New data from the Castrol Professional Car Service and Repair Trend Tracker report shows that franchised workshops have lost even more customers to independent and fast-fit outlets so far in 2011. Echoing similar falls in market share since 2007, franchised workshops captured just 25.4 per cent of servicing work in the first ten months of 2011, a drop of nearly one per cent in 12 months.

Summary Findings

• 2011 marks further decline in franchised workshop servicing retention
• Independent outlets increase share of servicing market to over 45 per cent
• Dealers urged to explore new strategies to retain value-conscious customers

Trend in retention of routine servicing by provider segments

As franchised dealerships have lost even more work, independent garages and fast-fit outlets have made clear gains. The updated results indicate that independents and fast-fits now account for 45.7 per cent of servicing work, up from 42.1 per cent in 2010. A decade ago the independent garage share of servicing was just 30.2 per cent.

“Independent workshops now hold as great a share of the market as franchised dealerships did 15 years ago, and the growing influence of the independents is showing no signs of letting up,” commented Trend Tracker analyst Chris Oakham. “Almost a third of servicing on cars between three and four years old goes to independent providers, and, with an ageing car parc as a result of poor new car sales since 2008, the decline in customer retention among franchised workshops could accelerate.”

Nigel Head, Castrol Professional OEM and Franchised Workshop Marketing Manager – UK & Ireland, said: “While franchised dealers have seen another drop in custom, the decline is far from terminal. It’s down to dealers to reinvigorate their aftersales offer, and provide customers with an incentive to return for servicing work. National fast-fit chains and the independent sector are becoming more professional as they expand and are aggressively targeting franchised dealer customers – it’s time for dealers to fight back if they are to hold on to increasingly value-conscious customers.

“There is little scope for service pricing reductions, but that isn’t to say that dealerships can’t adopt other proactive strategies,” added Head. “Dealers could consider offering courtesy transport, fixed price servicing for older cars, or even using more transparent invoicing to increase customer trust. These are all ways in which franchised dealers can fight to retain customers and remind them of the service the workshop can offer over and above the competition.”

ENDS

Notes for editors

The new Castrol Professional Car Service and Repair Trend Tracker 2011 report combines in one volume an update of data from three long-established Trend Tracker reports covering the UK market for retail mechanical car servicing, maintenance and repairs. The new report is based on a survey of 15,725 motorists carried out by Lake Research over the last 16 months – as well as extensive B2B research. These data add to Trend Tracker consumer survey records going back to the early 90s.

Details of the report can be downloaded from www.trendtracker.co.uk.

For further comment, please phone Trend Tracker director and lead aftermarket analyst Chris Oakham on 0870 421 4350 or email coakham@trendtracker.co.uk.

About Castrol

Castrol (www.castrol.com) is part of BP, one of the world’s largest energy companies. Through strategic partnerships with many of the world’s leading car manufacturers, Castrol is able to maintain its position as the market and technical leader for automotive lubricants for trade and retail customers.

Castrol has a specially tailored offer for franchised workshops combining three professional lubricant brands with a range of business support programmes for improved business performance, training, re-engineering processes, workshop equipment planning, delivering tele-business solutions, and creating and managing effective sales and marketing programmes.

Named Castrol Professional, the offer has been specifically designed to help maximise workshop profit margins across three key sources of value: lubricant sales, increased parts and labour sales, and customer satisfaction. It is supported through the largest field management team in the sector.

The Castrol Professional product range comprises a line-up of lubricants exclusive to franchised workshops:

*Castrol EDGE Professional: a range of premium fully synthetic lubricants, each uniquely co-engineered with – and exclusively and globally recommended by – BMW, Jaguar, Land Rover, Volkswagen, Seat, Skoda, Volvo, MINI and Audi, which contains Castrol’s proprietary Fluid Strength Technology to exceed the specific requirements of their modern engines.

*Castrol Magnatec Professional: the premium semi-synthetic lubricant which features unique ‘intelligent molecules’ that provide extra protection where it’s needed most in the engine, an globally recommended by Ford.

*Castrol GTX Professional: superior engine protection.

For further information about Castrol Professional visit www.castrolprofessional.co.uk.

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