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