How Does Post-Sale VSC Marketing Work?
Every dealership knows that profit isn’t just generated from vehicle sales – it also comes from the 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 want to wait until the end of the factory warranty, or they may just be tired by the end of the F&I process and ready to leave. This is where post-sale VSC marketing swoops in to facilitate a win-win situation for dealerships and vehicle owners alike.
What is Post-Sale Vehicle Service Contract Marketing?
Post-sale VSC marketing uses a targeted approach to reach out to existing dealership customers after they’ve purchased a vehicle. The objective is to educate your customers about the benefits of a VSC from your dealership and how these contracts can protect them 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 can ensure that the customer understands that even the most dependable vehicles 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 all their service needs, fostering long-term relationships and repeat business.
How Do I Market VSC’s Post-Sale?
There are many steps to ensure that a post-sale vehicle service contract marketing program is effective and serves both the dealership and the customer who will end up using the VSC. Typically, it’s a process that most dealerships don’t handle internally – it makes more sense to work with a partner who can fulfill every part of a process, including data analytics and modeling, sales support, customer service, creative development, and marketing fulfillment.
- Data-Driven Targeting
A solid marketing partner will leverage advanced data modeling to identify ideal VSC candidates within a dealership’s existing customer base. This method of data management ensures marketing efforts reach those most likely to benefit from a VSC, maximizing return on investment. Typically, customers included in these data filters are ones who didn’t buy a VSC at the time of their vehicle purchase, service department customers, and those who have 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 that has many years of experience developing customized marketing materials, including direct mail pieces, emails, and digital content tailored to your dealership’s brand identity 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, such as APC, has a licensed and specialized VSC sales team, an extension of your dealership that employs 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 always prioritize consumer satisfaction by working toward finding the perfect VSC fit based on driving habits and budget. If a purchase isn’t made immediately, the team provides ongoing communication to keep the conversation open and 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 chooses to purchase a VSC through the sales team of the marketing partner, it’s a mutually beneficial transaction. The client gains much-needed protection against future repair costs and the dealership receives a profitable sale. Your marketing partner will keep 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 dealership for FREE.
APC created customized post-sale VSC marketing programs for automotive, powersports, and RV dealerships to help generate revenue, strengthen customer loyalty, and keep customers returning to dealership service drives. Original equipment manufacturers (OEM) also leverage our services to promote their own vehicle service contracts, while agents and agencies benefit from extensive 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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