San Ramon, CA (PRWEB) November 10, 2010
MediaTrac, LLC (http://www.media-trac.com), a marketing technology company providing customized frequency marketing, customer loyalty, retention and media tracking programs for auto dealers, announced today that Ancira Winton Chevrolet in San Antonio, Texas is using its UltraCare dealership branded Prepaid Maintenance Program (PPM) to catch up in service what it has been lacking in sales. The dealership sold 195 PPMs in September alone, and with vehicle sales of 242, achieved a remarkable sales penetration of 82 percent. The program also produced an average upsell per Repair Order of $85. Ancira Winton Chevrolet is part of Ancira Enterprises, one of the largest Hispanic owned dealerships in the country with sales of over 1000 units per month. Based on the success of the program in this store, the dealership is now rolling it out to its entire group. (As covered in Automotive News: http://budurl.com/l494)
According to Joey Blackmon, vice president-operations of Ancira Winton Chevrolet, the dealership had built its service business around sales of approximately 275 new vehicles per month. When that that fell to the 100 range, it started to look at improving service business to balance the deficit in sales, "We needed to generate more service profit. While the dealership retains dealership service customers during the warranty period, when that's over the customers tend to defect to the Jiffy Lubes. PPMs are a great tool to keep the customer coming back to OUR dealership. The UltraCare PPM program has been a huge success with over 200 sold in a little over three weeks and a huge upsell in our dollars per Repair Order. Sales are slowly turning around and we are starting to make up in service what we had lost in sales."
At first the dealership planned to give away a PPM with each new car sold. However, in the current economy it could not afford to do this so chose to sell it in F&I for a very minimal amount that pays for the cost plus a spiff to have people sell it.
"The idea was to get customers tied to the dealership without costing us anything and we've made great inroads. Instead of spending money on expensive advertising, our PPM program guarantees return customers at very little cost to the dealership. At some point we plan to give it away and it will more than pay for itself with customer retention and the upsell it produces in dollars per RO," Blackmon said.
Ancira Winton Chevrolet also aggressively sells PPMs in the service drive and packages them pretty much at cost to make it an attractive, quick and easy sale. Service is now outselling F&I.
The dealership sold 195 policies in September- 53 percent in service and 47 percent in F&I, and far surpassed its goal of 30 percent penetration. With 242 vehicles and 195 PPMs sold in the month of September, the dealership achieved an 82 percent sales penetration with an average upsell per Repair Order of $85.
One of the best selling packages in service is a 12 month, 12,000 mile package that includes three oil changes; two tire rotations and balances; and three 27 point inspections, plus a ten percent discount of any other service, accessory or part, at a cost of just $139.95. The dealership services approximately 125 customers per day and pitches its PPM packages to each service customer, "When you consider that the everyday pricing for normal oil change and tire rotation is around the $80 mark, we can easily pitch the customer to spend $80 today and $80 at the next visit, or $139 today and pay nothing for the next two visits. We've been extremely aggressive and sold 100 in just three weeks," commented Jim McAfee, Ancira Winton Chevrolet service Director. "In a city this size you can't survive without repeat business. This is a great retention tool in today's market as it's incredibly important to keep customers coming back. This program is about as cheap as you can get for a highly effective retention tool to drive traffic back into the dealership," McAfee added.
About MediaTrac™ LLC:
Headquartered in San Ramon, California, MediaTrac, LLC is a marketing technology company providing customized frequency marketing, customer loyalty, retention and media tracking programs. The company is the largest provider of custom automotive loyalty retention programs in North America. For more information visit http://www.media-trac.com