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.
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.