Why Service At A Dealership?

[Brittany]

Hey guys!

How does everyone get customers to use a dealership's service lanes instead of running up to the closest Jiffy Lube or mom-and-pop repair shop?

I'm thinking about things like factory parts, technicians that are manufacturer certified, etc!

 

[Tallcool1]

This is a tough one. I am going to go back a few years with something that we did when I was on the franchise side.

So, NADA had determined that a sales customer that utilizes the dealership's service department for all maintenance (and repair) work is something like 5 times more likely to purchase their next vehicle from that dealership. How do we get our sales customers to service here and therefore be much more likely to purchase their next vehicle from us?

We looked at the average trade cycle, and decided to offer free oil changes for that time duration. Basically, give the customer free oil changes to get them to service with us..and buy their next vehicle from us.

What we discovered was much different than what we anticipated. These customers would do their oil changes with us, but nothing else. If we told them they needed brakes, they would decline and head over to an independent facility. Tires, same thing. For the most part, we really didn't improve our service department by doing this. But it gets worse. They were also no more likely to purchase their next vehicle from us.

2 years later, NADA discovered that If the dealership subsidizes the program to entice customers to utilize their service facility......those customers are not more likely to purchase their next vehicle from that dealer. Who knew!?

I personally believe that the answer to your questions are with your customers. Simply put, ask your customers. Survey them, invite them in for a "round table discussion". As you already know, convenience and trust will be top 5 answers. There are other answers as well.

Sorry I can't add more here. Good luck.

 

[Brittany]

Thanks @Tallcool1 !

This is actually pretty helpful! A big lesson of not just relying on some free things to sell the service side of things

 

[CarlAutofusion]

This post caught my eye because this is a question we get periodically and about 2 years ago, we worked closely with one of our customers to tackle this problem.

What made the biggest difference was changing the sales process. After a car is sold, the customer goes through an extra step where they are told:

• The benefits of getting service at the dealership
• The benefits of getting service at that dealership
• What you miss out on at the quick oil change places

They are given a tour of the amenities and waiting area, given a brochure outlining what they are told and their first service appointment is booked.

I don't recall the exact metrics, but I do remember there was a dramatic increase in people who showed up for their first service appointment.

Hope this helps!

 

[Brittany]

@CarlAutofusion thanks so so much! That's a really good way to start the process from step 1 lol

 

[Kevin Kulma]

@Tallcool1 !

Actually there are a lot of great stats out there. This is information is top of mind because I needed to do some research for a few 20 group meetings/industry events for our company over the last few month.

This info is via OE Market Director from one of the big domestics - sorry for being vague, don't want to broadcast this info w/o his blessing.

• A consumer who voluntarily service(s) his/her car (meaning out of warranty and not recall work) twice in a calendar year are 3x more likely to consider and buy their next new vehicle from that dealership
• 56% of the time - when a consumer defects from a dealership to independants ( Jiffy Lube / Pep Boys), it is because of TIRES.
• Here is the biggest stat - 72% of the time when a consumer buys a set of 4 tires at the dealership, they will buy their next vehicle from that dealership.

Thus the reason why CSI + Defection has become such a huge talking point on the OE side.

I have been on the "sales" marketing side for 15+ years.... in doing Fixed Ops marketing for the last 18 months. The possibilities for HUGE profits and ROI are really limitless with very little spend.

 

[Brittany]

@Kevin Kulma thanks for the info! That's crazy that tires have that much potential! I'm sure those customers are super loyal.

 

[digital_gangster]

Well, this is great information that has hit at just the right time. I have been tasked with the SEM spend for the fixed ops at my dealership. This all seems very new to me, of course, but already this post has the wheels turning for me. Thanks @Brittany for posing the question

 

[Brittany]

@John__S I'm glad it's helping! The whole goal is to work on writing some stuff for dealerships using real information from you guys, so hopefully there will be more help coming!

 

[ChrisR]

Actually there are a lot of great stats out there. This is information is top of mind because I needed to do some research for a few 20 group meetings/industry events for our company over the last few month.

This info is via OE Market Director from one of the big domestics - sorry for being vague, don't want to broadcast this info w/o his blessing.

• A consumer who voluntarily service(s) his/her car (meaning out of warranty and not recall work) twice in a calendar year are 3x more likely to consider and buy their next new vehicle from that dealership
• 56% of the time - when a consumer defects from a dealership to independants ( Jiffy Lube / Pep Boys), it is because of TIRES.
• Here is the biggest stat - 72% of the time when a consumer buys a set of 4 tires at the dealership, they will buy their next vehicle from that dealership.

Thus the reason why CSI + Defection has become such a huge talking point on the OE side.

I have been on the "sales" marketing side for 15+ years.... in doing Fixed Ops marketing for the last 18 months. The possibilities for HUGE profits and ROI are really limitless with very little spend.

Great info!

Curious about some of the Fixed marketing efforts you're doing to help keep more cars heading into the drive.