Pre-paid and complimentary maintenance plans boost customer retention at auto dealership service departments. This is a realization as our generations of home auto repairman or weekend mechanics seem to be getting older and older.

Nearly three of five polled consumers with such plans say they are likely to continue servicing their cars at a dealership after their plans expire.

That compares with average dealer post-warranty retention rates of 22% to 40%, depending on vehicle make and age.

These programs can more than double service business that typically bleeds to the aftermarket.

“Everyone potentially is a prepaid maintenance customer,” says Jeremy Johnston, a finance and insurance manager who sells them at Suburban Ford of Sterling Heights, MI.

But the study indicates a minority of car buyers opt for the F&I add-on that covers oil changes, tire rotations and service not related to repairs.

The survey says 22% of car owners currently have a maintenance plan. Of those, 15% are complimentary plans such as  ToyotaCare, Experience Buick and BMW Ultimate Service, while 7% are purchased.

The plans seem to attract young car buyers. I agree with this.  Young car buyers haven’t typically worked on their cars or saw a parent work on their auto. These are the  Gen X , Y’s or  Millennial.

Car owners under age 35 are more likely to have a maintenance plan (31%) than those older than 35 (18%), the survey says.

Consumers age 25-34 show the highest level of satisfaction (84%) compared with all other age groups (62%).

Other study findings:

One in four customers still stray from the dealership while under a plan, indicating that dealerships still must actively seek to retain customers.
Consumers who do not have all service performed under the plan are significantly less likely to continue servicing at that dealership.
If dealers and auto makers believe they needn’t worry about keeping these customers close and satisfied until a plan expires, this data clearly shows that those beliefs need some revising.

A clear process that works in your service drive like the processes coached by Jack Lupo and Dealer Service Academy will help to maintain that client coming back. Service Teams have to maintain that communication whether it be texting phoning or emailing updates through out the day to there clients. Our clients want instant information.

A surprising 25% of people with free or pre-paid maintenance plans say they have only used them for some of their covered services. “That could reflect a lack of convenience typically associated with dealership service centers, but one we like to help correct.” Jack Lupo Dealer Service Academy says

The Study was performed by DME Automotive.

In this series of articles We will be sharing information about text messaging with customers – Lets talk about the benefits first.

As we all know just about every customer that enters a dealership service department has a cell phone with them in their hand and paying attention to every ding or texting notification tone they have on their phone and text message that is received.

Did you know that the average text message is read within three minutes? That means that they are quickly available! Another aspect is the fact that 94% of those messages are read by users.

Benefits of texting customers include some of these examples from a dealership perspective:

CSI – As all retail dealerships know a key to the drivers of CSI is communication with customers as they go through the service process. Sending text messages to confirm and follow up after the visit will show attention to the customer and in turn increase CSI.

Marketing – Advertising agencies recommend that businesses use Texting to build opt-in databases to send promotions and announcements to subscriber’s cell phones.

Other Customer Focused Services – Doctors, dentists, salons, and other service companies use texting to send appointment reminders and confirmations. This shows that customer have become familiar with texting and expect customer based services to update them on regular basis.

In the next article we will outline how special offers can increase business for your service department.

Do you remember the pride you felt when your kid hit that game-winning homerun or executed the perfect pirouette? How do you imagine close friends feel when they bag that long-awaited, much sought-after promotion? Don’t your customers deserve to experience those same feelings each and every time they trust you with their vehicles? Arming your Service Advisors with exemplary Service Advisor Training skills accomplishes this goal two-fold: they’ll consistently hit it out of the park with record- breaking gross profits and your customers will feel like royalty each time. Do your customers feel as if they’re kings? They are already rulers of your company’s kingdom, so put a little imaginary crown on them.

The King’s Ruling

Oftentimes, your kings will make inconvenient, random request rulings on your Service Advisor. You can either watch him blunder as he stubbornly refuses to consider their request or you can provide Service Advisor Training that teaches him how to tactfully compromise and reach a happy medium with your majestic clients. They won’t stage a revolt if they are left with the impression that you have given into their demands. You’ve both met their needs and created a positive, lasting image.

Absolutely Essential: The Walk-Around

Optimize the opportunity to elevate your customer’s experience: Whenever possible, the Service Client should accompany the Service Advisor on the walk-around to allow the Advisor to advise them on their vehicle, answer questions, educate and enhance the consumer’s confidence, as well as point out any future, potential problems. It’s an excellent time to point out visual needs, recalls and safety issues; moreover, it provides a tremendous opportunity for upselling. Remember, the “S” in Service actually stands for “S” in Sales.

The Service Advisor should have an electronic or hard copy clipboard with a vehicle diagram so they can check wipers, tires or annotate obvious damages. Be vigilant about documenting minor dents or scratches. Upon pickup, this alleviates allegations that any existing damage occurred while their royal chariot was in your service department. Allow for additional space for customer ideas and comments. If you do not have this rather detailed form, you are doing your profit margin ands your clients a huge disservice.

Service Advisor Training teaches a myriad of ways to inspire loyalty from each customer encounter; this is just the tip of the iceberg:

• Whether it’s in person, by DMS software, online check-in or iPhone, greet them by name
• Keep all service areas clean
• Keep them informed of their vehicle’s status throughout the day through emails and text messaging
• Provide updates of additional, unexpected issues found
• Point out mechanics credentials and mention all awards and honors
• Offer transportation, if necessary

Most likely, your Service Advisor is the hub of your organization. They are your rock star; yet, oftentimes, have so many balls in the air that  can’t see the wood for the trees. Everyone is competing for attention and vying for  time and direction. If armed with the training tools that allow to pull the team in the same direction, he will be able to simultaneously focus on the essentials.

Ask yourself this: Have you provided your main player with the keys to unlock the big payoffs? Do the numbers show that this Service Advisor Training has “stuck?” Do they regularly go over procedural guidelines with staff before each shift? Conversely, are they complacent with managerial duties, confident that you are satisfied with the work ethic? Common sense tells you that the training must extend far past the orientation period. Reinforced training ensures ongoing development, which guarantees multiple returns on your investment.

Your front-line Service Advisor is a powerful influence over customer retention. They have to know how to motivate the automotive service staff to stay the course. To sustain your business, especially during the lean months, the Service Advisor Training must be reestablished and ingrained on a recurring basis.

Sustainment: Your Sustenance; Your Bread and Butter

In this economy, competent customer service may leave a customer merely satisfied. This is simply not good enough anymore; everyone has had to step it up a notch or two. Surprisingly, in most cases, pricing is not even an issue for sustainment. People want to be “emotionally connected” to your place of business. According to the latest Gallop Poll, clients typically spend almost 50 percent more on service when they believe in the organization’s methodology. Superior Service Advisor Training sensationalizes your customer’s service experience; it bonds them to you for life.

Does Your Service Advisor Have the Seven Cs?

• Commitment
• Capability
• Competitiveness
• Confidence
• Communication
• Cognitive Reasoning
• Coachable

Smart business owners understand the monetary justification for onsite training. They strongly encourage it and provide varying training opportunities to develop similar work mentalities, such as mentoring, internal education and onsite seminars geared towards their business. A successfully trained Service Advisor creates an enthusiastic learning environment for their team. They communicate expectations daily and facilitates continued training. Your business model is not only solidified, it is part of their DNA.