How Digital Rewards Increases Automobile Sales & Drive Revenue

Did you know 87% of consumers are more likely to purchase with a brand that offers a loyalty program?  

Why not engage your revenue teams with digital rewards to enhance the effectiveness of the sales channel? This innovative approach can help improve sales conversions and enable a seamless end-user experience.  

This blog provides in-depth insights into how implementing digital rewards can transform the automobile industry. 

Common challenges faced by sales reps in the automobile industry 

Here are some common challenges faced by sales reps in automobile industry: 

• Delays: Problems related to delivery delays in automobile sales and services, impacting customer satisfaction and retention. 
• Lack of transparency: Issues with information transparency lead to customer distrust and dissatisfaction with the automobile purchase experience. 
• Cumbersome end-user experience: Difficulties customers face in their interaction with automobile products and services, affecting brand loyalty and referrals. 

In the fiercely competitive world of automotive retail, where consumer expectations are high, and the sales cycle can be challenging, finding innovative ways to boost conversion rates is paramount.  

Digital rewards programs are emerging as potent tools, offering more than fleeting discounts: they can fuel engagement, nurture loyalty, and, ultimately, drive automakers' sales. 

Understanding the automobile industry challenges 

The automotive industry faces unique hurdles: 

• High-consideration purchases: Cars represent significant investments, necessitating extensive research and deliberation. This lengthens the sales cycle and increases drop-off rates. 
• Cut-throat competition: From established brands to disruptive startups, the market is teeming with competitive forces. Standing out and capturing consumer attention is crucial. 
• Omnichannel expectations: Modern buyers demand a seamless transition between online research, test drives, and final purchases. Integrating digital rewards into this journey is essential. 
• Time-consuming: Manually procuring and distributing rewards was time-consuming, leading to a broken end-user experience and affecting future referrals. 
• High customer acquisition cost: Acquiring new customers via channels like ads contributes to a high cost per lead, reducing overall profitability. 

Did you know that according to marketing metrics, the probability of selling to an existing customer is up to 14 times higher than the probability of selling to a new customer? 

Fuel the sales process with digital rewards 

Digital rewards programs can address these challenges head-on: 

Sweeten the test drive  

Turn test drives into rewarding experiences by offering digital points, cashback, or instant gift cards for participation. This simple incentive motivates potential buyers to visit your showroom or book online test drives, boosting footfall and engagement.  

Beyond just attracting attention, it also gives your team an opportunity to collect valuable data on customer preferences, vehicle interest, and buying intent. 

Here are some effective reward ideas to sweeten the test drive experience: 

• Digital gift cards – Offer instant gift cards to popular brands upon test drive completion. 
• Cashback offers – Provide cashback that can be redeemed on vehicle purchase or accessories. 
• Fuel vouchers – Give out fuel cards as a practical and appealing reward. 
• Coffee or meal vouchers – Small yet thoughtful incentives to enhance the experience. 

Rewards for sales teams 

Keeping the sales team motivated and aligned with business goals requires more than just commission—it calls for a dynamic and engaging incentive structure. This is where digital rewards and performance-based incentives come into play. 

Ways to reward and incentivize sales teams: 

• Performance-based rewards: 
  Set up clear, measurable goals—such as monthly or quarterly sales targets, upselling accessories or warranties, and reducing response times. Reps who meet or exceed these KPIs can receive tiered digital rewards, such as gift cards, merchandise, or experiences. 
• Customer experience bonuses: 
  Reward sales reps for consistently receiving high customer satisfaction scores in post-sale surveys. This not only boosts morale but also encourages a customer-first mindset at every stage of the buying journey. 
• Leaderboards & gamification: 
  Create friendly competition by implementing digital leaderboards that track performance in real time. Offer rewards to the top performers weekly or monthly—this could be anything from movie vouchers to weekend getaways or tech gadgets. 
• Spot awards: 
  Instant recognition is powerful. Use spot awards to immediately reward exceptional performance—like closing a tough deal, handling a difficult customer, or demonstrating teamwork. These spontaneous rewards reinforce positive behaviors on the go. 
• Milestone recognition: 
  Celebrate long-term commitment and achievements. For example, acknowledge employees hitting 1-year, 5-year, or 10-year anniversaries with meaningful rewards. You can also recognize cumulative sales milestones with increasing incentive tiers. 
• Training completion rewards: 
  Incentivize participation in ongoing training, product certification, or compliance programs. Sales reps who complete learning modules can earn small but consistent rewards, helping build both competence and motivation. 
• Non-monetary rewards: 
  Mix in experiential or lifestyle perks—like an extra day off, access to a VIP lounge at a dealership event, or the opportunity to test-drive new models before they launch. These unique experiences often hold more emotional value than cash. 

Leverage the power of referrals  

Word-of-mouth remains one of the most powerful tools in automobile marketing. Happy car buyers can become your best brand ambassadors when given the right nudge. Referral reward programs can turn satisfied customers into a powerful sales channel by incentivizing them to bring friends, family, or peers into the buyer journey.  

Here are some effective ways to reward and incentivize referrals in the automobile industry: 

• Cash rewards or prepaid cards – A popular and flexible option for motivating customers to refer. 
• Service or maintenance credits – Offer discounts or free services like oil changes, car washes, or servicing. 
• Gift cards – Provide branded or multi-brand gift cards for every successful referral. 
• Accessory upgrades – Reward referrers with car accessories like floor mats, infotainment upgrades, or tech add-ons. 
• Fuel vouchers – A practical and appreciated reward, especially during rising fuel costs. 

Foster loyalty and repeat business 

Selling a car is just the beginning of the customer journey. Retaining customers for after-sales services, future upgrades, or accessories can drive significant lifetime value. A well-designed loyalty program rewards repeat purchases, service visits, or engagement with the brand’s digital touchpoints.  

Think of tiered benefits like free servicing, discounts on accessories, or exclusive invites to test drive new models. 

• Tiered loyalty benefits – Offer structured levels like Silver, Gold, and Platinum with escalating perks based on total spend or visit frequency. 
• Free or discounted servicing – Reward regular service visits with free oil changes, maintenance checkups, or discounted repairs. 
• Trade-in bonuses – Offer loyalty credits or added trade-in value for customers who return for future purchases. 
• Birthday or anniversary gifts – Celebrate key dates with small gestures like free car detailing or exclusive discounts. 
• Test drive priority – Let loyal customers be the first to try new models or special editions. 
• App-based engagement rewards – Offer points for interacting with your brand online, booking services through the app, or writing reviews. 

Key considerations for an effective digital rewards program 

Here are key considerations for success: 

1. Personalization: Tailor rewards to individual preferences and purchase stages. A young buyer might value accessories, while a family prioritizes maintenance packages. 
2. Seamless integration: Integrate rewards seamlessly into the online and offline buying experience.  
3. Value over novelty: Offer rewards with real perceived value, not just fleeting discounts. Exclusive experiences, early access to models, or partnerships with relevant brands can be powerful motivators. 
4. Data-driven insights: Track program performance, analyze customer behavior, and adapt your strategy accordingly.  

Drive long-term loyalty and revenue with smart rewards 

A car purchase might be the destination, but the journey starts with engagement. From sparking interest with a test drive to keeping customers loyal through after-sales service, rewards and incentives play a key role in every stage of the automobile sales cycle. Whether you're motivating your sales team, turning buyers into brand advocates, or encouraging repeat visits—well-timed incentives can make all the difference. 

Plum helps you build that momentum. Plum is a recommended platform that offers a tailored reward program designed for rewards, incentives, and payouts, driving motivation and engagement. By understanding customer challenges, designing a personalized and valuable program, and integrating it seamlessly into the buying journey, automakers can turn tire kickers into loyal champions, paving the road to higher conversions and long-term success. 
 
And Plum can make that happen for you with its diverse global catalog of over 1 million options across 25+ categories and 100+ countries, offering unparalleled choice and flexibility. Browse through gift cards, merchandise, prepaid cards, subscriptions, travel, sports, charity and donations, experiences & more.  
 

Ready to put your reward strategy into high gear? Book a demo with Plum today.