How Car Dealership Loyalty Programs Drive Revenue and Build Lifetime Customers

Over 90% of major brands today have a loyalty program —McDonald’s, Disney, Amazon, Nike, and countless others. Type any brand name into Google with “loyalty program,” and you’ll likely find one. So why aren’t more car dealerships taking full advantage of this?

In an industry where repeat business is the holy grail, loyalty programs offer one of the highest ROI paths to consistent growth in sales, service, and customer lifetime value. Below, we’ll break down the data, real-world success stories, and how your dealership can implement an effective program.

---

Why Loyalty Matters More Than Ever for Dealerships

• 65% of a dealership’s revenue comes from repeat customers.
• It costs 5–25x more to acquire a new customer than retain one.
• You have a 60–70% chance of selling to an existing customer, versus just 5–20% with new leads.
• A 5% increase in customer retention leads to a 25% increase in profit.

That means every oil change, tire rotation, and birthday reward points email sent through a loyalty platform is doing more than filling your bays—it’s planting the seeds for the next vehicle sale.

---

Do Loyalty Programs Actually Increase Dealership Sales?

Yes—dramatically. Consider these findings:

• 85% of consumers say loyalty programs make them more likely to keep doing business with a brand.
• Members of loyalty programs generate 12–18% more revenue annually than non-members.
• Top loyalty programs boost revenue 15–25% per customer each year.
• 73% of customers adjust their spending to maximize program rewards.
• 90% of loyalty program owners report positive ROI, with an average return of 4.8x.
• Customers who redeem rewards spend 3.1x more than those who don’t.

Imagine applying these numbers to your service drive or vehicle upgrade program.

---

Key Loyalty Trends Every Dealer Should Know

• The loyalty management market is growing fast: $5.5B in value today, projected to surpass $24B by 2028.
• The average person has 19 memberships, 9 of which are active.
• 68% of loyalty customers feel their brands understand their preferences better than others.
• 79% of customers recommend brands with great loyalty programs.

This isn’t just about discounts. It’s about relevance, connection, and personalization.

---

What Makes a Dealership Loyalty Program Work

• Ease of Use: 53% of customers value programs that are simple to understand and easy to redeem.
• Personalization: 80% of customers are more likely to do business with a dealership that personalizes their rewards. Service reminders based on timing and mileage and giving points for birthdays, military service, customer referrals, along with offering special incentives to members can make a major difference.
• Mobile/App Integration: Loyalty programs with mobile access keep customers engaged. Over 50% of program members expect mobile-friendly experiences.

---

Next Steps: Building Loyalty at Your Dealership

• Launch or optimize your dealership’s branded rewards program.
• Offer benefits across service, sales, accessories, and trade-ins.
• Integrate a digital portal or app with your CRM for easy tracking.
• Train your team on how to enroll and educate customers.
• Use data to personalize offers and proactively engage members.

The numbers don’t lie. Loyalty programs are a proven, high-ROI strategy that helps dealerships grow smarter and more sustainably. They’re not just a marketing tactic—they’re a revenue engine.

If your dealership isn’t using one, you’re leaving service appointments, car sales, and long-term relationships on the table.

Learn more by contacting us today for a demo.