Airlines and hotels have been doing it for years with their frequent traveler programs. Credit card processors have their rebates that are offered in the form of cash and merchandise. Customer loyalty programs are used by all types of businesses for the simple reason that they work. When a customer has a choice of a number of service providers accumulated earned rewards will influence their decision to stay with a business. Loyalty rewards can be managed and used in a number of ways to encourage customers to do business with a shop. Following are keys to using customer loyalty rewards in auto repair:
- Base Rewards on Business Volume – Rewards should be earned based on how much a customer spends. For example loyalty rewards could be calculated as a percentage of labor or parts.
- Apply Rewards as Payment on Future Repairs – When the customer brings their vehicle in for service, apply their loyalty rewards as a form of payment to reduce the amount owed.
- Regulate Reward Usage – Setting a limit on the amount of rewards that can be applied on any given visit will prevent a big impact on a single sale as well as encourage the customer to used them rather than letting them accumulate.
- Define the Reward Program – Communicate to the customer how the reward program works. Make sure they understand how rewards are earned and how they’re used.
- Use Tiered Reward Levels – Loyalty rewards can be based on volume of business. For example, a customer that spends 5K a year with the shop could earn a greater percentage than a customer that spends 1K.
- Notify Customers of Available Rewards – Communicate reward levels to customers to remind them of what they have available. This will serve as a positive communication and reminder of the shop.
- Grant Rewards to Organizations – Rewards earned by members can be granted to organizations. Businesses, churches, associations and even families will fit this model. Offering discounts to members can increase volume while the loyalty rewards can be applied as payment for services on the organizations vehicles.
- Grant Rewards for Referrals – Loyalty rewards can be granted to a customer that provides a referral thus showing appreciation for their support.
- Allow Rewards to be Transferred – Sometimes a customer may want to give their rewards to another. For example a parent may want to use their rewards to pay for their children’s repair work.
- Promote Reward Offerings – Let customers and prospective customers know about your loyalty rewards program. Loyalty rewards can attract customers as well as retain them.
