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Automotive Customer Loyalty Programs

Marketing experts agree that retaining customers at your Car Dealership is far easier than acquiring them. If that’s the case, then why do so many auto dealers spend so much money on marketing to new customers and so little on loyalty programs for existing customers?

The Value of Customer Loyalty Programs for Your Car Dealership

Here are the key elements to a customer loyalty program:

* Customer repeat buying behavior
* Customer referrals to friends, family, and co-workers
* Customer’s commitment to your dealership relationship
* Customer trust
* Customer spends more money over time
* Customer satisfaction

Basically your loyal customers pay, stay and refer to others. This in turn brings more profit into your dealership.

Justifying A Customer Loyalty Program

According to a marketing Metrics study, the average dealership has a 60-70% success rate for repeat sales with an "active customer:; a 10-15% chance of repeat sale to a "lost customer"; and only a 5-15% chance of sale to a prospective customer.

Loyal customers always tend to spend more money at your dealership and refer others. Does it not make sense to entertain a good loyalty program? A good loyalty program will improve your dealership profits, grow your revenue and greatly expand your customer database. Money spent on customers will:

*Increase total profitability – not just revenue growth
*Increase revenue profitability per customer segment (car purchases, car servicing)
*Increase total dealeship revenue – customer defective rate is lowered
*Increase total number of customers – loyal customers refer many others, resulting in lower marketing costs
*Improves how your dealership operates – loyal customers provide more feedback than typical customers.

Customer Loyalty Factors

*Attitudes about your dealership, vehicle quality and attention to customer service
*Dealership image
*Customer has a better overall experience at your dealership
*Your customers will have a higher perceived value of your dealership resulting in paying more for vehicles

In today's competitive market where every car dealer is offering similar vehicles and services, preventing customer defection will have a huge impact on your bottom line. The right customer loyalty program may be just the thing to jump start lagging sales.

Need help with building customer loyalty Program? We have a "done-for-you" automatic plan to help out your dealership. Visit our automated marketing page for more information