3 Factors To Increasing the Success of Prepaid Maintenance Programs
Every once in a while, it is necessary to change things up in order to grow the revenue of an automotive dealership’s services. When dated methods stop working well, it is wise to adapt to new techniques that have successfully increased the sales and revenue of prepaid maintenance programs.
One way to do this is by switching from complimentary prepaid maintenance programs and selling extended service plans instead.
The use of complimentary factory scheduled maintenance began to make complimentary plans go null so by changing plans to enhance the maintenance packages around the specific factory, it enhanced the maintenance programs that were offered.
By doing this, the customer perceives the Prepaid Maintenance Program to be of a higher value; customers are in fact seeing this and are coming back and spending three times as much money on maintenance programs than they were when the plans were complimentary.
3 Factors of Automotive Prepaid Maintenance Programs
There are three major factors that have contributed to the rising success in selling Automotive Prepaid Maintenance Programs instead of giving them away as complimentary services.
- The first factor is that the customer perceives the value to be higher.
- The second is that more than 50% of the PPMs are sold directly by service advisors.
- Thirdly, they offer additional bonuses in the form of a dealership gift card which gives customers the perception that they are getting additional discounts.
Keys to a Successful Prepaid Maintenance Program
The key to the success of Prepaid Maintenance Programs is the retention rate. Selling packages alone does not make a huge profit; the profit comes in keeping happy customers coming back and referring them to people. The goal is to keep prices low and keep customers happy and coming back.