If you’re an agent working with automotive dealerships, you already know that ensuring customer satisfaction and retention while boosting revenue is a challenge that dealership principals face on a daily basis. You can assist your dealership partners in achieving these goals by enrolling them in a Post-Sale Vehicle Service Contract (VSC) Marketing Program.
This kind of program aims to promote and offer extended VSC plans, maintenance packages, or additional services to vehicle buyers after the factory warranty has expired. Marketing consumers in this way typically educates them about the benefits of extended coverage, enhances their overall vehicle ownership experience, and generates additional revenue for the dealership, as well as your agency!
Why Use a Post-Sale Vehicle Service Contract Marketing Program?
A Post-Sale VSC Marketing Program addresses the gap between a consumer who skips buying a VSC during a vehicle purchase and those who may consider purchasing one later in their vehicle ownership lifecycle. It gives the dealership multiple touchpoints with customers and results in higher customer satisfaction and retention. Statistically speaking, 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 coverage products to their customers run the risk of losing those customers to third-party marketing agencies that often aggressively target dealership customers. These companies may pose as the dealership or vehicle manufacturer, which causes confusion among potential VSC buyers. The “products” they sell also lead to dissatisfaction when claims are denied and can affect a dealerships’ Customer Satisfaction Index (CSI) score.
Many dealerships also try to market VSC’s themselves, but often 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 new cars. This is where a reputable post-sale VSC marketing program comes into play.
What are the Benefits for Dealerships?
A Post-Sale VSC Marketing Program provides a multitude of business 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 and maintenance 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 more 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 more 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.
A reputable VSC program also offer substantial returns without burdening the dealership financially. It means the business can enjoy the benefits of increased revenue, customer loyalty, and additional sales without incurring significant upfront costs. All these benefits make it a valuable program for agents to pitch to their dealership partners to enhance performance and profitability.
How Does a Post-Sale Vehicle Service Contract Marketing Program Benefit Agents?
This kind of marketing program 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. The program opens doors to attracting existing and new clients for ongoing business opportunities.
- Bringing your dealership partners a VSC marketing program 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.
- In addition to economic benefits, 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.
Providing Your Dealers with the Right Kind of Program
Partnering with the right company to power a Post-Sale VSC Marketing Program is important. Here at Automotive Product Consultants, our team works with agents to create customized VSC marketing programs that are designed to capture missed service contract sale opportunities for their dealerships.
We build and power customized marketing programs for our clients – using the dealers’ name, brand, logo, and signature to drive customers back to the store through print marketing, digital marketing, and more. We utilize intelligent, data-driven marketing systems to maximize results.
These programs are offered at no-cost to all dealerships and educate their customers about the benefits of buying additional coverage from your dealership.
We encourage dealers and agents to contact us to learn how Automotive Product Consultants can power a post-sale vehicle service contract marketing program that will drive sales and revenue for your dealership. Reach out to us today for a free program demo.