Beltway Companies
Loyalty
I do not want to keep a loyal customer said no one ever! Somehow, though, dealers fall short of creating, implementing, and executing a successful loyalty program. Often spending too much time on other marketing efforts.
When is the last time you asked a service advisor or sales consultant what their store's loyalty program was? Better yet - once you’ve asked them what their program is (which they probably will at least acknowledge that you have one) ask them how often they use it to sell the dealership!
Do they use the Dealers Loyalty Program to sell the dealership? (if not, chances are it is a program that is not clearly explained or valued).
Designing a loyalty program is more than creating a brochure and touting benefits that are not explained or translated into what the “benefits” actually do for the customer.
For example, you tell the customer “you have x amount of oil changes. Earning money for each service” the consumer might think “if the oil change is free what else do I need?”
The customer - at the time of their purchase - is not always thinking about all of the other things that can go wrong with their newly purchased vehicle. Or if they do, that is why s/he bought their extended warranty.
That said, what does a “loyalty” program do for them? If the consumer in this day in age *expects* maintenance (such as the oil change) to be apart of the oil change, then the loyalty program has to be creative. A program that deems itself useful to the customer.
One of the things that can help build value with your dealer's loyalty program is partnering with local shops. Think about it - if you were to partner with a local favorite coffee, bakery, or boutique shop, and purchased a “bulk” amount of coffee or pastries, then the customer would see *value* in their servicing the vehicle with your store. Making that extra stop on the way home to their popular downtown venue.
It is a win-win for both the dealer and shop. Sure, there would be different demographics to approach when tailoring the programs. For instance, your luxury brands might have a “Presidents wine club.” where the CEO & owner shares a bottle of his prize wine at a “discounted” price. But at the end of the day, the options are endless.
I encourage you to ask the hard question to your employees “what does our loyalty program mean - would you use our loyalty program?” And see what they have to say!
What kind of loyalty programs do you have? What has worked well for you?
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4 Comments
Brad Paschal
Fixed Ops Director
Its all about making customers for life. Great articles.
Derrick Woolfson
Beltway Companies
Thanks, Brad! You got it! :) How is your community out reach going - it has certainly inspired us to continue our involvement!
Brad Paschal
Fixed Ops Director
Its going great. Building solid relationships in the community.
Kristen Tepper
IncentiveFox
Love this and you could even double up the effectiveness with an awesome customer/partner referral program. A referral is one of the highest forms of loyalty expression. After all - your customers/partners are basically setting you up for a win/sale. (A referred customer is 4x more likely to buy than fresh up)
Oh and don't forget about your employees! You want loyalty from them too... and currently:
Only 14% of organizations provide managers with the necessary tools for rewards and recognition.