Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Jeff Giere

Jeff Giere Strategy Analyst

Exclusive Blog Posts

Why So Many Options If You Don't Pay Attention to The Source?

Why So Many Options If You Don't Pay Attention to The Source?

Is there a lot of thought that goes into deciding which call to actions to offer on the VDP’s? Or is it a constant free for all, or worse an aftertho…

3 Reasons Why Loyalty to Technology is Greater than Loyalty to Cars

3 Reasons Why Loyalty to Technology is Greater than Loyalty to Cars

Despite efforts to chase down loyalty in the automotive industry -  the path to a repeat purchase is an even tougher feat. Here are three reasons why …

Dispel Fears About the Auto Industry with Your Recruiting

Dispel Fears About the Auto Industry with Your Recruiting

If you were to ask most sales managers what customers don’t like about the automotive industry when shopping for a vehicle? They usually say, “…

How is Your 'Why Buy Here' Messaging?

How is Your 'Why Buy Here' Messaging?

What type of 'Why Buy Here' messaging are you using to drive in customers? Watch the video to learn more.   …

Give Customers a Refreshing, Old Ad Message

Give Customers a Refreshing, Old Ad Message

If you’re the average dealer who’s trying to grow business, the fixed operations departments are one of the best bets you can make. Once you br…

Service Marketing: To Reach Younger Drivers, Go Beyond Recommendations

Though every vehicle today comes with a recommended maintenance schedule from the manufacturer, many consumers don’t follow them. What’s worse, some may not even know they exist! We recently surveyed 1,000 auto dealer customers and found that younger generations are less likely to follow manufacturer recommendations than their older counterparts. While 61% of Baby Boomers claim to have fulfilled all recommended maintenance in the last year, only 37% of Millennials and 18% of Gen Z followed all the manufacturer’s recommendations.

                

A 12-month study of purchase-to-service rates across a national sample of 300 auto dealers tells a similar story: younger generations are less loyal to the dealer after purchase than older generations. Only 49% of Millennials return for service within a year after buying a car, and that decreases further with Gen Z. Driving this trend is a mistrust of manufacturer recommendations and an inability to afford the cost of recommended services. To combat this, dealers should find ways to earn the trust of younger clientele and remain competitive with their service incentives.

                  

What’s at stake if dealers rely solely on the manufacturer’s recommended service schedule (and by the same token, marketing cadence)? Significant service business––potentially thousands of dollars per customer––lost. To give today’s customers the experience they’re looking for, dealers should use an engagement-focused marketing approach with multiple touchpoints for every service opportunity throughout the customer lifecycle.

An omni-channel service marketing strategy allows dealers to begin the conversation with their customers well before the first recommended service in order to build rapport and trust. Additionally, multiple reminder touchpoints leading up to their recommended service due date give dealers an opportunity to generate appointments early, without advertised discounts. They can then offer incentives to more cost-concerned customers who are unlikely to come back for service otherwise.

The numbers are clear: manufacturer recommendations alone won’t keep Millennials and Gen Z coming back. Instead, dealers should focus on earning their loyalty by first earning their trust. And building meaningful relationships through consistent, high-engagement marketing is a great place to start.

 Unlock all of the community & features  Join Now