What are the Core Elements of Creating Loyalty in a Dealership?
You might think that the auto industry is a strictly transactional business:
You buy a car.
You pay for it.
You drive it until it depreciates past its salvage value.
However, the reality of the situation is that your customers are human beings, and they depend on their vehicle. It is a part of their lives. They may have kids, pets, go hiking or camping, and haul trailers or other items. Of course, they may drive it for as long as they can.
When it is time to get a new vehicle, they’ll most likely look at what’s available from the same car manufacturer first. Building loyalty programs for auto dealerships is essential to having a long-term relationship with your customers. It’s something that most businesses overlook because they think it’s not necessary or that their customers won’t be impressed by such things.
Let’s look at why loyalty programs are essential to maintaining happy customers who come back again and again.
Why Are Loyalty Programs So Important?
Depending on your industry and the products or services you provide, you may need help to retain customers for the long haul. The fact is that people in the modern age are fickle, and most of them aren’t loyal to any one company.
They’ll try your products or services, and if you don’t provide them with what they want, they’ll move on to the next product or service in search of a better experience.
It would be best to give your customers a reason to stick around. One of the best ways to do this is by implementing a loyalty program. A loyalty program is a program that rewards customers for purchasing from you over a certain period.
They can either be a points-based system (like airline miles) or a system that gives the customer a discount on each purchase over time.
The Benefits of a Loyalty Program for Auto Dealerships
The benefits of having a loyalty program for your dealership are endless. Loyal customers are more likely to be brand advocates and refer others to your business. They’re also more likely to purchase from you again in the future.
In addition, having a loyalty program will help you build your brand recognition. Customers will associate your business with positive feelings, and they’ll want to interact with you repeatedly. Beyond this, there are many other benefits of having a loyalty program, including
- Stronger customer relationships
- When you have a loyalty program, you’ll have a better chance of building long-term relationships with your customers.
You can retain customers and build lasting relationships that will last well into the future.
- Increased sales – Over time, the revenue you’ll generate from having a loyalty program will significantly outweigh the cost of creating and maintaining such a program.
- Increasing customer satisfaction – Customers rewarded for doing business with you will feel appreciated and more likely to return for more.
- More referrals – Customers rewarded for doing business with you are more likely to refer you to other potential customers.
- Better customer retention – Those customers rewarded for doing business with you will be less likely to switch over to the competition.
Create Brand Awareness
The best way to build brand awareness is by getting your name out there. Your customers need to know who you are and what you stand for.
- By creating a loyalty program, you’ll have an opportunity to reach out to your customers and communicate with them on a personal level. You’ll also be able to share your values and mission and what makes your business unique.
- Customers will appreciate knowing that you care about them as individuals. They’ll be more likely to respond positively to your outreach and to remember who you are and what you stand for.
- You can also use the loyalty program to ask customers for feedback on their experience with your business.
- And, if you have a rewards program, you can also use that to create brand awareness. You can let people know about your rewards program and how they can earn points and redeem them for rewards.
- Rewards programs are also a great way to offer discounts and promotions to inform your customers about special offers not advertised.
Build Customer Relationships
The more effort you put into building relationships with your customers, the more likely they will return for more. Customers want more than just a good product or service; they want to feel like they’re being treated well and meeting their needs.
- Loyalty programs are a great way to build relationships with your customers because they allow you to treat them like people instead of a number.
- You can use the loyalty program to send out emails and messages that let customers know that you appreciate their business and value them as individuals.
- You can also send out emails and messages letting customers know about special promotions and discounts that are only available to loyalty program members.
Establish Customer Trust
Customers always want proof that you care about them and that their needs are met. They want to know that they can trust you and rely on you to provide them with the needed product or service.
- If you want to establish trust with your customers, you must go above and beyond to show them that you care and want to build a relationship with them.
- You can do this by offering special deals and discounts to people who sign up for your loyalty program.
- You can also use the loyalty program to send out special offers and invitations to exclusive events where customers can meet the people behind the business.
- Letting customers know that you value them and care about their opinions and experiences with your business is a great way to establish trust and make them feel valued.
- Customers will appreciate the effort you go to to make them feel like part of the team and like they are appreciated.
Show You Care About Their Needs
If your loyalty program is like most others, it will offer rewards and discounts to customers who purchase from you. But what happens when a customer needs help with a problem or has a question they’d like you to answer?
- Having a loyalty program is great, but if you don’t have a way to help customers who aren’t making purchases at the time, you’ll end up losing their trust.
- At the same time, you don’t want to offer special discounts and promotions to people who don’t need them. If you’re not careful, you could end up hurting your business more than you help.
- A loyalty program that offers additional benefits and perks is a great way to show that you care about your customers’ needs.
- Providing customers with helpful information and links to resources they can use is another great way to show that you care.
Grow Your Bottom Line
The more revenue you generate from your business, the more successful you are. Your loyalty program can help you grow your bottom line by increasing your customer base and encouraging repeat business.
- Loyalty programs offer customers perks and discounts for purchasing from you and encourage them to keep coming back.
- As your customer base grows, so will your revenue.
- A loyalty program is a great way to attract new customers and encourage them to become repeat customers.
- You can offer different levels of rewards in your loyalty program so that customers who purchase from you more often are rewarded more than those who purchase less frequently.
A loyalty program is a great way to reward your customers for doing business with you and encourage them to come back again and again.
- By creating a loyalty program, you can build brand awareness, build customer relationships, establish trust, and show you care about your customers’ needs.
- There are many benefits of having a loyalty program, and it’s an essential part of having a successful business.
The best way to keep your customers happy is to have them return to you repeatedly. Having a loyalty program is a great way to do that and make your customers feel like they’re treated like VIPs.
To get started, reach out to AutoAwards today by messaging us or giving us a call at 302-696-6000!
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.