Loyalty Programs

[ATLAuto]

Joe ... GREAT webinar with Elite on Tuesday. Thank you for taking the time to do it.

 

During the webinar, you got on the topic of Loyalty Programs. Right when it started getting good, the audio dropped out to near incoherence. It was probably on my end, as I was driving through rural Indiana at the time and listening in on a weak signal. Regardless, if you wouldn't mind, could you recap a few of your thoughts on what works and what doesn't work on Loyalty Programs?

[Joe Marconi]

I’m Glad you enjoyed the webinar. For me, rewarding loyalty is better than trying to be everything to everyone. As I stated on the webinar, I am not a fan of discounting, but I have no issues with creating loyalty programs that helps to anchor my top customers to my shop.

 

You need to first start with identifying your top customers and understand that these customers will bring you the greatest amount of return. Plus, by creating programs that promote long term relationship building, it will help you recognize first time customer that qualify as your future champion customers.

 

In other words, price shoppers live for today, they look for that discount and not interested in a long term relationship. The customers that I want are those that see the value in doing business with me on a long term basis. That's why I don’t advertise cheap oil changes or other cheap discounts.

 

First, my promotions are built around packages. For example, this time of the year I will typically send out a promotion to my customers and to my target market area with a headline, “Hit any potholes lately?”

 

Knowing that everyone hits potholes will draw the customer to read more. But, here’s the offer:

 

It’s been a tough long winter; treat your car to the best!

Winter Recovery Package

Change oil and filter (up to 5 qts conventional oil)

Rotate tires and check balance (if needed)

Test Antifreeze/Coolant

Test battery and charging system

Inspect tires, adjust air pressure

Add BG Engine Treatment and Fuel Cleaner

Inspect air and cabin filters

Inspect brakes, steering & suspension

Top off all fluids at no extra charge

Check lights and wiper blades

 

All for $69.95

 

This narrows the target market, but those that see value buy this.

 

For existing customers I have a "Pre Paid Maintenance Package" that includes an oil change, multipoint vehicle inspection, fuel and engine additive and a tire rotation with balance. (Notice,I don't call it an oil change package, in marketing be different, don't copy the other guy). Purchased individually the price each would run about $75.00. We sell a Pre Paid package price for $269.00. This marketing only attracts those loyal customers and those that have enough faith and trust that they want to return again and again. Those looking for a cheap $18.95 oil service never buy these, and that’s ok. I rather reward those that value the program and value my company.

 

Hope this helps, I have more programs, but I think you get the idea.

[HarrytheCarGeek]

What an excellent post! Thanks Joe.

[Joe Marconi]

Thanks, a lot of what I do is concentrating on marketing. Today, with everyone getting into the total car care business (from dealerships to body shops) we need to differentiate ourselves and make sure we know our target customer base. We also need to identify and take especially great care of our champion customers.

[ATLAuto]

Great advice on the package deals and rewarding consistent customers. Thank you again for hosting this seminar, and please keep us posted on upcoming ones.

[CARMandP]

Someone beat me to the punch Joe. Great webinar. Enjoyed it tremendously. Thanks for the info on the packages. We are beginning to do something like this for our shop and your insight is greatly appreciated.