3 Min ReadJuly 16, 2021

The secret ingredient to winning back Service customers? Trust.

man and woman looking at car

A 2020 study conducted by the CDK Research and Insights Team found that 74% of customers who opted to go outside of a dealership for service would consider visiting a dealership in the future. This is encouraging news for dealers, as it suggests there’s potential for customer behavior to change.

But what would it take to move shoppers to not only put dealerships into their consideration set, but to choose one for service? When asked about this, shoppers expressed hesitance — specifically about dealers’ ability to:

  • Provide “trustworthy” service
  • Offer a “fair” price

These factors are closely tied. 55% of shoppers say they don’t trust dealers, and give as their reasons their own beliefs that (1) dealers frequently upsell unrequired services, and (2) don’t keep shoppers informed or updated during the service process.

Such a high percentage of customers with strong feelings of distrust is a sizable concern. But now that we have identified specific reasons for this perception, dealers can begin to address them.

Evaluating how dealers upsell.

Are shoppers right — do dealers upsell unrequired services? To be fair, some probably do. But more often, dealers upsell without adequately communicating and gaining the understanding of their customers. In both cases, it leads to confusion, unsatisfying customer experiences and loss of trust.

Dealers hoping to rebuild shopper trust around this concern should keep these points in mind:

  • Avoid unnecessary upselling (obviously)
  • Prioritize the service needed today, and be forthcoming about services needed in the future; this is particularly important to younger demographics
  • If an upsell is needed or would be beneficial, take the time necessary to fully explain the procedure, cost and benefits — and make sure the customer fully understands prior to servicing

Take the time necessary to fully explain the procedure, cost and benefit

What makes service pricing feel fair?

Exactly what makes a price feel fair can be difficult to pin down, as it varies from customer to customer. Even within a single customer it’s a shifting target — changing according to whether the service is major or a minor repair.

When major services are required, customers take into account the dealership’s level of expertise, quality of work, and the expectation that OEM-certified parts will be used. This may incline them to be flexible on price.

Minor repairs, however, are treated with less flexibility on price. This is because customers don’t feel as great a need for expertise in managing minor repairs, and are more aware of standard prices for these services.

To rebuild shopper trust around this concern, dealers should consider:

  • Prices for major services don’t necessarily have to be the lowest to be deemed “good”
  • Transparency is essential for shoppers to feel more secure and in control of their major and minor service decisions; this is particularly true for younger demographic
  • Minor services are valuable for establishing trust — and if the dealer performs agreeably, they’re often stepping stones to more expensive, major work

Four Ways to Be More Price Transparent

Seeing customers as more than sales.

There’s one more way to help repair the trust concerns of shoppers. And it goes far beyond upsells and price transparency.

Customers need to feel dealers value them as more than just providers of income. Of course, they know they’re performing a monetary function. But trust isn’t rational, it’s deeply emotional. So dealers should make these a priority:

  • Get to know your customers and listen attentively
  • Find out their personal level of service knowledge
  • Determine the level of involvement they’d like in the Service experience

With this knowledge, dealers can provide each customer with the personal attention that leads to trust — resulting in Service experiences that meet their individual needs.

Missed Part One? Read it to learn two more reasons customers don’t return, and how you can overcome them.

Check out Part Three: we’ll look at what the data tells us about retaining Service customers after winning them back.

Share This

CDK Global
By CDK Global
Staff

Recent Insights

How to Spot Generative A I in Automotive Retail.

How to Spot Generative AI in Automotive Retail

Every vendor in the automotive retail industry is touting artificial intelligence and innovation. From marketing tools to sales assistants, dealerships...
3 Min ReadMay 21Amber Good
How Dealership A I Tools Can Help Service Team Productivity.

How Dealership AI Tools Can Help Service Team Productivity

Eight minutes and 12 seconds may not seem like a long time, but for dealership customers stuck on hold trying...
3 Min ReadMay 14CDK Global
Make Your Entire Dealership’s Phone System Smart.

Make Your Entire Dealership’s Phone System Smart

A dealership’s phone system is integral to generating business and if it’s not up to today’s challenges it may be...
3 Min ReadMay 9Natalia Mischenko
How Your Dealership Can Prepare for Auto Parts Tariffs.

How Your Dealership Can Prepare for Auto Parts Tariffs

Navigating the world of tariffs is no easy task. It seems there’s news of changes nearly every single day. But...
3 Min ReadMay 7Adam Bigelow
Car Pros Optimizes Operations With C D K Dealership Experience.

Car Pros Optimizes Operations With CDK Dealership Xperience

Car Pros Automotive Group has a rich history, starting in the mid-'90s as a used car lot founded by CEO...
2 Min ReadMay 5CDK Global
Car Buyers Hit More Dealers Amid Tariff Turbulence

Car Buyers Hit More Dealers Amid Tariff Turbulence

If there’s any question about tariffs impacting car buyer behavior it seemed to prove out in April. While 90% of...
3 Min ReadMay 1David Thomas
The Importance of Scheduling Appointments for the Test Drive.

The Importance of Scheduling Appointments for the Test Drive

Long wait times at the dealership are a significant source of frustration for car shoppers. It’s not just an inconvenience;...
3 Min ReadApr 29CDK Global
Most EV Owners Stand By the Technology in New Study

Most EV Owners Stand By the Technology in New Study

Opinions about the political shifts and impacts on the ever-evolving electrical vehicle industry vary greatly across the automotive industry including...
1 Min ReadApr 21CDK Global
Dealership Appointments. Car Shoppers versus Service Customers.

Dealership Appointments: Car Shoppers vs. Service Customers

Whether you’re shopping for a new vehicle or looking to service your current one, going to a dealership can be...
3 Min ReadApr 18CDK Global
The Power of Online Reviews for Car Dealerships.

The Power of Online Reviews for Car Dealerships

Word-of-mouth marketing has long been heralded as the top marketing strategy. As the internet continues to shape consumer behavior, traditional...
3 Min ReadApr 11CDK Global