Customer Loyalty Programs

Improved Essays
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
…show more content…
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

Related Documents

  • Improved Essays

    Another marketing effort prominent across the industry as a whole is customer loyalty programs, particularly related to gasoline perks. Retailers like Kroger, Giant Eagle, Winn Dixie, Costco, Publix – you name it, are all offering customer loyalty programs in which shoppers earn points for each dollar spent, redeemable for discounts on gasoline. Kroger customers, for example, get 10 cents off per gallon per every 100 fuel points…

    • 919 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Product Lines________________________________________________________ Gable Vents: The real benefit of Onyx Exteriors gable vents is its manufacture and its material. Our gables have an expected lifetime of fifty years which far exceeds the ten years of vinyl gables. As vinyl vents age they become outdated, no longer look good, and do not vent the attic adequately.…

    • 865 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Repeat business and customer loyalty stem from a business’s quality of service (Koshki, Esmaeilpour, & Ardestani, 2014). Harlequin and Brine measures personal benefit through the number of repeat customers. Simply put, when loyal customers come back night after night, the is doing something right and the consumer is found a personal…

    • 1058 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    I agree! A company who is seeking to achieve a high level of loyalty with customers should focus on customer satisfaction because it determines the success of their business. I’ve acknowledge building a loyal customer base builds profits. In my opinion, I’ve noticed companies like Starbucks and Chick-fil-A over the years focused on this model base on their mission statement and their diligence in communicating, providing superior customer service and training their employees on a level to whereas the company can prosper. Well done on your discussion board…

    • 89 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    According to Connick (2017), Even the best salesperson is a work in progress. You can always find a way to develop your skills, work on your pitch, and learn more about the products and services you sell. Due to price-fixing in the past, a customer friendly dealer could make a good living. Having no discounts and having a manufacturer’s agreement meant that the dealer would need to be an effective listener, be attentive, have patience and have a positive attitude. If a dealer failed to honor the agreement, the dealers license would be revoked.…

    • 498 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Competing brand dealers can join in by wooing shoppers willing to switch brands. You will need to develop your own incentive program, perhaps with manufacturer backing, in a bid to win conquest sales. Dealer Incentive Program Your dealership already has an incentive program in place as you work with and independently of the manufacturer to increase your sales. To win owners of open recall vehicles, you need to think outside of the box. The following are some points to keep in mind for your dealer incentive program.…

    • 870 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Building long-term relationships depends on making sure every customer engagement is a positive experience. How and when to build a…

    • 1711 Words
    • 7 Pages
    Great Essays
  • Superior Essays

    Lifestyle images is the most powerful attribute as it influences consumers to buy into the image rather than the functional attributes of the motorcycle (Armstrong, G., Kotler, P., 2009) . It gives Thorr Motorcycle's a national identity and allows a subculture to be created. Lifestyle image helps evoke emotional connections between customers and their desires for the specified market. Quality Engineering A motorcycle can not maintain a high image without quality engineering as it covers almost every aspect of the product. Quality engineering ranks high among Thorr customers.…

    • 1376 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Why Chivalry Is Important

    • 642 Words
    • 3 Pages

    And lastly, business. Loyalty in a business is perhaps the deciding factor of whether your business will succeed, or fail. Think about it, every big credit card company has some kind of “loyalty benefits.” Discover Cards “1 percent cash back” or Mastercard “no annual fee” benefits. These sound like great deals, but it's really just a scheme to drag customers in.…

    • 642 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    It has made it a very important goal to ensure that its members receive the best prices possible. This company appeals to many groups of people. Their customer loyalty is one of their greatest strengths. After all, it is the customers that keep the company going. Although it faces weaknesses such as a limited selection of private brands, it finds new ways to keep the customer satisfied.…

    • 1142 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Every worker knows the woes of all the varieties of customers that pass through their job. These customers’ that pass through restaurants and fast food places can be classified into five groups; these groups have been named the “Understanding”, the “Perfectionist”, the “Can I Speak to your manager”, the “Grandma/Grandpa”, and the “Trash”. The understanding customer is quite possibly the best customer to ever come into the workplace. This type of customer is always understanding of the circumstances, which is why they receive the best name out of the list.…

    • 1083 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    There are many ways to create and maintain a climate of excellent customer service. Creating a positive work environment and having loyal customers are at the top of the list. A positive work environment can help ensure that your employees are taking care of. Creating customer loyalty is the ultimate goal of customer service (Timm, 2014). Loyalty enables a company to improve customer-driven service quality.…

    • 920 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    Amid the whole period that new autos are being produced, staff individuals from the dealerships are on advance to improvement groups. These direct agents are in a position to make an important commitment to item improvement. The business staff in every dealership is sorted out into groups of seven or eight, an association fundamentally the same as truth be told to the work groups in the gathering plants. Much the same as those in the processing plant, these groups are multi gifted; all individuals are prepared in all parts of offers, item data, request taking, financing protection and information gathering . This ties into the "draw" technique that Toyota accentuates, dissimilar to the Big 3 (General Motors, Ford and Chrysler) Toyota really makes autos that clients need.…

    • 1431 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    1.1 Describe the importance of developing relationships with customers Having a good rapport with your customers is extremely important for the success of any company. Having a solid relationship with your customers can help ensure that the business continues to progress and remain successful. A good way to develop a solid relationship with your customers is to reward loyalty, by simply sending a thank you note or a money off voucher can help to build and maintain brand loyalty, it also helps to introduce incentives such as a customer loyalty program as it will help to entice customers to return.…

    • 1142 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Every company strives to achieve excellent customer service standards. A company that is known for delivering exceptional customer service will often find that this can increase interest in their company and products. By letting the customer know what you are willing to do for them and what service you will provide for them you can set an expectation, by setting this expectation you can then exceed this as company.…

    • 937 Words
    • 4 Pages
    Improved Essays