Direct Marketing
Improving your advantage
New enhancements to Zurich Advantage program make it easier to grab F&I opportunities.
Every dealer wants their customers to see the benefits of purchasing a vehicle service contract (VSC) at the time of vehicle sale. However, a poll last year indicated that, at the time of vehicle sale, just 29% of buyers purchased a VSC when they bought a vehicle at a dealership.1
Zurich offers a Direct Marketing Program precisely to give dealerships another chance at the 71% of missed opportunities. It’s proven to be a successful way to reach customers who initially declined to buy a VSC and provides an additional revenue stream beyond the F&I office.
Zurich’s Direct Marketing program is available to dealer customers at no cost. The dealership receives a commission for each contract sold through the program and the contracts are eligible for reinsurance. Working with a program administrator specializing in direct-to-consumer sales, Zurich facilitates dealers’ outreach to customers via targeted, data-driven marketing. The program includes:
Dealer-branded direct mail
A recent study shows market-tested, physical mail outperforms email in response rates.2 Perhaps that’s not surprising in an era of digital information overload and overflowing email inboxes. Letters with your dealership’s brand front and center are sent to customers and include a phone number for interested recipients to get more information. Our recent data shows that among those who make that call, approximately 34% will buy coverage.
Dealer-branded call center and fulfillment kit
If a customer calls to find out more after receiving the letter, the call center functions as an extension of the dealership, giving customers a more personalized interaction. If they make a purchase, the fulfillment kit is also dealership-branded to complement the customized experience. If customers say they need more time to consider an offer, they will be emailed pricing, payment options and resources to learn more about the product.
Follow-ups: Keeping the door open
If a customer declines an offer, the call center marks them in their system for future outreach. Sometimes, all it takes is one expensive repair shop visit to make a customer rethink the need for additional vehicle protection products.
Added benefits
- Potential walk-in sales: While sales can be finalized via the call center, many dealerships participating in the Zurich Direct Marketing Program see customers return to the dealership — letter in hand — to finalize the VSC sale. In these situations, the dealer retains the entire sale at full commission.
- Renewals: Direct Marketing can also be a great tool to reach customers with expiring VSCs for potential renewals. We offer the same direct mail experience for renewal customers as well.
- Ease of use: As our program administrator manages the marketing, dealers can enjoy “hands-off” service, letting them devote more time and resources to other business priorities.
New enhancements
This spring, Zurich launched enhancements and simplifications to Direct Marketing that make this valuable program even more efficient and user-friendly. Here’s a quick overview of some of the changes:
- Less enrollment paperwork
- Eliminated the need to reconcile funding and remit to Zurich
- Dealership fully earns commission for each contract sold, regardless of any cancellations that occur post-commission funding
- Interface with the third-party payment provider eliminated
Zurich’s Direct Marketing program can be an integral part of driving revenue for your dealership and improving customer loyalty and retention.
Even in the best of circumstances, customers can feel overwhelmed at the time of an auto purchase. It’s a significant investment, after all. In that moment, they may not give as full consideration as needed for protection products that can benefit them in the long run.
But consumers do understand that vehicles are an ongoing expenditure, so conveying how VSCs can ultimately reduce the overall cost of vehicle ownership is an important message to reinforce. Zurich’s Direct Marketing Program can help you share that message and keep your customers returning to your dealership.
- Durkin, Thomas A., Gregory Elliehausen, and Thomas W. Miller, Jr. “Service Contracts on Vehicle Purchases: Findings from a New Survey.” 22 June 2023.
- “Direct Mail Advertising Global Market Report 2023.” Report Linker. 15 February 2023.
