On today’s episode of Service Drive, EasyCare National Fixed Ops Training Manager Corey Smith shares what dealers should focus on in 2026 to maintain strong fixed ops performance and boost customer retention.
The year ahead will likely be softer for new-vehicle sales due to persistent affordability pressures and rising new-vehicle prices. At the same time, customers are keeping their cars longer, creating greater demand for service and repair. Fixed operations have always been a cornerstone of dealership profitability, but in 2026, it will become even more critical to financial performance and long-term customer retention.
Customer retention is becoming a battleground in the retail automotive industry. According to Cox Automotive’s Service Industry Study, franchised dealerships have experienced declines in service share to independent shops and quick-lane operators since 2018, even as overall service revenue has grown. The opportunity is unmistakable: if dealerships can retain more customers while maintaining strong average repair orders, profitability can increase significantly.
"The service advisor is the single biggest lever to protect retention, drive trust, and convert work ethically."
Smith says the most important level to protect retention, drive trust and ethically convert work is the service advisor. Advisors are often the first and most consistent point of contact for customers. While technicians are essential, advisors control the customer experience from the greeting, estimate clarity, status updates and follow-up. If dealerships want higher retention and stronger CSI, advisors must execute the process consistently and thoroughly.
Smith argues that independent shops are gaining service market share largely because their advisors are doing a better job of building trust through communication. Customers ultimately choose who they trust and who is convenient.
A lack of structured training remains a contributing factor. Smith recommends that new service advisors spend three to four weeks of dedicated training before working directly with customers. Too often, advisors are put on the drive after only a few days and expected to learn on the fly.
Ongoing coaching is equally important. Smith emphasizes that coaching should be short, frequent and behavior-based, supported by technology rather than limited to occasional classroom sessions or performance reviews. Daily 10-minute huddles focused on one skill, such as overcoming objections or clearly explaining repairs, can reinforce consistency and build confidence.
One of the most common industry-wide challenges is inconsistent status updates. Smith notes that communication is the new CSI engine. Customers expect transparency and speed. Advisors should ask customers how they prefer to receive updates and how often. Even when there is no major development, proactive communication reassures customers that their vehicle remains a priority.
Training without a standardized process, however, is ineffective. Many dealerships rely on shadowing, but that approach can backfire if each advisor follows a different method. Smith recommends establishing a clearly defined process that outlines minimum expectations for greeting, walkarounds, multipoint inspections, updates and delivery. Fixed ops leaders should periodically ask advisors to walk through the process to ensure alignment and accountability.
Even dealerships posting record months should not become complacent. Smith calls many current results “low-hanging fruit,” noting that small adjustments in communication, consistency and coaching can significantly increase profitability. Incremental daily improvement, even at one percent, compounds over time.
Looking ahead, Smith encourages dealers to explore AI and automation to reduce administrative burdens on advisors. If operating his own store, he would implement AI to help answer inbound calls and use an external BDC trained to support the advisor’s menu presentation. He would also display key performance indicators on a visible whiteboard and rotate responsibility among advisors to update it daily, reinforcing ownership and awareness.
Finally, Smith advises leaders to “inspect what they expect” by calling into their own service department or mystery shopping the experience. Understanding the customer journey firsthand allows managers to identify breakdowns quickly and coach accordingly.
In a year where new vehicle sales may soften, fixed ops will remain the most reliable driver of dealership profitability. In order to remain successful, fixed ops leaders must invest in advisors, standardize the process and coach consistently.
