How Does Post-Sale VSC Marketing Work?

Every dealership knows that profit isn’t only from vehicle sales – it also comes from products offered by your F&I department. However, convincing a customer that they need F&I products during the vehicle purchase process can be difficult. According to NADA, 53% of buyers don’t buy a vehicle service contract from the dealership F&I department when purchasing a vehicle, and these are missed sales opportunities.

There are many reasons why a customer might not purchase a VSC. They may wait until the end of the factory warranty, or they are tired by the end of the F&I process and ready to leave. This is where post-sale VSC marketing facilitates a win-win situation for dealerships and vehicle owners alike.

What is Post-Sale Vehicle Service Contract Marketing?

Post-sale VSC marketing targets existing dealership customers after purchasing a vehicle. The objective is to educate your customers about the benefits of a VSC from your dealership and the protection from future repair costs. Post-sale VSCs provide coverage for mechanical issues that may arise after the manufacturer’s warranty expires.

Let’s say a customer just bought a reliable used car. Post-sale marketing ensures that the customer understands that any vehicle can experience unexpected breakdowns; a VSC is a much-needed financial cushion. A well-executed post-sale marketing strategy ensures buyers return to the dealership for their service needs, fostering repeat business.

How Do I Market VSC’s Post-Sale?

There are many steps to ensure that a post-sale VSC marketing program is effective and serves both the dealership and the customer. Typically, it’s a process that dealerships don’t handle internally – it’s easier to work with a partner. These partners handle data analytics and modeling, sales support, customer service, creative development, and marketing fulfillment.

  • Data-Driven Targeting

    A solid marketing partner leverages advanced data modeling to identify ideal VSC candidates within an existing customer base. This method of data management uses targeted marketing to those most likely to benefit from a VSC, maximizing return on investment. Typically, customers included in data filters didn’t buy a VSC at the time of their vehicle purchase, service department customers, and those with an expiring VSC. Dealerships should also consider using a partner that has SOC2 Type 2 data security to keep customer data and dealership data secure and as a way to stay compliant with Safeguards standards.

  • Customizable Marketing Materials

    Marketing and vehicles are similar – one-size-fits-all isn’t something that applies. Every customer responds to a different type of marketing. Working with an in-house team with years of experience developing custom marketing materials, such as direct mail, emails, and digital content tailored to your dealership is key. It’s a personalized approach that cultivates greater connections between your dealership and the customer.

  • Dedicated Sales Support

    A customer who’s interested in VSC coverage requires a different sales member than those who talk about a vehicle’s features. When one of these customers calls in, it should be a discovery sales call to find out what coverage and price the customer realistically needs and can afford. A dealership’s F&I office isn’t able to accept this many calls when they have a line of customers to learn about vehicle financing. A full-service marketing partner that has a licensed and specialized VSC sales team is an extension of your dealership. They should employ a customer-centric approach to understand individual needs and recommend the most viable VSC options.

  • Customer Contact and Follow-Up

    The partnered sales team should prioritize consumer satisfaction by working to finding a VSC based on driving habits and budget. If a purchase isn’t made immediately, ongoing communication is provided to address any lingering questions. Ultimately, customers can make informed decisions about their vehicle’s protection in confidence. Multiple contact points, including phone calls and follow-up emails, ensure no customer gets left behind.

  • Sealing the Deal

    When a customer purchases a VSC through the sales team of the partner, it’s a mutually beneficial transaction. The client gains protection against future repair costs and the dealership receives a profitable sale. Your marketing partner keeps a small portion of the proceeds to fund their work.

The Power of a Partnership

The above process sounds too good to be true – but APC provides this program and all associated services to dealerships for FREE.
APC created customized post-sale VSC marketing programs for automotive, powersports, and RV dealerships. These programs generate revenue, strengthen customer loyalty, and keep customers returning to service drives. Original equipment manufacturers also leverage our services to promote their VSCs, while agents benefit from marketing programs that support their client’s goals. Post-sale VSC marketing goes beyond simply generating sales. It’s about nurturing lasting customer relationships by demonstrating a commitment to their long-term automotive needs.

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