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Ladies and Gentlemen Start Your Service Engines

Competing on Service Excellence in the Automotive Industry

  • Automotive companies that capture the service business - and
    most importantly, keep it after warranties expire - gain not
    just in sales and profit, but also in reduced costs and greater
    customer satisfaction and loyalty
  • This article discusses key success factors for getting the service engines started and maximising the value from service business within the automotive sector
  • Thereafter it explains the impact of services on profitability and growth
  • It further explains that while the challenges for achieving service excellence are legion, a review of them indicates the levers automotive companies can pull to shift the service engines into high gear. These are:
    • Service Strategy and Business Design: laying the foundation
    • Service Operations Planning and Management: enabling service excellence
    • Service Execution: delivering service excellence one customer at a time
  • There are various reasons why automotive companies need to prioritise the service business among their strategic initiatives and investments. These reasons are explained in depth in the conclusion of this paper
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