Abe Lincoln once famously said, “give me six hours to chop down a tree and I will spend the first foursharpening the axe.”

The lesson there, of course, is that preparation and remaining ever-sharp is important to success — especially long-term success.

As the captain of the ship overseeing all the departments in the dealership, general managers know that in order to sustain a profitable business, continuous improvement is a must.

From simple things like driving the lot and signing checks to the more mundane tasks such as reviewing receivables, payables, warranty funding, rebates, and manufacturer programs — there are several functions GMs must do weekly, if not daily.

But in order to run a successful and efficient dealership that regularly delights customers and increases market share, GMs must stay ahead of the ever-changing industry trends. Here, we’ll share a few strategic insights GMs can use to improve their skills and drive their business forward.

Listen to Your Customers, Then Exceed Their Expectations

Regularly check your customer reviews on Google, Yelp, Edmunds, and DealerRater. It’s imperative you stay in the know on what they liked about their experience, what they didn’t like, and if they had expectations you couldn’t meet.

Try to acknowledge all reviews and personally respond to the negative ones with an effort to remedy the issue — get on the phone if necessary. Before you reach out, talk to any of your managers or employees who may have been mentioned in the reviews (good or bad) and understand their perspective.

With both the vehicle purchase and service experience, customers are increasingly demanding more convenience that requires innovation. Whether it’s a complete online buying option, outstanding amenities and incentives, more digital interactions, or pickup and delivery, surprising and delighting your customers should always be your top priority.

Hire (and Retain) Quality Employees

You could argue that no business benefits more from having a pleasant and knowledgeable staff than auto dealerships. Customers are making big purchases, and odds are they’re already coming in with some preconceived (often negative) notions.

From lot attendants and clerks to service advisors and salespeople, every person in your dealership is responsible for creating an exceptional customer experience. Make sure you take the time to bring in people who have not only the right skillset and experience — but the right personality and attitude as well.

According to Automotive News, the best ways to attract and keep the right employees at your dealership are to have:

- A strong culture
- An up-to-date job structure
- Effective leadership

Once you’ve assembled your “dream team,” do your best to keep them engaged, inspired, and motivated. Former GM and recognized sales and marketing trainer for auto professionals, Jim Ziegler, recommends regular meetings twice a week or more to rally the troops.

Ziegler recommends a variable meeting with department heads, including new-vehicle and pre-owned sales, fleet sales, F&I director, business development center (BDC) manager, and accounting chief to discuss:

- Inventory aging
- Trade-ins, including recon expense, time in service and wholesale profits and losses
- Who is driving our loaners, and why
- F&I product penetrations, per-copy average, and lease penetration
- Number of customers financed at 72- and 84-month terms
- Contracts in transit, funding delays, and deals delivered but not approved

As well as a fixed ops meeting with the service manager, parts manager, body shop manager, and office manager or controller to discuss:

- Open parts counter tickets and repair orders, especially those older than 30 days
- Average hours per RO
- Average dollars per customer-pay RO
- In-and-out times for quick lube
- Inventory of spare parts and fluids techs are storing at their workstations for side jobs

This regular and open communication will show you’re invested in your team and allow you to better lead from a position of knowledge and trust while fostering a sense of camaraderie and empowerment among your employees.

Regular Networking, Events, and Conferences

Referring back to our opening quote, dealers who fail to develop and grow professionally will have a difficult time staying sharp. Attending at least one annual conference (be it virtual or in-person) is a surefire way to reconnect with your peers, attend interactive workshops, hear from some visionary keynote speakers, obtain professional certification, discover new technologies, get actionable takeaways and best practices to immediately implement at your dealership, and more. Getting out of the office for a few days for an industry event can also be a great way to recharge the batteries.

A few of the top automotive industry conferences that will help you keep your dealership competitive include:

- Driving Sales Executive Summit 
- The National Automobile Dealers Association (NADA) Convention
- The National Independent Automobile Dealers Association (NIAD) Convention
- Digital Dealer

Beyond events like these, many GMs find it beneficial to join membership organizations like NADA 20 Group to “learn from legends” and regularly connect with fellow professionals to benchmark, validate, and improve.

Actively Observe and Implement Industry Trends

Good GMs try to stay active on social media and through all types of online content sources. Follow relevant organizations and thought leaders on Twitter, subscribe to newsletters, Google alerts, and keep your RSS feed filled with industry and marketing news. The more informed you are when it comes to changes and developments in the automotive industry, the more proactive you can be in taking advantage of opportunities and mitigating potential pitfalls.

Speaking of Google, social media, and other online platforms, the onus on GMs to understand effective marketing (especially digital advertising) can make or break their dealership’s success. GMs should meet with marketing and BDC managers on a regular basis so they have total visibility and full understanding of how marketing is performing within various digital channels:

- Ads on social media
- Google AdWords|
- Third-party lead providers

As the digital landscape is always shifting, taking digital marketing courses and earning certifications can greatly increase your ability to understand and work with your marketing staff and manage vendor relationships. 

Remain the Go-To Provider for Maintenance, Tires, and Repairs

If there’s one thing dealership GMs know for sure, it’s just how crucial service department customers are to their bottom-line success. If GMs can regularly get car buyers to come in for their first service and keep coming back until they’re ready for their next vehicle, they are far more likely to continually improve their overall performance.

Programs like DriveSure help GMs ensure vehicle owners come back for service by providing a suite of benefits that renew only when customers return for their scheduled maintenance.

For more tips on sharpening your skills, maximizing profits for your dealership, and becoming the go-to provider for maintenance and repairs, schedule a free consultation with a DriveSure expert today.

The benefits of dealer-provided maintenance are undeniable. We know this, so why then can it often feel like a herculean task to get customers to return to our dealership after their vehicle purchase?

If you could just get them back to the service lane one time — for their initial service appointment — you could prove your superiority, establish a service relationship, and make them a loyal lifetime customer.

Based on our experience, and the strategies proven effective by many fixed ops departments, here are a few tips to help you get customers back for their first service appointment.

Make it Part of the Delivery Process

A thoughtful and coordinated sales-to-service handoff is key, and can really improve your odds of getting customers to return for not just their first service appointment — but all subsequent maintenance and service needs. After the deal is inked, take advantage of the inevitable downtime while the vehicle is being prepped, detailed, etc., and give your customer a warm service department welcome.

Give them a service department tour. The last thing customers want is an uncoordinated and disjointed service and sales relationship. Your variable and fixed operations are a connected experience, and a great way to help ensure customers make the connection is to show them how all parts of your dealership coalesce into a single entity. A simple tour of the service department to see the techs in action will put them at ease and set the stage for personalized, quality care moving forward.

Show them how nice and clean it is. Introduce them to the service manager. Highlight the things that differentiate your service department from the competition. By creating a clear link between where they bought their vehicle and where they will service their vehicle, customers will be far more likely to see your service department as the obvious, if not only, choice to return for their first appointment.

Set their first service appointment. We know what you’re thinking. “No one knows their schedule a week from now, let alone in 6 months.” While true, it certainly doesn’t hurt to implement a best practice of helping your customer schedule their first follow-up appointment before they roll off the lot. It may be your last chance for a face-to-face before their first scheduled maintenance is due, and it’s simply more effective getting an affirmative response in person rather than counting on less personal follow-ups and reminders.

Don’t be pushy, and make it clear that it’s just a tentative placeholder depending on their driving habits. It’s rare that they won’t put something on the books before they leave if asked, and is an efficient way to make the customer more comfortable returning for service, increasing your chances of earning their business moving forward.

Deploy a Multi-Channel Marketing Campaign

Even if you get commitment on the first service visit as part of the purchase delivery process, every fixed ops director knows an appointment is a no show until they’re back in the service bay. So follow-up marketing and service reminders are critical in securing that first visit.

When done correctly, an omni-channel marketing campaign will keep your service department top of mind with new customers, and there are several tactical examples to prove it.

Through multiple touchpoints, remind your customers that they are due for service, and stress the benefits and value they’ll receive when they choose you over a local mechanic or mass merchandiser.

Start with a simple direct mail postcard that might include coupons applicable to their first service requirements. Then keep your service department atop their inbox with a series of emails (don’t overdo it, just a couple leading up to their first appointment). You may even consider mobile alerts and text messages if you have the capabilities. A recent DriveSure study showed that consumers are more than open to receiving texts from their dealership.

Use video to underscore your value

As part of your email marketing, consider including short videos from your service manager. This adds a personal touch, and can also stress all the points that make your service department better and more knowledgeable. Many consumers don’t know the difference between conventional, synthetic, and high-mileage oil changes — educate them with video marketing to set yourself apart. You might even consider including a personalized manager’s offer or promo code to incentivize the first visit.

Offer Incentives

Speaking of incentives, they can be another enticing way to book that first appointment. It can be costly to your bottom line to offer discounts for repeat service, and incentives are an easy way for your service department to add more value to the customer without relying on undercutting discounts.

For example, dealerships that offer DriveSure (our product) with new and used car sales have seen significant increases in the number of customers who return for that first service visit. DriveSure gives vehicle owners a suite of benefits at no extra cost to them, including dealer-loyal roadside assistance, road-hazard tire protection, and more, that are valid for a set period such as 180 days. To renew those benefits when they expire (or before), customers must return to the dealership for their scheduled maintenance – increasing the chances of their vehicle running smoothly and giving them peace of mind in case it doesn’t.

Other incentives you could offer include things like:

- VIP card they can use to get a 10% discount on accessories
- Loyalty programs
- Pickup and delivery service
- Free car wash with every oil change

To learn more about how your dealer service department can start off as (and remain) the go-to provider for maintenance and repairs, schedule a free consultation with a DriveSure expert today.

It’s long been said that acquiring a new customer costs 5 times as much as retaining a current customer.

So then why do so many companies spend the majority of their time, energy, and budgets looking for new business, when they could be more focused on preserving the customers they already have? According to a recent study by Invesp:

• • 89% of businesses see customer experience as a key factor in driving customer loyalty and retention.
   
• • 76% of companies see Customer Lifetime Value as an important concept for their organization.
• 
  • The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
   
• • Increasing customer retention rates by 5% increases profits by 25-95%.

Those numbers are pretty telling, and certainly applicable for dealer service departments — whose revenue goals hinge on engaging, delighting, and retaining their vehicle owners.

To both maximize fixed ops profits and generate new car sales, getting customers to return to your dealership for service is critical to your success. Here are 10 of the most compelling automotive customer loyalty strategies fixed ops and service directors use to increase retention.

1. Provide quality work and great customer service.

Let’s start with the most obvious. Fixed ops departments pride themselves on the quality of their work and service, and despite threats from low-cost competitors, superior work is what really builds trust and keep loyal customers coming back. As for the customer experience, there are many services and amenities your customers expect these days. Make sure you’re meeting customer expectations every time they visit you for service — especially because even the most loyal of your customers say they’d consider going elsewhere after just one bad experience (according to DriveSure’s recent Dealership Service Retention Report).

2. Have a memorable sales to service handoff.

Nothing fosters customer loyalty quite like making them feel comfortable. A quick and easy way to do that? A simple introduction by your sales rep to the service team after a vehicle purchase. You’ll put them at ease and set the stage for quality care and personalized service from the outset.

3. Get involved with your community.

Car dealerships are community organizations…so get out in the community and make your presence known! Partnering with charities and local groups to help them through car wash fundraisers and pairing your referral program with local organizations are just a couple of ways to stay top-of-mind. By getting your name out there and providing value, you’re more likely to become the go-to place for the community for everything from oil changes to tire rotations.

4. Rewards and contests through social media.

We’ve seen some dealer service departments find success by engaging their customers through social media. If you have a Facebook or Twitter account, put out a post encouraging your followers to “guess the score of the big game,” and offer a $50 reward card to whoever wins (first to comment with correct score, or first that comes closest). Getting creative on social media is a great way to increase your awareness and stay top of mind with customers — you can even consider reloading the gift card to incentive referrals in the next 24 hours.

5. Take extra care of unsatisfied customers.

By simply keeping a close eye and staying on top of your customer reviews, you can show your current customers you’re always listening to them, actively trying to meet their needs with better service. When you see a negative review, reach out directly to the customer to discuss how you can fix their issue. Opening up a cordial dialogue, following up with a personal thank you card (and even small gift card for a cup of coffee) can go a really long way.

6. Customer appreciation initiatives.

Provide unique offers, events, and rewards to your more frequent customers. By offering discounts in your online dealer store, exclusive service specials, free vehicle detailing, or even special gift packages, it shows you’re willing to go above and beyond to “surprise and delight.”

7. Send birthday and holiday cards.

A little personalization can go a long way. In fact, 88% of marketers say personalized messaging can improve results. Sometimes it’s the little things that play a big part in retaining customers — like sending birthday cards and holiday greetings via email (50% of service department customers prefer email communication between visits, according to DriveSure’s Dealership Service Retention Report).

8. Partner with dealership benefits programs.

Some programs make it easy for new car dealerships to provide a unique suite of benefits with each routine maintenance visit. Not only do these benefits encourage customers to return the next time they need scheduled maintenance, they also establish the dealership’s service department as the go-to place for tires and unplanned repairs.

9. Offer your own maintenance packages.

By giving your car-buying customers the benefit of 12-months of complimentary maintenance, you immediately plant the seed of long-term loyalty. Then it’s up to you to nurture and grow the relationship with exceptional customer service and high-quality work (see #1) Don’t give your customers the option of immediately going elsewhere for service…and don’t force them to use you through fear of voiding their warranty. Getting off on the right foot is a great first step in customer retention, pardon the pun.

10. Loyalty incentives.

Pairing dealer loyalty incentives with your complimentary maintenance package can further foster long-term retention. Allowing customers to earn points for every dollar they spend on service will keep them intrigued and engaged to continue their service with you after their free package expires. With loyalty account activation, customers can begin accumulating points toward exclusive service discounts and even future vehicle purchases.

Create a Service Department Your Customers Can’t Resist

Interested in learning more about how you can make your dealership the only one your customers depend on for maintenance, tires, and repairs? We can help! Schedule a free 30-minute consultation today and we’ll show you exactly how DriveSure can improve customer loyalty for your dealership – and what that will mean for your bottom line.

Despite dealership service departments’ best efforts to provide a great customer experience, many still find bringing their vehicle in for maintenance and repair to be a bit of a hassle. While we’ve come a long way as an industry — adapting and adjusting our fixed ops for “the new normal” — are we doing enough to make things as convenient as possible for our customers?

Today, as the digital age becomes more pervasive in all aspects of life, it’s imperative that dealer service departments keep up with the evolving trends customers not only prefer, but expect. Technology is certainly one of those customer demands. It’s not only valuable for improving the vehicle shopping process and generating sales, it’s becoming increasingly essential for dealer service departments as well.

So…

How digital is your dealership service department?

We get it. The thought of investing in tech and digital solutions may seem expensive and hard to implement at first, but the long game payoff is well worth it. And you don’t have to go all in from the start, either.

Here are three areas where your service department can make the digital transformation that will have the biggest impact in saving time, streamlining efficiencies, and keeping customers happy.

1. Offer Remote and Contactless Payment Services 

Do you offer your customers the ability to pay their repair order online or via text?

Most of the dealerships we work with tell us they get several calls a day with customers asking if they can pay online.

It’s a customer pain point that has a clear solution — a solution that can save all parties significant amount of time, and vastly improve the customer experience.

From ordering a pizza to taking the dog to the vet to getting your haircut, contactless payment is the norm these days, and dealer service departments should be no exception. In fact, a recent study by Visa revealed that more than two-thirds of consumers would switch to businesses that offer contactless payment.

Paying for repair orders online or through text without having to wait in line or interact with a cashier both increases customer satisfaction (your CSI scores will prove it!) and boosts dealer revenue and profitability.

Bottom line: many fixed ops departments are using integrated payment solutions to drive more revenue and retention — by simply filling a need and providing customers what they want.

2. Automate Your Check-In Process

Some Ford dealerships recently launched a cutting-edge digital kiosk pilot program that aims to expedite the service department check-in process. It’s providing a glimpse of where service departments may be heading in the not-so-distant future.

You may not be to this level of sophistication just yet (or even in the next several years), but other technologies exist for relatively easy and cost-effective digital upgrades to your check-in process.

Simply offering customers the ability for a quick iPad “check-in” when they pull into your bays saves both the techs and the customers an immense amount of time.

3. Get More Digital with Your Marketing and Communications

In our first point we mentioned how often service departments receive calls asking about online payment. You know what customer calls are even more frequent?

“What’s the status of my vehicle?”

“Is my truck done yet?”

”When can I swing by and pick up my car?”

Chances are they don’t like having to make those calls any more than you like answering them.

By going digital with your communication, you can significantly reduce that back and forth.

As customers get used to more digital interaction, it makes it even more important to keep the lines of digital communication open both when they’re onsite and when they leave the dealership. Communicating via the same channels they interact with friends and family adds a more personal touch that has become not only acceptable from your customers, but expected.

The results of DriveSure’s Dealership Retention Report were loud and clear regarding customers’ preferred method of communication, with 32 percent saying they preferred text communications between service visits, and 60 percent wanting text updates during visits.

And with 54 percent of customers indicating that they’re “likely or very likely” to download a mobile app on their phone for service reminders, this is another big opportunity for service departments.

Integrated communication and payment solutions
It’s the types of technologies and conveniences mentioned above that put an emphasis on value, convenience, and trust, meeting a strong demand and delivering an exceptional customer experience. If you’re interested in learning more about a few of the platforms that can help your fixed ops department go digital, here are some options to kickstart your research:

• Xtime

• Text2Drive

• Zipwhip

• Square

Many dealer service department customers come in for the required low-mileage maintenance. They want fast and reliable service. They want to get in and get out. That’s our reality. And in order to enhance that reality for our customers, getting more digital with their touchpoints is essential.

For a deeper dive into the types of amenities and conveniences (digital or otherwise) your service department customers are looking for, download DriveSure’s full Dealership Service Retention Report here.

Most new car dealerships know that getting customers to return for service is critical to success — both for maximizing fixed ops profits, and for generating new car sales through repeat buyers. After all, the service and parts department accounts for 49.6% of the dealership's gross profits, according to NADA.

Knowing the importance and strong connection of the service department to the dealer’s bottom line, DriveSure recently conducted a survey to better understand why vehicle owners return for service—and why they don’t. Breaking the responses down by age uncovered some interesting similarities and differences across generations.

Viewing the Data Through an Age-Segmented Lens

In addition to several important takeaways for service department managers and fixed ops directors, we uncovered some valuable insights on how the age of your customers affects their outlook and experience.

Let’s break down a few of the key findings, then go a step further by viewing the data through a generational lens.

What brings customers into dealerships…and what drives them away?

When asked which factors are most important in getting them to return for service, quality of work, price, and quality of customer service were the top three choices—with older customer segments less likely to care about price and more likely to value the quality of work and service.

Because most dealership service departments already pride themselves on providing superior quality of work and customer service, this is reassuring for all of your customer age groups. Keep in mind though, that regardless of age or loyalty, many will look elsewhere for service after just one bad experience.

And while knowing that price is important to your younger segments underscores the threat your low-cost competitors pose, there are ways to mitigate this. Like ensuring your amenities meet the diverse needs of your customer base…

What service department amenities do your customers value most?

Customers 34 and younger value online appointment booking with vehicle pickup and delivery cracking their top three.

For those aged 35 to 54, vehicle pickup and delivery remained important, but shuttle service dropped significantly, highly valued by just 22 percent of people in that age group.

Understandably, shuttles jump back up to the third most valued amenity for those 55 and over.

In a bit of a surprising twist, respondents 55 and above have a strong preference for online appointment booking (41%) and even free Wi-Fi in the waiting area (26%).

Bottom line: vehicle pickup and delivery is an essential amenity—especially after COVID-19—and no matter the age of your customer, technology-related amenities are an attractive incentive that ranks high on the list of what your customers want.

What are the preferred communication channels between and during visits?

When it comes to communication between visits—be it general updates, news, or appointment reminders—email reigns supreme for all age groups, followed by texting.

For the 55+ age group, the difference is significant (60 percent prefer email and just 23 percent want to receive text messages).

But the gap narrows significantly for participants 34 and younger, with only four percentage points between the two options. Interestingly, this age group is more likely to prefer phone calls between visits (16%).

In regards to communication during visits, texting is the clear winner across the board.

A wide gap exists even for consumers 55 and older (the group with the highest portion of people who prefer calls). In this age group, over half still prefer text messages (54%), while only 27 percent prefer calls.

The (SMS) message here is loud and clear…

If you haven’t already, now is the time to fully embrace text messaging for communicating with customers.

Are your customers open to more modern forms of communication like smartphone apps?

As a matter of fact, they are. And while there is a predictable disparity between the level of enthusiasm among different age groups, an impressive 45 percent of consumers 55 and older said they are “likely” or “very likely” to download an app from your service department.

Unsurprisingly, the percentage of willing app participants jumps to about 60 percent for the younger segments.

How Does Your Service Department Stack Up?

The good news is, there aren’t substantial deviations among service department customer preferences by age group. There are differences, though, and ensuring you accommodate and fill the gaps can make a big difference in the profitability of your service department.

Ultimately, we firmly believe that dealership service department customer service should be a relationship-based experience. The survey results certainly tell us that much, and if you focus on providing a superior (and personal) experience, customers of all generations are more likely to be satisfied.

For a much deeper dive and complete breakdown of the full survey results, get your copy of the Dealership Service Retention Report today.

Do you know what your customers chose as their fourth most preferred amenity in our recent Dealership Service Retention Report?

Vehicle pickup and delivery.

For those under the age of 34, pickup and delivery even cracked the top 3 most desirable service department amenities.

And here’s the thing—we surveyed nearly 2,000 vehicle owners who use the dealership for service before COVID-19 hit.

So as you might imagine, all the recent restrictions and public health concerns only makes pickup and delivery services more valuable for your customers.

If you hadn’t already, chances are you’ve recently begun to dabble in offering a pickup and delivery service for your customers. Here, we’ll share some information to help you get the most out of this important (if not essential) service—keeping your bays full, revenue steady, and customers happy.

Vehicle Pickup and Delivery Is No Longer a Luxury, It’s a Necessity

By now, we know that the pandemic has forced many changes to the way dealer service departments do business, many of which are here to stay. And while you’re doing all you can to ensure the health and wellness of customers, there are many people who remain reluctant to bring their vehicle in for service.

The truth is, a large portion of your customer base would be more comfortable scheduling service if their dealership:

• Offered scheduling service online

• Came to their home to get the vehicle

• Drove it to the dealership to perform service

• Delivered the vehicle back to their home upon completion

• This is the essence of pickup and delivery, and 43% of customers who are currently delaying service would be more likely to schedule an appointment if you offer this safe and convenient service, according to Cox Automotive.

Now that we’ve established its importance, here’s how to properly execute pickup and delivery…

Make sure customers know you offer a valet service. 

If you offer pickup and delivery, wear it like a badge of honor. It might be the first thing customers look for when deciding whether or not to have their vehicle serviced at your dealership.

• • Include bold callouts on your website home and parts & services pages that you provide pickup and delivery service and repair.
   
• • Create a dedicated, SEO-rich landing page on your website that details the specifics of your pickup and delivery process. Tell them why you’re doing it, all the value and benefits they’ll gain, and exactly what they can expect when enlisting your services.
   
• • Send your email list of current and potential customers a message touting your safe and convenient pickup and delivery services with a call-to-action to learn more/make an appointment on your landing page.
   
• • Spread the word on social media with regular posts about your pickup and delivery service. You might even consider making some quick videos to post with your technicians and/or service director explaining the process and why you’re doing it. Better yet, get a couple testimonials from happy pickup and delivery service customers to feature and share.

Continue to stress health and safety.

Pickup and delivery may be the ultimate in customer convenience, but it’s also a much safer option these days. That said, there might still be some concern surrounding the “unknown” factor of having someone else in their vehicle for any extended period of time.

They need to know their vehicle will be properly sanitized and disinfected after the service is complete and before the return drop-off. Be sure to provide this peace of mind in all the communication points we listed above.

More and more facilities are opting to become certified PrecisionCare retailers, providing extra-safe conditions to customers with disinfectants EPA-approved and registered for use against COVID-19.

Check out Kelley Blue Book for more sanitation tips and best practices.

Provide clear and easy scheduling for pickup and delivery.

In DriveSure’s survey and subsequent report, we found that the service department amenity customers value most was online appointment booking.

The ultimate two-birds-one-stone is to not only offer pickup and delivery, but make sure customers can seamlessly make their appointment online.

Tools like Xtime provide a customer-friendly technology platform that many dealerships use to handle everything from scheduling to communication to payment.

Go contactless when picking up and dropping off.

Be sure to gather special instructions and customer preferences during the scheduling process as it pertains to the vehicle hand off.

Some may be more sensitive to this part than others, so it’s important you provide your protocols and let the customer dictate safe and secure handling of keys, online payment, emailing invoices, and anything that reduces or eliminates face-to-face interaction.

Communicate often.

Ever order a pizza online then meticulously track the entire process? They’re preparing it…now they’re sliding it into the oven. It’s done and in Steve’s car for delivery. He’s just a few blocks away and will be there in less than 2 minutes.

It’s kind of cool, and provides for a great customer experience. You may not be set up with the same tracking software for your dealership pickup and delivery service, but there’s nothing that says you can’t regularly communicate with your customers on the status of their vehicle maintenance/repair.

Use text messaging to let them know a service technician is on the way, and include the tech’s name, phone number, and photo.

Keep them in the loop with texts as you work through service and repairs, sending them photos and videos to discuss the diagnosis, what’s needed, etc.

And when service is complete, use their preferred method of communication to coordinate the best delivery time.

Pickup and Delivery is Truly a Win-Win

A win-win in every sense, pickup and delivery has allowed fixed ops and service directors to keep their bays busy while mitigating potential health risks to their employees and customers.

Now that you know how to properly execute pickup and delivery, you’re positioned to delight your customers with next-level service and convenience that’s sure to keep your service bays full and your dealership profitable.

2020 has been the year of adapting and adjusting. Every business has been affected by COVID-19 in one way or another, and while dealership service departments are basically back to pre-pandemic levels of volume and revenue, it’s hardly business as usual.

Adjustments to the way we approach service have expedited the popularity of pickup and delivery initiatives, enhanced flexibility, and put a focus on used car service retention. Not surprisingly, it’s all anchored by augmented safety procedures.

All signs point to these changing service department value props and strategies being more than just temporary. They will certainly be a big part of service department success for the remainder of 2020, and likely stick around for years to come….

Pickup and Delivery Provides Unmatched Convenience

“Curbside” service is in vogue these days, and dealership service departments have jumped on board in a big way.

Vehicle pickup and delivery is perhaps the most notable and significant shift in the way service departments are doing business during the pandemic. And while it’s not a new concept, COVID-19 has certainly accelerated its adoption at dealerships across the country.

Pickup and delivery is essentially just as it sounds. Instead of customers bringing their vehicle to the service department, the service department comes to the customers. Appointment-based over the phone or through an app at most dealerships, customers simply schedule a day and time, and the dealership valet program does the rest.

Coming to the customer’s home or workplace to get the vehicle, taking it in for service, and returning when finished—these types of programs are now extremely popular.

A win-win in every sense, pickup and delivery has allowed fixed ops directors to keep their bays busy while mitigating potential health risks to their employees. From the customer perspective, they’re avoiding the risk altogether by sitting in their home or office instead of a crowded waiting room (dealership service departments have very strict sanitation policies for pickup and delivery vehicles).

Dealer valet service was already a valued customer amenity.

Pandemic or not, pickup and delivery is likely here to stay. In DriveSure’s Dealership Service and Retention Report released earlier this year, “vehicle pickup/delivery” was already ranked the fourth most valuable dealership service department amenity by customers.

The survey was conducted just prior to the COVID-19 outbreak in the U.S. and even then nearly 40% of respondents found value in pickup and delivery. Today, it’s likely to be an amenity front runner for the vast majority of dealership service department customers.

Increased Attention and Flexibility

It’s not just the streamlined curbside valet that’s keeping rush hour log jams out of dealer service departments these days.

Many locations are seeing more business—but at a much more manageable volume. With a large portion of the population working from home, the added work-life balance has allowed for more flexibility as it relates to customers bringing their vehicles in for service.  

It’s not all early morning drop-offs and late day pick-ups anymore. And with the traditional “rushes” no longer as pronounced, everyone from department managers to service advisors to techs and cashiers now have less stress and more time.

Quality of work and customer service are more important than ever.

Things becoming more fluid and flexible could be great news for those needing to implement a more intentional approach to providing an exceptional customer experience. And there will never be a better and more important time to focus on customer initiatives.

Why?

Because when dealership service customers were surveyed by DriveSure earlier this year, they cited “quality of work” and “quality of customer service” as two of the top factors driving them to and away from dealers for service.

This will only become more crucial for service departments as value propositions continue to evolve and customer peace of mind becomes the biggest commodity of all.

Customer Safety, Comfort, and Peace of Mind

Speaking of peace of mind, you’d be hard pressed to find a dealer service department that hasn’t put a spotlight on health and cleanliness.

While effective sanitization procedures should be nothing new for dealership service departments, increasing those efforts has now become a differentiator and a value add. More and more facilities are opting to become certified PrecisionCare retailers, providing extra-safe on-site conditions to customers with disinfectants EPA-approved and registered for use against COVID-19.

Taking every precaution outlined by the Centers for Disease Control and Prevention (CDC) with dealership facilities, vehicles, and employees, cleaning crews have increased protocols to align with all EPA recommendations. Vehicles are completely sanitized after any human contact, and of course social distancing between guests and team members is enforced. 

In essence, similar to most other businesses, value propositions have inevitably shifted to promote the safety and well-being of every customer and employee.

Used Car Service Retention

The pandemic shut down factories for many months which resulted in fewer new vehicles on lots. Production still hasn’t caught up to fully replenish the supply, and as a result, many dealerships today are selling more used cars than new.

This is especially important for dealership service departments who have historically had a difficult time getting used car buyers to return for their first appointment. With the increase in used car sales—and because used cars typically mean more immediate parts and service revenue—the sales to service handoff for used car customers is now critical in retaining and building a long-term customer relationship.

Above and Beyond Dealerships Have a Clear Advantage

If there’s one takeaway, it’s this: service departments who are already positioned as “experts” will continue to have a competitive advantage, even as their value props change amidst COVID.

Those who offer additional programs that ensure high-quality service and extraordinary customer care will continue to be seen as the gold standard. In fact, dealerships who are going above and beyond, particularly with their pickup and delivery options are already seeing smoother workflows as well as increased:

      • Customer satisfaction

      • Retention rates

      • Profits from higher-dollar repair orders

      • Technician labor hours sold

To learn more about the things you can do to ensure you’re providing value to your customers, get your full copy of the 2020 Dealership Service Retention Report here.

Back in April, which seems like a lifetime ago in 2020 time, new car dealerships faced great uncertainty as COVID-19 tightened its grip and spread across the country.

In an effort to give dealership general managers and service directors an opportunity to stay informed about changes in demand for service departments, DriveSure has shared regular updates on closed repair order volume for dealership service departments throughout the United States.

As you might imagine, rapid changes in the market this past spring resulted in steep declines in closed repair orders. From late February through April, there was a staggering 40% drop. Reaching its low point in early April—with a 7 day moving average of just 132 weekly closed repair orders per dealership—the outlook was uncertain at best.

Then things began to turn around…

Repair Order Volume Begins to Rebound

In general, repair order volume is now back to where it was pre-pandemic. In fact, by the beginning of July 2020, though COVID was still impacting much of the country, daily repair orders were beginning to rise swiftly and significantly. Since then, and now through early fall 2020, orders per dealer have remained steady and stable.

Note that because this is a trailing 7 day metric, it can show significant volatility due to holidays, such as the dip seen on September 7 due to the Labor Day holiday.

Dealership Repair Orders in “The New Normal”

The easing of restrictions and lockdowns on local, state, and national levels is clearly the main impetus for dealership services increasing and normalizing over the past several months. Beyond the obvious, though, daily routines in what’s now the “new normal” are also a factor.

Some dealerships are seeing increases in service business due to certain customer segments that are working from home and have more flexibility to bring their vehicles in for service. The data also shows significant regional variations in repair order volume based upon local and state mandates responding to the severity of COVID in their areas.

Other Factors Impacting the Numbers

In certain regions, acts of nature have also taken a toll on repair orders. So while the overall trends are promising, and by and large back to pre-pandemic levels, some areas are still struggling in what’s been an incredibly turbulent year.

The local impacts on repair order volume from wildfires in the western U.S. and some disruption along the Gulf Coast from the recent hurricane that struck there have certainly been noticeable.

Increased Reliance on Service Revenue

According to recent reports from the Congressional Budget Office (CBO), we can expect the economic effects of the pandemic to continue for the next three years, with wholesale vehicle values not returning to at least the pre-COVID-19 baseline until 2023.

With people driving less due to remote work, high unemployment, and overall economic uncertainty, there will be a significant reduction in U.S. new vehicle sales for 2020.

With vehicle sales still down compared to 2019 year-to-date results, the importance of dealership service revenue has never been greater.

The bottom line is this: dealerships will be relying heavily on service revenue as vehicle sales sharply decline, and the continued reporting on dealer repair order volumes will give decision makers an opportunity to stay ahead of changes to service demand as much as they can and come out strong on the other side.

Dealership Service Retention is More Important Than Ever

“More than ever,” or “more important than ever.” We’ve heard those phrases a lot these past few months, and here in the case of dealership service retention, it really is true. As we just pointed out, new vehicle sales are in a major slump, and it may take some time for things to bounce back. Getting customers to return to dealerships for service is critical to success—both for maximizing fixed ops profits, and for generating new car sales.

Ensuring your customers remain loyal and return to you time and again for service has always been the best way to grow your dealership’s profits. Today, and for the foreseeable future, retaining service department customers will be vital in making up for lost revenue.

The good news, as you’ve read here, is that dealership repair order volume numbers have bounced back after a rough few months. Now it’s time to keep your momentum going and focus on delighting and retaining your customers through the last part of 2020 and beyond.

To find out what keeps your customers returning to your service center, as well as what might drive them elsewhere for service, check out the 2020 Dealership Retention Service Retention Report.

About the Data

The dealer repair order volume graphs in this article show the aggregated 7-day moving average of the weekly average number of closed repair orders per dealership for nearly 100 of our new-car dealership customers across the country, as reported through their Dealer Management System. Displaying a 7-day moving average removes effects caused by different days of the week (for example, Sundays generally have much lower volume). Data was updated daily through September, 2020, and is delayed by one week to ensure accurate reporting.

Growing your dealership’s service business isn’t an easy job. With countless auto repair shops trying to steal your customers away and manufacturer-recommended service intervals ever expanding, it’s easy to feel like the cards are stacked against you. But with the right service department marketing, you can bring in those customers you seek.

Now it’s probably not news to you that there are no silver bullets when it comes to marketing. It’ll take effort and consistency to make the tactics included in this article successful. And, once you do bring customers in, it’s up to you to do deliver a great customer experience.

With that said, these seven marketing tactics are a mix of new best practices and old staples that’ll help you serve more customers, more often.

1) Value-Added Incentives

Value-added incentives are all about making your standard services more valuable to your customers without relying on discounts. By including extra perks at no additional charge, you make customers feel appreciated and can stand out from the competition. Many dealerships have done some form of this for years now, such as offering a free car wash with every oil change. But some dealerships take this much further to really set themselves apart and build customer loyalty.

Example: Our product, DriveSure, is centered around value-added incentives. We make it easy for dealerships to add a suite of renewable benefits to regular maintenance services, such as oil changes. Each time a customer comes in for a qualifying service, they receive dealership-loyal roadside assistance, road hazard tire protection, and rental car coverage at no cost to them. When these benefits expire, they simply return to the dealership for another qualifying service to renew them. Dealerships like Lilliston Ford in New Jersey have used DriveSure to grow their service business by 33%.

2) Mobile Alerts

Most of us always have a smartphone by our side these days and that can be great news for savvy marketers. While most of your competition is focused on more traditional marketing channels, you can cut through the noise by marketing through your customers’ phone notifications.

Example: With the DriveSure Digital Pass that your customers can easily add to their smartphones, they can receive notifications when they’re due for service. Even better, dealerships can set up geofencing to deliver specific messages when customers are in certain locations. For example, you could welcome them back when they visit your location or instantly provide them with an offer when they visit a competitor.

3) Text Messaging

If there was one thing that was clear from our recent 2020 Dealership Service Retention Report, it’s that consumers are open to receiving text messages from their dealership. With well-crafted messages and a solid strategy, you can communicate with people through the same channel where they talk with their friends and family. This can help ensure that your messages actually get read while also helping you build a lasting relationship with your customers.

Example: One way to make text messaging do double duty for your marketing is to ask for reviews after a customer visits your service department. Not only do you get one more opportunity to engage with them through SMS, you can also improve your average rating and number of reviews online. We wrote about many more text message marketing examples here.

4) Email Marketing

Even though we have new ways of reaching customers, our 2020 Retention Report proved that email is still king. One of the things that make email great is its versatility. We recommend using it to send regular updates as well as one-off notifications. Regular updates, such as a dealership newsletter, will help you stay top of mind and build a lasting relationship with your customers. Service reminders and other one-off notifications can drive immediate action and assist with increasing your service visit frequency.

Example: Here’s one email template from AutoRaptor designed to help ensure that customers return to your dealership for service after purchasing a vehicle:

Dear [name],

Congratulations on the purchase of your new [make/model]! It was a real pleasure to help you find your perfect vehicle. How many people have you showed it off to so far?

Our team is grateful that you chose to buy from our dealership and we hope that the experience exceeded your expectations. If you think we could be doing anything differently—or want us to keep something up—please let me know.

As a reminder, your first oil change with our in-house service department is complimentary, so I hope we’ll see you walk through the door in about 3,000 more miles.

Thank you again, and enjoy your new [make/model]!

Sincerely,

[Sales rep name]
[email signature]

5) Direct Mail

So far we’ve only talked about digital forms of marketing, but direct mail can still be a powerful tool for dealerships. In fact, giving customers a physical item in the mail is actually beginning to become a stand-out tactic as more and more of our communication moves online. In our experience, direct mail works best when you give the recipient a clear and compelling call to action and pair it with an attractive offer, such as a value-added incentive like we discussed above.

Example: Using DriveSure’s direct mailers similar to the template below, Mazda of Orland Park drove over $100,000 in additional sales across three conquest campaigns.

6) Online Advertising

Online advertising can be a great way to get in front of customers. We recommend starting with Facebook Ads and Google Search Ads. Google Search Ads can help you ensure that your dealership gets found when people make relevant Google searches. Facebook ads are a great way to get in front of new people, and can even be customized to show specific ads to your customer list.

Example: The example below comes straight from Facebook, showing one way dealerships can use Facebook ads to show off the experience of their technicians.

7) Get the Sales Department Engaged

Last but not least, one of the most important automotive service department marketing tactics happens entirely at the dealership. If you can get your sales people to talk up your service department and introduce new buyers to your team, you’ll have a much better chance of creating a lasting relationship that keeps them coming back.

Example: One of the most effective ways to do this is with a well-executed sales-to-service handoff. We have a free guide that walks you through exactly how to master this technique.

What marketing tactic works best for your dealership’s service department? Let us know in the comments below!

What’s the easiest way to turn your dealership into an engine of profit?

Keep more customers coming back for service, more often.

Okay, maybe it’s not all that “easy,” but it is possible.

In fact, nearly 2,000 dealership service department customers have spoken, and what they had to say on the topic might surprise you. It’s all detailed in our 2020 Dealership Service Retention Report, and it’s loaded with valuable, actionable guidance to help make customer loyalty and retention not only a possibility, but your new reality. 

Let’s take a look at some of the findings.

Why Would Customers Go Elsewhere For Service?

We’ll start with the big one. In what was perhaps the report's most eye-opening revelation, we found that a single bad experience at the dealership puts it at risk for losing any customer, regardless of their loyalty.

Those with no allegiance jumping ship, totally understandable. But when nearly half (49%) of those who self-identified as “extremely loyal” customers said that they’re likely to consider leaving if they have just one bad experience at the dealership, we did a double-take.

No do-overs...even from our most staunch supporters. Seems a bit harsh, but perhaps it’s just the wake-up call we need right now.

On a lighter note, we can take solace in the fact that a quarter (24%) of the extremely loyal group said “nothing” would make them consider going elsewhere.

Here’s the high-level view of what might cause customers to go somewhere else for service:

And now the full view, breaking the responses down by customer loyalty:

Leaving for a lower price was the most popular choice among everyone (excluding the “extremely loyal”) with 46% of the 2,000 participants saying price is a big factor. When you break the numbers down by age, and 56% of consumers under 34 told us they would consider leaving their dealer service department for the lowest bidder.

Our main takeaway here is this:

For dealerships that effectively delight customers and prove value, the findings indicate that the vast majority of respondents would keep coming back — if the customer experience remains consistent and superior.

The fact that over half (53%) of all those surveyed said just one bad experience could send them packing is indeed a daunting prognosis, but certainly not incurable. Now’s the time to make sure you’re doing everything possible to create a memorable experience that retains and increases service traffic by implementing proven tactics and best practices.

But Enough About Dealership Defection…

What are the factors that influence and encourage customers to come back to your dealership for service?

Some of the responses here might provide you with much-needed validation. Others might illuminate areas for improvement.

Customer Service is Big, Quality of Work is Bigger

When asked to rank several items by how important they are when determining where to go for vehicle service, “quality of work” was the clear winner. Second most important was “price,” with “quality of customer service” nipping at its heels.

This is mostly good news for dealerships, many of which already pride themselves on the quality of their work and their service. However, it does highlight what service managers already know, low-cost competitors always pose a threat.

Overcoming the Price Factor

Sometimes, dollars and cents just make sense.

It’s a bottom line world, after all.

That said, there are ways dealership service departments can differentiate themselves and stand out from their competition, regardless of price points.

Focus on quality and make it known that the price your customers pay is well worth what they receive. You are the foremost experts and caregivers on their specific makes and models, no one else.

By emphasizing the competency of your technicians, ensuring your staff is delivering a delightful experience, and adding a valuable package of unique vehicle owner benefits that customers won’t find with cheaper competitors, many dealerships have no issue overcoming the price factor.

We found this is especially true for more senior customer segments, who don’t care as much about price as they do the quality of work and service.

What Services Do Customers Want From a Dealership?

The significance of the 2020 Dealership Service Retention Report can’t be overstated. It’s the only one of its kind—conducting research exclusively from those already getting their vehicles serviced at a dealership.

That makes this next point even more impactful.

44 percent of respondents prefer to get all their vehicle service needs performed at a dealership.

As for the remaining 56 percent, it’s the type of work needed that factors heavily into their decision for where to take their vehicle. The top five services that those consumers prefer to get from a dealership are:

          1. Manufacturer-recommended maintenance (77%) 

          2. Electrical issues (63%)

          3. Unknown issues/check engine light warnings (63%)

          4. Oil changes (63%)

          5. Transmission work (57%)

The three services they’re least likely to prefer to have done at a dealership are:

          1. Battery replacement (18%)

          2. Body work (21%)

          3. Tire rotation or repair (33%)

Since people are less likely to return with issues related to batteries, tires, and brakes, it underscores the importance for service advisors to identify those issues while the customer is already at the dealership. Not only can this prevent the customer from going elsewhere for those services, but it also gives dealerships an opportunity to avert future issues for their customers before they even occur.

We Now Return to Your Engine of Profit

Ultimately, consumers who both purchase and service their vehicles at a certain dealership are also likely to buy their next vehicles at that same dealership, thus bringing in a new sale and more profits from services.

With nearly half the consumers in our study already planning to purchase their next vehicle at the dealership where they service their current one (and 45% undecided), every future service visit is another opportunity for your dealership to wow your customers and earn their repeat business.

Now that you know what keeps them coming back for more, and perhaps most importantly, the things that drive them away, you’re poised to become the only one your customers depend on for maintenance, tires, and repairs.

To dive even deeper into the unique perspectives of your target customers and discover the secrets to dealership service department retention, get your full copy of the 2020 Dealership Service Retention Report here.