So far 29 dealers have signed up to become trade club outlets, while details of the service programme are being finalised. Expected to be a while-you-wait type operation open to all Hyundai models up to 10 years old, the scheme promises “highly competitive pricing” to attract customers to its 150-plus authorised repairers for servicing and checks on brakes, tyres, batteries and exhausts.
Hyundai says it manages to retain about 95% of its new car customers in the first year of a car's life but this drops to 50% in the fourth year. The new service menu is the next step in the strategy to increase customer retention, which began with the introduction of a five-year warranty in 2001.
Graham Lightfoot, aftersales director, says: “The five-year warranty is designed to attract customers to the brand. These new initiatives will help us retain customers for longer.”
On the trade club side, the carmaker provides marketing materials and discounts on OE parts. In return dealers have to appoint a dedicated sales person and deliver in a Hyundai-liveried van. The Korean brand expects the scheme to increase its share of the replacement parts market to more than 50%. It has about 45% of the UK's Hyundai replacement parts market through warranty business.
Hyundai has 153 authorised UK repairers as well as two service-only sites with applications pending from a further 12 garages.
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