This post was originally published on Auto Success
As we reflect on our dealerships’ performances in 2024, it’s crucial to consider areas for improvement that can drive success in the upcoming year. With fixed operations playing a critical role in dealership profitability, enhancing service traffic is essential for every new car dealer and fixed operations director.
Here are six actionable strategies that can help you improve your dealership’s productivity and profitability in 2025.
1. Minimize Customer Wait Times
We live in a society where customers have become accustomed to same-day delivery. Your ability to offer immediate service appointments is crucial in retaining and attracting customers. If your current scheduling system forces customers to wait more than a day, you’re likely losing business to competitors who provide more prompt service. Optimizing your appointment scheduling and increasing shop capacity through efficient staffing can reduce wait times and increase customer satisfaction.
2. Enhance Shop Productivity
Ensuring that your shop is operating at or above 100% productivity is essential for meeting customer demands promptly. This may involve hiring additional technicians, particularly “C” and “B” level technicians, who can handle various maintenance and repair tasks. An effectively managed shop improves service speed and increases overall throughput, contributing directly to your bottom line.
3. Streamline Your Appointment Process
Over 80% of customer interactions begin with a phone call. Your staff must be trained to answer questions and actively convert these calls into service appointments. Instead of quoting prices or diagnosing issues over the phone, focus on securing an appointment to assess the vehicle in person. This approach can significantly increase your service traffic by ensuring that potential opportunities are recovered.
4. Follow Up on No-Shows
It’s common for customers to not remember their service appointments. Establish a reliable follow-up process to contact and reschedule no-shows. This recovers potential lost revenue and improves customer relations by showing that you value their business and are attentive to their needs.
5. Manage Special Order Parts Efficiently
Parts ordered for specific repairs can often be forgotten if they are not appropriately managed. Implement a process where customers are contacted promptly once their parts arrive, and an appointment is scheduled immediately. This proactive approach ensures parts are utilized quickly and boosts service department productivity. Your customers will appreciate getting their vehicles repaired in a timely manner like promised.
6. Pre-Schedule Service Appointments
Just like medical offices, consider scheduling your customers’ next service appointment before they leave your dealership. This practice can significantly enhance service department flow and create a predictable service pipeline. Inform customers about upcoming maintenance requirements and schedule them in advance, increasing the likelihood of return visits. Ask your customers to add their appointments with your dealership to their calendars or send them a link or text.
By implementing these six strategies, dealerships can expect to increase their repair order count by at least 10%. If you’re currently averaging 500 customer-pay repair orders (CPROs) per month, these changes could lead to 50 additional orders monthly — or 600 extra orders annually — effectively giving you an extra month of sales activity each year without increasing fixed costs.
As we gear up for 2025, now is the perfect time to reassess and revitalize your dealership’s service strategies. Adopting these proven approaches will enhance your service department’s efficiency and improve your dealership’s overall profitability. Here’s to a prosperous new year filled with opportunities and growth!
