Did you know that acquiring a new customer can cost 5 times as much as retaining an existing one? In fact, data shows that in the last five years, there has been close to a 50% rise in customer acquisition costs. That is why it’s so important for auto repair shops to double down on customer retention.
One of the most effective ways to do so is through a rewards program, which has been proven to drive loyalty. In fact, customers who are emotionally connected to a brand have a 306% higher lifetime value and recommend the businesses they love at a higher rate. Here’s a step-by-step guide on how to create a rewards program that will keep customers coming back to your shop:
Create a Strategy
The first step to creating a rewards program focused on retention is to build a strategy. There are several areas you should cover, including:
- Set a measurable goal- Having a goal keeps your team motivated and puts a quantitative measure on your rewards program. Start tracking how often your rewards customers visit and their average repair order compared to customers who are not in the rewards program.
- Identify your customer base- Build a customer contact list to create a rewards program based on your customers and your shop so you can make the benefits of joining a no-brainer.
- Plan the launch- Once the rewards program is ready for members it should be promoted and advertised like any other promotion you offer. This includes in-store signage, call-to-actions on your website, social media ads and posts, email blasts, etc.
Determine the Type of Rewards You Want to Offer
Your rewards program doesn’t necessarily have to stick to certain parameters. This is an opportunity to customize your offerings. Many shops choose to customize things including:
- Rewards points- Determine the amount of points you want customers to receive when they visit and whether or not you want to exclude low-margin items from accruing points.
- Special promotions- Offer unique promotions to your rewards customers to give them an extra push when it’s time to bring in their vehicle. This can include regular manufacturer rebates on tires or parts, seasonal sales, or anything else your team wants to offer!
- Bonuses or discounts- Set up the special bonuses or discounts a customer will receive when they sign up, refer a friend, it’s their birthday, etc.
Use a Software for Your Rewards Program
Strategizing, configuring the logistics of your program, and keeping track of all of your members can be a huge undertaking. Thanks to modern advancements, you can utilize software to make things a lot easier for your shop and your team.
BayIQ includes a loyalty rewards program as well as a suite of other marketing features to retain customers specifically for auto repair shops:
- Database marketing and automated reminders
- Email and text message marketing
- Online reviews
- Appointment Scheduler
- Integration to most point-of-sale shop management systems
By partnering with BayIQ you’re putting your auto repair shop one step closer toward building a life-long customer base.