More flexibility and convenience. Pickup and delivery. Spotlight on customer safety and comfort. Increased importance on used car service retention. These are all ways in which fixed ops and car dealer service departments have shifted their value propositions amidst the uncertainty of 2020.

But if we fast forward a year or two, how will fixed ops really look in the "new normal"?

According to Automotive News, nearly 70% of dealers said they were not at all prepared for the changes brought on by COVID-19. Despite the challenges, though, they were quick to respond, as many dealership service departments are now essentially back to pre-pandemic levels of volume and revenue.

Among all the changes and adjustments fixed ops departments have been forced to make, there are a lot of things customers are getting used to when they have their vehicles serviced at the dealership.

Aside from a continued focus on safety and cleanliness (which should go without saying), here are a few things you should do to prepare for the new normal in fixed ops.  

Go All In With Pickup and Delivery

This is something many fixed ops departments were dabbling in even before the pandemic, and it’s only gained momentum in recent months. 

Coming to the customer’s home or workplace to get the vehicle, taking it in for service, and returning when finished has become even more important to customers. Already ranked as the #4 desired amenity in DriveSure’s recent Dealership Service and Retention Report, the accelerated adoption of pickup and delivery by most service departments has made this new level of care and convenience something customers will expect moving forward.

Aside from pickup and delivery being a tremendous value-add, it’s proven to be great for business, too. Paragon Honda in Woodside, NY, was one of the trailblazers in offering this service, and they’re currently averaging more than $500 per repair order through pickup and delivery.

Optimize Your Website to Include Fixed Ops Specials

If there’s one thing customers have come to expect these days, it’s a seamless online experience. From browsing vehicle inventory to ultimately pulling the trigger on a purchase, it can all be done online now.

But a superior online experience should go beyond just the vehicle purchase and become an integral part of your fixed ops as well. If your website doesn’t already have a “specials” tab, you should definitely consider adding one. Next to a new and used vehicles search, customers are most apt to click the specials link on your site—which should represent all four of your profit centers (new/used vehicles, as well as parts and service).

More than just having a specials section on your site that includes parts and service, customers should be able to book their service appointments online as well. Now more than ever, there seems to be a strong desire for this capability, as customers ranked it their #1 preferred amenity in the Dealership Service Retention Report.

Offer Remote and Contactless Payment

The demand for remote payment options now exists in pretty much every industry. Order a pizza, pay in advance online. Take your dog to the vet, pay in the parking lot via a link they text you. Pick up your groceries and the delivery clerk processes payment automatically after loading you up.

Contactless payment is the norm these days, and dealer service departments are no exception.

Many fixed ops departments are using integrated payment solutions like Xtime to increase customer retention by transforming the ownership experience for automotive manufacturers and dealership service departments.

Paying for repair orders online or through text without having to wait in line or interact with a cashier both increases customer satisfaction and boosts dealer revenue and profitability. And the ability for a quick iPad “check-in” at the car saves both the techs and the customers an immense amount of time.

It’s these types of technologies and conveniences that put an emphasis on value, convenience, and trust, meeting a strong demand and delivering an exceptional customer experience. No doubt the new normal in fixed ops will be anchored in remote and contactless payment options.

Emphasize Digital Communication

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% saying they preferred text communications between service visits, and 60% want to be communicated with via text during service.

What’s more, 54% of dealer service department customers said they are “likely or very likely” to download a mobile app on their phone for service reminders.

The moral of the story here is simple: staying in contact with your customers through text and mobile app marketing is a surefire way to cut through the clutter and outpace your competition in the new normal.

Learn More About What Your Customers Expect

Clearly, much of what’s to come for fixed ops will hinge on the ability to fully embrace the digital revolution. The good news is that many dealer service departments where headed this direction already. If you’re among them, keep your foot on the gas. And if you’re still on the fence, it’s not too late to get started and prepare for the new normal!

If 2020 has taught us anything, it’s how quickly we can adapt and adjust to continue to exceed evolving customer expectations.

If you’re interested in a more holistic view of what fixed ops customers are looking for in their dealer service experience, download the complete Dealership Service Retention Report here.

Learn how urgency, susceptibility, and perception influence customer retention.

In the automotive service industry, there is a widely accepted misconception that customers defect due to dissatisfaction with your dealership.

For this reason, most of us rely on our customer satisfaction index (CSI) score to help predict customer retention, believing that if our customers leave happy they’ll come back. But this isn’t always how it works.

Yes, CSI is important — and no doubt an effective measure of the level of engagement a dealership maintains with its customers — but satisfaction is not the only factor that impacts loyalty. At DriveSure, we’ve helped many dealerships with good CSI scores, but who still needed something to boost retention.

This post discusses three important customer retention influencers not related to your CSI — urgency, susceptibility, and perception — and outlines several recommended strategies for overcoming them. 

Urgency

The urgency customers feel toward addressing vehicle maintenance and repairs vary wildly. In some cases, circumstances warrant immediate repair. In others, owner complacency results in long delays before an issue is ever addressed.

Consider general maintenance indicators. These handy dashboard indicators are designed to trigger the customer to perform factory-recommended maintenance immediately. However, dealerships cannot simply rely on satisfied customers to return to them for service as soon as the light comes on.

Here’s why:

1. 1. Since the vehicle still operates while the light is on, the driver remains in control of choosing when to go in for maintenance. Some will pull into the closest repair shop, while others may ignore the indicator for months.
    
2. 2. The light does not tell the customer where to return. Once the light turns on, aftermarket providers have an open opportunity to lure customers away via marketing and other outreach.
    
3. 3. The lights are not perfect at predicting need. No two driving patterns are the same, so an issue triggered early for one driver may come later for another.

Unplanned repairs are even more troublesome for customer retention. When there’s an impending need for maintenance — for example, a flat tire, dead battery, or check engine light — vehicle owners often need to find the quickest solution.

In these situations, customers might defect because:  

1. 1. Your dealership’s location is not convenient. When a breakdown happens, there are likely many aftermarket alternatives between its location and your service department.
    
2. 2. Cost is not the most important issue. Often the need to get back on the road is a top priority, so a vehicle owner might choose not to confer with you. This may result in them taking the first resource available, often paying more than necessary, and not necessarily addressing the underlying cause of the needed repairs.
    
3. 3. Delayed maintenance needs performed. Customers who have the repair handled at an aftermarket shop will likely get delayed maintenance work done there too. This means the opportunity to fix the repair AND perform scheduled maintenance goes to the aftermarket and not your service department.

Susceptibility

Well-timed and well-crafted marketing messages can lure the most loyal customers away — even if they’re not inherently a price-hopper. For example, when a customer sees a compelling offer for a routine service, they may not think twice about having it done somewhere else “just this once.”

Here are three areas where susceptibility becomes a defection trigger:

1. 1. Factory-paid maintenance has expired. The sticker shock associated with routine maintenance that was once free can be significant. Consider being upfront about the normal cost of the service while it is free so there are no surprises down the road.
    
2. 2. Encountering mass-media marketing. Aftermarket alternatives routinely promote their ability to provide factory-recommended maintenance, so they are often top of mind for drivers. This becomes an even bigger challenge once factory-paid maintenance has expired.
    
3. 3. Returning to aftermarket repair shops. Customers who visit an aftermarket alternative for immediate repair can be tempted by offers and promotions based on time, mileage, and other relevant vehicle needs recorded in the aftermarket’s database.

Perception

Customer perception of the need to service their vehicle at the dealership they bought it from changes the further the customer is from the date of purchase. As this perception changes, common misbeliefs about dealership service centers can cause even satisfied customers to defect.  
For example, customers often wrongly believe that dealerships are:

1. 1. More expensive. All things considered, this is often inaccurate. Many dealerships today have a price comparison board to combat this misconception. They also often offer value-added perks that aftermarkets do not.
    
2. 2. Less convenient. This perception can be true for customers who purchase their vehicles from a location far from their work or residence. To counteract this, dealerships offer car rentals, rides, and remote delivery and pickup for their loyal service customers.
    
3. 3. Not quick or efficient. Unlike aftermarkets, dealerships will check for open recalls and provide the most comprehensive multi-point inspection, which is often why it takes a little bit longer.

Fighting Customer Defection with a Well-Rounded Strategy

Of course, understanding your CSI is important for establishing the foundation for customer retention. But focusing on CSI alone is not going to address all of the potential defection points for your customers.

To craft a well-rounded strategy for contending customer churn, we recommend:

1. 1. A comprehensive marketing strategy. Marketing that is grounded in customer awareness and serves all your dealership’s departments will help you stay top of mind with customers and educate them about the unique value you provide.
    
2. 2. Creating a sense of urgency. The value-focused marketing messages you create should be associated with a sense of urgency to cause the customer to act, and to act by returning to your service center.
    
3. 3. Avoiding short-term gimmicks. Tactics that pander to price shoppers can undermine your ability to be seen as a value-added leader in your market. Likewise, one-time offers can hurt your long-term sustainability as some customers may only be shopping for the perk.

Additionally, participating in programs like the one offered by DriveSure can help you create a greater sense of urgency, minimize susceptibility, and influence perception. For example, by requiring customers to return for service to renew their benefits you can immediately establish a deadline, which reduces the susceptibility of your customers to the marketing initiatives of aftermarket providers and ultimately changes the perceived long-term value offered by your dealership.

DriveSure makes it easy for dealerships to offer unbeatable vehicle maintenance and bring customers back for service, tires, and unplanned repairs — all without complicated loyalty programs or profit-cutting discounts.

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Have you seen otherwise satisfied customers defect for any of these reasons? How are you bringing them back to your business?