Mercedes Benz of Hoffman Estates increases revenue with Lyft

INDUSTRY | AUTOMOTIVE

Mercedes Benz of Hoffman Estates sells and services luxury cars in the greater Chicago area. Dedicated to its customer-first mission, 60+ service team members repair over 15,000 cars annually. Mercedes-Benz has twice recognized the dealership for its excellent service, awarding it the prestigious Best of the Best award in 2011 and 2012.

The dealership is owned by Zeigler Automotive Group, a company ranked among the top 1% of automotive dealers in the US that is renowned for its commitment to both customer service and employee satisfaction.

The dealership was looking to expand its transportation options in a way that would better serve its mission. “We wanted to do something that was very customer-centric, that would give people choices on how their service experience would unfold,” shares Sullivan.

Sullivan’s team was already using CDK’s Dealer Management System (DMS) to book service appointments and manage repair orders, however, transportation to and from the dealership was arranged manually. Sullivan began looking into Hailer, a CDK software integration that would allow his service team to book Lyft rides within his existing system.

Mercedes Benz of Hoffman Estates began using Hailer and Lyft in 2020. Before Hailer, service advisors arranged transportation using email groups and calendar invites. Now, in just a few clicks service advisors can send a Lyft ride to customers after creating a repair order. Or, they can send a customer Lyft credit, which lets them book a ride when it’s convenient.

“We're saving 2.5 hours per day in software interaction alone,” shares Sullivan. “This translates into the ability to spend more time with customers and to deliver a better experience.”

By eliminating the shuttle van and reducing demand for loaner cars with Lyft, Sullivan’s team now services 3-4 more cars a day, increasing daily revenue by $2,100. Average repair orders are up from $850 to over $1,000.

“COVID-19 has really brought a lot of different dynamics this year. One of the obvious ones is that people don't necessarily want to leave their house.” Demand for pickup and dropoff services is up, explains Sullivan, “Lyft massively helps with that. It brings peace of mind.”

Historically, pickup and drop-off services would take two employees: one to drive the loaner vehicle, and one to drive the customer’s car back to the dealership. With the help of Lyft, now one porter can manage the whole job. “Right there, it’s a huge win. The customer satisfaction is significant and the timing is better,” explains Sullivan.

"I’ve got nothing but praise for Lyft. The execution is way beyond our expectations. Everybody's sold on it, including service advisors whose paychecks depend on customer satisfaction,” shares Sullivan.

Next, Mercedes Benz of Hoffman Estates is excited to refine internal processes and explore Lyft’s Parts Delivery Program. “With Lyft, we can get five to six parts in an hour as opposed to two to three,” Sullivan explains.