Dealership Parts Matrix Pricing Strategies
Declined Work Recovery: The Hidden Profit Center in Your Service Lane
Effective Labor Rate vs. Door Rate
Fixed Ops Retention Strategy Beyond 50K Miles
Increase Shop Hours Without Hiring More Technicians
Prepaid Maintenance Plans: Revenue Protection or Margin Erosion?
Service Department Dispatching Models
Service Menu Pricing Strategy
The Online Service Scheduling Impact
Winning Back Lost Service Customers
12 KPIs for Fixed Ops Directors
The Overlooked Service-to-Sales Handoff
Internal and Counter Parts Sales
The Impact of Rising Interest Rates on Service Retention
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LinkedInHigher interest rates don’t just impact car sales. They also change how customers think about vehicle maintenance. Car owners delay non-essential repairs as borrowing costs rise and monthly expenses get tighter. They may stretch service intervals or forgo routine maintenance altogether. This economic shift brings challenges and opportunities for fixed ops directors and service managers.
The question is: How can your service department keep customers engaged and ensure they prioritize maintenance, even when their budgets are tighter than ever?
With consumers keeping their cars longer because of high financing costs, dealerships must adapt their service strategies. This can help them retain customers and raise profits, even during tough economic times. This article will explain how rising interest rates affect service behavior and share the best strategies to keep your service bays busy without using deep discounts that hurt revenue.

The Federal Reserve is working hard to fight inflation, which has caused interest rates to rise steadily. This change affects many industries, including automotive fixed operations. As of early 2025, borrowing costs for auto loans, mortgages, and credit cards are still high, greatly affecting how consumers spend their money.
The average interest rate on new auto loans is over 7%, and used car loan rates are even higher. Many consumers find their monthly payments push their budgets to the limit. This financial strain makes them less willing to spend on non-essential services, including routine vehicle maintenance.
Since buying a new or used vehicle costs more, many people keep their current cars longer. According to S&P Global, the average age of vehicles on U.S. roads is now over 12 years. This means many more high-mileage cars require regular maintenance. This change gives dealerships a chance to teach customers about preventive care. It is better to fix small problems before they become expensive, time-consuming repairs.
The high cost of financing a new vehicle means more consumers are holding onto their current cars longer than ever. While this presents an opportunity for dealerships to provide ongoing maintenance and repairs, many customers prefer postponing service visits to cut costs. A 2021 Aftermarket Matters report revealed that 64% of drivers are currently putting off some sort of vehicle maintenance, with 58% stating they could not afford an emergency car repair costing more than $1,000.
When money is tight, consumers focus on their immediate needs instead of the long-term health of their vehicles. Drivers often put off service, leading to more breakdowns, shorter vehicle life, and safety risks. Dealerships can use these points to stress the importance of timely service.
Minor issues escalate into major repairs as customers stretch service intervals or ignore warning signs. Skipped oil changes, delayed brake replacements, and ignored transmission servicing can lead to higher repair costs and reduced vehicle longevity. While this may mean increased repair revenue for dealerships in the short term, it also increases the likelihood of customers seeking cheaper alternatives outside the dealership.
Rising interest rates stretch consumer budgets, so dealership fixed-ops departments face increasing service retention challenges. Customers who once adhered to routine maintenance schedules are now delaying or skipping essential services, forcing dealerships to rethink their approach to engagement and retention.
With economic uncertainty looming, price sensitivity is at an all-time high. Many customers are turning to:
This shift threatens dealership service retention, making it more important than ever to reinforce the value of certified technicians, OEM parts, and dealership expertise.
While economic pressures drive customers to reduce service spending, dealerships that adapt their strategies can still retain long-term customer relationships. The key is offering affordable, flexible, and value-driven solutions that align with today’s financial realities.
As interest rates rise, consumer budgets are getting tighter. Dealerships need to change how they keep customers coming back for service. Customers want to save money, and if dealerships don’t reach out, they might go elsewhere or even skip maintenance completely. Here are some ways fixed ops directors and service managers can respond to these trends and keep customers coming back for service.
Financial constraints are a key reason customers delay service. Dealerships can remove this barrier by offering flexible payment plans such as:
By making service more financially manageable, dealerships can encourage customers to stay on track with maintenance instead of delaying critical repairs.
Many customers view routine maintenance as an extra cost instead of a must-have. This maintenance can help avoid higher costs later. Dealerships should teach customers how regular service can save money by preventing costly breakdowns.
Customers who understand that spending a little now can save them thousands later are more likely to prioritize service.
A good loyalty program can encourage customers to return and use dealership services. Here are some effective strategies:
By making dealership service more rewarding and convenient than independent shops, dealerships can foster lasting relationships that can survive tough economic times.
With inflation and high interest rates pushing customers toward cheaper alternatives, dealerships must reinforce the value of certified service over independent shops or DIY repairs.
By showing that dealership service is a smarter and safer choice, dealerships can keep customers. This helps prevent them from looking for cheaper options.
Personalized, timely communication is key to keeping customers engaged with dealership service.
By leveraging CRM tools and data analytics, dealerships can anticipate customer needs and proactively encourage service visits before problems arise.
As interest rates affect consumer spending, dealership service departments need to change their strategies to keep customers. Dealerships can turn challenges into chances by focusing on flexibility, education, loyalty rewards, and personalized marketing. This will help keep service bays busy and revenue strong in 2025 and beyond.
Visit TVI MarketPro3 for more on service drive retention and other fixed ops insights.
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Closing Service Approvals Faster: Texting vs. Calling
There’s a time and place for a phone call, but today's customers don't always answer. Service departments often lose time waiting for callbacks before repairs can begin, and sometimes customers ignore the call if they don’t recognize the number. The question isn't whether dealerships should stop calling customers. The real question is: Which communication channel delivers the information customers need when they need it? It’s imperative for today’s fixed ops leaders to use both texting and calling strategically. According to a 2026 Missive article, open rates for text messages exceed 90% across most industries, with a generally faster response time than waiting for a callback. Customers increasingly prefer text communication, and faster response times reduce repair delays and improve the customer experience. The Hidden Cost of Waiting for a Callback Let’s consider the cycle of phone call communications. The advisor leaves a detailed voicemail, but the vehicle often sits waiting for authorization. Even if the customer calls back promptly, there’s still a good chance they won’t be able to reach their busy service advisor. Let the annoying and inefficient game of phone tag begin. The trickle-down impact includes delays in parts ordering, technicians waiting to work, and increased repair cycle times. A recent TVI MarketPro3 article stresses the impact of dealership service response times and their impact on customer retention. The same can be true of slow customer response times. Delayed responses on either end of the line affect repair approvals, customer satisfaction, repair order (RO) throughput, and retention. Simply put, slow communication creates friction. Why Customers Are Responding to Text Messages If you think about a day in the life of a busy customer, it’s easy to see why answering a phone call isn’t always an option. Customers are working, perhaps in a meeting. They may not be near their phone when it rings, or have it on silent. Busy parents are chasing after their kids and balancing household tasks. A text allows them to review and digest information at their convenience, perhaps more easily than during a phone call. They can then follow up with a more decisive response than a call, which can leave them with more questions than answers. TVI Unotifi Automated Text Message Marketing Customers increasingly expect multiple communication channels rather than relying solely on phone calls. Unotifi specializes in giving customers multiple ways to connect with the dealership, and the platform centers on texting to bring customers into the service drive and retain them through efficient communication. Texting Doesn't Replace Trust—It Supports It Texting alone doesn't sell repairs. Personal communication still matters, especially for bringing customers back time and again. They need compassion, understanding, and connections, not just notifications. Texting is also most effective when it complements other forms of technical communication; for example, video with text creates transparency. Texts deliver information quickly, while video helps establish credibility, and the advisors are available to provide context and explanation. The Most Effective Approach Isn't Texting OR Calling There’s a time and place for each means of communication, and knowing the difference sets top-performing dealerships apart from average stores. Texting works best with: Status updatesMPI deliveryRepair approvalsParts updatesAppointment confirmations Calling still matters with: Large repair estimatesComplex repairsDeclined recommendationsUpset customersRelationship-building opportunities Technology Should Support the Conversation, Not Replace It The most successful service departments don't force customers into a single communication channel—they meet customers where they're most comfortable. Some customers prefer the convenience of a quick text, while others still want the reassurance of a personal phone conversation before making a decision. This is where solutions like Unotifi help dealerships create a more flexible customer experience. Rather than treating texting and calling as competing strategies, Unotifi allows dealerships to integrate both into a cohesive communication process. Advisors can use text messaging to deliver updates, photos, videos, and repair recommendations quickly, while still being able to pick up the phone when a situation requires additional explanation, empathy, or trust-building. The goal isn't to replace human interaction with automation. It's to remove communication barriers so advisors can spend less time chasing customers and more time helping them make informed decisions. When customers can communicate on their terms—and advisors have the tools to respond appropriately—dealerships create a more convenient, transparent, and customer-friendly service experience that drives both approvals and long-term retention. Conclusion In today's service environment, speed and convenience matter, but so does the human connection that builds trust and loyalty. The dealerships seeing the strongest results aren't choosing between texting and calling—they're using both strategically. By leveraging text messaging for quick updates and approvals while reserving phone conversations for more complex or relationship-driven interactions, service departments can reduce delays, improve the customer experience, and keep repair orders moving. The goal isn't simply better communication—it's creating a seamless experience that earns customer confidence and keeps them coming back.
Jul 13, 2026 | 4 minute read
Advisor Pay Plans That Drive Sales Without Creating Toxic Pressure
Service advisor compensation may be one of the most debated topics in fixed operations. Ask ten operators how advisors should be paid, and you’ll likely get ten different answers. Flat commission. Salary plus bonus. Gross profit. CSI. Hours per RO. Team incentives. Retention bonuses. Every pay plan is designed to motivate performance. The problem? Poorly designed compensation structures can unintentionally reward the wrong behaviors. Overselling. Burnout. Internal competition. High turnover. Damaged customer trust. In an industry already facing pressure to grow customer-pay business, compete with independents, retain talent, and improve profitability, dealerships can’t afford compensation systems that create short-term gains at the expense of long-term health. The question isn’t whether advisor pay matters. The question is: How do you build advisor compensation plans that increase performance while encouraging trust, retention, and sustainable growth? The Hidden Cost of Incentivizing the Wrong Behaviors Service advisors sit at one of the hardest intersections in a dealership. They’re expected to: Deliver excellent customer experiencesSell needed maintenance and repair workManage upset customersCoordinate with techniciansHandle warranty complexitiesMaintain CSIDrive profitability Nick Shaffer, TVI MarketPro3’s Vice President of Sales, notes in his recent interview with Bruce Daugherty, Owner and President of ADO Consulting: “Being a service advisor… is one of the most valuable and also one of the most difficult jobs in the car dealership… [they] play a huge role in the customer experience, the client retention, the store profitability… and the technician retention.” When compensation only rewards dollars sold, predictable problems emerge: Advisors focus on immediate sales over educationCustomers feel pressured instead of informedCSI suffersTrust declinesAdvisors burn outTurnover rises Bruce Daugherty puts it bluntly: “It’s the most important, hardest job in the store, and we’re trying to work people for three to five grand… No wonder you can’t get great advisors.” Underpaying advisors while expecting world-class performance creates a cycle: Stress → Turnover → Emergency Hiring → Inconsistent Customer Experience → Reduced Retention Common Advisor Pay Structures: What Works—and What Can Go Wrong There’s no universal advisor pay plan. The “right” structure depends on factors such as franchise requirements, state labor laws, manufacturer incentives, and dealership goals. However, after decades of leading high-performing service operations, Bruce Daugherty argues that how compensation is designed matters far more than simply choosing a category. Salary Only Bruce’s take: Strongly against it. “Salary only is a big no, regardless of the store, brand, franchise, location, state, or anything. I would never do only a salary.” His concern is simple: Without performance incentives, there’s little motivation to maximize customer experience, efficiency, or sales performance. As Bruce explains: “The problem with that is there's no incentives. There's no reason to… kill a bear every day…” Potential downside: Reduced motivationLimited performance differentiationDifficulty attracting high performers Salary + Commission Bruce’s take: Potentially strong—but design matters. “A salary plus commission… as a base concept is great, but then how do you design the commission is the big question.” The real issue becomes: What behaviors are being rewarded? Compensation tied only to sales volume can unintentionally encourage: OversellingDiscounting to close workShort-term thinking Bruce’s philosophy focuses on rewarding multiple performance dimensions, not just one. Flat Commission / Commission-Only Plans Bruce’s take: Requires caution—and legal awareness. State laws may require minimum salary or hourly components. For example: “In California, the average hourly component equates to almost $36,000 a year in base pay just to show up and do nothing.” His broader concern: Commission structures become problematic when incentives only reward volume. Gross Profit–Based Compensation Bruce’s take: Dangerous if used alone. He warns against pure gross-based systems: “I would not ever just say gross only or sales only, either one…” Why? Because compensation based solely on gross can create what Bruce calls “Repair order hustlers.” These advisors may: Cherry-pick lucrative repair ordersAvoid difficult customersCreate internal competitionPrioritize paycheck over consistency Bruce explains: “You can just write up a bunch of repair orders… maybe write 30–40% more than everybody else… or cherry pick the right cars, and all of a sudden, you've got a great paycheck…” The result: High production on paper, but potentially weaker culture and inconsistent customer experiences. Hours per RO Incentives Bruce’s take: Essential. Unlike gross-only systems, Bruce strongly supports hours per RO (HPRO) as one component of advisor compensation. “[You] absolutely have to pay on hours per RO, no matter what the brand, no matter where you are.” However, he recommends tiered structures, typically with three levels. Example: Tier 1: 2.6–2.8 HPROTier 2: 2.81–3.0 HPROTier 3: 3.1+ HPRO These benchmarks should vary by brand and store type. His reasoning: Hours per RO helps measure whether advisors maximize opportunities with the traffic the dealership already has. Team-Based Incentives Bruce’s take: Only for CSI. Bruce supports team incentives selectively: “The only thing I've ever agreed on with team-based incentives is around CSI.” Why? Because CSI reflects shared effort. When someone is out sick or on vacation: “…everybody else is willing to pick up the phones, answer, follow up [on] his work…” However, Bruce avoids applying team incentives to: SalesHours per ROEffective labor rateGross profit CSI-Based Bonuses Bruce’s take: Mandatory. His position is clear: “You gotta have it.” Why? “If we want happy customers to keep coming back… we have to have some way to measure.” However, CSI compensation requires careful oversight. Potential pitfalls: Survey manipulationUnfair penalties for technician issuesManufacturer scoring complexity Bruce notes: “You gotta be careful how you manage it…” He often prefers monthly measurement with leadership discretion to adjust for unusual situations. Retention / Repeat Visit Bonuses Bruce’s take: Usually redundant. Rather than paying separately for customer retention, Bruce often incorporates loyalty into CSI. “I think that kind of goes with CSI already… I just prefer the overall CSI score…” Manufacturer programs may require loyalty metrics, but his preference is simplicity where possible. Bruce Daugherty’s Preferred Advisor Pay Philosophy Rather than rewarding one metric, Bruce builds compensation around multiple controllable outcomes: Typically including: Customer-pay RO average (CPRO)Effective labor rate (ELR)Hours per RO (HPRO)CSICustomer-pay growth His goal: “You want a guy that's not discounting work… You want the best of both worlds.” And ultimately: “That’s a guy that’s selling everything, and he’s selling it for top dollar…” Not through pressure, but through consistency, customer experience, and disciplined execution. Why Some of the Best Pay Plans Reward More Than Sales Bruce describes one of the most successful compensation structures he implemented: “I finally migrated… to what I called a 50-50 pay program. Half of it was CSI, and the other half was customer-pay averages.” Notably: “I did not pay a percentage of the warranty write-up at all.” And: “What I want [advisors] to do is give the client a world-class experience, and I want them to sell the maintenance and the customer-pay work…” His philosophy? Reward advisors for: Taking care of customersSelling needed work ethically Not simply maximizing transactions. The results? “We went to 4.2 hours an RO… and then we finished first in the nation… with CSI.” His conclusion: “You want to be highly focused and take care of customers and selling work. The only two things that really matter. We built a pay program around that.” Education Sells Better Than Pressure High-performing advisors don’t simply quote prices. They educate. Bruce explains: “90% of the time, it’s advisors. 90% of the time, it’s poor communication.” Industry studies reinforce this. Effective advisor communication strongly influences customer satisfaction, loyalty, and repeat business. Training and advisor development improve both profitability and retention. Similarly, industry data shows customers increasingly trust advisors who explain repairs clearly and communicate proactively. In one large customer study, 80% of customers said their service advisor earned their trust by the end of the visit. Trust is not a soft metric. Trust drives retention. The Best Pay Plans Don’t Just Drive Revenue Dealerships face growing pressure: Customer-pay growthStaffing shortagesCompetition from independentsRising operational costsIncreasing customer expectations Compensation matters more than ever. The strongest advisor pay plans don’t merely reward sales. They create: ✔ Consistency✔ Customer trust✔ Retention✔ Sustainable performance✔ Stronger teams✔ Healthier culture Because the highest-performing advisors aren’t simply the ones who sell the most; they’re the ones customers trust enough to come back to. Check out TVI MarketPro3 for more fixed ops expert insights.
Jun 9, 2026 | 6 minute read
Idle Bay Syndrome
How to Spot It Before Payroll Eats You Alive Your Shop Isn’t Full—Even If Your Schedule Is At a glance, everything looks healthy: the schedule is booked, advisors are moving, and cars are coming in. Take a walk through the shop, though, and you’ll see it—empty bays, technicians waiting, work stalled. Your shop isn’t full—even if your schedule is. Industry experts often discuss the issue of “Idle Bay Syndrome,” and it’s one of the greatest profit killers in fixed operations. In a recent interview with Nick Shaffer, Bruce Daugherty, President of A.D.O. Consulting Group, stresses, “Every empty stall you have is roughly $30,000 to $40,000.” What Is Idle Bay Syndrome? Idle Bay Syndrome happens when you have the capacity to produce, but you’re not producing. Your bays are open with technicians clocked in, but you’re not generating billable hours. This showcases the most important distinction in your service department: busy does not mean productive. You can have a full calendar and still leave hours on the table every single day. The Hidden Causes of Idle Bays Idle bays don’t happen because of one big issue—they’re the result of breakdowns across your entire operation. Inconsistent Car Count When your car flow is unpredictable, your shop becomes reactive. One day, you’re overloaded. The next day, you’re scrambling to fill the board. This usually traces back to: Poor marketing alignmentWeak customer retentionLack of consistent outreach Without a steady pipeline, your bays will never run at full capacity. Bottlenecks in Your Process Even when cars are in the building, work doesn’t always move. Idle time in most shops isn’t a labor issue—it’s a workflow issue. Technicians get stuck waiting on: Advisor approvalsParts availabilityDispatch direction These small delays stack up fast. And every minute spent waiting is a minute not producing. Low MPI Completion Every vehicle that comes through your shop is an opportunity. But when multi-point inspections (MPIs) aren’t completed consistently—or aren’t communicated effectively—you miss work that’s already in front of you. That means: Fewer approved servicesLower hours per ROMore unused capacity You don’t always need more cars—you need to do more with the ones you already have. Inefficient Scheduling Too many service departments operate in peaks and valleys. Mornings are slammed. Afternoons slow down. Certain days are overloaded, while others are wide open. Without intentional scheduling, you create: Technician downtimeDispatch bottlenecksUneven workload distribution Consistency—not volume—is what drives productivity. A Winning Strategy Idle Bay Syndrome doesn’t start in the shop—it starts with how you generate and manage demand. With the right strategy in place, you can stabilize your workflow and eliminate the peaks and valleys that create downtime. Database segmentation ensures you’re reaching the right customers at the right time.Campaign timing helps fill slow days before they happen.Recall and reactivation efforts create predictable, consistent demand. When your inflow is controlled, your shop becomes efficient. Visit TVI MarketPro3 for more expert insights.
May 6, 2026 | 3 minute read
OEM Warranty Expiration: The Window You’re Probably Missing
Most dealerships obsess over client acquisition. Unfortunately, many fail to master retention, and very few are fully capitalizing on one of the most predictable, high-value opportunity windows in fixed operations: the 90 days before and after OEM warranty expiration. This is the moment your customer decides whether they’re staying with you—or leaving for good. Why the Warranty Expiration Moment Matters The data is clear: dealership retention is slipping, and the warranty milestone is a major inflection point. In 2025, a Cox Automotive Study found: * Only 54% of customers with vehicles 2 years old or newer returned to the selling dealership for service, down sharply from 72% just two years prior* Dealerships now handle 12% fewer service visits than in 2018, with many customers shifting to independent garages* Customers who do stay in the service lane are 74% more likely to buy their next vehicle from that dealership That last statistic is the kicker. Losing a service customer isn’t just losing maintenance revenue. It’s losing your next vehicle sale, and warranty expiration is when that loss often happens. The Behavioral Shift at Warranty Expiration During the OEM warranty period, customers are conditioned to return: * Repairs are covered (or perceived to be)* Trust is anchored in the manufacturer* Risk feels low However, the moment that warranty expires, the psychology flips: * “Now I have to pay for everything.”* “Maybe I should shop around.”* “The dealership is probably more expensive.” This is exactly when independent shops step in—and win. In fact, many customers leave dealerships specifically after their warranty ends, contributing to already low retention rates across the industry The Window Most Dealers Miss Here’s where the opportunity lives. The decision to stay or leave doesn’t happen at expiration. It happens in the months surrounding it. The Timeline That Matters 2-3 months before expiration, the customer is still * Engaged* Returning for service* Trusting your process At expiration * Uncertainty peaks* Price sensitivity increases* Competitors begin targeting aggressively 2-3 months after expiration * New habits form* If they try an independent shop once… you’ve likely lost them This is the window where retention is either secured—or permanently broken. Why Most Dealerships Lose This Moment It’s not due to a lack of data. OEMs regularly provide warranty timelines and retention reporting. The breakdown is operational: No Proactive Communication: Customers aren’t told what happens after the warranty ends, so they assume the relationship is over. No Transition Strategy: Some dealerships treat warranty and customer-pay repairs as two separate worlds—when they should be one continuous experience. No Value Reframing: When coverage disappears, value must increase. Many stores never reposition themselves beyond “we fix cars.” A Different Approach Rather than waiting for the warranty to expire, dealerships must guide the customer through the transition. Start Before Expiration Communicate early and clearly: * What’s changing* What’s not changing* Why staying with the dealership still makes sense This reduces the fear of the unknown—a big driver of defection. Reframe Value (Not Price) Customers leave because of perceived cost, not actual cost. The same Cox Automotive study shows dealership repairs can actually be less expensive than the average independent shop, yet customers still defect due to perception and communication gaps A winning strategy focuses on: * Transparency* Inspection documentation* Advisor communication Building customer trust drives retention over discounts. Use the MPI as a Retention Tool A strong multi-point inspection does more than identify work: * It shows the vehicle’s condition* It builds credibility* It creates continuity post-warranty When customers see what’s needed, they’re far less likely to shop for it. Lock in the Next Visit Retention isn’t about this visit—it’s about the next one. Be sure to: * Pre-schedule future maintenance* Set expectations for upcoming needs* Create a service roadmap beyond warranty This prevents the “I’ll figure it out later” moment… where competitors often have a leg up. The Financial Impact of Getting This Right Retention isn’t just a KPI. It’s a profit engine. * Service drives up to 49% of dealership gross profit despite a smaller share of revenue* Increasing retention by just 5% can boost profits significantly* Retained customers generate predictable revenue and lower acquisition costs And it all compounds. Every retained service customer increases: * Lifetime value* Future vehicle sales* Referral opportunities The Bottom Line The warranty expiration point isn’t just a milestone. It’s a decision point. A winning strategy is one that controls the transition from warranty to customer-pay, and if you don’t catch the out-of-warranty vehicles, someone else will. Check out TVI MarketPro3 for more expert insights.
Apr 3, 2026 | 4 minute read
Multi-Point Inspection Completion Rates
Every vehicle that enters your service lane represents more than the work written on the RO. It represents potential: safety issues, maintenance needs, and future service opportunities. Yet many dealerships fail to consistently capture that opportunity because they don’t aggressively manage one critical metric: multipoint inspection completion rate. Car count and gross get attention. Inspection discipline often doesn’t. What Multi-Point Inspection Completion Rate Actually Measures Multi-point inspection (MPI) completion rate measures the percentage of repair orders that receive a full inspection. Not a quick glance. Not a partial checklist. A documented, consistent inspection. If your shop writes 1,000 repair orders in a month and only 650 receive a completed MPI, your completion rate is 65%. That means 35% of vehicles are left without a proper inspection to identify additional needs. In fixed ops, that’s not just a process gap. It’s a revenue gap. Why MPI Completion Matters More Than Most Leaders Realize Every vehicle that enters your service drive has: Wear componentsMaintenance needsFuture service requirementsSafety considerations Without a consistent inspection process, those needs go unidentified or even undocumented altogether. The MPI is not about selling harder. It’s about identifying legitimate needs and communicating them clearly. When inspections are consistent: Advisors have documented talking points.Customers see transparency.Trust increases.Approval rates improve. When inspections are inconsistent, advisors are forced to rely on memory or guesswork. Why Most Stores Fail MPI Completion Many service departments don’t perform complete inspections on every vehicle that comes through the door, even though a robust MPI process can uncover more revenue and trust opportunities. In fact, some industry commentators note that about 80% of service departments only provide thorough inspections on some vehicles—far from the ideal of near-100% coverage. Here’s why: 1. Technician Resistance Flat-rate environments create time pressure. If inspections aren’t built into the workflow and compensation structure, technicians may see them as unpaid labor. Without leadership reinforcement, completion slips. 2. No Real-Time Accountability Many stores only review inspection performance monthly—if at all. But the completion rate should be reviewed: Daily by advisorsWeekly by techniciansMonthly by departments What gets reviewed consistently improves. What doesn’t tends to decline. 3. Weak Advisor Reinforcement Even when inspections are completed, they are not always: Properly documentedClearly presentedAccompanied by photos or video If advisors aren’t consistently presenting MPI results to customers, technicians lose motivation to complete them thoroughly. The process breaks down. The Financial Impact of Missed Inspections Let’s run conservative numbers: 1,000 ROs per month30% not inspectedAverage additional recommended work per inspected RO: $250 That’s 300 vehicles per month leaving without a documented opportunity for additional service. 300 × $250 = $75,000 in potential recommended work per month. Even if only a portion would convert, the profit potential is too substantial to ignore. And that doesn’t account for the impact on long-term retention: inspections don’t just drive revenue today. They drive future appointments. Final Thought While more cars would be helpful, they aren’t necessary to grow service revenue. Multi-point inspection completion is not glamorous. It’s not flashy. It doesn’t generate headlines. But it quietly determines how much opportunity your service department captures—or misses. Visit TVI MarketPro3 for more expert insights on fixed ops.
Mar 10, 2026 | 3 minute read
NADA Show 2026: What Fixed Ops Leaders Must Prioritize in the Year Ahead
NADA Show 2026 was packed with technology, bold claims, and the loudest buzzword in automotive right now: AI. But when you step back and listen carefully to the conversations happening between dealer leaders, OEM executives, trainers, digital strategists, and fixed operations specialists, an even clearer theme emerges: 2026 will reward precision, process, and customer experience—not just new tools. Across our interviews with industry leaders, six dominant fixed ops themes stood out. 1. Retention Is the Growth Strategy For years, fixed ops growth rode the wave of strong vehicle sales. That cushion is gone. Fewer new vehicles means fewer natural service opportunities. Every retained customer matters more. As David Willard explained, “The new cars sold in America have gone down for the last five years… so you have less at-bats. Each individual retained customer is more important to you now than ever before.” Corey Smith from EasyCare elaborated further: “Everyone’s talking about a 70% retention rate. But is that because they have to come to you… or because they want to?” That distinction matters. True retention isn’t warranty-driven. It’s relationship-driven. TVI MarketPro3’s Scott Kelford summarized the biggest retention killers simply: -Time-Price perception-Treatment Willard added that price often isn’t the real issue. “Since COVID, I don’t think independents give you a price advantage at all… It’s the perception.” Retention in 2026 isn’t about discounts. It’s about consistency, communication, and experience. 2. The 12-Year Opportunity: Aging Vehicles Are the Revenue Engine The average vehicle on the road is now nearly 12–13 years old, yet many dealerships still focus their marketing energy on 7- to 10-year-old vehicles, depending on the focus parameters of their OEM performance metrics. TVI Unotifi’s Lauren Marzella pointed out that the average age of cars on the road is higher now than at any other time in history. TVI MarketPro3’s Steve Coad shared real-world examples of targeting 7+ year-old trucks and SUVs during specific seasons—leading to differential service, brake work, suspension repairs, and strong customer pay. Across the industry, the results extend even further. Dealers are seeing 15- and 20-year-old vehicles returning for $2,000–$3,000 repairs when engaged correctly. Ketan Bhatia, Lincoln Regional Manager for Ford Motor Company, emphasized, “The biggest Rolodex is right there at the dealer’s hands… It’s their DMS.” Instead of blanket campaigns, dealers are now using: -Mileage segmentation-Recall reactivation-Declined service follow-up-Ownership verification Marzella summed it up: “Intelligent marketing isn’t one-size-fits-all… it evolves as we learn customer behavior.” The opportunity lies in how well you communicate with the customers you already have. 3. AI Is Everywhere—But It’s Not the Easy Button AI dominated this year’s NADA conversations, but the most grounded discussions were about balance. TVI Unotifi’s Michael Lopez warned, “AI definitely [shouldn’t become a crutch.” Dealers are exploring: -AI phone answering-AI text automation-AI scheduling-AI-driven marketing optimization However, without process oversight, AI won’t fix broken systems. It will automate them. Michael Waltrip, Vice President of Fixed Operations with Auto Services Unlimited, put it bluntly: “Every customer just wants someone to answer the phone.” He also acknowledged that advisors are busy, “They’ve got a guest in front of them.” AI can help fill those gaps—especially after hours—but Waltrip also offered a critical perspective: “AI is only what you put into it… There is no easy button.” The most productive AI application emerging from NADA? Freeing up BDC teams. Lopez explained, “If they’re trying to develop business, they can’t do that if they’re taking inbound phone calls all day.” AI handling overflow scheduling allows BDC agents to focus on: -Recalls-Declined services-Maintenance follow-up-Lost customer reactivation AI works when it enhances the human experience—not replaces it. 4. Digital Marketing Must Drive Revenue, Not Just Clicks Fixed ops digital marketing has historically been an afterthought. Ian Favre, Digital Marketing Director with TVI MarketPro3, challenged that model: “Fixed operations digital marketing spend is usually the afterthought from most big box agencies.” Instead of generic service ads, granular campaigns are outperforming: -Toyota transmission repair-Brake service near me-Model-specific service queries More importantly, dealers are demanding true ROI tracking. Favre says, “Impressions and clicks don’t matter if they don’t turn into money.” The shift is toward tying:Keyword → Click → Phone Call → Closed RO → Revenue Meta advertising (Facebook and Instagram) is also becoming more precise. Instead of spraying broad audiences, campaigns are built directly from DMS data—active, inactive, or lost customers—eliminating waste. In 2026, digital advertising isn’t about visibility. It’s about measurable service revenue. 5. Process and Experience Win the Retention Game If there was one consistent undercurrent in every conversation, it was process discipline. Easy Care’s National Fixed Operations Training Director, Corey Smith, emphasized, “If you don’t have a playbook in service, you’re not going to win this retention game.” He described the difference between transactional service and experience-driven service: “If they feel good at the end, no matter how much they spent, they’re going to come back.” He also introduced a powerful mindset shift: Instead of asking, “When do you want to pick it up?” Ask, “What does your day look like today?” That subtle change reframes expectations and builds trust, along with a few other built-in procedures: Scheduling pickups, walking customers to their vehicle, setting next appointments, and treating oil change customers like engine replacement customers. Smith noted, “If I’m dropping off my $50,000 baby and I don’t hear from you, I feel like you’ve forgotten about me.” Ford Motor Company’s Lincoln Regional Manager, Ketan Bhatia, echoed the same principle from an OEM luxury perspective, “The basics of any business is communication.” Whether it’s Lincoln-level pickup and delivery or a high-volume Toyota store, the core differentiator remains consistent communication and convenience. 6. Creative Thinking Will Separate Winners Tyler Parker, TVI MarketPro3 Regional Sales Manager, and Joe Castellino, Vice President of Fixed Operations at American Motors Group, highlighted something deeper: the definition of successful service departments. Castellino says it’s all in “how we’re thinking.” Every aspect of customer outreach matters: -Converting orphan customers.-Targeting underserved markets.-Leveraging mobile service.-Reactivating lapsed owners. Growth in 2026 requires a proactive strategy, not passive reliance on legacy traffic. The Big Takeaway from NADA 2026 When you combine every interview, one truth becomes clear: The future of fixed ops is not about chasing trends. It’s about executing fundamentals with precision. -Retention over reaction-Segmentation over saturation-Efficiency over hype-Revenue over vanity metrics-Process over chaos-Experience over transactions AI will evolve. Digital tools will improve. Marketing channels will shift. But dealerships that build disciplined processes, prioritize communication, and treat every customer like they have a choice—because they do—will protect and grow fixed ops profitability in 2026 and beyond. Hear more from the experts at TVI MarketPro3.com
Feb 16, 2026 | 5 minute read
Creating a Friction-Free Fixed Ops Experience
Nobody wakes up intending to lose service customers due to a poor fixed ops experience. But every day, minor process breakdowns quietly do the damage—missed calls, slow responses, unclear handoffs, disconnected systems. Not dramatic failures, just enough friction to make customers hesitate, delay, or disappear. Across fixed operations, the message from the experts is consistent: friction is where profit leaks out. It Starts Before the Car Ever Arrives Nick Shaffer, Vice President of Sales for TVI MarketPro3, doesn’t talk about friction in abstract terms. He points to where it first appears: in the data. “Show rates and appointment lead time… are really good indicators to identify what your friction points are and improve your customer satisfaction.” In other words, friction isn’t theoretical. It’s measurable. Longer lead times. Lower show rates. Cancellations that never rebook. These aren’t customer behavior problems—they’re signals that something in the process is getting in the way. And often, that “something” has nothing to do with price. When Friction Hides Inside the BDC Lauren Marzella, VP of Growth & Client Success with TVI-Unotifi, sees friction most clearly when dealerships lack visibility into how work is actually being done. “Having a software tool that allows you the ability to look at really specific KPIs is something that is invaluable.” Without that visibility, friction hides in plain sight: Calls answered too lateTexts responded to inconsistentlyAppointments set, but never shown Lauren points out that modern systems make it possible to see exactly where breakdowns occur—down to individual performance. “And we, with our Unotifi software, are able to actually look at each of the agents' productivity… what the show rate is for those appointments, and then subsequently what the dollar amounts are that are associated with those repair orders.” Friction thrives when no one can identify it. Measurement exposes it. Busy Stores Create Invisible Barriers Tyler Parker, Regional Sales Manager with TVI MarketPro3, describes a reality every service department recognizes: stores get busy, and customers feel it. That busyness becomes friction the moment a customer can’t get addressed quickly. Missed calls. Delayed callbacks. Appointments that should have been scheduled—but weren’t. That’s why Tyler consistently comes back to immediacy and a great use of AI tools: “Sometimes it’s just easier for a text-messaged AI system to be able to answer all their questions and actually push them through to get an appointment.” Speed isn’t about rushing—it’s about removing obstacles. The longer a customer waits, the easier it becomes for them to choose an alternative option. Friction Lives in the Handoffs One of the most costly forms of friction doesn’t happen in a single department—it happens between them. Marketing generates interest. BDC engages the customer. Advisors are supposed to close the loop. When those handoffs aren’t clean, customers fall into gaps that no report can fully capture because friction hides where no one is fully accountable. Remove Friction, and the Rest Follows Nick returns to fundamentals—not technology, not tactics, but how the customer is treated. “Profits rise when we protect our hours and remove friction points. So I think that you can improve the customer experience and preserve profitability if you focus on investing in either people or technology or both that are intended to remove friction points for the customer or for inefficiencies in your own internal processes.” It’s a simple recipe of consistency, speed, clarity, and follow-through. When systems support the team instead of slowing them down, customers feel it immediately. That’s not a slogan. It’s the opposite of friction. The Quiet Truth About Profit Pricing gets attention. Technology gets headlines. However, friction is what determines whether customers ever return in the first place. When friction goes down: Show rates improveResponse times shrinkAppointments stickCustomers return Remove friction, and profit follows—not because you charged more, but because you made it easier to say yes. Explore these solutions to reduce fixed ops friction.
Jan 5, 2026 | 3 minute read
Fixed Ops Marketing That Works
As dealerships head into a more competitive and operationally demanding 2026, one thing is clear: a service department’s success no longer depends on a single marketing channel or technology. It depends on balance. It depends on consistency. And more than ever, it depends on human connection supported by smart automation. To understand fixed ops marketing that works, we spoke with Steve Coad and Tyler Parker, two industry experts and Regional Sales Managers at TVI MarketPro3, whose daily work with top-performing service departments provides a unique, ground-level view of what truly drives results. Their message? High-performing fixed ops marketing strategies blend traditional outreach, digital channels, and innovative AI tools, all while maintaining the human touch. A True Multichannel Foundation: Mail + Email (Yes, Both Still Matter) For years, many dealers assumed direct mail was fading as digital options rose. Even Steve Coad once thought so, until real dealership outcomes proved otherwise. “I used to think mail was something we really didn’t need,” Steve shared. “I said to [TVI President] Will Allen that I wanted to start selling email only because mail was unimportant. He told me I was an idiot, and he was right.” He even tested an email-only strategy with a Hendrick Automotive Group store: “What I learned was that, no, we were both wrong… You have to have both to make it work.” Industry data backs this up: Direct mail has an open rate of 80-90% compared to 20-30% for email, according to the United States Postal Service.Integrated marketing campaigns that combine print and digital channels generate a 39% increase in store traffic, according to the USPS Future of Direct Mail study. In fixed ops, where customers must be reminded when and why to return, both channels reinforce each other. Email delivers convenience and immediacy; physical mail delivers authority, legitimacy, and retention-boosting reminders customers actually keep. Dealership-Driven Digital Strategy (Not “Set It and Forget It”) The market has undergone significant evolution since 2020. Digital channels aren’t optional, but they also aren’t self-driving. “We still need to have that base of core, but we also need to have digital marketing that goes along with it,” Steve explains. “And… the dealership has to be involved with it. They can’t just hire us and think they’re going to check back in… They have to talk to us regularly about it.” This is a critical shift happening across the industry: Digital ads and social outreach generate strong engagement, but their success depends on local relevance, timely communication, and consistent oversight.Stores that treat digital as “auto-pilot marketing” are susceptible to steadily declining results over time. High-performing service departments meet routinely with their marketing partners, review KPIs, adjust offers, monitor recall data, and update audiences dynamically. Digital evolves fast—and so must your strategy. Strong BDC and Human Support (AI Helps, But Can’t Replace Humans) AI has become a powerful tool in fixed ops marketing—especially for handling inbound questions, appointment coordination, and recall outreach. But both Steve and Tyler warn against fully replacing humans: Steve advises: “AI is great… but sometimes the most important thing you can do is have the person on the phone to talk to that client… to believe that [BDCs] don’t need people… is a recipe for failure.” A high-performing service lane has: AI tools to manage volume and efficiency.A real BDC or service coordinator to provide empathy, reassurance, and problem-solving. The winning strategy: AI first, humans always available. Balanced Outreach Across Old-School and New-School Channels Tyler Parker drives the point home: “You have to tap people with multiple channels… You can’t think that some of the old-school ways are dead… You can’t think that the new-school AI ways are going to do everything for you.” Customers don’t behave uniformly. Some respond to texts.Some rely on email.Some only respond to physical reminders.Some love quick digital scheduling.Some call in and want reassurance from a person. A high-performing strategy satisfies all of them—repeatedly, consistently, and through the channels they prefer. The takeaway: no single channel wins; everything wins together. A Partner Who Handles the Back-Channel Work You Can’t One of Tyler’s most important insights: “We can go in and help [dealerships] spread out those channels… Even if they have another person… or an AI thing they believe in, we can come in and do some of that back-channel stuff that gets other people.” But each service department should be working to ensure it is: Engaging lost customers.Connecting with recall-affected households.Re-engaging customers lost to independents.Utilizing trigger-based outreach (declined services, mileage bands, warranty expirations).Layering campaigns to maximize effective frequency. Dealers rarely have time to execute this level of segmentation. This is where a partner like TVI MarketPro3 can be of assistance. Final Fixed Ops Marketing Takeaway Going into 2026, the highest-performing service departments won’t be the ones that chase trends or abandon proven methods. They’ll be the ones that build a multichannel, human-powered strategy and execute it consistently. Visit TVI MarketPro3 for more insights into fixed ops marketing.
Dec 4, 2025 | 4 minute read
Game-Changing Technology for Fixed Ops in 2025
Technology continues to redefine how dealerships engage with their customers, manage communication, and increase profitability. Two industry experts—Michael Lopez, Sales Director at UNOTIFI, and Don Shaffer, Fixed Operations Specialist with TVI MarketPro3—recently shared their insights on how integrated platforms and AI-driven tools are transforming the fixed ops landscape as we wrap up 2025. From Fragmented Tools to Unified Platforms According to Michael Lopez, the most revolutionary shift isn’t just a single tool—it’s the emergence of complete platforms that unify communication, marketing, and service coordination under one metaphorical roof. “Some technologies that are proving to be real game changers within the fixed ops world at dealerships are really just complete platforms,” Lopez explained. “A platform that can manage the communications to a customer, the lifecycle marketing that can manage what the BDC is doing—who they need to reach out to, why they need to reach out to them—as well as some artificial intelligence baked in.” In the past, dealerships relied on a mix of disjointed tools—CRM systems, email marketing software, and call scheduling apps—to connect with customers. Today, the industry is seeing a shift toward all-in-one ecosystems that streamline operations and reduce friction. “We know everyone gets busy,” Lopez added. “So, are their tools baked into that one platform that have some AI that’s helping the chat with the customers, with the ultimate goal of scheduling that appointment?” These innovative systems don’t just save time—they enhance the customer experience by ensuring consistent, relevant communication at every touchpoint. AI: The Answer to Missed Calls and Missed Opportunities While unified platforms are critical, artificial intelligence is emerging as the key driver of efficiency—especially in the BDC (Business Development Center) and service lane. Don Shaffer sees AI as a vital solution to one of the most persistent challenges in fixed ops: unanswered calls and missed service appointments. “We can’t get new customers in the door if people aren’t answering [their] phones,” Shaffer said. “A lot of times in the service departments, the advisor’s role is also to answer the phone and schedule the service appointment.” For many mid-size or smaller dealerships, building a fully staffed BDC isn’t feasible. AI fills that gap by ensuring responsiveness without overburdening the service team. “When a dealership group isn’t big enough to really have a full-functioning BDC,” Shaffer continued, “they need someone that’s going to make sure that that phone is answered on the first, second, third ring at the most and be there and to be listening.” AI-powered tools—such as intelligent voice assistants and chatbots—can now handle much of the initial communication: answering common questions, routing calls, and even scheduling appointments automatically. “I think AI really has that ability to make a huge impact in the service department’s ability to answer that phone, answer questions, and really get an appointment scheduled,” Shaffer emphasized. “I really see that in 2026 being a huge help.” The Road Ahead As we look toward 2026, dealerships that embrace integrated technology platforms and AI solutions will gain a distinct competitive edge. The budding relationship between automation and human expertise is reshaping how fixed ops teams manage their daily operations—improving efficiency, boosting retention, and ultimately driving profitability. The takeaway? Technology isn’t replacing people—it’s empowering them. And as Lopez and Shaffer both suggest, the dealerships that learn to leverage these innovations today will be the ones leading the service lanes of tomorrow.
Nov 4, 2025 | 3 minute read
Try Pulling the Right DMS Reports
Your dealership management system knows more about your fixed ops business than you may realize. Every repair order, customer visit, declined recommendation, labor sale, mileage entry, advisor transaction, and service history adds another piece to the story. Yet too often, dealerships use their DMS primarily to document what has already happened instead of uncovering what should happen next. The difference comes down to pulling the right DMS reports—and knowing what questions to ask once the numbers are in front of you. Those questions and reports matter in a market where simply increasing dollars per repair order can create a misleading picture of growth. According to Cox Automotive's repair order analysis, dealership repair order volume declined by 1.7% in 2024, while repair order revenue increased by 5.2%. In other words, a dealership can generate more revenue while simultaneously seeing fewer vehicles. Your DMS can help expose that difference. Start With Repair Order Count, Not Just Revenue Revenue matters, but it should never be viewed in isolation. Start by looking at the customer-pay repair order count over time. Compare this month to the same month last year, and look at rolling 3-, 6-, and 12-month trends. Then go deeper. How many unique customers are generating those repair orders? How frequently are they returning? Which advisors are seeing increases or declines? Which vehicle age groups are disappearing from the drive? This is where the right DMS reports begin turning a financial result into an operational story. The scale of the opportunity is significant. NADA reported that U.S. new-vehicle dealerships wrote more than 112 million customer mechanical repair orders in 2025. NADA Data 2025: Even relatively small improvements in visit frequency, retention, or recovered customers can produce meaningful additional volume at the dealership level. That idea also aligns with Nick Shaffer’s experience, shared in the TVI MarketPro3 article “TVI MarketPro3 and Nick Shaffer.” Shaffer explains that TVI’s reporting dashboards can help dealerships identify opportunities to drive better results and use their resources more efficiently. The value of the data lies not simply in documenting activity, but in helping dealership leaders determine where their attention and resources can have the greatest impact. Find the Customers Who Disappeared One of the most valuable reports in your DMS may be the one showing customers who are no longer there. Look for customers who have previously received service from you but have passed their normal return interval. Segment customers based on their last repair order date, vehicle mileage, service frequency, model year, and previous spending. A customer who visited three times in 18 months and then disappeared is telling you something. So is the customer whose vehicle is past the warranty period. So is the customer who purchased from the dealership but never completed a customer-pay service visit. Instead of treating the entire database as one audience, the right DMS reports help distinguish active customers from those beginning to disengage—and those who may already be lost. That distinction can dramatically improve marketing. A loyal customer due for maintenance should not necessarily receive the same message as someone who has not returned in 18 months. Your DMS provides the behavioral history needed to tell the difference. Look Beyond the Storewide Average Averages have a way of hiding problems. Imagine two advisors each write 200 repair orders. One consistently identifies legitimate maintenance opportunities, communicates recommendations effectively, and generates strong customer-pay sales. The other produces significantly less revenue and has a lower percentage of recommended maintenance sold. Average the two together, and the department may appear healthy. Break down performance by advisor, and you may uncover a coaching opportunity worth thousands of dollars per month. The same principle applies to effective labor rate, hours per repair order, customer-pay mix, maintenance sales, appointment show rates, declined services, and return frequency. In the TVI MarketPro3 video “Effective Marketing Strategies in Fixed Ops,” Bruce Peters, TVI MarketPro3 Fixed Operations Specialist, emphasizes the importance of clear reporting and data in demonstrating results and understanding performance. That principle extends well beyond marketing: good reporting creates accountability because leaders can separate assumptions from what is actually happening. Use Service History to Identify the Next Opportunity The smartest DMS reporting is not exclusively backward-looking. A vehicle's service history can help a dealership anticipate what may come next. Mileage, vehicle age, previous repairs, maintenance history, declined recommendations, and visit intervals can reveal customer groups likely approaching their next service need. That creates an opportunity to move from broad marketing to targeted marketing. Instead of sending a generic service offer to thousands of names, a dealership can identify customers approaching higher-mileage maintenance, customers who previously declined legitimate work, or customers whose normal service interval is approaching. The result is a message that feels less like advertising and more like useful communication. Measure Retention With More Than a Percentage Customer retention deserves particular attention because its impact reaches beyond the service drive. Service retention is much more than a fixed ops metric. Use your DMS to monitor not only the overall retention percentage but also where customers begin falling away. Look at first-to-second-visit retention, vehicle age, months since the last RO, mileage bands, and the point in the ownership cycle at which visit frequency begins to decline. The percentage tells you there is a problem. The underlying reports help tell you where it is. Your DMS Should Help You Ask Better Questions The goal is not to pull every report your DMS can generate. It is to pull the right DMS reports that answer specific business questions: >>> Where is RO volume declining?>>> Which customers are overdue?>>> Where are advisor performance gaps occurring?>>> Which declined services deserve follow-up?>>> At what vehicle age are customers disappearing?>>> Which customers are approaching their next likely maintenance need? Your DMS already contains much of the information required to answer those questions. The competitive advantage comes from doing something with it. Your DMS isn't just a record of what happened yesterday. Used correctly, it can become one of the strongest tools you have for deciding what your fixed ops department should do tomorrow.
Active vs. Inactive vs. Lost: Definitions Matter
A dealership runs a campaign targeting customers who haven't been back for service. The campaign generates repair orders, revenue looks good, and the marketing team reports a strong return. But there is one important question: Who exactly counts as a lost customer? If one dealership considers a customer lost after 12 months while another uses 24 months, those campaigns aren't targeting the same type of customer. And their marketing ROI shouldn't be evaluated as though they are. That is why active/inactive/ost segmentation is about more than database terminology. These definitions determine who receives your marketing, what message they receive, how difficult they are to bring back, and ultimately how campaign performance should be measured. Start With Clear Definitions In TVI MarketPro3's discussions around DMS segmentation, customers are separated based on the date of their most recent repair order: Active customers: Their last RO was within the past 12 months. Inactive customers: Their last RO was more than 12 months ago but less than two years ago. Lost customers: Their last RO was two or more years ago. That distinction matters because these customers don't represent the same marketing opportunity. An active customer already has a relatively up-to-date relationship with the dealership. An inactive customer is showing signs of disengagement. A lost customer has gone substantially longer without returning and may have established a service relationship elsewhere. Treating all three the same can hide what is really happening inside a marketing campaign. TVI MarketPro3 Digital Marketing Director Ian Favre discussed this type of DMS segmentation in his NADA interview with Regional Sales Manager Robert Morris. The conversation focused on using dealership data to build audience groups, such as active, inactive, and lost customers, then targeting those groups based on their actual vehicle ownership and relationship with the dealership. That is fundamentally different from sending the same service offer to everyone in the database. Why Active vs. Inactive vs. Lost Changes Your ROI Consider two campaigns that each generate 40 repair orders. Campaign A targets active customers who visited the service drive six months ago, while Campaign B targets customers who haven't returned in more than two years. On paper, both campaigns produced 40 ROs, but the marketing accomplishment is not necessarily the same. Many of Campaign A's customers may have returned without paid marketing because they were already active service customers. Campaign B is attempting to reactivate people who haven't visited in years. That doesn't mean one campaign is automatically more valuable than the other. It means the customer segment must be part of the ROI calculation. Without clearly defining active vs. inactive vs. lost, dealerships risk giving marketing credit for visits that likely would have happened anyway—or undervaluing campaigns that successfully bring genuinely lost customers back. Different Customers Need Different Messages Customer status should also influence the marketing message: An active customer might need a reminder about upcoming maintenance or a relevant mileage-based service. An inactive customer may need a stronger reason to return—convenience, dealership expertise, service history, or a timely offer. A lost customer may require a true reacquisition strategy. That kind of segmentation-based messaging is supported by broader marketing research. McKinsey research reports that personalization can increase marketing ROI by 10% to 30% while reducing customer acquisition costs by as much as 50%. The lesson for fixed ops is straightforward: the more accurately a dealership understands the customer's current relationship with the store, the more relevant the communication can become. Inactive Customers Deserve Special Attention The inactive category may be particularly valuable because these customers sit between loyalty and defection. They know the dealership. They have previously done business there. But something has interrupted the relationship. That creates an important window for marketing. Instead of waiting until a customer has been absent for several years, dealerships can use DMS data to identify when previously active customers cross into inactive status and begin communicating accordingly. This supports a point made by Scott Kelford in the TVI MarketPro3 interview “Fixed Ops Retention That Works: Scott Kelford on Building Loyalty Beyond the Numbers.” Kelford explained that many dealerships lack processes designed to positively impact lost customers and generate subsequent service visits. He also emphasized the value of using dealership data to identify how long it has been since a customer last returned for service and then prioritizing lapsed customers with more relevant outreach. As Kelford put it, “Sending the right message to the right customer at the right time gives them a reason to come in.” That principle is exactly why accurately defining service customer segments matters. When dealerships use time since last visit, mileage, service history, and other DMS data to segment customers into meaningful groups, they can tailor both the message and the level of effort to each customer’s actual relationship with the store. Lost Customers Still Have Value Once customers reach the two-year mark, the strategy changes again—but that doesn't mean they should disappear from the marketing plan. Service retention has implications far beyond the next repair order. According to Cox Automotive's 2025 Fixed Ops and Ownership Study, 74% of buyers who returned to their dealership for service said they were likely to purchase from that dealership again, compared to just 44% of buyers who did not return for service. That 30-point difference demonstrates why bringing a customer back into the service drive can have value across the entire dealership. A successful lost-customer campaign isn't simply generating today's RO. It can potentially restart a relationship that affects future service, vehicle acquisition opportunities, and the customer's next vehicle purchase. Measure Each Segment Separately This is where dealerships can improve the accuracy of their marketing reporting: instead of reporting one blended number for a service campaign, separate performance by customer status. How many active customers responded? How many inactive customers returned? How many customers who had been gone for two years or longer were reactivated? How much customer-pay revenue did each group generate? What did it cost to produce each returned RO? Those numbers tell a much more useful story than total clicks, leads, or even total repair orders alone. They also allow fixed ops leaders to compare campaigns more intelligently over time. Definitions Create Accountability There is no value in labeling customers active, inactive, or lost if those definitions constantly change. Establish the rules. Apply them consistently. Then measure performance against them. Because defining these customers isn't just a way to organize a database. It defines the marketing challenge. An active customer may need retention. An inactive customer may need intervention. A lost customer requires reacquisition. When dealerships understand the difference—and measure marketing ROI accordingly—they get a much clearer picture of whether their marketing is simply reaching customers or actually changing customer behavior. Let TVI MarketPro3 help you define and target your service drive customers.
Dealership Parts Obsolescence 12-Month Audit
A dealership’s parts shelves can appear full while failing to support the service drive’s needs. The problem is not simply clutter. Dealership parts obsolescence results in cash that cannot be reinvested, reduced storage capacity, slower inventory turns, and a greater risk of ordering parts that will not sell. NADA defines parts obsolescence as inventory aged more than 12 months with no demand. That makes the 12-month no-sale report an important management tool—but it should not be treated as an annual cleanup list. It should be the starting point for discovering how obsolete inventory entered the department and preventing the next wave of aging stock. What “12-Month Obsolete” Really Means A part with no demand for 12 months deserves immediate review, but age alone does not determine what should happen next. A thorough automotive parts inventory audit should consider: ~ Date of most recent sales, last stock, and last activity~ Current quantity on hand~ Monthly sales history and quarterly lost sales~ Reorder level, maximum stocking level, quantity on order, and quantity on back order~ Stock status, including whether the part is normally stocked, a special-order part, changed, or recently returned~ Return status~ Superseding and superseded part numbers~ Model-year fitment range~ Bin, shelf, and drawer location The difference between months no-sale and months no-receipt is especially important. Months no-sale shows how long it has been since customer demand occurred. Months no-receipt shows how long it has been since another unit entered inventory. Looking at both can reveal a damaging pattern: a part may not be selling, yet an automatic replenishment setting, a manual order, or an incorrect stocking level continues to bring additional units into the department. Not every 12-month no-sale part should be liquidated automatically. Legitimate exceptions may include required OEM stock, newly introduced models, safety or campaign components, low-frequency but operationally critical parts, and inventory reserved for an active repair. The audit helps determine which parts still support current or future demand. Obsolete Inventory Freezes Working Capital Consider a dealership carrying $600,000 in parts inventory. If 10% of that stock has had no demand for more than 12 months, approximately $60,000 is tied up in inventory that may no longer support current operations. That money cannot easily be used to stock faster-moving parts, upgrade equipment, train employees, expand wholesale operations, improve customer transportation, or market the service department. Obsolete inventory also weakens dealership inventory turns. It increases the average inventory investment without a proportional increase in sales, leaving the dealership’s cash sitting on the shelf longer. NADA advises dealerships to evaluate inventory quality rather than relying exclusively on a broad months-supply calculation. Its dealership parts-management guidance emphasizes prioritizing fast-moving inventory while tracking obsolete and phase-out stock through DMS reporting. The Report Shows What Happened. The Audit Reveals Why. The 12-month report tells a dealership what has already gone wrong. A disciplined audit reveals why it happened and what must change. The goal is not to maximize the number of parts on the shelf, but to have the right parts available to support current repair demand while protecting the dealership’s cash. Is your service marketing generating demand that aligns with the customers and vehicles in your market? TVI MarketPro3 uses DMS data to identify and engage inactive, lost, and new VIN customers, creating measurable opportunities throughout fixed operations. Let TVI know how we can level up your service department marketing game.
Google Reviews in Fixed Ops: Turning 3-Star Stores Into 4.6+ Machines
Your Customers Are Checking Reviews Before They Call Before a customer schedules service, visits your website, or speaks with an advisor, there's a good chance they've already checked your Google reviews. In today's digital-first environment, your Google rating has become one of the most visible indicators of your dealership's reputation. It influences customer trust, local search visibility, click-through rates, and whether customers ultimately choose your service department over a competitor. A well-managed Google Business Profile helps dealerships improve both online visibility and customer engagement. Why Google Reviews Have Become a Fixed Ops KPI Most service managers track: Repair ordersEffective labor rateCustomer-pay salesHours per RO But many overlook a metric that customers see before any of those numbers matter: Google reviews. A strong review profile impacts both consumer trust and local search rankings. Research consistently shows that the quality, quantity, and recency of reviews influence how prominently businesses appear in local search results. Customer retention increasingly depends on convenience, trust, and the overall experience customers receive throughout the service journey. Reviews serve as a public reflection of all three. What 4.6-Star Service Departments Do Differently The best-performing dealerships don't simply collect more reviews—they create better customer experiences. High-rated stores typically dedicate effort to: Consistent communicationCreating accurate expectationsFast response timesConvenient schedulingProactive service updates Customer feedback is often a direct reflection of operational consistency. In many cases, negative reviews aren't caused by repair quality—they stem from communication breakdowns, wait times, or unmet expectations. The good news? These issues are fixable. Building a Review Generation Machine Many dealerships hope satisfied customers leave reviews. Top-performing dealerships make it part of the process. That process often includes: Asking every satisfied customer for feedbackSending review requests via text or emailResponding to every review, positive or negativeMonitoring review trends monthlyRecognizing advisors who generate positive customer feedback According to Google, businesses that actively engage with reviews demonstrate responsiveness and build stronger customer trust. Consistent responses also signal to prospective customers that the dealership values feedback and the customer experience. The goal isn't simply to increase review volume—it's to create a sustainable system that continuously generates fresh, authentic customer feedback. Your Google Rating Is Telling a Story A 4.6-star service department isn't usually the result of a clever marketing campaign. It's the result of consistent execution. The dealerships with the strongest online reputations are those that communicate effectively, deliver a positive customer experience, and make it easy for satisfied customers to share their feedback. In today's fixed ops landscape, Google reviews aren't just indicators of customer satisfaction—they influence future customer decisions. The dealerships that treat reputation management as an operational priority will be better positioned to earn trust, improve retention, and grow service revenue.
Dealership Service Response Times: Why Every Minute Costs Revenue and Retention
In fixed operations, speed isn’t just a customer experience metric anymore—it directly influences trust, appointment conversions, retention, and long-term profitability. Today’s customers expect responses with the same immediacy they experience from retailers, food delivery apps, and online banking. Yet many dealership service departments still rely on overloaded advisors, manual follow-up processes, fragmented communication tools, and inconsistent ownership of customer interactions. The result? Delayed responses become lost opportunities. Whether it’s a missed service call, online appointment request, declined repair recommendation, recall notification, or text asking for a vehicle status update, the timing of your first response shapes how customers perceive your dealership. And increasingly, perception becomes retention. The New Customer Expectation: Fast, Convenient, Transparent Dealership customers have become less tolerant of friction in service experiences. Research from Cox Automotive found customer satisfaction drops significantly as inconvenience and delays increase, with longer wait times directly affecting whether customers return for future service visits. Consumers who spent 2.5 hours or less at the dealership reported the highest satisfaction, while extended delays pushed customers toward alternative providers (Cox Automotive Inc.). The expectation extends beyond time spent in the service lane. Customers increasingly expect: Immediate appointment confirmationsRapid responses to inquiriesFrequent status updatesConvenient digital communicationTransparency throughout the repair process According to CDK’s 2026 Service Shopper findings, convenience and existing relationships now outweigh price as major drivers of service loyalty. Younger generations in particular prefer digital-first interactions, with 40% of Gen Z scheduling service online instead of calling. If a dealership’s communication process doesn’t match customer expectations, independent shops often become the easier alternative. Delayed Follow-Up Creates Hidden Revenue Leaks Slow response times affect more than customer satisfaction scores. They also influence: Appointment show ratesRepair approvalsRecall completion ratesCustomer retentionFuture RO countCSI performanceLifetime customer value Each unanswered inquiry introduces friction, and friction compounds. A customer who submits an online appointment request at 7 PM and receives no acknowledgment until the next afternoon may: Book elsewhereDelay needed maintenanceLose confidence in future communicationView the dealership as difficult to work with These outcomes rarely appear as a single KPI, but collectively they erode long-term profitability. Fixed Ops Profitability Depends on Retention The importance of retention cannot be overstated. Research consistently shows that fixed operations drive a substantial portion of dealership profitability. NADA statistics cited by industry sources indicate that fixed ops contributes more than half of many dealerships’ gross profit. Meanwhile, as Chris Collins discusses in a January 2026 article entitled “Fixed Ops Metrics Your Dealership Needs for 2026,” customer satisfaction and retention directly influence future service visits and eventual vehicle purchases. The math is straightforward: Faster responses → Better experience → Stronger trust → Higher retention → More future ROs Service loyalty is built one interaction at a time. Check out TVI MarketPro3 for more fixed ops expert insights.
Why Some Service Departments Resist Video MPI
Most dealership leaders understand the promise of video multi-point inspections (MPI) by now. Customers want transparency. Advisors need better tools to explain recommendations. Service departments are looking for ways to improve approvals, retention, and trust. And fixed ops leaders continue searching for opportunities to increase profitability while delivering a better experience. The technology exists. The benefits are widely discussed. Yet many dealerships still struggle to consistently embrace video MPI as part of everyday operations. Why? Because implementing software is relatively easy, but changing behavior is much harder. In a Dealership Guy article, Christian Crain, VP of Operations at Crain Automotive, points out the resistance: “We had an issue where the advisors didn't see the value… I mean, they should have because it was going to increase their hours per RO.” For some stores, technician participation remains inconsistent. Others struggle with advisor follow-through. Some have introduced video MPI but never integrated it into a larger communication process. And in many cases, leadership expectations around usage remain unclear. The result? Video MPI becomes another tool in the stack rather than a strategy for improving customer communication. That distinction matters because customers rarely judge dealerships based solely on recommendations; they judge them based on whether those recommendations feel credible, understandable, and trustworthy. A Video MPI Isn’t Just About Showing Problems. It’s About Building Trust. Dealerships often frame video MPI as a technology initiative, but customers experience it differently: to them, a thoughtful video can feel like transparency. Education. Proof. A technician who takes the time to explain service needs—rather than simply recommending add-ons—can shift how customers perceive the relationship. As Bruce Daugherty, President & Owner of ADO Consulting, shared during the TVI MarketPro3 YouTube episode, How Smart Dealers Are Winning with Fixed Ops Marketing Right Now, “You're developing a friendship with that customer. If they'll watch a video and they believe that you're trustworthy, honest, and you're imparting good information, then they're going to watch every video you send them.” He continued: “Those people will pay you a profit… if they believe in you. So a video is a great way to establish the relationship.” Notice what he emphasizes: Not software. Not technology. Trust. Because trust is often what drives approvals. Why Some Service Departments Resist Video MPI Adoption Resistance rarely comes from one issue. More often, it comes from layers of operational friction. Technician Pushback: “This Takes Too Long.” One of the most common objections is efficiency. Technicians may believe recording videos interrupts workflow or slows productivity. Leadership then faces an important question: Is a video MPI truly slowing operations, or has the process never been optimized? Lack of Accountability If participation isn’t measured, consistency often suffers. What gets discussed occasionally becomes optional, and what gets tracked tends to improve. Weak Process Integration Video MPI can’t succeed in isolation. Its impact diminishes if: Advisors aren’t referencing videos during conversationsRecommendations remain genericVideos are sent without explanation Leadership Inconsistency Employees tend to mirror expectations. If managers only occasionally treat video MPI as important, adoption becomes uneven. The Advisor Still Matters Video doesn’t replace communication; it strengthens it. Customers don’t simply need evidence. As Daugherty explains, they need understanding: “90% of the time, it's advisors. 90% of the time, it's poor communication. So that's where, if that same [advisor]walked out with a video of the leak and said, ‘Sir, I'm sure you've seen the drops in your garage and on the driveway, and let me show you a video as to why. And then I'll explain what we've got to do to fix it and why it's going to be better for your car.’” Then he added: “If you do it that way, you're going to sell the work 80% of the time.” It isn’t just about creating more videos. It’s about creating better communication. Video MPI May Influence More Than Immediate Approvals The strongest dealerships understand that customer communication doesn’t end when work is declined. Video can also support retention, follow-up, and future appointments. In the TVI article Winning Back Lost Service Customers: Where Strategy Meets Execution, Joe Pistilli, Customer Success Director at TVI Unotifi, shared: “Being able to follow up with a customer due to a decline and give them informational videos… is key. We can bring 10% of the customers back that declined originally with a good informational video.” That insight highlights something important: Video isn’t only about selling today’s recommendation. It may influence whether customers return tomorrow. More Adoption Isn’t Automatically Better This conversation shouldn’t become: 100% participation = success Because rushed videos don’t build trust. Low-quality explanations don’t improve understanding. Poor communication doesn’t strengthen relationships. The goal isn’t merely adoption. The goal is: Consistent adoption + quality + advisor engagement + process alignment That combination creates stronger experiences. Questions Fixed Ops Leaders Should Be Asking Instead of asking: "Do we have video MPI?" Ask: Are technicians consistently using it?Are advisors incorporating videos into conversations?Are customers actually viewing videos?Do approval rates improve when videos are used?Is customer satisfaction increasing?Are declined services decreasing?Is video MPI measured as a KPI?Does leadership reinforce expectations consistently? Because implementation isn’t the finish line. Behavior change is. Final Thought: Video MPI Isn’t a Technology Initiative Dealerships that are seeing the greatest impact from video MPI may not have the latest software. They may simply have stronger processes, clearer expectations, better communication, and a commitment to making transparency part of the customer experience. Because at its core: Video MPI isn’t about recording inspections. It’s about helping customers understand, trust, and move forward confidently, and that’s exactly why some service departments are still stiff-arming it. Not because the technology lacks value, but because adopting tools is easier than changing habits.
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