Self-Managed Pre-Paid Maintenance Programs Keep Customers Coming Back

Self-Managed Pre-Paid Maintenance Programs Keep Customers Coming BackToday’s technology-driven plans make it very easy for dealers to customize what is offered in a PPM. Plans that provide the product (value) important to the local market will appeal more to buyers, making their presentation and sale in the F&I office or service lane more profitable and successful for the dealership.

It is these plans’ ability to retain a customer’s service business and then create upsell opportunities for additional customer-pay repair order (RO) business that make them like a money tree. These programs can triple the likelihood of the customer continually returning for service – a big growth over the 18 to 20 percent of customers who do traditionally return with a PPM’s incentive.

By converting PPM owners’ prepaid maintenance work to additional legitimate service needs, the additional retail parts and labor can produce healthy additional business. Some dealers report an additional $150 to $350 of up-sold retail customer-pay business per RO as a result.

Every plan will experience forfeiture. It results when a customer terminates the plan early or for whatever reason does not use the plan. In some PPMs, the third-party administrator holds this dealer-funded reserve. It is from this reserve that the administrator would often take up to 60 percent of the value of the cancelled services as part of its fee structure. Today’s self-managed plans enable the dealer to processes forfeiture through the general accounting ledger and add the reserve to their own bottom line.

For more information about the benefits of Pre-Paid Maintenance Programs, visit http://ow.ly/bN7Gj

Request product information about plan customizations and program features.

Email This Post  

Leave a comment

MediaTrac In The News


  • collapse2018
  • expand2017
  • expand2016
  • expand2015
  • expand2014
  • expand2013
  • expand2012
  • expand2011