Loyalty programs, done well, really work!
Customer Loyalty Programs that Really Work
Numerous studies have shown that loyalty programs, when done well, make a big difference for the company. We’ve blogged about several of them already. The catch, of course, is that – like anything else – they need to be handled correctly to be worthwhile. An article in Business Insider lists aspects that these programs need to have to be successful.
The first is to “integrate loyalty into the full experience.” Your program shouldn’t be something that feels like an afterthought or that requires plenty of extra unnecessary-seeming steps for the consumer.
Another is to “Solve customer and industry pain points.” They refer to Amazon’s highly successful Prime program where loyal users get free two-day shipping, free digital content and more. They’ve identified pain points (having to wait lengthy amounts of times for books and other products, costly shipping fees and more) and dealt with them effectively. And, although “Prime’s stand-alone profitability is a closely guarded secret, it is estimated that members spend over four times more with Amazon than non-members.” Can you imagine if your loyal customers spent over four times more at your dealership? Another recommendation is to use the data collected from your program to target customers in the most personalized way possible, just like Amazon does.
We also took a look at an article at HubSpot that discusses how to maximize loyalty program benefits. One strategy was to also include non-monetary programs – and, when you do, make sure they are structured around your customers’ values. There is nothing wrong with providing discounts and other monetary rewards! Customers definitely appreciate them. But, when you go beyond that, then it’s crucial to make sure that the program meshes with your customers’ points of view and what matters to them.
The example they used was Patagonia, an outdoor apparel company whose clients value eco-friendly living. So, Patagonia partnered with eBay to create a program in which they could resell their Patagonia clothing that they no longer wear. This program “builds on Patagonia’s brand of sustainability and creating a high-quality product. Plus, it matches perfectly with the company’s target audience by providing a value they know customers really care about.” What really matters to your dealership’s customers?
Automotive CRM Software Provides Insights You Need
Before you can target your loyalty programs to your customer base, you need to have a clear understanding of those customers! That’s where Flexstat® comes in. This proprietary customer management system provides you with the insights you need to laser-target your customer base. Find more information about our automotive CRM software here.
With that business intelligence, you can then craft the dealer loyalty program that makes sense for you! Contact us online or call 302-696-6000 today.