If you’re an agent working with automotive dealerships, you know that ensuring customer satisfaction and retention while boosting revenue is a challenge that dealership principals face regularly. You can assist your dealership partners in achieving these goals by enrolling them in a Post-Sale VSC Marketing Program, or Vehicle Service Contract Marketing Program.

This kind of program promotes VSC plans, maintenance packages, or additional services to vehicle buyers after the factory warranty has expired. Marketing consumers educates them about the benefits of extended coverage, enhances their vehicle ownership experience, and generates additional revenue for the dealership, as well as your agency!

Why Use Post-Sale Vehicle Service Contract Marketing?

Post-Sale VSC Marketing addresses the gap between a consumer who skips buying a VSC during a vehicle purchase and those who consider purchasing one later in their vehicle lifecycle. It gives the dealership multiple customer touchpoints and results in higher customer satisfaction and retention. Approximately 55%– 65% of customers don’t purchase a service contract during their initial vehicle purchase from the F&I department.

Dealerships who don’t market VSCs to customers run the risk of losing those customers to third-party marketing agencies that aggressively target dealership customers. These companies may pose as the dealership or vehicle manufacturer, causing confusion among potential VSC buyers. The “products” they sell also lead to dissatisfaction when claims are denied and can affect a Customer Satisfaction Index (CSI) score.

Many dealerships try to market VSC’s themselves but lack the internal manpower and resources to run such a program. Many times, it falls by the wayside and isn’t a priority when there are customers in the dealership ready to buy cars.  This is where a reputable post-sale VSC marketing program comes into play.

What are the Benefits for Dealerships?

Post-Sale VSC Marketing provides many benefits to dealerships, capturing service contract sales that were previously missed. These programs also:

• Add Additional Reserves to Reinsurance Positions: Dealer principals can enhance their financial stability and bolster reinsurance positions.
• Build Customer Loyalty and Drive Organic Traffic: This marketing program encourages customers to return to the dealership for service covered by their VSCs. This repeated interaction builds trust and increases opportunities for further sales and service revenue.
• Increase Fixed Parts and Service Revenue: Customers with VSCs are likely to choose a reputable dealership for repairs and maintenance. This income contributes to the dealership’s financial sustainability.
• Sell More Vehicles: Consumers who don’t want a VSC may be interested in a new vehicle instead. Additionally, customers who have a VSC are likely to buy their next vehicle from the dealership they receive service from. This boosts both New and Used Vehicle profits while enhancing the inventory of quality trade-ins for the Pre-Owned lot.

How Does Post-Sale Vehicle Service Contract Marketing Benefit Agents?

This kind of marketing offers agents many benefits. It’s a tool to bring to your dealership partners, and can strengthening existing relationships, attract new clients, and enhance overall dealership loyalty.

• VSC marketing is a tool that generates revenue without needing additional vehicle inventory
• 35% of customers defect from the dealership service department when coverage ends – an agent who helps dealerships recapture those customers is a lifetime partner
• These programs aid dealerships in combating robo-callers and returns customers to the dealership, rather than a third-party company without an investment in customer satisfaction
• The growth of customer loyalty and retention – two factors that are extremely important in the overall success of a dealership
• These benefits build loyalty to YOU as the agent who is working to increase dealership profitability in all departments
• It opens the door to working with new dealerships through referrals and connections

Bringing a New Value Add to Your Dealers