1. Why building used car
service plans matters
Service plans continue to become a
more important part of the retention
model for many dealers. New car
penetration continues to rise, in part
supported by manufacturer initiatives.
However, the big opportunity for many
dealers is in their used car operations.
Customers buying a new car typically
display greater dealer loyalty. This is
enhanced by the growth of PCP finance.
However, used car buyers are not as
loyal, either to brand or dealer. Once
a car hits the three-year age bracket,
research reveals that aftersales activity
with the franchised arena also drops off
rapidly. Service plans can address this.
What action should dealers take?
■ Develop a clear dealer offer for used
cars.
■ Measure the used car service plan
activity within used car sales and set
stretch targets.
■ Ensure sales executives are trained
to integrate service plan awareness
and value into the process of helping
customers to select the right car.
■ When a customer books their car
in for a service – check if they have a
T
hank you to the many dealers
who have once again voted
for EMaC as the AM Dealer
Recommended service
plan provider for 2015. We
appreciate your support.
At EMaC, we never take our dealer
customers’ support for granted. In
2014, the business celebrated its 10th
anniversary and it was another record
year, but we have not taken our foot off
the accelerator. Throughout the year,
we announced a series of innovations
and developments; the all-new E.volve
technology platform, our partnership
with the NFDA and a series of product
improvements all designed to help
enhance the value of service plans.
Above all, we continued to invest in
Team EMaC.
Our approach to service plans is a
distinctive one. We have great software,
but it is our people who make the
greatest difference. Our unique service-
led approach works. The team is helping
dealers in the showroom with training
and planning and our support team is
on hand to help dealer customers.
Every month, we save thousands
of would-be cancellations, extend
hundreds of agreements and resolve
countless questions and requests. Our
team lightens the load for the showroom,
leaving you to focus upon face-to-face
contact. It is a unique and total service-
led ethos. It is our dealers who tell us
consistently how effective this is.
Into 2015, we are already well on track
for our next series of announcements
with even more plans to make an even
more positive difference to our dealer
customers. It will
be another
exciting year
of progress
and we
are looking
forward to it.
Best wishes,
Angela Barrow,
CEO
Enhancing the value of se
EMaC is preparing to give its dealer customers another exciting year of in
ww
Advertisement feature Service plans
service plan. If they do not, introduce the
concept and support it with appropriate
explanatory marketing material.
EMaC can help with all of the above.
Some dealers believe used car service
plans should be sold at the service desk,
not by sales. All the evidence points to
the point of sale, either by a salesperson
or a business manager, as being the best
place. Sales at the service desk are very
much the secondary opportunity.
The benefits of an effective
service plan programme
Service plans represent an opportunity
for dealers to help their customers and
thereby develop a long-term rapport and
business relationship. Success of the plan
is not as much about its initial value, as it
is about its longevity and the impact it has
on retention and absorption.
With a well considered service plan
and the right level of ongoing customer
care, dealers can make a real difference
to their bottom line. To achieve this
success, EMaC is on hand to develop
the sales experience in the showroom
and to enhance the customer experience
after the sale, while also minimising
cancellations and proactively extending
agreements where appropriate.

2. ervice plans
nnovation and service-led excellence
ww.emac.ltd.uk Call the Dealer Support Team on: 01270 507 566 Email: support@emac.ltd.uk
EMaC in numbers
■ 1.75 million – the number of service
plans managed to date by EMaC.
■ £814m worth of services are
currently scheduled.
■ £364,383 – the daily average paid to
dealers for servicing work.
■ 3,500 service plan enquiries are
managed by EMaC every day on
behalf of dealers.
■ 68% of customers contacted by
EMaC at the end of their agreement
extend their plan.
■ 17,500 – hours of dealer training
undertaken in the year to September
2014 with sales executives, business
mangers, service advisers and finance
team members.
■ 3.8 seconds – the
average
time it takes a service plan customer
to get through to an EMaC expert by
telephone.
■ 100% – EMaC is completely focused
on service plans.
DEALERRECOMMENDED
2015
SERV
ICE
PLANS
What is the best agreement length?
With PCP finance agreements proving
popular with customers, it makes sense
to match service plan length to the
finance agreement or change cycle.
Typically, this will be three years.
Longer periods can erode aftersales
margin and they are also more likely to
be cancelled by the customer. EMaC’s
commercial manager, Nathan Cooper,
explains: “Nothing is earned from a
service plan until the service actually
happens. Consistently, five-year plans
demonstrate the highest likelihood of
customer cancellation and only a small
percentage ever run their full course.
While it can be exciting to reflect on the
total sale price of a five-year plan, the
reality is that this measurement could be
very misleading to the final outcome.”
The inflation-proofing benefit of a
service plan is attractive to customers
and is an important part of the
package. Nonetheless, EMaC believes
that inflation-proofing a plan for five
years will have a detrimental effect on
aftersales margin further down the line.
“We are strong supporters of a three-
year service plan offer. If a customer
does get to the end of their agreement,
the EMaC team will endeavour to
contact them and offer a plan extension
at the prevailing workshop rates. It is an
approach that works very effectively,”
says Cooper.
EMaC has developed a “best practice”
series to help dealers develop their
service plan activity. To receive your
copy, email support@emac.ltd.uk.