Ford dealer attributes success to loyalty programme
In the USA, the Berge Ford dealership chain has claimed that its loyalty card members purchased more than US$1 million dollars worth of parts and service in the first year of using MediaTrac's 'LoyaltyTrac' customer loyalty programme.
The country-wide dealership says that the loyalty programme is already delivering hundreds of thousands of dollars in profit, having achieved more than 100% return on investment in the first quarter of the year.
According to Jim Crutcher, general manager for Berge Ford, the fact that the company has been able to more precisely market its services to existing customers has meant that it could cut its advertising costs by more than US$120,000 for the year. Crutcher said: "The gains are significant and measurable. And best of all, the loyalty programme is giving our customers another reason to continue to come back to us for vehicle purchases and service."
Consumer motivation With a growing number of third-party oil change, tyre, and maintenance providers, car dealerships are increasingly feeling the need to focus on retaining existing customers rather than simply closing one-time deals. Recent research suggests that service and parts account for up to 57% of a US car dealer's profits, and 11.5% of their revenue. At the same time, loyal customers are around 70% more likely to buy a new car from a dealer if they use that dealership for ongoing service.
Berge Ford's service reward members receive offers for services that continue to bring them back to the dealership. Members who return to the dealer for service are then eligible to redeem the points they earn and take advantage of other dealer promotions. Reward members can log on to Berge Ford's website to track their service activities and reward points.
The loyalty programme was developed by MediaTrac, and combines elements of marketing, tracking, rewarding, and analysis to help dealers build customer loyalty. The system helps companies understand who their customers are and which customers are most loyal and profitable.