4 Ways to Create Customer Retention with a Loyalty Program
Understanding the reason clients are drawn to a brand is extremely vital in the introduction of a loyalty program that will line up with your business’ objectives. Loyalty programs facilitate communication and make it simpler for you to provide the experience that will create loyal customers.
Benefits of a Loyalty Program
Having loyal customers not only brings car-buyers back to a dealership for service and additional vehicle purchases, but, in addition, it provides a security blanket for maintaining long-term cash flow.
Loyalty programs increase the motivation of customers to come back from gaining rewards that entice the customer. Based on over 25 years in business, we help dealerships create an automotive loyalty rewards program to allow customers to earn exclusive rebate points and rewards.
1. Create a Loyalty Program That Is Incentive Based
Start with clarifying exactly how the loyalty program works and leads to fulfilling profit zones in other departments for the dealership. It requires the careful design and attention to the entire layout of the loyalty program.
Define the nature and value of the benefits and the ways that customers can redeem their incentives. Dealerships must ensure that their loyalty programs are incentive based to make it easy for customers to become loyal.
2. Ensure Your Loyalty Program Provides Data
An advantage of auto loyalty programs is also that they provide helpful data about customers to automotive dealerships. Beyond their data-gathering purpose, loyalty programs are supposed to entice clients by giving members-only discounts on promotion items. But how would you know what discounts and information the customer would want?
The information and data provided through the loyalty program empowers the car dealer to send information and efficient solutions to their customers to provide ongoing support from the dealership’s different departments.
Information from research demonstrated that 50 percent of customers become annoyed if businesses don’t utilize customer information (based on their data) to offer them a tailored offer or service.
3. Create Networks That Use Your Loyalty Program
When properly designed and executed, your loyalty program will yield more connections and happier clients, which then gives your auto dealership the competitive advantage. For products and services, a client may normally buy from more than one vendor, but a loyalty program may promote the customer to only buy through the dealership.
In addition, having a network of partners where customers can redeem their loyalty points can also bring more connections. AutoAwards connects local businesses into an automotive dealership’s loyalty program to focus on building business in the local area.
4. Give Your Customers a Feeling of Exclusivity
Initiative will reward your dealership by simply transitioning regular customers to card-carrying members. Providing a card membership to customers is a positive impact for both your dealership’s client retention and for customers to earn incentives at your dealership and local partners for products and services they need. An example of a loyalty program is based on points for each dollar they spend in service, they can then redeem for accessories or parts at the dealership.
A loyalty program can also have different levels that offer exclusive access to products and services, as well as tiered advantages.
By starting a rewards program with the goal of customer retention, dealers have a unique chance to establish customized touch points with customers and achieve the desired results.
Since our founding in 1991, AutoAwards has been widely recognized as the industry-leader in automotive and marine loyalty marketing, earning longstanding relationships with many of the industry’s most successful dealer groups and OEMs. AutoAwards understands the #1 predictive factor for dealer growth and profitability. Customer loyalty is the most successful way to build revenue. AutoAwards has always recognized the need for top notch, highly creative, effective loyalty strategies in large and small businesses alike. Contact us online to talk about dealer loyalty or call 302-696-6000.