Fixed Ops Magazine - 2023 Vol20 01 - 50

SERVICE DEPARTMENT BY MIKE BAUER
FREE
STUFF
Free Stuff is not the Key to Retention
W
e all know retention is an absolute to grow
any business. Although the OEM keeps a
watchful eye on CSI, it's retention and defection
rates that make the grade. When I'm assessing
service departments, one of the first questions I ask is
what their retention rate is. Most of the time, the answer
ranges from 70 to 85 percent.
Then I find out the sales department offers new owners
three free LOFs. I understand why, as a vehicle purchaser,
I was offered the same when we bought my
wife's Hyundai. We were thrilled. But then I asked what
the percentage was after three free LOFs were used.
And, to no-one's surprise, it was drastically lower, less
than 20 percent!
" They might as well have just given the customer $150
and said don't come back. " I understand the theory
behind the free oil changes-to increase service lane
traffic. It's a sheet out of the OEM playbook. But OEMs
give two years of free preventive maintenance! More
free stuff, same old result; once the " free " is gone, so is
50
the retention. No one wins a race to the bottom. And
free stuff typically only draws deal-seekers.
I know what you're thinking. " Mikey, the advisor is
supposed to use these opportunities to build the relationship,
so the customer comes back. " And you're
right! But let's be realistic. How's that really working
out for you?
I think I've sufficiently communicated that free LOFs
are not the key to long-term loyalty. News flash! There
are less expensive and more reliable ways to retain
customers.
RETENTION PROGRAMS ARE USELESS
WITHOUT A PROCESS
Getting customers to return has more to do with the
process we have on the service drive than any amount
of free stuff we give out. So, you might ask, " What can
we do internally with the talent we have on the service
drive? " Get clear on your process. And - make sure it

Fixed Ops Magazine - 2023 Vol20 01

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2023 Vol20 01

Fixed Ops Magazine - 2023 Vol20 01 - 1
Fixed Ops Magazine - 2023 Vol20 01 - 2
Fixed Ops Magazine - 2023 Vol20 01 - 3
Fixed Ops Magazine - 2023 Vol20 01 - 4
Fixed Ops Magazine - 2023 Vol20 01 - 5
Fixed Ops Magazine - 2023 Vol20 01 - 6
Fixed Ops Magazine - 2023 Vol20 01 - 7
Fixed Ops Magazine - 2023 Vol20 01 - 8
Fixed Ops Magazine - 2023 Vol20 01 - 9
Fixed Ops Magazine - 2023 Vol20 01 - 10
Fixed Ops Magazine - 2023 Vol20 01 - 11
Fixed Ops Magazine - 2023 Vol20 01 - 12
Fixed Ops Magazine - 2023 Vol20 01 - 13
Fixed Ops Magazine - 2023 Vol20 01 - 14
Fixed Ops Magazine - 2023 Vol20 01 - 15
Fixed Ops Magazine - 2023 Vol20 01 - 16
Fixed Ops Magazine - 2023 Vol20 01 - 17
Fixed Ops Magazine - 2023 Vol20 01 - 18
Fixed Ops Magazine - 2023 Vol20 01 - 19
Fixed Ops Magazine - 2023 Vol20 01 - 20
Fixed Ops Magazine - 2023 Vol20 01 - 21
Fixed Ops Magazine - 2023 Vol20 01 - 22
Fixed Ops Magazine - 2023 Vol20 01 - 23
Fixed Ops Magazine - 2023 Vol20 01 - 24
Fixed Ops Magazine - 2023 Vol20 01 - 25
Fixed Ops Magazine - 2023 Vol20 01 - 26
Fixed Ops Magazine - 2023 Vol20 01 - 27
Fixed Ops Magazine - 2023 Vol20 01 - 28
Fixed Ops Magazine - 2023 Vol20 01 - 29
Fixed Ops Magazine - 2023 Vol20 01 - 30
Fixed Ops Magazine - 2023 Vol20 01 - 31
Fixed Ops Magazine - 2023 Vol20 01 - 32
Fixed Ops Magazine - 2023 Vol20 01 - 33
Fixed Ops Magazine - 2023 Vol20 01 - 34
Fixed Ops Magazine - 2023 Vol20 01 - 35
Fixed Ops Magazine - 2023 Vol20 01 - 36
Fixed Ops Magazine - 2023 Vol20 01 - 37
Fixed Ops Magazine - 2023 Vol20 01 - 38
Fixed Ops Magazine - 2023 Vol20 01 - 39
Fixed Ops Magazine - 2023 Vol20 01 - 40
Fixed Ops Magazine - 2023 Vol20 01 - 41
Fixed Ops Magazine - 2023 Vol20 01 - 42
Fixed Ops Magazine - 2023 Vol20 01 - 43
Fixed Ops Magazine - 2023 Vol20 01 - 44
Fixed Ops Magazine - 2023 Vol20 01 - 45
Fixed Ops Magazine - 2023 Vol20 01 - 46
Fixed Ops Magazine - 2023 Vol20 01 - 47
Fixed Ops Magazine - 2023 Vol20 01 - 48
Fixed Ops Magazine - 2023 Vol20 01 - 49
Fixed Ops Magazine - 2023 Vol20 01 - 50
Fixed Ops Magazine - 2023 Vol20 01 - 51
Fixed Ops Magazine - 2023 Vol20 01 - 52
Fixed Ops Magazine - 2023 Vol20 01 - 53
Fixed Ops Magazine - 2023 Vol20 01 - 54
Fixed Ops Magazine - 2023 Vol20 01 - 55
Fixed Ops Magazine - 2023 Vol20 01 - 56
Fixed Ops Magazine - 2023 Vol20 01 - 57
Fixed Ops Magazine - 2023 Vol20 01 - 58
Fixed Ops Magazine - 2023 Vol20 01 - 59
Fixed Ops Magazine - 2023 Vol20 01 - 60
Fixed Ops Magazine - 2023 Vol20 01 - 61
Fixed Ops Magazine - 2023 Vol20 01 - 62
Fixed Ops Magazine - 2023 Vol20 01 - 63
Fixed Ops Magazine - 2023 Vol20 01 - 64
Fixed Ops Magazine - 2023 Vol20 01 - 65
Fixed Ops Magazine - 2023 Vol20 01 - 66
Fixed Ops Magazine - 2023 Vol20 01 - 67
Fixed Ops Magazine - 2023 Vol20 01 - 68
https://www.nxtbookmedia.com