As marketers, we’re mostly concerned with reaching customers before the sale – right? Well, when it comes to automotive aftermarket sales and services, it’s what happens after the sale that matters. Worldwide, the potential for aftermarket revenue is a tide that’s rising higher and higher every day. Here’s what you need to know to make sure your automotive clients are in a good position to catch the wave.
To be clear, when we refer to automotive aftermarket sales and services, we’re talking about oil changes, brakes, tires, replacement parts, accessories, repairs, service visits and anything else that a consumer might need to purchase after they’ve bought a car. You may have heard that the service department is the main profit center at a dealership, and it’s true! The ROI for dollars spent on service is typically higher than the ROI for car sales.
Considering all of the many and varied items and services that are included, it’s no surprise that the size of the automotive aftermarket is huge! According to a recent study, the aftermarket parts industry is looking at $723 billion in sales worldwide by 2021. The U.S. alone expects to see $296 billion in sales.1
One of the reasons for these large numbers is that cars are lasting longer, which means they’re being driven longer, and older cars need more maintenance and repairs than newer cars. According to new research from IHS Markit, the average age of light vehicles that are currently in operation and on the road in the U.S. is 11.8 years. That’s up from 11.7 years in 2018. In 2002, less than 35 million vehicles on the road were 16 years or older. That number is expected to reach 84 million by 2023.2
This trend has been bolstered in part by the current coronavirus pandemic and the economic uncertainty that has resulted from it. Fears of actually going into a dealership as well as budget concerns from lost wages are causing consumers to postpone car purchases. If a car purchase can’t be postponed, car buyers are opting for used or certified pre-owned vehicles to save money.
Both of these consumer behaviors are causing the number of older cars on the road to increase. As the number of older cars increases, so too does the need for parts, repairs and other aftermarket items. Because no one knows when the pandemic is going to end, we could see this trend continue for years to come.
If you’re looking to tap into this rising aftermarket revenue, you’re in luck. Infocore can help! Our data partners create databases of car owners that are seeking aftermarket sales and services by collecting data points on car owners from 3rd party opt-in paths. This data is then appended and verified from credit agencies, automotive shopping sites, automotive aftermarket service records and online surveys.
So how many used car owners are we talking about? A lot. The largest number of records in any one of our data partners’ files is 156 million. I will repeat. That’s 156 million car owners who are actively in the market or “intenders” for aftermarket parts and services.
Lucky for us (and for you), our data partners can capture owners of vehicles that have been purchased privately. These consumers haven’t bought from a dealership so they don’t exist in OEM files. Of these customers, we are able to identify the make, model and year of the car, as well as their geographic location, age, gender, household income, number of children, marital status and so much more!
If you’re an automotive marketer and you’re leaving aftermarket dollars on the table, call us. We can provide you with high-quality, CAN SPAM compliant lists and help you build a successful direct marketing campaign to reach those potential consumers. It is not only our business, but it’s also our pleasure. As they say, a rising tide lifts all boats (or cars), so contact us today!