3 Ways a Loyalty Program Overcomes Customer Retention Challenges
Effective customer retention is one of the biggest challenges faced by today’s auto dealership businesses. It is particularly problematic in an industry that already faces issues related to a purchase frequency that is low compared to other sectors. The lack of purchase frequency causes a lack of customer data and regular touchpoints between a dealership and customers. It also makes it more difficult for auto dealerships to influence the behavior of their customers.
Why Customer Retention Programs are Essential
The auto dealership industry sells products that represent a high-value purchase. Often due to this fact, dealerships have a limited amount of time to engage meaningfully with customers. Because of these factors, effective automotive customer retention programs are so crucial for today’s dealerships looking to overcome the customer retention challenges they face. With this said, these are three ways that the right loyalty rewards program from AutoAwards can promote customer retention.
Dealerships Can Incentivize Desirable Customer Actions
Perhaps the most compelling benefit of implementing a customer loyalty program as it pertains to customer retention is that it is a way to incentivize desirable actions on the part of customers.
Structure the Loyalty Program to Fit the Auto Dealership’s Needs
A second key benefit of implementing an AutoAwards loyalty program at your dealership is that there are various ways to approach it to meet your dealership’s needs. Popular loyalty program models include:
- The Membership-Based Model
- The Commitment-Based Model
- B2B Loyalty Programs for Partners
- Programs That Focus on Auxiliary Services
Offer Customers Key Incentives to Stay Loyal to a Dealership
Another key benefit of implementing the right loyalty rewards program to overcome customer retention challenges is that it offers a dealership a way to consistently reward loyal customers with benefits such as free services like tire rotation and car washes, gift cards, and gift packages for VIPs.
Contact Our Loyalty Program Team
Today is the perfect time to reach out to the team at AutoAwards about starting auto dealership customer loyalty programs that can make a difference for your dealership in facing this crucial challenge. You can reach out to us at 302-696-6000 to get a consultation from a team member about creating a prepaid maintenance program for your dealership that will make a big difference in helping you overcome customer retention challenges.
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.