For any auto repair shop looking to guarantee business continuity (ensuring existing customers return to your shop for all of their services), nothing beats programs designed to improve customer loyalty and retention. Improving customer loyalty by just 5% can increase your profits by 25-100% per customer.
So, how do you create a loyal customer?
Sometimes providing quality repair services and outstanding customer service isn’t enough. If you haven’t considered starting a service rewards program at your shop, with help from businesses like BayIQ, you should. Here are 5 important ways it would benefit your business.
1. Service Rewards Programs Increase Trust
Loyalty and trust go hand-in-hand and are equally crucial to your auto repair shop’s long-term success. According to Dixa, 82% of consumers say they are likely to spend more with brands they trust. And with 50% of existing customers more likely to try new products than new customers, driving sales can be significantly easier once you’ve established trust.
A great way to establish trust with a service rewards program is to offer perks, like exclusive deals and special promotions. These show your customers you appreciate their business which strengthens their bond with your brand.
You could also leverage positive reviews from loyal customers to appeal to new ones. With 83% of consumers saying they would recommend a trusted brand to others, it creates a unique opportunity to encourage customers to endorse your shop.
And with help from marketing platforms like BayIQ, you can easily facilitate online reviews and automatically send them to your Google Business page and Facebook page, increasing your reach.
2. Loyalty Rewards Are Compelling Incentives to Return
50% of customers say they would change their spending habits with a business if it meant reaching a higher tier in their rewards program. In other words, the right rewards could make the difference between a customer that visits your shop once and one that visits multiple times.
Here are some incentives to consider offering for your auto service rewards program:
- Points that can be redeemed for further services
- Tiered reward levels with each offering higher discounts on services
- Reward points for referrals
- Double points during special promotions, anniversaries, or birthdays
3. Rewards Attract New Customers
On average, it costs five times as much to attract new business than to simply keep your existing customers. Fortunately, a rewards program not only helps retain current customers, but it appeals to new customers as well. In fact, 69% of consumers say rewards programs influence where they shop.
With that in mind, if a prospective customer is considering your shop among others for their next set of tires, a loyalty program that rewards them for coming in is an added incentive for them to choose your brand.
4. Customers Voluntarily Provide Valuable Data
Another reason why shops should consider auto service rewards programs is that they allow you to collect valuable data that will help to create a more personalized buying experience for your customers. Once you have a customer’s information, you can track shopping habits like:
- How much they spend
- How often they return
- What services they purchase
- What area they live in
- Their demographics
You can then use this data to market to specific customer segments, essentially giving you the ability to customize your marketing strategy to your customers. According to a study by Oracle, 65% of consumers surveyed say personalized offers and promotions are most important to their shopping experience.
5. Auto Service Rewards Programs Help Maintain Communication
Maintaining communication with your customer base is a key component to staying relevant in their minds. According to a Bond Brand Loyalty Report, a customer’s satisfaction with a loyalty program is more than four times higher when they receive regular communication.
Implementing an auto service rewards program creates a reason to talk with your customers on a consistent basis, informing them of things like:
- Current rewards point totals
- Special national and dealer-only promotions
- Expiring bonuses
- New promotions such as double points
- Special program like referral rewards and birthday bonuses
Companies, like BayIQ, can help streamline the communication process with their automated text and email services, which include service reminders, recommended services, and scheduled maintenance notifications.
Easily Create a Successful Rewards Program with BayIQ
Now that you can see why auto service rewards programs are so beneficial to any auto shop, let BayIQ help with their loyalty program solution! With BayIQ’s reward program, you can increase repeat visits and average spend by offering rewards based on customer loyalty, sending bonuses and promotions via email, and utilizing texting functionality.
Not only can you easily create an auto service rewards program through BayIQ, but you can also automate all your marketing needs. They truly are a one-stop-shop for all your auto repair shop marketing needs.