Strategies to Improve Customer Retention in Dealership Service and Parts
Retaining customers in fixed operations such as service, parts, and body shops is crucial for dealership success and profitability. High customer retention leads to repeat business, increased sales, and positive word-of-mouth publicity. However, retaining customers in fixed ops requires implementing effective strategies across departments for training and more.
How Customer Retention Influences Fixed Operations Performance
According to some studies, acquiring new customers costs 7-10x more than retaining existing ones. Retained customers also tend to be more profitable over time as they come back for follow-up appointments, regular maintenance, repairs, and parts replacements. This is why higher retention usually directly translates into higher fixed operations revenue and stronger bottom lines.
Factors That Influence Customer Retention
There are several key factors that impact whether a customer will return to the dealership for service including:
- Service quality and advisor expertise
- Communication and transparency
- Convenience and availability of appointments
- Competitive pricing and discounts
- Personalized recommendations and reminders
- Loyalty programs and rewards
Leverage Customer Data and CRM
Implementing an effective customer relationship management (CRM) system can significantly complement retention strategies across service, parts, and body shops. Collecting and tracking detailed customer data allows advisors to understand purchase history, perform targeted outreach for follow-ups, customize recommendations, and develop personalized incentives. Dealers should invest in user-friendly CRM platforms integrated with other systems to help fixed ops teams boost retention.
Recognize Top-Performing Employees
Dealership employees themselves play a crucial role in retaining customers in fixed operations. Service advisors who develop strong relationships and provide excellent consultations tend to have higher customer retention rates. Similarly, responsive parts staff and meticulous body shop technicians positively impact whether a customer will return in the future. As such, fixed ops managers should track retention KPIs by advisor/employee and recognize top performers through incentives, awards, and promotions. This motivates staff to focus on retention-building behaviors.
Advantages of Good Customer Retention
Dealerships can leverage many upsides by prioritizing customer retention in fixed ops such as:
- Increased customer lifetime value
- Free word-of-mouth marketing and online reviews
- Higher service capacity utilization
- Ability to charge premium prices
- Improved sales and profitability
- Enhanced reputation locally
How to Implement Strategies to Complement Retention
Dealerships can take strategic steps to boost retention rates across fixed operations:
- Hire experienced service advisors and invest in ongoing training
- Have transparent communications about service timelines/pricing
- Streamline the appointment booking process
- Offer multi-point inspections to customize recommendations
- Develop retention-focused loyalty programs with incentives
- Send reminders about due services and recommend add-ons
- Monitor retention metrics and customer feedback regularly
Get in Touch with DealerPRO Training for Fixed Operations Training and Improvements
DealerPRO Training provides dedicated consulting and training programs to improve customer retention KPIs across dealership fixed operations. Contact us today to learn about our retention-focused service advisor and manager training to improve your fixed operations.
