Customer loyalty in the automotive industry has declined. The restricted supply chains and lower production in the past two years have negatively impacted brands, with customer loyalty dropping to 49.5% in June 2022. Brands like Ford and Rolls-Royce experienced a surge in loyal customers in 2022 thanks to their unique loyalty programs.
Automotive loyalty programs allow brands to overcome market challenges and create sustainable growth. Typically, there is a long break between repeat purchases from the same customer. This break between two purchases demands brands to keep customers engaged. Loyalty programs are a perfect fit for customer engagement.
Let’s see how brands leverage loyalty programs to create a loyal customer base.
Loyalty programs that are making a difference in the automotive industry:
1. FordPass
FordPass is an app-based loyalty program that instantly rewards new members with 42,000 points (for gas engines) and 75,000 points (for diesel engines).
The program offers complimentary maintenance & roadside assistance making these rewards customer-centric.
Incentives by the FordPass loyalty program:
- Members can use points to purchase accessories, pay maintenance fees, and buy their next Ford.
- Members get 24/7 virtual roadside assistance and priority access to fuel delivery, flat tire, and other roadside services.
- FordPass app allows members to stay connected with the complimentary remote features to start and stop their cars.
Key Takeaway
- Understanding the demand for valuable experiences, FordPass curated customer-centric rewards that make them feel helped & special.
2. Hyundai
Hyundai Mobility Membership is another excellent example of a customer-centric loyalty program. The program offers a plethora of core, mobility, and lifestyle incentives tailored to each member based on their activity in the loyalty app.
Using the mobile app to collect first-party data allows Hyundai to stay aligned with customer expectations.
Incentives Offered by Hyundai Mobility Membership:
- Members get access to hand-picked deals.
- Members can enjoy exciting lifestyle rewards from leading brands across entertainment, dining, fitness, vacations, and more.
- Core benefits include an extended warranty, discounts on tire and oil changes, and exclusive deals on accessories.
Key Takeaway
- The loyalty app helps Hyundai to collect customer insights & deliver personalized experiences to members. Furthermore, the experiential rewards create an appeal to become part of the loyalty program.
3. Stage 3 Motorsports
Stage 3 Motorsports is one of the leading performance parts online retailers in the United States. The program rewards members for multiple activities like account creation, reviews, purchases, shares/follow on social media, etc.
The brand also keeps customers engaged through giveaways during the holiday season. Focusing on referral rewards helps the brand build a community of loyal members.
Incentives Offered by Stage 3 Motorsports:
- Members can participate in the 12-day Christmas giveaway and enjoy exciting gifts.
- Members get rewards for sharing referrals on social media.
- The program also offers birthday and anniversary rewards to members.
Key Takeaway
- Stage 3 Motorsports incorporated gamification in their loyalty to increase customer participation and engagement. The holiday season giveaway ensures that the brand is remembered during good times, nurturing an emotional connection.
4. Europcar Privilege
Europcar’s ‘Privilege’ is a hybrid loyalty program with permanent perks available for every member and a tiered system for long-time engagement. Members can enjoy unique perks like a permanent 10% off on car rentals, free weekends, complimentary car upgrades, and discounts on Accor hotels.
The hybrid approach signifies the innovation in loyalty programs necessary to keep members excited and engaged.
Incentives offered by Europcar Privilege:
- Members get 10% off the public rate for a car or van rental of 3+ days.
- Members can access priority service and a free one-car category upgrade.
- Top-tier members enjoy double complimentary car upgrades and one-year Priority Pass membership for airport lounges.
Key Takeaway
- With a hybrid approach, the loyalty program targets varied customer segments, simultaneously escalating the lifetime value of members.
5. Rolls Royce Whispers
Through its loyalty program, ‘Whispers,’ Rolls Royce aims to engage members with an experience curated only for car owners. Members can participate in rare and memorable experiences, enjoy exclusive merchandise and connect with like-minded individuals through the program.
Incentives offered by Rolls Royce Whispers:
- Access to exclusive events, performances & occasions.
- Specialists are ready round the clock for requests.
- Exclusive merchandise for whispers members.
- Members can enjoy rare (and otherwise inaccessible) luxury offerings.
Key Takeaways
- Focus on building an elite community of owners; Rolls Royce turns members into brand ambassadors.
- The program increases customer engagement & appeal by offering exclusive experiences inaccessible to others.
Customer retention challenges faced by the automotive industry
The industry faces low customer retention due to these three major pain points —lack of customer data, complicated buying process, and inability to influence customer behavior. Below are some aspects that can help brands overcome typical industry challenges.
| Challenge | Solution | How to overcome |
| Lack of customer insights | Deep data analytics | Brands can use deep data analytics to analyze customer data collected through loyalty programs and generate actionable insights. |
| Lack of touchpoints with customers | Robust Technology Platform | An omnichannel loyalty program backed by a robust technology platform allows brands to connect with customers across multiple touchpoints. |
| Inability to influence customer behavior | Strategic consultation | Brands can use data-driven strategies to influence customer behavior through rewards and incentives. |
Conclusion
Brands in the automotive industry are winning customer loyalty with innovation in rewards, program structure, and intelligent use of technology. Technology has enabled brands to keep customers engaged by offering experiential rewards, using hybrid programs, and personalizing the buyer’s journey. Also, strategic consultation allows marketers to bring agility and tackle changing market scenarios effectively.
Deep data analytics, robust technology platforms, and strategic consultation are capabilities that can make a loyalty program customer-centric and forge long-term customer relationships.