Apr
21

Real Results: LoyaltyTrac Increases Member Service Revenue by Thirty Percent

By Mike Gorun at Performance Loyalty Group  //  April  //  No Comments // Tags: , , , , , ,

A popular Ford dealership in Spokane, Washington has achieved measurable, significant success using the LoyaltyTrac® program. Since installing the program in 2004, this store’s service department revenue has increased 20%, customer defection has been all but eliminated and the average customer spend per repair order is $50 higher for program members compared to non-members.

Real ResultsDuring the first year on the program, the dealership’s service rewards members generated $15,000 per month in revenue for the service department. Today those members generate approximately $50,000 per month in revenue. Additionally, the owner has found that LoyaltyTrac customers spend thousands of dollars more than non LoyaltyTrac customers.

Before signing up with LoyaltyTrac, the dealership did virtually no marketing to its service customers. “Now, every salesperson promotes the LoyaltyTrac service rewards program as a benefit during the sales process,” said the owner. As a result, more than 70% of customers sign up for the program, and most of those who decline are from out of the immediate market area.

Upon purchase of a vehicle, customers receive a loyalty card with a sign up bonus of 150 rewards points. This incentive to join the program has resulted in an exceptional email capture rate of over 83%.

LoyaltyTrac personnel work with the Ford dealership to create completely customized, dealer-branded monthly marketing campaigns offering sales, service and finance specials such as discounts on oil changes or incentives for a 30-60-90,000 mile maintenance package. Additionally, emails incent customers by adding bonus points to their account if they schedule a service quickly or on specific days of the week.

In addition to offering discounts and VIP services to members, the dealership partners with local businesses to offer rewards. After six years, more than 10,000 individual loyalty club memberships have been issued and nearly all of those service rewards club members are still coming back for regular servicing. The cross marketing with local business also helps to grow this dealer’s customer base.

“Before the program, our average customer defection was around 32 months, right about when warranties were expiring,” said the owner. “Now it’s at 60 months, which is about how long most people own a vehicle, so in effect we have no defection rate.”

LoyaltyTrac is a true automotive customer loyalty and service retention program that uses proven loyalty principles and tools to assist dealerships in developing ongoing service and sales business based upon a member’s real past purchases and future purchase predispositions. Dealers using the program realize on average an increase of 24% in customer visit frequency and a nearly 10% increase in customer spending, despite a down market.

By using the many tracking and reporting tools to fine tune various aspects of the LoyaltyTrac program, this Ford dealership has managed to continually increase service department revenue and create thousands of loyal customers. “The two main reasons why people come in are because they trust you and because you’re convenient,” says owner. “LoyaltyTrac helps with the trust aspect because we are constantly reaching out to them.” This dealership credits the LoyaltyTrac program with helping it to create and take care of loyal customers.

What results have you seen through your customer rewards program?

How do those results compare with this dealership’s?

What do you think determines the success of a customer rewards program?

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