Prepaid and Comp Maintenance Plans a Great Way to Reach Next-Gen Customers

GenY

How valu­able re pre­paid and com­pli­men­tary main­te­nance plans for deal­ers? There are a lot more on the mar­ket now, com­ing directly from OEMs and third-party ven­dors. So what do cus­tomers think about it? Well, it depends on who you ask.

Next-generation cus­tomers (under 35) are more likely to have a plan (31%) than those over 35 (18%) mak­ing these plans a pow­er­ful option for build­ing cus­tomer loy­alty with this gen­er­a­tion, accord­ing to a DMEau­to­mo­tive study. About 25% of US vehi­cle own­ers have an OEM pre­paid or free ser­vice plan. About 35% of these cus­tomers don’t use the plan at all, and while 65% use plans for sched­uled main­te­nance, only 25% use it for “some” and nine per­cent have not used it at all. These plans are dri­ving long-term reten­tion as 56% of con­sumers with a plan report they are likely to con­tinue ser­vic­ing their vehi­cle at their deal­er­ship after the plan’s expi­ra­tion. It’s a great way to reach these young cus­tomers and retain their loy­alty. Almost twice as many con­sumers who use these plans for all main­te­nance (ver­sus some main­te­nance) report they’re “very likely” to con­tinue ser­vic­ing their vehi­cle with that dealer once the main­te­nance plan ends.

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