There are countless opportunities for participating in customer loyalty programs. When merchants reward their customers for purchasing from them, they gain a positive reputation and endless customer retention.
Loyalty programs are powerful customer retention tools, altering consumers’ perspective of businesses they consider buying from. Well-organized and marketed loyalty programs reveal the value a business offers its consumers. This earned fidelity builds longer-lasting relationships that convert to tangible, repeatable business opportunities.
For the auto retailer using a third-party loyalty program, the results can be significant.
• Retention increases upwards of 20% or more
• 50% return rate from customers engaged in the dealership’s loyalty program
• Increases of .5 hours per RO due to repeat customers
Despite these powerful statistics, nearly three-quarters of all dealers in America remain reluctant to adopt a loyalty program as part of their business practices.
• Dealers are often unclear about the benefits of integrating a loyalty program into their business
• Dealers who understand the value of a loyalty program are sometimes confused about these programs’ structures and processes, and how to implement such a program throughout the dealership. Thus, they forgo setting one up for themselves.
• Dealers are often unclear about what they should expect from a loyalty program, and how to successfully operate it once it’s installed
The Auto Retailer’s Ultimate ‘How-to’ Guide to Customer Loyalty & Retention Program Setup, Management & Measurement describes the who, what, when, where and why of successful auto retailer loyalty programs. It’s informative, instructive, and helpful when considering a loyalty program for a dealership.