How to Improve Automotive Service Retention: Expert Tips and Techniques

Returning customers spend 67% more than new customers. For an automotive dealership, that’s a lot of money left on the table. So make sure you’re working on automotive service retention. 

Fortunately, you don’t have to watch your customers walk out the door never to return. You just need a strategy to keep them coming back. 

Importance of Automotive Service Retention

For many customers, car dealerships are a dime a dozen. Their purpose is to sell the cars, and that’s it. 

Sure, 76% of customers think dealerships rip them off. This mentality can have a devastating effect on dealerships. You could see lower sales and even closures. To combat the public attitude toward car dealerships, focus on automotive service retention. 

David Boice, CEO and Founder of AutoMark, CyberCar, and Team Velocity says:

“The best opportunity for a dealership is the customer they already have. Consumers are keeping their cars longer than ever before, on average 12.6 years in 2024. 

If you don't keep that customer engaged for service, you are going to lose the sales opportunity when they are ready to buy again. A service customer is 7 times more likely to buy a car from a dealership than a customer who has never done business with that dealership before. 

Plus, there is a huge opportunity for dealerships to maximize their revenue potential by identifying service to sales opportunities before a customer begins their car buying process."

 

Here are the benefits of increasing efforts on automotive service retention:

• It leads to increased revenue, stronger customer loyalty, and a competitive advantage.
• Retaining customers is more cost-effective than acquiring new ones. In fact, it is up to 25 times more effective according to the Harvard Business Review.
• It enhances the dealership’s reputation through positive word-of-mouth.
• It provides opportunities for upselling additional services, reduces marketing costs, and allows for valuable customer feedback to improve services.
• Effective retention strategies contribute to long-term business growth and stability, ensuring a steady stream of income and a loyal customer base that supports the dealership’s success.

The list goes on. The point is that including customer retention strategies in your larger business model is essential. 

Best Practices for Delivering Exceptional Customer Service 

So, what can you do to get your customers to come back? How do you get them to tell their friends and family about you? Most importantly, how do you get them to trust you? After all, trust is at the center of loyalty, and you’re in a business rife with customer distrust. The primary focus for any company looking to improve customer retention lies with the employees.

Recruiting, hiring, and training the right people can make or break any business. During the interview process, make sure your potential employee is customer oriented. 

• Salesmen have to do more than just sell.
• Mechanics must be more than just great at fixing cars.
• Back office staff need to also have people skills. 

All of your employees must come to you eager to please your customers.

Once you know you have the right people in place, give them the right techniques: 

1. Transparency Is Key

One of the worst experiences when working with an automotive dealer is feeling like you’re in the dark. Whether it’s related to buying a car or bringing it in for servicing, the entire process often feels mysterious. Many people feel like they’re walking away getting the short end of the stick. They also feel helpless to do anything about it. 

Boice also points out that price consistency is essential and says:
“When a customer sees one price in a sales email and a different price on the dealership’s website, it creates distrust. Having a unified, consistent message across every touchpoint in the customer journey is the easiest way to bridge the gap.”

When your salesmen, mechanics, or service people work with customers, they should be entirely transparent about the process. Train your people to explain everything and to walk the customer through each step. Your customer should feel like a friend, an insider, or a part of the family. 

2. Don’t Expect to Have All the Answers, But Do Get Them

A common mistake in sales and service is pretending to have all the answers. If a customer asks you a question, and you don’t have the answer, you make something up. Obviously, you want your customer to think you’re an expert.

But here’s the truth: even experts don’t always have all the answers. 

To truly gain trust, ensure they are equipped to find the answers the customer is looking for. This garners loyalty that lasts and extends out to positive word-of-mouth.

3. Deliver on Promises 

There are few things worse when dealing with a sales or service person than empty promises. A salesman that oversells a vehicle that turns out to have problems. A service person who quotes a price only to call later with an increase by thousands.

It feels to the customer like a sleazy way to do business, and they will likely never return. 

You can flip this experience on its head by taking care with your promises. Then, commit to following through every time. Train your staff to admit when they don’t know something. Then, ensure they have the resources to get the answers they need.

Personalized Communication Techniques 

The next strategy for improving customer service is perhaps the most obvious — communication. Make your entire business model about the customer. This means communicating with your customer is an elemental part of doing business. 

While the strategies mentioned above are also natural aspects of customer communication, there are some more specific steps you can take. 

1. Reach Out

You’ve heard the expression, “A closed mouth never gets fed?” It’s true. Too many sales and service people worry that they’re being annoying. As a result, they don’t reach out to customers and potential customers. They take the hands-off approach, hoping the customer will come to them.

Meanwhile, the competition is calling, emailing, and texting your customer to get the business.

While you don’t want to harass your customers, you should absolutely be reaching out. 

• Send an email to gauge interest.
• Follow up with a call a week later
• Ask if your customer would like regular texts for sales and discount information.

Your customer isn’t a mind reader. If you want the business, you have to ask for it. 

2. Follow Through

Once you have your customer’s interest, now you’ll have to follow through on your emails. Set an appointment to meet with them, show up on time, and deliver on the expectations you set.

This means you have to set realistic expectations (see the point about delivering on promises above). If you know your service is going to run long, you could give your customer a gift card for the local Starbucks. You might offer them a ride to the movie theater with a free ticket. You may even just pay for an Uber back to the office.

Show your customer that you care through communicating expectations and then delivering on them. And go above and beyond in that delivery. 

3. Follow Up

Finally, don’t let your customer walk away, never to be heard from again, after a sale or service. Follow-up is perhaps the most important strategy when it comes to communication. You want your customer to think, “Wow. My car dealership really cares about me.” Because you do. So make the call.

Follow-Up Best Practices for Automotive Service Retention

But how do you follow up? After all, you don’t want to be annoying. And you don’t want to contact your customer without a purpose. Some of the best practices for following up for automotive service retention include reminding the customer how much you value them. 

Here are a few best practices to keep in mind: 

• Make It Timely: Don’t wait months to check in with your customer. Follow up to thank them for their business.
• Include a Call to Action: Don’t follow up for nothing. Make sure to let your customer know what you want from them or what you’re offering them.
• Offer Loyalty Rewards Programs: Your biggest secret weapon is an automotive service loyalty rewards program. If you didn’t get them to sign up during their last visit, remind them about it now.
• Offer Discounts for Referrals: Another great ask is for referrals. Let your customer know that your business depends on their positive word-of-mouth. Offer them 50% off their next service in exchange for a viable referral.
• Ask For Engagement: Finally, ask your customer for follows, subscribes, likes, and shares on your social media pages. Social media connections help your customer feel like they know, and can trust, you better. 

How Technology Can Help With Automotive Service Retention

Today’s technology allows you to track service dates, mark birthdays on the calendar, and remind you to reach out to customers regularly.

Make sure you’re using a CRM software. This allows you to keep your customer’s data on hand for your sales and service teams. A properly utilized database ensures you’re doing everything to improve your customer’s experience.

It will help you send reminders for service on time. CRM software also helps you get email promotional materials out and send text messages. 

Frequently Asked Questions

What are some examples of effective customer communication techniques?
Effective use of CRM software stores your customer’s phone number and email. It also keeps records of their sales and services — a critical part of communication. 

Also, be sure you recruit, hire, and train all of your staff to put the customer at the center of your business model. 

What is the best method to train employees on communication techniques and technology?

Fortunately, you don’t have to figure out training on your own. Quantum⁵ is a program that will help you get your staff trained on the best practices for sales and service. This can be key to improving your automotive service retention numbers.  

What are some innovative techniques to increase service retention?

Today, the most innovative approach you can take to increase service retention with your customers is to engage them where they are — social media.

Have a fun and informative marketing strategy. Offer your customers tips and tricks for keeping their car in great shape. Provide insight into the buying process. Even reveal “industry secrets,” so they feel like they’re part of your inner circle.