How To Override The Downturn In Car Dealership Revenue

As predicted, auto sales for this year have been on the decline across the nation. That doesn’t mean that auto dealerships are down and out, but it might mean that they have to try to figure out how to grab their share of the auto sales pie. It isn’t so much that new-car sales are going to be “doom and gloom” in the long term; it is just that dealership owners and operators will have to look in other places for additional income.

Dealerships looking for increased streams of revenue are missing a huge chunk if they aren’t focusing on their service department’s capabilities. Statistics indicate that only about one of every three service repairs on cars happens at dealerships. That means that there is untapped potential. Instead of only focusing on making the sales, dealerships would do well to keep their client base and continue to offer car repairs for both new and used vehicles.

So why such low service numbers?

The low number of returning consumers for repairs is based on many factors, most of which point to low satisfaction and a severe lack of loyalty from the people who buy cars from dealerships. The only way to determine why you don’t have your client’s loyalty is to dismantle your sales model and figure out the vulnerabilities and what you aren’t doing effectively or efficiently to service cars.

The problem may be that car dealerships Langley have relied too long on the revenue from selling cars and have not considered their other options. While other service areas are looking for creative ways to build customer satisfaction and loyalty through the use of technology, dealerships are focused primarily on only making the new and used sales. If dealerships added the component of customer satisfaction and built up the loyalty to have their clients return for service, that would produce twice the success.

Where to start?

The first place for any dealership to start to increase your service sector is to find technology that not only makes repairs easier and more foolproof, but that also increases the satisfaction of those customers who do choose you for their car repairs. The best advertising that you have at your disposal is still word of mouth. You have to make sure that everyone who uses your service station has nothing but a positive experience.

The first place to start is through customer education. They shouldn’t have to wait until they are in need of auto repairs to consider the options available at your dealership. Whether the consumer is looking for a new or used car, your salesforce should be singing the praises of your “full service” approach and expertise. Even when making the sale, salespeople should be incorporating the convenience of things like scheduling maintenance appointments online and other amenities available to them.

Car owners are busy, and it is a huge hassle when their car breaks down or needs repairs. Giving your customer the option to schedule things online at their leisure is a huge convenience. Other things that will add a special touch are options like text confirmation, promotions for loyal customers, and discounts on service at various mile markers.

The key to successfully operating a dealership is to find your niche and to maximize it to make it work for you. If your service center is mostly sitting idle, then it is an untapped resource just waiting to be used. To create customer loyalty, you have to give back to your consumers and provide them with an incentive to choose you over other options.

Updating your technology to make it more accessible for your clients, instead of making them work their way into your service center, is the key to bringing in multiple streams of revenue for your Langley dealership.

Selling new and or used cars is always going to be a major focus, but don’t sacrifice the other services you have available that can be just as lucrative. If you catch up with the times, market and educate the consumer effectively, and create attractive conditions for them to choose you for repair service, then you can make your dealership twice as successful as it is right now — even when there is a downturn in car sales. Check out all the amazing promotions and amenities that Langley dealerships offer to their client base.