Prepaid service plans tailored to used cars are profitable

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Only one year after the Canadian launch of its Loyalty Smart Card, Loyalty Logistix is offering a spin on its use: a pre-paid service package the company says offers move value than discounts, particularly on used car sales.

Loyalty Logistix president John Dixon explains: “Dealers can retain more margin and build better long-term relationships with more of their used car customers, an area where service retention is traditionally poor.”

Dixon says he’s eager to share the secret to unlocking this profitable opportunity – simple administration and staying in touch with customers.

That’s where the Loyalty Smart Card system comes in to play.

“It delivers, more or less, guaranteed incremental revenue opportunities by creating an easy-to-sell product, which may include any number of dealer-defined scheduled services, annual inspections, as well as soft benefits such as car detailing, pick up and drop off.”

The program itself can be customized for different vehicle maintenance requirements, he says.
The second part of this formula is staying in touch, which is achieved by administering this pre-paid service through the Loyalty Smart Card program.  

By using this method of communication, reminders for scheduled services and annual inspections are sent to the customer in addition to any marketing initiatives that the dealer may wish to promote.  

“The opportunity to improve used vehicle service loyalty is realistic, especially when we know that older cars are much more profitable to service,” says Dixon. “As a result, it will eliminate any obstacles to sell service plans to used car customers, either through the sales force or the business office.”

Using this approach worldwide, Loyalty Logistix says it has helped dealers attain over 40 per cent penetration on used car sales.

“And the best news is that the Loyalty Logistix model is a pay-per-use basis, making it a low-cost option for dealers.”

For further information, please contact John Dixon, president Loyalty Logistix, (905) 331-8700, (cell) (416) 505-1218, jdixon@autothority.ca or visit www.loyaltylogistix.ca.