Automotive Rewards Program

INCREASING BRAND AND DEALER LOYALTY

The Challenge

Our client, a multi-billion dollar automotive manufacturer, believes in continuous improvement throughout its business, whether it be quality manufacturing or nurturing lasting relationships with its loyal customer base. This was most evident when developing a points based rewards program designed to increase demand for its own dealer services and repeat new vehicle purchases.

Two immediate needs surfaced to the top when they began exploring ideas for their new loyalty program. First, they wanted a program that focused on and influenced actual customer behavior. This meant engaging its customer base in a manner that complimented and enhanced the ownership experience, including routine maintenance. Second, the client sought a partner that understood the automotive space and could craft a program that achieved results in an environment in which service and sales cycles are relatively infrequent.

RELATED CONTENT

Two women exchanging shopping bag
Hyundai loyalty loop graphic

Solution

The client evaluated numerous service providers before selecting 89 Degrees based on recommendations focusing on three key objectives:

  • Establish a framework that kept the client top-of-mind among its owners even when their vehicle was not due for maintenance
  • Support dealers with tools and an earning mechanism that made it easier for them to integrate a formal rewards structure into their operational environment (including the issue of staff turnover)
  • Develop and communicate a compelling value proposition to owners, making the choice of their local dealership for ongoing service and vehicle repurchase even stronger

To meet the requirements, 89 Degrees created a program structure that followed a continuous cycle of engagement, earning, and redemption, rewarding customers for online shopping and regular service visits at any of their dealerships.

Close up of iphone screen apps

ONLINE SHOPPING

89 Degrees built a proprietary online shopping platform that enables members to shop at over 400 merchants, including Apple, Lowes, Walmart, and Best Buy. Members easily accrue points – as much as 5% of their purchase amount or more – increasing their spending power while simultaneously keeping the client top-of-mind.

Dealer Service

By rewarding owners with 5% earnings for all Customer Pay service visits at participating dealers, the loyalty program delivers an ongoing incentive for owners to return to their dealer, increasing both dealer and brand loyalty. Dealers also have the ability to increase loyalty or address a bad customer experience with “goodwill” points, which they can easily issue in any amount and at any expiration period. Spending points for service or a new vehicle couldn’t be easier. Owners first decide how many reward points they want to use and generate a mobile or print voucher for their preferred dealer.

Infrastructure Needs

To deliver an optimal customer experience, 89 Degrees built and manages a customer database – the 89 Degree loyalty engine – supporting separate websites for vehicle owners and dealerships. The infrastructure needs required 89 Degrees:

  • Capture all relevant data, including customer details, daily repair orders feed, dealer offers, and transaction activity
  • Manage point accruals and redemptions; including invoice management for dealer services
  • Deliver information for personalized email communications

89 Degrees provided the client’s partner network access to loyalty customer and dealership data via extended APIs. These APIs ensure key data can be spread and used effectively throughout the client’s communication network.

Closer Look

RESULTS

The program is growing at a rapid pace – increasing value to owners, dealers, and the client.  While the specific results are confidential, the program is now entering its third year.  Voluntary dealer participation is at an all-time high, as is the accumulation and redemption of rewards.  More than 75% of all new owners now join the loyalty program. The program continues to evolve with new recognition and reward elements, as well as new touchpoints and communications throughout the client’s ecosystem.

Services Rendered

  • Custom loyalty engine design and development
  • Partner API platform deployment
  • Technical integration, database development, and hosting
  • Program brand development
  • Email strategy and recommendations
  • Strategy and program management
  • Member and dealer responsive websites
  • Reporting and analytics

Related Blog Posts