SAN RAMON, Calif., Jan. 24, 2011 -- Ken Garff Automotive
Group has implemented a preventive maintenance program to grow its service
revenue and boost customer retention with its existing customers. The group
began as a single-car dealership in downtown Salt Lake City in 1932, and has
since grown to include over 35 new and used vehicle locations throughout the
U.S. Garff selected MediaTrac (http://www.media-trac.com),
a frequency marketing, loyalty and technology services company, to provide
their UltraCare Preventive Maintenance solution because of its unique ability
to be administered and sold from the service lane as well as in F&I.
"From the results UltraCare
(http://www.media-trac.com/ultracare.shtml)
has shown us, this will be a great customer retention tool. It should increase
customer visit frequency and our overall vehicle service contract
effectiveness, while providing more value for our customers," commented
Danny Cox, Corporate F&I Director at Ken Garff Automotive Group. He
continues, "I'm very excited and look forward to the results I am certain
we will soon enjoy."
MediaTrac introduced the UltraCare program eight months ago
and has since enrolled over 200 individual dealerships.
While current industry statistics indicate that roughly
one in five customers return to the dealership for service, UltraCare plan
holders are visiting their servicing dealers at a rate of 72 percent. Further,
plan holders that return to the dealership to redeem their plan elements also
purchase incremental retail service about 90% of the time.
In addition to the increased visit frequency, UltraCare
plan holders are averaging incremental retail service up-sell of
$128 per visit.
According to Michael Gorun, Managing Partner at
MediaTrac, as the Ken Garff Automotive Group has recognized, the opportunity is
on the service drive. A dealer that writes 1,500 RO's a month can easily sell
150-200 maintenance policies just by asking the customer. In F&I, it takes
a 500-600 unit store to generate the same 200 maintenance policies. "Our
dealer clients have made UltraCare a new revenue source for the Service
Department as more and more plans are sold in the service lane when compared to
the F&I Department. Customers are more likely to purchase a maintenance
plan in service when they don't have competing F&I products to consider and
the loan to value issue is gone," Gorun added.
UltraCare's web-based technology allows auto dealerships
to create, manage and market their own branded, in-house prepaid maintenance
program while holding all of the program revenue and managing the net service
costs to the customer.
What makes this attractive to the retail customer is that
the dealer can offer a more robust, value-driven plan that customers purchase
with higher frequency than those administered through an independent third
party.
For additional information about UltraCare contact Jeff
Shenk at: 925-415-1300 or visit: http://www.media-trac.com.
About MediaTrac(TM) (http://www.media-trac.com/about.shtml)
Headquartered in San Ramon, California, MediaTrac is a
marketing technology company providing customized frequency marketing, customer
loyalty, retention and media tracking programs. The company is one of the
fastest growing privately held firms in Northern California.
No comments:
Post a Comment