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How Offering Loyalty Rewards Program Improves Customer Retention

loyalty rewards programs
Posted by BAYiQ on March 14, 2019 | 0 Comments

loyalty rewards programs

 

You probably know by now that loyalty rewards programs are so much more than a marketing gimmick. They’ve been proven to increase customer retention, which is key since 65% of your tire shop’s business comes from your existing customer base.


In addition, working to retain the customers that you already have can do wonders for your bottom line. So many business owners are so focused on bringing in new business that they can often lose sight of the fact that the real drain on their finances is losing valuable, already-obtained customers.


If you’re still on the fence about implementing a loyalty rewards program for your customer base, consider this:

  • It costs five times more to acquire a new customer than it does to retain a returning one.

  • And, a 2% increase in customer retention can lower costs by as much as 10%.


If you need more convincing, here’s how adding a customer loyalty program to your tire shop can benefit your customers and your shop.

How Loyalty Rewards Programs Benefit Your Customers AND Your Shop

Benefits to the customer.

Loyalty rewards programs are a huge help to customers because:

  • They offer timely and much-needed discounts on services they have to get.

  • They often help to remind customers of important upcoming tasks like getting a tire rotation or oil change.


Spending money on new tires or automobile maintenance isn’t always the most fun or glamorous thing for a customer. However, when you provide them with an opportunity to save money and/or receive rewards for spending money at your shop, it makes the experience feel worth it.

Benefits to your tire shop.

In addition to the financial benefits we mentioned, your shop can also benefit from a rewards program because it creates a feeling of positivity and loyalty between your customers and your shop.


Loyalty programs simultaneously work to retain your current customer base while also attracting more customers to your shop who are interested in being rewarded for receiving services.


Also, having a loyalty rewards program can improve your customers’ experience with you and statistics show that 80% of customers are willing to pay more for a better customer experience. They’ll be happy, and they’ll be happy to hand you more money for your services. It’s definitely a profitable and smart situation to be in as a business.

 

Pro tip: No matter how large or small your dealership or auto repair shop is, you can still benefit from offering a loyalty rewards program. For example, Target just announced an expansion of their loyalty rewards program for customers by offering 1 percent back on purchases. Companies are becoming wise to the fact that customers respond well to being rewarded for their loyalty and money spent.

How BAYiQ Can Make Your Rewards Program Better Than Ever

Creating a loyalty rewards program using a software like BAYiQ can really take it to the next level.


Customers will have the ease and convenience of viewing all of their rewards points and history in a single dashboard, which will help them to manage their points for what they need.


As a shop owner, not only will you be able to view all of your customers activity, but you’ll also be able to see how they compare to non-loyalty customers, too.


This kind of analytical data will help you to make decisions that will positively impact your shop, enhance your customer’s experience with you, and ultimately improve your shop’s overall profit margin.


You’ll be able to offer timely, specific rewards based on birthdays, tire rotations, oil changes, weather changes, and more. These timely reward offers will keep you at the top of your customers’ minds while also proving that you are a valuable part of maintaining the life of their vehicle.


BAYiQ continues to expand their qualified and talented team, and their integrations with shop management systems. Click to schedule a demo today to learn more about the expansive benefits and features tire dealers are getting with BAYiQ.

Schedule a BAYiQ Demo


Resources:

https://www.fundera.com/resources/brand-loyalty-statisticsv

https://www.dcrstrategies.com/2017-customer-loyalty-infographic/

https://techcrunch.com/2019/02/05/target-expands-its-1-percent-back-loyalty-program-target-circle-to-more-u-s-markets/ 

Tags: customer retention, customer rewards, customer loyalty