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New Auto Dealer Preventive Maintenance Program "UltraCare" Increases Customer Loyalty and Service Retention

San Ramon, CAApril 12, 2010 – Performance Loyalty Group, has partnered with Performance Loyalty Group, a technology based marketing company that provides customized frequency marketing, owner loyalty and retention programs, to release UltraCare. Web based technology that allows auto dealerships to create, manage and market their own branded in house pre-paid maintenance program. With the current year over year decrease in new vehicle sales, service volumes are predicted to fall by approximately 20 percent over the next five years. Dealers who wish to minimize the impending future loss of service business must act now to establish an offset to the lower vehicle sales. The UltraCare program provides that offset with immediate liquid assets as it has no third party administrators, no sharing of plan revenue or forfeiture, no service claim submissions and is fully integrated into the dealership's DMS.

The difference between UltraCare and other maintenance programs is that all of the dealer's revenue stays in the dealership with the dealer realizing 100-percent of program forfeiture and plan sales dollars.

"Dealers have to address the huge drop in car sales and what that will mean to service business 4-5 years down the road," commented Michael Gorun, Managing Partner at Performance Loyalty Group. "We listened to dealer's objections about the typically archaic processes attached to the old prepaid legacy programs, their frustrations with such things as coupon books, shared forfeiture, loss of control of program revenue, non-captive service, delayed claims submission and we invested in new technology and processes that eliminates every one of these old headaches".

With the combination of UltraCare's complete program automation and Performance Loyalty Group's superior integrated owner retention elements, Performance Loyalty Group predicts that a dealership should immediately see 35-45 percent program sales penetration and a 60-70 percent service retention rate.

A comprehensive, value-based customer loyalty approach builds loyalty with a broad set of customers. But even more importantly, it focuses on the dealership's most profitable customer profile—those who are frequent patrons, and those who buy a variety of products and services. LoyaltyTrac builds loyalty by rewarding these customers, and provides incentive to the casual customer to buy more goods. This strategy fundamentally changes the customers' buying behavior so they buy more—and more frequently—from the dealership. It's a proven fact that customers enjoy getting rewards and are willing to buy more when they're rewarded for their loyalty to a particular brand. In fact, 80 percent of customers who participate in a rewards-based customer loyalty program say their membership in the program influences their purchasing decisions.

Building a loyal customer base with LoyaltyTrac enables a dealership to drive higher revenue and improved profit. According to results from auto dealers using the program in 2009, if a dealership were to enroll each of their service lane customers, the increase in service revenue would be $190,000 after 12 months (based on 420 ROs per month).

Dealerships are increasingly realizing that building meaningful customer relationships while providing some form of member equity will lead to long-term success. Performance Loyalty Group, expects to reach the seven million member plateau before the end of 2010, along with a further increase in customer visit frequency for its dealers.

Current industry statistics indicate that only 18 to 20-percent of customers return to the dealership for service, UltraCare could effectively triple the likelihood of the customer continually return for service.

UltraCare is also compatible with a dealers pre-owned competitive make inventory and is very effective as service lane sales product.

For more information about the UltraCare PrePaid Maintenance Program from Performance Loyalty Group, contact Jeff Shenk at: 925-415-1300.

About Performance Loyalty Group

Headquartered in San Ramon, California, Performance Loyalty Group is a leading marketing technology company providing customized loyalty rewards, customer retention, prepaid maintenance and media tracking programs for the automotive industry.

Performance Loyalty Group Contacts

Jeff Shenk
Performance Loyalty Group
Sara Callahan
Carter West Public Relations

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