How to Increase Dealership Service Retention to 72%: The Complete Fixed Ops Marketing Guide for 2025

Your service customer just went to Jiffy Lube. Again.

She bought a car from you six months ago. You sent her three emails. Then nothing. Her first oil change came due. She drove past your dealership and pulled into the quick lube down the street.

You lost her.

This happens every day at dealerships across North America. You spend thousands getting people to buy cars. Then you let them disappear into independent shops for service.

Here’s what that costs you: according to NADA data, dealerships wrote more than 137 million repair orders last year, generating over $81 billion in service and parts sales. That’s massive. But here’s the problem, most of that money should be yours, and it’s not.

The National Automobile Dealers Association says your service department should aim for 72% or higher retention in every category. Most dealerships fall way short of that number.

This guide shows you how to hit that 72% benchmark. No fluff. Just strategies that actually work in 2025.

Why Service Retention Actually Matters (The Money Talk)

Let’s talk numbers.

Your service bay makes more money than your showroom right now. Especially when new car inventory gets tight or margins shrink. Fixed ops keeps the lights on.

But only if customers come back.

Research shows that acquiring a new customer costs 7 to 10 times more than keeping an existing one. Think about that. Every service customer who leaves costs you way more than just one lost oil change.

It gets better. A study by Bain & Company found that increasing customer retention rates by just 5% can boost profits anywhere from 25% to 95%. That’s not a typo. A small improvement in retention creates massive profit gains.

Why? Because retained customers spend more. They trust you. They come back for bigger jobs. That oil change customer becomes a brake job customer. Then they need tires. Then transmission service. Over three years, one loyal service customer is worth thousands of dollars.

And here’s the bonus: people who have good service experiences come back to buy their next vehicle from you. Service retention feeds sales retention. It’s a cycle.

Right now, with new car sales unpredictable and economic uncertainty everywhere, dealerships are leaning harder on fixed operations for profitability. Service departments aren’t just nice to have. They’re essential.

But you can’t bank on service revenue if customers only visit once and vanish.

What’s Actually Killing Your Service Retention

Walk through what happens after someone buys a car at your dealership.

Day one: they’re excited. They love you. You’re their favorite dealer.

Day 30: they get a generic “thank you for your purchase” email.

Day 90: nothing.

Day 180: their maintenance light comes on. They need an oil change. They Google “oil change near me.” They see $29.99 at the quick lube. They see $89 at your dealership (or so they think, because your pricing isn’t clear online).

They go to the quick lube.

You just lost them.

This happens because of a few key problems:

Independent shops are hunting your customers. Quick lubes and independent mechanics specifically target people who just bought new cars. They know new VIN customers are valuable, and they’re aggressive about getting them in the door with low prices and convenience.

You’re not staying in touch. Most dealerships send a few automated emails after the sale, then go silent. Customers forget about you. Out of sight, out of mind.

Price perception kills you. Customers think dealerships are expensive. Sometimes they’re right. Sometimes they’re wrong. But if you don’t communicate your value and pricing clearly, they’ll always assume you’re the expensive option.

Your follow-up systems are broken. Even when customers do come in for service, many dealerships fail to follow up properly. No reminder for the next service. No thank you text. No check-in to make sure everything went well. The customer leaves and you hope they remember to come back. Hope isn’t a strategy.

The service experience doesn’t match expectations. Today’s customers expect transparency. They want to know what you’re doing to their car. They want to see it. They want clear explanations. When your service advisor just hands them a bill with line items they don’t understand, trust breaks down.

Fix these problems and your retention rate climbs.

The 72% Service Retention Benchmark Explained

So what does 72% retention actually mean?

Simple. If 100 customers come to your service department this year, 72 of them should come back next year. That’s the benchmark NADA recommends dealerships aim for.

Here’s how to calculate your current retention rate:

Take the number of unique service customers you had last year. Now count how many of those same customers came back this year. Divide returning customers by total customers from last year. Multiply by 100. That’s your retention percentage.

Example: You had 1,000 service customers in 2023. In 2024, 650 of those same customers came back. Your retention rate is 65%.

Not at 72% yet? You’re not alone. Many dealerships struggle to hit this benchmark, especially with competition from independent shops getting fiercer.

NADA also says your customer-pay labor should account for 60% of your total labor sales, with warranty and internal work making up the other 40%. Customer-pay work is where retention really matters. Those are the people choosing to come back.

Why does 72% matter? Because that’s the threshold where your service department becomes a sustainable profit center. Below that, you’re working too hard to replace lost customers. Above that, you’re building a loyal base that generates predictable revenue.

Think of it like a leaky bucket. If you’re losing 30% or 40% of your customers every year, you’re constantly filling the bucket just to maintain volume. Get to 72% retention and suddenly you’re building on a solid foundation.

Fixed Ops Marketing Strategy #1 – Get Your Timing Right

Stop carpet bombing your customers with service reminders every week.

Nobody wants that. It annoys people. They tune you out.

Instead, reach customers at the exact moment they’re ready for service. As industry expert Kurt Hankey puts it: “Get the right person at the right time and not overmarket.”

Here’s what that looks like in practice:

Use your data. You know when someone bought their car. You know what kind of car it is. You know the recommended service intervals. Do the math. If they’re due for an oil change in 3,000 miles and bought the car four months ago, reach out now.

Don’t guess. Calculate.

Track mileage patterns if you can. Some customers drive 2,000 miles a month. Others drive 500. Tailor your outreach to their actual usage.

Pay attention to seasonal trends. Service departments see shifting patterns throughout the year. Winter means tire changes and battery checks. Spring means AC service. Summer means road trip prep. Time your marketing to match what customers actually need right now.

The goal: one well-timed message beats ten random ones.

Hankey adds another important point: “If we can capitalize on that with our marketing mechanisms, then we can easily push that extra visit per year.” One extra visit per customer might not sound like much. But multiply that across your entire customer base. That’s huge revenue.

This is where tools like TradePending’s Value Watch come in handy. It keeps your dealership top of mind by automatically sending customers updates about their vehicle’s value over time. When they’re thinking about their car’s worth, they’re also thinking about maintaining it. Natural connection.

The key is being helpful, not annoying. Right message, right time, right person.

Fixed Ops Marketing Strategy #2 – Build Trust Through Transparency

You know what kills service retention faster than anything? Customers who don’t trust you.

They think you’re upselling. They think you’re overcharging. They think you’re making up problems their car doesn’t have.

Maybe you’re not doing any of those things. Doesn’t matter. If they think you are, they’re gone.

Fix this with transparency.

Show them everything. Video inspections are one of the most powerful tools dealerships have for building trust. Your technician finds worn brake pads? Take a 15-second video showing the customer exactly what you’re seeing. Text it to them.

Now it’s not just you saying they need brakes. They can see it with their own eyes.

This works because people trust what they can see. A video of their worn tire tread is more convincing than any sales pitch. It removes doubt. It proves you’re being honest.

TradePending’s video tools (from the Snapcell acquisition) make this easy. Service advisors can quickly record and send personalized videos to customers explaining recommendations. No complicated process. Just quick, clear communication.

Transparency also means clear pricing upfront. Customers want to see costs before they commit. Put your service pricing online. Yes, even if it’s higher than the quick lube. Explain why. Factory-trained technicians. Genuine parts. Warranty protection. Customers will pay more when they understand the value.

The Service Offers tool (from the Fixed Ops Digital acquisition) helps with this. They make it easy to publish transparent, competitive service pricing on your website. Customers can see what things cost before they call. That builds confidence.

Here’s a real example of transparency in action: Instead of just telling a customer their car needs $800 in repairs, show them the inspection video. Walk them through each item. Explain what happens if they wait. Give them options. Let them decide.

When customers feel informed rather than sold, they come back.

Combat the “dealers are expensive” perception by proving your value. Don’t hide from it. Address it head-on. “Yes, we cost more than the quick lube. Here’s why that matters.”

Most customers are willing to pay for quality. They just need to see it and understand it first.

Fixed Ops Marketing Strategy #3 – Make Loyalty Worth It

Free stuff works. But only if it’s meaningful.

Research shows that 81% of customers prefer brands that offer loyalty programs, and studies indicate that loyalty programs can increase retention rates by 5% to 10%.

So yes, you should have a loyalty program. But make it good.

Here’s what actually works:

First service free for new car buyers. This is huge. Someone just spent $40,000 on a car from you. Give them their first oil change for free. It gets them in the door. It starts the service relationship right. Use this as a value-added incentive, not a discount that trains customers to always expect lower prices.

Send them home from the sale with a card: “Your first oil change is on us. We’ll see you in 3,000 miles.”

Points-based systems that are simple. Complex loyalty programs fail because nobody understands them. Keep it simple. Spend $100, earn 10 points. 100 points = $10 off your next visit. Easy math. Instant gratification.

Referral bonuses that pay quickly. Word-of-mouth is powerful for service departments. Offer existing customers $50 or $100 for every new customer they refer. But here’s the key: pay it fast. Don’t make them wait 90 days. Give them the credit on their next visit. Make it feel immediate.

Service bundles that save money. Pre-sell service packages. Three oil changes for the price of two. Buy four tire rotations, get the fifth free. Customers love feeling like they got a deal, and you love predictable return visits.

What doesn’t work? Loyalty programs that require customers to remember passwords, log into portals, or track points on their own. Nobody does that. Make it automatic. Track it for them. Text them when they’ve earned rewards.

Another mistake: offering discounts as your only loyalty incentive. Discounts train customers to wait for sales. They erode margins. They don’t build real loyalty.

Value-added incentives work better. Free tire rotations for life if you buy tires from us. Complimentary multi-point inspections for loyalty members. Free car washes with every service. These feel like bonuses, not price cuts.

The goal is making customers feel appreciated without cheapening your service. When someone feels valued, they stick around.

Fixed Ops Marketing Strategy #4 – Use Digital Marketing That Actually Converts

Your customers live on their phones. Your marketing needs to meet them there.

Let’s start with text messages. Dealerships that use SMS marketing see strong results because texts get read. Email open rates are around 20%. Text open rates are over 90%.

Use texts for:

• Service appointment reminders
• Special offers
• “Your vehicle is ready” notifications
• Quick follow-ups after service

Keep messages short. Make them personal. “Hi Sarah, your Honda is due for service. Reply YES to book an appointment this week.”

That works. A paragraph-long text about your dealership’s history doesn’t.

Email still matters too. It remains one of the most effective retention tools when done right. The key is segmentation. Don’t send the same email to everyone.

Send different messages based on:

• When they last visited
• What type of vehicle they drive
• What services they typically need
• How long they’ve been a customer

Someone who just bought a car gets different emails than someone who hasn’t been in for two years.

Online scheduling is no longer optional. Google searches for “car repair” and “auto service” have grown by over 30%, and customers expect to book appointments online. If they have to call during business hours, some won’t bother.

Make booking easy. Put a scheduling button everywhere on your website. Let them pick their time, describe their issue, and confirm—all without talking to anyone. Yes, some customers still want to call. Let them. But give everyone options.

Your service offers need to be visible online. Don’t hide your pricing. Don’t make customers call for a quote on an oil change. Use tools like Fixed Ops Digital’s service management platform to publish clear, competitive offers on your website.

This also helps with local SEO. When someone searches “oil change near me,” your dealership can show up with actual pricing and online booking. That converts way better than just listing your phone number.

Automate your follow-up. Set up triggered emails or texts based on customer behavior:

• Bought a car 3 months ago? → First service reminder
• Haven’t been in for 6 months? → “We miss you” message with special offer
• Just had service? → Thank you text + request for review

Automation handles the repetitive work so your team can focus on personal interactions that actually need a human touch.

How to Win Back Lost Service Customers

They left. Now get them back.

Every dealership has a list of customers who used to come for service and stopped. Don’t ignore that list. Those people are easier to win back than you think.

Start by identifying who’s at risk before they fully leave. Look for customers who might defect by tracking patterns. Someone who came every 4 months but hasn’t been in for 8? They’re slipping away. Reach out now, not after they’re completely gone.

For customers who already left, try a direct win-back campaign.

Send them an honest email or text: “We noticed you haven’t been in for service in over a year. We miss you. Here’s 20% off your next visit to welcome you back.”

No games. No tricks. Just acknowledge they left and make it worth their while to return.

Find out why they left if you can. Did they have a bad experience? Was it price? Did they just forget about you? If you can identify the reason, you can fix it.

Someone had a bad interaction with a service advisor? Have your service manager call them personally. Apologize. Make it right. People appreciate when businesses own their mistakes.

Someone thinks you’re too expensive? Show them your value. Send them information about what’s included in your service. Factory training. Genuine parts. Warranty protection. Sometimes education changes minds.

Direct mail still works for win-backs. Physical mail stands out now because everyone’s inbox is crowded. Send a postcard with a compelling offer. “Come back and get your next oil change free. We want another chance.”

Pair your offer with a deadline. “This offer expires in 30 days.” Urgency drives action.

Track your win-back success rate. If 100 lapsed customers get your campaign and 15 come back, that’s 15% reactivation. That’s actually pretty good. Keep testing different offers and messages to improve that number.

Remember: a customer who left and came back can become one of your most loyal customers. You proved you care enough to pursue them. That matters.

Measuring What Actually Matters

If you’re not measuring retention, you’re not improving it.

Here’s what to track:

Retention rate by service category. Don’t just measure overall retention. Break it down. What’s your retention rate for oil changes? For major repairs? For tire service? Different categories need different strategies.

Customer lifetime value. How much does the average customer spend with your service department over three years? This number helps you understand how much you can invest in retention and still come out ahead.

Average visits per customer per year. Industry experts note that if you can push just one extra visit per customer annually, the revenue impact is massive. Track this number and set goals to increase it.

Time between visits. Are customers coming back every 4 months? Every 6 months? Every 12 months? Shorter intervals mean better retention and more revenue.

First-time customer return rate. This is critical. What percentage of customers who visit your service department for the first time come back for a second visit? If this number is low, you have a first-impression problem.

Dealerships should track retention KPIs by service advisor too. Some advisors naturally build better relationships. They retain customers at higher rates. Figure out what they’re doing right and train everyone else to do the same.

Set up a simple dashboard. You don’t need fancy software. A spreadsheet works. Update it monthly. Share it with your team. Make retention a visible priority.

When you measure something, people pay attention to it. When you don’t measure it, it gets ignored.

One extra visit per customer might not sound like much. But do the math. If you have 2,000 active service customers and you get one extra visit from each at an average ticket of $150, that’s $300,000 in additional revenue. For one extra visit.

That’s why measurement matters. Small improvements create big results.

Making It All Work Together

Service retention isn’t one thing. It’s everything working together.

You need the right timing. You need transparency. You need loyalty programs that actually mean something. You need digital marketing that reaches customers where they are. You need win-back campaigns for people who left. And you need to measure all of it.

Most dealerships do one or two of these things well. The dealerships hitting 72% retention do all of them.

Here’s the truth: your service department can be a profit machine. But only if customers keep coming back. One-time visits don’t build a business. Loyal, repeat customers do.

The strategies in this guide aren’t theoretical. They’re proven. Dealerships across North America are using these tactics to keep customers coming back and boost profitability, especially as fixed operations become more critical to overall dealership success.

Start with one area. Pick the biggest problem you have right now. Bad follow-up? Fix that first. Customers don’t trust you? Add video inspections. No loyalty program? Build one.

Don’t try to implement everything at once. That’s overwhelming and nothing gets done well. Focus. Improve one thing. Measure the results. Then move to the next.

The 72% retention benchmark is achievable. You just need a plan and the discipline to execute it.

Your service customers are worth thousands of dollars each over their lifetime. Stop letting them walk away.

Ready to boost your service retention? TradePending’s suite of tools, including Value Watch for customer retention, video solutions for transparent communication, and service offers management helps dealerships keep customers coming back. 

Our technology makes it easy to stay connected with customers and build the trust that drives long-term loyalty.