Warranties are more likely to encourage car buyers back to your dealership than service plans, according to the most comprehensive study of the UK car servicing market.
More than 17,500 British car owners took part in the Castrol Professional Car Servicing & Repair Trend Tracker report. It found customers were 10 times more likely to return to a franchise dealership for servicing work because of their vehicle warranty.
Over two-thirds of those surveyed said they returned to the dealership where they bought their vehicle because of the warranty. Customer retention boosts revenue, builds trust and helps win new customers through word of mouth – so the argument for providing first-class warranty cover is concrete.
By comparison, only 6% named service plans as their main reason for returning. A strong portfolio of first class aftercare products will help boost customer retention more than any other service offering.
Download our FREE eBook – A guide to motoring financial aftercare – for impartial advice and guidance on vehicle financial aftercare products and their benefits.
Can you improve your warranty sales?
With such overwhelming evidence showing the importance of vehicle warranties for maintaining an ongoing relationship with your customers, it is vital to ensure you’re doing everything you can to boost sales. Here are some tips for improving your warranty sales:
- Ensure your sales staff are fully up-to-date on the warranty products your dealership offers. That includes understanding all the product terms and conditions.
- Vehicle warranty helps to protect motorists from the unexpected and unwanted cost of a mechanical or electrical fault – getting that across to customers is important. Customers are increasingly opting to plan for the unexpected and be prepared.
- Understand how the warranty can benefit individual customers, how it might not and be completely transparent with them. We believe the customer should always be at the heart of your business. For more advice on how best to achieve this, download our FREE eBook: Putting your customers first.
Car Care Plan offers specialist training to help dealerships understand our products and be in the best position to sell them. We also offer free dealership Health Checks to ensure you are providing the best possible service for your customers.