Manufacturer vs. Third Party Loyalty Programs: Should You Do Both?

Mike Gorun
To help dealers with customer retention, many OEMs have launched brand specific loyalty programs. The problem for dealerships is that these programs often permit vehicle owners to redeem rewards or points at any of the OEM’s franchises, diluting a dealership’s individual branding and retention power. So some dealerships add a third-party loyalty program. Boulder Nissan is one example of a dealership that uses both the OEM loyalty program (Nissan One to One) and a third-party loyalty program (LoyaltyTrac). The dealership has a 40% return rate from members and ranks second out of 17 dealerships in its district for service retention. Do you use an OEM or third-party loyalty program? What are your results?

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