October 2008
Notes from the Editor
Can you name the only major industry that does not have a rewards/loyalty program? The airlines all have loyalty programs. Best Buy has a Reward Zone card. CVS drug store recently added the prescription club card to their points program. Speedway gas stations has a reward card. Dick's Sporting Goods also gives you points for every purchase.
Very seldom do you hear or read stories about how dismal loyalty is in these industries. Think about it! The auto industry has had a crisis in customer loyalty for the past 20 years. Customers will change the place, make, and model of car they buy simply for a cheaper car payment. They jump around from shop to shop each time they need service based on who happened to send them a better oil change coupon.
What is your store doing about increasing or creating Loyalty?
Be sure to read the stories below and pick up some fresh ideas on how to RETAIN YOUR CUSTOMERS FOR LIFE!
Happy Servicing!
Andrew Wolfe and the rest of the Dealer Concepts, LLC. Family!
866.GET.IDEAS (438-4332) x117 or Email Me
Retaining Your Customers for Life.
What is a Loyalty Program?
Sending out direct mail to a customer does not create Loyalty. If you're lucky to catch a customer at the exact moment they are in the market for a car or service on their vehicle, then your direct mail piece brings the customer back one time. Last I heard the average Return On Investment on direct mail is 1-5%. TV advertising does not create loyalty! Radio advertising does not create loyalty! Newspaper advertising does not create loyalty!
Northwest Airlines CREATES loyalty. Three weeks ago I was asked by my office which airlines I would like to fly for a business trip to Florida next month. As much as I dislike Northwest Airline's service, I had just received my mileage statement via e-mail and I had 24,613 miles. I am 387 miles away from a FREE ticket. What airline do you think I am flying to Florida?
My decision to fly with them was NOT based on a billboard I saw, a commercial on TV, or a direct mail piece that was sent to me. It was solely based on rewards for being a loyal customer.
The only thing that creates loyalty is REWARDING your customer for the business they give you.
What are you doing TODAY to create loyalty and reward your customers? I challenge you to break away from the crowd and spend 5% less on your "traditional" advertising for the next six months and redirect that 5% to a loyalty program of some kind for your store. Watch your loyalty numbers soar!
How to Promote your Loyalty Program
Our hats go off to Hawkins Chevrolet, Langley Volkswagen, and Peugeot of Ireland. As you can see (see below) from the ads they recently ran in their hometowns as well as their website, they understand what it means to promote their loyalty program. The Peugeot dealers get 300-350 requests per month from consumers that visit their website and ask for a Key Tag to be sent to their homes. Way to go!
Tip of the Month
New Driver and Service Clinic
In Michigan, kids can start drivers training at 14 years and 9 months. On that exact day, my son made sure he was signed up for his first day of driver's training. Besides being a bit scared and gaining responsibility, there are many questions he has been asking. This got me thinking. Why don't local dealerships offer a service clinic or tour of their store? Most kids are fascinated with cars; from how they are made to how they work. I think this would be a great opportunity to get a new driver along with their parents into your store. Offer a full store tour from the new car line to the service and body shop departments. Also, put together a simple handbook which gives new drivers pointers and tips about buying cars and servicing a car. While on tour have a service tech show them the basics of a car. Give a demonstration on how to change the oil, fill the tires with air etc. Who knows, you may find something wrong with the car and earn yourself a new customer.
Points, Points, Points
If you would like to learn more about loyalty marketing and see a live demonstration of our industry leading rewards program, drop us a line back or call us anytime at 866-438-4332. Learn how in a matter of minutes how we can help you set up a full-blown, feature rich reward program for under $160/month!We offer demonstrations every Tuesday and Thursday at 2pm EST. Seating is limited and the sessions fill up fast! Call TODAY!
Success Stories
"I want to drop you a note to express my appreciation to CITGO for sponsoring the loyalty "key tag" program. I have been using this at my three CITGO lube centers and it has been a real hit with my customers. I offer a free oil change after they purchase five oil changes. We are beginning to see an increase on repeat business as we are able to get these key tags on our customer's key rings."
-Brad Miller
Independent Lube, FL
October 2008 Special
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