You will find that most businesses have some form of up-sell plan that involves encouraging their customers to make an additional purchase from them. Sainsbury’s received considerable criticism when a staff morale poster, encouraging employees to try and obtain an additional 50p worth of sales from every customers, was accidentally posted in public. This led to a wave of criticism and a lot of laughter at the campaign which was very quickly shared around social media sites.
While customers don’t like to think that they are being targeted by every shop, it is fair to say that the vast majority of businesses do encourage their customers to spend as much as possible. This makes perfect business sense but some industries are trusted to a greater degree than others. It would be fair to say that many drivers will feel as though they spend enough money in looking after their car and will feel hesitant about spending any more money in caring for their car.
Motorists are willing to spend if there is value
However, it would also be fair to say that modern motorists are a lot savvier than previous generations of drivers and if there is a chance to save money in the long-term by spending now, you will find that there is an acceptance and even a willingness to buy the up-sell that is on offer.
However, at a recent AfterSales Conference hosted by a popular industry magazine, the MD of Emac’s motor service plans in Europe and the UK stated that service plans are actually wanted by customers and that they are not a hard sell. Angela Barrow was the representative of Emac who stated that customers are 60% more likely to visit the same garage for servicing if they signed up to a service plans than people who are not holders of a service plan.
Alex Knight is the Marketing Director of CarVue, who said; “Whilst service plans provide a way for customers to budget for routine servicing by paying a set monthly amount or a one-off, upfront cost, in general, they do not fall under the auspices of the Financial Conduct Authority so if your business is not FCA authorised, this should not be an obstacle when considering selling service plans. There are several service plan providers on the market so you don’t have to manage the payments yourself or develop your own marketing materials to promote them, yet your garage will still reap the benefits of returning customers and customer loyalty.”
A lot of service plans work because a customer pays for the service there and then and when the time the next service is due, it is already accounted for. This allows motorists to schedule their finances in a more effective manner and it means that the customer has a fixed price. The garage is also able to start scheduling work in the distance, allowing them to better understand when they are likely to be busy.