We often talk about how a Shared Mobility platform can open up many new opportunities, and subscription is one that is ripe for the picking.
Subscription services have been out for a while and enable the customer to benefit from “the right car at the right time” – a luxury car to impress, a pick-up for hauling, and a minivan for unexpected family visits – all available whenever you need it. And with the recent pandemic impacting the current state of the economy, the car-buying public is becoming more hesitant to commit to a vehicle purchase or even to a multi-year lease.
For dealers, it has the benefit of supplying a vehicle to a customer regularly at a no-haggle price point. This means that the customer’s ‘joy’ of a new car happens much more often, with none of the customer experience problems associated with a traditional vehicle purchase.
There’s a downside to all this convenience, and that’s cost. Having to keep up a fleet of vehicles for every customer’s whim on short notice is a logistical challenge. Customers balk at a price point that is significantly higher than a monthly payment, even if they are already paying most of the difference in insurance, maintenance, and vehicle registration fees.
Interestingly, many subscription operators have found that after customers try a few vehicles, they settle into one that they like, with occasional changes on an as-needed basis. Using this thought suggests dealers can offer customers occasional use of a vehicle that they might need or want to try. As an example, $150 a month could buy four days of vehicle use a month – perfect for an occasional need of a pickup or minivan, to try out the latest model, or a service loaner.
It’s very easy to imagine that such a subscription package could be sold in the business office as part of a customer’s payment on a new vehicle. A customer could buy the sports car they always wanted, yet remain guilt-free when practical realities call. Or the reverse – the minivan owner can relive their sports car dreams. A subscription package like this could deliver a real customer benefit that is exciting and practical.
Benefits for the dealership are numerous:
- Customers come into the dealership regularly, increasing loyalty
- Customers are periodically test-driving new vehicles on their own volition, planting seeds for the next purchase
- Dealers can easily integrate a subscription program into an existing Shared Mobility operation
- Subscription payments equal regular cash flow for dealer operations
Learn how you can use Shared Mobility to strengthen your dealerships retail opportunities, download “A SWOT analysis for dealers.” Or contact our expert team at Ridecell directly to understand more.
Author: Diptii Tiiku, Senior Director, Corporate Marketing, Ridecell