Written by Kelleri Riegel, Sr. Product Manager – AutoPoint Marketing
May 6, 2021
With service intervals getting longer and longer, you can’t afford to miss out on critical opportunities to generate service revenue! Today, dealers are losing up to 78% of service revenue on three- to six-year-old cars and up to 92% of service revenue on cars older than seven years. It’s time to start winning these customers back.
Here are 3 reasons why you’re losing service business:
- Prior to COVID-19, service convenience was already a top priority for vehicle owners. Post COVID, the convenience economy has rapidly escalated, and now it’s not just a desire for your drivers – it’s a requirement. It’s not enough to simply have an appointment time and stick to it. Drivers need to be able to continue their lives while their vehicle is being serviced and also feel safe doing so.
- Win back customers who are defecting due to convenience. Ensure you offer safe, clean, socially distanced waiting rooms with reliable internet for remote workers, and pick up and delivery services for commuters.
- Many customers defect from the dealership to the aftermarket because they simply do not trust the dealership to provide accurate and affordable service. There are many reasons why a customer wouldn’t trust you, including an unpleasant purchasing experience or a previous service visit where they felt taken advantage of.
- Win back skeptical drivers by making an authentic connection that shows you are putting their needs first, and reward their decision-making by sending offers to your most loyal customers. Make sure that they see a familiar face every time they come in for a service visit and send regular communications to customers to let them know you are there – even when it’s not time for service.
- There is an industry-wide perception that dealerships will overcharge drivers on service transactions or that they will attempt to add on services that aren’t required. This is widely due to past experience, inaccurate marketing, or misperception of the value of dealership services.
- Win back price-sensitive drivers by providing transparency into the pricing for services upfront. Know your competitor prices and if you’re priced higher, make sure you communicate the value difference of the service you provide. High-quality parts, factory recommended maintenance, and mechanical expertise is strong differentiators if you correctly communicate value.
Loyalty is important, and not just to service revenue. A customer that routinely services with you is 70% more likely to buy another car from your dealership vs. just 20% of customers that don’t. Putting a strong focus on customer satisfaction in the service lane is the best way to continue sales volume in the front of the house.