How to Start An Effective Auto Loyalty Rewards Program
From grocery stores to ecommerce retailers and everyone in between, loyalty programs have surged in popularity in recent years. In fact, loyalty program enrollment has increased about 10% per year in the last decade. Consumers are adopting these incentives based programs in record numbers each year.
What Incentive To Offer In A Loyalty Rewards Program
The type of incentive you offer matters, though, if you want to make the most of the loyalty program model for your business. While every business is unique, an approach that is points-based can help encourage customers to spend a little more each time they shop, simply to earn the reward.
A points system is easy to keep track of for both you and your customers and rewards them for buying more they’re more likely to upgrade to a large from a small – or swap out their regular basic black coffee for a latte when they can earn points.
A points-per-dollar system is appealing to both consumers and businesses, since it is easily understood and offers the most versatility.
No matter which approach you take for your rewards program, the process needs to include the following steps to be effective:
*Set a goal so customers know what they are working towards
*Clearly defined explanation of how they’ll earn that reward – what action do you want them to take?
*An early, easy, desirable incentive to get customers in the habit of using your program
Loyalty Program Best Practices
- Choose the right rewards. For your program to be effective, the buyer or participant must want the item you are offering. By offering a broad selection of items you can be sure you appeal to your entire customer base, not just the ones who like and are willing to work for one specific reward. From merchandise to event tickets and even travel, offering a variety of rewards helps consumers truly get excited about the program and buy into what you have to offer.
- Make it user-friendly.Your customers need to be able to easily see where they stand and how far they are from the reward they’re earning. Point balances, reward options and the latest news from your program should be easily accessible from your site or via an app or mobile device.
- Send regular alerts.Keep participants in the loop and make sure they always know what’s new; your communication program not only ensures your loyalty members know what you have to offer, it gives your marketing team plenty to work with, too. Members also love to feel like they are “in the know” and getting deals not everyone is privy to.
Done correctly, a dealership loyalty rewards program can help boost your brand awareness, ensure your customers get engaged and stay engaged and even help you expand your per-order or per-sale revenues.
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 (800) 405-4227.