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Why Post-Sales Marketing Is Important-Fixed Operations

Models that sell vehicles alone are not enough to drive dealer growth and profits.

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The car sales industry is constantly changing and evolving. It adjusts and reinvents itself from the need to meet new normal standards. Automakers continue to increase incentive pressures to drive sales, but these often further minimize dealer margins. The purchase of digital vehicles on websites (Autotrader,, Carvana, etc.) has increased transparency and caused a price war. As a result, the average number of retailers per unit profit has dropped significantly in today’s market.

Models that sell vehicles alone are not enough to drive dealer growth and profits.

Models that sell vehicles alone are not enough to drive dealer growth and profits. The effort required to sell more vehicles to move the needles will be a considerable task. Dealers rely on F & I products to successfully offset the pressure on profit margins. They also rely on their parts and service drives to generate supplementary income. Still, there is still a need to increase profitability. What do dealers look like to go beyond the status quo and grow profits and complement existing revenue streams?

Five Reasons Why Post-Sales Service Contract Marketing Is Important for Dealers

  1. The turmoil has affected traditional dealer profit models, and vehicle sales are no longer sufficient.
  2. F & I products offset marginal pressure and drive business to the parts and services sector, but dealers need to go beyond their current efforts to increase profits in order to succeed.
  3. The revenue of third-party marketers selling inferior vehicle service contracts to their customers is lost. Fight weekly letters and their annoying Robocalls that your customers are plagued with and get this income instead.
  4. Effective post-sales marketing partners provide tools for selling post-sales vehicle service contracts, providing additional customer loyalty and incremental F & I revenue that are not currently available.
  5. Save thousands of dollars in advertising and marketing to increase your dealer’s brand awareness with a zero-risk, free program. The ideal program is to sell the highest quality products you can trust to your retailer and incorporate the retailer’s name, brand, logo, color, and signature.

Increase revenue and customer loyalty and drive traffic to dealers

The average duration of a vehicle loan is longer than ever. This has led more consumers to worry about mechanical repair protection after the basic factory warranty has expired. This is driving this growing consumer base to buy coverage after sale. We know that for consumers, especially our customers, having a good and sound vehicle service contract can help provide peace of mind, knowing that future unexpected vehicle repair costs will be covered. .. Today, vehicle components are more complex and expensive to repair in the event of a mechanical failure. Consumers want to know that they are well protected before and after the original warranty expires. By providing these repairs through their parts and service departments, dealers can cover their customers with the highest quality A-rated service contract products, maintain loyalty and ensure a good customer experience. I will. Achieving the entire customer experience is an integral part of providing outstanding customer service and fully monetizing your dealership.

Inferior sales contracts sold by third-party marketers appear to be approved by the dealer, even if they are not. Often, these do not represent a top-notch A-rated vehicle service contract, but customers who purchase these products come to you for service and expect full coverage. Unfortunately, what these defenseless consumers have found is that repairs are often uncovered and the impression that the customer experience is poor is long-lasting. Unfortunately, this can be reflected in dealers with negative images, inadequate reviews, and loss of customers.

The good news is that you can provide excellent customer service and avoid third-party vendor traps by providing your customers with A-rated products of the same quality that you recommend and sell when you buy your vehicle. Products that are covered by your parts and service drives and can be reassured that your customers are well cared for are the ones that return the most income to your dealer. Products that customers value and trust also lay the foundation for a great customer experience and lasting relationships., And repeat the business.

Make your marketing important

You are a trusted car advisor for your customers. Many knowledgeable customers buy a vehicle service contract after sale and need to win the business. These customers are already well protected and should be given the opportunity to instruct Robo callers to be on the “phone ban list”. Adding revenue from vehicle service contracts after sales can be a trigger to help grow your business and customer relationships.

Some dealers tried marketing service contracts to their customers themselves, but found that the small sales they earned weren’t worth the cost or effort. Be sure to look for a reputable company with a turnkey program and an intelligent marketing engine that goes far beyond the average CRM-driven campaign. At strategic moments throughout the vehicle’s life cycle, a program that carefully targets customers will give the best results. You also need to make sure that you have full data security and compliance protection. Remember that this is your program, your brand, and your signature. And while the digital audience is growing, post-sales marketing results are still heavily dependent on good old fashion emails. Therefore, you need a multi-channel marketing campaign that uses both digital and traditional engagement methods.

David Diem is a partner in the APC Integrated Services Group. Why Post-Sales Marketing Is Important-Fixed Operations

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