Win Customers Over From The Start

Automotive loyalty programs are booming these days. 54% of dealerships already have some kind of reward system in place, and another 20% plan to join them soon .

The question is, why should you care? What’s in it for your business?

After all, 85% of auto dealers feel that good customer service – not a reward system – is the key to retaining clients.

They’re not wrong. Quality customer service is the single aspect 34% of people said encouraged them to spend more at a dealership.

Unfortunately, there’s one thing many car dealerships don’t know, and it’s killing their sales and bottom line…

Loyalty programs rank second, only slightly behind good customer service in getting customers to come back.

In fact, with 30% of respondents saying relevant, personalized rewards were what kept them coming back to a dealership, the difference between the two is marginal.

What’s more, with only 54% of car dealerships having a reward system, the other 46% are spending less on retaining customers than, say, McDonald’s.

That’s right – almost half of the industry is doing less to retain customers who spend 5 and 6 figures than a fast food chain does to keep people buying 2 and 3$ burgers!

Want another crazy statistic? According to a two-year study by Performance Loyalty Group, a California-based company, loyalty-program users get serviced at their dealership twice as often and spend twice as much as non-users.

Think about it: if a reward program user is spending all that extra money at a dealership, who are they going to go to for a trade-in, or to buy a new car?

The bottom line is, the numbers don’t lie: if you want to hit a home run in both sales and service, doubling your money in the latter alone, win customers over from the start with a competitive loyalty program.


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