Fixed operations is the backbone of a dealership. Whether car sales are hitting record highs or frightening lows, repairs and maintenance will always be required.  While a dealership’s new car sales only compete with other dealers, the service center has to compete with other dealers plus national service chains and independent service providers. Just how much of a concern is the competition? A recent CDK Global dealer survey revealed that, on average, dealers lose over 40 percent of service customers after warranty and more than 80 percent of dealers are concerned about losing customers to independent service providers.

Most dealers think that price is the main reason customers are defecting, but that doesn’t tell the whole story. In a 2016 repair satisfaction study by AAA, two-thirds of U.S. drivers said that they don’t trust auto repair shops. This is especially true of younger generations. When compares to Baby Boomers, Gen Xers and Millennials were both 20 percent less likely to have a trusted repair shop.With mistrust so high, digital impressions become especially important. The internet is one of the first places customers turn to when searching for a provider. According to Google Think, 70 percent of people visit a retailer website when they have a want-to-buy moment. An effective web site can have a significant influence on where that customer chooses to go for service.

In order to understand how customer questions are being addresses online, CDK conducted a study comparing the web site features of 776 independent service providers and national service chains to 750 dealerships. Every major volume and luxury brand was represented, along with 203 designated market areas (DMAs) from each U.S. state. The CDK Retail Insights team evaluated service pages from a list of criteria under three main customer satisfaction categories: cost, confidence, and convenience.

Convenience

In today’s world convenience is king. Few people have the patience to be slowed down by inefficient processes and a lack of amenities. This is where dealers should have a particular advantage over independent service providers. Most dealers are much better equipped to provide benefits that independents can’t, but it was shocking to see how few dealers showcased them. Here are the results of three important convenience features from our study:

1. Alternate transportation (dealers 42 percent, independents 22 percent)

Getting auto service can be a particularly stressful, since a vehicle is often essential. Offering alternate transportation, like shuttle service and loaner vehicles, allows customers to continue their day with less disruption. The old saying “time is money” means that waiting around at a service shop can cancel out any savings from a cheaper repair price. Yet over half of dealers fail to showcase this on their service pages.

2. Automated Scheduling (dealers 76 percent, independents 4 percent)

The benefits of automated scheduling shouldn’t need explaining. Setting up a confirmed service appointment from your phone while waiting in line for a coffee is a huge convenience. It’s a simple digital tool that one in four dealers aren’t taking advantage of.

3. No-appointment service (dealers 23 percent, independents 4 percent)

Whether it’s trying to avoid a challenging manual appointment form or having to address a surprise problem right away, many customers want the option to show up unannounced. According to our dealer survey, nearly all dealers offer some kind of no-appointment service –even if it’s just for basic service like oil changes. However, a large majority of dealers are not properly featuring this sort of offering online, causing a large perception gap among their potential customers.

Confidence

With so much distrust among customers, it’s important that dealers promote confidence in their service center on their service pages. This is where independents are doing best at meeting or beating dealers online. In particular, customer trust can be earned through three distinct elements:

1. Genuine OEM parts (dealers 79 percent, independents 11 percent)

Using genuine parts reassures a customer that they will get exactly what is needed to get their vehicle running right. Despite the fact that dealers trounced independents in this important confidence category, we often found it buried in a wall of text that most customers won’t read. It’s much better to call it out separately where it will get the customer’s attention.

2. Customer reviews (dealers 53 percent, independents 49 percent)

Reviews are increasingly important in the consumer decision making process – especially to younger shoppers. Featuring your positive reviews helps people understand what to anticipate at your service center and why they should choose you. Independents are nearly equal with dealers in delivering this on their websites.

3. Service staff bios (dealers 4 percent, independents 12 percent)

Staff bios are all about showing off their expertise. Customers want to know the job will get done right the first time. Listing years of experience, training and certifications creates customer confidence in your service technicians. A personal detail, like a hobby, can also appeal to customer’s emotional side.

Cost

Dealers aren’t wrong that cost is a major customer concern. Nearly three in four shoppers said they were wary of repair shops overcharging. It’s important to remember that cost isn’t just the dollar sign attached to the repair but includes the value provided by the dealer. There are two main features we used to measure this digitally:

1. Service specials (dealers 79 percent, independents 41 percent)

Offering specials is a good way to appeal to the cost-conscious customer. It’s important to use things like click to print or an email button so customers can easily access and use special offers. Pictures of specials placed in physical ads are difficult for customers to use and hard to read on mobile.

2. Value of service (dealers 72 percent, independents 56 percent)

Value of service is your chance to remind customers about the unique benefits they get from going to your service shop. Do you have a decked-out customer lounge where customers can use the free Wi-Fi to work and sit in comfortable chairs with snacks? Most independents don’t. Are there perks like free car washes or a promise of customer satisfaction? Highlight the value customers get from spending their time and money with you.

Action Steps

A strong online service presence that shows how you respond to customer needs and concerns is a key element in attracting customers. And don’t forget that independents and chains don’t have to share valuable digital real estate with a sales department. Here is a summary of our recommendations for how you can improve your digital service strategies:

• Provide a homepage link to automated online scheduling. Scheduling service online should be as easy as reserving a hotel room online.
• Show the value of your dealership’s service: Highlight factory training, genuine OEM parts and expertise in the brand. Independents service everything; you specialize in your customers’ cars.
• Promote the convenience of your dealership’s service: Feature amenities like
  shuttle service, business centers and no-appointment service. Time is money, and these conveniences can make up the difference in service costs.
• Include positive service reviews from customers on your website. Make them easy to find and separate them from sales reviews.
• Target service customers by advertising the benefits of your dealership’s service center.