Mazda launches prepaid scheduled maintenance program to retain more customers

Article by Christian A., on July 4, 2011

In order to retain more customers, Mazda North American Operations launched a prepaid scheduled maintenance program for those who purchased a new car or used a Mazda from the 2007 model year or later. Dubbed as the Mazda Total Advantage, the plan covers factory-scheduled maintenance. It is available in increments of one to five years.

The retention of its customers has been a struggle for the company, which ranked 21st out of 34 brands in the 2010 Customer Retention Study of J.D. Power and Associates.

Only 37 percent of its clients returned to the brand for their next purchase, which is way below the industry average of 48 percent.

Around 50 percent of Mazda owners have maintenance work performed at authorized dealerships, according to Michael Jennings, who is manager of dealer service process improvement for the company. With the prepaid plan, the customers could save as much as 20 percent versus paying for maintenance work a la carte.

The costs will vary by dealer, the vehicle, and the length of the contract, Jennings disclosed. In addition, customers can roll the cost of the prepaid maintenance into car purchases financed by Mazda Capital Services.

Mazda’s U.S. sales through the first half of the year increased to 122,379 units, which is a 6 percent growth over the same period last year. Total sales in the market increased by 13 percent.

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