Loyalty programs are a powerful tool for automotive aftermarket manufacturers looking to drive engagement, increase market share, and build long-term relationships within the trade channel. A well-designed program can influence purchasing behaviour, encourage repeat business, and create stronger brand affinity across the sales chain.
In this piece, we’ll explain how these programs affect the supply chain, provide a case study demonstrating a successful aftermarket parts loyalty program, and define what makes a B2B loyalty program effective and desirable for customers.
In the automotive aftermarket, the supply chain flows from parts manufacturers to distributors, resellers, and end businesses such as mechanics, service centres, and tyre retailers.
With high-level decisions being made above the individual store levels, brands need to find a way to receive preference from retailers to have their stock positioned front and centre. Using a loyalty program can ensure that your brand remains a priority by providing your customers with an additional source of value from doing business, fostering ongoing engagement through the continued, always-on nature of the program.
By implementing a structured model reinforcing a behavioural change of “spend, earn, redeem” for spending with the brand in question, automotive parts manufacturers can motivate customers to prioritise their products, reinforcing brand preference while increasing sales. Using a carefully curated catalogue of relevant rewards and bonus point campaigns, your brand can find ways to emotionally connect with your customers, driving purchases through preferred distributors.
One of our clients, a leading aftermarket parts manufacturer, sought to find a way to stand apart from the crowded market and enhance brand loyalty within its reseller network. Launching a loyalty program with rewards based on points for dollars spent, the company wanted to reward resellers who purchased their products through approved distributors.
Participants earned points based on purchase volumes, which they could redeem for high-value merchandise through a program platform, with reward options selected which would click with their customer demographic.
The manufacturer introduced a bonus points campaign to amplify engagement, offering additional rewards for purchasing specific product lines. This allows the brand to effectively funnel sales toward a specific stock line, whether that be low-performing or dated.
They also found ways to promote redemptions through the program’s platforms with specific promotional days throughout the lifespan to maximise participant engagement. These promotional days were accompanied by communications directly to participants to drive hype in the days leading up, as well as updated catalogue items being showcased via the platform. The day was so successful that it led to redemptions doubling the monthly average in a single day, and many participants exhausted their points total in exchange for highly desirable limited rewards.
The results were significant:
A successful automotive aftermarket loyalty program is built on three key elements: targeted rewards, strategic engagement, and measurable ROI.
By ensuring these elements are present and considered in their program, brands can create a loyalty program that boosts sales in the short term while fostering long-term customer relationships.
The most effective B2B loyalty programs in the automotive aftermarket take a balanced approach, ensuring that all participants receive value while incentivising increased spending through targeted campaigns.
By implementing a structured model that communicates the benefits of purchasing through their brand, manufacturers can bolster customer relationships while providing a clear source of value for doing business, increase their wallet share, and maintain a competitive advantage within the industry.
