How Loyalty Marketing Works for Dealerships
Why a Car Dealership Loyalty Program is Right for Your Business
Businesses that want to retain customers and establish a relationship with them often turn to loyalty-based marketing. But what exactly is loyalty marketing, and is it worth investing time into? If you want to find out more about loyalty-based marketing and how it can benefit your business, you’ve come to the right place.
What is a Dealership Loyalty Program?
Loyalty marketing is when companies offer perks, incentives, and rewards to customers to build a relationship that will increase overall customer retention. Since dealerships operate in highly saturated markets, loyalty-based marketing is becoming a popular choice for businesses to increase customer retention. The introduction of smartphone technology has further helped loyalty-based marketing strategies become even more successful due to the direct access to potential and current customers through an app.
How Dealership Loyalty Programs Help Increase Sales
In a world where customers see advertisements from all angles, it’s important to set your business apart from other dealerships. Providing a platform to promote new products while also establishing unique rewards for clients who buy specific products or services keeps your business refreshing, attractive, and most of all desirable for continued business.
Having an individualized app that promotes loyalty-based incentives, keeps track of customer points, and gives customers easy access to communicate with staff members is a popular trend that businesses are implementing into their marketing plans.
Aside from loyalty programs giving businesses access to customers, it is also an effective way of collecting consumer data on personal trends, popular purchases, and overall spending patterns. This type of information can help dealerships target individuals more directly or analyze marketing trends that are effective or ineffective. This competitive differentiator can make a meaningful impact on sales.
Factors to Consider When Creating a Loyalty Marketing Program:
Point System – Create a clear rubric on how customers will get points for different types of purchases or services. Some examples include:
- Referring others to your business.
- Buying a new or used car.
- Visits to the repair shop.
- Sharing posts on social media.
- Participating in a testimonial video, or how often they come for maintenance visits.
Added Value – Try to identify and recognize which types of rewards make the most impact. For example, offering a gift card for buying a new car, getting a free oil change after several visits, or offering a point system that can allow them to buy coupons are some of the many strategies used by dealerships across the country.
Contact AutoAwards Today!
We at AutoAwards have years of experience helping dealerships make it to the next level when it comes to marketing, meaning we can help your business too! If you are interested in finding out more, contact AutoAwards online or call us at 302-696-6000 to learn how to create a successful car dealership marketing plan for your 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.