Loyalty rewards is a marketing strategy in which customers earn credits based on purchases that can be used toward future purchases. Loyalty rewards should be viewed as discounts and therefore should not be offered to all customers. People will view earned credits as ‘money in the bank’ and will be influenced to return for service. Following are points to consider regarding loyalty rewards for automotive repair customers:
- Set a Purchase Minimum – It’s best for loyalty rewards to be offered selectively. If they’re offered to all customers then they become the regular price. So, a minimum amount of business to qualify can be established in order to reward the top customers.
- Base Credits on Parts or Labor Sales – Loyalty rewards are best based on items that are sold for a profit. Credit calculations should not include items such as taxes and fees. Basing earned credits on labor or parts sales is the safest route.
- Market Customer Earned Credit Balances – Customers should be encouraged to use their earned credits. Listing the available balance on their invoice is a good way to do this. Sending email or text reminders of the balance available can be effective. Anything to remind the customer that they have rewards available will incentivize them to come in for service.