Apps drive into the service lane

Smartphone apps are breaking into the automotive service business. The question is: Whose apps should service departments embrace?

Mark Boyadjis, a senior analyst at IHS Automotive, says smartphone apps for vehicle repair and routine maintenance will become more essential as driver-to-vehicle technology becomes more sophisticated.

"The more our cars are connected, the more app integration becomes an important aspect of the customer experience," said Boyadjis. "Our lives are already very centered around our smartphones."

Automotive service apps are likely the way of the future for dealer service departments, he said.

"Cars are built on code now, and dealers can be looking at connectivity as both an opportunity and a threat."

Apps that allow over-the-air software updates can diminish the frequency of dealership visits, Boyadjis said, while those that tell the customer when the car needs maintenance can result in more predictable, but perhaps less frequent, service visits. On the flip side, apps also have the potential to streamline service and change the way consumers deal with maintenance.

Many automakers and dealership groups have developed their own service apps, but there is also a laundry list of independent startups whose apps offer more on-demand service.

These apps aren't always just for drivers, though.

One Atlanta startup, FIXD, promises that its app, sensor and dealership connection can improve stores' customer retention and service department workflow.

FIXD's app and plug-in sensor keep track of vehicle diagnostics and notify drivers when their vehicles are due for maintenance. FIXD also enables dealership service departments to monitor customers' vehicles via a FIXD Web app.

The dealership's FIXD dashboard enables service departments to communicate with customers via the FIXD app on their smartphones.

"The dealer and the customer are getting all of the same information at the same time" on their respective platforms, FIXD CEO John Gattuso said. "This is a simple way for dealers to stay in touch with their customers and suggest future appointments based on the data they get from the app."

Service departments can use FIXD to chat with customers about their vehicles and set up scheduled maintenance reminders. Gattuso said that if the FIXD app, sensor and dealership connection are implemented widely, the data collected could help service departments anticipate vehicle problems and notify their customers.

"The data from the app can start to show you patterns -- such as a certain part that appears to fail around the same mileage mark -- and dealers can start fixing problems for customers before they even happen," he said.

David Walski is fixed ops manager at Kuhn Volkswagen of Marietta, Ga., part of Kuhn Automotive Group in Tampa, Fla. Walski said FIXD stood out as cutting edge.

"We wanted to have something that would set our service department apart and make us the first name on our customers' lists," he said. "The hope is that FIXD can boost our customer retention rates."

Kuhn Automotive launched the FIXD app in its service departments in early April. It's too soon to tell how the app will change workflow in the stores' service departments but so far, Walski said, feedback from customers has been positive.

For dealerships looking to offer roadside assistance to customers, there's an app for that as well.

Urgent.ly, a Vienna, Va., on-demand roadside assistance service, is behind an app that connects users to providers of towing, tire changes, fuel delivery, jump-starts and other services. The company touts itself as "Uber-like" on its website.

"When something happens to one of our customers out on the road, they tap a few buttons on their phone and we send someone out to them immediately," said Rick Robinson, Urgent.ly senior vice president of product.

Urgent.ly also offers convenience features such as accident detection and alerts, and "family view," which allows users to keep track of friends and family members on the road. Customers pay for each use, rather than a monthly or annual fee as is common for many roadside-assistance programs.

Chris Spanos, Urgent.ly CEO, said the company's primary mission is to reinvent roadside assistance by delivering faster and safer service. But Urgent.ly also is committed to helping automotive service providers grow their businesses via partnerships.

"We work with our partners to either improve upon their existing roadside assistance services or to help them add that dimension to their business by integrating into their native apps or CRM systems," he said.

Spanos said Urgent.ly emphasizes treating its business partners well because the company works primarily with third-party providers.

After the success Urgent.ly has had working with towing companies and independent service garages, the next step is to build similar partnerships with dealerships.

"We have some unique platforms and solutions that can help (dealers) increase revenue by bringing more customers into the service bays," Spanos said. "We have a great solution for them in that we can integrate at their point of sale."

In an email, Robinson wrote, "We are in discussions with a number of dealers, each of whom has expressed a distinct need for our service -- to essentially increase service bay utilization and revenue with a minimum of effort on their part. We expect to have announcements soon."

Urgent.ly is available in all 50 states and the District of Columbia. In a sign of the app's growing potential, Allianz Digital Corporate Ventures, Verizon Ventures and Forte Ventures invested $7 million in Urgent.ly in September.

For Gary Sparks, service director at Cecil Clark Chevrolet in Leesburg, Fla., partnerships with independent providers of apps don't sound all that appealing.

Sparks said integration of a manufacturer-developed app, in this case the OnStar RemoteLink app, has benefits independent apps can't match.

"GM and OnStar are just so embedded," he said. "The app keeps track of everything in your vehicle, and you'll get email alerts and alerts on your MyLink radio if anything goes wrong -- like a low tire or your check-engine light."

Boyadjis is also skeptical of whether dealerships could benefit from teaming up with independent providers of apps.

If a dealer is looking for a way to improve appointment scheduling or communication, a partnership with an independent provider of an app might be worth considering, Boyadjis said, but dealers stand to benefit more from automaker-developed apps.

"There are more reasons to be working with OEMs on connected apps," he said "You want your customers using your brand's connected app to drive both brand loyalty and dealer loyalty."