Customer Loyalty and Rewards Programs
Customer loyalty programs have become mainstream in recent years with retailers. From Starbucks to Sears, retailers are finding ways to incentivize and reward customers for their repeat business. But do rewards and incentives create true loyalty to brands? How can auto retailers incentivize and reward customers for their business? How can they create loyalty?
To explore these ideas, we welcome back Bill Playford and DJ Snyder in this edition of AutoConverse ON AIR – Live Weekly Broadcast. The primary talking point in this conversation was about Customer Loyalty, Retention, and Repeat Business for Auto Retailers. We also talk briefly about CDK and partnering with Lyft Concierge on the new Fortellis platform.
Video Preview of the Show
Quotes from the Guests
Bill Playford is a co-founder at DealerKnows Consulting. He comes with nearly 15 years of experience in the auto industry, working with clients like BMW, Hyundai, and Google. DJ Snyder is an OEM representative at Shift Digital. He brings his take coming from a consumer perspective and a dealer perspective.
The biggest difference between repeat customers and loyalty clearly comes down to meaningful and tangible benefits. “I frequent a local gas station because it’s right across the street … so I’m a repeat customer to that.”
But loyalty is something else and, as DJ points out, it sometimes comes to more than rewards or programs. “All my dress shoes come from Nordstrom’s”, he shared. “They don’t have points, rewards or anything like that but if I ever have a problem … I know Nordstrom has my back.”
Bill agrees, pointing out “I think a lot of things fall apart when the points or rewards don’t deliver anything special to you.”
Auto retailers face unique challenges when it comes to building repeat business and customer loyalty. From the use of personal data, to understanding inbound and outbound marketing, dealers have opportunities to enhance the customer experience. They also can foster not only repeat business, but referral business too.