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Mike Gorun

Mike Gorun Managing Partner/CEO

Exclusive Blog Posts

Top 6 Things Car Dealers Do To Make Car Buying Difficult

Top 6 Things Car Dealers Do To Make Car Buying Difficult

[youtube https://www.youtube.com/watch?v=3R7Y3kZIDVg] Your Turn To Drive discusses Top 6 Things Car Dealers Do To Make Car Buying Difficult.  Jim D…

Choose the correct CRM for your dealership OR pay dearly

Choose the correct CRM for your dealership OR pay dearly

With all the CRMs on the market today, finding the right one for your dealership is becoming more challenging than ever. There have been massive changes in…

5 Benefits of Using Google AdWords Click-to-Message Ad Extensions

5 Benefits of Using Google AdWords Click-to-Message Ad Extensions

Looking for a new way to win over people more likely to send a text message than to call? Set up this free message extension for your text ads on the Googl…

Must-See NADA 100 Expo Displays for Fixed Ops

Must-See NADA 100 Expo Displays for Fixed Ops

New Orleans is ramping up for the 100th anniversary of NADA, and the convention promises to be outstanding. You’ll be entertained at the NADA100 Carn…

Why Social Media Marketers Won’t Replace Your Sales Team

Why Social Media Marketers Won’t Replace Your Sales Team

Social media is changing the marketing profession in remarkable ways. According to the Public Relations Society of America (PRSA), the social media analyti…

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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