Are Loyalty Programs Worth the Effort? “Yes”

Mike Martinez

By Mike Martinez

Dealers often question the need for a points-based customer loyalty program for their business. The real question isn’t whether or not you need one – which you do – but how to move beyond a traditional loyalty program structure to something designed with the needs of the customer and the dealer in mind.

DMEautomotive’s white paper, “Marketing Success in a Changing Loyalty Landscape,” validates loyalty programs as a highly viable strategy with consumer interest and a high potential for turning disloyal customers into customer loyalists.

For dealer loyalists, a loyalty program was among the top 10 most important service provider attributes with 34% saying they would be likely to participate.  Since loyalists care about loyalty programs you risk losing your most valuable customers if your competitor has a program and you don’t.

For years dealers have struggled implementing easy, effective customer loyalty programs. The good news is you don’t need to change any of your operational processes to deliver any of the most desired features of a loyalty program to customers – including discounts on parts and services, special savings events, and the ability to earn rewards points. Keep it simple for you and your customers. All of this can be done through direct marketing communications. Tracking points doesn’t require any store process change either. Today many leading automotive CRM systems and marketing companies offer the ability to manage points.

With the emergence and growth of mobile apps for dealerships, consumers can now easily manage their loyalty points at their fingertips via their smartphone. According to Pew Research center 46% of all adults now own a smartphone. Mobile apps are the ultimate platform for making future loyalty programs SUPER customer friendly.

  •  When it comes to loyalty programs remember:
  • Loyalty programs are an important tool in retaining you most valuable customers
  • Keep the program simple for your dealership to implement
  • Keep the program simple for your customers to use

Keep these things in mind and your loyalty program will be an easy success.

Mike Martinez is Chief Marketing Officer of DMEautomotive, the industry leader in science-based, results-driven automotive marketing that provides a range of marketing services to the biggest and most innovative automotive organizations in the industry. For more information, email info@dmeautomotive.com.

 

 

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