Quantcast
Jump to content
  • Welcome to Auto Parts Forum

    Whether you are a veteran automotive parts guru or just someone looking for some quick auto parts advice, register today and start a new topic in our forum. Registration is free and you can even sign up with social network platforms such as Facebook, Twitter, Google, and LinkedIn. 

     

Building A Rewards Program For Your Auto Parts Store


Recommended Posts

Loyalty programs are nothing new. Airlines and hotels have been offering them for decades. Thanks to the smartphone, however, customer-rewards programs no longer are the exclusive domain of large national retailers.

In a Counterman webinar earlier this year, Autologue Computer Systems CEO Jim Franco and TexTalk LLC CEO Brad Duncan made the case for implementing a rewards program, and explained how independent parts stores can get in on the action with relative ease.

As for why parts stores should consider launching a rewards program, here are some of the potential benefits:

Encouraging Future Purchasing

According to Duncan, the overarching goal of a rewards program “is to give your customers one more reason to buy from you.” OK, they already have plenty of reasons to buy from you. But, it never hurts to add another incentive for additional purchases.

Customer Retention

It’s much harder to acquire new customers than it is to retain your existing customers, which means neglecting your current customers can be a costly mistake. An active rewards program that focuses on customer retention can go a long way toward keeping those relationships fresh.

Revenue Boost

“If you have an effective rewards program, revenues should increase because of customers buying more – and more often,” Duncan asserted. A good program should help to keep your business front and center in your customers’ minds.

Competitive Response

With more and more retailers implementing some type of customer-loyalty program, chances are your competitors have one. That’s certainly the case if your local competitors include one (or more) of the national auto parts retailers.     

Customer Appreciation

From cashback credit-card rewards to that free guac you earned for eating large quantities of Chipotle, consumers have come to expect their favorite retailers to give them a little something extra for their continued loyalty. A rewards program is a great way to show your customers that you value their business.

Reach Out and Text Someone

As alluded to earlier, the smartphone has leveled the playing field for smaller retailers that want to offer the same kind of customer-rewards experience that the national retailers do. That’s because the smartphone is more than just a phone with a built-in camera. It’s a digital wallet that – increasingly – is populated with apps for our favorite brands.

During the webinar, Franco and Duncan explained that the smartphone is the focal point of Autologue’s eRewards customer-loyalty software. There’s no email or snail mail involved, and no plastic cards to print out for customers who sign up. By design, all interactions with the customer occur via phone. Franco and Duncan pointed to statistics showing that text messages enjoy a 98% read rate, which means your messaging has a great chance of reaching your customers when you contact them via phone.

“We decided early on that we wanted to communicate directly using the most effective and powerful marketing conduit there is,” Duncan said.

Parts stores can use Autologue’s eRewards to develop a loyalty program for retail or wholesale customers. The main difference is in how the rewards are defined. In an eRewards program for retail customers, rewards are dollar credits toward future purchases, and the “exchange rate” is set by the store. For example, a store might want to offer $5 in rewards for every $100 in purchases made by a retail customer enrolled in the program.

A wholesale eRewards program is structured more like what you’d expect in a frequent-flyer program. In a wholesale program, rewards accumulate as points rather than dollars, based on total purchases or on incremental increases in purchases. The store defines the “points multiplier” – meaning the customer accrues “X” number of points for every dollar they spend. Points are redeemed for reward prizes that are determined by the store.

With eRewards, parts sellers can group retail rewards members into one of three buckets – active, semi-active or inactive customers – and tailor their messaging based on the customer’s status. For example, an active customer would receive a rewards statement, which details their current rewards-program earnings, encourages online reviews and showcases current specials and promotions. A semi-active customer would receive a reminder statement, which shows rewards-dollars availability and encourages return visits. An inactive customer would receive a reactivation statement, which focuses on current specials and promotions to help re-energize the customer relationship.

Duncan described the concept as “loyalty-loop technology.”

“This is what eRewards is all about: managing the customer-visit pie chart, if you will,” he explained. “It’s automated customer retention.”

You can learn a lot more about Autologue’s eRewards software by listening to the on-demand webinar, which you’ll find archived at www.counterman.com/webinars/. Or you can visit www.autologue.com.

The post Building A Rewards Program For Your Auto Parts Store appeared first on Counterman Magazine.

View the full article

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Similar Topics

    • By Counterman
      Whenever a shopper finds a product they need on DormanProducts.com, they now instantly can see which nearby stores have that part in stock, using a new real-time inventory tool announced by Dorman Products.
      To use the new functionality, visitors to DormanProducts.com can search for a product using either vehicle year, make and model; keywords; VIN; OE number; or visual-hardware drilldown. When they find what they need, they can scroll down on that product description’s page to the updated “Where to Buy” section. There they can view on a map what stores near them have that part available, as well as get directions and click to call.
      “We are always looking for ways to make it easier for repair shops and DIYers to finish a job. With this new capability, it’s now incredibly easy to find our full range of products,” said Steve Gisondi, Dorman’s vice president of marketing. “You can quickly search our tens of thousands of parts and components on a computer or smartphone, and find where they’re available near you, without the hassle of having to call around to multiple locations.”
      This industry-first capability is made possible through a strategic relationship between Dorman and Epicor, a global leader of industry-specific enterprise software. By leveraging Epicor channel connectivity among leading parts-distribution businesses across North America, the Dorman website now connects directly with store-inventory systems at a variety of retailers and distributors to let users know if parts are in stock at specific locations, according to the company.
      “Dorman is one of the automotive aftermarket’s most innovative suppliers, so it’s no surprise they are on the leading edge of solutions that bring increased access and convenience to the industry’s end-users,” said Tim Hardin, senior vice president and general manager of Automotive at Epicor. “We are very proud to have played a role in enabling this important new solution for Dorman and the many parts distribution businesses that offer Dorman’s products.”
      Dorman parts and components are stocked by hundreds of retailers and distributors throughout North America. Real-time inventory is available now on DormanProducts.com for most of Dorman’s largest retail partners, and new partners and locations are continuously being added.
      For more information, visit the “Where to Buy” page on DormanProducts.com.
      The post Dorman Website Now Features Real-Time Store Inventory appeared first on Counterman Magazine.
      View the full article
    • By Counterman
      Auto-Wares Group of Companies has named its 2021 Supplier of the Year award winners, recognizing six companies for outstanding performance and collaboration through the past year.
      The awards were presented at the Auto-Wares Group of Companies year-end sales meeting. More than 300 people attended the virtual meeting.  
      BBB Industries received top honors, being named overall 2021 Auto-Wares Supplier of the Year.
      The BBB team delivered outstanding performance in all categories, including sales, field support, marketing,  fill rate and technology, despite all the challenges 2021 brought us.
      “It’s a real honor to accept this award on behalf of the entire BBB team,” said Kim Nolan, BBB’s SVP of sales – traditional. “It was a year that presented some unique challenges for everyone, and we couldn’t be more pleased to receive this coveted award for the outstanding efforts of our entire team. A special thank-you to the entire Auto-Wares organization for supporting BBB and embracing our products and programs in all the product categories we supply. You push us to be better and for that we are grateful.”
      Other Auto-Wares supplier award winners included:
      Rising Star Supplier of the Year – Sunsong Data & Technology Supplier of the Year – Dorman Sales & Marketing Supplier of the Year – DRiV Rep of the Year – Cindy Ford, SMP; Corbin Coons, DRiV; Patrick Mulrooney, NA Williams Auto-Wares leadership and stores and sales teams voted on the awards.
      “Auto-Wares could not be more proud in awarding the Supplier of the Year award to BBB industries for their continued hard work and dedication to the aftermarket and Auto-Wares, and congratulations to all of this year’s award-winning suppliers.” Tim Stone, director of product at Auto-Wares.
      The post Auto-Wares Announces 2021 Suppliers Of The Year appeared first on Counterman Magazine.
      View the full article
    • By Counterman
      Fisher Auto Parts has acquired Allied Auto Parts, with 13 locations in Massachusetts and two locations in Rhode Island.
      “The primary rationale for selecting Fisher Auto Parts was the cultural fit of our two organizations. We operate in similar styles and share compatible philosophies,” said David Reid, SVP and COO of Fisher, and Michael Borr, president of Allied. “Colleagues who have been acquired by Fisher have spoken very highly of them, especially about their commitment to their employees. Fisher will help us compete with the larger players who continue to force out smaller players through economies of scale, purchasing power, vendor influence, technology and a skilled, specialized workforce.” 
      Borr will stay on following the acquisition to continue to help grow the business.
      Since 1955, Allied Auto Parts has supplied the highest-quality auto parts and paint products, along with professional service and competitive pricing, to automotive professionals and do-it-yourselfers. The company started out with stores in Dorchester and Norwood, Massachusetts, and has grown to 16 locations.
      With a motto of “Everything Automotive,” Allied Auto Parts and its parent company, Norwood Motor Parts, celebrated their 65th anniversary in 2020.
      The post Fisher Auto Parts Acquires Allied Auto Parts appeared first on Counterman Magazine.
      View the full article
    • By Counterman
      Meet “the Marble family.” Mrs. Marble drives a two-year-old BMW, which she takes to the dealership for all maintenance and repairs. Since the pandemic hit, she’s been working from home entirely, saving her vehicle from the wear and tear of a 30-mile daily commute.
      Traditionally, Mrs. Marble hasn’t supported the independent automotive aftermarket at all. But, she picked up a new hobby during the pandemic: car detailing. And her husband, who drives a 10-year-old Ford F-150, has decided not to purchase a new truck due to inventory shortages and skyrocketing prices on the showroom floor. Instead, Mr. Marble has been tackling delayed maintenance needs such as new brakes and a coolant flush. On top of that, the Marble family bought a new camper, which they’ve taken on 20 road trips since the pandemic started.
      Then there’s “Hailey.” Although she’s been working from home and driving less during the pandemic, the extra time at home inspired her to restore her 1966 Mustang that’s been sitting in the garage. Meanwhile, “Charles,” who lives in New York City (and previously didn’t own a vehicle), bought a car during the pandemic, because he can’t stand the prospect of using mass transit due to fears of being exposed to COVID.
      Nathan Shipley, executive director, industry analyst, for The NPD Group, used these fictional but “very real” examples to show how the pandemic has spurred major changes in consumer behavior – many of which have benefited the automotive aftermarket in a big way. During a presentation at AAPEX 2021 in Las Vegas, Shipley shared NPD Group data showing that the automotive aftermarket gained nearly 4 million new retail buyers in 2020.
      “That’s a big number,” Shipley said. “Those are folks who had not bought anything on the DIY side of the aftermarket prior to 2020, and all of a sudden magically appeared and were engaged with us as an industry.”
      Looking back, the whys behind the boom in DIY sales have become crystal clear: more time at home; a windfall of discretionary cash from stimulus checks, child-tax credits and (for some) extended unemployment benefits; an aversion to airplanes and public transportation; and cabin fever, which drove sales of RVs and boats to record levels.
      As Shipley discussed The NPD Group’s 2022 outlook for front-room retail sales in the automotive aftermarket, he noted a number of “mixed signals” on the horizon. On the positive side, the job market remains strong in the aftermath of the 2020 recession; COVID-inspired activities such as camping, boating and road trips are showing no signs of slowing down; and the new- and used-car marketplace is pushing consumers to keep their older vehicles on the road longer than planned.
      “There are more cars on the road now than ever,” Shipley added. “Scrappage rates are down. VIO is up. The average [vehicle] age is trending older because of what’s happening with new cars. Those are all nice tailwinds for the aftermarket.”
      However, there are a number of pandemic-era tailwinds that could become headwinds for the aftermarket in 2022 – notably the absence of stimulus payments and the expiration of the eviction moratorium, expanded unemployment benefits and student-loan forbearance. Shipley believes that many consumers likely will be surprised by a smaller-than-usual tax refund, because “they just don’t understand the mechanics” of the child-tax-credit payments that showed up in consumers’ bank accounts in 2021.
      And, while Shipley said he expects miles driven to return to 2019 levels this year, rising gasoline prices remain the ultimate wild card. At press time (Jan. 7), the average price of gasoline was $3.303 per gallon nationwide, according to AAA.
      “We can go back years … and there’s a direct correlation between gasoline prices and miles driven, notably when we get to gasoline-price thresholds of $3.50 a gallon, $4 a gallon,” Shipley added. “That’s when we start to really see – at least historically – major behavior changes as it relates to driving. So this has crept back into the conversation.”
      NPD’s data modeling for 2022 calls for U.S. aftermarket retail sales to pull back 5.7% from 2021 – a year in which sales were up nearly 8% compared to 2020. However, the 2022 forecast anticipates that aftermarket retail sales will be 8.5% higher this year than they were in 2019.
      “This is a bullish forecast,” Shipley said. “This is suggesting that 2021 was the peak, and things are going to keep trucking right along,” assuming there are no new sales-triggering events such as additional stimulus packages. 
      He added: “I think the big takeaway is that the fundamentals of this industry are very, very strong. We should feel very, very good about where we’re at as an industry. But, overall, we expect things to settle in just below where they were in 2021.”
      The post NPD Group Bullish On Retail Aftermarket For 2022 appeared first on Counterman Magazine.
      View the full article
    • Shop AutoPartsToys.com for all Your Car, Truck and SUV Accessories at Direct Factory Warehouse Pricing
×
  • Create New...