1. Inflatable Gorillas and
Free Food TrucksâŠ
A New Approach to
Value-added Marketing
for your Dealership
NATIONALAUTOCARE.COM
Tony Wanderon,
CEO, National Auto Care
Press inquiries:
Dee Holleran, Marketing and Public Relations,
(614) 839-7758
2. T
ake a look at any of the publications
aimed towards auto dealers. Youâll
find at least a few pages every month
devoted to ideas to promote a dealership -
from wrapping the courtesy shuttles with
pictures of sports cars to hiring food trucks
to feed customers to yes, installing the
ubiquitous inflatable King Kong on top of the
dealerâs roof.
But what if you could draw from a group of
customers who not only were ready to buy
a car, but were specifically interested in
buying from YOUR dealership? No expensive
advertising, no time-consuming traffic
builders â just buying and selling cars.
Sounds like Car Dealer Nirvana, right?
You have that opportunity today. For every
car that your dealership sells, you have the
opportunity to bring that customer back â
not just to buy another car, but for regular
service, which can help to increase dealer
revenue and customer loyalty. And every
customer that comes back is a missionary
â a happy customer who will tell family and
friends about the great experience they had at
your dealership.
Consider this â in a 2012 Ruetersâ article, then
global product development chief and now
General Motors CEO Mary Barra said that a
single percentage point improvement in sales
retention means about 25,000 vehicles, or
about $700 million in revenue annually.1
While youâre probably not dealing with
numbers that large, scale that to your own
dealership and youâll begin to see
the value of an increased focus on customer
loyalty.
Building customer loyalty can bring in new
customers as well. According to an April
20, 2015 Bloomberg2
report, the Millennial
Generation â those born between the years
1984 and 2000 - are the second-largest group
of new car buyers after their Baby Boomer
parents. These Millennials, also known as the
under-35 demographic, made more than 27%
of new car purchases in 2014.
AreyouReady
foraNew
Approachto
Value-added
Marketingfor
yourDealershipâs
Customers?
NATIONALAUTOCARE.COM Press Inquiries: Dee Holleran, Marketing and Public Relations, (614) 839-7758 (Direct)
1
1
http://in.reuters.com/
article/2012/09/19/
gm-customers-loyalty-
idINL1E8KJA0M20120919
2
http://www.bloomberg.com/
news/articles/2015-04-20/
millennials-embrace-cars-
defying-predictions-of-sales-
implosionmedia/23749555/
Tony Wanderon,
CEO,
National Auto Care
Press Inquiries:
Dee Holleran,
Marketing and
Public Relations,
(614) 839-7758
(Direct)
3. Who do millennials seek out for advice when
they are buying a car? A recent study by
Matrixcz3
showed that friends and family
are the most important information source
for millennials when buying a new car. So
if your current customers are so happy with
their experience that they plan on returning
to your dealership for their next purchase,
you could have a highly influential outside
sales force helping drive new customers to
your door.
So whatâs the âsecret sauceâ to bring
customers back? Itâs not rebates, free floor
mats, or a gourmet coffee bar in the lobby.
Itâs making the experience of owning a
car more pleasurable by protecting the
vehicle ownerâs investment and providing
exceptional service. The easiest way to do
that is by offering a broad range of value-
added customer retention products to bring
customers back to your dealership for
service and solutions.
The Retention Equation:
Protection + Service = Retention
For many customers, buying a car is the
second largest purchase they will ever
make. As dealers â and perceived experts
in the automotive buying world â you have
the opportunity to help your customers
protect the appearance, functionality and
value of that purchase. Thatâs a service that
customers will appreciate, and one that the
retail electronics and appliance industry has
shown to be very effective.
In a survey conducted as part of the Assurant
Solutionsâ Consumer Profile and Interest
study4
, 31 percent of electronics and
appliance purchasers said that they were
more likely to promote and visit a retailer if
they owned an extended service plan. Back
in the automotive dealer world, Providers
and Administrators Magazine reports that a
customer retention program increases the
likelihood of repeat business from 17 percent
to 83 percent5
.
As important, a study conducted by Dealer
Socket founds that while the average
dealershipâs fixed operations accounted
for only 12 percent of store revenue, fixed
operations produced 60 percent of net total
profits6
. So service contracts, pre-paid
maintenance, and other customer retention
products that drive customers to your
service lane may also help give your profit
margin a healthy boost.
A Commodity â or a Custom Fit
for Each Customer?
You sell trucks, sedans, compacts and
SUVs to appeal to the broadest range of
buyers. If you want to offer a great customer
experience and grow your F&I product
penetration, you need to choose a provider
that offers you a wide variety of customer
retention F&I products to meet the diverse
needs of your customers. Weâre going to look
at just a few of these products and show how
they can build both loyalty and service lane
revenue in your dealership.
NATIONALAUTOCARE.COM Press Inquiries: Dee Holleran, Marketing and Public Relations, (614) 839-7758 (Direct)
2
The
Retention
Equation:
Protection
+ Service
= Retention
3
http://www.detroitnews.
com/story/business/
autos/2015/02/20/car-buyers-
use-social-media/23749555/
4
Rebuilding Customer Loyalty
with Extended Warranties, 2014
Assurant Solutions
5
http://pa-magazine.com/
industry/drive-service-
retention-and-be-your-
dealer%E2%80%99s-hero/
6
http://www.autoremarketing.
com/trends/how-much-of-your-
profit-from-fixed-ops. Auto
Remarketing, May 2015.
4. One of most common problems at trade in or
when a vehicle is declared a total loss after
an accident is negative equity. National Auto
Care, a leading provider of both Guaranteed
Asset Protection and Trade-In Protection,
sees an average negative equity of $3,000 to
$4,000 per claim.
That may seem like a customer problem,
but ultimately, the blame comes back
to the dealer â unless youâve prepared
the customer with a purchase protection
product.
Guaranteed Asset
Protection and
Trade-In Protection
offer customers
a way to recover
from an accident or
trade-in that leaves
them âupside-downâ
when they go to buy
their new vehicle.
Recognizing the need
for this product during a customer interview
and helping your customer see its value is
the first step in building a repeat relationship
â especially with a Trade-In Protection
product, since it requires that the customer
return to your dealership to take advantage
of the benefit.
Whatâs the right F&I product for the soccer
mom whose mini-van never seems to stop?
A customer Vehicle Service Agreement with
rental car coverage can help to keep her
on the road AND help to protect her budget
from unexpected repair bills. In order to
keep the coverage in force, all maintenance
services will need to be done in your store
â which will increase your service drive
business, and increase her likelihood of a
repeat purchase by more than 50 percent.
Whatâs the best product for a first-time car
buyer? Create a blanket option that bundles
coverage on key fobs, tires and wheels, and
dings and dents to offer those customers
reassurance on the protection of their new
investment. Knowing that youâll be there to
cover those items
that keep the car
looking great and
running well will
make you a preferred
dealer for those
customers â making
them more likely
to return to you for
service â and for their
next purchase.
There is even an F&I product that will
help you with that hard-to-sell customer!
Offer them a special loyalty bonus with
their vehicle purchase. A lifetime limited
warranty or loyalty plan will cost you less
than 3 or 4 commercials on your local radio
station, but will bring customers back to you
for all of their maintenance and repairs and,
again, help to increase the opportunity for a
repeat buy. (Do you see a pattern here?)
Customer retention products like these
provide on-going opportunities to
NationalAuto
Careseesan
averagenegative
equityof$3,000
to$4,000per
trade-intoday.
NATIONALAUTOCARE.COM Press Inquiries: Dee Holleran, Marketing and Public Relations, (614) 839-7758 (Direct)
3
5. demonstrate the quality of your service
department, and are proven to be strong
contributors to purchase and service loyalty
Marketing to Create Missionaries
for your Dealership
CNBC said it last year â people do not visit
car dealerships anymore.7
In fact, 1 in 6
customers even forego the test drive; â4 in 5
people now use the Internet for car buying,
visiting 10 auto websites in the process,â said
Dr. Mary Sheridan, Manager of Research and
Analytics at DMEa.8
So how does a smart dealer combat the
Internet to tell their service story? It starts by
taking the story to the customer.
If the average customer looks at 10 dealer
websites before they visit one, make yours
the one that stands out by providing valuable
educational content in a form that caters to
common search strategies. More than 83
percent of those polled by MakeMyDeal, a
Cox Automotive company, say they prefer to
learn about F&I products beforehand and on
their own, and the Internet is a great way to
do that.9
Here are a few ideas:
â â Studies show that car shoppers actively
search for reviews, so use your website
and social media properties to âreviewâ
your vehicle service agreements
and compare them to manufacturer
warranties.
â â Show a testimonial from a customer who
benefited from key fob protection â be sure
to use the words âunlock carâ or âcopy
keyâ in the story, or ask your IT manager
to put those words in the metatags (they
will know what you mean, and even be
impressed that you thought of it!)
â â Start a âpothole patrolâ on your dealer
Facebook page, and invite your fans to post
pictures of the worst ones in the area. Take
advantage of opportunities to promote tire
and wheel coverage in your response.
Research shows that more than 90 percent
of car shoppers are aware of Vehicle Service
Agreements, but only 37 percent buy them.
Why? The majority of buyers think that they
are already covered by the manufacturerâs
warranty.
So why not use some of your advertising to
promote the extra value of a Vehicle Service
Agreement, like roadside service or trip
interruption. If you have a visual that you use
to explain how a Vehicle Service Agreement
picks up after the manufacturerâs warranty
ends, post that visual on your blog and use
it to explain the value of the Vehicle Service
Agreement.
Many customers are not aware of these
benefits, and few dealerships advertise
them, so when you do, it will be a unique
message in your marketplace.
Let your TV sales representative know
that you are available for TV interviews.
News producers are always looking for a
local expert, and it will be free advertising
for you! Here are a few story suggestions
that might make you a morning TV star in
your market:
Customer
retention
productslike
VehicleService
Agreements
areproven
tobestrong
contributorsto
purchaseand
serviceloyalty.
NATIONALAUTOCARE.COM Press Inquiries: Dee Holleran, Marketing and Public Relations, (614) 839-7758 (Direct)
4
7
w.cnbc.com/id/101445202
8
http://www.dmeautomotive.com/
announcements/1-in-6-car-
buyers-skips-test-drive-nearly-
half-visit-just-one-or-no-
dealership-prior-to-purchase#.
VVDzBvlViko
9
http://wardsauto.com/finance-
insurance-resource-center/
study-looks-easing-car-
dealership-fi-pain-points
6. â â Best cars for teens or college students
(This opens up opportunities to
discuss key protection and tire and
wheel coverage as well as pre-paid
maintenance)
â â Getting your car ready for a driving
vacation (Many Vehicle Service
Agreements offer trip interruption â this
is a great time to plant that seed in the
buyerâs mind!)
â â Getting your car ready for winter (Be
sure to address the importance of
regular maintenance, and how a prepaid
maintenance plan makes it easier.)
These are just a few ways to build a little F&I
education into your marketing. Not only will it
be a unique message, but it will also present
your dealership as a trusted service advisor
in your marketplace.
Pick the Right Partner
The moral of this story: being the dealership
with the biggest inflatable animal is no
longer a key to success. By standing out in
the marketplace in a positive, meaningful
way, by offering and marketing value-
added products, and by making the lifetime
experience of owning the car better for the
customer, youâll build a loyal customer base
and benefit from positive word of mouth as
well.
Protection + Service = Retention
Choosing the right service contract for each
buyer and backing it up with great service
in your dealership is essential to being that
value-added dealership. So ask your local
independent insurance agent to find a F&I
provider that offers the following:
- A wide range of products with flexible
features to suit your customers
- Solid product and selling training
- Technology that makes selling service
contracts fast, easy and paper free by
integrating with your dealer software
- Marketing support that allows you to create
a private label product for your dealership
- Strong support of the dealer system. If your
F&I provider is trying to move customers to
online buying, itâs not a partner.
Your local independent insurance agent will
be able to help you select the right provider to
answer all of your needs â a provider that will
help turn your first-time buyers into lifetime
buyers, and missionaries for your dealership.
NATIONALAUTOCARE.COM Press Inquiries: Dee Holleran, Marketing and Public Relations, (614) 839-7758 (Direct) @2015 National Auto Care
5
Build a little
F&I education
into your
marketing to
present your
dealership as a
trusted service
advisor in your
marketplace.
Founded in 1984, National Auto Care Corporation is one of the nationâs leading providers of F&I products,
administration, consulting services, training and marketing support to independent agents, insurance
companies, financial institutions, third-party administrators, credit unions, and auto manufacturers
nationwide.
The National Auto Care executive team brings a unique blend of dealer experience and insurance
experience to the creation, administration and marketing of its aftermarket F&I products, including
Guaranteed Asset Protection and Trade-In Protection, Vehicle Service Agreements, Certified Limited
Warranties, Excess Wear and Tear, Key Fob, Glass Protection and more.
National Auto Care is dedicated to the independent insurance agent and the independent dealer.
440 Polaris Parkway
Suite 250
Westerville, OH 43082
800-548-1875