SAN RAMON, Calif., January 25, 2022 /PRNewswire/ — An estimated 100 million US households are signed up for subscription programs that typically focus on music, movies, fitness and food. While subscription services are becoming ubiquitous, until now there has never been a subscription model that allows consumers to keep one of their most expensive investments: their automobile. Seeing this need, Performance Group launched UltraCare Plus subscription maintenance for car dealerships to overturn the concept of traditional “prepaid maintenance”. The program gives dealers the ability to sell fully customized, auto-renewing vehicle maintenance subscriptions to their sales and service customers.

Dealerships currently using UltraCare Plus are seeing significant and accelerated annual revenue growth from their program, with more than 72% of their subscribers renewing for additional terms. Due to the auto-renewal model, there is a cumulative effect on service visits and dealer revenue.

Today’s consumers, on average, already have nine active subscriptions and are strongly embracing the subscription lifestyle. In fact, Lockhart Cadillac in Indiana is seeing significant uptake of its Lockhart Unlimited subscription maintenance program, where sales and service customers can subscribe to oil changes, tire rotations and inspections for just $109 annually.

“UltraCare Plus is a game-changer for us,” said Corey Lockhart, owner of Lockhart Auto Group. “This will literally double our customer payment revenue in 36 months. This program creates a very predictable flow of repeat customers – and more importantly, revenue,” he added.

By bundling a basic maintenance subscription with each used vehicle, Lockhart has also increased its used service retention from less than 15% to over 65% since the program’s inception. With a 78% renewal rate on annual subscriptions, they are seeing customer paid service visits more than double from last year, generating more $900,000 revenue from the UltraCare Plus program to date. Due to the cumulative nature of the program from automatic subscription renewals, the profit will almost quadruple to reach $3.5M in the next two years.

“Consumers today are very receptive to subscription-based services,” said Jeff Shenk of the Performance Group. “This ‘set it and forget it’ mindset is fueling the double-digit growth in service visits and upsell revenue that our customers are experiencing. When a dealership can sell plans like an easy upsell in the service path that is both attractive and affordable to consumers is a no-brainer – and a win-win situation for both,” Shenk added.

Dealers interested in finding out what a subscription maintenance program can do for their store can visit ultracareplus.com and enter a few data points for a custom ROI calculation.

UltraCare Plus subscription maintenance is now available exclusively from Performance Group Inc. by calling 800-608-2080 or emailing [email protected]

ABOUT THE PERFORMANCE GROUP
Performance Group is a technology company that creates and operates fully customizable dealer loyalty, prepaid maintenance, service marketing, employee retention, sales channel incentives and recall management programs for the industry automobile. Hundreds of franchise dealers and some of today’s top OEMs use their intuitive, cloud-based loyalty solutions to increase dealer profitability and to grow and maintain their valuable retail customer relationships.

Media Contact:

Jeff Shenk
800-608-2080
[email protected]

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SOURCE Performance Package

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