Increasing Customer Retention at the Dealership

Background

As the Sr. UX Designer, I lead my product team through the Design Thinking process during a discovery engagement with a local dealership. The goal was to demonstrate how NEC’s Visitor Recognition product enhances the customer experience while meeting with the dealership's business objectives. This resulted in 24% increase in PPM plans and client buy-in to the solution.

Project Overview

The Challenge

The dealership sought to improve customer service retention by increasing sales of Prepaid Maintenance (PPM) plans*. Our challenge was to how demonstrate NEC’s Visitor Recognition white label product would achieve the business objective. 

*PPM plans cover a predefined period of scheduled vehicle maintenance—such as oil changes and tire rotations—based on the guidelines in the vehicle's owner’s manual

NEC’s Visitor Recognition Product

Customers pre-register their facial biometrics, check in at a kiosk upon arrival, and trigger a notification to an employee for a personalized greeting.

Research - User Interviews

I conducted interviews to understand customers sentiment on PPM plans and how they work.

Customer Interviews

Customers perceived dealership PPM plans as costly and with long service wait times and prefer fast, affordable, and professional services.

Customer Needs:

  • Avoid paying higher dealership costs.

  • Minimize the time spent getting vehicle serviced.

  • Maintain their vehicle in optimal condition.

  • Protect the value of their purchase

F&I Interviews

PPM plans are purchased during or after the F&I* phase of the vehicle purchase process and present cost-savings for customers.

PPM Plan Benefits:

  • Fixed Costs: Protects from inflationary prices.

  • Fast Service: Provides scheduled reminders.

  • Protect Vehicle Value:

    • With OEM-Certified Service Technicians, the vehicle's lifespan and resale value is extended.

Problem Definition

The research reveal that customer’s perception on PPM plans overshadowed the true benefits.

How might we help customers see PPM plans as the no-brainer option to meet their needs?

Solution Ideation

Together with my product team, we brainstormed ways to answer the problem statement (See Image B). After a few sessions and review with dealership, we had a solution.

F&I Reps would present content comparing the cost-savings of a PPM plan against the rising costs of going to vehicle repair shops over time.

Image B - Solution brainstorming

Presenting the Solution

We presented the solution to the dealership stakeholders. Using a low fidelity storyboard (See Image C) I demonstrated how the strategy and our product created an opportunity to show the benefits of PPM plan so that customers see them as a no-brainer option.

Image C - Looow fidelity storyboard depicting the strategy and desired outcome.

The Big Picture

With the presentation of the storyboard, I followed up with a process blueprint (See Image D) that demonstrated how the customer experience is supported by touch-points, back-end services, and the F&I sales reps. This helped stakeholder see the HOW of the solution.

Image D - Process Blueprint

The Impact

Using a Design Thinking approach, my team and I demonstrated how NEC’s visitor recognition (Image D) creates an opportunity to show the cost-saving benefits of PPM plans to customers while meeting business objectives.

The dealership signed up for the solution. In the 1st month, 4 plans were sold. Increasing the monthly PPM plan sales by 24%, Leading to an increase in service retention.

Image D - NEC’s Visitor Recognition table UI with the dealership’s branding.