9/25/12: Key Factors of a Successful Automotive Rewards Program
1/23/12: Q & A With Jonathan Greene
7/26/11: Loyal Customers...the Secret Recipe to Strong Profits.
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Key Factors of a Successful Automotive Rewards Program

By: Jon Greene

As we sit and ponder the most important topic in our industry today, it begs the question for all dealers to ask themselves, "What is the magic formula to keep our customers loyal?" Today, our customers expect more value, better service and to be treated like never before. This is not just the case in automotive showrooms and service drives, customers' expectations throughout the country are at an all-time high in all businesses.

With that said, we know how critical it is to our survival to ensure our customers stay loyal, but what can we do to ensure they return for service and repeat vehicle sales? The answer for more and more cutting edge dealerships is to launch highly creative "points based" rewards programs, designed to retain the customers they already have.

A successful dealer loyalty program will keep your customers talking about you, spending money with you and becoming fiercely loyal to your dealership. When considering a loyalty program for your dealership ask yourself these simple questions:

Does it build value?

The most successful automotive rewards programs around the country are the ones that allow your salespeople to clearly build value during the sales process. A good rewards program should give your salespeople an exclusive tool that will help them build value in themselves and the dealership, instead of quickly dropping prices to close a deal. If your salespeople can't leverage the benefits of your program to powerfully demonstrate why your customers should buy from you, it is not built correctly. Let's face it, if it does not help you sell the car, you have no customer to retain anyway.

Does it reward your customers for staying loyal to you?

A successful rewards program contains a points system that has the ability to identify, track and reward your best customers when they remain loyal (and spend money). These point structures should be easy for your customers to understand, allow you to measure the worth of each customer and reward them for hitting spending benchmarks set by you.

Does it integrate into your customer’s daily lifestyle?

Since your service customers only visit three or four times per year, a good automotive rewards program is one that seamlessly integrates into your customers' daily lifestyles and offers them value, in between service visits. Consider offering additional incentives at local restaurants, retail stores, golf courses and other local merchants. Don't just "wow" them at your dealership, make sure they remember you in between visits as well.

Does it effectively communicate with your customers?

A successful dealer loyalty program offers an automated system that gathers information and sends customized contacts with the right message, at the right time. Additionally, the contact system should have the ability to offer time-sensitive promotions, free gifts, contests, direct mail, as well as customized loyalty certificates.

Does it help you build long term loyalty?

Successful rewards programs should ensure the customer is earning towards valuable future rewards at all times. Some points programs allow customers to earn and redeem relatively small rewards at their very next service visit. Rather than offering a few bucks off their next service, offer them the ability to earn something much more valuable if they hold off. If your program is allowing your customers to earn and redeem small amounts immediately, in effect, you have deployed an electronic version of couponing, not a long term loyalty solution.

Does it allow you to stand out from your competitors?

Don't be fooled with the "one rewards program fits all" pitch. Most OEM programs are designed to level the playing field and instill "sameness" in their dealer base, but is that what you want for your business? Sameness is one of the worst possible traits for a dealership and always leads to reduced profits. Your rewards program should always have the ability to be customized based on your specific goals, so have the courage to break the mold and think creatively. Your customers will appreciate the effort. Think about it, if your program is the same as the guy down the street, what is the point?

Always remember, a truly successful loyalty program should contain a valuable mix of hard benefits (points, rewards, discounts at the dealership) as well as soft, lifestyle benefits (outside of the dealership) that promote long term goals, as well as offer short term rewards. Today’s customers are expecting more than ever and if we can have the courage to be different and offer our customers a program over flowing with value (even outside of the dealership), they will talk about us, spend money with us and remain fiercely loyal to us.

Bio of Jonathan Greene
For the past 15 years, Jonathan Greene has been working directly with auto dealers throughout North America to design, build and launch the most creative loyalty programs in our industry. Since 1997, he has personally delivered over 4,000 automotive customer loyalty seminars to dealer groups of all sizes. Jon can be contacted at 302-696-6000 X 705 or by e-mail at jgreene@nucarconsulting.com.

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Q&A With Jonathan Greene

Wow, what a great response we have received this year to our Loyalty Matters. Keep hitting that send button; we really enjoy providing our readers with feedback and hope we have shared some good ideas and helpful suggestions along the way.

With the start of a new year at our heels, we thought it would be helpful to share with you some of the best questions that we have received and hope you discover something new that you can apply in your dealership in the upcoming year.

Q. How Can An Effective Loyalty Program Benefit My Dealership?

First, and foremost, a loyalty program should provide a definitive reason for a customer to choose your dealership over the competition. If your program does not contain enough value to be used on the sales floor to build value in your dealership, take a serious look at its benefits. A truly effective loyalty program should always help your salespeople close deals. Period.

Second, a truly effective loyalty program should offer service customers an earnings program that tracks their purchasing behavior and periodically rewards them based on their continued loyalty.If you can do this, your R.O. count and average gross per ticket will go up dramatically.

When a loyalty program successfully meets this basic criteria, you can rest assured you have a solid foundation to establish repeat customer relationships at your dealerships in BOTH sales and service.

Q. What Is The Biggest Mistake Dealers Make When Implementing A Loyalty Program?

In an industry that tends to "wipe the board clean" and start over at the end of each month, the biggest mistake I see dealerships make when they launch a new loyalty program is not realizing that building customer loyalty is not an overnight project.

Going in, a dealership should be ready to create a culture change geared towards treating customers in a new way. They need to ensure their staff realizes that if they can "wow" a customer at each visit, that locks them closer and closer to the service department and will dramatically increase their future business opportunity.

A good loyalty program should contain enough value and creativity to allow your employees to "wow" every customer, every visit. Over time, your dealership will build customer relationships that will endure and the results will be evident.

Create a Customized Loyalty Program for Your Dealership

Custom Points Programs
Valuable Club Benefits
Powerful Customer Contacts
Complete Tracking & Ranking
Onsite Training & Support
Fiercely Loyal Customers

About the author: Jon Greene is Vice President of Operations for NuCar Consulting. For the past 14 years, Jonathan has been working directly with auto dealers throughout North America to design, build and launch the most creative loyalty programs in our industry. He has personally delivered over 4,000 automotive customer loyalty seminars to dealer groups of all sizes. He can be reached at jgreene@nucarconsulting.com.

Loyal Customers…the Secret Recipe to Strong Profits.

When something delightfully unexpected happens, we simply cannot wait to share that experience with others. This kind of surprise – the kind we can’t keep bottled up – is the response you must have generated from your interaction with your customers.

When your customers are pleasantly surprised by their encounters with your dealership and its people, they will talk about you…a lot. When your customers consistently talk favorably about you to others, new loyal (and highly profitable) customers are created. As we all know, there is nothing more powerful than a personal testimonial to promote your business, so get started surprising your customers today.

So, how do you create these kinds of unbeatable personal testimonials?

Launch a Branded Loyalty Program.
Customers will brag about you, be more loyal to you, and spend more money with you when you have the courage to surprise and delight them every time they visit your dealership. One proven way to create such strong customer engagement with your dealership is to reward them for their continued loyalty by launching a dealership branded, rewards-based loyalty program at your dealership.

Dare to be Different.
Don’t be fooled with the “one loyalty program fits all” pitch. Most OEM programs are designed to level the playing field and instill “sameness” in their dealer base, but is that what you want for your business? Sameness is one of the worst possible traits for a dealership and always leads to reduced profits. Your loyalty program should always have the ability to be customized based on your specific goals, so have the courage to break the mold and think creatively. Your customers will appreciate the effort. It is this courage to be different that your customers will remember and ensure you clearly establish yourself in a different league than your local competitors. Think about it, if your program is the same as the guy down the street, what is the point?

Surprise and Engage Your Best Customers.
A successful customer loyalty program is one that always engages your customers on an emotional level. Keep in mind, as your customers’ expectations grow, your efforts to surprise, reward and engage them will position your dealership as different, special and worthy of their business. These elements are critical to building customer loyalty.

Here are a few ideas for establishing a successful loyalty program:

Offer exciting rewards or incentives your customers want. Show your customers your desire to offer an unbeatable experience by having the courage to be creative with your program benefits.
Increase reward or incentive levels as a customer’s loyalty (and spending) increases. Customers will appreciate your growing gestures of thanks and keep coming back.
Create an atmosphere of surprise. Occasionally add surprise rewards or incentives for no apparent reason. Done right, this will dramatically change the way your customers value your dealership.

Driving Loyal Customers Is a Dealership-Wide Effort.
A successful loyalty program should incorporate every area of the dealership that might touch a customer. This includes Sales, F&I, Service, Parts, the cashier – and why not the customer lounge and parking lot? A successful customer loyalty rewards program that builds excitement will look for all opportunities to engage customers and surprise them. Consider the possibilities:

Delight. Mary enters the service lane for scheduled maintenance. The advisor informs her she’s accumulated enough reward points to earn a “free” dinner for her and her family at a popular area restaurant. Do you think she might tell others about that experience – and start the word-of-mouth ball rolling?
Surprise. Mike visits your showroom. Your salesperson builds value into the sale and the dealership by proudly explaining what makes your dealership different, including the valuable benefits offered in your loyalty program. Your salesperson smartly shares with Mike how it works and highlights the exclusive benefits your program offers, such as exclusive discounts available at local area merchants.
Communicate. Often a small, but timely reminder of how the customers‘ points are accumulating can drive their continued loyalty. For instance, remind customers they’re just points away from earning a free detail at that their next service visit…think they won’t be back?

These days, every successful dealership must do more to create customer interactions that leave the customer “wowed.” If not, the result is to be viewed as a commodity, no different from a dozen other competitive dealerships in the customer’s market area.

The right loyalty program, one that truly helps to differentiate your dealership, is one that helps you create value in your business and pride in your employees. When customers and your community recognize your dealership’s unique difference, they’ll spread the word and help your business grow by the most powerful and least expensive marketing available – a personal testimonial.

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