The opportunity in the Canadian dealer fixed ops: Loyalty & satisfied repeat customers
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Canadian service customers are spending more dollars at dealerships than in prior years, and dealers account for nearly half of service visits while commanding a 63% share of the revenue, according to the JD Power 2026 Canada Customer Service Index – Long-Term (CSI-LT) Study.
But the growth opportunity — for dealers and aftermarket providers, alike — is in, “earning customer loyalty through the quality of the service experience,” says J.D. Ney, who is JD Power Canada’s managing director.
“Higher service costs are creating more revenue per visit, but they are not necessarily creating a larger service market,” Ney said in a news release.
“For dealerships and aftermarket shops, the opportunity is therefore less about relying on market growth and more about earning customer loyalty through the quality of the service experience, particularly as the mix of vehicles coming through service bays continues to evolve.”
That evolution may be electric. More on that in a bit, but first, the numbers.
Looking at all service facility types, the average spend per visit in Canada for vehicles ages 4 to 12 is now $443, according to the JD Power study, up from $415 a year ago.
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Average service spend per visit at dealerships has reached a record $566. That is up from $539 last year but also 51% higher than the average in 2020 (when it was $375).
At aftermarket shops, consumers paid an average of $323 per visit, which is 7% higher year-over-year and 34% more than the 2020 level ($241).
Customers service their vehicles an average of 1.8 times per year at dealerships and 1.5 times annually for aftermarket providers, according to JD Power. Both numbers were unchanged from a year ago.
Dealerships accounted for 49% of service visits (up from 48%), aftermarket chains had a 28% share of visits and independent shops had a 23% share.
Dealerships commanded 63% of the market’s total service revenue, thanks higher service charges per visit and often more complex work, JD Power said. That’s likely to remain static, reflecting the lack of growth in the vehicle population.
One thing that is expected to grow in the prevalence of battery electric vehicles and zero emissions vehicles, which could especially impact automotive aftermarket.
JD Power is forecasting that BEVs and ZEVs will account for 43% of Canadian new-car sales by 2035, with that number growing to 60% by 2040.
“While the aftermarket currently captures 51% of all ICE (internal combustion engine) vehicles serviced in the studied vehicle age range, it sees only 34% of service occasions and 28% of the associated revenue for ZEVs,” JD Power said in the release.
“One key factor driving that gap is trust in a service provider’s capabilities. Slightly more than one-third (36%) of ICE vehicle owners say they trust dealerships with complex repairs,” the company said. “That number jumps to 42% among ZEV owners. Bridging that gap will be critical for aftermarket providers as Canada’s EV adoption rate climbs during the next decade.”
For dealers, it’s crucial to continue building that trust.
Consider these key drivers of customer satisfaction,
Aftermarket provides scored higher (91%) than dealers (89%) on providing customer-focused service advice, completing work correctly the first time (94% for aftermarket, 91% for dealers) and fast vehicle pickup (69% vs. 52%), JD Power said.
What’s more, the customer’s experience is the biggest indicator of what dealership they choose next time around.
Forty-seven percent of dealership service customers picked that particular dealership because of their prior service experience with that store, JD Power said.
Twenty-eight percent cited location and 23% cited prior experience with the dealership sales department.