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From: Jared Hamilton
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Mike Gorun

Mike Gorun Managing Partner/CEO

Exclusive Blog Posts

My Dealership Story - Kristy Elliott

My Dealership Story - Kristy Elliott

Meet Kristy Elliott, the Dealer Operator at Sunshine Chevrolet and check out her dealership story. Learn how Kristy came from the non-profit world to …

Start With Why - David Mead at DrivingSales Presidents Club

Start With Why - David Mead at DrivingSales Presidents Club

DrivingSales was so excited to have David Mead as a keynote speaker during Presidents Club. David works at the Start With Why foundation with Simon Sinek, …

You Have a Position to Fill – Who Do You Hire?

You Have a Position to Fill – Who Do You Hire?

As much as you try to avoid employee churn, you’ll always need to hire someone. It might be to replace a staff who’s moved on in their care…

6 Tips for Better LinkedIn PPC Advertising

6 Tips for Better LinkedIn PPC Advertising

With a little over a year’s experience with LinkedIn Advertising and some insights from a connection at LinkedIn, I’ve put together a list of 6…

The 3 Laws of Extreme Ownership

The 3 Laws of Extreme Ownership

“These are all things that may help you justify your results. But is your dealer any happier because of this?” I just finished reading a…

How to Implement a Loyalty Program

 

The goal of any loyalty program is to create additional sales, service and parts profits, along with strong word-of-mouth advertising for the dealership that helps to retain customers’ business for longer. Whether you opt for a third-party loyalty program vendor or choose to implement one in-house, the following steps are crucial for a successful program:

 

1) Strategy: Offer multiple membership levels, including a free “starter” base level offer, ascending to an advocate level for the best customers who frequently buy and refer friends. The goal is to create customers who talk positively about their experience and refer family and friends.

 

2) Process: Identify dealership market segments; design appropriate promotions and communications; establish a schedule for customer communications; design the rewards redemption process and program results measurement tools; train employees to properly promote & explain the program.

 

3) Management: Establish best practices and determine how much of your program you want to automate. Assign management duties for each part of the program.

 

4) Reporting & Measuring: Determine which metrics should be used to provide an accurate analysis of how the program is benefiting the dealership. Examples include increasing customer retention rates, decreasing service acquisition costs, selling more maintenance, i.e. increasing RO hours and revenue.

 

Excerpted from MediaTrac’s white paper:  “The Auto Retailer’s Ultimate ‘How-to’ Guide to Customer Loyalty & Retention Program Set Up, Management & Measurement.” To download your free copy, click here: http://www.drivingretention.com/?p=661

Mike J
While some internet strategies focus on commoditizing a product, Loyalty Program is the differentiator, focused on service, relationship and rewards. The business model for loyalty programs is quite matured for some internet based companies eg. godaddy.com, amazon.com and in a certain way helps them in viral growth. How some other industries can benefit from this? New technology tools have made it a good time to evaluate Loyalty Program Process as an important component for your growth strategy.

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