Dealer loyalty, or dealership loyalty, is when customers keep going back to the same car dealership for purchases and services. It’s like sticking with a favorite store because you trust them and like their service. It’s a little bit different than brand loyalty in the automotive industry, which is when a customer is loyal to a particular manufacturer, for example, they always buy a Ford or a GM vehicle.

With loyalty to a car dealership, they might not only have a favorite brand, but also return to the same dealership for that brand over and over. Both types of loyalty are important for dealers to understand and maximize, but dealership loyalty is at the top of the list – and one way to boost it is with dealer loyalty programs.

What Are Dealer Loyalty Programs?

Dealer loyalty programs, also called dealer rewards programs, are systems that car dealerships use to reward customers for buying a car, making a repeat purchase, or getting service. These rewards might include discounts on future services, special offers, or even freebies like free car washes. It's like a club where loyal customers get treated better. These programs help dealerships build strong relationships with their customers and encourage repeat business.

Three Types of Dealer Loyalty Programs

There are a few different types of dealer loyalty programs, each designed to keep customers coming back to their dealership, including:

Sales Loyalty Programs

Sales loyalty programs reward customers for buying cars from the same dealership. When they purchase a vehicle, they earn points or perks that can be used for discounts on future car purchases, upgrades, or accessories. This encourages customers to return to the same dealer when they need a new car, building a lasting relationship and trust. It’s one of the most common types of automotive loyalty programs.

Service Loyalty Programs

Service dealer loyalty programs are just as important as sales: One study found that almost 50% of customers intend to buy their next car from the dealership where they service their current one. Service loyalty programs focus on encouraging customers to do just that. Every time they bring their car in for service, they earn points or rewards, which can be redeemed for discounts on future services, free car washes, or other benefits. Customers get top-notch service and savings, and dealerships get future business.

Partner Loyalty Programs

Partner loyalty programs focus on rewarding a dealership’s suppliers and subcontractors. These dealer rewards programs aim to strengthen relationships and encourage continued business. For example, a dealership might offer discounts on bulk orders of parts to a loyal supplier or provide bonuses for timely deliveries. This helps ensure reliable supply chains and fosters positive, long-term partnerships. While we’ll focus on customer loyalty programs here, partner programs can also be important.

The Importance of Dealership Loyalty Programs

Car dealership loyalty programs are crucial for building strong customer relationships. They encourage customers to return for purchases and services by offering rewards and perks. These programs also make customers feel valued, leading to higher satisfaction and trust, which are key to repeat business. Plus, happy customers are more likely to recommend the dealership to friends and family. Dealerships see loyalty program benefits like increased sales, improved customer retention, and a positive reputation in the community.

How Do Dealer Loyalty Programs Work?

Dealer loyalty programs are designed to reward customers for their repeat business. However, you can set them up in different ways, depending on what you think will work best for your customer base. Here are a few examples.

Free Trials

In free trial programs, customers receive a complimentary service for a limited time. For example, a dealership might offer three months of free Premium OnStar services when they buy a car. The customer gets to experience the benefits without any initial cost, and if they like it, they can choose to sign-up and continue using the service. This helps customers discover valuable features they might not have tried otherwise.

Sales Discounts

Sales discounts are straightforward dealer rewards programs that provide customers with a price reduction on their car purchase. To get the discount, customers might need to install a specific app or agree to allow connected car alerts. This not only gives customers a better deal but also helps the dealership stay connected and offer personalized services based on the data shared. You can then provide service reminders and exclusive offers, which can increase your service appointments and show rates.

Points Programs

Points programs reward customers with points for every purchase or service visit. For example, a customer might earn 10 points for every dollar spent on maintenance. They can use their points to get a discount on their next service appointment or save them up for a bigger reward like a car purchase discount. These auto loyalty programs encourage regular visits and keep customers engaged with the dealership.

Memberships

In a membership dealer loyalty program, customers join a special club or group to access exclusive benefits. For instance, a dealership might have a VIP membership that offers priority service, exclusive discounts, and early access to sales events. Members might pay a fee to join or earn membership through frequent business. Membership programs are excellent for making customers feel valued and appreciated, encouraging them to stay loyal.

Drive Dealer Loyalty with Better Car People

The best automotive loyalty programs aren’t one-size-fits-all. What works for a dealership in one area may not work in another region – or even for another dealership in the same region. That’s why BCP Loyalty™ offers customizable dealer loyalty programs that allow you to:

• Offer points and perks for repeat business with a Loyalty Points Program™
• Encourage repeat visits to their service department with a Prepaid Maintenance Program™
• Provide one-time discounts and benefits with Stored Value & Gift Cards™
• Create local partnerships to provide more rewards with our Keep It Local Program™

Our loyalty solutions are tailored to your needs: We’ll work with you to create a program that fits your dealership. If you’re ready to boost retention, drive customer spend and increase referrals, contact us today.