The Value of Service Retention

When customers walk back through your doors for servicing, they’re walking billboards of loyalty. Research consistently supports the assertion that retaining customers is cost-effective and profitable for businesses. 

According to an older but still valid study by Bain & Company, increasing customer retention rates by just 5% can increase profits from 25% to 95%. Why? Customers who return for servicing or repeat purchases tend to spend more and often opt for premium services or upgrades.

In the context of dealerships, this rings especially true. Consider that, according to a National Automobile Dealers Association white paper, the service department should strive for 72% or higher gross retention in every category. Your customer-pay labor (car, truck, and other) should account for 60% of your total labor sales, with warranty and internal contributing 40%.

 Moreover, customers with a positive service experience are more likely to return for their next vehicle purchase.

But the benefits aren’t limited to direct revenue. These repeat customers often become brand advocates. They’re the ones who’ll vouch for the quality of your service to friends, family, and in online reviews. 

 Today, where word-of-mouth can be amplified through social media and online platforms, the ripple effect of a satisfied returning customer is invaluable. They don’t just maintain a revenue stream; they bolster the dealership’s reputation and draw in new customers, effectively serving as ambassadors of your brand. 

Understanding Modern Car Owners

While digital experiences unquestionably influence today’s car owner, it’s not just about flashy tech and online accessibility. A recent study indicates that while nearly 90% of consumers use the internet for vehicle research, the in-person dealership experience, especially post-purchase for services, is just as crucial.

Your customer values convenience and transparency. They might appreciate a seamless online booking system, but they equally value clear communication about what’s happening with their vehicle. They’re data-driven but also desire the human touch – quick responses to their queries, clear service explanations, and understanding of their vehicle’s care needs. 

Digital Advertising Essentials for Service Retention

Today’s customer journey is intricately woven with digital touchpoints. This means an opportunity for dealerships to craft precise campaigns that resonate personally with each customer. With the right tools, from timely emails to strategic social posts, you can ensure your clients are not just served but delighted. Dive into the essentials:

• Targeted Email Campaigns: Drop personalized service reminders, updates, and exclusive offers directly into your customer’s inbox. Make them feel like the VIPs they are.
• Retargeting Ads: Have you ever had customers browse your service offerings but not make a move? Nudge them back with compelling retargeting ads.
• Social Media Engagement: Beyond memes and viral videos, platforms like Facebook and Instagram offer a space to share service testimonials, provide glimpses into your service process, and spotlight any promotions. 

Leveraging Data with PureCars

Information is power. With PureCars’ robust digital advertising tools, dive into your customer’s journey. PureCars provides dealerships a competitive edge with its suite of digital advertising tools tailored for automotive needs:

• Dynamic Inventory Ads: No more one-size-fits-all! Ensure your ads reflect real-time inventory, dynamically showcasing vehicles that cater to individual customer preferences.
• Search Insights: By understanding what your customers are searching for, you can optimize your website and ads for those specific keywords. Whether it's a particular service or a vehicle model, be there when and where they're looking.
• Behavioral Retargeting: PureCars doesn’t just retarget based on a visit; it goes deeper. Suppose a customer views an SUV or looks into specific service offers; the retargeted ads they see will be tailored to those interests.
• Custom Audience Creation: Segment your audience based on their behavior, vehicle preferences, service history, and more. This allows you to deliver ultra-personalized ads, increasing the likelihood of conversions.
• ROI Reporting: Know where every advertising dollar is going. PureCars provides comprehensive ROI reports, allowing dealerships to see which strategies are working and which need rethinking.
• Competitor Analysis: Stay ahead of the local competition. By understanding what rival dealerships are up to, you can craft strategies that offer something more compelling.

The crux? With PureCars, you're not just advertising; you're having a meaningful conversation with your customers, ensuring your service retention strategies are as dynamic, responsive, and efficient as the vehicles you offer.

Interactive Tools and Platforms

You may have noticed that Google’s automotive research mobile searches related to “car repair” and “auto service” have grown by over 30% in recent years. Offering online service scheduling isn’t just a perk—it’s expected. 

Current tools like chatbots or AI-powered solutions can be incredibly effective. In their Customer Service & Support Practice, Gartner reports that these technologies are critical to continue to shift customers’ transactional issues to self-service so reps can focus on more complex issues.

• Online Service Scheduling: Offer customers the ease of booking their next service appointment with just a few clicks.
• Chatbots and AI Solutions: Got questions? These digital pals are here 24/7 to provide instant answers about services.
• Mobile Communication: From appointment reminders to service updates, ensure you’re a text or notification away.

Building Trust Through Transparency

A survey by JD Power found that trustworthiness is the top quality consumers look for in a dealership. This extends beyond sales and directly into the service domain. 

 Customers aren’t just looking for service; they’re seeking clarity. Using digital platforms to offer real-time updates, visual verifications, and transparent pricing structures can go a long way in establishing and maintaining that trust.

Special Offers and Loyalty Programs

Delight and loyalty often walk hand-in-hand. Digital incentives and loyalty programs become small tokens of immense appreciation, ensuring customers keep coming back.

• Digital Promotions: A little ‘thank you’ goes a long way. Offer digital promotions tailored to your repeat customers.
• Loyalty Programs: Whether through a mobile app or a traditional punch card, reward consistency and commitment.

Feedback and Continuous Improvement

ReviewTrackers’ automotive study suggests that 53% of customers expect businesses to respond to their online reviews within seven days. 

But a prompt response to both positive and negative feedback is not just about meeting expectations—it’s an opportunity. Addressing concerns or thanking customers for their feedback can significantly influence public perception and show that the dealership values its customer base.

Driving Forward: Digital's Role in Future-Proofing Service Retention

Service retention in today’s dealership world isn’t merely about wrenches and oil—it’s about pixels, data, and digital dialogues. The game has changed, and it must evolve to stay ahead. Digital advertising is your secret weapon. So, as the auto world revs up for the future, ensure your dealership isn’t just in the race but leading the lap in service retention.