Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Mike Gorun

Mike Gorun Managing Partner/CEO

Exclusive Blog Posts

Design: The Driving Factor Behind Showroom Sales

Design: The Driving Factor Behind Showroom Sales

Many factors go into creating a successful showroom. While often overlooked, design plays an essential role in the customer experience and overall success …

5 Reasons You Should Seek Out Consumer Generated Content

5 Reasons You Should Seek Out Consumer Generated Content

It may seem like a good idea to always be the one writing about your dealership, but in reality consumer-generated content is as important, if not more so,…

DealerRater Reviews now Available on Cars.com

DealerRater Reviews now Available on Cars.com

DealerRater pushed a press release today that they have pushed reviews to the Cars.com Platform. According to the press release, this is about three millio…

Why Should You Attend NADA 2017

Why Should You Attend NADA 2017

As you investigate the possibility of attending NADA in New Orleans this year, you might be questioning the benefits of attending. It’s possible that…

The Most Wonderful Time of Year for Luxury

The Most Wonderful Time of Year for Luxury

It’s that time of year again: lights line the houses, the air is brisk, and luxury manufacturers are trying to make sure their vehicles are the best …

Build Loyalty with Five Metrics: #3—Service Visitation

 

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 third blog in a five-part series where I explain how loyalty programs improve each of these metrics. Last week I touched on sales-to-service conversion. This week’s topic is service visitation rates.

 

Service visitation measures the rate at which loyalty program members are visiting the dealership’s service department for customer-pay retail transactions. Members’ visitation rates were then compared to that of non-members during the same period of time. Here are some of the results:

 

  • Members have an average of 4.26 months between service visits, compared to an average 6.82 months between visits for non-members.

 

  • Members visits service departments an average of 2.82 times per year, compared to non-members visiting an average of 1.76 times per year.

 

Only when the service department has an opportunity to service a customer can parts and labor profit opportunities be created. Our study found that rewards-based loyalty programs create more active and frequent visits. Do you track the average frequency of visits for your service customers? How do your numbers compare with these?

 

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.”

 Unlock all of the community & features  Join Now