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Utilize a Rewards Program to Increase Marketing ROI

98% of Customers Who Join a Rewards Program Provide an Email Address

Email Open Rates for Reward Members are 300% Higher Than Non-Members

Dealerships That Provide an Incentive for Customers to RETURN After a Visit Have a 20% Increase In Sales

Statistics Show a 35% Service Visit Increase with Rewards Members

Members Spend 11% More Annually on Service When Participating in a Rewards Program

I think it’s pretty obvious after seeing those numbers that having a Rewards Program in place can more than triple the overall profit for your dealership.


Customers are always looking for the best deal and the best ways to save money. When you offer a rewards program, you are giving your customers what they want. The upside for you? You create loyal, repeat customers that will return to your dealership time and time again and spend more money while doing it. What’s not to love? By contacting a third-party provider, like LoyaltyTrac to help you setup a successful rewards program, you can increase your customer base and profit.


Also, there is a huge marketing potential for your rewards members. With statistics showing a 300% increase in email open rates, you better have a marketing strategy in place to reach your rewards customers.


Offer special incentives to only your rewards members – like an extra 15% off their next service visit or double their reward points for that entire month.


It is important not to SPAM your reward members. Each customer’s email address is like gold, so don’t blow it by dumping ten or more emails a month into their mailbox. They won’t appreciate it and neither will your bank account. Instead, offer thought-out marketing campaigns each month that have a specific focus and offer real value to your rewards members. Take time to sit down and plan out your marketing strategy for the next two months, or even the whole year and craft engaging content.


By utilizing your rewards members through your email marketing, you will more than triple the ROI for your efforts.


What are some of the successes you have had with your rewards program? How are you utilizing your rewards program to grow your dealership?

Views: 300

Tags: ROI, customers, dealership, marketing, program, revenue, rewards


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Comment by Mike Gorun on April 15, 2013 at 10:03am

Thanks for the comments, Larry!

Comment by Larry Bruce on April 15, 2013 at 7:39am

Interesting numbers Mike. Our own studies would corroborate those for simple dealership loyalty programs...SIMPLE being the operating word there. 

In order to get the value from a loyalty program the customer has to understand the loyalty program. That is one of the biggest mistakes of the dealership loyalty programs I have seen they are too complicated and the customer cannot easily discern the value. 

At it's core a reward program is a behavior marketing tactic, paying for a behavior you want IE in this case loyalty. 

That said here are some other stats that might be useful when talking Reward Programs & Incentivized Behavioral Marketing:

1. Lead increase is avg. 60% higher when you offer a reward for doing so.

2. Show increase is 360% higher when you offer a reward for doing so. 

3. THIS IS A BIG ONE! Sale ratio is 413% higher when you fulfill that reward on the spot WITH OUT ASKING FOR ANYTHING IN RETURN. 

4. Avg. Gross Profit is 26% higher on customer who come in to the dealership with an incentive or reward as it is called here. 

bottom don't limit your thinking when it comes to incentiveized or reward based behavioral marketing. Think about the behaviors you want and use rewards to get all of them. You'll sell more cars and your cost per sale will be dip way below average. 

Remember "People buy from people not from websites" until you get a customer to engage with you... you have no shot to sell them anything. 

For more on this check a recent blog post I wrote "The Value of a Promise Kept"

Thanks for the post mike a good read. 

Comment by Ken Luna on April 10, 2013 at 6:46am

A new wrinkle is using an electronic gift card offer (i.e. Itunes, Starbucks) to encourage customers to come in for Service work. This is basically a link of an email to a microsite with a customized pop over. Some care needs to be taken in the valuation of the card (usually no more than $10) unless it is tied to some major type Service work. Also, if the dealership's Service Advisors are weak at upselling then don't bother. Fix that first.  

Comment by Mike Gorun on April 9, 2013 at 2:16pm

Thanks for the kind words, Alexander! 

Comment by Alexander Lau on April 9, 2013 at 7:37am

Mike, this is a fantastic article, IMO. It's no secret, most retailers apply similar techniques and I would presume (based upon the staying power) for their benefit. E-mail addresses alone, so much can be done with them at this point.

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