MPIs without Videos & Photos Causing Dealers Major Revenue Losses

Dealerships that haven’t implemented video and photo Multi-Point Inspections (MPIs) are missing out on a critical opportunity to increase revenue, enhance customer trust, and improve service department performance.

The difference between dealerships using media-rich MPIs and those relying on traditional methods is becoming increasingly stark, and the financial consequences are clear. Without adopting this technology, dealers are losing immediate service revenue and facing deeper, long-term profitability challenges due to declining customer confidence and disengaged employees.

The Real Cost of Declined Service Approvals

Customers today expect transparency when it comes to vehicle repairs. Without visual proof through video or photo MPIs, they are more likely to hesitate or outright decline recommended services. This hesitation leads to two primary revenue losses:

1. Missed Revenue from Declined Services: Each service recommendation that goes unapproved is a direct hit to the dealership’s earnings. Without media-rich MPIs to demonstrate the necessity of repairs, customers are left relying solely on verbal explanations, which may not always translate into trust.
2. Escalating Costs of Delayed Repairs: What starts as a minor, declined repair can turn into a larger and more expensive issue for the customer down the road. When this happens, the dealership misses out on the opportunity to fix the problem early, when it was less expensive and easier to address.

Dealerships that have adopted video and photo MPIs have seen up to a 20-30% increase in service approval rates, driven by the transparency and trust these tools provide. Meanwhile, dealers without this technology are allowing substantial revenue to slip through the cracks.

Employee Engagement Directly Affects Revenue

It’s not just customer service that suffers when a dealership lacks digital MPIs—employee engagement and productivity are also impacted. According to the JMA Group, poor employee engagement leads to $960 billion to $1.2 trillion in lost productivity across U.S. businesses each year [1]. In service departments, disengaged employees are less motivated to provide high-quality customer experiences, contributing to slower service and fewer approvals.

Furthermore, Cox Automotive’s 2018 Service Industry Study found that fixed ops departments lose an estimated $266 billion annually due to poor team performance [2]. This staggering figure highlights the need for better tools, training, and processes. By equipping service advisors and technicians with the right technology, dealerships can improve engagement, performance, and profitability.

The Power of Proper Tools and Training

Dealerships that provide their service teams with the right tools—such as video and photo MPIs—set the foundation for higher employee engagement and customer satisfaction. As employee engagement rises, productivity increases, directly impacting the service department’s overall performance. This creates a positive feedback loop:

• Engaged Employees: When equipped with tools that make their jobs easier and more effective, employees are more engaged and efficient. This translates to faster service approvals, better customer interactions, and higher satisfaction for both employees and customers.
• Satisfied Customers: Customers who can see videos and photos of their vehicle’s condition are more likely to trust the recommendations from the service team, increasing the likelihood of approval. This trust also promotes long-term loyalty and repeat business.
• Increased Revenue: By improving service approval rates and fostering a more engaged workforce, dealerships can capture more revenue from every repair order, while reducing the risk of losing future business.

Don’t Let Your Dealership Fall Behind

Dealers that fail to adopt video and photo MPIs are at a significant disadvantage in today’s service-driven marketplace. These tools don’t just boost service approvals; they also empower employees, build customer trust, and streamline the entire service process. The bottom line? Without video and photo MPIs, dealerships are leaving substantial revenue on the table.

Take the Next Step
Discover how UpdatePromise’s digital MPI solutions can transform your service department, improving service approval rates, enhancing team productivity, and driving long-term profitability. Schedule a demo today to see the power of media-rich MPIs in action.

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Sources:
[1] JMA Group: The Fixed Operations Growth Plan
[2] Auto Dealer Today: Study Tech Helps Dealers Build Service Loyalty