Does Your Dealership Have a Customer Loyalty Program? If Not, Why Not?

Mike Gorun
Customer loyalty programs show powerful results, with proven retention increases of 20%. Despite this success, nearly three-quarters of dealerships have not implemented customer loyalty programs. Our experience says the following are dealers’ primary objections: 1) Dealers are unclear about why they should implement a customer loyalty program 2) Dealers who understand the value of a program are sometimes confused about the structure and processes involved 3) Dealers are unclear about what to expect in terms of measurable results. Do you agree with these conclusions? If your dealership doesn’t have a customer loyalty program, why not? Is it because of a reason not listed here? Please share your opinion.
Steve Devereaux
We opted out of the customer loyalty program because our strategy is to keep prices low for everyone. We like to advertise low prices and if we discounted our loyal customers, we would be discounting even more, which would hurt net profits. The majority of our customers are repeat customers. We do give out punch cards for free oil changes.

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