One of the most important decisions you’ll make and tasks you’ll do as a participating Autoblynk Referral Rewards dealer is to configure the amount of your referral reward. Let’s talk a bit about the primary reasons setting your referral reward appropriately… even generously… is a critical success metric.
Please note that all figures below are expressed in USD for purposes of this discussion.
Top 3 Reasons to Reward Generously
#1 It Encourages Participation
Common sense tells us for most endeavors the more there is to gain, the more likely others will participate. Imagine a scenario where the referral reward is set at a lower level, say… $100 as an example. As a further example, let’s suppose an individual referrer has what the latest statistics (Experian, May 2018) support as the average car payment: $523 per month.
With a $100 referral reward, potential referrers will need to refer successfully more than five times to cover a single car payment. We’ll express this as a Referrer Return Ratio of $100/$523 (or a .191 Referrer Return Ratio in decimal.)
That’s probably too low to be effective, and participation will suffer.
The recommended Referrer Return Ratio should floor at about .400, with a ceiling of 1.000, again, in decimal. Including rounding, on average, this means a floor of around $200 ($523 x .400, rounded off) and a ceiling of around $500 ($523 x 1.000, rounded off) with participation likely increasing as you rise from that floor towards the ceiling.
You’ll want to take a closer look at your own internal payment average data, and adjust accordingly. If your average payment in your showroom is closer to $371, your floor will be around $150 with a ceiling of about $350.
Conversely, for higher end brands, if your average monthly payment is $827, your floor will be closer to $325 and your ceiling perhaps $750.
The more generous your referral reward, the higher your rates of participation will be. We encourage you to reward generously.
#2 Your Customers Deserve It
Think for a minute about the responsibility your customers are taking on by referring others to your dealership. It is not a small thing, asking your clients to actively refer you. By doing so, they are telling the people closest to them to trust them, and that they’ll be taken care of… by people who care, by people who will work to help them find the right vehicle, and by people who will provide a fair deal and a top-notch experience.
As dealers, when you ask your customers to refer you, you’re basically pledging you will give their referral the very best of care. It’s a promise to do your finest work in every regard.
You need to deliver on that promise, and as every successful referral sale amounts to “found business” for your dealership (with profound profitability implications), you need to reward at a level that honors that dynamic.
#3 There’s Minimal Exposure
The unique thing about Autoblynk Referral Rewards is that there is very little exposure until a sale is generated. To subscribe, there’s zero monthly subscription cost.
For successful referral sales, there’s a $75 Successful Referral Fee, and there’s the reward itself… but only for successful referrals. That’s your edge with targeting referrals using Autoblynk. The majority of all other conventional means of lead generation can saddle dealers with costs with no guarantee of return.
In 2017, the average advertising expense on a per-vehicle sold basis was $608.
With Autoblynk, your expense on the same basis would be just $75 (SRSF) plus the reward itself. But the beauty of Autoblynk is that instead of paying an advertising company or medium that money, the bulk of it will go directly to your existing customer base.
You’ll have a edge financially, you’ll create a community and culture based on loyalty and togetherness, and your dealership will grow steadily by tapping into the pool of vehicle shoppers that likely exists outside of just the influence of public advertising, no matter the medium.