When it comes to dealership profitability, your service department is a key component to generating revenue and adding to your bottom line. Therefore dealership service marketing is a key part of success.
American consumers are keeping their cars longer than they did in the past, so while they aren’t buying new ones as often, their older vehicles do require more maintenance. In fact, NADA reported that in 2018 new car dealerships attributed 16.2% of their profit to parts and labor.
So how can you make sure that your service department is staying competitive and helping to build loyalty among your customers?
1. Target Locally
Research shows that customers are likely to seek service for their vehicles within a 10-mile radius. With this in mind, market to your existing customers and other local brand owners with a message of proximity and convenience.
2. Create a Groupon Offer
Start here.
3. Utilize Social Media
Enlist the powerful geographic and lifestyle capabilities available on social media platforms to micro-target consumers in your local market. Make sure that you are recognized as a one-stop-shop not only for sales but also for oil changes and other repair issues that customers might otherwise have performed at other local shops.
4. Show Why You’re Worth It
One reason why people avoid a dealership’s service department is because they think it’s more expensive than other repair shops. Consequently, when the warranty expires, customers are much more likely to take their vehicle to Greasy Mike’s down the street where they think they’ll get a better deal. Automotive industry data does show a slight difference in costs, but it’s important to market the reason for that difference. Why trust your vehicle to the local mechanic when the local dealership has expert service technicians and genuine factory parts that will keep aging cars safe and performing their best for years to come.
5. Use Best Practices
Time is of the essence with repairs, and it’s important to address this consumer demand head-on. With quick lubes on every corner, many people don’t want to take the time to make an appointment for services such as tires, brakes, lube, or air conditioning recharges. Can you dedicate a bay to these types of services and then market it to your customers to lure them away from quick lube franchises? Expert service. Drive-Up Convenience. Competitive Pricing.
6. Focus on Analyzing Conversions
Finally, what are you doing to convert service customers into car buyers? Do you have the right people and processes in place to ensure an excellent customer experience? Industry data suggests that customers are three times more likely to purchase from a dealership where they’ve made five service visits. It’s important to have an employee dedicated to service conversion which can be attributed to an advertisement so you can see real ROI. This person must be able to identify sales prospects, establish connections, have the authority to structure an offer and close a sale, or stay in touch and continue to work towards closure.
Want to take your automotive marketing to the next level? Let’s take a spin.
