Don’t let customers’ warranties expire.




Your customer has gleefully driven off the lot in their new car after signing on the dotted line. What follows is often considered to be somewhat of a honeymoon period. The owner of a brand-new car is persuaded to come directly to your dealership for maintenance and repairs, regardless of whether they are lucky enough to have manufacturer-paid maintenance or are protected by a factory warranty.

 

However, the customer’s warranty must expire, just like other excellent things. After 10 years or 100,000 miles (or even sooner if we’re talking about factory-paid maintenance), that dependable, money-generating partnership abruptly reaches a slight snag. Why? The owner of the car’s insurance has run out, and suddenly every dent in their car is also a dent in their wallet. Greetings, sticker shock!

 

The equation for customer churn

 

Your dealership must encourage continued loyalty in order to avoid losing out to the auto repair chain down the road when your customer is at the proverbial fork in the road. The good news is that consumer loyalty is increasing across the board in the industry. But it’s up to you to hit a home run with that swing.

 

Motivating Client Retention

What is your process, then? How can you make the most of what might be a crucial opportunity to stop your clients from choosing your rivals instead of you? We’ve compiled our top four suggestions for retaining clients and keeping them content.

 

Earlier than the Expiration Date

Consider these suggestions as your foundation, laying the groundwork for the time when your customer must choose between you and another vendor when your offer is about to expire. Because in practice, it shouldn’t depend on a single interaction. Every consumer that visits your dealership needs to have a loyal (and enduring) relationship established with you.

 

Educate the Public

 

Consider sticker shock to be bad. Imagine the surprise a customer would feel when presented with a bill for a sizable sum of money AND they have no idea what went into the upkeep of their vehicle. It will only end in tragedy.

 

Building loyalty and trust with your clients is easiest (and most economical) when you keep them informed. When you can establish yourself as the go-to person for all things repair and maintenance, from oil changes to tires to whatever check engine problems your customer might have while traveling, you become the expert in both your area and on your customer’s vehicle.

 

Pro tip: Start educating your customers before they experience a problem with their automobile or warranty. Make sure customers have a thorough grasp of their vehicle and warranty, including what it covers, what it doesn’t, and how long it lasts, before they even leave the lot.

 

Reputation is Important

 

While reputation might mean different things to different people, chances are that you don’t want a terrible one unless you consider yourself a Joan Jett mimic. In addition, factory-paid warranties and/or maintenance give you the chance to establish a solid reputation before a customer must choose between your dealership and another service provider.

 

Don’t let that chance pass you by. Prove what a good servant you are. Give the client experience top priority. In other words, make sure your buyer never even thinks about choosing another choice. You are THAT good, after all.

 

Following the Expiration Date

Your customer has started looking around for the best deals as the deal is about to expire. They only ask one thing when they come to you: How are you better than the store down the street?

 

Uncertain of what to say? We have your back.

 

Explain the Distinction

 

As a dealership, you must deal with a regrettable but real reality. Many of your clients are just unaware of how you are different from other repair shops. While you might have made some progress in establishing your reputation before the expiration date, you’ll need to demonstrate how and why you are superior to your rivals if you want to prevail in the loyalty battle. Whether that be through your past customer interactions, your service knowledge, or both.

 

Fortunately for you, you have the credentials to support your assertions. All that’s left to do is explain it to your audience.

 

Want to put more distance between yourself and your rivals? Adding renewable value-added benefits to your clients’ regularly scheduled maintenance through a partnership with a service like SimpSocial enhances your already exceptional offerings.

 

Add the letter I to the incentive

 

What works best to keep people coming back to your business? Encourage them. Who doesn’t enjoy a free bonus or a special offer, after all?

 

When it comes to your consumers, there are a number of different ways to think about incentives, but we’ll focus on the two that are most frequently used:

 

Programs that reward or foster loyalty: These kinds of programs do just that. Although it applies to many different businesses, the automotive sector has a particularly strong hold on the idea. These programs are frequently utilized to promote client retention, whether it be a point system that results in high-ticket prizes or a free gift with purchase.

Value-Adds: The idea that customers are prepared to pay more for superior experiences is one that is widely acknowledged in business. How can you improve their experience, then? by adding greater worth. Why go somewhere else to get your oil changed when you can get it done at the dealership and get additional benefits? By providing consumers with a distinctive package of renewable benefits like premium roadside assistance, road hazard tire protection, and emergency alternate transportation, incentive programs like SimpSocial help dealerships increase their value.

 

Service and maintenance divisions generate over 50% of dealership revenues.

The end of the factory-paid warranty or maintenance doesn’t necessarily mean that your customer relationship should end as well. Your bottom line won’t encounter any obstacles if you can turn this opportunity into ongoing revenue prospects.






No leads were lost. reduced overhead.
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