Why are a Dealership’s Service Drive Customers so Important?
According to V12data and Forbes, it is estimated that more than 40% of a dealership’s overall income originates from the service department.
Customers may buy vehicles a few times in their lifetime, but they get their vehicles serviced multiple times a year. Keeping customers coming back to your service drive is key to increasing dealership revenue.
The service drive possesses strong earning potential, but v12data.com reports that 72% of customers are choosing to use third-party mechanics after the manufacturer warranty has expired. The same study also suggests that dealer service drives are often thought to be overpriced while third-party mechanics are thought to be more convenient and cost-effective. With service department revenue increasing in importance, dealers must find ways to get more service customers through their doors.
How Can I Keep Customers Happy in the Service Drive So They Keep Coming Back?
59% of consumers expect dealerships to offer less competitive pricing compared to other service centers. However, 53% of consumers expect dealerships to offer higher quality service than other stores. (DMEautomotive)
Customers expect your dealership’s services to cost more than third-party mechanics and service centers. On a positive note, they feel they get better quality service when they take their vehicle to the dealership; therefore, they are willing to pay more. Additionally, a study by cars.com shows that customers are willing to pay up to 15% more when they are provided with more information about actual prices and dealership work.
How Can I Make Service Communications Easier for Customers?
It is well known that many customers prefer to be contacted via text or email. Texting and emailing customers during each stage of the service process creates a more informed customer. Customers can then approve service faster and pay on the go, saving them — and your team — time and effort.
Car owners don’t always know what’s wrong with their vehicle when they come in for service. They often have their guard up and fear being sold a repair or service that they don’t really need. If a recommended repair is unexpected, the tech can take a picture of the issue for the advisor to send along with the suggestion. Dealers can alleviate this fear by being clear in the communication, sharing detailed analysis and sending customers all the information they need for review via text or email.
Two-way text messaging lets the customer directly contact the advisor to get more information on the repair or status of their vehicle without having to make phone calls or funnel messages through the service desk. Instant communication helps customers stay informed and increases CSI.
Modern software technology now permits this type of two-way text messaging to exist right in the DMS. Dominion VUE™ has built this technology into its core product — and makes it easy for service technicians, advisors, and managers to create and send videos via text or email to customers. With visual proof of repairs needed, customers can more confidently make decisions regarding the work to be done.
Ready to better inform your customers and rev up your service drive? Contact us at 877.421.1040 to speak with a product specialist or visit us at drivedominion.com
