The latest news out of the auto industry is that Amazon, everyone’s favorite online retailer, is investing $700 million into the electric truck and SUV startup Rivian. That much money is no joke, and it’s going to be a huge boost for a company with so much positive stuff going for it.

Even GM’s Mary Barra has praised Rivian for their EV development that aligns with GM’s own zero-emissions vision for the future. But what does it have to do with the service department?

It’s a Display of Relevance

The deal between Amazon and Rivian, and even the General Motors CEO’s admiration from the outside looking in, displays that Rivian is relevant. Their company hits key points for the industry and or a particular customer base that immediately gives them credibility and desirability.

For Rivian, their relevance arises from two unique places:

• First, the company is committed to being a zero emissions carmaker with a clearly demonstrated platform of electric vehicles. EVs are still widely regarded as the next big step in the industry; on the cusp of mainstream.
• Second, Rivian builds the vehicles that are most sought after in North America – pickup trucks and SUVs for the middle class. It’s an area that’s still blowing up in sales with no signs of slowing. And if gas prices climb again, what’s more insulated from the pain than an EV?

I can’t find an industry example that shows relevance more than Rivian.

How the Service Industry Can Relate

Rivian’s sweet new truck won’t be the savior for your service department, but the company’s ideology could spark your next phase. In automotive service, we’ve long expected the customer to conform to OUR way of doing things. Whether it be blindly accepting our service and repair recommendations to booking appointments on OUR terms or choosing to either wait in the customer lounge or take a ride home in a shuttle van, it’s been OUR way or the highway.

That doesn’t fly in today’s culture and economy. Service means something altogether different because what was relevant years ago isn’t today. Service departments need to discover how to be relevant, and that’s an individual thing in different cities, demographical areas, and among different cultures.

Here are a couple examples:

• Portland, OR is one of the most cycling-friendly cities in the world but many people obviously still own cars. In keeping with cultural relevance, dealerships can have a fleet of bicycles on hand for ‘loaner vehicles’. Now, that’s not something you’d provide without alternatives – a shuttle service and loaner cars, for example. But in Portland, it’s a differentiating factor that could very well resound with locals.
• In Mountain View, CA, where the tech boom is still going strong, calling customers with estimates from the service desk doesn’t fit the culture. But a Snapchat or FaceTime video showing which repairs are necessary and why offers heightened transparency and connects with customers on a more familiar, relevant level.

Rivian still builds vehicles – just with a different focus to be relevant. Your service department still centers around vehicle repairs and maintenance, but it differentiate itself and do better by being more relevant.

From the sun-soaked east side of Hawaii’s Big Island, I have the pleasure of writing about the preferred customer experience. And what doesn’t seem to be a congruent thought has actually given me clarity on what the customer experience should be like in the service department. Either that, or it’s sunstroke…

It struck me while driving our rental vehicle down Queen Ka’ahumanu Highway toward the beautiful sands of Mauna Kea beach. I had no idea when the year-old Hyundai Santa Fe had last received its oil change. I had signed the contract and taken the keys without a second thought. Off we went, racking up hundreds of miles, trusting that our rental would be reliable and our travels uninhibited by a service reminder for the two weeks we were in the rental.

First Experience a Customer Wants: Trustworthiness

Just like our rental car, customers want to know their service provider is trustworthy. In our case, it’s Enterprise Car Rental, but for your customers, it’s YOU. There is zero room for negative experiences or comeback repairs, nor phones or emails unanswered in a timely fashion. Your customer should be able to have the extremely high standard of service that we all demand from other industries, and any failure to deliver as such damages their ability to fully trust your service department.

That means confirming the details of the work order every time, always road testing after repairs, and performing consistent quality checks. At every stage, strive to build trust through accuracy and transparency.

Second Experience a Customer Wants: Convenience

Honestly, if a customer could own a vehicle and never notice that had been serviced, it would be ideal. Since that’s not possible, the goal should be to minimize the impact servicing their vehicle has on their life. Convenient hours are a good start, but there’s much more that can be done.

Offering pickup and drop-off services might be the most popular trend for the service industry, especially paired with a loaner vehicle. It tells customers exactly how much you understand the value of their time. That’s a far cry from the not-so-distant past where we in the service industry believed customers should be happy to come to see us in the service drive, then wait around or find their own ride.

Making the service experience convenient so it doesn’t interrupt their life will undoubtedly increase customer loyalty.  

Third Experience a Customer Wants: Unquestioned Complete Service

There will always be outliers who want to do their own maintenance and repairs, and those who want detailed explanations for every miniscule warranty repair or scheduled service item. The vast majority are fine just knowing their vehicle is up to date.

Here’s where premium manufacturers like BMW, Genesis, Jaguar, and Volvo have it right to some extent. Regular maintenance is covered for two or three years from the date of purchase, and that’s a load off the customer’s shoulders. It’s also an opportunity for other manufacturers – or dealers themselves – to offer premium service to all of their customers.

For either a monthly/annual fee or a cost included with the price of the vehicle, complete vehicle maintenance can be included. We’re talking everything from oil changes and wheel alignments to tire replacement and timing belt changes. Within reason, I’m led to believe that customers would embrace this type of service model to eliminate surprise invoices. It helps with points one and two also: a trustworthy service experience and the best in convenience.

Look, I understand that it’s impossible to change directions on a dime, and for many dealers, these three things are massive undertakings to implement. The spirit of them, however, can be integrated into what you’re doing now. Provide the most convenient service possible for each and every customer and make it as convenient as you can. If they’re anything like me, that’s what they want most.  

Think of a recent experience with retail that you’ve had, or perhaps a few. It doesn’t matter what it is – Walmart, Lowe’s, American Eagle, Costco, Zales, Home Depot, Michael Kors, or CVS are examples. If you recall your visit, there’s an extremely high chance that it went exactly the way you pictured it going.

When you step foot into Walmart, you’re guaranteed to see elderly people in blue vests and decent prices, but you don’t expect much from the customer service at all. At American Eagle, you’ll see high-quality designer clothes and ripped jeans selling for five times as much as you’d see at Walmart. Costco – well, everything is in bulk, obviously. At CVS, you’ll have an arms-length receipt for your pack of gum, and so on.

Successful retailers have done a fantastic job of creating their brand. Whether it’s a single, standalone location or a chain across the world, their branding will be consistent across every store, as will the customer experience.

That’s how it should be with your dealership too, including the service department.

 An Aligned Customer Experience is Extremely Important!

A Gartner report from a couple years ago found that “When it comes to making a purchase, 64% of people find customer experience more important than price.” Let’s give that some application to the automotive industry, particularly the service department.

As a dealership, the slogan should broadly tell the customer what to expect inside the doors. That’s an introduction to your brand. You’re making a promise to your customers, and you’d better meet their expectations. If you promise “lowest prices on Chevrolet in San Antonio”, you have to make sure no one else can undercut your deals. If your slogan is “where customers send their friends”, your customer experience better be second to none.

Walmart’s slogan, “Always Low Prices”, gives a clear picture of what you can expect inside. It says nothing of high-quality customer service, which is good, because that isn’t what you’ll receive. For Lowes, their slogan, “Never Stop Improving” clearly has connotations for home improvement and renovation materials, as well as customer service, and it holds fairly true. The CVS slogan has nothing to do with receipts, however, instead opting for “Health Is Everything”. That works too.

As a dealership management team, a goal should be to align your brand to the CX across all departments, including the department customers visit most often: the service department.

Service or Price?

Dealerships whose brand focuses on giving every customer a great deal have a challenge in the service department. Those same customers who saved thousands on a new car are hit with the same high prices as every other shop out there. You can (and should) provide the ultimate customer experience, but their expectation isn’t being met, according to the brand image.

Dealers who focus on the best customer experience in sales without promising the best price have a high standard to uphold. In the service department, customers might not be expecting the lowest door rate or menu items, but they definitely expect high-quality customer service that can’t be beat.

Depending on your demographic, neither approach is inherently wrong. Do what works for the customer base you have. But one thing you have to do is align your customer experience and brand.

Wondering how? Online reviews are an easy way to find out how your customers feel. Read every online review from the past year to find out how you’re doing. Tally them up in three groups: happy customers who think you’ve done well, customers who thought your prices are too high, and customers who were let down on the customer experience. From there, you’ll see which direction you need to take to align your brand and CX.

Everyone says it: “There’s no ‘I’ in ‘Team’”. It’s one of the phrases that draws eye rolls and exasperated sighs, but overall it’s acknowledged as truth in the service industry. For service advisors though, a team-based mentality is difficult to attain for two reasons: most service advisors have type-A personalities, and more importantly, it doesn’t work. It’s like trying to fit the square peg in the round hole.

The service advisor position is much more individualistic than most jobs. And while we want everyone in the department to work together, the position isn’t structured for it. Typically commission-based and with customers returning CSI scores based on an individual’s performance, ‘each man for themselves’ is more fitting.

Seem like it doesn’t fit with the dealership’s team mentality? If you approach it as an entrepreneurial position, it can and does fit.

The Service Advisor as an Entrepreneur

Think of it as every service advisor operating their own mini-business inside the department. The business owner – aka. the service advisor – is responsible for the work they do, the ability to serve their customers, the income they generate, and the feedback they receive.

With an entrepreneurial mentality, the service advisor takes on more responsibility willingly. There’s no one else to blame when things go sideways. For example:

1. They have to take ownership for their mistakes. Has a customer arrived at the end of the day for their vehicle to find it hasn’t been completed? Was there an error on the work order or a line missed? It’s now up to the service advisor to fix the issue. They have to answer to the customer – their client – as well as their contractor – the service manager.
2. They own the successes. When the month has been very profitable, it should reflect back to the service advisor’s paycheck in commissions. When their CSI scores are near perfect, that also should be recognized. That’s not a stretch compared to the typical structure – it already has an entrepreneurial feel.
3. Advisors become responsible for their own clients. Ever notice how some service customers gravitate toward a favorite advisor or book an appointment only when they know the right person is able to serve them? There’s a reason for it, and it’s because of the trusting relationship that’s been established. Conversely, the entrepreneurial service advisor doesn’t have the option to hang a client out to dry when it doesn’t suit them, nor can they simply pass off a customer to another advisor if they’re headed home for the day early.

It’s Not A One-Man Show

Anyone in business knows that building and maintaining parallel business relationships is a big deal. For service advisors, that’s how it is too. While essentially ‘owning’ your own small business within a business, there are people you have to work beside and work with in harmony.

The entrepreneurial approach can strengthen the service ‘team’ when done well. Service advisors who buy into the position have more impact for the whole department. It becomes their responsibility to maintain good communication with the technicians, strong relationships with support staff, and theoretically should require less ‘managing’.

Check out some of the most popular websites in the world. According to Alexa Internet traffic rankings for North American sites, it goes Google, YouTube, Facebook, Wikipedia, Reddit, Yahoo!, Amazon, Twitter, and Instagram. You know about all of those websites and apps. When you browse to them, you know what to expect.

Of the top nine sites, only one is directly sales-related: Amazon. The rest of these trustworthy sites are based in social networking and internet services. That says something.

You’ll find opportunities to spend your money on each of the sites, of course, but their primary purpose, other than Amazon, is about connecting people with information and entertainment. In doing so, they’ve each built a steadfast reputation and earned your trust.

Why Do Dealerships Try a Different Approach?

After looking at online presences that have rocketed through the stratosphere with success, turn to your own dealership’s website. What does it offer your customers? For the vast majority, it’s a thinly-veiled effort to advertise the latest new model, ‘year-end clearances’, or an opportunity to book an appointment. All are important to a dealership’s success, but have you measured the results of these campaigns? Do they draw in new sales at all? Make a note to check on your dealership’s results.

To most customers (but not all), your website desensitizes them to a high-quality call to action when they’re ready to make their sales or service decision. It also gives the impression, correct or not, that the dealership cares more about sales than their customers or community.

Offer Value Through the Service Department

There’s no getting around the need to make sales, both of cars and in the service department. But what’s more important to a customer: finding a flashy deal on the website, or discovering why some services are required and how they’re done and quick access to vehicle listings?

Speaking to the service aspect, there’s nothing as powerful as video. Think about being a customer with only basic automotive knowledge. Someone tells you that the brake fluid needs to be changed - or the transmission fluid, power steering fluid, or coolant – and you’re supposed to give them the go-ahead. Being trained that the automotive industry is crooked and over-priced, customers have obvious reservations. But you can break down those walls by demonstrating on video why each service is important and how it’s done.

Video is a great way to introduce your service team too, giving a face to your dealership online. Share them on a YouTube channel as well. It shares an environment with real people, friendly faces, and connects the customer with your physical location. Video has been embraced by the sales department in some stores with good success, and the same can be true for service.

Ever browse a retailer’s website, completely awestruck by the professional appearance, a wide array of available products, and helpful content, and make the decision to pay them a visit? Only, when you arrive, it’s a bare-bones storefront with none of the same warm, welcoming appeal from their online presence?

Now flip that around. That’s how the service department works in nearly every dealership.

In the service drive, the customer lounge, and even in the hustle and bustle of the shop, there’s an emphasis on a good first impression…at least, in most stores. We try to give the customer the best experience possible, starting with a visual experience and then a service experience. That’s perfect for a customer that’s already come through your door because 94 percent of first impressions are made visually.

What about fence-sitting customers, or those who are looking for a new service department for their vehicle? In a huge swath of dealership websites, you’ll find parts and service specials and an appointment form. That’s it. It’s about as bland as plain white bread and about as nourishing. 38 percent of online customers will stop engaging with an unattractive website, and 88 percent will never return after a bad online experience. Talk about a great way to reject new customers, hey?

What Should the Service Department Look Like Online?

When customers browse online, a few questions come up:

• - First, does your website contain service-related pages or is it 99% sales?
• - Second, is your website visually captivating, or does it look like DOS coding from 1996?
• - Third, is it easy to navigate, or will a user throw their wireless mouse in frustration?
• - Last but not least, is there valuable information customers can consume online?

Before addressing the questions, there’s an overriding idea about mirroring the service department online that you need to grasp: the visual theme should be consistent. That means the customer should see the same color palette, building features, and cleanliness online as they see in person. It makes their first visit feel familiar.

Service Pages

Fixed operations generates a huge chunk of the revenue in a dealership, and that should be reflected in the online presence. Companies like Fixed Ops Digital create fixed-ops websites and pages that emphasize the importance of service. Individual service pages and more in-depth department information help put the service department at the forefront.

Visual Appeal

Does the dealership website look just like every other competitor’s website, or worse yet, is it lagging behind? Keep a modern theme running and have each service page complimented by high-quality images.

Easy Navigation

Test your website’s service department section. Do all the links work and is the information current? Are there any slow pages, and does it feel like it flows well? Especially try the appointment scheduler – it’s a sore spot for many customers who’d rather book online than call into your BDC.

Service Content

Wouldn’t it be easier to sell services if customers understood them better? For all your common service items, have a service page written and posted, potentially linked into the service menu, for customers to see the value in each service you provide.

It isn’t just about putting your best foot forward. It’s about consistency. Show customers what they can truly expect from the service department without becoming frustrated at the online experience.

Us versus them. In many dealership service departments, that’s the relationship between the service advisors and the technicians. Is shouldn’t be that way, and often the relationship starts out pretty good. But with livelihoods tied to productivity, it’s easy for a technician to feel dissociated and jaded.

Anyone with a finger on the fixed ops pulse has seen it. A tenacious technician brings a list of repairs and services to the advisor, looking forward to getting a jump on this paycheck’s hours. Instead of immediately calling the customer with the estimate, the technician (im)patiently waits while the advisor finishes up another task. Finally capturing the advisor’s attention, the technician presents the estimate with little enthusiasm in return. Instead of an immediate call, the advisor says, “Kick it out for now. I don’t think they’re going to all of that, if any. I’ll let you know what they say.” Dejected and frustrated, seeing cash slipping through their fingers, the technician goes onto the next job.

Now, imagine that scenario playing out time after time. That’s what I’ve seen (and as an advisor, I’ve done), and it doesn’t go well.

What to Do Better

It’s easy to say that it shouldn’t happen, but it does, and more often than you think. While it’s true that the advisor has a better read on the customer, it’s not their place to pass judgment or sluff off the estimate.

An advisor usually isn’t a trained technician, and like me, they may not have any formal education whatsoever. Often, you’ll find that the service advisor underappreciates the importance of certain items or has inaccurate perceptions of the value of certain repairs or services. I know I’ve been guilty of judging a customer by appearances or history, and I don’t think I’m alone in that.

There are a few things to do that can improve the relationship between service advisor and technician, and it only serves to boost the department wholly.

Call the Customer Immediately

Sounds simple enough, right? In the hustle and bustle of a busy service drive, squeaking in a two-minute call to sell an estimate can feel like an insurmountable challenge. The longer that estimate sits, though, the less likely it’s going to ever come to fruition. It’s easier to expect a customer’s approval when they hear, “It’s already on the hoist, we could get started right now,” rather than, “We’ll bring it back in shortly and I’ll call you when it’s ready.” It also saves the technician valuable minutes of downtime.

Ask for A ‘Spending Limit’

When the customer drops off their vehicle, especially if it’s for a problem, they’re looking to have it fixed. But they aren’t going to write you a blank check for the bill. They might give you a limit you can go up to without having to call ahead for approval, though.

I’ve used this with some success, but it must come with a clear approval. “We’ll get your brake squeal looked at and perform a multi-point inspection. If it’s $300/$500/$1,000 or less, should I get the technician started before I give you a call?” Some will appreciate the forward thinking, others will still want input before the tech gets going.

Can Technicians Call their Own Estimates?

In situations where an advisor simply can’t give their full attention, or the estimate is beyond their scope of knowledge, do you think it’s permissible for a technician to call the customer themselves? I believe it is, under certain conditions. If the technician is within the service advisor’s earshot or under a manager’s supervision, I can see it being helpful – perhaps better than a service advisor at times!

Obviously, it needs to be a technician with phone skills, and the advisor still needs to be involved to add lines to the work order. But it has the potential to bridge a gap that ticks off technicians at times.

This is just one aspect of the advisor-technician relationship, but it’s a big one in my view. Having these two groups work better together improves morale, boosts service sales, and might even help with employee retention.

The Christmas season is upon us, closely followed by New Years. It’s a magical time of the year that’s full of Christmas cheer, time spent with family and friends, and for many, a celebration of their faith. And let’s not forget the gifts!

But what exactly does Christmas have to do with service advisor selling skills?

This is the perfect time of the year to get back to the basics. There’s something that every service advisor does at some point; a trap they fall into. That flaw is in assuming how a customer’s visit will go. Here’s what I mean, from personal experience.

A customer pulls into the service drive to check in for their appointment. They’ve booked a basic service but they’re also overdue for other maintenance. Since it’s the week before Christmas, there’s a good chance they have a busy schedule to attend to. So, instead of making the additional service recommendations, you give it a pass.

That same customer’s vehicle is in the shop for its service. The technician submits an estimate for the same maintenance you didn’t pre-sell, as well as a few additional things. The brakes might be down to 15 percent, or the tires are worn down to 3/32nd. You tell the tech to just note it and you’ll get the customer to come back. After all, they’ve probably maxed out their Visa for Christmas gifts anyway.

Doing a Disservice

I can tell you from personal experience that, while you think you’re helping the customer out, you’re actually doing them a disservice. Here’s why.

Assuming Their Finances

You don’t know what a customer can and can’t afford. You just can’t know that unless you ask. All service advisors have fallen into the same trap before, some more often than others. Just because a vehicle has high mileage, it’s behind on maintenance, or the customer isn’t dressed in Gucci and Armani, it doesn’t mean they can’t afford the maintenance and repairs.

Assuming Their Priorities

Again, you can’t assume to know what a customer’s priorities might be. If you take a pass on selling maintenance, brakes, tires, or what have you, the customer isn’t given the opportunity to approve the sale. What if that vehicle owner is traveling two states over to visit family on icy roads but their tires aren’t in good condition to make the journey safely? What if their brakes don’t last throughout the family vacation and an emergency stop is required to take care of it?

Betraying Their Trust

Every customer that brings their vehicle to the service department expects the same thing: service they can trust. If you’ve made the decision solely to NOT present recommended maintenance or repairs, you’re breaking their trust. How can they expect honest, trustworthy service the next time they come? Are you going to make assumptions on their behalf again?

Let the Customer Decide

It’s not your vehicle, it’s not your finances, and it’s not your decision. As a service advisor, strive to offer the same customer service to each client you meet, every day. That means offering the customer the chance to buy tires from you, have you replace their brakes, and get your certified technician to perform their regularly scheduled maintenance.

Some customers are going to turn you down, and that’s part of the job. You won’t make every sale, whether that’s because of finances, time, priorities, or any other factor. But what you can do is show your customers that you have their interests in mind by offering the opportunity for them to say YES to you.

During this hectic season, it’s easy to go off the rails, take it easy, and stop selling properly. I encourage you to stick to the basics, leave your assumptions at the door, and stop overthinking the sale. Let your customers surprise you.

You learn a lot about yourself in the service drive. You quickly find out if you’re truly an extrovert or an introvert-in-disguise, you discover if you’re as hardworking as you think or if you’re lazy, and it takes no time at all to discover your motivations. As a service advisor, I believed I was going to make a difference; that I would be the one that worked with integrity (contrary to what I witnessed from others).

But very soon after starting the role of service advisor, I found my true motivator. One thing kept me in the service drive for years, and it was the paycheck.

Since I don’t think I’m a unique case, it’s safe to assume that getting a fat paycheck is a motivator for most service advisors, if not all. According to the Harvard Business Review, it’s competitive compensation that motivates 66 percent of the employees. I guess it isn’t rocket science that being financially rewarded for a job well done is what motivates most, especially for positions like service advisors that need a sales mentality.

But here’s a sobering statistic in stark contrast, and from the same HBR study. One in five high performing employees plans to leave their job in the next six months. For a medium to large service department with five service advisors, that means you should expect you’ll need to hire two service advisors per year.

The Cost of Turnover

We’ve talked about the cost of turnover on DrivingSales frequently. The true cost is hard to pin down but it’s at least $30,000 and up to $70,000 per employee. Yes, it sounds extreme but it’s true. Between unproductive training time and lost sales, it makes sense. So, looking at conservative numbers, the cost to replace two dissatisfied service advisors per year is $60,000 – probably more!

What You Should Do About It

If it sounds ridiculous to waste $60,000 and up on turnover for service advisors annually, that’s because it is. But you can do something about it, and it boils down to paying the position what it’s worth.

Service advisors perform one of the hardest roles in a dealership, dealing with angry and jaded customers, teaching customers about proper vehicle maintenance, training themselves in effective sales strategies, and often in a highly competitive, commission-based environment.

There’s one good way to keep them satisfied in their chosen career so they aren’t looking for greener pastures. Offer a pay plan that keeps their eyes in-house. It’s not as simple as adding a bonus to a paycheck – it has to be a reward for a job well done. Here are a few ideas.

• Change from a monthly commission structure to a rolling three-month commission structure. If it’s possible to eliminate droughts on the paycheck, you’ll have happier advisors, even if the peaks aren’t quite as high.
• Offer long-term CSI bonuses using achievable targets, not the lofty ones the OEMs set. This helps keep high customer service at the forefront.
• Provide opportunities for spontaneous earnings in the form of spiffs. They’re a challenge that can kick the achiever into high gear, especially when it seems to be a slow time in the store.
• Or, opt to simply add to the base pay or tack an extra few points to the commission structure. That works too.

The Worst Thing You Can Do

If your service advisors are consistently hitting their bonus levels and their paychecks seem inordinately high, DO NOT CHANGE THE MINIMUM REQUIREMENTS! More than once in my career, after figuring out how to do my job well, the pay structure was changed. At one point, it was twice in one year because our store was at the top of our game. The minimums were upped. All it does is make it harder to take home a decent paycheck and tick off your advisors. That’s why a service advisor will look to leave their job – they can’t trust their pay structure will stay the same when they’re doing well.

If you’ve never been a service advisor or it’s been a long time since you’ve done it, hang out in the service drive for a while. See what they do, day in and day out. It’s a career deserving of great rewards. Make sure your advisors know they are appreciated where they’ll feel it the most – on their paychecks.  

December is in full swing, hopefully off to a strong start. In the blink of an eye, it’s going to be New Year’s, and a blank slate will be in front of you for 2019. A fresh start can be exactly what you need if 2018 wasn’t very kind to you in the service department. Or, it can be daunting if you’re expected to do more than you did in the past twelve months.

Yet, looking at the news, it appears that the automotive sales could take another blow. GM plant closures, slumping passenger car sales, and disappearing sales incentives could put a damper on car sales in the United States. It appears that, once again, there’s a reason it’s called fixed ops: you’ll be relied upon to carry your dealership through 2019.

What can your service department do differently or better in the new year? When you flip pages on the calendar, so to speak, how can you start 2019 strong to buoy your store and see stronger results than this year? Here are three ideas.

Expand Your Target Market

There’s a radius around your dealership where your customers come from primarily. Depending on your location, that could be five miles, ten miles, or even 20 miles or more. All your marketing is targeted at these people, but what about those who are just outside that radius?

Set up digital marketing campaigns that stretch your target market by just a little. Perhaps it’s an extra mile or two in all directions, maybe it’s a bit more. If your in-store strategy is working well already, all you need to do is add a few more customers to grow your service department’s earnings.

Analyze your Pricing Strategy

Compare your service department’s menu item pricing with other dealerships and independents nearby. You’re looking for two things: menu items that are over-priced and those that are under-priced. For over-priced items, the objective is obviously to lower them enough to be competitive, attracting more customers for that service. For items that you’re charging less than average, it’s time to bump up the pricing. Remember, you don’t have to be the lowest price on the block. You just need to service the customer’s vehicle better than the rest.

Emphasize Exploratory Services

There are certain service items that could and should be used better by many service departments. There are often undiscovered issues on a customer’s vehicle simply because their service visit did not explore that far. For that reason, encourage your team to emphasize services that look deeper into a customer’s vehicle than just basic maintenance. It’s multi-point inspections, wheel alignments, and even the service drive walkaround that do the trick.

I hate to use the word upselling – it sounds derogatory, like you’re selling something that’s not necessary. What you’re doing is helping the customer keep their vehicle in top shape by tackling issues before they become a problem. These are necessary services and repairs that the customer simply needs to be aware of. And once they are, it’s an opportunity to capture the business from them today or in the near future.

The new year is rolling around very soon, and these strategies are nothing new and groundbreaking. They’re just solid, everyday tools you can use to optimize your dealership’s service department performance. And if there are dips in car sales like the analysts predict, it’s going to be more important than ever to employ these tools.