Benefits of loyalty programs for dealer loyalty growth
Importance of Customer Loyalty: Mind-blowing Statistics
In February 2016, Social Annex collected dozens of incredible statistics. Some show the value of customer retention (7 statistics); others focus on how customers view loyalty programs (32 statistics); or how marketers view them (5 statistics).
Although it has long been known that having long-term customers is more profitable than having to find new ones, here’s another angle on that topic: If you need to bring a new customer up to the same level of profitability as a longstanding one, the cost is 16 times as high! And, on average, a loyal customer is worth ten times the value of his or her first purchase.
This statistic shows why a loyalty program shouldn’t be an add-on or afterthought: 48% of shoppers say that businesses should work on gaining loyalty during the first purchase, calling that the most critical bonding time. And, 54 percent of consumers have increased their business with a company because of this type of program.
Seventy-five percent of US companies with these programs experience a positive ROI and 64 percent of retailers have found that these programs are the most effective ways of connecting with customers.
And, here are a few more stats to mull over:
- Loyalty programs boost overall revenue by 5-10 percent
- Members of loyalty programs spend 5-20 percent more than non-members
AccessDevelopment.com has also gathered together a large collection of stats. Here is an interesting sample:
- Consumers continue participation in these types of programs because:
- They are easy to understand (81%)
- Offers are relevant (75%)
- 86% of people who participate in these programs believe they are worth the effort
- Loyalty programs are likely to increase in effectiveness, given that 63 percent of millennials joined one within the past year (compared to 55% of the general population)
Proven Worth: Choose the Right Automotive Loyalty Program
It’s a competitive world out there, and one proven way to cut through the noise and focus attention on your dealership is through a quality automotive loyalty program. AutoAwards by Nucar Consulting has been helping dealerships grow for more than 25 years now, and we provide dealer loyalty plans where customers earn exclusive rebate points and rewards based upon customized program parameters.
Don’t wait. Talk to our specialists today about how you can consistently reward your best customers for dealer loyalty.
Ready to get started? Contact us online to discuss your own automotive loyalty program or call 302-696-6000 now!