Top Reasons Why Auto Dealerships Should Have Loyalty Programs
Loyalty programs are a great way to keep customers happy while bringing new ones. A loyalty program collects valuable data on consumer spending habits and preferences. As a result, companies can better anticipate trends in the market and target consumers. Loyalty programs can increase your bottom line, boost sales, and grow your dealership. Here are some reasons why auto dealerships should implement automotive loyalty programs.
Complimentary maintenance plan
While some manufacturers offer a complimentary maintenance plan with vehicle purchases, these plans do not focus on returning customers to a dealership. Instead, they offer a maintenance plan that covers half the suggested visits by the dealership. This strategy can build brand loyalty but not ensure lifetime customer retention. If your dealership offers a maintenance plan, make sure it’s an option that fits your needs and budget.
A complimentary maintenance plan is an excellent way to develop a relationship with customers and familiarize them with your staff. You want customers to be familiar with your team and return for any necessary maintenance. Providing a comprehensive maintenance plan allows your customers to feel comfortable with your business, which will make them more likely to return. It also helps you keep your customers happy, making them more likely to call for repairs and new automobile searches.
Rewards program
Rewards program offers customers incentive points to purchase or lease future vehicles. However, unlike some programs, the issues are not retroactive; members must redeem them at the purchase or lease. I
It is easy to see why a dealership would want to reward its best customers. The most valuable customers are those who continue to buy vehicles from them after their factory warranty expires. Customer loyalty is the Holy Grail for automakers. To build customer loyalty, automakers are experimenting with loyalty programs. Some manufacturers work directly with dealerships. Others purchase and install loyalty program software. In some cases, auto dealers create their programs.
Rewards program is tied to other factory initiatives. While Ford and Lincoln’s dealerships no longer have loyalty programs, Nissan has them.One to One Rewards program is the most popular loyalty program in the world. While most dealerships don’t have a loyalty program, many brands offer one. So One to One program is an excellent way to build loyal customers and boost sales.
Increased profitability
In today’s marketplace, customer retention is more critical than ever. While many dealerships focus on attracting new customers, loyalty programs encourage customers to stick around and increase their overall satisfaction with the dealership. In fact, according to research by Fred Reichheld in The Loyalty Effect, a five percent increase in customer retention can lead to a 25-100 percent increase in profits.
Dealer Currency: A new technology in customer retention programs, Dealer Currency replaces cash discounts with internal dealer currency that can only be used within the dealership. Dealer Currency can be issued and redeemed anywhere and is only suitable for future purchases in the dealership. Dealer Currency is an excellent way to reward loyal customers by attracting more of them and keeping existing ones happy. Dealer Currency is a cloud-based program that tracks all aspects of its management.
