Why the Best VSC Sale Happens 36 Months After a Purchase
The long-term revenue of OEMs relies upon the post-sale journey of their customers. From F&I products to service drive visits and even new vehicles, OEMs focus on keeping customers coming back from the long haul. One way to do that successfully is to market vehicle service contracts to customers who are nearing their warranty expiration.
One of the most effective times to market a customer who has already completed a vehicle purchase is 36 months after the purchase has been completed. At this time, the customer’s perception, the quality of the vehicle, and other factors all come together in a meaningful way that opens the door to the possibility of selling a vehicle service contract to those customers.
A Natural Shift in Customer Mindset
Customers are bombarded with decisions when they decide to purchase a vehicle. They must think about the style of vehicle they want, how much they can afford, and what financing options are available. It is a lot for anyone to process, and most customers don’t want to consider extra F&I products like a VSC during their initial purchase.
However, after 3 years have passed, the mindset of the average customer begins to change dramatically. This is when the factory warranty on most vehicles’ lapses, and many consumers begin to think about the potential risks associated with not having protection on their vehicle. That is the time to get your foot in the door with a customer and explain the benefits of purchasing a VSC. They will have shifted from a high level of confidence about the protection that their vehicle has to an understandably high level of caution.
Ownership Experience Builds Confidence
When customers reach the 3-year mark of ownership of their vehicle, they understand how the vehicle operates and what types of maintenance is necessary to get the most value out of it. Customers are emotionally invested and want to protect their investment, another reason why it’s an appropriate time to start marketing vehicle service contracts.
It is also a great time to base the conversation around real ownership data. This is to say that the conversation can move away from hypothetical scenarios and more into the realities of vehicle ownership as that owner has already begun to experience them.
The Power of Data-Driven Personalization
The 36-month mark may also provide data about how the vehicle is being used by the owner. Different types of drivers use their vehicles in different ways, and it is essential to remember that there will be different expectations as a result. A few examples are:
- High-mileage drivers may care the most about how wear and tear will impact their driving experience
- Customers who get frequent service visits are likely to care about keeping the cost of those visits predictable
- Owners of vehicles with a lot of on-board technologies will probably want protection over the value of those technologies
Personalizing the marketing for each client based on those wants and needs can drive success.
Strengthening Dealer Engagement and Loyalty
This is also a chance for an OEM to continue to build upon the loyalty that a customer has to them. The process of reaching out at the 36-month interval and checking up on customers during that time is a great way to invest in a long-term customer relationship.
Looking Ahead
The automotive industry continues to evolve, and it is essential to bear this in mind when thinking about how to most effectively sell VSCs to customers. If you want to give yourself the best possible opportunity to bring in as much revenue as possible from VSCs, then it is best to be mindful of the 36-month window and take advantage of it.
Contact Us Today
"*" indicates required fields
Best Practices for Marketing F&I Products
Customer Loyalty, Dealership, Direct Mail, Marketing, Parts and Service, Sales, Service DriveFinance & Insurance (F&I) products are a critical profit center for automotive dealerships, yet they are often overlooked, or poorly marketed. However, CDK Global notes that during volatile times in the automotive industry as a whole, finance and insurance (F&I) products can be a major driver of revenue…