. Quick lubes are more likely to cross-sell air filter replacements in conjunction with the oil change, but lag behind other service channels in all other categories.
“Each car that enters a service bay represents a finite opportunity for revenue growth. Once that car exits the bay, unperformed maintenance and repair represent lost sales that may prove difficult to capture on some future occasion,” says Portalatin. “Suppliers and service providers, working together, can evaluate the service mix and find opportunities for growth, while also offering consumers complete car care service.”