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Dealership Loyalty Programs and Connected Car Technology


Connected Car Technology Can Help Dealerships Increase Customer Retention

Customer loyalty programs are not a novelty, most people are familiar with and take part in them through retail chains, hotels and airlines but car dealership loyalty programs are not the norm. Those who do take part in a dealership loyalty program are often not aware that they are benefitting from a program and the programs that are offered don’t provide the incentives needed to have clients return for services.

One way to make loyalty programs work for dealerships and their clients is through telematics. Discounts could be offered to those who really need them, saving the client the trouble of choosing among different services.

The key to a successful dealership loyalty program will be to have a solid service contract. Ideally a contract would be signed for 3-5 years for no fee, with a strong commitment to the dealership. The client would then have to install the dealership’s mobile app, connect an OBD device to their car and be obligated to use the services of one particular dealership, which would eventually lead to a compensation that equals the cost of new tires, warranty or other services.


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Combining connected car technology and a dealership app, a slew of new possibilities open up for working with a dealerships’ CRM system. As an example, a dealership can update the mileage of all “connected” vehicles regularly and use the information to forecast the probability of service visits in the following weeks. Dealership’s can also obtain diagnostic reports from their clients’ vehicles with information about errors and their statuses.

An OBD unit and mobile app can analyze an array of data and often come to the rescue of many drivers by interpreting errors shown on a dashboard. This data and information enables the car dealer to propose an efficient solution for the driver, and of course supports remote diagnostics, allowing them to offer their services in a timely fashion, and also those of an affiliated insurance company.

According to the latest research, roughly two-thirds of all vehicles will be internet ready by 2017, meaning that if dealerships don’t embrace this type of opportunity, they can stand to lose a great deal of potential revenue. With the global telematics market expected to grow to an estimated 104 million connected cars by 2025 (Ernst & Young), it is important to use this trends great innovation potential to transform data in useful information to increase revenue.


Discover IMS Dealer Intelligence Solution

Your automotive dealership is competing to provide the best possible customer experience, sell more vehicles and reduce your lot inventory costs. Each month, unsold car inventory represents lost revenue and profit opportunities that can ultimately compound.

IMS Dealer Intelligence is the first complete dealer insights solution powered by real-time analytics into all your vehicles. IMS’ 
telematics and connected car approach compliments your existing dealer inventory management system and changes the game by helping you move from a reactive model to a proactive model in managing your lot inventory. Now you can boost sales, reduce costs and expedite inventory sell-through by being able to fully satisfy customers from the moment they walk into your dealership.


Explore IMS Dealer Intelligence Solution