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From: Jared Hamilton
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Mike Gorun

Mike Gorun Managing Partner/CEO

Exclusive Blog Posts

Keeping Up with the Joneses in Quick Lube

Keeping Up with the Joneses in Quick Lube

More than half of all sales customers will abandon your dealership’s service department in the first year. It’s a widely varying statistic &nda…

It Has Never Been Easier To Be Average

It Has Never Been Easier To Be Average

It has never been easier to be average. This post was written by Jay Acunzo, who will be speaking at the upcoming DrivingSales Executive Summit in Octob…

Lose a Sale, Save a Life: When a Test Drive Tests the Legal DUI Limit at Car Dealerships

Lose a Sale, Save a Life: When a Test Drive Tests the Legal DUI Limit at Car Dealerships

Seasoned car dealers and sales professionals are true masters of relationship marketing.  A vehicle purchase is an important decision for consumers, a…

7 Attitude Tips to help you Succeed in the Car Business

7 Attitude Tips to help you Succeed in the Car Business

I have found that one of the greatest traits of all the best salespeople to ever sell is a positive attitude. I experience it first hand in my own life, …

How Well Are Your Digital Campaigns Really Performing?

How Well Are Your Digital Campaigns Really Performing?

You’ve probably noticed by now that we live in a world of multi-channel marketing. Customers are researching products and services online using multi…

Build Loyalty with Five Metrics: #4—Retail Member Spend

 

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 fourth blog in a five-part series where I explain how loyalty programs improve each of these metrics. Last week I touched on service visitation.  This week’s topic is retail member spend.

 

Member spend is viewed as money that loyalty members actually spend in a dealer’s service department, both by individual RO and by annualized spend. Visit frequency is one key component, but perhaps more important is wallet share.

 

When we compared member spend vs. non-member spend rates across 72 dealerships, the results were significant:

 

Ÿ Average non-member per customer pay RO: $191.32

Ÿ Average member spend per customer pay RO: $235.01 (an increase of $43.69)

Ÿ Annualized total non-member service spend per 12 months: $336.63

Ÿ Annualized total member service spend per 12 months: $662.01 (increase of $325.38)

 

Dealerships with increased customer pay ROs and annualized spending credit their loyalty programs, citing higher customer retention rates and increased frequency of visits as reasons.

 

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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