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June 7, 2024
Do’s & Don’ts: Tips to Improve the Dealership Service Drive Customer Experience
As customer loyalty diminishes, providing an excellent customer experience at your dealership is more important than ever.
According to S&P Global Mobility data, automotive industry brand loyalty is hovering at 53% as of April 2024. While this average is up 4 points from its historical low, nearly half of all new vehicle buyers will leave their current brand with their next purchase.
Meanwhile, the cost of new vehicle ownership is up 30% since 2019, according to S&P Global Mobility reports, contributing to the average age of vehicles on the road reaching a new record of 12.6 years in 2024.
As repair opportunities grow alongside vehicle age – and customers increasingly shop around – delivering an excellent customer experience in the service drive is invaluable to dealers’ conquest and loyalty efforts.
Service Drive Customer Experience Do’s
From supporting customer retention efforts to converting service-not-sold customers, the dealership service drive offers invaluable customer touchpoints.
Maximizing each of these touchpoints is key to improving the overall customer experience, driving revenue through repair orders and service-to-sales opportunities – and supporting dealership’s bottom lines.
While each dealership’s strategy and process will differ, there are a few key principles – do’s and don’ts – to improve the customer experience in the dealership service department.
Do Communicate Between Dealership Departments
Staying in constant, personalized contact with customers across service and sales departments dramatically improves customers’ likelihood of purchasing.
To capitalize on growing opportunities, dealers need to ensure their sales and service departments aren’t working in silos and are fostering effective communication between teams.
● Dedicate qualified personnel – like someone in the BDC – to the sales-to-service process. This person is responsible for executing service drive programs and keeping customers from falling through the cracks.
● Communicate to your dealership team the realities of the market. For example, how customers are keeping their cars longer and OEMs are offering fewer incentives than in previous years.
● Focus service conquest marketing on your local community with messaging emphasizing proximity and convenience to proactively defend against competitors’ conquest efforts.
Download the Whitepaper:
Dealership Checklist: Uniting Sales and Service Teams
Do Use Data to Understand Customer Buying Behaviors
As cost of ownership increases, younger buyers are increasingly getting priced out of new vehicle consideration. According to S&P Global Mobility, share of new vehicle sales by the 18- to 34-year-old demographic has dropped to 9.2% – its lowest share on record – while the 65+ demographic has more purchasing power than ever.
As their customer portfolio changes, it’s increasingly important dealers use data to understand customer buying behaviors to build loyalty with both their service loyalty and service-not-sold audiences.
● Use dealership marketing technology to mine your upcoming service appointments for the customers that represent sales and acquisition opportunities, including buy-backs and trades.
● Check for any vehicle recalls, OEM incentive offers and other dealer-specific sales opportunities customers are likely to be interested in based on their buyer and vehicle profile.
● Review customer service and purchase history to identify patterns and purchase trajectories to engage customers before their appointments.
● Train dealership sales and service teams on how to use buyer insights to engage customers who have major repair orders, expired warranties or excessive mileage to support sales efforts.
Do Proactively Engage Customers Across Channels
With increased competition, its important dealers stay in consistent communication with their customers across channels.
Look for opportunities to target customers before they return to market by engaging prospects across channels with personalized messaging throughout their buying journey.
● Leverage predictive marketing technology to proactively identify customers in need of service and prospective service-to-sales opportunities.
● Engage customers regularly and ahead of their scheduled appointments.
● Leave a personalized note behind for customers who don’t end up trading that day.
Customer Experience Don’ts
Dealers can’t control every factor that influences their dealership’s customer experience – the last few years are testament to that.
But dealers can adapt to changing consumer preferences and industry trends by using the wealth of information available to their team and avoiding a few critical errors.
Don’t Pester Your Customers
When communicating with sales and service customers, it’s important to build goodwill with customers by delivering personalized, informational and consistent messaging that demonstrates why they should trust your dealership. Every customer communication should build upon the previous touchpoint, including details related to common concerns like service delays or order status updates.
● Don’t leverage “spray-and-pray” marketing strategies, delivering non-specific messaging to your entire customer base.
● Don’t deliver marketing messages that are vague, out-of-date or otherwise don’t offer any value to your customers.
● Don’t repeat the same info customers have heard before. Ensure your service staff is equipped with key customer insights to build on previous conversations.
Don’t Promise Things You Cannot Deliver
When speaking with service-to-sales and loyalty customers, sales and BDC teams need to be prepared to speak confidently. Topics to be prepared for include current availability and incentives, including providing regular updates on both.
This requires sales and service teams to stay up-to-date on both the vehicles in your inventory and any inbound deliveries.
● Don’t leverage “bait-and-switch” offers or advertising.
● Don’t over promise when it comes to topics such as delivery dates and repairs. Instead, provide regular updates to offer customers a sense of transparency.
● Don’t wait for customers to re-enter the market. Engage customers before they re-enter the buying cycle to map prospects to your dealership’s inbound deliveries.
● Don’t work only in silos. Ensure sales and service teams are on the same page and are working toward the same goals together – delivering the best service experience possible.
Download the Whitepaper:
Navigating Negative Equity: Strategic Conversations with Customers
Don’t Assume Loyalty Based on the Past
Now more than ever, dealers need to proactively promote customer loyalty to defend against competitor conquest efforts. This starts by identifying and engaging prospective buyers preparing to return to the market in the coming months to stay ahead of the competition.
As many dealers look to “do more with less,” the service drive offers dealers a natural opportunity to engage prospective buyers preparing to return to market, nurture customer loyalty and drive future sales within their upcoming service appointments.
● Don’t skip opportunities to regularly engage customers throughout the ownership cycle – the retention cycle starts as soon as the sale is finalized.
● Don’t skip confirmation notifications or follow up calls, even if a sale or a service appointment went well.
● Don’t forget to incentivize customer loyalty with programs like special service offers, referral bonuses or other exclusive benefits to boost customer retention.
Conclusion
Improving the service drive customer experience is essential for dealerships looking to retain customers and attract new ones.
While every dealership will take a slightly different approach, ultimately delivering an excellent auto dealership customer experience in the service drive – or showroom – comes down to staying ahead of buyers’ needs.
How can dealers improve customer experience?
● Ensure dealership departments are regularly communicating.
● Use data to understand customer buying behaviors and tailor messaging.
● Consistently and proactively engage customers across channels with personalized messaging.
Interested in learning how Mastermind can help your dealership increase retention and drive future sales? Contact us for a free demo.