In today’s competitive automotive market, offering an extended car warranty can be a significant value addition for customers and dealers. However, effectively promoting extended car warranties requires a well-thought-out marketing strategy. Here are some top strategies to ensure your extended car warranty program reaches the right audience and converts leads into loyal customers.
Using social media strategically
Your social media content should be engaging, educational, and visually appealing. Use a mix of posts, videos, infographics, and stories to highlight the benefits of extended warranties.
1. Educational posts: 43% of people learn about new products on social media. Explain what extended warranties are, how they work, and their benefits. Use simple language and compelling visuals to make the information accessible.
2. Customer testimonials: Share stories from customers who have benefited from extended warranties. 71% of people are more likely to make a purchase based on social media referrals. Real-life examples can make the advantages more tangible and relatable.
3. Behind-the-scenes (BTS) content: Demonstrate your dealership’s dedication to customer service by showcasing your service team and their skills. BTS content attracts 32% more engagement than scripted videos. It makes the brand more relatable and helps to establish trust with your customers. One example of relevant BTS content could be filming a repair that would benefit from an extended warranty to show the product’s value.
For instance, to encourage customers to consider extended warranty coverage, illustrate the car buying journey with customers who are open to participating. Emphasize the decision-making process behind selecting products and financial services that best suit their needs. Additionally, offer a glimpse into the service shop, showcasing real-life examples of how extended warranty solutions have benefited other customers and the dedicated team working hard to keep cars in pristine condition.
4. Video marketing: Videos are highly engaging and can convey information quickly and effectively. 87% of marketers report a direct increase in sales through video. Create short videos that explain the benefits of extended warranties, feature customer testimonials, or provide tips on vehicle maintenance.
Remarketing for reengagement
Social media platforms offer powerful advertising tools that allow you to target specific demographics, interests, and behaviors. You can also strategically conduct personalized outreach, segmenting based on propensity to purchase extended car warranty.
5. Highly personalized direct follow-up: 90% of consumers agree that personalization is important. Aftersales communication is a big and often over-looked opportunity for dealers. If a customer hasn’t purchased a warranty but recently bought a car or if their factory warranty is nearing its expiration, engage them directly. Personalized follow-up messages can remind them of the importance of extended coverage and offer tailored solutions that meet their needs. Positioning products like pre-paid maintenance in a personalized follow-up post-sale offer a fantastic loyalty and retention opportunity. This can be done either through a messaging app on social media or simply via email or telephone.
6. Retargeting campaigns: 77% of marketers use retargeting ads to engage consumers and with good reason. Retargeting ads target those who have visited your website or have purchased from you in the past. This highly qualified, highly engaged group with a higher propensity to purchase. For dealers looking to retarget buyers for extended warranty, retargeting ads are a great option to reach prospective and recent customers.
For prospective customers who have not yet purchased a vehicle, targeting them with messaging to educate them on the benefits of extended warranties will keep these products top of mind and allow them time to budget for them.
For customers who recently purchased a vehicle but did not purchase and extended warranty, targeting them with messaging about the long term benefits of these products and offering incentives to purchase now can have a big impact.
Strategically promoting extended warranties is a smart strategy for dealerships looking to boost sales, increase customer satisfaction, and build lasting relationships. With the right approach, you can turn extended warranty promotion into a significant advantage for your business.
