Dealerships Can Expand Customer Growth, Not Shrink It-See How
Making small repairs to customers’ cars can place a minor dent in the dealership pockets, but it could have a huge effect on a customer’s loyalty. A prepaid, free, or discounted repair at the dealership could render loyal customers for years to come. As automotive sales achieve memorable highs – and loyalty programs move at a similar pace – the car dealerships are finding such practices as a basic component for re-establishing client visits.
How Dealerships Rebound from Low Sales
Even though reports show 16.7 million vehicles registered, car sales are expected to become stagnant within a couple of years. Due to this fact, dealerships should view loyalty programs as important and crucial to the success of their dealership.
Loyalty program advertisers have not dismissed the open door and need for such a program. At various loyalty groups, free repairs for small dents and concierge services lead to customers that are willing to pay more for products, services, and memberships. Some loyalty programs have reported having approximately 70 to 80,000 members.
Loyalty program promoters try daily to increase business with the help of cross-marketing. These promoters have successfully expanded outside of the U.S.A borders in 2016, by entering Europe with programs for BMW and Mazda.
According to reports by IHS Automotive, about 52.8% of car buyers return to the same dealership to purchase the same brands. This increase could be connected to the number of models that each brand has available.
Rising Sales Generated for Auto Dealerships
Another huge figure is 4.4, that is the rate increment in offers of new autos and light trucks from January to June – a 10-year record, as per Automotive News. General offers of new autos and light trucks rose 3.9% in June, to right around 1.5 million automobiles.
Collectively, the figures help to conclude that there has been an increase in brand adherence, that means noteworthy opportunities lie ahead in the changing car loyalty industry. Individuals who send in recipes are given bonus points, while other members are encouraged to participate in competitions that require them to place their vote for their favorite recipe. Members whose recipes win will have the opportunity to win various prizes such as mobile devices or even gift cards. Those that enter votes into the competition qualify themselves to be included for more offers and discounts.
Such activities can result in month to month development.
Benefits to Loyalty Programs
One key to distinguishing successful bonuses in car loyalty lies under the hood. It has been reported that members are more likely to enjoy the perks that involve dealer services. Benefits such as giveaways and free food can help to keep automotive members satisfied, but the tangible way to keep these individuals satisfied is with detail services.
The following features are recommended to achieve a steady performance:
Repairs. New car owners can be devastated by small dings such as little dents in the door or fender. A free dent repair costs the dealership a little, but the effects can be huge. A happy customer can turn into a loyal customer.
Concierge services. More typical among extravagance models, for example, Lexus, a few merchants send a driver to pick up the member’s automobile so that it can be serviced at the dealership’s shop. This small accommodation could equal a huge convenience for the member.
Rebates. Make the biggies small(er): Any rebates on huge, recommended maintenance services, for example, an oil change that includes a new filter and synthetic oil, will grasp the interest of members.
Points of interest, subtle elements. A perfect advancement for clients who have not been to the dealership in a year or something like that, a free detailing can be something major by the member but is a cheap expense to the dealership.
Put resources into mechanics. Dealers with great service records tend to have higher customer loyalty levels, according to IHS Automotive. It is important to note that these features can be applied to other industries. Hair salons, barbershops can benefit from loyalty programs.
Get Started With Your Dealership Loyalty Program
Contact AutoAwards today to get started with a dealership loyalty program to grow your customer retention rates and attract new business.
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.