A recent NADA survey yielded some staggering results. Of all car buyers nationally, only 23 percent service their vehicle at their selling dealer. Of the clients who return to the dealership for regular maintenance, 83 percent will purchase another vehicle from that store. That number on its own is enough to spur higher service retention rates.
A useful tool to keep clients returning to their selling brand’s service department has been OEM prepaid maintenance (PPM) plans. Once a niche item by brands like Volvo and BMW, most manufacturers are jumping on the bandwagon. It is possible to drive traffic directly back to your door by offering a dealer-branded PPM.
Some clients choose to purchase a used vehicle. Thus an OEM PPM does not apply. If the F&I menu offers a dealer-branded PPM at the time of sale, service retention rates could skyrocket from 23 percent to over 80 percent.
There’s more to a dealer-branded PPM, however. You can sell this product after the initial purchase, and even for new and existing service clientele. Equip service advisors with the tools to sell a PPM in the service drive, virtually ensuring that you have a retained customer for future services and, ultimately, another vehicle sale.
There’s an idea that PPM and F&I-style products should be left to the F&I office. That leaves unlimited potential business on the table, both in lost service sales and in future repeat car sales. Offering a dealer-branded PPM in the service drive is inherently beneficial. Here’s why: