With sales growth finally leveling off, dealerships have to look elsewhere to generate additional profit. Fixed operations is where many dealerships are turning extra attention, and some are coming up with very creative ways to boost service retention.
Fixed operations is the natural place to look after seven consecutive years of year-over-year sales growth. As these cars age, maintenance needs increase, which presents a great opportunity to boost the profit potential of your store's service department.
And because fighting for retention against independent shops is an uphill battle, some dealers are finding unique ways to drive customers into the door. Check out the ways some dealerships are utilizing F&I packages to drive service retention.
Liberty Auto Plaza's Success Story
Liberty Auto Plaza owns three stores in Libertyville, Illinois, and their Kia location is driving customer retention in a unique way. Their service department has teamed up with Krex, a provider of services-based retention programs, to offer an oil change-tire protection plan combination.
Liberty Auto Plaza's Kia store offers a tire-protection coverage plan at no charge if the customer comes in for an oil change. The tires have to pass an inspection first, and their team is using it as a way to sell behind-the-wheel maintenance and parts.
Should the consumer's tires be punctured by a road hazard on a public road, the dealership will repair or replace them. Liberty Auto Plaza is having success with this plan in multiple ways because it.
- Gives them an advantage over aftermarket competitors.
- Allows customers to see the real advantages behind some value-added F&I products.
- Gets customers coming back and requesting more service.
Liberty Auto Plaza told WardsAuto that this packaged deal has reduced customers' oil change intervals to a five-month cycle. It previously hovered between six and seventh months.
Combined with the fact that it allows consumers to pay greater attention to their wheels and tires, this has led to an increase in additional maintenance work as well.
This reminds us of the findings from a 2016 Vennli survey. They found that only 36% of respondents go the dealership for service, with only 22% doing so for oil changes. However, Vennli noted that 91% of those who do get oil changes at the dealership also get service done there.
Getting them in the door is the hardest part, and everything becomes easier once that happens. Pairing different F&I packages to common services such as oil changes is a great way to get the ball rolling.
The Big Picture
Creative ideas like this can help dealerships become customers' go-to destinations for maintenance needs. It might be time for your store to try something like this to boost service retention.
Service retention is a great way to drive additional revenue, but so is utilizing Auto Credit Express. Our industry-leading special finance leads and LotPro software can help your store boost its gross profit on each and every subprime sale.
Learn more about what we can offer by giving us a call at 888-535-2277 or by filling out our contact form online.