Don Zogg

Three Misconceptions About Dealership Service Departments

gaillardc — Wed, 14 Aug 2024 13:52:51 +0000

Three Misconceptions About Dealership Service Departments gaillardc Wed, 08/14/2024 - 08:52

Misconceptions about franchise car dealership Service departments persist despite industry efforts to change the conversation. You know how it goes: Dealership service centers are too expensive; the technician around the corner will do the same work; etc.

As a result, many vehicle owners skip car dealerships and turn to independent and chain shops. Franchise dealers retain only about 30% of customers after warranties and maintenance programs expire, according to CDK Research. That lost revenue adds up to tens of millions of dollars every year.

Yet, as vehicles become more advanced with more technology than ever before, and as EVs gain more market share, the expertise that the dealer’s Service department offers is key to keep vehicles running the way manufacturers intended.

Every interaction your team has with a customer or prospect is an opportunity to change the conversation about your Service department. Read on for talking points to help counter three of the biggest misconceptions.

Dealerships Service Centers Are More Expensive

We recognize the dealership may cost more for some services; however, here are some things to consider when speaking with consumers. Dealers have dozens of auto Technicians and specialized experts, in addition to the right parts and OEM components, to perform all types of work in a short amount of time. Quality work and an efficient experience are important to today’s drivers, and dealership Service centers shine on both points.

And while technicians can sometimes offer services at a lower cost, dealerships can provide comparable prices thanks to monthly auto service specials, oil change coupons, and more.

Dealers also have an advantage when it comes to repairs outside of a warranty period and recalls because they typically guarantee repairs with a warranty that’s good nationwide. If the part fails, it can be fixed under warranty and at any franchised dealership. Independent repair facilities most likely can’t offer this benefit.

Other advantages to reinforce with customers include the breadth and depth of services only a dealer can provide. Whether it’s a standard oil change, engine or transmission repairs, the dealer can handle it all while smaller independent shops have limits on what they can do. Loaner cars or rentals are another great service to reinforce. Even if it isn’t complimentary, dealers at least have an option to keep drivers on the road while their cars are being fixed.

Finally, we can’t ignore the growing number of EV drivers who’ll need services that independent shops just can’t handle. Dealers are the best source for EV-trained Technicians. And in our most recent Service Shopper 3.0 study, trained Technicians were some of the most desirable features dealerships provided. It’s a good strategy to emphasize the advanced technology in today’s cars and explain why a dealership’s Service Technicians are another reason to come to a dealership over the competition.

OEM Parts and Certified Technicians Don’t Matter

Genuine factory-trained Technicians and OEM parts do matter. Service shoppers ranked them second and third respectively as their top reasons for choosing a dealer over independents and chains in our most recent Service Shopper study. Here are some points to bring up with customers who question the value.

Dealer Technicians are manufacturer-trained and typically work only on the brands a dealership sells. The likelihood of quality service is much higher than with a Technician who works on a particular brand only once or twice a year. Plus, most dealers have ongoing training programs for their Techs, Service Managers, Advisers and support staff to keep up with the latest upgrades and repair techniques.

When it comes to parts, the best way to keep a car running at optimal performance is to repair with the same parts it had when it rolled off the assembly line. OEM parts offer greater assurance of quality because these are the same as the parts on new cars and offer the same level of performance.

And the majority of manufacturers offer warranties for OEM parts and labor if something fails. A 12-month/12,000-mile warranty on parts and labor for repairs and/or service isn’t uncommon at the dealer level. And only dealers receive Technical Service Bulletins so factory-trained Technicians know how to make the repairs according to the manufacturer’s instructions.

Aftermarket parts may carry warranties, but the customer is on the hook for labor costs if the part needs to be replaced or fixed.

When I Sell My Car, It Won’t Matter Where I Went for Service

This is a big misunderstanding among vehicle owners and it can cost them when they go to trade up at a dealership or sell to a private party. A comprehensive service history makes the vehicle more reliable and therefore more likely to command a higher price from a buyer.

The best way to prove a vehicle has received the maintenance it needs to run reliably is to service at a dealership. This is because OEMs and dealers keep digital records of all service history that can be easily accessed. Independents most likely don’t offer this type of assistance.

A service record is especially important to franchised dealers because it’ll determine how much reconditioning they have to do to a trade-in to get it front-line ready. The better maintained a vehicle, the lower the reconditioning costs, and the more a dealer will pay for the trade.

Service revenue is a dealer’s best bet for reliable and steady income. Turn every customer interaction into an opportunity for your dealership staff to change the conversation and drive more business into your Service lanes.

Don Zogg

Product/Topics

Fixed Operations

How Dealership Service Departments Can Enhance the Customer Experience

gaillardc — Thu, 06 Jun 2024 19:55:58 +0000

How Dealership Service Departments Can Enhance the Customer Experience gaillardc Thu, 06/06/2024 - 14:55

The spotlight is shining on delivering great customer experiences. In fact, 84% of dealers plan to increase their focus on the customer experience in 2024. And great strides have been made to meet buyer demand for a more efficient and seamless car-buying process. But what about on the Service side of the business?

A dealership’s Service department is its best bet for steady and reliable income. So, it makes sense to also prioritize the customer experience in Fixed Operations. Dealers who address and fix common points of customer frustration within the Service process will enjoy more revenue, higher CSI and loyal customers. Focus efforts on the following.

24/7 Appointments and Scheduling

Customers want Service scheduling to be convenient, fast and easy. Focus on ways to optimize the experience, both online and over the phone. For example, Service webpages should have a prominent button where customers can access scheduling tools and set an appointment in minutes.

Evaluate your phone system. Are customers waiting on hold, lost in rerouting or dropped altogether? Digital Voice Assistants (DVAs) can answer phones, schedule appointments and provide dealership information like hours and location. Best of all, it can respond to customers 24/7.

Inform With Video

Vehicles are complex and most customers have only basic knowledge of how they work. It’s no wonder there’s confusion, and even frustration, when a customer in for a tire rotation is presented with a list of additional recommended services that they don’t understand. Video can change the game in terms of transparency and trust.

Evaluate video platforms and line up some basic technician training. Once up and running, technicians can record a personalized walk-around, include messages and full service explanations, and text the video to the customer. When customers understand the “why,” they’ll be more likely to approve the service and leave feeling good about the experience.

Accurate Repair Orders

It’s frustrating for customers when an RO is quoted and then the cost goes up mid-repair. Whether due to a misdiagnosed problem, an extra part needed, or a myriad of other reasons, changes to an RO are an unpleasant surprise that can hurt customer satisfaction.

A strict validation process can mitigate the problem of changing ROs. Mandate that a Service Advisor accompany the customer to the vehicle and verify the exact concern with clarifying questions.

For example, a customer concerned about a noise from the front of the car needs to be asked if it happens at certain speeds, going around corners, while in park, and so on. These answers will help with diagnostic procedures so the diagnosis can be as exact as possible. The customer will also feel heard and understood so they have more confidence in the experience.

Unavailable Parts

When a customer books an appointment, they assume that all needed parts will be available. Trust erodes when a Service Advisor calls later to explain they don’t, in fact, have the part and the repair will take one to two days longer. Customers who need their vehicles to get to work and fulfill obligations will be understandably frustrated and less likely to leave a positive review.

The most important task a Service Advisor can perform to nip this problem in the bud is to review Service appointments two to three days in advance and check that all needed parts are in stock. If a part must be ordered, it’s better to call the customer and offer to push out the appointment rather surprise them with a delay in the bay.

Service Updates

No Service center purposely keeps customers in the dark during a vehicle repair. Packed days are a hallmark of the Service Advisor's and tech’s jobs, and taking time out to text or call a customer often falls by the wayside. Yet, customers expect timely updates, and we know that nearly eight out of 10 (78%) find receiving updates on the progress of service as one of the most difficult tasks at a dealership.

The ability to update customers is available through technology, like mobile updates, and should be a consideration to help improve the Service experience. Vehicle tracking technology is also available to send texts to customers with a real-time status of their vehicles throughout the Service process.

A smooth Service process is a powerful way for dealerships to deliver an exceptional and successful customer experience. By leveraging technology, process changes and people, automotive Service departments can reduce customer friction points and increase customer loyalty, revenue and CSI.

Don Zogg

Product/Topics

Fixed Operations