Rewarding your Customer
The key component of any Loyalty Program is Rewards! A simple, effective, low cost, commonly accepted practice in retail is to reward customers for their business. Dealership For Life makes this so simple that it is practically “hands-off” in its application. Through this process, you brand your Dealership and give each customer an incentive to return to your business to receive their rewards. Keeping your customer in your Service/Parts Department after the sale provides you with greater opportunities for re-purchase and a supply of excellent pre-owned inventory. The most successful dealers reward their customers and provide a level of service that is second to none. This combination simply cannot be beat.
Point-Of Sale Incentives:
Encouraging your customer to give your Service/Parts Department an opportunity to provide them with great service is always a challenge. Providing them with an Oil/Filter change and Tire Rotations at no cost during the first year has proven to be a primary motivator. You couple this with a low cost pre-paid maintenance program, which is introduced at vehicle purchase and followed up by Service, is a fail-safe way to increase profitability and ensure you receive their business.
Leading-edge Dealers, looking for long-term retention, provide some type of Engine/Powertrain Guarantee for as long as the customer owns the vehicle. This gives the customer peace of mind that he does not have to worry about a catastrophic failure. The only requirement is that the customer have all the manufacturer recommended services performed according to time/mileage. The customers in your Primary Market Area will return to your business since you have a vested interest in making sure they are satisfied and ease of submitting any claims.
A combination of all the above has produced retention numbers more than 90% and a long-term relationship with the customer. Dealers are seeing their opportunity for re-purchase go from an average of 36% to over 86%! Additionally, our analysis of Service/Parts profitability shows that a customer who is a member of a Loyalty Program will spend more per repair order than a customer who is not a member. The range we see is a minimum of $12 up to $236 per repair!
Latest posts by Samantha Smiles (see all)
- Rewarding your Customer - October 5, 2021
- It is more than just a word - December 5, 2019
- Hidden Profit Centers - September 3, 2019