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Over 200 Auto Dealerships Enroll in UltraCare Preventive Maintenance Program in Just 90 Days, Increase Service Revenues and Customer Retention

August 4, 2010

Program in Just 90 Days, Increase Service Revenues and Customer Retention


Performance Loyalty Group, Inc., in partnership with MediaTrac, LLC, today announced that the UltraCare Preventative Maintenance Program introduced in April has enrolled over 200 auto dealerships in just 90 days and substantially increased service traffic and service drive revenues for these dealers.  While current industry statistics indicate that roughly one in five customers return to the dealership for service, UltraCare plan holders are visiting their servicing dealers at a rate of 72 percent. Further, plan holders that return to the dealer to redeem pre-paid plan elements also purchase incremental service at a rate close to 90 percent, resulting in an average incremental up-sell of $128 per customer.

“We took a page from AutoNation’s playbook and began to market UltraCare heavily in the service drive which resulted in a substantial percentage of sales shifting from the F&I Department to the Service Department. Customers are more likely to purchase a maintenance plan in service when they don’t have competing F&I products to consider and the loan to value issue is gone, commented Michael Gorun, Managing Partner at MediaTrac. “The results have been great, dealerships are selling an average of 40 plans per month in service generating while maintaining an average Customer Pay RO amount of $232.70 on those plans sold.”

UltraCare’s web-based technology allows auto dealerships to create, manage and market their own branded in house pre-paid maintenance program while holding all of the program revenue and managing the net service costs to the customer. What makes this attractive to the retail customer is that the dealer can offer a more robust, value-driven plan that customers purchase with higher frequency than those administered through an independent third party.

With service volumes predicted to fall by approximately 20 percent over the next five years.  Dealers can minimize this impending future loss of service business with the UltraCare program. Because it has no third party administrators, no sharing of plan revenue or forfeiture, and no service claim submissions, it provides an offset with immediate liquid assets. It is also fully integrated into the dealership’s DMS.

“We are very excited with the results are dealers are seeing.  UltraCare is extremely user-friendly; we have invested in new technologies and processes that remove the headaches and typically archaic processes attached to the old prepaid legacy programs, every piece of the program is completely automated,” Gorun said.
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.

With the combination of UltraCare’s complete program automation and MediaTrac’s superior integrated owner retention elements, dealerships are immediately seeing 35-45 percent program sales penetration and a 65-75 percent service retention rate.

UltraCare is also compatible with a dealers pre-owned competitive make inventory.  For additional information about UltraCare contact Jeff Shenk at: 925-415-1300 or visit: http://www.media-trac.com/

About Performance Loyalty Group, Inc:
Headquartered in San Ramon, California, Performance Loyalty Group, Inc is a marketing technology company providing customized frequency marketing, customer loyalty, retention and media tracking programs. The company is the largest provider of custom automotive loyalty retention programs in North America. For more information visit www.media-trac.com

8/4/10

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