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Build Loyalty with Five Metrics: #5—Member Repurchase Intent

Dealerships with the most effective loyalty programs drive results in five key areas: marketing responsiveness, sales-to-service conversion, service visitation, retail member spend and member repurchase intent.


This is the final blog in a five-part series where I explain how loyalty programs improve each of these metrics. Last week I touched on retail member spend.  This week’s topic is member repurchase intent.


This metric measures the number and percentage of loyalty program members who purchased their second vehicle from the host loyalty dealership. Dealers say that loyalty programs, which allow members to apply their rewards dollars toward vehicles purchases, truly work. Driving repeat sales is easier when using incentives redeemed from an existing customer base.


An analysis of member repurchase habits in 72 dealerships with loyalty programs revealed the following:


  • Ÿ Average number of member new vehicle re-purchases per year per dealer: 126
  • Ÿ Percent of members who have re-purchased a new vehicle from the original selling dealer: 12.4%
  • Ÿ Average number of member pre-owned vehicle re-purchases per year per dealer: 58
  • Ÿ Percent of members who have bought a subsequent pre-owned vehicle from original selling dealer: 4.7%


How do these figures compare to your re-purchase rates from customers who are not members of loyalty programs?


More information on this topic can be found in our free ebook, “The Hard Facts and Financial Impact Report: Auto Dealership Loyalt...


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Tags: customer, loyalty, repeat, retention, sales, service


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