Automotive News - September 21, 2020 - Best Practices Supplement - S12

12 | SEPTEMBER 21, 2020
F R E D B E A N S A U T O M O T I V E G R O U P, D O Y L E S T O W N , PA .

CASHING IN ON
LOYALTY PROGRAM

Retailer's efforts keep consumers coming back for service, new vehicles
Published in Automotive News Feb. 3, 2020

Ken Wysocky

autonews@crain.com

t Fred Beans Automotive Group, loyalty pays off - literally.
A customer rewards program in
place since 2003 has motivated
tens of thousands of car-buying customers to
return to the group's dealerships and put
more than $11.6 million in earned rewards toward down payments on vehicles.
Membership in Fred Beans' AutoRewards
program - in place at the group's 20 dealerships in Pennsylvania and New Jersey - has
grown to more than 323,000 members who
have earned nearly $35 million worth of
points since the program's inception, according to company officials.
"The program works because customers
know those points go to waste if they buy a car
from other dealerships," said Beth Beans Gilbert, vice president of the group, headquartered in Doylestown, Pa.
"It's a great way to marry customers to the
dealerships."
The program has mushroomed well beyond
its original scope, rewarding and engaging
customers on many levels. It keeps them returning to service lanes and showroom floors,
said Beans Gilbert, the daughter of Fred
Beans, company founder and CEO.
Nucar Consulting created and administers
the points-based program. Each point is
worth $1. Customers earn 25 points for signing up, another 25 as a customer-appreciation gesture, 25 more if they attend a
new-customer workshop, 25 for the first use
of their membership card or smartphone
app and 100 points for friend and family referrals. They also earn points on 15 percent of
what they spend on almost all vehicle parts
and service work, plus items such as tires
and wipers.
Customers swipe their card or use the app to
receive points; downloading the app nets 20
points.
Customers can check point totals on the retail-

Fred Beans' AutoRewards program members enjoy events such as a skating night, above, free oil
changes, gift certificates that can be used for service work and discounts from local businesses.
Through a rewards program at Fred
Beans Automotive Group, customers
earn points for money spent on
service work, then redeem them to
help pay for their next vehicle.

er's website or via the app, Beans Gilbert says.
Perks include one free oil change as well as
$25 gift certificates when customers hit 350-,
500-, 750- and 1,000-point levels. The certificates can be redeemed for service work, but
no points are subtracted from account balances.
Customers also receive free annual car-safe-

ty inspections, required by the state, for as
long as they own their vehicles. Such an inspection typically costs $25 or more, Beans
Gilbert said.
Moreover, customers can apply up to $250
in points toward insurance deductibles for
collision repairs at one of the group's six franchised CARSTAR body shops.
Rewards members can even redeem points
for cash, donate them to charities or transfer
them to friends and family. Points expire five
years from when they're earned.

Sales boost
It's difficult to determine the program's exact financial impact on the retailer's bottom
line, but the dealership sold 14,000 new and

Automotive News - September 21, 2020 - Best Practices Supplement

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