Service absorption is percent of dealer operating cost covered by service profits

100% service absorption is rare; experts cite 40% in Canada

Laser-like focus needed on service dept to achieve high rate

100% service absorption crucial to dealers as new-car sales fall

Little features count, like cafe for waiting customers

Use CR software for targeted promo campaigns, marketing

Sell F&I products that drive owners to dealer

Improve service retention rates; get competitive w/ independents

"Service absorption hasn't been talked about in a long time, but it's become a reenergized topic. Dealers are rethinking it." -- Steve Nickelsen, trainer, Steve Nickelsen Group

"How many dealers today know their service retention rates? Not many. Because in the past, they really didn't need to know. And if you link retention to loyalty and loyalty to profits, how do you get them to come back?" -- Nickelsen

"Retention is so important because it costs less to retain a customer than to get a new one. Focus on the process and the customer experience." -- Nickelsen