Running a profitable service lane has never been an easy task. Over the past year, it’s been tougher than ever. Social distancing notwithstanding, customers should expect to receive a full-service experience at the dealership. But how do you maintain a cohesive customer relationship when customers are increasingly interested in online shopping and contactless service? Maintaining all […]
This should go without saying, but vehicle sales are not the only significant source of income at your dealership. In fact, most dealers work hard to make sure their fixed operations, and specifically their service departments, are important contributors to their overall revenue and dealership profitability. Service contracts and extended warranties can play an important […]
As the old saying goes… The only way to increase profits is to reduce expenses and/or increase revenue. And, while this is generally true, in the service lane it’s easier said than done. In an ultra-competitive industry like retail automotive, you don’t want to raise prices and scare customers away, which leaves reducing expenses. And, […]
Customer retention is huge for service lanes. Improving retention could mean the difference between a thriving business and a failing one. You know how hard and expensive it can be to get customers to your service lane in the first place. Don’t lose them once you’ve got them. Use these strategies to make first-time customers […]
In the service lane, increasing profit relies on the culmination of several small actions. However, many service managers overlook the details because they are too focused on increasing repair orders and hitting metrics. They don’t always realize that meeting sales goals is all about the (seemingly) little things. Superb customer service and efficient processes are […]
In the service lane, increasing profits relies on the culmination of several small actions. However, many service managers overlook the details because they are too focused on increasing repair orders and hitting metrics. Superb customer service and efficient processes are the foundations of generating revenue – it’s called the service lane after all. So, here […]
It costs dealerships 7 times more to gain new customers than to keep existing ones. In fact, Harvard Business School found that increasing customer retention by just 5% can lead to a 25%-95% profit increase. However, due to technological advancements, cars live longer and people are keeping them longer (around six years for the average person). But […]
The dealership loyalty landscape is changing by the day. As boomers age, millennials are driving industry behavior, yet most service departments refuse to adapt. If you sit idly by, you’ll miss out on profit opportunities. And because customer loyalty is an ever-changing trend, service departments need to keep ahead of it. So, here are some common misconceptions […]
Recent statistics show that a dealership’s fixed operations department generates 50% of its total gross profit, putting a lot of pressure on advisors to drive service lane revenues. But you already know that—you feel the stress of finding new ways to write more hours per RO every day. What you might not know is that, […]