Why is Loyalty Important for a Car Dealership?
Acquiring new customers can be expensive for auto dealerships. When compared to selling to existing customers, it can cost your business 5-25x more finding new customers. This highlights the importance of customer loyalty. Existing customers also just spend more than new ones. In a recent survey, it’s been shown that existing customers spend 67% more as a member of a loyalty program. Brand loyalty in the automotive industry is a great driver of business.
How Loyal Customers Empower Your Business
In surveys, it’s shown that 82% of American adults engage in brand loyalty. Customer loyalty is often the result of a customer’s experience, satisfaction, and the value they receive from the goods and services your business provides. Obviously, companies want to deliver excellent customer service to keep them returning. It’s critical to a company’s success.
Existing customers do more to expand your business than any marketing campaign. Loyal customers can help your car dealership through word of mouth marketing. They tend to spend more with brands they’re comfortable with and want to share their experiences with family, friends and acquaintances. Customers that are referred through word of mouth are more inclined to spend than a typical new customer.
How Loyalty Programs Work for Automotive Dealerships
A good way to keep them around is a customer loyalty program. These programs work in different ways. They can give returning customers merchandise, rewards, and discounts in exchange for their brand loyalty and repeat business in the different departments within your auto dealership.
At AutoAwards, we offer your automobile dealership the opportunity to start a loyalty program. We also manage everything so that you receive turnkey and ongoing support from our experienced team. Get a consultation with us today by calling us as 302-696-6000. We’ve been successfully empowering brand loyalty in the automobile industry since 1991.