Community involvement has always shown a strong correlation with successful businesses. A study published in Strategic Management Journal found that philanthropy was associated with increased sales growth. A 2018 report by Nielsen Global said 55% of customers were willing to spend more at companies they shared social values with. And data from Forbes showed that nearly 70% of Millennials consider company values when making a purchase, much higher than average. In short, your values influence customer purchases.

So why does giving back help your bottom line? Several reasons. First, you’re building new connections. People who aren’t currently in the market for a new vehicle will see your dealership associated with something they care about. That sticks in their memory, and they’re more likely to think of you when it’s time for service or a new vehicle purchase. Second, it appeals to customers’ emotions. By seeing that you’re part of the community, they’ll associate your name with positivity and helping others. It’s also a great source of free publicity. And an overlooked aspect of community involvement is the positive impact it has on your employees. Community involvement is associated with lower turnover and a more productive staff. In fact, a recent study found that 86% of Millennials would consider taking a pay cut to work for a company whose values matched their own—it’s that important.

Your Playbook on Giving Back

Here are eight great ways your dealership can help your community, outside of donating money:

1. Host an event—Dealerships often have large, open spaces that are perfect for events, both indoors and out. Not only does that associate you with the cause you’re supporting, it gets people walking around your dealership, where your salespeople can strike up low-pressure conversations.

2. Make a donation as part of a purchase—Every winter, Subaru donates to one of several charities for every vehicle they sell. Each customer gets to choose where the donation for their purchase goes! For your store, consider a monetary donation or a donation of a product. For example, you can donate a backpack full of school supplies to a local school with every brake service.

3. Sponsor a youth sports team—Getting involved in youth sports is a great way to help out the community. JM Lexus in south Florida supports Goldie’s Gang, a sports nonprofit dedicated to helping children “improve their skills and learn more about themselves in a positive environment.” It’s great advertising and it keeps the cost of youth sports low, letting even more kids get involved. Hosting a little league team is another great avenue as well. Your store can even provide the team’s gear and get free advertising because your name will be on their uniforms.

4. Volunteer your time—Get your employees together to volunteer their time and efforts. This helps with team building as well as building up the community. Food pantries need help stocking and distributing food. Soup kitchens need help preparing and serving food. Parks, beaches, and highways need trash picked up.

5. Use the skills you already have—Your employees have a wide range of talents that can benefit your community! Your Service Technicians and Advisors can hold basic car care seminars, like how to change a tire, jump a dead battery, or check oil levels. Many dealerships provide dinner during these seminars and have technicians available to answer any questions. Employees who are certified as Child Passenger Safety technicians can make sure car seats are installed properly. The list of possibilities is endless.

6. Organize transport—Most dealerships have a fleet of loaner vehicles or used vehicles at their disposal. These vehicles can be used to transport people and goods for local charities. All the food in the world can’t help the hungry if it doesn’t get to those who need it.

7. Barbeque—Have a big cookout at your dealership (or rent a portable smoker for the day) and provide food for the community. Whether people are at your store for sales, service, or just happen to be walking by, they’re always happier on a full stomach—and you’ll be giving back to your community.

8. Encourage employees—An employee match program can help your employees with the charitable gifts they already make. You’ll be giving back to your community and strengthening the connection your employees feel with your organization. Ask employees for ideas about local charities, events, and causes they feel strongly about as potential places to help. If your employees are passionate about a cause, the community at large is, too.

And this is just a short list—your dealership can help the community in dozens of ways. One thing to keep in mind when giving back: you’ve got to go through the proper channels. Make sure your events and charitable donations have the necessary approvals from officials. Also, make sure your donations are properly documented and filed for tax purposes.

Get the Word Out

When you’re planning an event or starting a new initiative, it’s important to let the community know about what you’re doing. Promote your charity through email, mail, and social campaigns to your current and prospective customers to get groundswell. Your automotive marketing provider should be ready to create professional, engaging custom campaigns for you. That way, you’ll attract more attention, both for your dealership and for the charity.

Engaging monthly newsletters are another way to promote charitable contributions, both before the event and after. You can feature an article ahead of time to generate interest and boost attendance. Talk up the charity you’re supporting and the fun things that attendees can expect at your event, such as food, live music, or raffles. And then after, your newsletter could talk about the success of the event, like how much money was raised or how many pets were adopted. This acknowledges the efforts of everyone involved and shows the rest of the community your commitment. For the follow-up, be sure to include pictures from the event. A best practice here is to be factual about your good deeds—you don’t want to sound like you’re bragging.

Finally, promote your efforts on your website, social accounts, and in-store. You can do this by creating banner ads online and banners to hang in your dealership. Colorful t-shirts are attention-grabbers and help build camaraderie amongst your employees. You’ll attract more customers and more charitable partnerships, and you’ll extend your reach even farther.

Be Part of Something Bigger

When customers see you are committed to the community—and not just looking to turn a profit—they’ll gravitate toward your dealership. Giving back drives both first-time customer traffic and customer retention. Your staff will be more engaged and happier to work for a company that’s invested in their community. And you’ll be helping those in need. That’s a win-win-win situation.

With the auto industry facing a shortage of technicians, it’s important to do what we can to attract young technicians and keep them. After all, when the front end of the business slows down, it’s the back end that can keep your store afloat and profitable. But there are two main problems with getting young professionals into the automotive industry: image and barrier to entry. But with some dedicated work, you can overcome these issues and bring an influx of new, talented technicians into your dealership—starting with two simple steps.

Step One: Show Off a Little

One of the deterrents for young people entering the profession of Service Technician is the image they have in their mind of what techs are and what they do. For years, the media has portrayed Service Technicians as uneducated and covered in grease. Similarly, movies and TV shows portray service bays as oily, dirty places for old-timers making just enough to scrape by.

Pay is an easy one to dispute: according to the Bureau of Labor Statistics, Automotive Service Technicians working at dealerships earned $44,280 per year, which can also be supplemented with overtime work. Plus, Service Technician positions are increasing at about the same rate as all occupations, and job prospects looking forward are very promising.

So, it’s up to us to change that narrative, because modern service bays are now more advanced than ever. Equipped with the right digital tools to streamline service, being an auto tech in the 21st century sounds a lot like being an engineer on Star Trek (minus the red shirts). And with all the new safety features being added to vehicles, like lane assist and blind spot warnings, vehicles are getting more technologically-advanced, which means more opportunities for your store. But all this being said, technical know-how and problem-solving skills are absolutely crucial now in the Service Department, and these are areas you can emphasize to draw in younger technicians.

Having the proper equipment can help make your service lane more appealing to younger people and the next generation of techs as well. Is your Service Department still using paper MPIs? Switching to digital not only makes the process faster and more user-friendly, using the latest technology can help change that antiquated image to one that’s sleek and tech-savvy.

There’s been a recent push to upgrade amenities for Service Technicians, too. Providing your techs with a nicer locker room or lounge with showers, beverages, snacks, etc. can go a long way toward improving conditions. Some have even installed big screen TVs and video game consoles for techs to use during breaks. And since we all know that word of mouth is the most trusted form of advertising, if you cater to your techs the same way you cater to your customers, they’ll be more likely to talk up the profession.

Step Two: Make Onboarding Easy

Over the past century, vehicle engines have become more complicated, meaning there’s an increasingly higher barrier to entry for new technicians. On top of that, learning all the computer/program skills needed for the Service Technician job just makes it that much more complex.

This is why it’s necessary to implement a comprehensive, user-friendly software platform to minimize the learning curve. By making that aspect of the technician job as simple as possible, your new hires can concentrate on what they specialize in: diagnosing vehicle problems and fixing them. And by using fully integrated software products, your new hires should have a much easier time learning the back end of your business, allowing them to focus on their actual jobs.

The Bottom Line

Changing the image of what a Service Technician does and simplifying onboarding are the most important aspects of recruiting a younger generation of technicians. But overcoming the tech shortage takes more than accurately promoting the role—here are some other steps you can take toward this end:

1. Keep a clean, well-organized shop

2. Contact local schools about participating in career day or job fairs

3. Maintain an engaging social media presence

4. Provide amenities for techs

Work to obtain—and maintain—these goals, and you’re already well on your way to helping change the image of a Service Technician, which is crucial to encouraging people to consider it as a career. Since the automotive industry is still going strong, it’s important to do what we can to ensure we have adequate staffing to meet the needs of our customers.

Price is often a major factor in the purchase of any service or product. But it’s important to separate perceived price and received value. For example, $5 for a bottle of water might seem expensive, but that’s a deal if you’re walking through a desert. And there’s nothing blatantly wrong with paying more for quality (or perceived quality)––just look at businesses like Apple®, Nordstrom, and Jaguar.

However, this has given rise to the idea that lower prices mean lower quality, and discounts such as coupons diminish products and services even more. While it’s true that some people might think that way, there’s no evidence supporting this. In fact, coupons add value for some customers, bringing them back to your store. And coupons aren’t just for those struggling to make ends meet: 90% of consumers use coupons in some way. Whether you want to offer coupons or not, it’s important to approach your Service Department’s discounts and value-adds strategically.

How to use coupons effectively
There are several factors that come into play in creating effective coupons, and it can get overwhelming. Here’s a short list of coupon best practices to drive business.

Be clear
The coupon should specify what it can (and can’t) be used for. Include the original price to show how significant the discount is. And try to use flat-dollar discounts rather than percent-off discounts when possible––they’re easier for customers to understand. Be sure to include any usage disclaimers such as “Limit: one per customer” and the expiration date if there is one.

Add value without lowering cost
Informational coupons describing unique offerings are very effective at driving customer traffic. Also, coupons offering something free with purchase, such as a small gift, a car wash and vacuum, or other additional service will allow you to entice customers without discounting your current products.

Plan ahead
Save your best coupon offers for your slowest times. And if you’re targeting a special event, season, or holiday, make sure you send your coupons out early enough that they’re usable, but not so early that they get forgotten.

Target specific customers
Sending everybody the same offer doesn’t do your business any favors. Segment your customer lists to reach the right people with the right message. Usually it’s wise to offer larger discounts to prospective customers to draw them in, and smaller discounts to your regular customers to keep them coming back.

Keep a couple for a rainy day
Ensure you have coupons readily available for your best customers—or offer them in instances where a coupon makes a difference between them completing a needed service or having to wait. It shows your customers that you’re dedicated to their experience, and helping them takes priority over making money.

These tips will help jumpstart your coupon marketing strategy. Of course, it helps to have a marketing ally you can count on to assist you.

How to drive traffic without using coupons
In a recent AutoLoop study, we discovered that the biggest reasons customers avoid going to the dealer for service were related to comfort and cost. To overcome the price hurdle, your store could offer a price match guarantee or publish customer price comparisons on your website. This allows consumers to compare pricing before their appointments and avoid sticker shock when they arrive. If you’re not the lowest price in your area, it’s doubly important to explain the value your Service Department provides customers that they won’t get elsewhere. Tackle the comfort sticking point by highlighting standout perks such as OEM-trained service technicians, a guaranteed quick transaction time, reliable shuttle service, or a well-appointed waiting room. Calling out these value-adds shows customers that, while your shop might cost more, it’s well worth it, even if it isn’t the Ritz.

Finally, customers want options. Providing customers with good/better/best menus for common services or parts can go a long way toward earning their returning business. Ever visited a restaurant where the host forgot to give you menus? It’s hard to know where to start without knowing what the restaurant offers. Immediately making visitors aware of the services and pricing you offer is one of the most basic conveniences you can provide. And it’s beneficial for you, too: we’ve found that customers who are given several pricing choices and service levels are more likely to take your recommendations and encourage more ROs. That’s why it’s essential to promote these menus, both when customers schedule service and when they visit.

When in doubt, do what makes sense for you
Whether coupons are right for your store is a question only you can answer. Whatever you decide is right for your Service Department, there are a variety of ways you can draw customers to your store that will enhance their experience and drive more business.

When my friend, Erica* took her vehicle to the dealer recently, the needed repairs were performed quickly and competently. Yet, when the CSI survey came, she rated her overall experience three stars: “just okay.” Why not five stars: “excellent”? Well, because frankly, they didn’t earn it. This was the result of a couple very significant––and avoidable––hassles. For one, transportation both to and from the dealership was mishandled. Then, at the end of the visit, the advisor insisted Erica rate the experience five stars on the forthcoming survey. Here is her story, along with my notes on what could have been done to earn those five stars.

Three-star experience: inefficient check-in, mishandled transportation options
Erica called ahead to book her service, but when she arrived in the service bay, she had to reiterate the details of what was needed. And unfortunately, the most crucial information lost in the shuffle was her need to get to work by 9:00am. The staff member who scheduled Erica’s service over the phone declined to offer her the loaner she requested, and instead assured her that the shuttle would get her to work on time. However, after arriving for her appointment a few minutes early, she was told the shuttle had already left for the morning.

This put Erica in a tough position—and rather than her advisor acknowledging the mistake, he offered her coffee and donuts in the service lounge and suggested she wait a couple of hours for her car to be done. Though she again made it clear that she couldn’t wait, her frustration was brushed off, and she was offered no alternative. At this point, Erica decided to call a Lyft so she wouldn’t be late to work.

After informing her advisor that she had called a ride, Erica was prompted to sign the RO, and noticed her email address had been recorded incorrectly. Lucky for the dealership, she noticed and corrected it, otherwise she could have been a lost lead. So, a quick signature and $20 of her own money later, she arrived at work.

Five-star fix: more attention to detail, going the extra mile
What could have been done before and during check-in to make this a 5-star experience rather than a hassle? Let’s start with the scheduling process: Erica should have received a loaner when she requested one. Regardless of why she did not receive one, she should have at least been accommodated by the shuttle as promised. Having the proper scheduler that can delegate transportation options for your customers is key to ensuring their requests haven’t been forgotten—and they’ve been accounted for.

Better yet, her dealership could have arranged and paid for her Lyft (or at least reimbursed her for it). More and more retailers are offering options like this through service like Red Cap Valet. Doing so lessens the need for loaners and takes some of the responsibility away from the dealer. In addition, a digital check-in tool would have made the process easier for both the advisor and the customer. The advisor would be able to check Erica in right away, document pre-existing vehicle conditions, and even offer service menu options on the spot. But most importantly, staff would be able to accommodate the customer in a way that makes vehicle drop-off simple and painless.

Three-star experience: delayed pickup
After talking to the advisor over the phone and agreeing to an added repair, Erica was told her vehicle would be ready at 2:00pm. A short while later, the shuttle driver called and confirmed a 2:00pm pickup. Yet, at 2:15, Erica received a call from the driver saying he’d be at least another 30 minutes due to weather issues (though it was a pleasant, 75-degree Florida day). Irritation growing, Erica mentioned she would take another Lyft back to the dealership to pick up her vehicle. The driver assured her he’d be there sooner. Erica gave in, and waited 40 minutes for pick-up from the shuttle.

Five-star fix: put your customer’s needs above your own
Of course, the fix here is directly related to the recommendations above: give the customer transportation options and manage their choice accordingly, and be sure to have the right check-in tool to access appointment details or offer other necessary services. If Erica had the loaner she initially requested or if the dealer used a valet service or another customer-focused option, it would have been a game-changer. Instead of getting to work late and frustrated, she would’ve arrived on time and happy––and most likely, a 5-star rating would’ve been in the bag.

Three-star experience: the advisor’s uncomfortable request 
Once Erica finally arrived back at the dealership for checkout, her experience took another unexpected turn. While going over her RO, her advisor instructed her to leave a five-star rating. He said something to the effect of, “Now make sure to leave me five stars. The way the survey is set up, I’ll get in trouble if you leave anything less. If you have any feedback, you can leave those in the comments area and it won’t affect my score.”

Five-star fix: earn your CSI rating
Now, we know that transparency is one of the keys to growing customer trust in a dealership. However, the advisor was perhaps a little too transparent and presumptuous in his request. Considering the experience Erica had, I was surprised to hear the advisor had suggested a five-star rating in the first place. Asking the customer to give their dealership a high survey rating (“coaching”) is more than frowned upon, it can bring consequences from the OEM. So, rather than guide the conversation in a direction that only benefitted them, the advisor should have focused on making up for the hassles Erica endured—be it by offering perks/discounts towards her next service, or at the very least, an apology. Instead, she was left with a poor impression of the advisor, and the dealership as a whole.

There’s a lesson to be learned here: five-star experiences are earned, not demanded. And providing one to each and every customer can be as simple as listening to their unique set of circumstances and going the extra mile to provide what they need. J.D Power found that the percentage of customers who feel their service advisor provides helpful advice is 70 points higher when the advisor was focused on them and their needs during the visit. So, you’d be wise to make this your goal. That way, you’ll give customers the experience they expect and achieve the CSI scores—and customer loyalty—you’re looking for.

Sales profit margins are getting smaller, and dealerships are looking to service as the profit-making aspect of their business. And there’s one area of service that’s particularly overlooked, especially for how much revenue it can generate: tires.

The good news is that your customers already have a relationship with your store—and they want to build on that. But unfortunately, it seems like there’s an independent tire store on every corner these days, not to mention big name companies like Amazon staking their claim on the tire industry. Here’s how you can fight back and claim your piece of the $30 billion tire industry pie.

Tire-Specific Marketing

Dealerships see their regular customers, at least for oil changes, every 3,000-7,000 miles. And it’s pretty simple to anticipate when customers might need new tires (besides actually inspecting them). By sending them specific tire offers in anticipation of their need, you can get them to come to you, rather than going to an independent shop. This also helps you avoid sticker shock; customers are more likely to purchase tires if they are aware of the need first, rather than having an advisor tack it on the day of an oil change.

Also, your store can implement tire-specific declined service opcodes, allowing for targeted follow-up by a Service Advisor or through a marketing company. In fact, a good marketing company can target customers with specific offers based on certain opcodes for you. There are many reasons why a customer may decline new tires, but if you don’t pursue them—and do so at the right time—you’ll likely miss out on their business.

Good, Better, Best

Customers like having two things when they’re shopping: guidance from a trusted source and options. However, while car dealerships are seen as the authorities in vehicle sales, tire stores are seen as the authorities in tires. The customer thinks, “If all they do is tires, they must be tire experts.”

That’s why you’ve got to change the customer’s perception of the dealership. Establishing your Service Advisors and technicians as tire experts in addition to maintenance experts can help generate more customer traffic. Start by getting your Service and Parts Departments additional training. Your OEM tire representative should be able to help you set this up. With a larger knowledge base to draw from, your staff will be able to make better suggestions.

When you advertise your tires, it’s not enough to just say “we’ve got your tires.” Throwing options at customers can overwhelm them and push them away. Yet giving customers “Good, Better, Best” options not only positions your dealership as the tire experts, it also demonstrates your fully-stocked Parts Department. Plus, helping the customer understand tire pricing generates trust, which drives traffic and revenue.

Competitive Pricing and Added Value

The last hurdle for dealerships to overcome is the notion that independent retailers are less expensive than dealerships. The main way that you can mitigate this difference, though, is by promoting the value customers receive by visiting your store instead. If you’ve established your team as tire experts, you’re well on your way to adding that value. Many dealerships also add free mounting and balancing, road hazard warranties, and other perks along with the sale. Often, independent tire stores simply pocket the customer’s cash.

But even if you are the cheapest tire store around, there’s still the stigma that independent stores are always cheaper. Change that mentality by advertising your competitors’ prices alongside yours. It might sound crazy at first, but showing that your store is the lowest (or even second or third) converts a surprising number of customers because they already have a relationship with you, you’ve added additional value to their purchase, and you have competitive prices. It’s also showing that your dealership is transparent about pricing, which is a major factor in customer purchases.

Where the Rubber Meets the Road

In this quest to capture and keep your portion of the tire business, your best ally is a strong, knowledgeable marketing company, someone who knows the automotive industry inside and out. They’ll be able to seamlessly integrate with your DMS to target those opcodes, anticipate customer needs, and provide professional marketing exactly when it will draw in the most customers. Because if your customers aren’t coming back for tires, your Service Department—and ultimately your dealership—is missing out on significant revenue.

Director of Professional Services Stephen Coambes explains when CSI/SSI starts in the customer experience in this video blog.