Automotive Businesses + Loyalty Schemes = It's a Match Made!

Automotive Loyalty Schemes

What are loyalty schemes?

Loyalty schemes are a great way to recognise your regular customers and give them a little something extra, whether this be a free reward or access to exclusive offers. Typically, the programme will set a goal for customers to achieve - such as purchasing a set amount of your products / services – which they will receive a reward for once complete.

For instance, Café Nero’s loyalty card. With this, the customer can receive one free drink for every ten that they purchase, these purchases are recorded as stamps. A stamp collection method is popular amongst businesses, but point systems can work well too.

Using loyalty schemes can keep customers coming back for repeat purchases, and potentially turn one-off customers in loyal advocates for your brand. A successful scheme can also increase sales; and create an opportunity to get to know your customers better, as you can trial different rewards to find out what they really want.

What makes loyalty schemes a #MatchMade for automotive businesses?

The core aim of running a loyalty scheme to encourage regular business from your customers, so naturally they can be particularly effective for businesses that provide a necessary service, such as MOT tests or car maintenance.

There are current more than 40,000 motor garages in the UK, but adding an extra incentive to these essentials – such as a 20% discount on your fifth service - can help to improve your customer retention year on year, and prompt a boost in referrals too.

How to get started:

Set a goal for customers to achieve:

The first step in creating your loyalty scheme will be to set your customers’ goal. Most businesses will use their own product or service here; either offering one for free, or at a discounted rate.

Set an action:

This is what your customers need to do to work towards the incentive; typically making a certain amount of purchases to reach a target, or collecting a set amount of points. Research into consumer attitudes has found that, psychologically, customers are more likely to fulfil a loyalty scheme if it appears that they have a head start. For instance, if there are ten stamps to collect but two are already filled out. You can read more about the study here.

Spread the word:

Your loyalty scheme won’t do any good if no one knows about it, so make sure to get the word out on your website, social media, and of course telling customers when they come to your garage.

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