Fixed Ops
3 Tips for Better Customer Retention in Your Service Department!
Keeping Customers Isn't Always Straight Forward, so Here's Some Tips That Can Help!
Looking To Improve Your Fixed Ops And Increase Its Profitability And Customer Retention? Here’s Some Tips On How To Go About That!
Be honest with the customer!
The last thing you want to do is push unnecessary services on the customer. They’re relying on you to be the expert on maintaining their vehicle, so breaking the trust through pushing items they don't need is a bad practice and will drive the customer away.
The best practice is honesty always. This also means you may have to break the news about critical repair items that the customer may not think they need, but being upfront and honest will help you develop a healthy relationship with them and keep them coming back to you for the car maintenance!
Cars are lasting longer, so more services are necessary!
Cars are now on the road for far longer periods of time and are far more reliable than they were previously. You might think that this would reduce fixed-ops profitability, yet the opposite is true.
Because individuals are keeping their cars longer, more maintenance is required to keep them running. Because of these variables, people aren't buying automobiles as frequently as they used to, resulting in an increase in the average age of vehicles on the road to 11.6 years and an increase in the length of ownership from 4.3 to 6.5 years. You may be asking how this situation could be beneficial? Glad you asked! To keep their cars on the road they need to maintain their vehicles more than ever, so increasing your fixed ops marketing will help drive more customers to you, or help reactivate customers that either defected or haven't engaged with you store for a period of time.Want to retain more customers? It starts with retaining your employees first!
Just like any industry, if people have a relationship with the individual taking care of them, they’re more likely to keep coming back. Retaining your employees is crucial so they have time to build a relationship with your customers and help keep them coming back to you for their maintenance needs. Also, fostering good relationships within your team is always a winning strategy, it will show in their work and willingness to go above and beyond to make sure you guys are winning day in and day out. If an employee leaves, the customer may defect because they no longer have a relationship with your team, so always make sure your team is happy, because that in the long term will make your customers happy, and yourself happy as well!
Low Inventory? Leverage Trade-In Incentives and Service Lane Instant Appraisals!
Lets face it, inventory is hard to come by since the start of the COVID-19 Pandemic. Chip shortages and lockdowns have caused dealers to rethink how they acquire vehicles, and how they do business overall. With rapid changes, comes rapid adaption, and what would once be laughed at is now a solid way to get more trade-ins to supplement your inventory. Here's a direct quote from Automotive News article on fixed ops, and our friends over at Digital Air Strike:
"We're on the cusp of an advertising revolution in fixed ops," says Alexi Venneri, co-founder and CEO of Digital Air Strike. The group provides digital marketing services to 5,000 dealership clients.
"Dealerships have increased their [fixed ops] advertising budgets and have lots of new tools in their toolboxes," she adds, referring to text campaigns and ads on streaming video platforms. "That's one good outcome from COVID … dealerships have learned to embrace that side of their business."
But it's not about pushing for more service just for service's sake. With vehicle inventories so low, fixed ops departments now also serve as a valuable conduit for snagging trade-ins by offering appraisals to customers, particularly those whose leases or warranties are close to expiration, she notes.
"They're holistically leveraging their DMS data and then using digital marketing to promote trade-ins," Venneri told Fixed Ops Journal."
To make the most use of this, make sure to offer Instant Appraisals when your customer pulls into your Service Lane. It's a fantastic tool that not only encourages your customer to trade in, but also educates them on the value of their vehicle, which can be quite beneficial for both sides, even if they initially decline your trade-in offer. Used car values will eventually fall when the market returns to normalcy, so informing your customer that they'll get the most bang for their buck now rather than later is also a smart strategy to encourage action sooner!
Slide Into Your Customers Inbox!
Yep. You heard me. Text your customer, seriously! Texting your customer is a great way to get your customers attention. According to a Digital Air Strike study of 2,046 auto buyers and 2,784 service customers who purchased or maintained a vehicle in the preceding year, 60 percent prefer online/text communications.
Think about how often you're on your phone texting, now think about the exposure this could drive your fixed ops. Send incentives, deals/coupons, or even just check in with them and make sure their car is in good shape.
Here's a quote from our friend Chris Justice over at Fixed Ops Magazine:
“Dealerships that have switched to text and mobile pay solutions are experiencing faster Service approvals and faster RO closes. Money enters the dealership accounts faster, thus making it easier to focus on the bottom line throughout operations.”
Need some more tips on how to improve your fixed ops, or have some questions on how we can help you achieve your goals? Reach out to us below! Also make sure to subscribe to our newsletter here!
sources:
Diemert, N., 2022. Fixed Ops Magazine: Texting will redefine the customer experience - VenueVision. [online] VenueVision. Available at: <https://www3.venuevision.com/fixed-ops-magazine-texting-will-redefine-the-customer-experience/> [Accessed 1 June 2022].
Wysocky, K., 2022. Retailers tap targeted digital advertising to boost fixed ops. [online] Automotive News. Available at: <https://www.autonews.com/fixed-ops-journal/retailers-tap-targeted-digital-advertising-boost-fixed-ops> [Accessed 1 June 2022].