Service Drives Gen Z Loyalty
The dealership profit center plays an important role in customer retention, and generation Z customers are showing the highest loyalty rates, based on recent CDK Global data.

Ninety-two percent of gen Z respondents said they are likely to return to the same dealerships to purchase their next vehicles.
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Data recently compiled by CDK Global shows younger generations are becoming the most dependable returning customers for auto dealerships, especially when it comes to getting their vehicles serviced.
In its latest Service Shopper 5.0 study, CDK found that generation Z, or those born between 1997 and 2012, made up the highest percentage of customers who get their cars serviced at the same dealerships they bought them from, at 94%.
The data and technology provider said it typically takes time for customer loyalty to develop but that generation Z is displaying loyalty right off the bat. Still, it’s up to dealerships to retain that loyalty by meeting customers’ expectations.
Making it easy to set up an appointment is the first step. While 61% of survey respondents said they book appointments by phone, the majority of gen Z customers used the provider’s website to make an appointment. And the number of gen Z shoppers using service department chat agents grew 5% compared to last year.
According to the survey, customers also value a comfortable waiting area while their vehicles are being serviced. For same-day service, 54% of customers across all age groups said they prefer to wait at the dealership. Preferred waiting area amenities included a comfortable lounge, work areas, snacks and beverages, and a restaurant or bar close by.
In terms of turnaround times, 51% of gen Z customers said their service was faster than they anticipated, only 1% saying it took longer than expected.
CDK said that rather than having unrealistic expectations about service times, gen Z expects honest and clear time estimates because transparency builds their trust.
And trust leads to repeat business. Ninety-two percent of gen Z respondents said that they are likely to return to the same dealerships to purchase their next vehicles.
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