Prepaid Oil Changes – Building Customer Loyalty

In a recent Automotive News Article they interview the President of Farrario Team in Pennsylvnia and New York who has four dealerships – representing Chrysler, Dodge, Jeep, Chevrolet, Ford and Lincoln manufactures.

Customers who buy vehicles from Ferrario can purchase the Ferrario 100K program for $269, entitling them to an oil and filter change for $9 every 3,000 miles for six years or 100,000 miles, and a service loaner for every visit. The service only customers can buy plans with 12- to 36-month terms offering fewer services.

With this the obvious goal is to build customer loyalty and ensure that customers routinely visit the dealership while also selling more needed service in the future and setting up the next vehicle sale in the front end when the customer is ready to buy.

Does this work? According to Don Farriro they have over 3,000 active customers enrolled and the service penetration rate is over 40 percent on both new and used vehicles – so all signals point to it working, with 2009 having been a great year.

As with any program like this the key is building the customer experience to do the best possible job to have them come back for service and vehicle sales over time. Congrats the Farrario Team for doing such a great job.

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