New Auto Dealer Preventative Maintenance Program “UltraCare” Increases Customer Loyalty and Service Retention
San Ramon, Calif. – April 12, 2010 – Performance Loyalty Group, Inc., has partnered with MediaTrac, LLC,
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 MediaTrac. “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 MediaTrac'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. MediaTrac LLC, 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.
About MediaTrac™ LLC
Headquartered in San Ramon, California, MediaTrac, LLC is a marketing technology company providing customized
frequency marketing, customer loyalty, retention and media tracking programs. The company is one of the fastest
growing, privately held firms in Northern California. For more information visit
www.media-trac.com.
