How successful is the service department in your dealership? Do you wish you had more service customers? If you have an established dealership with a healthy customer base of new and used purchase customers, then you have a gold mine of potential. Your database of past purchase customers and new sales provide you with an excellent opportunity to increase your service business. So how do you leverage your database of customers to grow your service business?
The answer-you ask them for their business. Remember the saying, "Be careful what you ask for; you just might get it." It is as simple as asking! In a recent one-year analysis at a large dealership group, results were compared among customers who were solicited for service business versus those who were not solicited.
The penetration (number of owners returning to their dealership) for non-solicited was 28%. The penetration for the unsolicited was a staggering 60%, more than twice as many. The solicited customer base also reported three times as many repair orders per VIN and spent 2.5 times more money.
So why doesn't everybody invest in a marketing plan to increase his service business? Most dealers invest a significant amount of time and money generating purchase sales and hope that customers are treated so well during the purchase experience that they will want to return for service work. Unfortunately, too many customers are defecting to quick-lube and independent repair shops. A marketing system needs to be established to actively solicit service customers. With a minimal investment, you can implement a system to convert your new purchase customers into long-term service customers.
One of the initial steps you should take is to conduct a work audit of your service department to make sure you have the capacity to absorb the additional business you expect to get.
Second, conduct training of all service department staff-from service advisors to technicians-to make sure they understand the importance of a quality service experience from the customers' viewpoint. According to J.D. Power and Associates, only 45 percent of dealer service customers report having an excellent service experience. That means lost business and lost vehicle sales for many dealerships. What would be the point of spending money to bring them into your store if your personnel end up driving them off with poor service? The keys to a satisfying experience are consideration for the customer's time, courtesy and helpfulness of service personnel and no returns for unsatisfactory service.
Third, clean up your customer database. Run the database names through National Change of Address software that reflects any changes to your customers' addresses within the last year. You'll maximize coverage and reduce the cost of return postage and pick-up on returned third-class mail.
Finally, consider a service-marketing program that offers your customers a distinct benefit for their continued patronage at your service department. One popular tool is the customer Service VIP Card, a credit card-like piece that identifies the customer by name and entitles the holder to discounts in service and parts. There are also variations to this basic card, such as the use of peel-off stickers or hole punches that entitle the cardholder to some kind of free service when enough stickers are removed or enough holes are punched.
A unique concept that encourages loyalty and repurchase activity in the sales department is a service reminder booklet that looks like an owner's manual. Each time the customer comes in for the regularly scheduled factory service, the event is recorded and signed in the book. If they comply with the maintenance schedule, at the end of the warranty period, customers are given a cash certificate that can be applied against the purchase of a new car at that dealership. It's a great way to develop customer loyalty.
FACT: New car owners will be taking their vehicles somewhere for service. Doesn't it make sense for them to bring the car back to the selling dealer rather than the Jiffy Lube down the street? What are you doing to make sure that happens, and what are you doing to make sure that they keep coming back after the first visit?