According to our recent case study, rewards programs increase customer retention and can result into a 25-100% increase in profit for your repair and tire shop. If you aren’t already using a rewards program to keep your customers coming back, you’re probably missing out on easy business.
But what is the best rewards program for your shop? If you’re not sure which program to try, it can be difficult to get started. To inspire you and help kick start your program, here are 3 types of rewards that we know your customers will love.
The 3 Best Rewards Programs to Keep Your Customers Coming Back
One: Membership Benefits & Savings
Consider offering your repeat customers access to member-only savings. This is an incredibly easy way to encourage them to come back for their service and tire needs over a the years. Have customers sign up for your email list in exchange for access to discounts and special promotions. This kind of exclusive program will make your customers feel special and values, and motivate them to choose your shop over your competitors.
A great example of a business using a successful membership benefits rewards program is Costco. A Costco membership promotes the feeling of exclusivity, and allows customers access to great savings on bulk purchases. Plus, discounts on a variety of other potentially expensive items such as vacuum cleaners, T.V.'s, washers/dryers, and outdoor furniture. As proof of its popularity, Costco's program boasts a staggering 94.3 million members as of October 2018.
Two: The Point System
The point system is a classic rewards program for a reason: it works. Offer your customers perks in exchange for bringing you repeat business.With each purchase, they can accrue points that can be redeemed for cheap or free services at certain intervals. The easiest way to structure this kind of reward program is to offer your customers 1 point for every $1 they spend at your shop. When they reach a milestone number of points (for example, 250, 500, or 1000), they can choose to cash their points in for rewards like:
- A free (or seriously discounted) service
- A gift card for future purchases
- ½ off new tires
Don’t be afraid to get creative with your rewards!
An inspiring example of a successful rewards program that uses the point system is the shoe store DSW. DSW offers their customers the chance to earn points for every purchase which culminate into $10 gift cards to spend at their store. While not groundbreaking, this type of rewards program is so successful that, as of 2012, nearly 90 percent of DSW sales came from program members.
Three: Cash Rewards
Alternatively, you can also take the plunge and offer your customers cash back in return for investing in repeat business at your tire shop. While the point system asks your customers to accumulate points in exchange for in-house rewards, the cash back system puts money back in the pocket of your loyal patrons.
This is a great option for helping to clear out inventory that you might have been holding on to for a while and are eager to sell. It’s true that giving cash back to your customer is essentially just offering a discount, but handing cash back to a customer is much more tangible than marking down an item. Plus, who doesn’t love walking away with a new set of tires and a stack of cash at the same time?
BAYiQ software helps you manage your rewards programs and keep your customers coming back for more.
Using a software like BAYiQ can help you keep track of your rewards program - no matter what style you choose to implement. Plus, our convenient dashboard can be used by customers as well, so they can check on their rewards status and make sure to use any discounts that are available to them at the time of service.
Rewards programs will help attract new customers to your shop, retain your existing customer base, and enhance the overall customer experience. Don't let another day go by without a solid rewards program in place!
Want to know more about how our program can help you run a smoother tire business? Click here to schedule a demo.
Resources:
https://expandedramblings.com/index.php/costco-statistics/
https://blog.fivestars.com/5-companies-loyalty-programs/