In the face of economic uncertainty and rising interest rates, drivers are holding onto their vehicles for a record-breaking average of more than 12 years. While this trend has led to a decline in overall car sales, there is a silver lining: the service and parts business is booming. 💣
Recent metrics indicate that service activity at franchised dealerships reached a record high in March 2023 and continues to remain higher than last year.
Even still, surveys show fewer vehicle owners believe dealerships offer unique value, and independent repair shops continue to be perceived as cheaper and more efficient. 😤
⭐️ Here are some ways to elevate the service game at your dealership:
🔀 Adapting to New Preferences: Dealerships must adapt to customers' digital preferences, including online F&I services and faster transaction times. Embracing EV servicing is also going to be crucial as those vehicles continue to gain popularity.
🙌 Opportunity Galore: Consumers across all age groups have increasingly positive views of dealerships, presenting opportunities to attract millennial and Gen Z buyers. Dealers can succeed in gaining Fixed Ops traction by helping to dispel perceptions about the quality and cost of repair/maintenance services.
🤝 Customer Loyalty Strategies: Dealers can employ low or no-cost strategies like warm greetings, detailed receipts, follow-ups, and vehicle walkarounds to boost customer satisfaction and counter independents' appeal. Eight out of ten shoppers say cash-back incentives as low as $35 would also attract them to dealerships for maintenance and warranty work.