EMaC are stressing the importance of a robust Service Plan and Warranty programme following analysis completed by Realtime Communications (RTC). The recent study warned that dealerships could be facing a major service revenue shortfall due to the drop-off of new car registrations, as new vehicle supply chains continue to get back up to speed.
The analysis warns that the loss of routine service revenue from new vehicles could amount to the equivalent of £1.3bn over the course of the next four years. Consumers that would traditionally return to the franchised dealer network for their service work whilst in manufacturer warranty are lost to the network completely or have opted for an older used vehicle.
Liam Finney, Director of Commercial Partnerships at EMaC commented “The feedback we are getting from our partners clearly shows that dealers and OEMs are concerned about consumer retention; they are keen to find ways to keep the older, used vehicles that they have been selling returning to them in the franchised network.”
“We have worked closely with a number of our partners who are seeing positive results from EMaC’s Lifetime warranty product. They see this product as a great way to bridge the service gap. By offering consumers extended warranty periods on older vehicles, consumer retention is enhanced, with no drop off after 2/3 years that dealers have traditionally seen when selling older vehicles.”
EMaC’s Lifetime Warranty combines the benefits of a warranty, a service plan and breakdown assistance in one bundle, payable by a single, monthly Direct Debit instalment. Consumers enter a comprehensive relationship with their dealer through the tangible and ongoing benefits of the Lifetime Warranty.
Alistair Jeff, Commercial Director at RTC is keen to highlight the benefits retailers will see by improving longer term customer retention “Short-term warranty solutions offer some re-assurance for customers, but with many vehicles being bought with at least a 3-year ownership in mind, consumers want more.”
“Offering longer Used Car Warranties and Service Plans, in conjunction with a proactive Aftersales Team following up Amber eVHC work will generate more consistent revenue for dealerships, increasing retention and building a longer-term relationship with consumers. All this helps to maximise customer lifetime value.”