Automotive Digital Marketing

Professional Community for Car Dealers, Marketing, Advertising and Sales Leaders

Loading... Be Patient!

Rewards Programs Mean More than Just Rewards

Rewards programs are indisputably a staple in common society. Most retailers have them and consumers have come to expect them.

 

The problem is that most retailers view rewards programs as an expense, rather than a revenue generator. Sure, there are discounts and other things that come along with rewards programs – and those are the “expenses” some retailers focus on – but there’s one big missing.

 

Branding.

 

Have you ever seen someone with a keychain full of loyalty cards? Every one of those is attached because that individual either regularly shops at those places or plans to. Nobody attaches loyalty cards to their keychain or sticks them in their wallets for businesses they have no intention of ever visiting again.

 

Let’s look at it from a retail automotive perspective.
How much does it cost to attach those personalized paper plates, license plate frames or metallic logos to the vehicles you sell? It’s not cheap, right? But you do it because every vehicle rolling down the road with your logo on it is advertising! Whether it’s conscious or subliminal, or whether those buyers driving down the street with your logo love you or hate you, the potential customer viewing it simply sees the logo and the fact that the car buyer CHOSE your dealership. And that’s what matters.

 

Rewards programs offer the same type of promotion.
Those loyalty tags hanging from keychains get noticed… and even if they aren’t that apparent to others, the branding and top-of-mind stays with the owner.

 

Assuming your loyalty program is in fact attractive to your customers, they will continue to come back.
Set up properly, they will not only come back, but come back more often. Consumers love to rack up points towards rewards that matter to them. All you need do is ensure that your rewards matter… and that your rewards program is branded. Just like those license plate frames.

 

Rewards programs aren’t designed to lose revenue but to increase it while building customer loyalty and retention. It’s a well-known fact that at businesses make more money from retention than acquisition, yet many dealers are willing to spend $650+ to acquire a new customer, while cringing at giving an oil change away to a loyal one.

 

Take care of those that take care of you.
These loyal customers can bring in more business than any efforts to acquire new customers while fighting the independents. If you keep them happy enough, they won’t even consider going anyplace else.

Views: 95

Tags: PLG, automotive, best, customer, dealership, experience, loyalty, management, practices, principle, More…program, retail, retention, rewards

Comment

Oops... You need to stop "Lurking" on ADM and become a more genuine Automotive Professional by completing your membership registration. As a registered ADM Member, you can post comments, publish your own articles (be a star!) and start Forum discussions. Stop being an online "Peeping Tom" and JOIN ADM RIGHT NOW!

Join Automotive Digital Marketing

Automotive Professional Network and Resource Exchange for Car Dealers, Managers, OEM and Marketing Practitioners seeking Best Practices.

ADM Sponsor

Please Consider Automotive Marketing Professional Community Sponsors

ADM Badge

Loading…

Based On Your Interests...

ADM Consulting, LLC

Onsite/Offsite Combination ADM Consulting, LLC Professional Services
Select the maximum monthly investment you plan to make
$USD
Sign up for

Automotive Marketing Tools

Get ADM Toolbar

Click here to take the ADM Member Survey

ADM Events

December 2019
SMTWTFS
1234567
891011121314
15161718192021
22232425262728
293031
       

Getting too many emails from ADM? Click mailbox below to control which types of alerts and updates you are sent......


Instagram

Top Automotive Marketing Forum Discussions

Share the Best Content w/AutoMarketing Community

© 2019   Created by Ralph Paglia.   Powered by

ADM Badges  |  Report an Issue  |  Terms of Service