Customer Loyalty Programs

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Creating a loyal customer base is the primary goal of most businesses. A loyal following is vital to ensure that you have repeat customers who are willing to give referrals and spread positive word of mouth in the community. Auto dealers have a tricky task, considering that most customers only purchase cars every several years. A recent survey from Auto/Mate Dealership Systems revealed some essential information about how dealerships build customer loyalty.

Reward Programs

Customer rewards programs are becoming more popular with auto dealerships. The survey revealed that 54% of dealerships asked already have a rewards program in place with another 19% either thinking about or working on implementing one soon. However, a separate study found
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An additional 30% of respondents considered management programs that promoted a good reputation crucial. Most dealership managers and owners know that good service is the make-or-break component of making a sale and retaining customers. The reputation of car salespeople for being rude, dishonest, or pushy has unfortunately been well-earned by unscrupulous dealerships in the past. Now, most dealerships strive to leave this type of bad behavior in the past by treating customers with respect. This is usually accomplished through extensive training of sales people, support staff, and …show more content…
Marketing may be crucial for getting a customer in the door, but it won’t be enough to encourage a customer to come back time and again. Things like maintaining an updated website (38%), outreach from salespeople (26%), and social media programs (11%) were ranked as important, but not vital by dealerships surveyed. The take home message? Providing good service and genuine value will likely overshadow high tech endeavors on social media or other marketing, so allocate your time and budget accordingly.

Would you like to guess how many dealerships in the survey responded that customer loyalty wasn’t important to their business? 0%! Everyone knows that creating loyalty to your brand is vital for success. Ironically, offering the lowest price ranked fairly low (17%) compared to other loyalty-building activities, falling in the second lowest position compared to all other activities. Things like great customer service and discounts on vehicle maintenance seem to lead the way when it comes to building a following. This information can help you reward to retain your valued customers. Incorporate vehicle maintenance discounts into your reward program and strive to learn how else the program can be of value to your customers. Also, focus your efforts on building employee satisfaction so that the enthusiasm of your work force translates to your

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