Initial Results Show $62 Avg. Service Revenue Lift Per Customer Annually
SAN FRANCISCO, Jan. 25, 2019 /PRNewswire/ -- Carfax has launched Carfax for Life, a program that helps dealerships earn loyal customers who only give their business to the same dealer. Creating these lifetime customers – someone who uses the same dealership to buy a car, have it serviced repeatedly, and sell it back – makes it easier for dealers to contend with growing competition for them. A pilot program with hundreds of dealers nationwide shows that Carfax for Life raises service revenues by $62 on average per customer annually.
Carfax for Life rewards sales and service customers who remain loyal to the same dealership. The program's benefits – which include giving customers free, unlimited access to their vehicle's Carfax Report and service reminders from Carfax that send customers back to the dealership saved as their 'favorite' – help increase customer retention and service revenue, and boost the dealership's reputation.
"In the 90 days from when we started on the Carfax for Life program, we went from 80 to almost 2,000 customers who favorited our service department," said Simon Fields, GSM at Lexus of Louisville, a Carfax for Life pilot dealer. "It connects us with the customer at times when they're not even thinking about us. As Carfax for Life continues to grow, we're excited to see what will come out of buying and selling cars from our service drive. The transparency of the program takes the guesswork out of all aspects of our used car operations."
Timely, accurate service reminders from Carfax and their favorite dealership make customers 21% more likely to come back for service and also have their car serviced more often. The result is a larger number of loyal service customers and higher revenue for the dealership – $62 per customer annually, on average.
Most people trust online reviews as much as a personal recommendation, according to recent research. Consumers also trust Carfax, and Carfax for Life dealers can use that trust to boost their online reputation. Following each service visit, Carfax invites customers to rate and review their service experience at the dealership. These verified customer reviews of Carfax for Life dealers appear in Google and on the Carfax Report to help attract new customers.
"We work hard finding new ways to deliver maximum value to Carfax dealers," said Bill Eager, vice president of Carfax. "Dealers now can leverage our brand even further to generate potentially thousands of dollars in additional revenue and build a legion of loyal customers. As Carfax for Life continues to evolve in the coming months, participating dealers will have more opportunities to connect with customers and keep them in their sales and service cycle for life."
Carfax, a unit of IHS Markit (INFO), is trusted by the automotive industry to help acquire, advertise, retail and service used cars with innovative solutions powered by Carfax vehicle history information. The expert in vehicle history since 1984, Carfax provides exclusive solutions like Carfax Used Car Listings, myCarfax, Carfax History-Based Value and the flagship Carfax® Vehicle History Report™ that build consumer confidence. Carfax owns the world's largest vehicle history database and is a nationally recognized top workplace by The Washington Post and Glassdoor.com. Become a Carfax Advantage™ dealer at www.carfaxonline.com or call 888-788-7715. Based in London, IHS Markit is a world leader in critical information, analytics and solutions.
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