Care by Volvo, Volvo Cars’ subscription service, has exceeded all expectations in its first year of business in the UK. Fully launched nationwide on 2 September 2020, it has already delivered more than 2,500 cars to customers keen to embrace the convenient and simple alternative it offers to traditional car ownership.
The level of demand has resulted in the service now claiming almost 15% of all Volvo retail sales, equivalent to 7% of the brand’s total UK new car sales. This is comfortably beyond the initial 5% total targeted for the service at the end of its first year.
The enthusiastic customer response reinforces Volvo’s belief that the uptake of online sales will accelerate. The company anticipates that the majority of its retail sales in the UK will be transacted online – both for retailer-assisted and direct sales – by 2025. Globally, Volvo expects all its sales to be conducted online by 2030.
Analysis of the service during the first year shows strong uptake of Volvo’s electrified models: one third (33%) of the subscriptions have been for Volvo Recharge plug-in hybrid electric (PHEV) models, while more than half (53%) of those for the best-selling XC40 compact SUV have been for plug-in hybrid electric or full battery electric (BEV) versions.
Notably, Care by Volvo is proving a highly effective tool for conquest business, with 91% of its customers being new to the Volvo brand. The past year has seen Care by Volvo applications submitted during every hour of the day, with 1-2pm on Mondays the most popular time. The process’s user-friendly design has seen the quickest application completed in just 39 seconds.
Conor Horne, UK Head of Online Sales, said: “Our service is proving perfectly in tune with the changing preferences of customers who want a quick, secure and simple process to access a new car. And it’s clear they are also drivers keen to make the switch to the new generation of electrified cars we’re bringing to the market. The results confirm that the Care by Volvo subscription service represents the future of our retail business and is helping bring new customers to our brand.”
Care by Volvo offers two types of subscription package, both designed to be a convenient and uncomplicated alternative to traditional car ownership. Care by Volvo Fixed provides cars on a three-year term, with no deposit or sign-up fee. Care by Volvo Flexible is based on an open-ended, three-month rolling contract, following an initial risk-free 30-day trial period; after that time, the customer can change their car or end their subscription with three months’ notice.
SOURCE: Volvo Cars