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Better service, better plan

How Toyota gains customer loyalty faced with competition from 56 other OEMs…

In 2010 Innovation Group began a focused drive to support and enhance Toyota South Africa’s customer retention across 200 dealerships. Extended warranty and service plan products were structured specifically to Toyota’s requirements, backed by our systems integration and admin support, making them more effective and more competitive price-wise. We introduced sales support by providing dedicated relationship managers responsible for the entire Toyota dealer network, plus a dedicated telesales channel to provide a secondary source of sales.

The benefit for Toyota has been enormous:

  • Service volumes grew by 12% from 2013 to 2016
  • Higher retention levels
  • As at September 2016, no less than 8.6% of units in operation have an extended service plan, and 15.6% have an extended warranty
  • Increased sale of Toyota’s own second-hand parts

But it goes further. Toyota keeps better control of its brand experience in a fiercely competitive environment that sees 57 different OEMs and 1500 derivatives battling for attention. Toyota’s warranty offer forms a key element of the differentiation that helps it retain customers.

Innovation Group offers this kind of support to our clients all over the world. For example, a major customer of EMaC, our service plan business in the UK, has steadily grown its bank of service plans with our support. In September 2016 alone they saw over 12,000 customers return to their dealerships to redeem a pre-paid service – a 21% increase over September 2015. This delivered over £1.5m in service revenue.

And the benefits for a medium-sized group with dealerships in around 15 locations that moved to EMaC in 2013 are equally impressive:

  • Huge growth: from 2,000 to 8,000 plans a year in three years
  • A live book of over 22,000 customers all scheduled to return over the coming 12 months to redeem a service
  • Increased sales as dealer staff take advantage of this regular source of showroom traffic.

Trust Innovation Group to take it beyond.

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