Loyal service customers are extremely profitable. Not only do these customers spend their time and money in the service bay, but 55% of used car buyers who service at a dealership will buy their next vehicle there. Although price and speed of service are essential to bring new service customers in the door, it’s your vehicle expertise, and most importantly your relationship with the customer that will keep them coming back. So what can you do to turn something as predictable as a regular maintenance into a relationship-building opportunity that motivates customers to visit you again?
It doesn't have to be complicated
There are two ways to look at building loyalty and offering something unique to enhance a relationship with your customer: things you can do so they have a better experience, often at no material cost to you, and perks or programs that give customers more value.
When it comes to the free side of improving your customers’ experience, understand that they want a convenient and predictable experience. A majority of used car buyers would be motivated to visit your shop for service if they had a guaranteed appointment start and finish time, as well as a personal service adviser who knows them and their vehicle when they visit. They would also appreciate if all their service records were tracked on a vehicle history report, so there would be no need for them to worry about digging up a pile of receipts when they decide to sell their vehicle.
| 62% |
Guaranteed appointment start and finish times |
| 53% |
A personal service adviser |
| 52% |
All service records to appear on a vehicle history report |
Going the extra mile
It shouldn’t be a surprise that customers try to reduce the inconvenience of having their vehicle in for repairs. With that in mind, used car buyers want you to provide them a loaner vehicle while their car is in the shop. If that’s not an option, providing the customer an on-demand ride from their home or office via a taxi or rideshare service, compared to waiting for a service driver, is also a desirable perk. Finally, having a loyalty program that rewards a customer’s ongoing business with discounts on future service will also motivate them to keep coming back.
| 72% |
A free loaner vehicle if their vehicle is in the shop for the day |
| 62% |
A loyalty program that gives discounts on future service |
| 54% |
Transportation to and from the dealership via taxi or Uber |
Great relationships create loyal customers
Overall, if you put in the extra effort to make your customers’ lives easier they will reward you with their continued loyalty to your shop. Whether it’s by making their visit to the dealership more predictable, the time without their vehicle less inconvenient or helping them skip the task of hording service records, they will appreciate it. It doesn’t hurt if that loyalty also comes with a monetary reward if they’re getting service often enough. Just make sure to promote these programs with your current and previous customers; they’ll need to learn about them before they’re convinced you’re better than the average dealership.
Drew Harden is manager of research & insights at CARFAX Canada. Driving Insights is an information series designed to help used car dealers better understand the motives and behaviors of Canadian used car buyers. The research, designed by CARFAX Canada and executed by Dynata, is based on the most pressing questions of dealership management and staff across Canada, answered through a national survey of 1,000 Canadians who recently bought a used car from a dealership. If there’s a question you’d like us to address, email insights@carfax.ca and we’ll get you some answers
Service shop customers have an option to pay for repairs before picking up their car thanks to a newly launched service from VenueVision Media Systems.
Mobile Cashier is an express e-payment solution for parts and service departments that sends dealer-branded notifications of repair completion along with a copy of the invoice to customers’ smartphone, tablet or PC.
“Mobile Cashier is an innovative leap forward for auto dealers and their service customers alike,” said Dave Hooper, president of VenueVision. “This express e-pay solution allows service customers to skip the cashier line and pick up their vehicle at their convenience while drastically reducing the 5 p.m. rush for dealership staff. In the competitive, fast-paced automotive marketplace, great service with an emphasis on ease and convenience is vital.”
Here’s how Mobile Cashier works:
1. When a service repair is complete and ready for pickup, the customer is automatically notified by email or text with a copy of the invoice and a link to the dealer-branded payment page (pre-populated with the customer’s name, invoice number and invoice amount).
2. The secure payment portal prompts the customer to enter credit card information, then completes the transaction online and notifies the dealer’s cashier of confirmed payment.
3. The customer receives a text or email confirming payment, then is free to pick up their vehicle when convenient.
Customers can access the dealer-branded Mobile Cashier from any mobile or PC-based browser without specialized hardware or software requirements. Mobile Cashier is fully integrated with VenueVision’s service applications, enabling it to complete transactions in real time.
For more information, visit www.venuevision.com.
Xtime this week shared analysis that takes a look at how recall service appointments can lead to increased service revenue and opportunities for future business.
Since 2014, there have been more than 10 million vehicles recalled in Canada, and during the past 12 months, Xtime has processed 3.2 million service appointments with recalls through its Xtime Retention System’s recall integration feature.
The company said during that same period, each dealer client was seeing an average of 84 recall appointments monthly.
Xtime management explained these recall appointments serve as a great opportunity for franchised dealers to remind owners of other reasons to return to the store for service, such as tire alignment, tune-ups and more, potentially securing more service revenue and perhaps, a repeat customer down the line.
Interestingly, in Xtime’s analysis, the company found that even though recall fixes are done at no cost to the customer, these recall-related appointments often generate pay, as well. In fact, according to Xtime, approximately 50 percent of recall-related appointments generate customer pay, and dealers can see an average of $9,600 per month from these appointments.
And, of course, those that don’t pay, still serve as an opportunity to increase future service business.
DGDG fixed operations director Tully Williams said recall integration tools in the service department can help dealers save time, as well, in a recall-heavy environment.
“With safety being such a major concern now, Xtime’s recall integration makes it so easy for us to take care of recall customers. When we make an appointment in house, the recall information automatically populates, which means we don’t have to spend extra time looking up anything manually in the manufacturer’s website,” Williams said.
"This saves us a great deal of time and streamlines our service drive. It’s also very easy to use — I can train anyone in the dealership on how to access recall information for any appointment because the information is automatically in the system. Xtime’s recall integration makes everything simple, fast and accurate," he went on to say.
And with tools such as this one that are integrated into the service system, when a customer calls in to make an appointment, they can easily be alerted to recalls associated with their VIN number, and could also help to make sure the service department is prepared to receive the vehicle.
“Having an accurate snapshot of customers before they even arrive at the service drive allows dealerships to increase incremental revenue, recapture customers who had previously been lost to the aftermarket, boost repair orders and realize higher retention,” said Xtime president Neal East
Recalls are increasingly becoming an issue for dealers and manufacturers, as the slew of issues that began in 2014 hasn’t slowed much this year.
And the data coming out of some provinces illustrate this fact.
For example, according to CarProof data, there are currently about 3 million vehicles being driven on Alberta roads, and close to a half-million of those have an open safety recall.
And in Manitoba, more than one in 10 vehicles on the road in the province have been deemed “unsafe” due to open safety recalls.
These concerns, especially open safety recalls, have been top-of-mind for regulators such as the Ontario Motor Vehicle Industry Council. Michael Rothe, director of legal affairs at OMVIC, explained to Auto Remarketing Canada recalls that involve safety concerns are what falls under the legislation as a “material fact,” and these material facts must be disclosed to buyers.
Of course, dealers have a certain due diligence to enact when taking a vehicle in on trade, or purchasing at auction, since they might not be given the same benefit consumers have in terms of disclosures.
“But we expect dealers to determine whether or not there have been any safety recalls on the vehicle and make that disclosure,” said Rothe. “It also serves them well if they do a bit of homework before purchasing vehicles, and it protects themselves.”
OMVIC interprets a material fact to be something that would impact the consumer’s decision to purchase a vehicle.
“And if this is a vehicle on which there was an open safety recall, that’s obviously something that could make a difference. Maybe not every recall would qualify, but certainly a safety recall it is safe to say is certainly a material fact,” Rothe said.
Of course, most dealers realize that the happier a customer leaves the store, the more likely he or she is to come back.
That said, going the extra mile and “delighting” customers by providing an impressive service experience works to ramp up retention and also opens up pathways to significant revenue potential.
That’s according to the J.D. Power 2015 Canadian Customer Service Index Long-Term (CSI-LT) Study released this week, which measures the service experience, satisfaction and intended loyalty among owners of vehicles that are 4 to 12 years old, and analyzes the customer experience from both warranty and non-warranty service occasions.
The study found that customers are a bit more satisfied when leaving the service departments at aftermarket shops than after having their vehicle serviced at an in-dealership facility.
Overall satisfaction is based on the combined index scores of the following five factors, based on a 1,000-point scale: service initiation, service quality, service adviser, service facility and vehicle pick-up.
The study found that overall customer satisfaction with dealership service departments is 731, while satisfaction with aftermarket shops is 749.
As far as study rankings go, Lexus dealerships were tops with a satisfaction index score of 809. NAPA Autopro came in at No. 2 with a score of 775, follwed by Volkwagen dealerships, which garnered a score of 772. Wrapping up the top five, Fountain Tire came in fourth with a score of 760, followed by Ford Quick Lane with a score of 757.
And among vehicle owners who said they were “delighted” with their most recent service experience and gave the experience a 10 on a 10-point scale, 93 percent say they “definitely will” return to the facility. That’s compared to only 61 percent who rated their last service visit as an eight on the scale.
“This underscores the importance for Canadian vehicle service facilities to focus on providing a consistently outstanding customer experience,” said J.D. Ney, manager of the Canadian automotive practice at J.D. Power. “There is a significant opportunity to improve the service experience, as just 15 percent of all service occasions in the past 12 months resulted in an overall customer satisfaction rating of 10, compared with 67 percent of service occasions rated eight or below, among whom only 40 percent say they ‘definitely will’ return.”
The study found that almost half of owners of older vehicles exclusively chose an aftermarket facility for their service needs in the past year, while 33 percent said they only used an OEM dealer facility. The remaining 21 percent took their vehicle to both an aftermarket and OEM dealership.
“That remaining 21 percent of owners represents a key battleground for vehicle service market share and a significant revenue potential for service providers in Canada,” the study stated.
Take these statistics into account:
On average, owners of older vehicles who visits a service facility at least one make 1.2 visits to a dealer and 1.8 visits to a non-dealer per year, paying an average of $232 each visit.
The study found that at an average of three visits per year, each customer represents nearly $700, making the 21 percent “battleground customers” worth more than $1.5 billion in annual potential revenue.
Key takeaways
Ney also pointed out a few key performance indicators (KPIs) dealers should focus on when trying to boost satisfaction among service customers.
The top three top three performance measures and their impact on satisfaction scores, according to the study, are as follows:
- Being completely focuses on the customer’s needs (+63 points)
- Providing an appointment on the day desired (+56)
- Providing helpful advice (+53)
Another three KPIs also provide significant opportunities for service facilities to improve satisfaction, as the study found these processes are only completed 80 percent of the time:
- Having the customer speak to an adviser immediately on arrival (+43)
- Keeping customers informed on the status of their vehicle (+36)
- Contacting customers after the service occasion (+29)
And additional key finding from the study that dealers may want to keep in mind is consumer education is directly tied to satisfaction.
In fact, the study found that customer satisfaction and the amount spent on a service visit increase when a service adviser educates customers on additional work that may be needed. The results showed that 46 percent of owners indicated the service adviser recommended additional work. And of this group, nearly 50 percent authorized the work to be completed, resulting in an average spend of $526, compared to an average of $225 among those shoppers that were not advices of additional work.
Hyundai Auto Canada has chosen customer retention solutions company Xtime as its exclusive online service scheduling provider.
The automaker reported the integration is designed to help dealers attract and retain service customers.
“Hyundai has a long history of adopting the latest technology and bringing it to consumers, and this is an extension of that commitment,” said Annie Deslauriers, director of customer services at Hyundai Auto Canada Corp. “By offering our customers the ability to schedule their vehicle service online, on their own time, Hyundai dealers are standing-out from the competition with this modern premium approach.
“Xtime’s system is a proven resource that simultaneously boosts dealer business and customer satisfaction.”
Xtimes Scheduling 7 program will now power the Hyundai Car Care Scheduling platform, and vehicle owners will have the ability to schedule appointments from any desktop or mobile phone.
Customers can also pick appointment times based on service adviser, sync appointments to their personal calendars and receive text and email reminders.
And the dealership interface allows quick access to vehicle and customer history.
“A great service experience doubles repurchase loyalty, and the key to improving the ownership experience is Xtime,” said Xtime president Neal East. “Xtime’s goal is to help dealers build more value and convenience at every customer touch point while retaining trust between the dealership and car owners. We’re thrilled that Hyundai Canada embraces these tenets and have chosen Xtime as its technology partner.”
Xtime can also be used by Hyundai Dealers for the following tasks:
- DMS Integration: Xtime offers certified, bi-directional integration with dealer management systems (DMS) from CDK Global, Reynolds & Reynolds, Serti and more. Appointments booked through Xtime’s platform will appear in the DMS, keeping customer records updated at all times.
- Digital Service Menus: Online and easy-to-read menus provide manufacturer-recommended and dealer-preferred maintenance schedules based on vehicle identification number (VIN), allowing customers to be more confident in dealer service departments through increased transparency.
- Recall Integration: Consumers, dealership staff and call center agents can add VIN-associated open service campaigns to the appointment scheduling process.
The Automotive Industries Association of Canada — the national trade association representing the automotive service and repair industry — announced this week its president and chief executive officer will leave the association on May 1.
Robert Pitt, chairman of the board of AIA Canada, revealed that Marc Brazeau, the association's current president and CEO, is resigning.
Brazeau served as the head of AIA for the past 8 years, after joining the association in 1995.
He also represented the association on a number of leading industry boards and advisory groups both in Canada and in the United States, AIA management shared.
"Over the span of his 20 year career with AIA, Marc has worked tirelessly to enhance the image of our industry, to keep the aftermarket sector at the forefront of important competitive issues, to build a highly credible and trusted voice with governments, and to rally many different stakeholders to support common industry goals and programs,” said Pitt. “But above all, it was through Marc's strong and dedicated leadership, that he built a dedicated and high performing team in Ottawa, and across Canada, to advance the strategic goals and directions of the association.”
Brazeau will stay on with the association until the end of April, to help with the transition in leadership.
Though he is leaving AIA Canada, he plans to remain in the industry for the next chapter in his career.
"I have had the pleasure and honour of leading this great association through a period of significant change and growth. The constant support and contribution of a high performing team of employees and the guidance and leadership of an engaged board of directors was our recipe for success. I will forever be indebted to all my fellow team members and directors, past and present, for their commitment to excellence, day in and day out," said Brazeau.
In order to find a suitable replacement, the AIA board of directors will work with a national executive search firm in the coming weeks to begin the process of choosing the association’s next leader.
"On behalf of the entire board of directors, our dedicated team of employees in Ottawa, Montreal, Toronto and Vancouver, and our members across Canada, we thank Marc for his contribution and wish he and his family the best in his new endeavor,” said Pitt.
Now, Co-Auto dealership members have a few new options when selling service plans to customers.
This week, reconditioning company Dent Wizard International announced a new partnership with Co-Auto — a cooperative buying group dedicated exclusively to servicing new car and truck dealerships throughout Canada.
Under the agreement, Co-Auto dealership-members will be able to sell Ding Shield and Ding Shield Preferred, two options of appearance service plans for F&I.
The company shared these are the first such plans in Co-Auto’s portfolio of products and services.
“Many larger dealer groups have realized the benefits of offering Ding Shield plans,” said Aaron Cooper, Dent Wizard’s director of finance and insurance. “By working with Co-Auto, we can also provide competitively-priced plans to the independent new car dealerships in Canada, so they too can see increased revenues in F&I.”
Currently, Co-Auto offers Ding Shield plans to dealerships in the provinces of Ontario, British Columbia, Alberta and the Maritimes.
Highlighting the new service plans in greater detail, Ding Shield provides ding and dent repair using paintless dent removal, with unlimited repairs to the hood, trunk, doors, fenders, roof and quarter panels for the length of the service contract.
Ding Shield Preferred is a step up, and provides all aspects of Ding Shield, plus windshield chip repair and alloy wheel damage repair.
The plans provide coverage for up to six years and are backed by Dent Wizard’s lifetime limited warranty.
“Appearance plans sold in the F&I office are a proven way for dealerships to increase revenues in a market where margins are a challenge to maintain,” said Trevor Dawson, Co-Auto’s vice president. “And Dent Wizard is a reliable, proven source for these plans and the execution of the repairs.”
In this tight supply environment, the service department becomes an invaluable tool for securing trade-ins to feed dealership’s used and CPO departments.
Now, Mazda Canada dealers have a new tool to ensure customer satisfaction and loyalty through the service department.
Mazda Canada announced it has chosen Xtime for its exclusive provide for service scheduling via online, dealership and mobile device channels.
“To keep pace with rapidly changing consumer preferences and increased customer expectations, Mazda Canada has selected Xtime as our exclusive technology partner for all online service appointment scheduling services,” said Mazda Canada senior director of customer experience Mike Collinson. “Xtime is a great addition to our customer service and retention tools, and we are excited about our partnership.”
Mazda’s 163 dealership service departments in Canada are now able to take advantage of Xtime’s service scheduling and check-in platform, the automaker shared.
The automaker highlighted just a few of the tools Mazda Canada dealers now have at their disposal:
- Xtime’s Scheduling 7 gives Mazda owners quick and efficient access to dealership scheduling. With multi-channel capabilities, customers will be able to browse online or through smartphones and select appointment times based on availability, adviser and transportation. With this online access, customers can schedule any service or repair 24/7, while anyone in the dealership can answer the phone, address customer questions and book service orders.
- Xtime’s Check-In 7 frees Mazda service advisors from their desks, automating the check-in, walk-around, menu selling, tire selling and signed estimate process. With Check-In 7 delivered by ServiceTab on iPad, advisors can greet customers at their vehicles on the service drive, providing a consistent and professional write-up.
- The Xtime Cloud powers both solutions and provides secure, consistent and accurate access to factory menus, dealer recommendations, declined services, pricing, promotions, shop availability, repair history and RO status.
- Earlier this year, Xtime released the Xtime Retention System, the first end-to-end retention system for automotive retailers to solve the industry’s low retention and utilization problems. It is comprised of products that integrate key touch points of the service experience into a unified and easy-to-use system for consumers and service personnel.
“We are delighted to finally be working with Mazda Canada,” said Neal East, chief executive officer of Xtime. “We are impressed with its commitment to providing an exceptional service experience to its customers and we’re committed to helping Mazda Canada achieve its vision.”
