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Mike Gorun

Mike Gorun Managing Partner/CEO

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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.”

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