SiriusXM Ramps Up Used Car Initiative With AutoManager
SiriusXM today announced that it is now working with AutoManager, which has 4,600 auto dealers using its dealer management products, to easily enroll independent and franchise dealers to participate in the SiriusXM Pre-Owned Vehicle Program. Essentially the company is outsourcing this project to a company that, in theory, has the contacts and capability to produce better than the current system deployed by SiriusXM.
Auto dealerships utilizing AutoManager’s DeskManager and WebManager products can enroll in the SiriusXM Pre-Owned Vehicle Program so they can demonstrate SiriusXM during test drives. Customers purchasing any pre-owned vehicle with a factory-installed satellite radio receive a three-month SiriusXM subscription.
The ability to demonstrate satellite radio could help bolster sales and bring the conversion rate up after a free trial. The key here still rests with the car sales-people to see satellite radio as a selling point. This has been an ongoing challenge for SiriusXM for years. AutoManager can likely streamline the sign-up process, but educating the “boots-on-the-ground” salesmen is still what matters most.
The integration of the SiriusXM Pre-Owned Vehicle Program within AutoManager’s dealer management products, including its mobile application, allows participating dealers to easily identify and activate vehicles equipped with SiriusXM. What it does not do is offer incentive to use satellite radio as a selling point.
In most cases, satellite radio is not among the top requirements of a used car buyer. If you have satellite radio and love it, you will find this program to be great. If you need to be “sold” on the concept of satellite radio, then AutoManger may well fall short of your expectations.
Streamlining the demonstration and sign-up process is a great step in the right direction, but from an investment standpoint I do not see this as being a huge catalyst. File under “good news”, “net positive”, or “moving in the right directions”. Do not file under “instant subs”, “revenue generator”, or “catalyst”. Overall, this is likely a decent thing to do, but not something that will move the needle of the equity. AutoManager is promoting the deal on their website.
Spencer-
” The ability to demonstrate satellite radio could help bolster sales and bring the conversion rate up after a free trial.”
What are some other initiatives the company can take, in your opinion, to lock in or improve conversion rates? It seems over time as penetration increases that conversion slowly decreases in an inverse sort of relationship. Numbers like these can be an eye-sore even when the company reports otherwise stellar metrics. I’m just curious what you feel could be some good steps to take that are well beyond “moving in the right direction.”
If you’d care to share your thoughts, that would be most welcome and thank you in advance! 🙂
I know you asked Spencer but, I’ll share my thoughts…
1. They can improve their awful customer service.
2. They can stop keeping content exclusive based on Sirius vs. XM
3. Make the service more reliable.
If you put the quality of your product first, subscribers will follow.
It is a challenge and will continue to be. They are beginning to run out of options. Pricing could come into play in the years ahead
Hey spencer , what do you think about today’s volume and move down ..?? Spencer , I love your site , but on on a day like today , what I pay for is your view on Siri … Not Arena… Johnnyblues
Johnny….
I posted an article today.
https://siriusbuzz.com/siriusxm-volume-slowing-down-bottom.php
You have to give me a little time to get things published.
I’am sorry spencer , I look so forward to your guidance , I was just a little jumpy last night … Spencer , you have been on the money with your calls … Sometimes I wish you were not …LOL …. But I have to give you a lot of credit how you have called these calls on Siri… I just wish I traded them as you called them … As they say coulda woulda and should have … But still spencer , great work ….Johnny
Johnny…
No woriies….Cheers
Don’t feel bad you can add more shares since this stock is ready to run up now that the downside trend is over
you realistically think SXM has any big new potential growth opportunities? Even w/ the integrated car and the purchase they made last year, not much seems to be happening. Beyond the norm, I’m having trouble seeing any real catalyst for growth.
do you have any ideas/insights into what may have a positive impact on the share price? It’s been killed the past 6 months.
tia