If you fly, buy pet food or dine out, you probably participate in a customer loyalty program. Chances are, because these and other merchants reward you for shopping with them, you tend to return to them frequently when you’re ready to repurchase.
Loyalty programs are powerful customer retention tools. They work by changing customer behavior. Well-organized, administered and marketed loyalty programs create among customers a higher perceived and real value in a business. This earned loyalty builds longer-lasting relationships that convert to sustainable, repeatable business opportunities.
For the auto retailer using a third-party loyalty program, the results can be significant:
• Retention increases of 20% and more
• 50% return rate from customers engaged in the dealership’s loyalty program
• Increases of .5 hours per RO from repeating customers
Despite these powerful outcomes, nearly three-quarters of all dealers in America
remain reluctant to adapt a loyalty program as part of their business practices. Our experience working with dealers to help them better understand loyalty program dynamics reveals why:
• Dealers are often unclear about why a loyalty program is a process they should integrate 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
• Dealers are often unclear about what they should expect from a loyalty
program once installed and operating in their business
This eBook, 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. We trust you will find it informative, instructive, and helpful as you consider a loyalty program for your dealership.