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Fixing Churn in Fixed Ops

Couple sitting down with salesperson
Article Highlights:

  • Bring customer service to the service department.
  • Focus on the customer, eliminate the price wars.

If you take one thing away from this article, let it be this:

Customer service matters more in service than anywhere else in the dealership. Here’s why…

New customer acquisition can be 5 times more expensive than retaining your current service customers. [1] The more repeat customers you have, the more you’ll make, because the success rate of selling to repeat customers is 60-70%, and just 5-20% when selling to new customers. [2]

It’s critical to keep service customers coming back to keep operations profitable and cover expenses for the entire dealership. In addition, every dollar that’s not coming back to your drive is being spent at your competition. So, how can you keep customers coming back to YOU?

The best way is to provide an unbeatable customer service experience. 93% of customers are likely to make repeat purchases with companies who offer excellent customer service. [3] There are some key points to focus on when developing your approach to customer service.

  1. Service satisfaction improves by 44 points when a customer is greeted within two minutes of their arrival. [4]

It’s crucial to greet the customer the second they arrive. 12% of Americans rate their number one frustration as “lack of speed”. [5] Whether it’s an advisor or a tool, your customer should be greeted by name when they arrive at your dealership.

  1. Consumers are willing to spend 17% more on a company that has outstanding customer service. [6]

When you offer great customer service, you stop competing solely on price. If your service is fast, you provide better communication, and you create  less of a hassle, your customers will come back to you and be willing to spend more at your store than somewhere else.

  1. 84% of customers said their expectations weren’t exceeded in their last customer service experience. [7]

At 84%, there’s a lot left to be desired. If you can be the 16% exceeding customer expectations in service, you’ll be getting customers for life. If not, that money could be walking out your front door. $1.6 trillion is lost by American companies due to customers experiencing poor customer service and switching to competitors. [8]

So what happens when customer service becomes a priority?

  1. Businesses can grow revenue between 4% and 8% when they prioritize better customer service experiences. [9]
  2. 64% of customers believe customer experience is more important than price when deciding to make a purchase with a brand. [10]

Customers come back to your dealership and are willing to spend more money for their experience, meaning better, more sustainable business for you.

The numbers prove the importance of providing effective customer service. Now’s the time to invest in the right tools to help your service drive get to where it needs to be.

[1] Invesp

[2] Marketing Metrics

[3] HubSpot Research

[4] J.D. Power

[5] Statista

[6] American Express

[7] Harvard Business Review

[8] Accenture

[9] Bain & Company

[10] Gartner

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Product Planning, Reynolds and Reynolds

Cory Coler is a member of the fixed operations product planning team at Reynolds and Reynolds. He began his career in the automotive industry in 2001 at a Toyota retailer, becoming an ASE Certified Advisor and Toyota Certified Assistant Service Manager. In 2005, he joined Reynolds’ Service Price Guides (SPG) department in Tampa, Florida and quickly became a subject matter expert for the product. In 2014, he transitioned to his current role in Product Planning where he is responsible for the enhancement and design of several fixed operations applications.

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