The auto industry is changing. We live in a subscription economy and customers love paying subscriptions for services. Subscriptions are budget friendly and easy to understand. If your shop is offering services that require long term maintenance like oil changes, tire rotation and other maintenance services, then creating an auto membership program will be the greatest asset in your business.
What is an Auto Membership Plan?
The easiest way for me to explain this to you is to show you an example. See image below:
A membership program creates a loyalty system, cash flow system and expansion revenue system with your customers. Your customers will pay a monthly or yearly subscription fee to get the benefits and discounts from the above plan example.
This makes is very simple to attract and retain customers to your shop. It is VERY expensive to acquire new customers so the smartest and most efficient way to build your business is to retain existing customers and a membership program is the best tool to help your shop achieve this.
Starting an auto membership pans and offering it to your customers will allow your shop to build predictable recurring revenue, increase customer lotalty and give your team a way to expand upsells by 2X.
Members buy more.
Imagine if you sign up:
- 100 customers @ $35/mo = $3,500/mo
- 350 customers @ $35/mo = $12,250/mo
- 1,000 customers @ $35/mo = $35,000/mo
- 5,000 customers @ $35/mo = $175,000/mo
Check out this image below. This is live example of an auto shop who has sold over 1,000 memberships and has a monthly revenue stream of $37,000/mo that comes in whether they work on cars or not. How would this effect your shop?
If you haven’t started an auto membership plan, now is the time to create recurring revenue and a loyalty system. Contact the Volcanic team to learn how our platform can help you create and manage your membership plan.