How to Increase Dealership Service Revenue with Automation

The service department plays a critical role in overall dealership profitability. In 2024, according to the National Automobile Dealers Association, dealerships wrote more than 270 million repair orders, with service and parts sales exceeding $156 billion. However, many dealerships face challenges like missed appointments, inefficient scheduling processes, lost upsell opportunities, and inconsistent customer communication that hinder them from maximizing their service and parts revenue. The key to addressing these problems and boosting the bottom line lies in automation. Optimizing dealership processes with AI-powered tools becomes a powerful engine for increasing service revenue.

Why automation matters for fixed ops revenue

In the dealership service department, automation technology can be strategically used to streamline, enhance, and optimize each distinct step within the entire service customer journey. It’s about moving beyond just general internal process improvement and focusing specifically on automating those critical, often customer-facing, interactions that directly contribute to a completed service, customer satisfaction, and revenue generation. Various aspect of the dealership customer journey can be automated, from the initial interactions to post-service follow-ups.

The initial contact and booking process

The manual process for initial customer contact and booking usually involves a customer calling a dealership. If the call takes place after hours or during the busiest times of the business day, a customer might be routed to a voicemail inbox or face a dead-end call thanks to outdated IVR systems. When a person answers the call, a receptionist or advisor manually searches for slots for appointments. When done manually, dealerships can usually only answer one call at a time, meaning other calls are left waiting on hold. 

When the initial contact and scheduling are automated, an AI receptionist like STELLA AI answers 24/7, answers questions, and books appointments via voice, SMS, or chat based on real-time availability. With automation, the beginning stages of a customer’s experience are smooth and efficient, setting the stage for a positive service or sales transaction. 

The pre-service confirmation

The manual process for pre-service confirmation typically involves service advisors or BDC agents dedicating time to individually calling or texting customers to verify their upcoming appointments. This can lead to games of phone tag, voicemails being left and potentially unheard, or conversations that take longer than necessary. If staff are busy or shorthanded, these crucial confirmation calls might be delayed or missed altogether, increasing the risk of no-shows.

When pre-service confirmations are automated, the system proactively sends SMS and/or email reminders to customers before their scheduled service. These automated messages clearly state the appointment details and often include options for the customer to easily confirm with a simple reply (e.g., "Reply C to Confirm") or, if needed, to quickly reschedule or request contact. This significantly reduces the likelihood of no-shows by keeping the appointment top-of-mind and solidifies the booked service transaction with minimal human intervention.

The post-service and future booking interaction

The manual process for securing future service appointments often depends on service advisors making follow-up calls, sending emails, mailing reminders to customers about declined services, or simply hoping the customer remembers when their next maintenance is due. This sporadic approach not only places additional workload on already busy staff but also leaves room for missed opportunities. Without a structured system in place, customer retention becomes inconsistent, and valuable future service revenue may be lost.

When the post-service experience is automated, customers receive timely thank-you messages and CSI (Customer Satisfaction Index) surveys shortly after their visit, reinforcing a sense of care and professionalism. More importantly, AI-powered automated reminders for upcoming maintenance are sent based on vehicle history and OEM-recommended service intervals. These communications can include convenient links to book the next appointment or the phone number to call so that a solution like STELLA AI can answer at any time, on the first ring, helping secure future transactions while keeping the customer engaged. This streamlined, proactive approach not only improves retention and loyalty but also supports the fixed ops imperative: driving efficiency and profitability.

How automation helps increase dealership service revenue

In a traditional service department, missed phone calls, especially after hours or during peak times, can result in lost appointments and, ultimately, lost revenue. Relying solely on human availability means every unanswered call is a missed opportunity to secure a transaction. Companies that implement automation in the sales process have observed a reduction in sales admin time of 10 to 15 percent, according to McKinsey. With automation, AI-powered virtual receptionists or scheduling assistants are available 24/7 to handle appointment bookings and service inquiries. These systems can answer common questions, guide customers through the booking process, and even reschedule existing appointments without human intervention. STELLA, for example, can book an appointment in less than 2 minutes and cancel one in under 30 seconds. 

Another problem with not embracing automation is that inefficient scheduling leads to technician downtime and overbooking. Systems like STELLA AI understand op codes and can help dealerships optimize schedules based on job type, parts availability, and bay capacity.

The impact is immediate and measurable: more calls answered, more appointments booked, and fewer opportunities slipping through the cracks. McKinsey has found that companies that successfully implement sales automation have seen a revenue increase of 10 to 15 percent. This means dealerships, by strategically applying automation tools in their operations, stand to realize a significant boost in their service revenue, potentially achieving a similar increase in this critical profit center.

Choosing the right automation tools for your fixed ops

Selecting the appropriate automation technology is a critical strategic decision for fixed operations managers. You want to ensure you invest in tools that will integrate seamlessly into your existing environment, empower your team, scale with your business, and deliver measurable results in terms of both efficiency and, crucially, revenue growth. Dealerships that embrace automation should carefully consider the following factors when evaluating and selecting a provider:

• Seamless integration with DMS and existing systems. Your Dealer Management System (DMS) is the heart of your dealership's operations. Any new automation tool must integrate smoothly with it, as well as other critical systems like your service scheduling platform or customer communication tools. Look for providers with proven, robust integrations with the major DMS platforms your dealership uses, ensuring data flows freely and accurately in both directions. With many automotive partners, STELLA AI offers this seamless integration.

• Scalability to support growth. As your service department becomes more efficient and potentially handles higher volume, your automation tools need to keep pace. Select providers whose solutions are scalable, capable of handling increased call volume, additional users, or the potential expansion into new services or locations. 

• Focused on automotive-specific needs. The fixed operations environment has unique workflows, terminology, compliance requirements, and data needs (VINs, service history, labor codes, parts catalogs, etc.) that generic automation tools simply won't understand. Prioritize providers with deep industry experience who have built their solutions specifically for dealerships and service departments. Their tools should reflect a true understanding of the repair order lifecycle, digital multi-point inspections, customer communication preferences in auto repair, and the nuances of parts and labor management. STELLA Automotive AI has worked with industry leaders and top automotive companies for years, creating a product that fits the needs of dealerships. 

• Demonstrable ROI for service revenue. Beyond just saving time or reducing errors, the chosen automation tools should provide a clear and demonstrable return on investment, particularly in boosting service revenue. Ask potential providers for case studies from dealerships similar to yours. 

By carefully evaluating potential automation providers against these key criteria, fixed operations managers can make informed decisions that lead to successful technology adoption, improved operational performance, enhanced customer satisfaction, and ultimately, sustainable revenue growth for the dealership's service department.

Embracing dealership automation

Automation is a powerful lever for driving top-line revenue growth and enhancing the customer experience. By strategically applying technology, service departments can unlock new profit centers, increase transaction value, and improve customer retention, ultimately leading to sustainable business expansion.

The path to enhanced growth and profitability begins with understanding where your service department can benefit most from automation. Take the first step by analyzing your current workflows, identifying bottlenecks, and exploring available technologies. Start evaluating how STELLA can help your dealership automate important steps in the customer journey. 

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