5 Reasons Why You Are Not Retaining Out-of-Warranty Service Customers
Losing customers once their warranty expires? You're not alone. Many dealerships struggle to retain service customers beyond the warranty period, often watching them take their business to independent repair shops. If you're facing this challenge, it's time to identify the roadblocks and fix them before your service lane empties out. Here are five key reasons why your out-of-warranty customers aren’t returning—and what you can do about it.
1. Negative Perception Is Pushing Them Away
When the warranty expires, customers start paying out-of-pocket, and the first thing they notice is price. Many assume dealerships charge significantly more than independent shops. If you’re not addressing this perception, you're losing business.
Solution: Be transparent about pricing and highlight the value you provide. Offer competitive pricing on essential services, provide bundled maintenance packages, and ensure that customers understand the benefits of certified service, OEM parts, and factory-trained technicians. A dedicated FixedOps website with clear pricing and promotional offers can make a big difference.
2. Your Marketing Is Restricted to Car Sales
Many dealerships focus their marketing efforts on new car sales and warranty customers, leaving out-of-warranty customers in the dark. Without consistent engagement, they forget about your service department and look elsewhere.
Solution: Implement hyperlocal service marketing strategies that target customers based on location and service needs. Use digital advertising, email campaigns, and social media to remind them why your dealership is still the best choice. FixedOps Velocity specializes in hyperlocal marketing that keeps your service department top-of-mind for customers in your area.
3. They Don’t See Any Reason to Stay
Independent repair shops market themselves as more convenient, friendly, and cost-effective. If your service department isn't actively demonstrating why it’s the better choice, customers won’t see a compelling reason to stay.
Solution: Promote the unique advantages of dealership service. Offer loyalty rewards, exclusive discounts, free multi-point inspections, and customer-friendly amenities like free Wi-Fi, shuttle service, and loaner cars.
4. Your Online Presence Isn’t Engaging
25% of automotive search queries are about service and parts. Customers research their options online before booking the service. If your dealership’s service department isn’t visible or engaging on digital platforms, you're losing potential appointments to competitors.
Solution: Invest in a dedicated service website that ranks high in local search results and makes it easy for customers to book appointments. Use social media to share customer testimonials, service tips, and limited-time offers.
5. You’re Not Leveraging Data to Keep Them Engaged
If you're not using customer data to personalize communication, you’re missing opportunities to bring them back. A generic email blast won’t keep customers engaged.
Solution: Use data-driven marketing to send timely, personalized reminders for oil changes, brake checks, and seasonal maintenance. With the right tools, you can predict when a customer is due for service and proactively reach out to them.
Conclusion
Retaining out-of-warranty customers isn’t about competing solely on price, it’s about demonstrating value, maintaining strong customer relationships, and staying top-of-mind through strategic marketing. By marketing your service department, you can strengthen your online presence and build long-term loyalty and keep your service bays full.
Need a marketing ninja to increase your dealership profitability? FixedOps Velocity can help you! Our service marketing solution is designed to help dealerships overcome these challenges and retain more service customers. Want to see how it can work for you? Let’s connect!
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