Who doesn’t love free stuff? If your dealership has a loyalty program that allows customers to accrue rewards points, one of the best ways to encourage people to sign up is the promise of free stuff and/or valuable discounts down the road.

Customers who purchase a vehicle or come into your service department are ideal prospects for a loyalty program, but what about the customers who haven’t visited your shop lately? What about friends of your customers?

Social Media is a great way to spread the word about your loyalty program to potential customers who don’t know much about your dealership and who aren’t on your e-mail lists. A loyalty program has the same appeal to them as it does to the customers who visit your store: free stuff! So promote the free stuff you do give away! Here are a few tips on how to do that:

1. Conduct a Facebook Poll: If your customers interact with your Facebook page, ask them what types of rewards they would prefer. People love to fantasize about getting stuff for free! Here’s an example:

Q: If you were a member of a loyalty program, which reward would you cash your points in for?

-Restaurant gift certificate

-Spa treatment

-Rental car credits

-Service department discounts

Another suggestion is to announce that you’re going to add a new rewards option, and that you’re going to let your Facebook fans choose which reward it’s going to be. Then list the options in a poll.

2. Tweet: Send a tweet every time a customer redeems their loyalty points for a reward. “Mrs. Jones just received 30% off her oil change,” or “Congrats to Sara J. who just received a $100 gift certificate to Outback steakhouse.” Add a link to information about your loyalty rewards program on your website. The idea here is to encourage your other Twitter followers to think, “Hey wait a minute. I want discounts. I want gift certificates. How do I get that?”

3. Run a Facebook contest for your loyalty program members. Encourage them to send in a photo of themselves enjoying their reward; or ask them a question like, “If you could have any reward in the world, what would it be?” and to post a photo of that reward. Whoever is selected as the winner gets more rewards points, of course. And all your Facebook fans who aren’t loyalty program members may just be tempted to sign up.

4. Run a loyalty program special just for your social media fans. Offer free rewards points to your Twitter followers and/or Facebook fans just for signing up (within a certain time frame) for your loyalty rewards program. The great thing about this type of promotion is that there is no obligation to buy anything up front, but once somebody signs up there’s a good chance they will want to continue to accrue more points. For your social media fans that are already loyalty program members, offer them extra rewards points if they come in for a service or buy accessories or parts within the next month.

It’s a proven fact: loyalty program members spend more and add more revenue to a dealership’s bottom line every year, compared with non-members. So the more people you sign up, the more revenue you will get!

Do you have any additional ideas on how to use social media to promote your loyalty rewards program? Have you ever used social media to promote your program and if so, what type of results did you get?

Who doesn’t love free stuff? If your dealership has a loyalty program that allows customers to accrue rewards points, one of the best ways to encourage people to sign up is the promise of free stuff and/or valuable discounts down the road.

Customers who purchase a vehicle or come into your service department are ideal prospects for a loyalty program, but what about the customers who haven’t visited your shop lately? What about friends of your customers?

Social Media is a great way to spread the word about your loyalty program to potential customers who don’t know much about your dealership and who aren’t on your e-mail lists. A loyalty program has the same appeal to them as it does to the customers who visit your store: free stuff! So promote the free stuff you do give away! Here are a few tips on how to do that:

1. Conduct a Facebook Poll: If your customers interact with your Facebook page, ask them what types of rewards they would prefer. People love to fantasize about getting stuff for free! Here’s an example:

Q: If you were a member of a loyalty program, which reward would you cash your points in for?

-Restaurant gift certificate

-Spa treatment

-Rental car credits

-Service department discounts

Another suggestion is to announce that you’re going to add a new rewards option, and that you’re going to let your Facebook fans choose which reward it’s going to be. Then list the options in a poll.

2. Tweet: Send a tweet every time a customer redeems their loyalty points for a reward. “Mrs. Jones just received 30% off her oil change,” or “Congrats to Sara J. who just received a $100 gift certificate to Outback steakhouse.” Add a link to information about your loyalty rewards program on your website. The idea here is to encourage your other Twitter followers to think, “Hey wait a minute. I want discounts. I want gift certificates. How do I get that?”

3. Run a Facebook contest for your loyalty program members. Encourage them to send in a photo of themselves enjoying their reward; or ask them a question like, “If you could have any reward in the world, what would it be?” and to post a photo of that reward. Whoever is selected as the winner gets more rewards points, of course. And all your Facebook fans who aren’t loyalty program members may just be tempted to sign up.

4. Run a loyalty program special just for your social media fans. Offer free rewards points to your Twitter followers and/or Facebook fans just for signing up (within a certain time frame) for your loyalty rewards program. The great thing about this type of promotion is that there is no obligation to buy anything up front, but once somebody signs up there’s a good chance they will want to continue to accrue more points. For your social media fans that are already loyalty program members, offer them extra rewards points if they come in for a service or buy accessories or parts within the next month.

It’s a proven fact: loyalty program members spend more and add more revenue to a dealership’s bottom line every year, compared with non-members. So the more people you sign up, the more revenue you will get!

Do you have any additional ideas on how to use social media to promote your loyalty rewards program? Have you ever used social media to promote your program and if so, what type of results did you get?

One of my favorite comedians is Bill Engvall, who does the “here’s your sign” gags. (i.e. A buddy and I went fishing. When we got to the dock I pulled out a big string of bass. Some guy on the dock asks, “Hey, y’all catch them fish?” I said, “Nope. We talked ‘em into giving up. Here’s your sign!”)

As business managers and/or owners, we all like to think we’ve got a pulse on employee morale, which is a critical component to how successful a business is. As someone who makes a living knowing what makes customers loyal, I know for a fact that if a dealership’s employees aren’t happy, chances are that dealership will not have happy customers. Front line employee interactions with customers can make or break those customer experiences. Unhappy customers lead to fewer repeat customers and referrals, which eventually impacts the bottom line.

Yet occasionally, even the best business owners and managers are guilty of becoming overly absorbed with a particular issue, burying their head in the sand in response to a problem, or just being too darn busy to pay attention. They may miss those signs that should warn them when dysfunction is stealthily creeping into their corporate culture, ready to apply a long, slow chokehold that will lead to revenue decline.

So, in case you haven’t been paying attention to your corporate culture lately, here’s your sign!

1) If you haven’t changed with the times, here’s your sign! If the higher-ups at your dealership continue to do things because that’s the way they’ve always been done, or if they refuse to consider a new technology or marketing program because “we sold plenty of cars twenty years ago without that,” they need to get with the times. Today’s marketplace is very different than it was twenty years ago.

2) If you change with the times every week, here’s your sign! In contrast to never changing with the times, some managers change direction every week based on an article they read, a suggestion from a friend, news that a competitor is doing something, or even just on which way the wind blows. Sending employees scrambling in a different direction every week is counter-productive. Set long term goals, set programs and processes in place, and stick with them for at least six months to give them a chance.

3) If it takes too long to get stuff approved, here’s your sign! Efficient businesses demand efficient processes. If it takes a committee to get anything approved, or if employees aren’t following the processes in place, it’s a problem and there’s probably a reason. Do your processes need to be reviewed? What’s really slowing down employee productivity?

4) If you’re not rewarding your employees for innovation or hard work, here’s your sign! In general, it’s fair to expect employees to do their job without complaint. But if someone comes up with an innovative idea, or if an employee delivers results that you know must have taken extra hard work, reward them! Nobody wants to work somewhere if they don’t feel appreciated.

5) If you have high turnover, here’s your sign! Now I realize the retail automotive industry has higher turnover than most, but why is that? If you have more employees quitting than are leaving because of lay-offs, chances are there’s something wrong with your corporate culture. What is it? Conducting exit surveys is one way to find out; or it may require a little digging.

Fostering a positive work environment makes for happy employees, which in turn leads to happy—and loyal—customers. Have you taken a close look at your corporate culture lately? What do you think are signs of poor employee morale?

One of my favorite comedians is Bill Engvall, who does the “here’s your sign” gags. (i.e. A buddy and I went fishing. When we got to the dock I pulled out a big string of bass. Some guy on the dock asks, “Hey, y’all catch them fish?” I said, “Nope. We talked ‘em into giving up. Here’s your sign!”)

As business managers and/or owners, we all like to think we’ve got a pulse on employee morale, which is a critical component to how successful a business is. As someone who makes a living knowing what makes customers loyal, I know for a fact that if a dealership’s employees aren’t happy, chances are that dealership will not have happy customers. Front line employee interactions with customers can make or break those customer experiences. Unhappy customers lead to fewer repeat customers and referrals, which eventually impacts the bottom line.

Yet occasionally, even the best business owners and managers are guilty of becoming overly absorbed with a particular issue, burying their head in the sand in response to a problem, or just being too darn busy to pay attention. They may miss those signs that should warn them when dysfunction is stealthily creeping into their corporate culture, ready to apply a long, slow chokehold that will lead to revenue decline.

So, in case you haven’t been paying attention to your corporate culture lately, here’s your sign!

1) If you haven’t changed with the times, here’s your sign! If the higher-ups at your dealership continue to do things because that’s the way they’ve always been done, or if they refuse to consider a new technology or marketing program because “we sold plenty of cars twenty years ago without that,” they need to get with the times. Today’s marketplace is very different than it was twenty years ago.

2) If you change with the times every week, here’s your sign! In contrast to never changing with the times, some managers change direction every week based on an article they read, a suggestion from a friend, news that a competitor is doing something, or even just on which way the wind blows. Sending employees scrambling in a different direction every week is counter-productive. Set long term goals, set programs and processes in place, and stick with them for at least six months to give them a chance.

3) If it takes too long to get stuff approved, here’s your sign! Efficient businesses demand efficient processes. If it takes a committee to get anything approved, or if employees aren’t following the processes in place, it’s a problem and there’s probably a reason. Do your processes need to be reviewed? What’s really slowing down employee productivity?

4) If you’re not rewarding your employees for innovation or hard work, here’s your sign! In general, it’s fair to expect employees to do their job without complaint. But if someone comes up with an innovative idea, or if an employee delivers results that you know must have taken extra hard work, reward them! Nobody wants to work somewhere if they don’t feel appreciated.

5) If you have high turnover, here’s your sign! Now I realize the retail automotive industry has higher turnover than most, but why is that? If you have more employees quitting than are leaving because of lay-offs, chances are there’s something wrong with your corporate culture. What is it? Conducting exit surveys is one way to find out; or it may require a little digging.

Fostering a positive work environment makes for happy employees, which in turn leads to happy—and loyal—customers. Have you taken a close look at your corporate culture lately? What do you think are signs of poor employee morale?

What’s the most incredible act of customer service you have ever performed for a customer, and did it inspire their undying loyalty? In this story by Peter Shankman, he recounts how after a long travel day he boarded a plane, tired and hungry. As a joke, he tweeted out to Morton’s steakhouse to please have a Porterhouse waiting for him at the airport when he landed. Of course he was not expecting any response, but guess what? At the airport Morton’s was there, waiting for him with a Porterhouse.

Shoe purveyor Zappos is also well-known for its great customer service. When this blogger’s mother was suffering from health issues and related problems with her feet, she had to return some shoes to Zappos and ended up getting into a long conversation with the customer service agent. The customer service person sent a bouquet of flowers to the mother and gave the mother, daughter and sister VIP memberships. The sister vowed to buy every pair of shoes from Zappos from then on.

And there’s the famous example of Southwest Airlines holding a plane flight for a grandfather who was flying to Denver to see his three-year old grandchild who had been beaten to death by his daughter’s live-in boyfriend, and who was scheduled to be taken off life support that night. When the grandfather arrived at the gate twelve minutes late for his flight he was shocked to find the plane still there. The pilot said, “They can’t go anywhere without me and I wasn’t going anywhere without you.” Cost of delaying flight: who knows and who cares? The knowledge that Southwest did the right thing and the amount of goodwill it created: priceless.

Of course, you don’t have to be a restaurant, retailer or an airline to provide outstanding customer service. Opportunities exist every day in your dealership. When was the last time you dealt with an upset customer or noticed that a customer seemed stressed? What did you do? Did you avoid them, get defensive, or did you ask questions so you would understand their concerns, stresses, problems or fears? Then did you go out of your way to provide a service that was above and beyond what was expected?

What is the best customer service experience that you have ever had, and did it inspire your loyalty to that company? What acts of customer service have you or your co-workers provided that created loyal customers for your dealership?

What’s the most incredible act of customer service you have ever performed for a customer, and did it inspire their undying loyalty? In this story by Peter Shankman, he recounts how after a long travel day he boarded a plane, tired and hungry. As a joke, he tweeted out to Morton’s steakhouse to please have a Porterhouse waiting for him at the airport when he landed. Of course he was not expecting any response, but guess what? At the airport Morton’s was there, waiting for him with a Porterhouse.

Shoe purveyor Zappos is also well-known for its great customer service. When this blogger’s mother was suffering from health issues and related problems with her feet, she had to return some shoes to Zappos and ended up getting into a long conversation with the customer service agent. The customer service person sent a bouquet of flowers to the mother and gave the mother, daughter and sister VIP memberships. The sister vowed to buy every pair of shoes from Zappos from then on.

And there’s the famous example of Southwest Airlines holding a plane flight for a grandfather who was flying to Denver to see his three-year old grandchild who had been beaten to death by his daughter’s live-in boyfriend, and who was scheduled to be taken off life support that night. When the grandfather arrived at the gate twelve minutes late for his flight he was shocked to find the plane still there. The pilot said, “They can’t go anywhere without me and I wasn’t going anywhere without you.” Cost of delaying flight: who knows and who cares? The knowledge that Southwest did the right thing and the amount of goodwill it created: priceless.

Of course, you don’t have to be a restaurant, retailer or an airline to provide outstanding customer service. Opportunities exist every day in your dealership. When was the last time you dealt with an upset customer or noticed that a customer seemed stressed? What did you do? Did you avoid them, get defensive, or did you ask questions so you would understand their concerns, stresses, problems or fears? Then did you go out of your way to provide a service that was above and beyond what was expected?

What is the best customer service experience that you have ever had, and did it inspire your loyalty to that company? What acts of customer service have you or your co-workers provided that created loyal customers for your dealership?

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

This metric measures the number and percentage of loyalty program members who purchased their second vehicle from the host loyalty dealership. Dealers say that loyalty programs, which allow members to apply their rewards dollars toward vehicles purchases, truly work. Driving repeat sales is easier when using incentives redeemed from an existing customer base.

An analysis of member repurchase habits in 72 dealerships with loyalty programs revealed the following:

• ŸAverage number of member new vehicle re-purchases per year per dealer: 126

  

• Ÿ Percent of members who have re-purchased a new vehicle from the original selling dealer: 12.4%
• Ÿ Average number of member pre-owned vehicle re-purchases per year per dealer: 58
• Ÿ Percent of members who have bought a subsequent pre-owned vehicle from original selling dealer: 4.7%

How do these figures compare to your re-purchase rates from customers who are not members of loyalty programs?

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.”

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

This metric measures the number and percentage of loyalty program members who purchased their second vehicle from the host loyalty dealership. Dealers say that loyalty programs, which allow members to apply their rewards dollars toward vehicles purchases, truly work. Driving repeat sales is easier when using incentives redeemed from an existing customer base.

An analysis of member repurchase habits in 72 dealerships with loyalty programs revealed the following:

• ŸAverage number of member new vehicle re-purchases per year per dealer: 126

  

• Ÿ Percent of members who have re-purchased a new vehicle from the original selling dealer: 12.4%
• Ÿ Average number of member pre-owned vehicle re-purchases per year per dealer: 58
• Ÿ Percent of members who have bought a subsequent pre-owned vehicle from original selling dealer: 4.7%

How do these figures compare to your re-purchase rates from customers who are not members of loyalty programs?

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.”

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.”

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.”