The Coronavirus outbreak has given the United States economy a gut punch. Industries are reeling from mandated shutdowns and thousands of people have lost their jobs. Naturally, this has caused consumer spending in some sectors to grind to a halt.
TEXT2DRIVE Helps Auto Dealers Expand Leads, Sales & CSI Scores
“Less is more” is a mantra many dealership service department managers have been forced to adopt as their mantra. You've likely been plagued by the following issues: increasing profit margins, understaffing, not enough hours in the day, recommended repair approvals that move at a snail’s pace, a lack of sufficient square footage in your repair shop and a shortage of service bays.
If you do not think that customer retention can make a significant impact on your service department revenue, consider the following:
- Acquiring a new customer costs more money than retaining an existing customer. It can cost a dealership up to 7x more to acquire a new customer than it does to retain a customer it already has
- Your existing customers are more likely to schedule service appointments than those who have never been to your dealership before.
- A 5% increase in customer retention can lead to a profit increase of up to 95%.
15.37%* Of Customers Who Received Reminders Had Service Performed In Less Than 30 Days
Trying to keep track of multiple OEM schedules as they pertain to each customer’s vehicle perfectly illustrates the conundrum that many service departments find themselves facing. Recommended maintenance is a solid potential source of revenue for dealerships, but traditionally, capitalizing on it has been challenging.
The average vehicle owner is not a mechanic. When it comes to recommended repairs, they need to be shown the issue in a clear and easily understood way. Customers will fully comprehend the necessity of the repair work when it is presented using tactics such as video and voiceover.