woman looking at advertisement

Direct Marketing for auto dealerships

Increase F&I sales opportunities with this no-cost program

A 2023 survey showed only 29% of car buyers purchased a Vehicle Service Contract (VSC) when they bought their vehicle at a dealership.1 However, the chance to sell a VSC doesn’t need to end when a customer leaves your store. With Zurich’s multi-channel Direct Marketing program, those missed opportunities can turn into a sales success story.

Dealership-branded, data-driven, targeted marketing for VSC sales

Working with a program administrator specializing in direct-to-consumer sales, our Direct Marketing program connects with customers through several stages to inform them of the benefits of vehicle protection products in managing unexpected repairs. Here’s how the process works:

open envelope pictogram

Dealer-branded direct mail

We may live in an increasingly digital world, but direct mail performs better than email and many other digital channels in both response rates and ROI (return on investment).2 With Zurich’s Direct Marketing program, customers are sent dealer-branded, physical mail that explains vehicle protection options available to them and also shows the average repair costs for components that can fail without warning.
telephone pictogram

Dealer-branded call center and fulfillment kit

When customers respond to the direct marketing offer and call the phone number on the letter, the call center agent responds to their inquiries as an extension of the dealership. It’s a personal touch that helps reinforce positive feelings about your business to aid in customer retention. If the caller opts to buy a VSC, the contract is completed and the dealer-branded fulfillment kit is mailed the next day, including a letter congratulating the recipient on their purchase.
file cabinet pictogram

Follow-ups for undecided or declining customers

If the caller wants more time to consider a VSC purchase, an email is sent with pricing, payment options and additional information. If a caller decides not to purchase a VSC, the call center marks them in their system for future outreach.

Renewals and additional F&I revenue potential

Our Direct Marketing program isn’t just for new customers. The steps above can also be used to reach customers with expiring contracts, helping spur renewals. The program can help foster an ongoing customer-dealer relationship that will benefit your business for years to come.

Walk-in sales opportunities

One of the extra benefits that some dealers enrolled in our Direct Marketing program have reported is customers sent the direct mail letter coming back to the dealership to finalize the VSC sale instead of through the call center. When this occurs, the dealership retains the entire sale at full commission.

Let Zurich’s no-cost Direct Marketing program help drive revenue for your dealership. Request a demonstration today.

Direct Marketing is just one part of The Zurich Advantage. Find out more.

 

1. Durkin, Thomas A., Gregory Elliehausen, and Thomas W. Miller, Jr. “Service Contracts on Vehicle Purchases: Findings from a New Survey.” 22 June 2023.
2. Carroll, Kevin. “Why It’s Time to Dust Off the Direct Mail Marketing Strategy.” Built In. 31 May 2023.

3 people at dealership

Automotive Resource Hub

Check out our collection of articles, webinars, podcasts and much more to assist you with your business. These resources can help you navigate and improve within the ever-changing and evolving automotive industry.