IHS Markit Ltd.’s (INFO - Free Report) unit, Carfax, recently announced that it is gearing up with new offers for the Nissan and Infiniti Certified Pre-Owned (CPO) programs to increase customer retention at certified dealerships.
Nissan and Infiniti CPO buyers can now get enrolled in the free myCarfax service, which provides service reminders and recall notifications to customers for timely servicing of vehicles at their respective selling dealer's service department. The selling dealer is also marked as the customer's favorite shop within myCarfax.
Nissan and Infiniti CPO buyers will also receive free copies of their vehicle's Carfax Vehicle History Report and Carfax Buyback Guarantee certificate from the dealer. All Nissan and Infiniti CPO vehicles are listed for sale with free Carfax Reports on carfax.com. More than 70% of all Nissan and Infiniti dealerships are part of the myCarfax Service Shop program.
Nissan North America is the first customer to enroll in myCarfax as part of the CPO purchase process.
With Carfax’s longstanding expertise in vehicle history information, myCarfax’s services should enhance customer experience and lure customers to choose the same dealer for vehicle servicing, thereby increasing service revenues. The company’s research depicts that the chances of regular service customers purchasing their next vehicle from the same dealer is almost double.
So far this year, shares of IHS Markit have gained 19.4%, outperforming the 9.2% rise of the Zacks S&P 500 Composite Index.
Transportation Segment Likely to Benefit
We believe that the move will help IHS Markit strengthen its Transportation segment which includes Automotive, Maritime & Trade (“M&T”) and Aerospace, Defense & Security (“AD&S”) offerings.
The segment’s revenues improved 16% year over year on a reported basis and 9% organically, contributing nearly 30% to the company’s total revenues. Automotive offerings, which contribute almost 80% to the segment’s revenues, acted as the major growth catalyst.
Zacks Rank & Other Stocks to Consider
Currently, IHS Markit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader Business Services sector include Broadridge Financial Solutions (BR - Free Report) , Paychex (PAYX - Free Report) and Convergys , all carrying a Zacks Rank #2. The long-term expected earnings per share growth rate for Broadridge Financial Solutions, Paychex and Genpact is 10%, 8.2% and 7.5%, respectively.
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