Automotive Loyalty Programs in 2024: Maximize Customer Loyalty

In 2023, customer loyalty in the automobile industry faces significant challenges. According to J.D. Power, brand loyalty has declined as new-vehicle inventory rebounds to pre-pandemic levels, with the overall rate stalling at 50.6%—unchanged from 2022, despite a 7% increase in market returns. S&P Global Mobility highlights that while luxury brands saw a 2.7% rise in loyalty, mainstream brands faced a 0.4% decline.

This shift underscores the importance of innovative insurance loyalty programs as consumers become less brand-loyal, seeking better options across industries. As loyalty falters in one sector, others must adapt to retain their customers effectively.

What is an automotive loyalty program?

An automotive loyalty program is a strategic initiative designed to reward and retain customers within the automotive industry. These programs offer various benefits, such as discounts on vehicle purchases, exclusive services, or points redeemable for rewards, to encourage repeat business.

By enhancing customer satisfaction and engagement, automotive loyalty programs help build stronger relationships between brands and their customers. The best automotive loyalty programs integrate seamlessly with automotive service loyalty programs, offering comprehensive value that extends beyond the initial purchase.

In a competitive market, effective loyalty programs in the automotive industry can be a key differentiator, boosting retention and driving long-term success.

Top 10 automotive loyalty programs in 2024

1. Ford: FordPass

About: Ford Motor Company continues to lead with innovation and customer-centric service. Ford is dedicated to enhancing the customer experience through its comprehensive loyalty program.

How it works: Ford’s loyalty program is seamlessly integrated with the FordPass app. tracks rewards, earning points for vehicle purchases and service visits.

Benefits:

• Accumulate 42,000 points with a new Ford purchase, redeemable for $200 in discounts.
• Gain 10,000 points per service visit, saving up to $50.
• Enjoy up to $1,000 off select models.
• Up to $150 in free maintenance services.
• Access expedited service and support.

Why it works:

• Engagement: Encourages frequent interaction.
• Value: Direct monetary rewards enhance satisfaction.
• Ease: Simple redemption through FordPass.

2. Nissan: MyNissan

About: Nissan, a pioneer in automotive excellence, offers MyNISSAN Rewards to enhance the ownership experience with valuable rewards and exclusive offers.

How it works: MyNISSAN Rewards lets you earn Points for vehicle service and online shopping, redeemable at a 1:1 ratio for services like oil changes and tire rotations. Points are earned through dealership visits or online shopping and can be redeemed for various services or vehicle purchases.

Benefits:

• 1 point = $1; earn Points for service visits and online shopping.
• Access special discounts on services and new vehicle purchases.
• Apply Points toward service, parts, accessories, or vehicle purchases.
• Use Points to reduce maintenance and repair costs.
• Earn additional Points through purchases from over 500 retailers.

Why it works:

• Engagement: Encourages regular service visits and online shopping.
• Value: Direct, flexible redemption options provide substantial savings.
• Convenience: Easy to track and use Points through the MyNISSAN app.

3. Lexus: Pursuits Visa® Credit Card and Business Solutions

About: Lexus Pursuits Visa® Credit Card and Business Solutions provide tailored financial rewards and services for Lexus owners and businesses.

How it works: Earn 5 points per $1 spent at Lexus dealerships, 2 points on gas, dining, and entertainment, and 1 point elsewhere. Redeem points on service, parts, and vehicle purchases. Business Solutions offers competitive APRs, terms up to 84 months, and leasing options. Additional benefits include vehicle credit lines and consolidated billing.

Benefits:

• High reward rates on Lexus purchases.
• Flexible financing with competitive rates.
• Convenient services like consolidated billing.
• Comprehensive protection like added coverage options.

Why it works:

• Maximizes rewards for loyal customers.
• Tailored financing for business needs.
• Efficient management of multiple accounts.

4. Subaru: Benefits of Ownership

About: Subaru offers an array of loyalty programs and benefits to enhance ownership experiences for military members, college graduates, and all Subaru drivers.

How it works:

• The beneficiaries must be legitimate Subaru vehicle owners.
• They have to contact their regional Subaru dealership network to avail the benefits.
• Each Subaru Benefits of Ownership program requires separate procedures.

Benefits:

• Military Discount: $500 off for military personnel.
• College Graduate Program: Special financing for recent grads.
• Guaranteed Trade-In Program: High trade-in value for qualified vehicles.
• Subaru Advantage Insurance: Up to $665 savings on insurance.
• Subaru Mobility Assist: $1,000 for vehicle modifications.

Why it works:

• Inclusive Support: Tailored to diverse customer needs.
• High Value: Maximizes financial benefits and trade-in value.
• Flexibility: Adaptable programs and savings options.

5. BMW: Loyalty offer

About: BMW is a leading luxury car manufacturer known for high-performance vehicles and advanced technology.

How it works: 

• Eligibility: Current and former BMW owners or lessees.
• Credits: Up to $7,500 on select 2024 models; up to $6,500 on the i5.
• Offers: $500 to $5,000 credits on leases or loans for 2024 and 2025 models.

Benefits:

• High Credits: Up to $7,500 on select models.
• Variety: Credits available for a broad range of models.
• Automatic: Applied to lease or loan through BMW Financial Services.

Why it works:

• Loyalty Boost: Attracts and retains customers.
• Sales Growth: Drives repeat purchases and leases.

6. Enterprise: Enterprise Plus®

About: Enterprise Plus® transforms every rental into rewards, thanks to a seamless point system.

How it works: Earn 1 point per dollar spent at participating locations. Accumulate points with each rental, which never expires as long as you remain active. Redeem for free rental days with no blackout dates. Membership includes four tiers: Plus, Silver, Gold, and Platinum, each offering increased rewards based on rental frequency.

Benefits:

• Plus: Free membership; earn points and status with every rental.
• Silver: 10% bonus points, 1 free car upgrade yearly.
• Gold: 15% bonus points, 2 free upgrades annually.
• Platinum: 20% bonus points, 4 free upgrades per year.

Why it works:

• Transparent earning system.
• Flexible, valuable rewards with tiered benefits.

7. Volvo

About: Volvo’s Loyalty Bonus offers up to $1,000 off on new 2024 XC60 and XC90 models for existing and recent Volvo owners.

How it works: Current Volvo owners or those who have leased or owned a Volvo within the last 6 months can receive up to $500 off a lease or $1,000 off a purchase of a new 2024 Volvo. This offer is valid from August 1 to September 3, 2024.

Benefits:

• Up to $1,000 Discount on purchase or lease.
• Exclusive Offer for Volvo and Saab owners.
• Additional Perks include potential financing benefits and waived payments for existing lessees.

Why it works:

• Loyalty: Rewards returning customers.
• Savings: Provides substantial discounts on new models.
• Flexibility: Applicable to both leases and purchases.

8. Europcar: Privilege Loyalty Program

About: The Privilege Loyalty Program by Europcar rewards frequent renters with discounts and exclusive benefits.

How it works: Members receive a 10% discount on rentals of 3+ days. Membership levels, from Club to Elite VIP, are based on rental frequency. Benefits include faster pick-up, free vehicle upgrades, and rewards like free weekend rentals. Status is reassessed every two years.

Benefits:

• Permanent Discount: 10% off all rentals from day one.
• Faster Service: Priority pick-up and ready paperwork.
• Free Upgrades: Upgrades available from the Executive level.
• Rewards: Free weekend rentals, value-off coupons.
• Additional Perks: Extra driver, airport lounge access for Elite VIP.

Why it works:

• Loyalty: Encourages repeat rentals with valuable rewards.
• Convenience: Streamlined processes and substantial savings.

9. Wingstuff: Wing Rewards

About: WingStuff is a leading retailer of motorcycle accessories, offering a rewards program to enhance customer loyalty.

How it works: WingStuff’s Rewards Program lets customers earn points on every dollar spent and through activities like referrals and social media engagement. Points are redeemable for discounts on future purchases, with higher tiers offering increased earning rates.

Benefits:

• Earn Points: On every dollar spent.
• Tiered Rewards: 3% back (Silver), 4% back (Gold), 5% back (VIP Platinum).
• Additional Earning: Points for referrals, social shares, and reviews.
• Flexible Redemption: Discounts on future orders.
• Special Bonuses: Extra points on special days.

Why it works:

• Loyalty Building: Encourages repeat purchases.
• Enhanced Engagement: Rewards diverse customer interactions.

10. Stage 3 Motorsports: Rewards

About: Stage 3 Motorsports is a leading U.S. retailer specializing in performance parts for Ford, Toyota, and Ram trucks. Established in 2004, it offers competitive prices and expert service to enhance vehicle performance.

How it Works: Customers earn points with every online purchase and review, redeemable for discounts on future orders. Points cannot be used with discount codes or combined with multiple gift cards.

Benefits:

• Earn Points: 1 point per $1 spent, redeemable for discounts.
• Reward Tiers: $10 off for 500 points, $20 off for 1000 points, and $30 off for 1500 points.
• Attractive Savings: Encourages higher spending and repeat purchases.

Why it Works:

• Enhances customer retention by rewarding spending.
• Increases average order value through tiered rewards.
• Drives engagement with incentivized reviews. 

Top 5 customer retention challenges for the automotive industry

1. Complexity:  Automotive loyalty programs often struggle with the inherent complexity of vehicle ownership. From financing options to maintenance schedules, the multifaceted nature of car ownership can overwhelm customers.

2. Lack of touchpoints:  Effective automotive service loyalty programs require consistent engagement throughout the customer journey. Many automotive companies fail to maintain regular touchpoints with their customers between service visits or purchases. 

3. Lack of data: Understanding customer preferences and behaviors is crucial for successful automotive customer loyalty programs. However, many companies struggle with inadequate data collection and analysis.

4. Lack of influence: The automotive industry often involves multiple parties, including dealerships and service providers. This can dilute the manufacturer’s control over the customer experience.

5. Increasing competition: With the rise of new automotive technologies and alternative mobility solutions, the market is more competitive than ever. To stand out, automotive loyalty programs need to offer exceptional value and innovation.

Addressing these challenges effectively is crucial for any automotive loyalty program aiming to build lasting relationships with customers.

5 Best practices for automotive loyalty programs

1. Variety: Offering a diverse range of rewards and benefits is crucial. Automotive loyalty programs should include options like service discounts, vehicle upgrades, and exclusive access to events. A variety of choices ensures that rewards resonate with different customer preferences, increasing program appeal and participation.

2. Personalisation:  Tailoring loyalty programs to individual customer preferences enhances their experience. By leveraging customer data, automotive companies can offer personalized incentives based on purchase history, service needs, and customer interests. 

3. State-of-art Loyalty Engine: Employing advanced technology to manage loyalty programs can streamline operations and improve customer engagement. Modern loyalty systems use sophisticated algorithms and analytics to track customer behavior, predict trends, and offer timely rewards. This allows for more effective marketing strategies.

4. Coalition loyalty programs: Collaborating with other brands to create coalition loyalty programs can enhance value for customers. Coalition programs allow customers to earn and redeem rewards across a network of partners. This provides greater value and encourages more frequent interactions with the brand.

5. Multichannel seamlessness: Ensure that the loyalty program offers a consistent experience across all channels—online, mobile, and in-store. Customers should be able to access their loyalty benefits effortlessly, regardless of how they interact with the brand.

6. Simplification: Streamlining the loyalty program process is essential for customer engagement. Simplifying how customers earn and redeem rewards makes participation easier and encourages more frequent interactions with the brand.

Elevate your automotive loyalty programs with Giift

Elevate your automotive loyalty programs with Giift’s cutting-edge LBMS platform. Our enterprise-ready solution seamlessly scales with your business, offering advanced tools to manage multiple omnichannel programs from a single system.

Giift’s rule engine personalizes customer experiences, boosting engagement and retention across all touchpoints. Tailor your automotive customer loyalty programs to your specific needs, including currency settings and points expiration. Our platform supports various loyalty programs with unique configurations, ensuring flexible and rewarding experiences.

Conclusion

In an evolving automotive market, loyalty programs are crucial for retaining customers amidst growing competition. The top programs of 2024 highlight innovative approaches to reward and engage customers, from FordPass’s comprehensive rewards to Subaru’s tailored benefits. 

Addressing key challenges such as program complexity and data limitations is essential for success. By adopting best practices like personalization, multichannel seamlessness, and advanced technology, automotive brands can enhance customer satisfaction and loyalty.

For those looking to elevate their loyalty strategy, Giift offers a cutting-edge platform to streamline and optimize loyalty programs, ensuring deeper customer connections and sustained growth in a dynamic industry.