Today’s service customers aren’t easy to win over. “My customers are impatient,” many dealers say. “They only care about price. And even if they come in for service once, they’re probably never coming back.” Sound familiar?

But while it’s true that building lasting, profitable relationships with today’s service customers can be a challenge, it’s not impossible. You can do it — you just need to know what customers are looking for.

Let’s look at three of the most common myths surrounding today’s service customers, and how you can bust them once and for all.

Myth: Dealerships must charge less to win more service customers. 

Fact: Fair, transparent pricing can outweigh low pricing.

Many dealers believe today’s customers are determined to pay the lowest possible price for service, and they’ll always go where the best deal is. That’s why many dealers offer massive service discounts to bring in service business — even when it cuts into their profits.

It’s true that some of today’s customers are price-conscious. The number-one reason customers choose not to service their vehicles at a dealership is a perceived lack of value.¹ However, while some customers might think servicing their vehicle elsewhere will save them money, it’s not as many as you might think. According to a survey by IMR Inc., only 3% of customers who returned to a service provider for an oil change did so because of low price. ² And in reality, dealership service departments’ pricing is highly competitive. ³ It’s your job to show customers that.

You don’t need to lower your pricing to win over cost-conscious customers. You need to convince them your pricing is fair.

Use price transparency to clearly and consistently communicate pricing information throughout the service process. Giving customers insight into what you charge and why will nurture their trust and help them recognize your value. And the earlier you start this process, the better. In a recent study, 70% of customers said cost estimates during the appointment-setting process are “extremely” or “very” important. ⁴ Quoting prices upfront will clue customers in to how competitive you really are — and help bring more business through your door.

Myth: Customers will always choose third-party shops over dealerships.

Fact: Customers will choose the most convenient, valuable experience.

Third-party service providers provide stiff competition for dealership service departments. Fewer than one in three service visits currently occur at a franchised dealership, largely because more customers choose third-party providers instead. ⁵ As I said before, perceived value is the biggest reason dealerships lose out. But although price transparency is a big way to convey your value, it isn’t the only way.

Customers aren’t just concerned with cost savings. They’re thinking about time savings, too. If you provide a more convenient experience than the competition, pretty soon they’ll be no competition at all. According to IMR, 40% of customers returning for an oil change did so because of a “good prior experience.” ⁶

Incorporating tablets into the check-in process will make your dealership faster and more convenient. 28% of customers currently have to wait three minutes or longer to speak with a service advisor after they bring in their vehicle. ⁷ That’s far too long, especially with third-party shops advertising lightning-fast service.

Tablets let service advisors meet customers directly at their vehicles, which results in 7% more customers being greeted immediately. ⁸ Advisors can also perform the full vehicle walk-around process without leaving the customer’s side, and can access vehicle service history, pricing and service menus with a few taps and swipes.

When you deliver an efficient, outstanding experience by using tablets, customers will take note. They’ll be more satisfied and more likely to return for future service. In fact, incorporating tablets into the check-in process has been shown to increase CSI scores by an average of 67 points ⁹ ­— and increase service retention by 8.2%. ¹⁰

Myth: Customer loyalty is dead.

Fact: Customers will be loyal — if you treat them as individuals.

According to a recent Cox Automotive study, 72% of car buyers don’t return to the dealership for service within 12 months of purchasing. ¹¹ And while that number needs improvement, customer loyalty is still alive and well, and retention is possible.

The truth is, today’s customers are ready and willing to be loyal. You just have to give them a reason to be. If you engage customers with an experience that’s personalized to their needs, they will come back.

Every service email and marketing message you send should be crafted with the customer’s specific needs in mind. Every message should be personalized and have context and relevance. Factor in what services they’ve accepted or declined in the past. If they haven’t visited your dealership in a year or longer, send them special offers to recapture that lost soul.

Your customers will appreciate your efforts to personalize their experience — and that appreciation gets results. By proving that you understand your customers’ wants and needs, they’ll be more likely to engage with you. Customers are 51% more likely to engage with a dealership that sends personalized messages rather than generic ones. ¹² And the more frequently customers engage with you, the better your odds of winning their business for life.

Nurturing effective relationships with your service customers isn’t always easy. But once you know what today’s customers really want from you, you can get your service department on the fast track to success.

1. Cox Automotive Maintenance and Repair Study, July 2016
2. Continuing Consumer Automotive Maintenance Study, IMR Inc.
3. Cox Automotive Maintenance and Repair Study, July 2016
4. Xtime Market Research, 2016
5. Cox Automotive Maintenance and Repair Study, July 2016
6. Continuing Consumer Automotive Maintenance Study, IMR Inc.
7. J.D. Power and Associates / McGraw Hill Financial, 2015
8. Ibid.
9. J.D. Power and Associates, 2015
10. Xtime Market Research, 2016
11. Cox Automotive Maintenance and Repair Study, July 2016
12. G/O Digital Marketing: Appealing to Today’s Auto Buyer