OEM loyalty programs are Swiss army tools for the industry in Australia and New Zealand; simultaneously supporting brand advocacy, share-of-wallet, and customer retention initiatives. These programs do a lot of heavy lifting in retaining brand loyalty, especially for the automotive sector.
Considering the strategic importance of customer loyalty programs, this piece will explore the tactics employed by the highest-performing OEM/automotive loyalty programs, breaking down how they work in terms of customer retention, but also the overall impact on the automotive industry itself.
Ranging from dealership loyalty programs all the way through overarching automotive loyalty programs, the ways that loyalty has solidified the industry cannot be understated. Let’s check under the hood of the best automotive loyalty programs and see how they can bind participants and brands together in solidarity.
Customer loyalty is key for OEM markets and OEM loyalty programs across AU and NZ, specifically when it comes to share of wallet. Customer retention continues to be an issues within the automotive sphere, and the industry seems to have found a way to navigate the problem by employing customer loyalty plans, rewarding continued support for regular customers.
Ranging from membership models to points-based and incentive-based, the overall principle is rewarding customers for ongoing support by finding ways to solve pain points and add extra value to transactions, warding off the potential issue of moving to other suppliers or vendors, instead promoting repeat business.
With a focus on the customer, including adding elements of personalisation based on the customer’s buying habits, the automotive industry’s loyalty programs support a shift towards a more sophisticated vehicle management paradigm.
With the continued evolution of loyalty programs, the necessity of understanding the customer’s needs and providing sources of value in addition to regular business has become integral for success across the competitive automotive industry for any successful OEM loyalty programs.
With customer retention remaining a major issue within the industry, the need for loyalty or rewards programs have increased in Australian and New Zealand markets as an essential way to keep competitive in market. Though car companies generally promote brand repetition through status symbol advocacy, the secondary OEM market can capture repetitive business, and with it, the powerful data that comes with regular customers.
To overcome a lack of data, loyalty programs have evolved to recruit additional data points and contact touchpoints in exchange for reward value from the brands requesting this. An example of this could be providing exclusive previews of upcoming products in exchange for consistent interactions with the program platform, which can also include technical support and training sessions for B2B partners.
By providing information and supporting customers, the participants within the program become more loyal to the brand and less likely to move away due to competitive factors such as price differences. Knowledge gaps have been cited as a recurring issue in B2B sales, so by providing this to the customer directly, it empowers them to stay with a brand that they know will be able to support them.
While these bonus features are important for the sustained lifespan of a customer loyalty program, it’s important not to overlook one of the main draws – the rewards that can be redeemed in exchange for points. A varied and desirable reward spread is essential for the ongoing success of a program, as receiving a reward that has been earned by a customer holds a significant psychological draw, and provides trophy value which is beneficial to brand advocacy.
It can also be advantageous in terms of customer lifetime spend, in the form of inspiring extra purchases in order to reach a specific milestone or point value for a higher-cost reward. These goals can be supported by regular sales team interactions and personalised communications, targeting high earners with regular check-ins and reminders of how close they are to reaching their goals. These also work alongside the drive to keep the brand front-of-mind.
With so few touchpoints, these programs necessitate finding ways to nurture customers, creating lasting impressions beyond individual transactions. The strategic use of a reward system becomes a powerful tool, not just to increase sales but to turn customers into vocal advocates.
It’s important to explore the symbiotic relationship between loyalty programs and brand advocacy. By strategically nurturing program members, leveraging social media presence, and implementing a robust reward system, companies in the Southern Hemisphere can not only increase sales but also create a community of advocates influencing even ride-sharing services and future purchases.
As with many other B2B industries, recognizing and addressing major pain points is a cornerstone of successful loyalty programs. By identifying pain points and integrating solutions and educating dealers on how best to address the customer’s expected experience, these programs prompt customers to not only stay engaged but also enjoy exclusive benefits.
One such solution gaining traction in the automotive loyalty landscape is the integration of connected car technology. This goes beyond the initial concept of loyalty, providing customers with free services, high-value purchases, and more consistent engagement. Automotive loyalty programs, in partnership with a broader dealership and car-sharing network, offer exclusive benefits that extend beyond traditional third-party dealerships.
By recognizing customer struggles and implementing innovative solutions, these programs not only increase revenue but also redefine the loyalty landscape. Successful programs in other industries can serve as inspiration for automotive loyalty programs, demonstrating that a customer-centric strategy can not only address current challenges but also prompt consistent engagement through exclusive rewards and high-value offerings.
By nurturing a devoted customer base through these initiatives, businesses not only retain customers but transform them into loyal advocates. The rewards reaped from customer loyalty programs extend beyond mere transactions; they foster brand loyalty and create a community of dedicated loyalty program members. In the realm of automotive loyalty programs, this approach serves as a testament to the power of understanding and catering to the preferences of the ANZ customer base, ultimately solidifying the enduring bond between car manufacturers and their valued customers.
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In-store loyalty programs typically operate by offering rewards, often on a per-visit basis, to customers who make purchases in person.
High-value rewards are crucial as they entice customers to engage more with the program, driving increased customer lifetime value and fostering loyalty.
Average order value contributes to the calculation of customer lifetime value, a metric that indicates the total revenue a business can expect from a customer throughout their entire engagement.
Stamp cards are a classic loyalty program tool where customers earn points or stamps for each purchase, eventually leading to rewards or discounts.
Car loyalty programs are tailored specifically for the automotive industry, addressing three major pain points: car sharing, partnership networks, and prompts for customers to visit third-party dealerships.
Educating buyers is essential in loyalty programs to inform customers about earning rewards, different reward options, and how to maximize benefits, particularly related to car purchases.
Customers can earn points efficiently by engaging in specific activities, making purchases during off-peak times, and taking advantage of promotions during their birthday month.
In-person loyalty programs create a more personal connection with customers, encouraging them to visit more frequently and spend more, thereby increasing their overall lifetime value to the business.
