Prepaid Maintenance Improves Brand Loyalty: Study

Prepaid Maintenance Improves Brand Loyalty: Study

Car owners nationwide are taking advantage of complimentary or prepaid maintenance programs.

According to the 2014 J.D. Power Customer Service Index (CSI) Study, the percentage of vehicle owners with complimentary or prepaid maintenance programs has more than doubled in the past five years. Use of those maintenance programs are benefiting dealers and automakers through loyalty and repurchase rates, the study shows.

“Maintenance packages – whether they’re complimentary or paid for by owners – create a long-term relationship between the customer and dealership, which, when coupled with satisfying service experiences during that period, can have a very positive impact on loyalty rates,” said Chris Sutton, senior director of the U.S. Automotive Retail Practice at J.D. Power.”

SEE ALSO: Cadillac, Buick Top J.D. Power Customer Service Index

In the study, 68 percent of luxury vehicle owners and 46 percent of mass market brand owners indicated that their vehicles are covered under either a complimentary or prepaid maintenance package during the first year of ownership. In 2009, only 35 percent of luxury owners and 15 percent of mass market owners reported the same.

“Maintenance packages help capture a higher percentage of service visits, and since customers with these plans are predisposed to purchase such items as batteries, brakes and tires from the dealer even after their plan expires, dealers retain key revenue opportunities for service and repairs, Sutton said.”

Even more telling is that 72 percent of those with a maintenance package repurchased the same vehicle make next time around, compared with 62 percent who did not.