I have written several blogs in the past about the success of customer loyalty program promotions in auto dealerships. I am mainly interested in cost-effective actions that dealers can successfully use to help drive profits.

A recent Summer Service Special email promotion designed and delivered by LoyaltyTrac, a leading points-based loyalty program provider, caught my eye because of the high success rate. It had a remarkable open rate of over 26% and also produced a substantial amount of service appointment bookings and profit – the campaign returned excellent results.

Ad agency quality emails were sent to a highly targeted group of reward program members, with the direct Subject Line: “Sizzling Summer Specials – Oil Change and A/C”.

The email was short and to the point and also included a link to make it easy for the reader to immediately schedule a service appointment with just a click of the mouse.

Richfield Bloomington Honda sent out 5,803 messages of which 1,542 were opened – a very healthy open rate of 26.57% -- double the DMA (Direct Marketing Association) average of 12-14% for opt-in lists. As a result the dealership scheduled 60 service appointments online – just by having the “Click Here to Schedule Service” button visible and distinct. This email campaign generated more than $14,000 in revenue in one week – and this is just from the customers who booked directly through the email!

Jason Weverka, Service Manager at Richfield Bloomington Honda, stated “We are having a great response on the campaign. A lot of people are coming in with the printed offer; it has been very successful. I really liked the oil change and the A/C specials for the summer.”

Glenbrook Hyundai ran the same campaign to a smaller customer base. It sent out 915 emails of which 246 were opened – again a great open rate of 26.89%.  The campaign also resulted in 16 service appointments scheduled to date online.

As these results show, communicating seasonal offers to your customers can be highly effective. Customers welcome relevant messages that have value to them. The key is to send well-written, targeted messages to the right people at the right time. Keep it short and to the point. Engage users with a straightforward email subject line and content that is informative, easy to digest and adds perceived value.

I have written several blogs in the past about the success of customer loyalty program promotions in auto dealerships. I am mainly interested in cost-effective actions that dealers can successfully use to help drive profits.

A recent Summer Service Special email promotion designed and delivered by LoyaltyTrac, a leading points-based loyalty program provider, caught my eye because of the high success rate. It had a remarkable open rate of over 26% and also produced a substantial amount of service appointment bookings and profit – the campaign returned excellent results.

Ad agency quality emails were sent to a highly targeted group of reward program members, with the direct Subject Line: “Sizzling Summer Specials – Oil Change and A/C”.

The email was short and to the point and also included a link to make it easy for the reader to immediately schedule a service appointment with just a click of the mouse.

Richfield Bloomington Honda sent out 5,803 messages of which 1,542 were opened – a very healthy open rate of 26.57% -- double the DMA (Direct Marketing Association) average of 12-14% for opt-in lists. As a result the dealership scheduled 60 service appointments online – just by having the “Click Here to Schedule Service” button visible and distinct. This email campaign generated more than $14,000 in revenue in one week – and this is just from the customers who booked directly through the email!

Jason Weverka, Service Manager at Richfield Bloomington Honda, stated “We are having a great response on the campaign. A lot of people are coming in with the printed offer; it has been very successful. I really liked the oil change and the A/C specials for the summer.”

Glenbrook Hyundai ran the same campaign to a smaller customer base. It sent out 915 emails of which 246 were opened – again a great open rate of 26.89%.  The campaign also resulted in 16 service appointments scheduled to date online.

As these results show, communicating seasonal offers to your customers can be highly effective. Customers welcome relevant messages that have value to them. The key is to send well-written, targeted messages to the right people at the right time. Keep it short and to the point. Engage users with a straightforward email subject line and content that is informative, easy to digest and adds perceived value.

A new survey reveals that mobile and social media have a growing influence on retail purchase decisions. Here is a summary of the Consumer Insight Panel survey results conducted by Empathica, Inc. and published in a recent blog on Loyalty 360 (Loyalty Marketer’s Association):

- Half of consumers with smartphones have looked for online reviews about a retailer during a visit

- 55% of smartphone users have used their devices to check prices while shopping, and price comparison is the most common use for mobile technology in retail locations

Ÿ- The next most popular uses for smartphones while shopping include scanning a QR code (34%) and writing a review (9%).

Ÿ-  37% of consumers have used their mobile phones to visit a brand’s website

Ÿ- Nearly 75% of consumers use Facebook to make retail or restaurant decisions

Ÿ- Half of all consumers have tried a new brand due to social media recommendations

Ÿ- 26% of consumers said they would definitely avoid shopping at a store if they read a negative online review; however, negative reviews don’t necessarily dissuade consumers from trying a brand if the overall online presence is positive

Ÿ- Eighty-two percent of consumers are willing to engage retail and restaurant brands in online conversations if they believe it will improve future experiences, but only 62 percent believe that brands monitor online conversations and just 30 percent think that brands act on customer feedback.

The conclusion of the survey is that brands who are ignoring the use of mobile technology and social media are missing out on key opportunities to connect with customers. Also, monitoring, responding to and acting on customer feedback via social media is becoming more critical to building a loyal customer base.

As a retail owner, if you don’t understand how to implement an effective social media program or how to create a mobile presence, it’s time to find someone who does. It’s clear that retail brands that are effectively integrating these marketing tools are gaining an edge.

What mobile apps are your store using and do you track the traffic? What kind of results are you getting? How does your store effectively monitor, respond to and most important, act upon social media feedback?

A new survey reveals that mobile and social media have a growing influence on retail purchase decisions. Here is a summary of the Consumer Insight Panel survey results conducted by Empathica, Inc. and published in a recent blog on Loyalty 360 (Loyalty Marketer’s Association):

- Half of consumers with smartphones have looked for online reviews about a retailer during a visit

- 55% of smartphone users have used their devices to check prices while shopping, and price comparison is the most common use for mobile technology in retail locations

Ÿ- The next most popular uses for smartphones while shopping include scanning a QR code (34%) and writing a review (9%).

Ÿ-  37% of consumers have used their mobile phones to visit a brand’s website

Ÿ- Nearly 75% of consumers use Facebook to make retail or restaurant decisions

Ÿ- Half of all consumers have tried a new brand due to social media recommendations

Ÿ- 26% of consumers said they would definitely avoid shopping at a store if they read a negative online review; however, negative reviews don’t necessarily dissuade consumers from trying a brand if the overall online presence is positive

Ÿ- Eighty-two percent of consumers are willing to engage retail and restaurant brands in online conversations if they believe it will improve future experiences, but only 62 percent believe that brands monitor online conversations and just 30 percent think that brands act on customer feedback.

The conclusion of the survey is that brands who are ignoring the use of mobile technology and social media are missing out on key opportunities to connect with customers. Also, monitoring, responding to and acting on customer feedback via social media is becoming more critical to building a loyal customer base.

As a retail owner, if you don’t understand how to implement an effective social media program or how to create a mobile presence, it’s time to find someone who does. It’s clear that retail brands that are effectively integrating these marketing tools are gaining an edge.

What mobile apps are your store using and do you track the traffic? What kind of results are you getting? How does your store effectively monitor, respond to and most important, act upon social media feedback?

Pre-paid Maintenance Plans (PMPs) keep customers returning to your service department and increase upsell opportunities, which is critical to increasing the service bottom line. Today’s self-administered, self-managed PMPs are appealing to customers, particularly those buying mainline domestic and import brands who seek value in everything they buy.

Today’s technology-driven plans make it very easy for dealers to customize what is offered in a PMP. Plans that provide the product (value) important to the local market will appeal more to buyers, making their presentation and sale in the F&I office or service lane more profitable and successful for the dealership.

It is these plans’ ability to retain a customer’s service business and then create upsell opportunities for additional customer-pay repair order (RO) business that make them like a money tree. These programs can triple the likelihood of the customer continually returning for service – a big growth over the 18 to 20 percent of customers who do traditionally return with a PMP’s incentive.

By converting PMP owners’ prepaid maintenance work to additional legitimate service needs, the additional retail parts and labor can produce healthy additional business. Some dealers report an additional $150 to $350 of up-sold retail customer-pay business per RO as a result.

Every plan will experience forfeiture. It results when a customer terminates the plan early or for whatever reason does not use the plan. In some PMPs, the third-party administrator holds this dealer-funded reserve. It is from this reserve that the administrator would often take up to 60 percent of the value of the cancelled services as part of its fee structure. Today’s self-managed plans enable the dealer to processes forfeiture through the general accounting ledger and add the reserve to their own bottom line.

For more information about the benefits of Pre-Paid Maintenance Programs, visit http://ow.ly/bN7Gj

Pre-paid Maintenance Plans (PMPs) keep customers returning to your service department and increase upsell opportunities, which is critical to increasing the service bottom line. Today’s self-administered, self-managed PMPs are appealing to customers, particularly those buying mainline domestic and import brands who seek value in everything they buy.

Today’s technology-driven plans make it very easy for dealers to customize what is offered in a PMP. Plans that provide the product (value) important to the local market will appeal more to buyers, making their presentation and sale in the F&I office or service lane more profitable and successful for the dealership.

It is these plans’ ability to retain a customer’s service business and then create upsell opportunities for additional customer-pay repair order (RO) business that make them like a money tree. These programs can triple the likelihood of the customer continually returning for service – a big growth over the 18 to 20 percent of customers who do traditionally return with a PMP’s incentive.

By converting PMP owners’ prepaid maintenance work to additional legitimate service needs, the additional retail parts and labor can produce healthy additional business. Some dealers report an additional $150 to $350 of up-sold retail customer-pay business per RO as a result.

Every plan will experience forfeiture. It results when a customer terminates the plan early or for whatever reason does not use the plan. In some PMPs, the third-party administrator holds this dealer-funded reserve. It is from this reserve that the administrator would often take up to 60 percent of the value of the cancelled services as part of its fee structure. Today’s self-managed plans enable the dealer to processes forfeiture through the general accounting ledger and add the reserve to their own bottom line.

For more information about the benefits of Pre-Paid Maintenance Programs, visit http://ow.ly/bN7Gj

 Last month General Motors announced a new compensation structure based on customer retention. The pay plan affects 29,000 salaried employees in the U.S., who will be paid bonuses based on how well they promote customer loyalty through return purchases and services. Third-party sales data and internal numbers will determine if a dealership hits its loyalty target.

It’s nice to know that the major manufacturers are realizing the importance of customer loyalty. For General Motors’—and other—dealerships who are ramping up their customer loyalty programs, here is a very short primer on how to set up a successful program:

1) Strategy: Offer multiple membership levels, including a free “starter” base level offer, ascending to an advocate level for the best customers who frequently buy and refer friends. The goal is to create customers who talk positively about their experience and refer family and friends.

2) Process: Identify dealership market segments; design appropriate promotions and communications; establish a schedule for customer communications; design the rewards redemption process and program results measurement tools; train employees to properly promote & explain the program.

3) Management: Establish best practices and determine how much of your program you want to automate. Assign management duties for each part of the program.

4) Reporting & Measuring: Determine which metrics should be used to provide an accurate analysis of how the program is benefiting the dealership. Examples include increasing customer retention rates, decreasing service acquisition costs, selling more maintenance, i.e. increasing RO hours and revenue.

Excerpted from MediaTrac’s white paper:  “The Auto Retailer’s Ultimate ‘How-to’ Guide to Customer Loyalty & Retention Program Set Up, Management & Measurement.” To download your free copy, click here: http://www.drivingretention.com/?p=661

 Last month General Motors announced a new compensation structure based on customer retention. The pay plan affects 29,000 salaried employees in the U.S., who will be paid bonuses based on how well they promote customer loyalty through return purchases and services. Third-party sales data and internal numbers will determine if a dealership hits its loyalty target.

It’s nice to know that the major manufacturers are realizing the importance of customer loyalty. For General Motors’—and other—dealerships who are ramping up their customer loyalty programs, here is a very short primer on how to set up a successful program:

1) Strategy: Offer multiple membership levels, including a free “starter” base level offer, ascending to an advocate level for the best customers who frequently buy and refer friends. The goal is to create customers who talk positively about their experience and refer family and friends.

2) Process: Identify dealership market segments; design appropriate promotions and communications; establish a schedule for customer communications; design the rewards redemption process and program results measurement tools; train employees to properly promote & explain the program.

3) Management: Establish best practices and determine how much of your program you want to automate. Assign management duties for each part of the program.

4) Reporting & Measuring: Determine which metrics should be used to provide an accurate analysis of how the program is benefiting the dealership. Examples include increasing customer retention rates, decreasing service acquisition costs, selling more maintenance, i.e. increasing RO hours and revenue.

Excerpted from MediaTrac’s white paper:  “The Auto Retailer’s Ultimate ‘How-to’ Guide to Customer Loyalty & Retention Program Set Up, Management & Measurement.” To download your free copy, click here: http://www.drivingretention.com/?p=661

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?