{"id":2450,"date":"2025-06-26T18:32:06","date_gmt":"2025-06-26T18:32:06","guid":{"rendered":"https:\/\/www.tvi-mp3.com\/blog\/?p=2450"},"modified":"2025-06-26T18:52:44","modified_gmt":"2025-06-26T18:52:44","slug":"dealership-fixed-operations-retention","status":"publish","type":"post","link":"https:\/\/www.tvi-mp3.com\/blog\/dealership-fixed-operations-retention\/","title":{"rendered":"Dealership Fixed Operations Retention: Building Loyalty That Lasts"},"content":{"rendered":"\n<p>In today\u2019s hyper-competitive market, retaining service customers is the most profitable play a dealership can make\u2014yet it\u2019s one of the most overlooked. <\/p>\n\n\n\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\">\n<p>While many fixed operations managers still chase metrics and blast out discounts, the most innovative leaders are shifting their focus to long-term customer loyalty. According to <strong>Scott Kelford<\/strong>, Regional Sales Manager at <strong>TVI MarketPro3<\/strong>, this shift starts from within: \u201cCustomer retention\u2026 It\u2019s not a numbers game. It\u2019s taking care of the guest and truly getting the customer back with a good experience.\u201d<\/p>\n\n\n\n<div style=\"height:62px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2><strong>Why Fixed Ops Retention Matters More Than Ever<\/strong><\/h2>\n\n\n\n<p>The service department contributes <a href=\"https:\/\/www.cbtnews.com\/service-department-now-makes-up-49-of-your-dealerships-gross-profit\/\"><strong>up to 49% of a dealership\u2019s total gross profits<\/strong><\/a>, according to NADA\u2019s 2024 Data Report. <\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/www.tvi-mp3.com\/blog\/wp-content\/uploads\/2025\/06\/Dealership-Fixed-Operations-Retention-1024x683.png\" alt=\"Dealership-Fixed-Operations-Retention\" class=\"wp-image-2451\" srcset=\"https:\/\/www.tvi-mp3.com\/blog\/wp-content\/uploads\/2025\/06\/Dealership-Fixed-Operations-Retention-1024x683.png 1024w, https:\/\/www.tvi-mp3.com\/blog\/wp-content\/uploads\/2025\/06\/Dealership-Fixed-Operations-Retention-300x200.png 300w, https:\/\/www.tvi-mp3.com\/blog\/wp-content\/uploads\/2025\/06\/Dealership-Fixed-Operations-Retention-768x512.png 768w, https:\/\/www.tvi-mp3.com\/blog\/wp-content\/uploads\/2025\/06\/Dealership-Fixed-Operations-Retention-1536x1024.png 1536w, https:\/\/www.tvi-mp3.com\/blog\/wp-content\/uploads\/2025\/06\/Dealership-Fixed-Operations-Retention.png 1800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n<\/div>\n\n\n\n<p>However, retaining those high-margin service customers has become increasingly difficult due to rising competition from independent repair shops and chain service centers.<\/p>\n\n\n\n<p>Many customers begin to drift away from the dealership the moment their warranty ends. As Kelford warns, \u201cThat\u2019s one of the biggest challenges\u2026 when the 3\/36, the 5\/50, or the six-year\/100 goes out&#8230; customers look to bail.\u201d<\/p>\n\n\n\n<h2><strong>Stop Chasing Numbers, Start Building Experiences<\/strong><\/h2>\n\n\n\n<p>A common mistake in fixed ops retention is reducing it to raw metrics\u2014repair order (RO) counts, average dollar amounts, and discount ROI. While KPIs are important, Kelford cautions, \u201cThe biggest mistake is chasing a number and not focusing on the customer\u2026 We\u2019re sending out 99-cent oil changes and focusing on just getting that repair count.\u201d<\/p>\n\n\n\n<p>Gimmicks don\u2019t drive long-term retention, which is powered by consistent, personalized care. <a href=\"https:\/\/hbr.org\/2014\/08\/the-value-of-customer-experience-quantified\">Studies show<\/a><strong> <\/strong>consistency across customer interactions increases trust and brand loyalty.<\/p>\n\n\n\n<h2><strong>The Role of Culture in Retention<\/strong><\/h2>\n\n\n\n<p>\u201cRetention is here to stay, and it\u2019s taken the place of CSI in many ways,\u201d says Kelford. CSI scores can be manipulated, but genuine customer loyalty can\u2019t. That\u2019s why building a culture around service excellence matters.<\/p>\n\n\n\n<p>\u201cYou\u2019re going to hear me say this a lot\u2014it\u2019s culture,\u201d Kelford emphasizes. \u201cGetting your fixed ops departments to be cohesive, have a common goal, and just take care of the guest.\u201d<\/p>\n\n\n\n<p>Dealerships that prioritize team training, shared departmental KPIs, and internal service standards see significantly better retention outcomes than those that just chase a number.<\/p>\n\n\n\n<h2><strong>Retention Drops? Watch for These Warning Signs<\/strong><\/h2>\n\n\n\n<p>If your retention is trending downward, Kelford advises examining key internal shifts:<\/p>\n\n\n\n<ul><li>Has your leadership changed?<br><\/li><li>Did you remove shuttle service, loaner vehicles, or other amenities? Shuttle service or loaner vehicles?<br><\/li><li>Did you stop washing vehicles after service?<br><\/li><\/ul>\n\n\n\n<p>Tracking operational and procedural changes alongside RO trends can reveal patterns that affect customer loyalty. Kelford recommends maintaining a calendar or notes for review: \u201cIt\u2019ll stick out.\u201d<\/p>\n\n\n\n<h2><strong>KPIs &amp; CRM Data: Use Them to Connect, Not Just Report<\/strong><\/h2>\n\n\n\n<p>Customer retention KPIs should do more than fill a spreadsheet; they should guide human interactions. Kelford urges service managers to use CRM data for proactive outreach: \u201cUse that list to get a BDC rep or manager to reach out\u2026 \u2018Hey, Mrs.Jones, we understand you\u2019re due for service. What time would work for you?\u2019\u201d<\/p>\n\n\n\n<p>According to a <a href=\"https:\/\/media.bain.com\/Images\/BB_Prescription_cutting_costs.pdf\">study<\/a> by Bain &amp; Company, \u201cacross a wide range of businesses, customers generate increasing profits each year they stay with a company.\u201d<\/p>\n\n\n\n<h2><strong>Tools That Support\u2014Not Replace\u2014Your People<\/strong><\/h2>\n\n\n\n<p>While technology and marketing automation can help, they should never replace the human touch. As Kelford says, \u201cYou can\u2019t expect a marketing company today to organically bring people in via postcard and email. You\u2019ve got to do everything.\u201d<\/p>\n\n\n\n<p>Companies like <a href=\"https:\/\/www.tvi-mp3.com\/solutions\"><strong>TVI MarketPro3<\/strong><\/a> offer strategic marketing and retention programs for fixed ops departments. Still, their most significant impact occurs when dealership teams are aligned around the customer journey, not just the next RO goal.<\/p>\n\n\n\n<h2><strong>Final Take: Retention Is a Team Sport<\/strong><\/h2>\n\n\n\n<p>There\u2019s no one-size-fits-all offer or tech tool that guarantees retention. What works is a process\u2014a culture\u2014that treats every customer interaction like it matters.<\/p>\n\n\n\n<p>\u201cThere\u2019s a lot of blood, sweat, and tears to get [customers] in,\u201d Kelford concludes. \u201cBut then we don\u2019t do a good job of giving them that experience when they\u2019re physically in front of the consultant.\u201d<\/p>\n\n\n\n<p>If your dealership wants to win on retention, start with your people, processes, and purpose, not a coupon.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In today\u2019s hyper-competitive market, retaining service customers is the most profitable play a dealership can make\u2014yet it\u2019s one of the most overlooked. While many fixed operations managers still chase metrics and blast out discounts, the most innovative leaders are shifting their focus to long-term customer loyalty. According to Scott Kelford, Regional Sales Manager at TVI [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2451,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,5],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.0.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<meta name=\"description\" content=\"Discover why dealership fixed operations retention is the most overlooked profit driver in dealerships\u2014and how to fix it. 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