CASE STUDY #1
Increased the F&I revenue and service retention drastically and doubled the prospects of selling more cars.
A stand-alone import dealership needed a better strategy to increase F&I profit, retain customers and make a second sale. To accomplish this, the PRO consulting team conducted a thorough product assessment and fashioned a unique profit opportunity in the form of a customized pre-paid maintenance program.
A typical approach of selling products for high price was not well received by the customers. Therefore, to grow profit, the dealership needed to focus on selling customized products that served the customers’ needs.
We leveraged our industry experience to quickly identify that the dealership required a customer- centric approach and offer products that customers needed.
We customized a pre-paid maintenance program that would provide discounted maintenance coverage to the customers. We also added glass and key coverage as a benefits package for the customers to further enhance their overall ownership experience. The process involved a series of training sessions for the dealership staff to sell the products that would add value to both the customers and the sales personnel.
Increase in Service Retention
The sales department experienced a significant increase in the service retention of over 90%.
Increase in Profits Per Vehicle
The customized maintenance program and the PRO team’s expertise helped the dealership create a profit center in the finance department and grow profits by 9% per vehicle retailed. It substantially contributed to the overall revenue of the dealership.
The customized maintenance program strategy was highly successful as nine out of ten customers returned to the dealership multiple times to use the maintenance plan. Furthermore, it provided more opportunities to engage with the customers, generate more referrals, and considerably reduced the cost of acquiring new customers.