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Mike Gorun

Mike Gorun Managing Partner/CEO

Exclusive Blog Posts

Keeping Up with the Joneses in Quick Lube

Keeping Up with the Joneses in Quick Lube

More than half of all sales customers will abandon your dealership’s service department in the first year. It’s a widely varying statistic &nda…

It Has Never Been Easier To Be Average

It Has Never Been Easier To Be Average

It has never been easier to be average. This post was written by Jay Acunzo, who will be speaking at the upcoming DrivingSales Executive Summit in Octob…

Lose a Sale, Save a Life: When a Test Drive Tests the Legal DUI Limit at Car Dealerships

Lose a Sale, Save a Life: When a Test Drive Tests the Legal DUI Limit at Car Dealerships

Seasoned car dealers and sales professionals are true masters of relationship marketing.  A vehicle purchase is an important decision for consumers, a…

7 Attitude Tips to help you Succeed in the Car Business

7 Attitude Tips to help you Succeed in the Car Business

I have found that one of the greatest traits of all the best salespeople to ever sell is a positive attitude. I experience it first hand in my own life, …

Industry Insider Alan Ram Passes Away

Industry Insider Alan Ram Passes Away

We here at DrivingSales offer our condolences to the families of those involved. Alan Ram was an industry insider who will be missed by many. Alan Ram, …

Make Your Fixed Ops Variable. 6 Tips to Increase Your Service Revenue

When we hear the term “Fixed Ops” we think of something that cannot be changed. The concept of Fixed Ops is that they depend on the result of the variable operations within a dealership. The goal is that as car sales rise, so will service revenue. However, your service revenue can move up the charts without having to depend on your sales. Here’s how:

By marketing your service department to existing customers AND new prospects you can increase customer retention and gain new customers through what might have been a lost sale through your CRM.

Here are 6 Tips to make your fixed ops not so fixed:

  1. Offer a Loyalty Rewards Program. Reward Members Spend 11% More Annually On Service When Participating In A Rewards Program. By rewarding your customers for returning, you let them know that they are valuable and they feel better about the fact that they are getting a discount for returning. 98% Of Customers Who Join A Rewards Program Provide An Email Address. What better way to build your email database for marketing specials in the future?

 

  1. Offer a Pre-Paid Maintenance Program. By offering your customers the option of a pre-paid maintenance plan you take away the anxiety of the service bill and gain on average, a 35% Service visit increase.

 

  1. Offer Monthly Specials. When a customer comes in for service and finds out that they need a timing belt and all fluids replaced, they may have a semi-meltdown at your desk. But if you have a special coming up the next month that will offer them some relief, they will be more likely to return for a major service.

 

  1. Send Service Reminders to Your Customer Base. Set up automated messages that go out to your service customers who have not been in for 3, 6 and 9 months. Be sure that you are not emailing the same customer multiple times. Also, track what emails are working and which ones need revision. It is important that anytime that you market your company, you track the results.

 

  1. Send monthly special emails. Send out monthly specials to your service customers AND Sales prospects within your CRM. Most sales leads purchase AFTER 60 days, which means you have time to build a strong relationship with them. By converting a slow buyer to a service customer you will build a relationship of trust and secure a sale in the future.

 

  1. Coupons. Women make up 73% of service customers. We all know that women love coupons. Some women will buy something JUST because they have a coupon. So, give your customers a 10% off coupon when they spend a certain amount to use on their next visit and be sure to include coupons on your service page and in all of your email communications.

By taking the time to strategize a marketing plan for each month of the year, you can optimize your service revenue and continue to grow your customer base.

What programs have you implemented to help grow your fixed ops revenue?

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