Targeting tyre opportunity
to help stabilize the impacts
of a shifting industry on
retailer service departments

March 4th, 2024

In the automotive industry’s ever-evolving landscape, the rise of electric vehicles (EVs) is a leading trend. As the adoption of EVs gains momentum, their distinctive characteristics present both challenges and opportunities for service networks. With fewer parts and lower maintenance requirements, the influx of EVs for customer pay service is on the decline. Despite comparable average revenue per repair order to Internal Combustion Engine (ICE) models (with the exception of warranty work), EVs are projected to generate 40-60% less service revenue for retailers and Original Equipment Manufacturers (OEMs).

In this evolving landscape, service networks must proactively adapt to the changing dynamics to maintain viability and offset potential revenue losses.

One promising avenue for generating new aftersales revenue lies in the tyre market. In 2023, a staggering 2,388 million tyre units were globally produced, resulting in a market size of $134.62 billion. The tyre market, which surged from $112.16 billion in 2019 to $126.44 billion in 2022, is projected to reach $176 billion by 2027.1 This anticipated growth is attributed, in part, to the foreseen increase in turnover and/or cost of tyres associated with Electric Vehicles (EVs), adding a dynamic dimension to the market’s expansion. Service networks and franchised retailers can capitalize on this opportunity by embracing tyre maintenance and offering add-on services, such as storage and winter tyre swaps, as revenue generators. Despite the market’s potential, retailers currently hold a market share of replacement tyre sales that remains below 10%, signaling ample opportunity for retailer growth.2

Moreover, proactively embracing add-on services and establishing expertise in this domain will be crucial for the success of aftersales departments in this dynamic automotive landscape.

The challenge:

In a tyre market that continues to expand, showing remarkable resilience and consistent growth even amid the global pandemic, the call for innovative solutions to seize emerging opportunities becomes increasingly crucial. The aggressive pursuit of tyre business is set to become paramount, particularly as specialized tyre shops gain a convenient edge by not relying on traditional retailers or service centers for sales and installation.

Service networks who can generate highly targeted tyre marketing and service campaigns position themselves strategically, enhancing their potential for both maintaining and expanding service customer retention and revenue in comparison to their competitors.

In the face of this promising opportunity, manufacturers and retailers find themselves grappling with the following questions:

  • How can I understand the tyre opportunity available in my area?
  • What type of tyre opportunity should I target?
  • What kind of campaign should I market?
  • How do I know I’m targeting the right potential customers to maximize my ROI on campaign marketing spend?

The Urban Science solution: ServiceView™

ServiceView™ by Urban Science emerges as a true game-changer in the automotive industry. Unparalleled in speed, accuracy, and comprehensiveness, ServiceView is your key to unlocking and maximizing service efficiency and retention opportunities, as well as tyre-related opportunities on a global scale.

By harnessing vital service department data, ServiceView delves deep into detailed analytics, providing actionable insights that empower service retailers. This innovative tool enables the creation of highly- targeted tyre marketing campaigns, bringing opportunities into service lanes while simultaneously elevating customer retention to new heights.

Amidst a tyre market poised for substantial growth, ServiceView emerges as a strategic enabler, equipping retailers with essential tools and insights to successfully navigate opportunities. Through the seamless integration of analytics, predictive modelling, and Vehicle Health Check capabilities, ServiceView goes beyond data, transforming it into actionable insights that empower retailers to stay ahead in the dynamic tyre market landscape.

Key ServiceView features:

ServiceView serves as the catalyst for unlocking tyre opportunities by strategically tapping into three pivotal areas that become the foundation for crafting highly targeted and exceptionally effective marketing campaigns:

Advanced Repair Order Spending Analytics:

  • Quantify local tyre opportunities per single workshop and/or dealer
  • Drill-down into granular service data to segment by tyre manufacturer, type, and installation type -whether it’s customer pay or maintenance package work – to identify and balance the highest tyre revenue and loyalty opportunities

Predictive Modelling:

  • Leverage historical data to establish normal behaviour, such as average kilometres before tire replacement, and correlation analysis against other parts
  • Seamless integration with available vehicle connectivity data provides an extra leg up on the competition by focusing on key metrics such as kilometres travelled while considering potential alert messages like tyre pressure resets

Marketing Module:

  • Generate strategic marketing lists to engage the highest potential customers and concretely transform identified opportunities into tyre sales

This holistic approach ensures a seamless and data-driven strategy to capturing market potential.

Business process/implementation:

We know collecting data from an entire network can be a daunting challenge. So, we’ve simplified this process by providing an end-to-end system that is tailored to individual manufacturer needs. Our approach seamlessly integrates into existing DMS landscapes and incorporates required KPIs.

  • With our streamlined approach, systems can be set up as soon as 90 days* after data is delivered to us.
*depends on data access

To learn more about our multi-country network data extraction capabilities, click here.

Why Urban Science?

At Urban Science, our global success with ServiceView, coupled with our local industry expertise, provides a genuine advantage. We continually refine our system based on insights gained, ensuring added value for our users. What sets us apart is our ability to offer unparalleled data-driven benchmarks for customer retention, parts potential, capacity planning, and recall compliance – all within a single, user-friendly solution. In the ever-evolving automotive landscape, ServiceView by Urban Science is not just a tool; it’s a comprehensive solution tailored for success.

Our credentials:

  • With more than 20 global implementations, we demonstrate the proficiency to analyze and optimize markets of any scale.
  • In 2022 alone, our experts processed over 130 million repair orders – averaging 10.8 million repair orders each month.

Data Quality Assurance:

  • We eliminate all uncertainty by ensuring the best data inputs managed through a combined team of industry experts.
  • We perform hundreds of audits and validations, to identify and resolve all potential issues to deliver reliable analyses.

“ServiceView has provided the valuable information needed to pinpoint service opportunity and engage dealerships to improve service retention efforts.”

Service Program Manager, Major Japanese Manufacturer

To find out more about how our ServiceView solution can help you, contact us.

Francesco Angio
Account Executive and Aftersales Expert

1. Global Tire Statistics: Comprehensive Analysis Of Current Global Tire Sales And Future Trends,

2. Source: Modern Tire Dealer January, 2024 | Volume 105, No. 1 |

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