CDK Global

Success in the Fixed Ops department is essential for dealerships. According to the 2020 NADA Data Financial Profile, dealers rely on their Service departments for 30% of their net profits. But for customers of new cars, dealerships are seldom their first choice for service options: it’s commonly estimated that more than 70% of new-car purchasers take their service needs to a third-party mechanic.

Many dealerships are trying to do more with less — specifically fewer employees. If the labor shortage is having an impact on your bottom line, it’s time to think about getting some help.

In the Service department, the biggest negative impact on revenue comes from missed opportunities. Let’s take a look at the three biggest areas impacted:

The theme song to the classic sitcom "Cheers" states that “sometimes you want to go where everybody knows your name.” This is especially true when it comes to car shopping — customers want to go where everybody knows their name.

After all, dealers are in the people business. And what do most people want? Recognition. They want to feel like someone knows them, cares about their wants and needs, and works to fulfill those needs.

In today’s fast-paced world, the best way to remember your customers and give them a "Cheers"-like personal experience is by using a CRM.

The car business has come a long way in many areas, but employee retention is not one of them. Turnover in the Sales department is still high.

When I bring up the topic of sales training and how important it is for employee retention, I get one of two responses. Some managers believe their current training process is adequate, because that’s the way they learned. The “process” may be basic manufacturer training and a manager teaching the road to the sale for a day or two. After that, the salesperson is left on their own.