Reposition Your Service Center to Win Over Customers

A dealership’s service center can drive revenue to your store – or it can drive customers away. Recent research from Cox Automotive provides valuable insights into industry trends, challenges, and opportunities, empowering service providers to enhance their offerings and elevate customer satisfaction levels.

Consumer Preferences Can Shift

The Cox Automotive study, “Under the Hood: Opportunities and Challenges in the Service Industry,” reveals significant shifts in consumer preferences within the U.S. vehicle service sector. While franchised dealerships continue to lead as service providers, they are facing a decline in market share, losing ground to service chains and general repair shops. This trend underscores the importance of adapting service strategies to meet evolving customer demands and expectations.

Despite these challenges, the automotive care industry remains robust, with consumer spending projected to surpass $400 billion in the coming years. Increased vehicle usage and longer ownership periods, driven by the pandemic, have led to heightened demand for maintenance and service visits. Auto dealerships have a prime opportunity to capitalize on this trend by expanding their revenue streams through proactive marketing of their service offerings

Use Your Services to Regain Customer Trust

One notable finding from the study is the growing preference for general repair shops over dealerships among vehicle owners. Trust emerges as a critical factor influencing customer decisions, with dealership service experiencing a decline in perceived trustworthiness. To address this challenge, service centers must prioritize transparency, quality, and customer satisfaction in their operations.

Cost remains a significant consideration for consumers when selecting service centers. Despite dealership service costs often being comparable to non-dealer alternatives, perceptions of overcharging persist among some customers. To combat this perception, service centers can focus on price transparency, providing accurate estimates, and offering competitive pricing to attract and retain customers.

New Challenges on the Horizon

As the automotive industry transitions towards electrification, dealerships face new challenges and opportunities in servicing electric vehicles (EVs). With EV sales on the rise, dealerships must invest in specialized training and infrastructure to meet the growing demand for EV service and maintenance. By embracing this shift and tailoring their services to meet EV owners’ unique needs, dealerships can position themselves as leaders in the EV service market.

Strong Automotive Can Help

The automotive service industry presents significant revenue opportunities for dealerships willing to adapt to changing market dynamics and customer preferences. By focusing on building trust, delivering exceptional service experiences, and embracing innovation, dealerships can maximize revenue and foster long-term customer loyalty and satisfaction in an increasingly competitive landscape. At Strong Automotive, part of our job is to help lead potential customers to the services your dealership offers. Contact us today, and let’s talk about how we can help you grow your service center market share.