Trials at dealerships of a new breed of specialist aftersales business manager have shown a “significant” uplift in sales, says The Warranty Group.

The tests have been taking place at four franchise dealerships across the country. The aftersales business managers have been tasked with maximising service plan and warranty sales as well as a range of other essential aftersales KPIs such as amber sales.

They are attached to aftersales operations in a similar way to how traditional business managers have worked alongside new and used car sales departments, usually selling finance, GAP and RTI products.

Ian Simpson, sales and marketing director, said: “In the current economic climate, aftersales is very much the key battleground for dealer profitability with franchise dealers finding themselves facing increasingly stiff opposition from independent and fast fits.

“New car sales are likely to remain in the doldrums for some time, used car sales are unlikely to show much growth in the medium term, so aftersales has become the main avenue through which franchise dealers can maintain and grow profitability.

“To do this, they must find new ways to retain customers over longer periods of time, and products such as service plans and warranties are likely to be key tools in this battle. Aftersales business managers with a specific brief to cover this area will be, we believe, the answer for many franchises and our trials are showing impressive initial results.”

Simpson explained that The Warranty Group was pleased with the results of the aftersales business manager trials and would be extending them through the rest of 2011.

He said: “The increase in sales we have seen at the four trial dealerships have been significant, although we do not want to release the exact figures because the test group is quite small.

“The next step is to extend the trial in order to provide further proof that the aftersales business manager concept works. However, the results achieved so far are already strong enough that we are gathering interest from dealer groups and manufacturers.”

Simpson added that in the early 1980s, The Warranty Group’s predecessor company, Pat Ryan Associates, was responsible for successfully introducing the idea of the modern F&I business manager to franchise dealerships in the UK. This was rolled out largely through dedicated manufacturer programmes as may happen with aftersales business managers.

He said: “With the aftersales business manager concept, we are very much following the same kind of development process, using our expertise to help dealers maximise the opportunities facing them.”