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Mike Gorun

Mike Gorun Managing Partner/CEO

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What do Dealers Have to Say About Their Service Rewards Programs?

 

Two weeks ago I posted a blog on this site detailing hard facts, numbers and results from dealerships’ loyalty programs. But sometimes facts aren’t enough and dealers want to hear what other dealers are saying.

 

In our latest ebook, titled “The Hard Facts and Financial Impact Report: Auto Dealership Loyalty Programs & The Effects They Have on Profitability,” we analyzed results from 72 dealerships using customer loyalty programs to retain service customers. The ebook offers evidence that loyalty program members spend three times as much as non-program members in the service department, with twice the number of annual service visits.

 

But even more important, here’s what several dealers are saying about their service rewards programs:

 

Tom Wood Ford in Indianapolis started enrolling customers in a rewards-based loyalty program in 2007. Its member service visitation and spend ratios are in line with the study averages: months between service visits for members, 5.28 compared to 8.43 for non-members, with member spend at $797.32 compared to $504.20.

 

Service Manager Tom Kashman says, “From 2008 through late 2011, my gross profit per month has doubled. This is a huge number, one that nobody is going to believe, but the numbers don’t lie. My belief is that you cannot run a successful service operation without having some type of retention tool paying back the loyal customer.”

 

Richfield Bloomington Honda in Minnesota reports similar healthy results from its loyalty program. General Manager Tim Carter reports 2.87 months between service visits for members, versus 5.95 for non-members, and the average annual service revenue per member is $927.34, versus $417.30 for non-members.

 

Want to hear more about what these and other dealers have to say about their loyalty programs? Follow this link to download our free ebook: http://www.media-trac.com/resources/whitepapers.shtml

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