Dealer Prepaid Maintenance Programs Taking Off with Customers

  • Deal­er-brand­ed pre­paid main­te­nance (PPM) pro­grams can real­ly take off with cus­tomers — 96% of the 8,000 cus­tomers going to Anci­ra Win­ton Chevro­let in San Anto­nio, Texas, cur­rent­ly have a PPM plan. The deal­er enjoys $80 in addi­tion­al up-sell per repair order for cus­tomers using its plan.
  • The plan has gen­er­at­ed an addi­tion­al $635K in ser­vice up-sell rev­enue dur­ing pro­gram ser­vice vis­its, and have boost­ed ser­vice cus­tomer reten­tion to 50%, said the dealership’s Parts and Ser­vice Direc­tor Jim McAfee.
  • PPM pro­grams are boost­ing ser­vice rev­enue by 15% and cus­tomer reten­tion to 60% and even high­er for some deal­ers. These find­ings and oth­er auto deal­er reports are fea­tured in a new down­load­able white paper from Per­for­mance Loy­al­ty Group called How Deal­er-Cen­tric Pre­paid Main­te­nance Pro­grams Sig­nif­i­cant­ly Increase Auto­mo­tive Cus­tomer Reten­tion.
  • Study also fea­tures addi­tion­al third-par­ty sta­tis­tics about pow­er of PPM pro­grams to brand deal­er­ship first, while sup­port­ing OEM reten­tion as well.
  • New white paper details why deal­ers are attract­ed to pre­paid main­te­nance pro­grams now more than ever:
  1. These types of plans brand deal­er­ship. OEM pro­grams brand the OEM. Most deal­ers con­sid­er brand­ing their deal­er­ship far more impor­tant in their local mar­ket.
  2. This type of pro­gram is fund­ed 100% by the cus­tomer so there is no invest­ment on the dealer’s behalf.
  3. They are afford­able. Cus­tomers rec­og­nize their val­ue, and will pur­chase with a high­er fre­quen­cy.
  4. 90% or more of cus­tomers pur­chas­ing pre­paid main­te­nance plans redeem more than 80% of the plan ele­ments.
  5. Plans are self-man­aged through the DMS and admin­is­tered by the deal­er­ship, thus all prof­it, reserve and for­fei­ture monies are retained and rec­og­nized by the store.
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