Custom Retail Solution - Case Study

Retail employee using CKE key cutting program

SUMMARY

Car Keys Express partnered with a Top 10 automotive repair franchise to execute a three-month pilot to offer in-store automotive key replacement. The retailer cut and paired keys using provided equipment.

The store pilot was a success. The test site’s conversion rate was nearly six times higher than the industry average, 67% profit margin, and over $32,000 in annualized gross profit.

RESULTS

Data from the pilot reflects conversion rates nearly six times the industry standard, strong profit margins, and significant gross profit.

17.3

Cars Serviced/Day
Native Store Traffic

1.7

Keys Cut/Day

17.1%

Conversion Rate
Keys to Invoices

$87

Average Sales Price

67%

Gross Profit Margin

$32,400

Annualized Gross Profit
Per Store

CONSIDERATIONS

A digital advertising campaign was used to drive traffic, resulting in ads viewed nearly 100,000 times with a 5% click rate. The store received an average of seven phone calls per day as a result of this campaign.

Staff received one day of preliminary training and two days of hands-on exercise. Technicians were proficient in selling and cutting keys at the conclusion of the three days.

A trained technician was absent 21% of the subject days during the pilot period. To accurately reflect full implementation of the program and resulting metrics, we have eliminated these days from the sample. Fully committed management will result in higher conversions.

CONCLUSIONS

A lower-volume store was selected for the pilot. Traffic of 25+ customers a day is strongly recommended.
A trained technician should always be available to cut keys.
Subsequent to the pilot, training has been further enhanced to include 3D simulations and gamification.

KEYS TO OPTIMIZING SUCCESS

Significant opportunities to optimize results were identified. During a 30-day segment of the pilot period, these additional elements were implemented, increasing the conversion rate to over 20%.

Price Comparison
The program provides high-quality key replacement at 40-70% less than typical dealership pricing.
Pay Commissions
An employee cash commission program motivates staff to sell the service. A rewards system has since been developed, providing a cash incentive for keys sold.
Marketing Toolbox
A toolbox of marketing assets was developed and successfully deployed to promote the program.

The Opportunity is NOW!

Monopolies are rare, and an opportunity to end one doesn’t happen often. The rapid growth of our mobile key replacement business and the pilot’s elevated conversion rates confirm this is a milestone in the history of automotive key replacement. As a result, Car Keys Express has received interest from national retailers for this system and is prepared to move forward with a partner. In our selection process, we are reviewing candidates who meet our criteria. This will ensure our future partner maximizes this opportunity by adopting the successful practices identified in this case study. Be an early mover and make sure your business will be among the first considered for this unique multibillion-dollar opportunity.