What is it Costing Your Dealership to NOT have a Dealer Rewards Program?
Driving sales via dealer rewards
How can a dealership increase customer loyalty and drive repeat business in a way to maximize profitability while minimizing costs? Examining aspects of successful loyalty programs, it is possible to create a flexible dealer rewards program that can set your dealership apart.
Below are some characteristics of successful loyalty programs in other industries:
- Using sales data: Target analyzes sales data to focus on its highest-value customers. Their RED card gives customers a 5% discount while providing repeat business and credit card interest to the company.
- Integrated experiences: Starbucks has integrated their payment system with mobile technology for a more enjoyable customer experience while providing Starbucks the ability to tailor their program to specific individuals.
- Difference between real cost and customer value: Starwoods incentivizes reward redemption during times when they have low occupancy. Their program also provides high value to customer ancillary benefits such as flexible check-in times and Internet access that come at low-cost to the hotel.
Implementing even a moderately successful program, such as those detailed above, can have a dramatic effect on your bottom line. For example, with a 15% sales customer retention rate through a dealer rewards program, a dealership with 1,050 annual vehicle sales could see approximately $1.2 million in additional profits from retained customers after 3 years.
To get started on building such a profitable program, consult with a company who knows the automotive dealership industry and has a proven track record of success, such as AutoAwards. A simple phone call could make a dramatic difference in your bottom line.