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Fixed Ops Leadership
Nov 27, 2025
2 min read

The Essential Guide to Revitalizing Fixed Ops Teams for Maximum Performance

Service manager in a dealership meeting with technicians.
Picture this: You're a service manager at a bustling dealership, juggling the demands of daily operations with the pressure to enhance profitability, retain skilled technicians, and maintain high customer satisfaction. It's a delicate balance that can often feel like a tightrope walk. In today's competitive automotive service landscape, the challenges are mounting. Service retention is declining, with dealerships losing 12% of service visits to independents since 2018. Meanwhile, the retention rate among 0–2-year owners has fallen to a mere 54% in 2025, down from 72% just two years ago. These statistics are more than just numbers—they're a wake-up call for service leaders who must adapt quickly to changing consumer expectations and technological advancements. But how can you, as a service manager, revitalize your team to meet these challenges head-on? The answer lies in effective leadership and strategic innovation. This comprehensive guide will equip you with the insights and tools needed to transform your service department into a high-performing unit. From understanding the current industry landscape to implementing cutting-edge solutions like AI-enabled service tools, we'll explore every facet of fixed ops leadership. You'll discover practical steps to reduce appointment lead times, enhance first-time fix rates, and improve customer loyalty without relying on discounts. By the end of this journey, you'll have a clear roadmap to not only meet but exceed the demands of today's service environment, ensuring your department remains a cornerstone of dealership success.

Understanding the Challenge

Graph of declining service retention rates.

In a rapidly evolving automotive service industry, service managers are grappling with multiple challenges, from declining customer loyalty to increased competition from independent shops. The pressure is mounting to not only retain existing customers but also attract new ones, particularly the elusive 0–2-year owners.

One of the biggest hurdles is the erosion of service retention. Industry reports indicate dealerships have lost 12% of service visits to independents since 2018. For the 0–2-year owner segment, retention rates have plummeted to 54% in 2025. This trend highlights the urgent need for service managers to rethink their retention strategies and innovate beyond traditional discount offerings.

Another significant issue is the capacity and experience gap within service departments. Long appointment wait times, communication shortfalls, and first-time-fix rate (FRFT) issues are prevalent. According to J.D. Power, 12% of repairs are not fixed correctly on the first visit, with parts unavailability cited as the leading factor.

The technician pipeline is also under strain. Despite modest workforce growth, there remains a significant multi-year demand for new entrants. This shortage exacerbates existing capacity issues and complicates efforts to improve service efficiency and customer satisfaction.

Understanding these challenges is the first step in crafting a robust strategy for fixed ops leadership. By addressing these pain points head-on, service managers can begin to pave the way for a more efficient, customer-centric operation.

Related Topics

service department management skillsfixed operations director best practicesdealership service leadershipservice retentionfixed absorption

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