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Do customer loyalty programs work? A popular national chicken franchise spends more money on its loyalty program to retain customers for its $2 sandwiches than most dealerships spend to retain customers for $60,000 vehicles purchased from them. Does this make any sense?


Yet I hear all the time from dealers who are unsure about the benefits of customer loyalty programs and want to see hard facts about the ROI.


Well, now they can. In our newly released, free ebook titled “The Hard Facts and Financial Impact Report: Auto Dealership Loyalty Programs & The Effects They Have on Profitability,” we analyzed results from 72 dealerships using loyalty programs, along with over 6 million repair order transactions over a period of 26 months.


Here are some of the findings. Members of loyalty programs in dealerships:


- Visit their service department every 4.26 months versus every 6.82 months for non-members

- Visit their service department more often: 2.82 times per year compared to 1.76 annual visits for non-members

- Spend an average of $662.01 annually compared to $336.63

- On average, dealerships enrolling customers in loyalty programs sell an additional 15 vehicles a month to customers redeeming rewards points/dollars toward those purchases.


The ebook also profiles several dealers who talk candidly about their experiences and success with loyalty programs. Are you convinced yet? Want more facts? Download our free ebook here



Views: 35

Tags: CSI, customer, loyalty, retention


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