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Is anyone using cell phone texting with their service departments?

Yes.

We just built an in-house tool for this and rolled it out to our first beta client to see what they thought.
The service manager there previously used it at a bigger city dealership and said the responses were phenomenal.

We setup opt-in levels so that customers can opt-in to just the "Your Car is Ready" texts, or they can subscribe to oil change reminders or, if they're brave, they can subscribe to dealership wide promotions.

Time will tell.