Getting the Most Out of an Extended Vehicle Service Protection
Offering your customers an extended vehicle protection package is an excellent strategy for low-term growth and customer retention. Buyers want to know they’re protected if something should go wrong with their new or used vehicle prematurely. Extended vehicle service protection provides this sense of security. Keep reading to learn more about how offering vehicle service contracts to your customers are beneficial for dealerships too.
Retention and Loyalty
Auto service contracts allow dealerships to retain customers and improve customer loyalty. Unfortunately, in today’s crowded market, that’s not what’s happening. Buyers go where the deals are and where they feel taken care of, during and after the sale. Service contracts retain customer loyalty because your customers know you have a product available at a reasonable price that will never leave them stranded. Great aftermarket service contracts provide 24-hour roadside assistance and towing. These perks matter as much as the low-cost repair and replacement benefits that are part of the service contracts.
Fewer Goodwill Repairs
These are out-of-pocket repairs that dealerships make on pre-owned vehicles for fostering a long-term relationship with customers. The problem with goodwill repairs is that the dealership is on the hook for the parts and the labor. Yes, your customer is happy, but if you make too many goodwill repairs, how satisfied are you? Could too many goodwill repairs be costing you more money?
Dealerships that offer extended vehicle service protection benefit because they can recoup expenses from any repairs made to the vehicle after the sale. When a vehicle comes with a service contract, you still foster long-term customer relationships without the drawback of losing money on the sale because of a goodwill repair.
Increased Customer Referrals
The majority of your dealership’s business is based on referrals. If a customer feels taken care of, they will spread the word and tell their friends and family. Auto service contracts are one of the best ways to improve customer satisfaction and increase referrals. When a customer doesn’t have to spend their hard-earned money on an expensive car repair because their purchase came with an extended service contract, that improves customer satisfaction. Offering your customers affordable auto protection protects them from unexpected repair and maintenance costs. Also, customers tend to be happier with the coverage they receive directly from their dealer than from third-party auto contract providers.
Lastly, if a customer needs car repairs, they don’t have to drive all over town looking for a shop that’s going to fix the problem right. As the go-to extended vehicle protection center, your customer comes to you. Any repair or maintenance work is done at the dealership, and your customer doesn’t have to spend their time trying to find someone who’ll honor the service contract. Customers like convenience. Don't make them search for a shop when you can offer them in-house services.
Dealers, are you interested in speaking with extended vehicle protection providers? Contact Freedom Warranty LLC, to learn more about the auto service contracts available and give your customers a reason to keep buying cars from you year after year.