6 Emerging Trends in Automotive Loyalty Industry
According to Frost & Sullivan’s report, 72 percent of customer interactions are digital. Dealerships are now usually the last stop for a customer. It’s getting challenging for automotive brands to retain customers.
Customer retention drives success in the long term for any Industry. 3 out of 4 customers favor brands that reward customers. This signifies the value of rewards in customer retention. Automotive loyalty programs are helping brands to achieve their revenue goals. In addition to retaining existing clients, loyalty programs also help in customer acquisition.
Market leaders like Nissan & Ford have already launched their loyalty reward programs. Find the top trends followed by big brands in the automotive industry below.
Six strategies for automotive loyalty reward programs that work
1) Complimentary maintenance plan
65% of a company’s revenue comes from existing customers. Targeting customers with maintenance reward incentives can be a good strategy. Personalized welcome kits, free maintenance with the services, and service upgrade rewards are some ways for maintenance services.
- Personalized gifts – A thank you card or digital letter quickly after a customer makes a transaction.
- Free maintenance – Maintenance services package with a car purchase or maintenance service discount for a limited period.
- Giveaways– Complimentary maintenance assistance for 12 months
- Service reminders & Consultancy– Personalized mails and car maintenance tips through email.
The FordPass Reward Program
FordPass app allows customers to earn complimentary maintenance and rewards with its 42,000 points when you lease a new Ford. The points can be used for multiple purposes, including discounts on buying the next Ford.
Incentives by the FordPass Loyalty Rewards Program:
- Complimentary maintenance – You get 42,000 points when buying or leasing a Ford. Customers can use the points to purchase accessories, maintenance fees, and buy the next vehicle from Ford.
- Rewards – 10 points for every $1 spent on the service and maintenance with Ford.
- Roadside assistance – 24/7 Roadside assistance is available virtually. Fuel delivery, flat-tire, and other roadside services are available on a priority basis for loyalty program members.
- Connect & control – FordPass allows you to stay connected with the complimentary remote features to start and stop your car.
2) Tiered loyalty programs for better customer experience
Introducing multiple tiers in a loyalty program is becoming a trend. With quick rewards and exclusive benefits, customers are ready to pay a premium fee for extra benefits. Automotive brands are harnessing the power of gamification by creating multiple loyalty levels to maximize engagement & customer stickiness.
Maruti Suzuki Rewards
From winning badges to getting an opportunity to attend exclusive events, Maruti Suzuki’s loyalty program is highly rewarding.
Incentives offered By Maruti Suzuki Rewards:
- Loyalty badges on select actions that carry points.
- Multiple tiers for customers looking for extra benefits.
- Users can get all benefits and perform transactions without a card.
3) Exclusive community
Customers want to feel special when engaging with the brand. Creating a community of customers with access to exclusive events and personalized services is attractive.
Rewards may include:
- Access to member-only events.
- Personalized services
- Access to a community of like-minded people
Whispers by Rolls Royce
Rolls Royce has a program called “Whispers.” With the messaging of “world beyond,” Rolls Royce aims to engage users with an experience only for owners of their cars.
The benefits include:
- Access to events, performances & occasions
- Specialists ready round the clock for requests
- Exclusive merchandise for whispers members
4) Offering extra rewards for the volume of business
It’s obvious to offer extra benefits for customers who keep coming back. Offering free oil change after three paid oil changes is one example of volume-based rewards. A punch card is another customer loyalty program where customers can calculate rewards as a percentage of what each service will cost in labor/parts. By letting customers know about the stage when they can earn free rewards, more transactions can be encouraged with them.
Volvo Cars Loyalty Program
Volvo is another example of how unique loyalty programs can help in client retention. Volvo has launched a benefit reward program on auto parts and labor based on the vehicle’s age and condition. Depending on the age of the car, users get rewards. The saying ‘Old is gold’, truly exemplifies here!
Incentives offered By Volvo Cars Loyalty Program:
- Vehicle checkpoints
- Car discounts and free car recovery benefits
- Discount on auto parts and labor
5) Integrating carwash services with a loyalty program
Car wash is a regularly in-demand service. There are dedicated companies for car washing. They offer subscription to a car wash service. After purchasing a bulk session for a year, consumers can get free car wash services. Rewarding customers with gifts and points ensure that retention rates are higher.
Clean Planet Car Wash Loyalty Program
Clean Planet Point Program allows its customers to earn points for every purchase. No need to register or sign up. Vehicles are recognized with licensed plates by the system.
Incentives Offered by Car Wash Points Program:
- 3 points for every $15 best wash
- Get 2 points for every $12 Best Wash
- Get 1 point for every $9 Best Wash
- Jackpot points when you reach 15 points and get a $15 Best wash reward
6) Reward points for every consumer action
The core of every loyalty program is a reward system. So often, while improving the program for better results, the focus is shifted from the core element. Keeping it simple for users to easily join the loyalty program and earn points is always a growth-enabler step.
Hyundai Rewards Program
Hyundai Rewards is an excellent example of how simple and easy steps can retain customers. Keeping the customers in mind, they allow you to earn points with every purchase you make.
All you need is to be a Hyundai owner. Then, enroll in the reward program, and register your Hyundai with the system, and you will get a link to log in to your account. Once you have logged in, you will have all the details about how to earn and redeem your points.
Incentives Offered by Hyundai Rewards:
- For every $50 spent, you get 250 pints.
- $100 will get you 500 points, and $500 will earn you 2500 points.
- By shopping at Hyundai’s online store, you will get rewards from your favorite brands via mail.
- The points you collected are added to your shopping account.
- Get special discounts on New Vehicles, parts, and services.
People don’t buy cars every next day. Repeat purchase in the automotive industry is a long process. It becomes essential to engage consumers during this time. With advancements in technology and data collection, it’s easier for brands to reach and engage customers. Loyalty programs are the key enablers for reaching the engagement and retention goals. In today’s age of digitization, offering a 360-degree omnichannel experience to customers is one of the best ways to retain customers. Zinrelo is a loyalty rewards platform with a multi-dimensional approach. Zinrelo is empowering global brands in the automotive industry to build a core loyalty engine with industry-specific rules, campaigns, rewards & analytics, unlimited customization!