March 2025 | PerfectGift Experts | 5 Minute read
Car dealerships are continually seeking ways to increase service department traffic. While selling vehicles is a primary focus, ensuring a steady stream of customers for routine service visits is equally important for long-term profitability. However, attracting and retaining customers for these services can be difficult. The competition from independent service shops, as well as a lack of customer loyalty to a single dealership, makes it difficult for many to capture the full potential of their service departments.
One innovative strategy is the use of gift cards as a tool to boost customer visits. These cards not only incentivize customers to return for essential services like oil changes, tire rotations, and brake checks but also help foster a sense of brand loyalty.
By partnering with Perfect Gift, dealerships have easy access to incentives that drive repeat business, bring in new customers and can be tailored for various campaigns.
The Power of Gift Cards in Customer Retention
When customers make a purchase, whether it’s a vehicle, service, or accessory, offering a gift card as a bonus creates an immediate incentive for them to return. These gift cards can be used for future services, parts, or even as a discount on their next vehicle purchase, giving customers a tangible reason to stay connected to the dealership. By providing a small but valuable reward, dealerships make customers feel appreciated, which strengthens their emotional connection to the brand.
Studies have shown that customers who feel rewarded are more likely to become repeat buyers. In fact, according to a study by Harvard Business Review, customer loyalty programs that include gift cards are often associated with higher levels of satisfaction and customer retention. By offering a thoughtful incentive like a gift card, dealerships tap into the natural human tendency to reciprocate, turning a one-time transaction into an ongoing relationship.
Additionally, the use of gift cards in referral programs can help expand a dealership’s customer base while simultaneously strengthening existing relationships with current clients. When customers feel they can benefit from introducing others, the dealership gains not just their repeat business, but potentially new clients as well.
Incentive-Based Service Programs
Incorporating gift card promotions into marketing strategies offers dealerships a means to boost customer engagement, increase sales, and enhance brand visibility. By providing tangible incentives, businesses can cultivate a loyal customer base and encourage repeat business, ultimately contributing to sustained growth and success.
Research indicates that customers who receive gift cards often spend more than the card's value, benefiting both the customer and the business. Furthermore, utilizing gift cards as rewards for loyal customers can strengthen relationships and promote continued patronage.
Several automotive businesses have successfully implemented gift card promotions.
Test Drive Incentives
Popular car brands such as Nissan, Honda and Jeep have offered prepaid Visa, Amazon, or Walmart gift cards to customers who visit dealerships for test drives.
Sam's Club Auto Buying Program
Through the Sam's Club Auto Buying Program, members receive a $110 Sam's Club e-Gift Card upon reporting the purchase of a new or used vehicle from a TrueCar Certified Dealer within 45 days.
Hyundai and Amazon
In December 2024, Amazon partnered with Hyundai to launch Amazon Autos, an online car dealership platform. Customers who purchased a Hyundai vehicle through this platform were offered a $2,300 gift card incentive.
Types of Service Visits Encouraged by Gift Cards
Gift card promotions are a powerful tool for car dealerships to encourage customers to stay on top of routine maintenance and necessary repairs. By offering these incentives, dealerships not only generate repeat business but also help ensure that vehicles remain in optimal condition.
Oil Changes and Tire Rotations
Regular oil changes ensure the engine runs smoothly, while tire rotations promote even wear and extend tire life.
These routine services are crucial for maintaining engine performance and tire health, making them an ideal candidate for gift card promotions that ensure customers keep their vehicles in top shape.
Brake Inspections and Fluid Checks
Brake inspections help identify wear and tear early, preventing costly repairs, while fluid checks maintain the vehicle's overall health. By offering a financial incentive, dealerships encourage customers to proactively address potential safety risks
Major Repairs and Upgrades
Whether it's fixing a transmission issue or upgrading to advanced features, these services often come with higher costs. Gift cards can make these expenses more manageable for customers, while driving business to the dealership's service department
Seasonal Maintenance Services
Services such as winterization or summer tune-ups, prepare vehicles for changing weather conditions. By offering gift cards, dealerships can encourage customers to stay proactive about maintaining their vehicles and ensure safety during different seasons.
How Dealerships Structure Gift Card Offers
Car dealerships often structure their gift card offers in various ways to incentivize customers to visit their service departments or make new vehicle purchases. By structuring gift card offers in these diverse ways, car dealerships can attract a broader range of customers, encourage repeat visits, and foster community partnerships.
Set Amounts vs. Percentage-Based Discounts
Dealerships may structure their gift card promotions by offering either a set amount or a percentage-based discount. A set amount is a specific gift card amount, such as a $50 gift card for customers who service their vehicle or purchase certain parts. Alternatively, some dealerships prefer percentage-based discounts where customers receive a percentage off their service bill in the form of a gift card.
Gift Card Redemption for Future Services or Purchases
Another way dealerships use gift cards is by structuring them for redemption on future services or purchases. In this setup, customers earn a gift card after making a purchase or servicing their vehicle, but the card can only be redeemed on future visits. This approach helps dealerships drive repeat business.
Partnering with Local Businesses for Gift Card Exchanges
Some dealerships extend their gift card offerings by partnering with local businesses such as restaurants, gas stations, or retail stores, allowing customers to exchange their dealership gift cards for cards from these local partners. These types of partnerships are particularly popular in promoting local community engagement while driving traffic to both the dealership and the local businesses.
Conclusion
Gift cards are a powerful tool in the automotive industry, offering a range of benefits as part of a broader customer retention strategy. By integrating gift card promotions into their service offerings, dealerships can not only incentivize customers to return for routine maintenance and repairs but also foster long-term loyalty.
To maximize the impact of gift cards, dealerships can create tailored offers that suit their customers' specific needs. Whether it’s offering a gift card for routine maintenance services like oil changes or tire rotations, or providing incentives for more significant repairs and upgrades. Offering seasonal promotions or partnering with local businesses can make the offer even more attractive, helping dealerships stand out in a competitive market.
To implement a successful gift card strategy and boost service department visits, dealerships should start by analyzing their customer base and determining which services are most important to them. From there, crafting targeted promotions that align with these needs can encourage greater engagement. Additionally, tracking customer response and campaign performance will allow dealerships to refine their strategies and achieve the best possible results.
Now is the time to incorporate Perfect Gift into your dealership’s marketing plan. Start by offering tailored gift cards that speak directly to your customers' needs and watch as your service department thrives with increased visits, customer loyalty, and long-term success.
