3 button or 4 button?
Either way... The first step would be to have someone with a MODIS scanner test all of the components. AAMCO offers a free tcase scan, but may say that they need it longer to look further into it and will want to charge you for labor. They tried that with me at my local shop. If you cant do that, you next step would be to troubleshoot the system one piece at the time. The nice thing about that is that there are very many steps. Even though your switch lights up, it can still be bad.(A common problem). After that would be the TCCM, transfer case control module. Its the piece under the dash, driverside left of the steering column, that clicks. Next would be your TCase motor. (Im replacing mine due to a similar issue). You also have your front axle actuator and the tcase encoder motor. Having your rear dif serviced shouldn't cause any issues. Do you have any service 4wd lights? Does your front axle actuator engage?