Many companies that sell extended car warranties and vehicle service contracts compete based on price because there isn’t much product differentiation in that market segment. Automobile Protection Corp. — APCO for short — bases its value proposition on customer service.
APCO, led by CEO Larry Dorfman, provides extended car warranties under its EasyCare brand, as well as service contracts for new and used vehicles, and the company prides itself on not just offering a product that auto dealers can resell to their customers but going beyond that by helping dealers improve their customers’ satisfaction with a process of buying and owning their vehicles that APCO terms its “EasyCare Experience.”
While many of APCO’s competitors focus on only one profit center within the dealership — finance/insurance — APCO provides training and marketing materials for all six profit centers within the dealership. The company provides on-site training at the dealership, virtual training and conferences at its corporate headquarters. This not only helps APCO’s dealers increase revenue, it gives the company opportunities to serve its dealers’ customers at multiple points of contact.
When the customer has a positive experience with one of APCO’s products, it increases their satisfaction with the dealership that issued the product. Companies that complete in APCO’s segment as low-cost leaders may earn their dealers more profit on the initial sale of the contract, but if their coverage or service fails to meet customer expectations, that sometimes translates into customer churn.
“The service APCO provides is critical in helping us retain our valued customers,” says Mark Gulbrandson, CEO of the Apple Auto Group in Minnesota’s Twin Cities. “Nothing is more important to us than customer satisfaction, and APCO is a partner that understands that. Their EasyCare products allow us to improve the experience of purchasing and owning a vehicle.”
How to reach: Automobile Protection Corp., (678) 225-1000 or www.easycare.com