Customer Loyalty

Plug Your Service Revenue Leaks with a Loyalty Program

Revenue Leaks

Written by Mike Martinez for Photo credit:

Is your service revenue leaking? Chances are, the answer is a resounding and costly “yes.”

DMEautomotive research shows that customers who spend $300 or more per year on service also spend a combined $1.5 million per year at competing shops. And this comes at a time when dealership service departments already fight an uphill battle against the ever-encroaching aftermarket.

The average time between dealership service appointments has increased by 4.2 days from 2013 to 2014, costing dealers an average $85,650 annually in service revenue, or about $20,400 in revenue per store for each day added to the interval.

One of the most compelling of dealers’ options to fight this expensive trend is a dealer-branded customer loyalty program. Dealers using a loyalty program experience an average reduction of 1.1 days in time to their customer’s first retained visit, resulting in a $27,000 average annual revenue lift.

In a study of 13 import stores, we found that dealerships experienced an increase of $362,000 more a year in combined sales and service revenue after launching a loyalty program compared to similar stores that did not.

Want more results? Go mobile. Our research has shown that 58% of loyalty emails sent to customers were being opened on mobile devices. Continue reading here.

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