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29 Reasons Your Dealership Needs Rewards

Posted on Apr 01, 2010 - 08:21 PM

1. It is 7 times more expensive to attract new customers than it is to retain existing customers.
2. Customers who belong to a rewards program visit twice as often and spend up to four times more.
3. A loyal customer is worth 10 times the value of a single purchase customer.
4. 67% of consumers would be influenced to join a rewards program if they received a percentage off their total bill.
5. In 2006, the number of rewards memberships rose to 1.31 billion.
6. Over 85% of U.S. households participate in at least one rewards program.
7. The average household belongs to nearly 12 rewards programs.
8. Active rewards program participation is 39.5%.
9. Notable store chains have increased visits among rewards club members by up to 93% and incremental sales by up to 65%.
10. In August 2007, 17% of consumers said they were members of a rewards program versus just 8% in August 2006. That’s a 53% jump in just one year!
11. The growth of rewards programs are outpacing that of frequent flyer and preferred guest programs.
12. In 2007, 54% of consumers who participated in rewards programs belong to at least two or more, up from just 43% the year before.
13. Repeat customers spend 1/3 more than new customers each year.
14. Over 28% of consumers report they are ‘extremely likely’ to increase the number of visits they make to a particular store if they offer a rewards program.
15. Repeat customers are more than twice as likely to refer a new customer.
16. Loyal customers insulate your business from competitive and economic assault.
17. 82% of Americans participating in rewards programs have referred friends and family to that store.
18. Loyal customers generate repeat sales at a fraction of the marketing cost and effort required to find, inform, interest and sell prospects.
19. Instead of giving cash refunds for mistakes, give customers a rewards membership!
20. Loyal customers account for higher buying rates and lower marketing and service costs than other customers.
21. Loyal customers are the best source of qualified referrals.
22. Pass out or sell rewards memberships at grand openings and for special promotions.
23. Rewards participation rates for major grocery stores is up 65%, 85% at hotel chains and 100% for major airlines.
24. A rewards program provides a direct channel of communication process with your customers and a unique opportunity for customer engagement and interaction with your product and/or brand.
25. In a survey of 2000 consumers, 90% said they could be persuaded to switch or discontinue doing business with a company they currently patronize, depending on the incentive. Rewards locks them in!
26. Consumers today are spoiled and expect to be rewarded for their purchases.
27. There is no other marketing medium that provides the same amount of feedback, customer engagement and business intelligence.
28. 60% of consumers avoid advertising and 54% avoid products from companies that overwhelm them with too many marketing messages. 100% of rewards members look forward to learning more about the program.
29. The best loyalty programs are those that offer instant rewards without making the customer wait.

Today’s consumer has more choices and is better informed. You can no longer rely on great service and simply satisfying customer needs. You have to connect with them, reward them and give them a compelling reason to return.

We’ve rethought rewards, you should too. Click Here.

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