Chapman Automotive Group puts customers first with on-demand rides thanks to Lyft and Xtime
INDUSTRY | AUTOMOTIVE
Challenge
Chapman Automotive Group needed a transportation solution that would enhance customer satisfaction and improve operational efficiency across its 26 dealerships in Arizona.
Solution
Xtime Rideshare powered by Lyft increases customer satisfaction and service throughput with safe, reliable on-demand rides.
Impact
- Customers usually wait 3-4 minutes for a Lyft ride whereas they used to wait over an hour for shuttle vans at Honda Tucson
- Dodge Chrysler Jeep Ram Scottsdale saves $5,000 a month with Lyft
Xtime Rideshare powered by Lyft decreases customer wait times for shuttles and increases operational efficiency across Chapman Automotive Group’s 26 dealerships.
As an industry leader since 1966, Chapman Automotive Group has one of the largest online selections of new and used cars for sale in Arizona and even services many of the cars it sells. With almost 1,700 employees, Chapman Automotive Group is made up of 26 dealerships that are dedicated to providing the best experience possible to car owners.
The challenge
Getting customers to and from dealerships efficiently matters when thousands of customers are coming in and out of Chapman dealerships for car maintenance and scheduled service appointments each month.
For years, Chapman dealerships provided free shuttles or loaner vehicles to move customers from A to B. However, long wait times for shuttle vans and multiple stops along shuttle routes led to customer complaints and inefficient use of time.
Not only were shuttles slow, they were also expensive to operate. Some dealerships employed dedicated full-time drivers, while others relied on parking lot attendants to drive shuttles, which kept these employees away from their day-to-day responsibilities and limited their time to train for other high-priority roles.
“With one driver gone for three hours during that particular day, I've got limited service for other customers. Switching to Lyft was a matter of enhancing our level of service,” shares Mike Ellis, Service Director at Chapman Dodge Chrysler Jeep Ram Scottsdale.
“With the Lyft and Xtime integration, courtesy rides take 3-4 minutes to arrive. With shuttles, customers were waiting for 1 hour or more.”
— Scott Haddock
Service Director of Chapman Honda Tucson
The opportunity
To make employees more efficient and to stay true to its customer-first mission, Chapman Automotive Group saw an opportunity to improve how it moved its customers to and from dealerships by offering on-demand Lyft rides.
Service departments were already using Xtime Schedule to book service department appointments for customers. Xtime Rideshare powered by Lyft enables service advisors to easily arrange safe, reliable rides to and from the dealership in just a few clicks.
“You just pull up the appointment card, click ‘rideshare,’ put where they need to go, and submit the request,” shares Scott Haddock, Service Director of Honda Tucson. “Requesting a Lyft courtesy ride in Xtime is easy.”
Customers then receive a confirmation text from Lyft with instructions and details about the ride.
The solution
Almost immediately, service advisors found that the Xtime and Lyft integration saves customers time. Customers can drop their cars off before work and be confident that they will reach their next appointment on time.
It’s like having “an unlimited number of shuttle drivers at all different times of the day,” shares Bob Rose, the Service Director of Scottsdale Ford Chapman Dealership.
Mike Ellis adds, “I have the ability to put eight people in eight cars to take them exactly where they need to go now.”
Not only can Chapman employees prioritize their customers’ time better, but they can organize their own day-to-day schedules more efficiently. Former shuttle drivers were cross trained to perform quick-lane work. Instead of driving, staff can now change oil and check tire pressure.
“We’ve increased throughput and expanded our service tremendously,” Bob Rose of Chapman Ford explains. His dealership experienced a 53% increase in net profit despite a 5% drop in traffic due to COVID-19.
At Chapman Honda, Scott Haddock’s team became so efficient that it can now process the majority of express business, such as oil changes or tire rotations, in 45 minutes or less. He estimates that his dealership has reduced a customer bottleneck by up to 35%, meaning that employees can service more cars each month by getting customers in and out of the dealership faster. Consequently, Chapman Honda was one of 30 dealerships out of 660 that won the prestigious Honda Express Elite Award last year.
"There are times where I'll have 20-25 cars in my service line. That's where the convenience of Lyft comes in,” shares Scott Haddock. "Order a Lyft and the customer’s gone within minutes. No stress to the customer or my advisor.”
TOP BENEFITS INCLUDE
Flexible rides on customers’ schedules
Say good-bye to long waits. Service advisors love that on-demand rides put customers in control of when they get picked up.
“The number one benefit for me is time. We contact a Lyft and within three to four minutes, I have somebody taking my customer wherever they need to go. There is definitely a convenience factor for me and my customer.”
-Scott Haddock, Service Director, Tucson Honda Chapman Dealership
Cost savings that contribute to sales
By reducing shuttle and loaner fleets, some Chapman dealerships save upwards of $5,000 per month in shuttle costs while giving service advisors time back in their day.
“My service advisors are spending more time with each customer which has allowed them to excel at selling.”
-Mike Ellis, Service Director, Dodge Chrysler Jeep Ram Scottsdale Chapman Dealership
Easy, simple controls
Chapman dealerships are able to book rides quickly while setting price limits, creating peace of mind.
“I put a dollar amount on Lyft rides. For a one way trip, the maximum cost per ride is $60.”
-Scott Haddock, Service Director, Tucson Honda Chapman Dealership
Make the most of staff’s time
On-demand Lyft rides enabled dealerships to cross-train shuttle drivers to do quick-lane work like changing tires, which increases throughput in the service line and results in higher net profits.
“We're able to do larger work at a lower cost. Our net profit has had a 53% increase despite staring down a 5% drop in traffic due to COVID-19.”
-Bob Rose, Service Director, Scottsdale Ford Chapman Dealership
Looking ahead
Chapman Automotive Group looks forward to continuing to implement convenient and cost saving technologies that improve customer satisfaction. According to Mike Ellis, “the customer comes first. Without a customer, we have no reason to be. When a product like Lyft assists us in offering ‘the remarkable experience’ —that’s the way it should be.”
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