CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
Dealerships with the most effective loyalty programs drive results in five key areas: marketing responsiveness, sales-to-service conversion, service visitation, retail member spend and member repurchase intent.
This is the second blog in a five-part series where I explain how loyalty programs improve each of these metrics. Last week I touched on marketing responsiveness. This week’s topic is sales-to-service conversion.
Sales-to-service conversion measures first-time service visits that are retail in nature (warranty transactions excluded). This metric looks at customers who enrolled in a loyalty program after a vehicle purchase and returned for a customer-pay service visit. These results were for first-time visits only:
In summary, enrolling customers into a loyalty-based rewards program results in an average 49% sales-to-service conversion rate in the first year. What do you think of these conversion rates? Do you track your dealership’s sales-to-service conversion rates and how do they compare to these percentages?
More information on this topic can be found in our free ebook, “The Hard Facts and Financial Impact Report: Auto Dealership Loyalty Programs & The Effects They Have on Profitability.”