The automotive industry is undergoing a massive transformation, urging car manufacturers, dealerships, and service centers to innovate for survival and leadership. In this dynamic landscape, Car Dealer Loyalty Programs are emerging as a powerful tool. Once underestimated in the automotive sector, next-generation reward systems are now proving their worth in boosting key performance indicators for dealerships.
For a deep dive into industry statistics and future trends shaping loyalty programs, download our comprehensive Global Customer Loyalty Report.
Key Points to Consider:
- Car dealer loyalty programs are specifically tailored to address the unique challenges and opportunities within the automotive dealership environment.
- The rise of connected car technology presents exciting new avenues for rewarding customer loyalty.
- B2B loyalty initiatives and strategic partnerships are gaining momentum in the automotive ecosystem.
- Effectively incentivizing data sharing through loyalty programs is becoming increasingly important.
- Explore our curated list of 8 inspiring loyalty program examples for practical insights.
Understanding Car Dealer Loyalty Programs
Car dealer loyalty programs are specialized customer retention strategies designed for businesses within the automotive retail sector, primarily focusing on dealerships but also relevant to manufacturers and related services like car rentals.
Whether it’s a program managed directly by a car manufacturer or implemented by an independent dealership, the core objective of car dealer loyalty programs remains consistent: to maximize customer lifetime value. These programs can be customized to achieve specific dealership goals, such as enhancing personalized customer experiences, building stronger brand recognition, and amplifying social media engagement.
“As connected vehicles become more commonplace, the potential for OEMs to operate effective loyalty schemes grows significantly. Integrating a loyalty program that rewards customers strengthens the likelihood that they will favor the dealership over independent service providers. Furthermore, location-based features in connected cars unlock new possibilities. For instance, an OEM partnership with a major coffee chain could encourage customers to visit their preferred coffee shop, earning points and redeeming rewards outside of the conventional dealership interaction.”
Tom Arnold
Account Director at Acxiom UK
Here are several models that car dealer loyalty programs can adopt:
- Commitment-Based Programs: Members receive discounts on vehicle purchases in exchange for committing to dealership services, utilizing branded apps, and enabling connected car features for data sharing.
- Membership-Based Programs: These programs focus on cultivating customer relationships through exclusive content, special offers, and priority service access. Open to all, they prioritize brand recall for future purchases or service needs without immediate discounts.
- B2B Loyalty Programs for Partners: Designed to reward partners, suppliers, and subcontractors, these programs aim to improve partner performance and strengthen business relationships within the automotive network.
- Loyalty Programs for Auxiliary Services: Coalition programs encompassing rentals, car sharing, body shops, and repair services, allowing customers to accumulate points across different automotive service brands and redeem them within the network.
BMW Digital Connect offers a variety of in-car features activated remotely via subscription. These features can serve as high-value rewards within a car dealer loyalty program.
Overcoming Customer Retention Challenges for Car Dealers
To design effective loyalty program features and technologies, it’s essential to understand the specific challenges faced by car dealerships in retaining customers.
The automotive retail sector is characterized by infrequent purchase cycles, leading to critical challenges for dealerships:
- Limited Customer Touchpoints
- Scarcity of Robust Customer Data
- Difficulty Influencing Customer Behavior
Looking for more strategies to gather valuable customer data? Explore our Mission: Loyalty video for expert insights!
Due to the high value and infrequent nature of vehicle purchases and major repairs, dealerships have limited windows to engage meaningfully with customers. This scarcity of interaction makes it difficult to gather comprehensive data on vehicle usage, customer preferences, and driving habits, hindering personalization efforts. Moreover, the lack of consistent touchpoints makes it challenging to educate customers about the brand and cultivate lasting loyalty.
Fortunately, technological advancements are poised to revolutionize customer engagement. Connected car technology, in particular, enables sophisticated vehicle management through subscription-based features like smart parking. This fosters consistent customer interaction and encourages frequent use of the dealership’s smartphone app, creating opportunities for personalized push notifications and ongoing communication.
Whether leveraging dedicated apps or connected car capabilities, a well-structured reward system is crucial for enhancing customer retention by incentivizing valuable customer actions.
“Personalization is the key to maximizing brand loyalty, especially in the automotive industry. Car purchases are infrequent, making continuous engagement crucial. By creating personalized interactions over time, dealerships can cultivate brand loyalty and drive long-term customer retention.”
Patrina Kerr
CEO of Hachiko
Essential Loyalty Program Features for Car Dealerships
Successful car dealer loyalty programs are built upon a combination of key components. To create a program that truly stands out and captures customer attention, seamless implementation of these elements is vital. Here are some of the most impactful features for dealerships launching exceptional loyalty initiatives:
Engaging Membership Portal
Dealerships often underestimate the importance of a visually appealing and user-friendly program “home base.” The membership page is the primary point of interaction for customers with the loyalty program. It must be inviting, easy to navigate, and clearly highlight the benefits of joining. Features should include member loyalty IDs for in-dealership recognition and a comprehensive FAQ section addressing program rules and details.
The membership page should visually display customer progress towards rewards and higher tiers, enhancing engagement.
Advanced Loyalty Engine
The loyalty engine defines the core mechanics of the program. A points-based system allows members to accumulate loyalty currency for spending at the dealership or partner locations (in coalition programs). These points are then redeemable for discounts and exclusive offers on future purchases and services.
Alternatively, a perks-based system offers unconditional benefits to all members upon enrollment. Perk programs are ideal for building a centralized customer database and collecting contact information for ongoing communication and customer education. Perk loyalty programs are effective for fostering a strong customer base.
Coalition Programs
Coalition loyalty programs bring together multiple brands under a unified platform. In the automotive context, this can strengthen relationships between manufacturers, dealerships, repair shops, and even fuel stations. Unlike simple reward integrations with partners, coalition programs allow customers to earn points at any participating location and redeem them at another within the network.
Coalition programs enhance the value proposition of loyalty membership, providing a competitive advantage.
Subscription-Based Membership
While most loyalty programs are free to join, the subscription model, popularized by companies like Amazon, can be successful if the perceived value is high enough. For car dealerships, subscription benefits might include premium roadside assistance, complimentary maintenance packages, and proactive vehicle health alerts. The key is offering rewards that justify a recurring membership fee. Subscription loyalty programs can create a recurring revenue stream while offering premium services.
Partner Rewards
The appeal of a car dealer loyalty program is significantly enhanced by diverse partner rewards. Members can enjoy benefits like complimentary coffee at partnered gas stations or discounts on auto parts at affiliated body shops. A well-curated reward catalog, focusing on convenience and relevance to drivers, is crucial. Leveraging partnerships to their full potential expands the program’s value proposition.
Partner rewards are a key trend in loyalty programs. Learn more in our Global Customer Loyalty Report 2023 – available for download!
Gamified Data Collection
Addressing the challenge of limited personalization, dealerships can use loyalty programs to incentivize data collection. Interactive surveys about driving habits, vehicle preferences, and service satisfaction, offered as part of the loyalty experience, encourage customers to share valuable information.
Advanced profiling systems can then utilize survey responses to create customer segments and update individual profiles. This data empowers dealerships to send more relevant and personalized communications, enhancing customer engagement and marketing effectiveness.
Gamified profiling unlocks deeper customer insights, enabling more targeted and effective marketing strategies.
Connected Car Technology Rewards
The future of car ownership involves smart vehicles with over-the-air updates and feature management. Car dealer loyalty programs can leverage this technology by offering early access or free trials of connected car features as rewards. For example, dealerships can offer a week of enhanced driving assistance to new members, extendable by redeeming loyalty points. This introduces customers to new technologies while adding value to the loyalty program.
Mobile Engagement
A dedicated loyalty app, complete with a digital loyalty card, serves as a central engagement hub, significantly increasing customer touchpoints. The app can deliver alerts about program updates, exclusive deals, and dealership news. It can also integrate service scheduling, partner information, reward redemption, interactive quizzes, and even helpful features like weather reports. Complementing a loyalty app with a Mobile Wallet solution provides convenient digital storage for loyalty cards, event tickets, and reward passes, further enhancing mobile accessibility.
Watch our video to discover how Mobile Wallet solutions can strengthen customer connections.
8 Inspiring Car Dealer Loyalty Programs for Dealerships
Here are eight examples of successful car dealer loyalty programs and dealership reward programs to inspire your own strategy:
1. Enterprise: Enterprise Plus
Established in 1957, Enterprise operates globally with a strong customer-focused loyalty program combining earn & burn mechanics with tiered benefits.
- Earn 1 point for every dollar spent, redeemable for discounts on future rentals or free rentals.
- Points expire after 3 years, extendable with qualifying rentals.
- Four membership tiers based on rental frequency or duration.
- Tier benefits include higher point earning rates and complimentary vehicle upgrades.
Flexible point expiration policies, especially in automotive loyalty programs, can significantly enhance customer engagement and retention.
Why it Works:
- The earn & burn model remains effective in the car rental industry due to more frequent customer interactions compared to car purchases.
- A multi-year point expiration policy is well-suited to the automotive purchase cycle.
- Tiered systems effectively sustain customer interest and encourage long-term engagement.
2. Ford Motor Company: FordPass
Ford, a pioneering automotive company, utilizes the FordPass app-based loyalty program to reward customer loyalty in diverse ways.
- Customers earn points on Ford purchases, redeemable for discounts at participating dealerships.
- 42,000 points unlock complimentary maintenance.
- 24/7 roadside assistance via the FordPass app for loyalty members.
- Exclusive early access to events for program members.
- App-based vehicle connectivity for remote control and scheduling.
Strategic partnerships, like Ford’s collaboration with Visa, offer valuable bonus rewards and enhance program appeal.
Why it Works:
- Leveraging partnerships expands point-earning opportunities for customers.
- Roadside assistance benefits are highly valued by drivers.
- Early access perks create a sense of exclusivity and value.
3. BMW: Inside Edge
BMW UK’s Inside Edge program, powered by Antavo, focuses on direct engagement with company car drivers, offering a reward-only, perk-driven system without points.
- BMW owners enroll by validating their license plate.
- Two reward types: claimable gifts like movie experiences and prize draws.
- Short surveys to unlock specific rewards, gathering driving habit and preference data.
Inside Edge focuses on exclusive perks for fleet drivers, building strong relationships with company car owners.
Why it Works:
- Perk-driven loyalty programs are inclusive and provide immediate reward gratification.
- Prize draws add excitement and variety to the reward options.
- Partner rewards beyond car-related benefits, like coffee perks, broaden demographic appeal.
4. Volvo Cars Loyalty Program
Volvo in the UAE offers a unique program rewarding vehicle age, providing increasing benefits on parts and labor as cars get older.
- Four tiers based on vehicle age: 0-2, 3, 4, and 6+ years.
- Discounts up to 35% on parts and 30% on labor.
- Additional benefits include free vehicle checks, mobility car discounts, and car recovery services.
Volvo’s program encourages customer retention by rewarding long-term vehicle ownership and incentivizing maintenance services.
Why it Works:
- Tiered benefits, especially discounts, motivate customer engagement.
- Basing tiers on vehicle ownership duration naturally builds brand loyalty.
- Tiered systems effectively create a perceived value hierarchy within the program.
5. Europcar: Privilege Loyalty Program
Europcar’s Privilege program is a leading car rental loyalty system, employing a hybrid model with both permanent perks and tiered benefits.
- All members get 10% off rentals of 3+ days.
- After 3 rentals, members earn free weekend rentals, priority service, and car upgrades.
- Top-tier members get double upgrades and airport lounge access via Priority Pass.
Europcar’s Privilege program targets diverse customer segments, including a specific version for business travelers.
Why it Works:
- Inclusive base-level rewards encourage program enrollment.
- Benefits like free upgrades offer tangible value and flexibility.
- Hybrid loyalty models combine the strengths of perk and tiered systems.
6. Nissan: One to One Rewards
Nissan’s One to One Rewards program offers a straightforward earn & burn system across its global dealership network.
- Points earned on vehicle, parts, and service purchases.
- $250 discount on next vehicle purchase for program members.
- Physical loyalty cards for enrolled members.
Nissan’s traditional earn & burn approach provides a simple and quick-to-implement loyalty program structure.
Why it Works:
- High-value rewards are appropriate for infrequent, high-cost automotive purchases.
- A $250 discount on a future car purchase is a significant incentive.
- Physical loyalty cards can still convey exclusivity and brand recognition.
7. Fred Beans: AutoRewards program
Fred Beans AutoRewards, from a Philadelphia-area dealership group, focuses on discount-driven rewards and transactional/non-transactional point earning.
- Points redeemable for $2 discounts (up to $2,000 total).
- Milestone-based free oil changes at 350, 500, 750, and 1,000 points.
- Points earned for referrals, app usage, and membership card swipes.
Engaging customers between purchases is vital in the automotive industry, and Fred Beans rewards non-transactional activities effectively.
Why it Works:
- Frequent-use rewards like oil changes offer high perceived value.
- Desirable rewards at each tier milestone maintain engagement.
- Rewarding non-transactional engagement keeps the brand top-of-mind between purchases.
8. Subaru: Ownership Benefits
Subaru’s Ownership Benefits program in the US offers a range of privileges to owners, including discounts and event access, rather than a traditional points-based system.
- Exclusive perks for verified Subaru owners.
- Individual application process for each benefit.
- Regularly updated list of privileges.
Seamless user experience is key for successful automotive loyalty programs, allowing easy access to benefits from a central platform.
Why it Works:
- Program exclusivity is ensured by limiting membership to verified car owners.
- Providing access to numerous rewards compensates for a potentially complex enrollment process.
- Regularly refreshing the reward list keeps the program dynamic and engaging.
Accelerate Your Dealership’s Success with Loyalty Programs
Car dealer loyalty programs are powerful tools for driving brand success and fostering genuine customer loyalty in a competitive market. We are ready to demonstrate our advanced loyalty solutions and API capabilities to support your vendor selection process. Send us your RFP to explore how we can help.
And don’t forget to download Antavo’s Global Customer Loyalty Report for in-depth insights, statistics, and future trends in next-generation loyalty programs.
Sheila Power
Sheila is Antavo’s VP of UK & North America, bringing extensive experience in SaaS technology and loyalty program consulting. She is passionate about helping brands develop effective loyalty strategies.
