Best strategies to develop your car dealership’s service business

In 2020, new car dealerships reported $111 billion in revenue through service and parts alone. If you are focused on growing the service side of the dealership, these statistics should encourage you. There’s a vast opportunity available if you are willing to implement the best strategies to develop the service business.

If this past year has taught us anything, it’s that you can’t rely on new car sales to carry your dealership. Sure, the dealership makes more money at once on the new car sale, but there are times when repair orders need to carry the business.

If you are ready to take your service department to the next level, consider these best strategies.

Invest in a top-notch team

If you don’t have friendly, experienced technicians and service writers, your dealership can’t flourish for long. However, paying a little more for the best talent is going to ensure that your service department operates like a well-oiled machine.

It’s possible you might not have it in your budget today. However, you want to rethink the way you are looking at it. The J.D. Power 2020 Customer Service Index (CSI) Study claims that the highest-rated attributes for dealerships are both knowledge and courtesy of the service advisor. Can you afford not to have team members that supply superior customer service and speedy repairs? The investment is going to pay for itself in no time.

Enhance customer communication

It might seem obvious to you that communication is essential if you want to stay in front of your customers, but many service departments drop the ball on this point. Whether you choose to run social media retargeting or an email campaign, you must be regularly reaching out to your clients.

With the constant reminder that you are there, customers are more likely to turn to your service department the next time their car needs a repair or it is ready for maintenance. With today’s advanced technologies, you can reach out to them at the precise moment when they need you the most.

Increase value with the service

Everyone likes to feel as if they are getting something special or free. Add some incentives to your offerings or start a new loyalty program. Not only will these programs help you retain your current clientele, but those customers are going to tell other people.

There’s no limit to the way you can implement a service loyalty program. You can have each service add points to the account that can be used for free maintenance. You can also send out a free reward for each birthday that is celebrated or provide some perks from trusted third-party sources. Above all, the members in your loyalty program should always be the first to know about a sale or new service.

Following the customer through their journey

If a customer has a bad experience at any level of the dealership, they might not return again for service or to purchase a vehicle. That’s why it’s important to be with the customer every step of the way. While you can’t control the kind of treatment given during the car-buying process, you can ensure that your part of their journey is its best.

Make sure you keep their experience personalized and treat them as fellow human beings. The more of a connection that is made during these years will shape whether this customer trusts the dealership for another vehicle.

If you aren’t implementing these strategies now, start with one and take some baby steps. Even the smallest changes can have a profound impact on your revenue and customer retention.

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