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Mike Gorun

Mike Gorun Managing Partner/CEO

Exclusive Blog Posts

Morgan Auto Group Rises To Number 28 In Automotive News' Top 100 Dealer Group Used Sales Ranking

Morgan Auto Group Rises To Number 28 In Automotive News' Top 100 Dealer Group Used Sales Ranking

Morgan Auto Group moved up 25 spots in this year's "Top 100 Dealership Group Used-Vehicle Sales" supplement published by Automotive News. The…

Top 5 Luxury Cars for Any Type of Terrain

Top 5 Luxury Cars for Any Type of Terrain

Many automotive companies make luxury vehicles that can be driven on different terrain. If you like to take road trips to cities, forests, hiking trails, a…

My Dealership Story - Kristy Elliott

My Dealership Story - Kristy Elliott

Meet Kristy Elliott, the Dealer Operator at Sunshine Chevrolet and check out her dealership story. Learn how Kristy came from the non-profit world to …

Start With Why - David Mead at DrivingSales Presidents Club

Start With Why - David Mead at DrivingSales Presidents Club

DrivingSales was so excited to have David Mead as a keynote speaker during Presidents Club. David works at the Start With Why foundation with Simon Sinek, …

You Have a Position to Fill – Who Do You Hire?

You Have a Position to Fill – Who Do You Hire?

As much as you try to avoid employee churn, you’ll always need to hire someone. It might be to replace a staff who’s moved on in their care…

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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