Will 2024 be the 'Year of the Service Drive' for car dealers or the local repair shop?

According to a 2023 Cox Automotive study, a concerning trend in the automotive service landscape continued last year: dealership service visits accounted for 30% of all service visits in the U.S., down from 35% in 2021. Conversely, the average vehicle owner found themselves visiting service or maintenance facilities 2.5 times a year, up from 2.3 times in 2021. This shift underscores a growing preference among consumers for local quick service and small repair facilities. As we navigate the uncertainties ahead, particularly for the sales side of dealership operations, it's imperative that we increase our attention to the service drive and prioritize customer retention.

Among the primary reasons cited by customers for seeking alternatives to dealership services are trust and expense. While the perception of higher costs can be debated, there's no denying the erosion of trust customers feel towards dealerships in recent years. Rebuilding consumer confidence is a multifaceted challenge, but one effective avenue lies in the mobile vehicle check-in (VCI) process conducted by service advisors.

Why is performing the VCI at the customer's vehicle so crucial? Consider the intimate relationship individuals have with their cars. Our vehicles serve as more than just modes of transportation; they're extensions of our lives, accompanying us on daily commutes, family trips, and moments of solitude. Stepping into a dealership service drive and initiating a conversation about car maintenance can feel daunting for many customers. However, when approached at their vehicle by a friendly advisor, the interaction becomes more familiar and comfortable, setting the stage for trust to blossom. As the advisor builds the relationship with a customer at their vehicle, it allows for a better explanation of estimated costs and work to be performed and expectations can be set for continued communication which is one of the primary complaints about vehicle service experiences, not knowing what is going on.

Along with a strong VCI process, text updates validate with customers that they were not forgotten and increase the trust that their vehicle is in good hands. These days everyone texts and a text message can be checked in nearly every situation from a work meeting to a visit to the market, increasing the probability of a quick customer response when additional recommendations are made. Sending a digital Multi-Point Inspection in a text with photos and even video accompanying any recommendations ensure the customer doesn’t have to rely solely on the word of the service advisor and has the proof needed to make an informed decision.

By implementing mobile VCI alongside transparent communication measures like text updates and digital MPIs, dealerships can start chipping away at the trust gap and recapture a segment of the customer base shifting towards alternative service providers. Remember, it's not just about fixing cars anymore, it's about building relationships and exceeding customer expectations at every touchpoint. By prioritizing customer experience and embracing these innovative approaches, dealerships can navigate the changing automotive landscape and ensure their service departments remain a trusted partner for car owners well into the future. As an industry, we have been talking about the ‘consumer experience’ for a while now and there is still a perception lingering that a better customer experience means less dealer profit however data clearly shows that gross per RO increases significantly with text updates and photo/video-enabled digital MPI so the better experience in the service drive is a true win/win!

If you would like to discuss your service drive I am happy to share my thoughts and how UpdatePromise could be the Service Lane Technology solution that your dealership needs, let's connect!