Think Rewards Programs Are For Large Corporations? This Powerful Strategy Will Increase Sales For Your Dealership
Why is it so many business owners still think loyalty rewards programs make sense only for huge companies or the donut shop down the street? The reason these programs have gained so much traction in recent years is that they resonate with every type of customer. Including yours.
Who doesn’t like to be thanked? Of course you say thanks when you make a sale, whether it’s a new heavy-duty truck or piece of construction equipment, service department work, parts or a rental. You probably include the ubiquitous “thank you for your business” on your dealership invoices or other correspondence. But that kind of thing is so common, it doesn’t pack much punch. It’s nice, but it’s also expected.
Hitting the sweet spot.
Establishing a loyalty rewards program that enables repeat customers to reap benefits that really count – discounts on future purchases, for instance – allows your dealership to say thanks and help customers save money to grow their business.
By thanking customers in a tangible way, you increase their good feelings about your dealership, and you increase sales revenue every time they redeem their rewards. You also set yourself apart from your competition because you are giving customers they can take to the bank.
Do loyalty programs work?
Using those large corporations as an example, Starbucks says their My Starbucks Rewards customer retention program was instrumental in helping the company boost total revenue 11% and profits 26% in the second quarter of 2013. Best Buy, a company desperately in need of improved sales, reports upgrading their rewards program contributed to a significant turnaround in their stock price.
You don’t have to worry about stock prices, but growing your customer base and getting existing customers to buy more are the two goals that will keep you in business and increasingly profitable. Rewarding loyalty is particularly effective because the longer a customer sticks with you the greater their lifetime financial value. Meanwhile, it’s cheaper to retain customers than acquire new ones.
The majority of small business owners also report their loyalty programs are profitable.
Repeat customers don’t just buy more. Because they are more than satisfied with your dealership, they are more likely to recommend you to others. That kind of promotion is not only free, it has rock-solid value because it is independent, word of mouth marketing.
No punch card required.
There is no need to fiddle around creating and printing punch cards to keep track of customer purchases. No one wants to clutter their wallet with that stuff anyway. It’s the digital age, now, so you can use simple technology to track and monitor each customer’s usage of your rewards program.
Even better, you can tabulate and analyze overall response to your program without endless hours of tallying numbers with pencil and paper. You can see trends – which types of customers use your program most, how often they are reaching rewards levels and how they redeem them. That information is invaluable to help refine your loyalty program, if need be, but also to refine overall marketing targeting and content. You’re learning more about each of your marketing personas.
ADI’s Customer Loyalty Program is a prime example. It is a web-based platform that is “plug and play” easy. It was developed specifically for the construction equipment and heavy-duty trucking industries, with separate versions that allow both dealers and OEMs to take advantage of specialized opportunities.
You can customize the details to suit your needs, ensuring your rewards program is 100% relevant for you and your customers. Best of all, it’s easy for customers and your staff to track usage. With that kind of powerful program in place, you have an impressive additional incentive you can use to land that next sale and create customers for life.