Is Your Maintenance Program Working as a Customer Retention Program?
How To Create A Maintenance Program To Keep Customer Loyalty
How does prepaid maintenance work to retain customers and grow automotive dealership businesses organically? Read on to how find out more about how customer-centric dealership plans can be a win-win for your business and your customers.
Auto dealers sometimes believe that it makes no difference whether the customer or the dealer pays for oil changes. Smart dealers know that prepaid maintenance works for a reason.
Attempts to sell automotive prepaid maintenance programs through the service or finance department are sometimes called a “customer retention plan.”
Selling automotive prepaid maintenance programs to new car buyers is a smart idea because about 60% of customers return to the dealership each month for maintenance. The idea behind an automotive prepaid maintenance program is to make money up front, before the services are performed. The plan increases customer retention by providing a discount on the services up front and providing the necessary maintenance for the vehicle.
Making a Difference with Automotive Prepaid Maintenance
In the prepaid maintenance model, the dealership provides routine to each customer who purchases a vehicle on a set plan. This works as a customer retention strategy for two reasons:
- A prepaid maintenance plan is a fully customizable program from the dealer to the customer and a way for the dealership to thank the customer for his or her purchase with a flexible program. Customers are more likely to return when they know their business is appreciated, especially in this competitive market and economy.
- 100% of customers who purchase vehicles from the dealer have the option to participate in a Prepaid Maintenance Plan. This provides an incentive for the customer to return to the dealership and allows the dealer to measure the true customer retention rate, rather than basing any conclusions on possible return each month to the service department.
The Prepaid Maintenance Model works by giving the dealership a strategy for attracting the customer back before he or she even drives off the lot, rather than relying them to possibly return for maintenance, they already have the next month’s plan ready to go. It’s a full self-service solution that works in evolution of the next step for the customer.
Contact Auto Awards to Discuss Prepaid Maintenance Programs
Contact Auto Awards to talk about how to get your auto dealership started with a prepaid auto maintenance program.
Since our founding in 1991, AutoAwards has been widely recognized as the industry-leader in automotive and marine loyalty marketing, earning longstanding relationships with many of the industry’s most successful dealer groups and OEMs. AutoAwards understands the #1 predictive factor for dealer growth and profitability. Customer loyalty is the most successful way to build revenue. AutoAwards has always recognized the need for top notch, highly creative, effective loyalty strategies in large and small businesses alike. Contact us online to talk about dealer loyalty or call 302-696-6000.