Building Customer Loyalty

How Selling Service Contracts Builds Customer Loyalty & Boosts Service Drive Revenue

In today’s competitive market, customer retention is just as important as closing the initial sale. Offering vehicle service contracts (VSCs) isn’t just an added perk—it’s a proven way to build long-term customer loyalty while driving revenue in your service department.

Why Service Contracts Keep Customers Coming Back

A service contract keeps customers engaged with your dealership long after they drive off the lot. Instead of seeking repairs at an independent shop, they return to your service drive for covered repairs and maintenance, strengthening their relationship with your dealership. This leads to:

• Higher retention rates: Customers with a service contract are far more likely to return for future purchases. Parabolic provides lifecycle communications to encourage existing contract holders to

• Consistent service revenue: More visits mean more upsell opportunities on routine maintenance and additional repairs.

• Stronger brand trust: Customers feel confident knowing their repairs are handled by certified technicians using OEM parts.

Turning Service Contracts Into a Revenue Generator

While selling service contracts delivers your customers peace of mind, it’s also a profit center for your dealership. Every contract sold increases fixed operations revenue, generating consistent business for your service team. Key benefits include:

• Increased parts & labor sales: Even with covered repairs, customers often approve additional maintenance recommendations.

• Boosted service drive traffic: Regular visits mean more chances to provide exceptional service and upsell opportunities.

• Translate experience to sales: Loyal customers receiving the repair experience they deserve are more likely to trade-in their vehicles and purchase new vehicles.

No Disruption to Your Sales Process

The best time to sell a service contract is at the time of purchase—when customers are already thinking about protecting their investment. However, there are countless opportunities to sell service contracts after the point of sale, yet many dealerships do not have the tools in place to pull it off. Parabolic makes this process easy by seamlessly integrating with your DMS, and handling the entire sales process for all customers after the point-of-sale. No operational changes required. No training needed. No disruption.

Drive Loyalty & Long-Term Profitability

By partnering with Parabolic, you’re not just protecting more of your customers, you’re securing repeat business, higher service drive revenue, and long-term dealership growth.

Want to maximize your service contract sales? Contact us today to see how Parabolic Auto can help you streamline your process and keep customers coming back for years to come.