Weir Canyon Honda is a shining example of what can be achieved through a strong relationship with Honda Financial Services (HFS). The seven-time Council of Excellence award-winning store recently rolled out a new retention program. The program is the result of a collaboration between Mike Russell, the store’s general manager, and Andrew Clarke, American Honda Finance Corporation (AHFC) dealer relations manager.
American Honda Motor Co., Inc., offers a two-year Honda Service Pass with the purchase of a 2023 vehicle, and Weir Canyon Honda is extending an additional year of Honda Care Sentinel Services at no cost. Advertised as “a year on Weir,†the program gives buyers of brand-new vehicles a total of three years of complimentary service, which means three years of reasons to return to the store.
“It seems like everyone I talk to at HFS has good ideas, like this promotion that Andrew came up with,†says Russell, who has worked at the Anaheim, California, dealership for 21 years. “The long-term goal is retaining our customer base by bringing them back to our service department time and time again. I thought it sounded great, so we put it into motion, and so far, the customers have been super happy with it.â€
Russell says the unique promotion offers three benefits.
Through HFS’s performance-based allowance (PBA) program, dealers can earn rewards for selling Honda Care products. Enrolling customers in Sentinel Services, whether they pay or not, generates revenue for the store.
“We give away that year of Sentinel Services, but by the time we account for the PBA increase, we only pay a portion of the cost,†Russell says. “When we look ahead to the possible long-term benefit of retaining customers by bringing them back to us for service, it’s just a minimal expense.â€
Giving away a free year of Sentinel Services has also made it easier for the finance department to upsell additional years of coverage. Clarke says that in the first three months of the program, which started in May 2023, the store averaged a 40% upsell on Honda Care Sentinel Services, compared with the 10% the store achieved in Q1 of 2023.
“Customers can buy up to four years of Sentinel Services, but when they already get one year for free, it’s much easier to sell additional years,†he says. “There’s also been an uptick in sales of other Honda Care maintenance products.â€
Higher PBA and more upselling opportunities are short-term benefits, but Clarke and Russell are looking ahead to an increase in customer retention.
“The manufacturer is marketing to customers not just for the vehicle that they purchased, but also for the products that they purchased,†Russell says. “Selling or giving away more vehicle service contracts keeps more lines of communication open, and it keeps customers coming back to our store for service, which paves the way for the future.â€
Clarke also sees service as a key retention tool. “When you have multiple service contracts, you see the customer more often,†he says. “You can build a relationship with them, and that helps sell the next vehicle.â€
It’s going to be some time before Weir Canyon Honda can measure the long-term benefits of “a year on Weir.†Meanwhile, Russell is trying other strategies and promotions to help get customers back into the store.
“For me, it’s a constant learning process. I’ve been doing this for a long time, but I can still learn something new every day,†Russell says. “There are a lot of things that, if you just listen, you can put into play.â€
Two examples of these promotions are the store’s business development center, which regularly contacts customers with offers, and its Match or Beat tire program, which gives customers confidence that Weir Canyon Honda’s tire prices are worth the trip to the service center.
“It’s a fluid market, and we’re constantly changing to stay up to date with the competition and our customers’ expectations,†Russell says. “For us, the job starts when the customer says yes to buying a vehicle. That’s when we step up and take care of all their parts and service needs, so we can hopefully retain them for future sales.â€
