Rob Matthews, the president of Loop Rewards, is creating customer loyalty through the Loop Rewards App that encourages people to sign up at an affordable cost.
Matthews thought about the app because he had a customer loyalty program for his dealership, Matthews Auto in New York, called Matthews Cash, according to the Loop website. Like any other loyalty program, Loop Rewards increases retention, but it has less exclusivity which drives lower costs.
“What we wanted to do was expand the reach to get other customers and lower the cost of the program by putting the benefits out with more networking and local businesses as opposed to just being all on us,” Matthews told MegaDealer.
Before, a customer would rack up Matthews Cash and only be able to use it in one spot. Now, customers can shop at local businesses that are in the Loop network. With every loyalty member who signs up, they become a potential customer for the dealership.
“So you can go to Matthews Auto Dealer – you are that one dealer at the center – but then you can go save around town, maybe pizza, restaurants, dry cleaners etc.,” Matthews said.
The benefit of signing up for Loop Rewards is that the customer saves a lot of money, and the dealership has a better chance at retention because the customer has racked up a lot of Loop Cash for automotive fees and services.
“It’s a win-win,” Matthews said.
The growth plan for the Loop Rewards App is to be available for about 25 markets by the end of 2018.
“I made it very simple now where we just come in on Day One and we turn on your market at your dealership,” Matthews said. “It’s a simple loyalty program but the difference is that every other loyalty program stays the same over time – it’s always low reach; it’s always just for customers; it’s always high cost; it’s always for your benefit.”
Loop Rewards benefits the customer over time because costs become lower, and it benefits the surrounding local businesses with the dealership at the center because companies can encourage customers to sign up, increasing their own retention as well.