By Jason Unrau
Customer retention at the dealership level is abysmal after a customer’s new vehicle warranty expires. Extended service contracts help somewhat, but the Cox Automotive 2018 Service Industry Study shows that, at best, 33 percent of vehicle maintenance and repairs happen at the dealership. Keep in mind, that doesn’t even mean it happens at the selling dealership.
It’s obvious that customers don’t trust dealerships. Focus groups have shown that the general public believes dealerships are obscenely expensive, usually with the perception that their service department charges double the rate of an aftermarket provider. That’s why customer defection rates are so high.
And whether you think your clientele are loyal or not, they’re shopping you for price. On average, car owners call around for two additional quotes before deciding who will get their business.
Price matters.