VIDEO ROI
When we started deploying video in dealerships, we wanted to prove the ROI. Once we were able to integrate with DMSs, we could provide dealers with a Delta report. This report worked for dealers with low or medium adoption. It was a comparison of Customer Pay Repair Orders with and without video. This report was the single most important data point that drove adoption for some of our quasi-engaged dealers. The difference in labor dollars per RO and parts per RO was clear. This ultimately was the report that took good dealers and made them great.
Our OEM partner shared with us that, with over a million RO sample size, revenue grew by $55 per RO. At the same time, customer satisfaction metrics increased. In addition to our OEM partner’s success, below you will see the results that show the differences in revenue by model year.
HOW DEALERS AND OEMS MEASURE UTILIZATION
Utilization metrics are the most important measurements gauged by dealers and OEMs today. The reason is simple: to provide great CX, grow revenue, and create data, you need lots of video communications. The standard communication trail is Videos: Taken, Sent, and Viewed. This was the first generation of measurement for dealers and certain OEMs who have become early adopters.
As utilization increased we began to realize what percentages would become the benchmarks for average and “Best in Class” dealers. First we needed to establish a target for the first number in the equation: HOW MANY VIDEOS SHOULD BE TAKEN? That measurement ended up being the total amount of videos taken as a percentage of total customer-facing Repair Orders (Customer Pay and Warranty).
HOW DEALERS AND OEMS MEASURE UTILIZATION
In sales, the measurement used by most dealers is much like service with the difference being that videos taken are measured against total internet and phone leads.
In one case study, we studied a large dealer group customer and compared December 2019 versus December 2020. They took 6934 sales videos for the month and added an additional 1500+ appointments. The biggest move was in their appointment set rate which increased by 11 points. Which was a 52% improvement over the previous year.
What is next for OEMs and dealers.
The next level, for the advanced dealers and OEMs, is what happens after they achieve a high take rate and a high view rate.
We are currently in the middle of this evolution and are working with all stakeholders on these next targets. When video taking has been adopted and the views are strong, we need to look for the next level measurements. Although we will dive into this deeper in the next report we release, we will give you a hint with two words: Length and Quality.
BEST PRACTICES
HOW LONG ARE SERVICE AND SALES VIDEOS
Best practices on videos require keeping the video to the point. “The pause button is your friend.” In service, after showing underneath the vehicle, most technicians pause the video to lower the vehicle so that they can video under the hood.
In sales, most consultants start with a selfie as an introduction to build rapport. They pause and then move on to a personalized video of the vehicle. Lengths of video differ based on how much needs to be shown or details the customer has asked about.
The one factor we find with our high video volume dealers is consistency. The leaders have consistent processes for taking video.
Below are the average video volume for service and sales by length.
