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From dealers to manufacturers to parts companies, automotive businesses worldwide are exploring new tactics to boost revenue in an increasingly volatile and unpredictable market. One of these strategies for dealerships is an auto repair loyalty program designed to enhance customer retention and lifetime value, transforming customers into long-term brand ambassadors.
However, not all dealers know where to begin, what rewards are most attractive, or how best to reach out to customers in today’s digital landscape. This article discusses five such strategies.
5 Auto Repair Loyalty Program Strategies
All dealers should consider the following five loyalty program tactics:
1. Get the Word Out
Once a dealership has an auto repair loyalty program up and running, they should look to spread the news as soon as possible.
Communication methods might include:
- In-store marketing. Dealers might place signage at the front desk or entrance/exit doors to promote the program, which can remind and encourage customers to return for their next service or vehicle purchase.
- Email campaigns. Dealers should have customer email addresses on file. Sending direct messages to introduce a loyalty program to those mailing list subscribers is a fast and efficient means to spread information.
- Social media posts. A new loyalty program provides excellent content for social media posts. Dealers might reach out to followers and potential clients to generate excitement about these new programs.
2. Make Enrollment Easy
Customers cannot join a dealership’s loyalty program without access, so dealers should integrate enrollment options into as many platforms as possible.
These channels might include:
- On the dealership website
- On social media platforms
- Via an email or text message campaign
- In-person during a visit to the dealership
The goal is to offer multiple enrollment options to make joining as simple as possible.
3. Make Rewards Attainable
Customers join loyalty programs to take advantage of as many benefits as possible. However, those rewards are only valuable if customers can attain them.
As such, dealers should provide these rewards in multiple ways, which might include:
- Points. Customers earn points for purchases they can later use for free or discounted services.
- Frequency cards. After each purchase, customers receive a physical or digital stamp, leading to a complimentary service or discount.
- Refer a friend. Customers can refer a friend and receive a discount code good for redemption if that friend utilizes the dealership’s services. Referrals are an excellent way to encourage positive word-of-mouth promotion.
- Cash Back. Customers receive points that are redeemable for a predetermined amount of money.
- Non-monetary benefits. Customers who earn a certain number of points or progress to the next tier receive a free service or a discount.
- Community rewards. Dealers might work with neighboring local establishments to offer discounts to repeat customers.
Regardless of its nature, every loyalty program should use multiple strategies to encourage customers to use the dealership’s services. Dealers can also use more than one of these strategies to develop a comprehensive approach.
4. Make Rewards Transferable
Dealers should avoid correlating customer benefits with a single vehicle and instead expand rewards to the entire household. Many families have multiple cars, and their loyalty program should be transferable between vehicles. Inclusion can encourage customers to bring in family members’ cars when they need service.
5. Partner with a Knowledgeable Solutions Provider
Developing an auto repair loyalty program can be time and resource-consuming. Fortunately, dealers have access to digital tools that can help them streamline the process while keeping track of members and program performance.
- Increase retention through personalized rewards offerings
- Provide enrollment and communication options via multiple channels
- Quickly identify and denote loyalty program members with service appointments
- Enable members to track point status at any time
- Manage member accounts and view activity via a single interface
Choose Your Auto Repair Loyalty Program Wisely
These strategies should help dealers design a loyalty program that promotes customer retention and boosts service revenue. The keys are driving customer awareness, providing easy enrollment, and ensuring attainability.
However, choosing the right software that provides the above services is equally necessary. Without the best and most up-to-date technology, your dealership might lose ground to competitors who have gained a digital edge.
Contact us today and discover how Affinitiv’s Loyalty solutions can help your dealership generate repeat sales and service business by building long-term and rewarding customer relationships.
All | September 19, 2023