Warranties becoming CRM tools as profits shift to aftersales
Dealers are increasingly recognising the boost that warranties can bring to aftersales business - and working harder to sell them as a result.
RAC Warranty, a new warranty brand offered by the RAC in partnership with The Warranty Group, says that as dealer profitability continues to shift to aftersales, warranties are beginning to be identified as a potential customer retention tool.
Ian Simpson, sales and marketing director, said: “The majority of dealerships now make more money from their aftersales operations than from selling new or used cars, so they are understandably very keen on winning and retaining aftersales business.
“Increasingly, warranties are being seen as part of this process. The profit potential of a warranty has traditionally been recognised by dealers only as resulting from the point of sale. However, there is a growing realisation that a warranty will mean a customer returning to the dealership if a claim is made and that this represents an opportunity.”
Simpson explained that a positive warranty handling experience could play a key part in building a long term relationship if the right impression is made on the customer.
He said: “Dealers want that customer to return for future service and maintenance work. A well-handled and efficient warranty claim is as much a part of a dealer’s ongoing CRM process as any other customer relationship tool at their disposal.
“Dealers are beginning to sell warranties not just because of their immediate profit potential but because they recognise that they can help to cement a long-term relationship with a customer and want the future profitability that can result.”
RAC Warranty offers an extensive group of products. There is a range for FSA compliant dealers - Parts and Labour Cover at Silver, Gold and Platinum levels, GAP Loan Shortfall Insurance, GAP Return to Invoice Insurance, Tyre Insurance, MOT failure Insurance and Lost Keys Insurance. Depending on the level of warranty cover there is no exclusion to the age or mileage of the car as long as it meets minimum purchase price requirements.
Additionally, a new maintenance and repair product providing excellent value to consumers, but not subject to FSA regulation, has been developed which will allow a large number of dealers to add significant benefits to their ongoing customer relationships.
Dealers who want to find out more about RAC Warranty should call 0208 869 7155.
