5 Strategies to Drive Loyalty, from a Fixed Ops Expert

As vehicle technology evolves and customer expectations grow, many dealerships are finding it tough to keep up. Without solid processes and a clear grasp of what today’s customers want, they risk losing business to competitors who make things easier and more consistent.

In our recent Retention Roadmap podcast episode, we brought on Corey Smith, the National Fixed Operations Training Manager for EasyCare, to talk service, retention, and more. The discussion covered a great deal, from the growing customer loyalty challenges for dealerships, to evolving vehicle technology and rising consumer expectations.

Smith was full of great insights for retention, so we picked five tips you can put into action at your dealership.

1. Create consistency with a clear process or playbook

Consistency is key when it comes to customer service. A well-defined process or playbook helps make sure every customer gets the same reliable and seamless experience.

One simple change is to start using “check-in times” instead of “appointment times”—this helps manage customer expectations better. Also, give customers a quick tour of the dealership when they arrive. It makes them feel more comfortable and valued.

“Your average customer comes into the dealership maybe twice a year. They don’t know the lay of the land like the advisor does. Show them around, treat them as a guest.”

Standardize your procedures with easy-to-follow steps for things like greetings, inspections, and follow-ups. Regular training and tweaks based on feedback keep everything running smoothly. This approach turns your service department into a well-oiled machine, making customers more likely to come back and boosting efficiency.

“Think of McDonald’s… they sell consistency. You know what you’re going to get when you go there.”

2. Use the power of prepaid maintenance and service contracts

Smith strongly advocates for selling prepaid maintenance programs and service contracts directly from the service drive. He explains that these programs ensure customer retention by creating multiple touchpoints with the dealership, which reinforces trust and loyalty.

He shares his personal success, noting that a 50% success rate in selling prepaid maintenance can significantly boost a dealership’s revenue.

“Selling service contracts directly from the service drive and prepaid maintenance are two of the most impactful tools the dealership can utilize.”

He also emphasizes dealership-specific programs that are simple and transparent: “You want it to be your own program… they dictate the rules,” and “For the program to really be efficient, it needs to be seamless and transparent.”

3. Adapt to technological changes

The rise of electric vehicles (EVs) and advanced vehicle technologies are changing the types of services dealerships need to offer. Traditional maintenance services will diminish, making way for more complex tasks like software updates and battery management. Corey stresses the need for dealerships to invest in specialized training to stay ahead of these changes.

“As EVs become more prevalent, service departments will face a drastic shift in the types of services they need to offer.”

As we’ve discussed here previously, tire services are a huge part of EV customer retention.

4. Incorporate mobile service solutions

Consider the growing demand for convenience in service options, such as mobile services and pickup/drop-off solutions. These services can ease the pressure on service department schedules and increase customer satisfaction by offering flexible and convenient service options.

“Customers are becoming more accustomed to convenience,” says Smith. “If dealerships don’t adapt, they risk losing market share.” With increasing demand for convenience, mobile service solutions offer a competitive edge. A few pointers:

• Stick to basic services: Offer mobile services for oil changes, tire rotations, minor repairs, etc.
• Provide appointment relief: Alleviate in-dealership service capacity by handling simpler tasks remotely.
• Have a dedicated coordinator: Assign a specific advisor to manage mobile services efficiently.

“If you can do simple services through mobile solutions, you can help alleviate the stress on your schedule and offer unparalleled convenience.”

5. Take advantage of data analytics

Data analytics is still an untapped resource for many dealerships. By leveraging data, dealerships can better understand customer behavior, predict service needs, and personalize the customer experience, which can significantly improve customer retention and give dealerships a competitive edge. 

As Smith notes, “A 5% increase in retention can lead to a 25% to 95% increase in profit.”

• Understanding customer behavior: Leveraging data provides insights into customer behavior, enabling dealerships to anticipate needs and improve satisfaction.
• Predicting service needs: Data analytics helps predict when customers need specific services, allowing proactive outreach that drives appointments and reinforces loyalty.
• Personalizing the customer experience: Good data enables personalized service by tailoring interactions to customer preferences, enhancing their experience and increasing retention. “If we treat them the way they want, they’ll come back.”

Effective use of data provides a competitive advantage by improving service offerings and customer experiences. In this industry, a small edge can make all the difference.

“It’s how people feel, that’s going to make them come back.”

Of course, when it comes down to it, improving customer experience is still the key to retention. Simple actions, such as providing a seamless experience and personalized service, can make a significant impact on customer loyalty. Smith encourages dealerships to treat customers like guests and ensure they leave with a positive impression.

Listen to the full episode to learn more

These are just a few of the topics we covered in Episode 6 of the Retention Roadmap podcast. To learn more, tune into the full podcast episode featuring Corey Smith.