Fixed Ops Journal - October 2022 - F16

Service Customers
Are Up for Grabs
New Service Shopper 2.0 Study Reveals Shifts in Attitudes Around Providers
Dealers continue to face headwinds when it comes to luring
service customers away from other providers.
Service Shopper 1.0, a CDK Global research study conducted in
2020, shared vital statistics that revealed the gap between dealer
expectations and consumer behavior and provided insights on
ways dealers could close the gap. This year, we followed up with
Service Shopper 2.0.
In addition to reviewing how these expectations and behaviors
have changed over the past two years, it also includes new
findings such as how customers booked their appointment,
the easiest and most difficult parts of their Service experience,
their driving habits, maintenance philosophy and many other
behavioral factors that help provide dealerships valuable
information that can lead to higher retention rates. It also includes
valuable data on vehicle type such as EVs.
Survey Says ...
The most significant finding was that since our last survey,
Net Promoter Scores (NPS) were down for everyone in 2022.
Independent Repair facilities took the biggest hit with scores
plummeting from 63 to 49, which puts them much closer to
dealers (at 44) and chains (at 43).
While this creates a more level playing field, the fact remains:
customers continue to look outside the dealership for service.
23%
Sponsored Content
of customers that most
frequently visit dealerships
for service switched to other
service providers in 2022
Cost of Service Continues To Drive Customers Away
Inflation is at levels we haven't seen in more than 30 years.
Even though loyalty numbers remain the same and customers
say they prefer going to the dealership for service, it's no
surprise that when they do switch, high prices and the
perception of needlessly being upsold continues to drive them
to less expensive alternatives.
So what can you do to change that?
Don't Just Tell Customers You Value Their Business
- Show Them
Loyalty programs or " friends and family " discounts would address
the price concerns and motivate customers to visit the dealership
for service. A little incentive can go a long way in driving
customers back to your dealership.
Also, if customers need additional service work, they want to know
why. So it's important that you show them - literally. It's critical
that the Service Advisor or Tech is transparent and detailed about
why the additional service charge is warranted. Texting photos
and videos of what needs to be done helps build trust and remove
the suspicion of being needlessly upsold.
What Are the Consequences of Fewer New Cars
on the Market?
New car sales are down 10% to 15% over the past two years. That
means there are that many fewer newly sold cars under warranty.
And as people hold onto their cars longer, there are fewer total
cars under warranty as well. And historically, customers who aren't
under warranty go elsewhere for service, while those under warranty
generally look to dealers for their OEM expertise. But not always.
https://www2.cdkglobal.com/l/146251/2022-09-07/35g3tc
Fixed Ops Journal - October 2022

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