Loopit offers an innovative car subscription management platform designed specifically for dealerships. Loopit's platform provides complete end-to-end capabilities for customizing subscription packages, managing inventory, and optimizing revenue.
What Is Loopit?
Loopit is a car subscription management platform designed to help dealerships and automotive companies launch car subscriptions. It provides software and solutions to manage the entire subscription process for customers
With Loopit, dealers can create flexible subscription plans with custom terms and pricing. The Loopit platform includes:
- An admin portal to manage inventory, plans, billing, and more.
- Customer management features for onboarding, packages, accounts.
- Customizable plan builder to design subscription packages
- Capabilities to list eligible vehicles and swap vehicles.
- Billing and account management functions.
- Real-time reporting and analytics.
The user-friendly software makes it simple to administer the subscriptions, while providing convenience and flexibility for customers. Loopit offers white-label options so the program can be fully customized and branded.
Benefits of Subscriptions for Dealers
Car subscriptions represent an additional, recurring revenue stream through monthly subscription fees paid by customers. Unlike traditional purchase or lease models, subscriptions provide ongoing monthly income versus a one-time payment.
Subscriptions allow dealers to monetize their inventory in new ways. Rather than relying solely on sales or leases, dealers can generate revenue from subscribers over the life of a vehicle.
Subscriptions improve customer retention and build loyalty by providing flexible access without long-term commitments. Customers can swap vehicles periodically, incentivizing them to remain subscribers.
Dealerships have opportunities to upsell additional services like insurance, maintenance packages and concierge features as part of subscription packages.
Customizable Subscription Packages
Loopit provides a flexible subscription management platform that allows dealerships to offer custom subscription packages tailored to each customer's needs. Dealers can configure packages with customizable terms and options including:
- Length of subscription from 1 month to 24+ months
- Mileage allotments from 0 to unlimited miles per month
- Vehicle makes/models available for selection
- Frequency of vehicle swaps from 1 swap per 3 months to unlimited swaps
The platform also enables add-on features to create a bundle that provides real value to subscribers. Add-ons can include:
- Insurance coverage
- Scheduled maintenance
- Wear and tear protection
- Roadside assistance
- Satellite radio
With Loopit, dealers have complete flexibility to compose customized subscription packages that align with customer preferences. The customizable options and add-ons help increase satisfaction through a personalized car subscription experience.
Best Practices for Structuring Subscription Packages
When creating customizable subscription packages on Loopit's platform, dealerships should follow some best practices for structuring pricing and features. This helps maximize revenue while providing flexibility and value for customers.
The core components of a subscription package include:
- Base monthly fee - This covers the use of the vehicle itself. Tiers can be created based on vehicle class or model.
- Mileage allowance - Most packages include a set number of miles per month or year. Overage fees can apply if the limit is exceeded.
- Length of term - Typical terms are 1-3 months minimum with options to renew, often on a month-to-month basis.
- Vehicle swaps - Swap frequency allows customers to change vehicles within their tier, such as once per 3 months.
- Bundled features - Maintenance plans and insurance can be built into the base fee.
According to Deloitte, the average monthly subscription fee ranges from $400-1,200 depending on the vehicle tier. Dealers should take into account vehicle cost, program costs, profit margin, and market rates when pricing packages.
Allowing add-ons for additional mileage, maintenance plans, insurance, and concierge services can increase revenue. Renewal options provide flexibility for customers while securing ongoing subscription revenue.
Improving Customer Experience
Car subscriptions with Loopit can significantly enhance the customer experience for several reasons:
Flexibility and Convenience
Subscriptions allow for flexible month-to-month commitments, rather than multi-year leases. Customers can adjust their subscription as needed based on life changes. Swapping vehicles is easy, so customers always have access to the right car. According to McKinsey, over 50% of prospective subscribers value flexibility and convenience as top priorities.
Hassle Free Driving
With subscriptions, routine maintenance, insurance, and roadside assistance can all be bundled, creating a hassle-free experience. Customers can focus on driving instead of ownership duties. According to BCG, over 40% of subscribers list "hassle-free" as a top benefit.
Subscribers can access a variety of makes, models, and vehicle types through a dealership's fleet. Swapping vehicles regularly allows customers to fit the perfect car to their needs. Forbes suggests over 60% of prospective subscribers desire easy swaps.
Subscription packages and fees are clearly laid out upfront, with no haggling required. Customers understand exactly what's included and the total cost each month. According to McKinsey, transparency ranks highly for over 70% of prospective subscribers.
Premium Features and Service
Subscriptions allow access to more premium vehicles with features customers may not otherwise purchase. White glove delivery, concierge services, and membership perks can also be included. According to BCG, over 30% of subscribers are willing to pay more for premium services.
Getting Started with Loopit
The Loopit platform provides everything needed to customize packages, from flexible subscription terms to add-ons like insurance and maintenance. Dealers can configure packages with options like mileage allotments, vehicle selection, and more. Advanced swapping capabilities give customers variety while streamlining inventory management.
Throughout the onboarding and implementation, Loopit provides ongoing training and support. Their team helps optimize the usage of the platform to create the best subscription program for each dealer's business. With the combination of an intuitive platform and expert guidance, Loopit simplifies introducing and managing car subscriptions.
To learn more about getting started with Loopit's dealer partner program, request a demo today.