There’s ample room for auto dealers to grow their service drive business, based on recently measured consumer demand and pain points.
A CDK survey of over 2,000 vehicle owners shows that dealers are leaving things to be desired in some service categories, including communication and convenience, particularly among the youngest consumers.
The trends are particularly significant since the poll found nearly a third of consumers are “doing everything possible to keep their car running.”
While dealers excel on tire rotations and cabin filter replacements, they score behind competitors in most other categories, the research found. Appointment booking is one of the biggest areas dealers could improve in.
Nearly 60% of service slots are booked by phone, according to the poll, but many face challenges accomplishing the task. Twenty-four percent of those service consumers – most of whom are dealership customers – wait more than nine minutes on hold, 28% have to wend their way through phone menus, and 26% are transferred at least once.
Then there are younger consumers, many of whom prefer to book service appointments online, led by generation Z, 43% of whom complete the task on dealer websites. Similarly, younger auto owners pay attention to dealers’ online reviews, the poll found, more than 75% of generations Y and Z relying on them to pick a provider.
Mobile service is increasingly becoming a car service differentiator, according to survey results, which show that 40% of consumers are willing to pay up to 10% more for the convenience. In fact, mobile service use almost doubled over last year, but there’s much room for growth, as it still represents just 6% of survey respondents.
Auto recall repairs are another area for improvement, with 11% of respondents ignoring recalls, many times because of the time required or considering the repairs unnecessary. Of consumers who followed through with repairs, nearly half had them done at dealerships or through mobile services, and 40% added other services on their visits.
“Dealerships that invest in digital scheduling tools, streamline communication, and enhance the in-store experience will not only improve satisfaction but also secure long-term customer retention and profitability,” CDK said of the results.
