The dealership service game has changed—but too many dealerships are still running old plays. Today, your customers demand more convenience, faster communication, and transparent service experiences. If you’re still following outdated strategies, you’re leaving money—and loyalty—on the table.
We recently tackled this topic head-on in the latest episode of our Retention Roadmap Podcast. Our guest, Ujj Nath, CEO of myKaarma and an Automotive News All-Star, shared how dealerships can rewrite their fixed ops playbook using smarter strategies, AI-powered tools, and personalized customer experiences.
Ready to learn how to transform your dealership’s service department into a retention powerhouse? Let’s get started.
Today’s key challenges in fixed ops
The dealership service landscape isn’t what it was a few years ago. Here’s why:
1. Fewer cars on your service drive
Pandemic-related sales slumps mean fewer new vehicles sold. Fewer new vehicles today equals fewer older vehicles coming back in for trade and service tomorrow. Bottom line: Less foot traffic in your service department.
2. Customers still leaving for independent shops
Once warranties expire, about 2 out of 3 customers ditch dealerships for independent repair shops. Many customers still don’t realize dealerships handle tires and batteries, missing major revenue opportunities.
3. Not enough appointments available
Dealership staffing shortages mean long waits for service appointments. Even loyal customers can defect if they can’t book a service when they need it.
4. Shifting communication expectations
Email isn’t cutting it like it used to. Customers, especially younger ones, now vastly prefer text messaging. Dealerships slow to embrace SMS risk losing touch with their customers.
Why the old playbook no longer works
Sticking with old-school methods means missing out on new opportunities. Here’s what’s falling short:
Complicated loyalty programs don’t stick
Traditional loyalty schemes with complicated rules and discounts aren’t exciting customers anymore. Vehicle owners today prefer straightforward, instant benefits without hoops to jump through.
One-size-fits-all services turn customers off
Customers don’t value generic perks like “free Wi-Fi” or complimentary coffee—they’re expected now, not special. People want meaningful benefits: free tire replacements, warranties, or clear service advantages
Rigid online scheduling loses business
Many dealership online schedulers have confusing rules and limited options, leading frustrated customers to abandon bookings altogether. Without easy, convenient booking tools, dealerships are losing customers to competitors who make scheduling simple.
The new fixed ops playbook: 3 winning strategies
If you want to stay ahead in dealership service, your approach needs updating. Here’s exactly how to do it:
1. Use AI and tech for standout customer interactions
Today’s customers expect instant, seamless interactions. Here’s how AI helps deliver that:
- Smart appointment scheduling: Most people make their appointments late at night. Set up AI-powered chatbots that let customers book via text—especially after hours. If they leave your website without scheduling, these bots can text gentle reminders to bring them back.
- AI-driven vehicle check-ins: Before customers arrive, automated text bots can gather accurate details about vehicle issues. This reduces tech diagnosis time and increases your chances of fixing vehicles right the first time.
- Personalized AI video follow-ups: Imagine sending a personalized video after every sale or service visit that explains vehicle features or urgent recall info clearly. Tools like myKaarma’s AI avatars make this simple, scalable, and impactful.
2. Keep your communication strategy up to date
Texting is king now. Here’s how to nail dealership communications:
- Prioritize text messaging immediately: Nearly 70% of customers prefer texts during service appointments, and over 40% prefer texts for service reminders between visits. If your dealership still primarily uses email, you’re behind.
- Integrated, multi-channel messaging: Use a system (like a Maintenance Marketing System) to automate and coordinate texts, emails, and direct mail. Meet customers where they are—on their phones, at home, and online.
- Post-service follow-ups that matter: Text short, helpful follow-ups after each visit to check satisfaction, ask for reviews, or book their next service. Proactively staying in touch keeps customers loyal.
3. Stand out with value-added benefits and better transparency
Offer customers benefits they can’t refuse, and build trust with transparency:
- Transparency through video inspections: Customers want proof they can see. Conduct quick video walk-arounds showing them exactly what issues exist and why repairs are needed. This transparency helps eliminate doubts, builds immediate trust, and can significantly boost upsells.
- Renewable Benefit Programs: Offer clear, renewable benefits tied to routine maintenance (like DriveSure’s dealer-loyal roadside assistance or tire coverage). This keeps customers returning regularly—not just when something goes wrong.
- Sell prepaid maintenance (PPM) in your service lane: 78% of customers are interested in buying prepaid maintenance plans after the initial car purchase, especially if they come with clear discounts or added perks (like free tire rotations or roadside help). Selling these directly from your service lane can drive an average increase of $70 per repair order.
Practical steps to start implementing the new playbook
Don’t wait—start small, then build up:
⏰ Quick wins (implement within 30 days)
Launch text-first recall campaigns:
Identify customers who haven’t visited your dealership in over 12 months (“lost souls”) and target them with text-based recall notices. Ujj reports this strategy achieving a 30% response rate and converting roughly 1 in 4 respondents into appointments.
Simplify online appointment rules:
Audit and reduce overly restrictive scheduling rules that cause frustration and abandonment. Ujj suggests a mindset shift: if you wouldn’t turn away a walk-in customer, don’t block online bookings either.
Use simple mobile video inspections:
Equip service advisors and technicians to easily record and send quick videos showing customers what needs repair (e.g., oil leaks, tire wear). This significantly boosts customer trust, approval rates, and average ticket value.
📈 Medium-term moves (implement within 3-6 months)
Create recall “milk-run” partnerships:
Partner with local used-car dealerships or independent lots that frequently sell vehicles with open recalls. Offer to regularly pick up those vehicles—on a set schedule—and bring them to your dealership for recall service. Not only do you complete the recall work, but you often uncover additional repair opportunities that generate customer pay revenue.
Introduce AI chatbots for after-hours scheduling:
Use AI-powered bots to handle late-night or after-hours scheduling requests seamlessly. Bots can also prompt follow-ups when appointments are abandoned, ensuring you capture more service opportunities.
Offer service lane prepaid maintenance (PPM) packages:
Launch simple prepaid maintenance plans sold directly by advisors at checkout, including clear value-added perks like free tire rotations or renewable roadside assistance. DriveSure research shows an average $70 increase per repair order through these packages, with an 84% retention rate.
🌱 Long-term game changers (implement within 6-12 months)
Implement personalized AI video follow-ups:
Deploy scalable, AI-driven avatar videos post-sale, welcoming new customers, demonstrating vehicle features, or addressing urgent recalls. Ujj’s myKaarma avatar videos boosted recall campaign response rates by over 10%.
Culturally embed customer responsiveness:
Prioritize responsiveness across all communication channels (especially text and phone calls), even after normal business hours. Regularly train your entire team on customer-centric practices, using AI tools to ensure every customer interaction is contextual and satisfying.
Track and analyze interaction data:
Move away from “conference room engineering” by regularly reviewing recorded phone calls, text exchanges, and video walkthroughs. Adjust strategies based on real-world customer interactions, not theoretical assumptions.
Better retention starts right now
The fixed ops landscape is evolving fast—but dealerships ready to adapt will come out on top. Start today with smarter AI tools, personalized communication, and clear value-driven strategies to win back customers and keep them coming through your service lane.
Want more practical strategies straight from industry leaders? Listen to the latest episode of our Retention Roadmap Podcast featuring myKaarma CEO Ujj Nath for even deeper insights into creating exceptional dealership service experiences.