Boosting Fixed Ops Revenue: The Secret Weapon of Virtual Receptionists

The importance of fixed ops to dealership revenue can’t be overstated. According to The Presidio Group, fixed ops was the top segment for gross profit among the six publicly traded franchised dealership groups, at 39.6%. Dealerships have the opportunity to maximize the hidden potential in fixed ops by effectively handling every phone call and appointment. One powerful solution: Use a digital assistant like STELLA as a virtual receptionist that can manage calls and drive measurable results.

The revenue challenge in fixed ops

Dealerships face many common obstacles that impact fixed ops revenue, including missed calls, call abandonment, unbooked appointments, and overwhelmed staff. Estimates put the average number of calls to dealerships at over 500 monthly. Missing these calls means saying no to revenue opportunities to the tune of millions of dollars per year. 

On top of significant hurdles like high call volumes, dealerships must also address changing customer expectations. Nowadays, customers seek immediacy and convenience. According to PwC, “nearly 80% of American consumers say that speed, convenience, knowledgeable help, and friendly service are the most important elements of a positive customer experience.” Customers want to be able to get answers to their questions at any time, and they want any problems resolved quickly. Not meeting these expectations puts dealerships in danger of alienating customers, who could turn to competitors for 24-hour service, seven days a week.

Defining virtual receptionists and conversational AI

A virtual receptionist that leverages conversational AI is an advanced software solution designed to intelligently manage inbound and outbound communications for a business, primarily over the phone. Unlike basic automated systems, it uses sophisticated technologies like Natural Language Processing (NLP), Natural Language Understanding (NLU), and machine learning. This allows it to understand the nuances of human speech, discern caller intent, engage in natural-sounding dialogue, and perform tasks typically handled by a human receptionist. These tasks include answering frequently asked questions, routing calls, and scheduling appointments.

How a virtual receptionist differs from staff and generic phone trees

The distinction between a conversational AI-powered virtual receptionist and other solutions is significant. Human staff offer a personal touch but are typically limited to answering calls during business hours, and each person can answer only one call at a time.

IVR (Interactive Voice Response) systems, or generic phone trees, can route calls based on keypad input, but often cause callers frustration because of their rigid and impersonal menus. These systems don’t understand natural language and any language that deviates from their pre-programmed options, which causes callers to hang up or become even more frustrated. 

A virtual receptionist with conversational AI, meanwhile, offers 24/7 availability and consistent service quality, all with the ability to handle a high volume of calls simultaneously. It understands what callers are saying in their own words, not just what buttons they press. Solutions like STELLA AI, a digital assistant that leverages conversational AI, significantly reduce missed calls, minimize hold times, and free up human staff to focus on more complex, value-added tasks. While there's an initial setup investment, it's often more scalable and cost-effective than hiring additional staff, especially for round-the-clock coverage. It provides a far superior customer experience compared to generic phone trees by offering personalized and efficient interactions.

3 ways virtual receptionists boost fixed ops revenue

Virtual receptionist services are game changers for fixed ops revenue opportunities. Here’s how:

Capturing every lead and appointment opportunity

By making sure calls are answered instantly, on the first ring, STELLA AI captures leads that turn into repair orders and sales, and thus revenue. STELLA offers quick appointment scheduling and confirmations, booking appointments in less than 2 minutes or canceling them in less than 30 seconds. In one example, a dealership that implemented STELLA AI on a Friday had booked dozens by Monday morning. 

Upsell and cross-sell service opportunities

STELLA actively enhances service revenue by proactively identifying and capitalizing on relevant upsell and cross-sell opportunities during customer interactions. Leveraging access to customer history and vehicle records, it intelligently delivers timely and contextually appropriate prompts, such as offering a comprehensive maintenance package based on the vehicle's mileage or past service.

Free up staff to close more repair orders

Thanks to virtual receptionists, dealerships can offload routine calls so advisors focus on complex, high-value interactions. This helps improve efficiency and reduce staff burnout and errors. 

KPIs to measure the impact of conversational AI solutions

When implementing an automotive conversational AI solution, OEMs and dealer managers have several key performance indicators (KPIs) to measure the impact it’s having on their operations. These critical metrics include a tangible increase in appointment bookings and the subsequent repair order (RO) count, showcasing improved lead conversion and service throughput. Another vital sign is a significant reduction in missed calls and abandoned calls, directly indicating enhanced customer accessibility and fewer lost revenue opportunities. 

Dealerships can also track an increase in upsell rates and the average revenue per repair order to demonstrate the AI's effectiveness in maximizing the value of each customer interaction. Finally, a noticeable improvement in customer satisfaction (CSI) scores serves as a clear testament to an enhanced overall customer experience.

Why dealerships and OEMs are adopting conversational AI

Dealerships and OEMs are increasingly adopting conversational AI solutions to gain a competitive edge and significantly improve operational efficiency and customer engagement. This strategic shift is underscored by compelling industry data. According to 2023 CDK Global research, 76% of dealers credited AI in positively impacting their sales, inventory management, service, and parts. For dealerships that want to see the benefits of AI in automotive firsthand and translate these positive impacts into their own operations, STELLA is a trusted partner already delivering proven results and tangible improvements within the demanding dealership environment.

By collaborating closely with influential industry leaders, STELLA is engineered from the ground up for the automotive ecosystem. These foundational partnerships ensure that STELLA is continuously improved with the latest technological advancements and real-world dealership insights, maximizing its effectiveness and relevance.

Getting started with virtual receptionists in fixed ops

Embarking on the journey to integrate a virtual receptionist like STELLA into your fixed operations is a significant step toward modernization, enhanced customer satisfaction, and increased efficiency. Learn more about how seamlessly STELLA AI integrates into your fixed operations. Discover firsthand the tangible value and transformative impact this advanced conversational AI solution can bring to your dealership, helping you capture more appointments, reduce missed opportunities, and elevate your customer service.