A startrescue.co.uk story...

Got space in your wallet for another loyalty card or two? Car dealers are next in line to exploit our willingness to return to the same retailer time and time again to swipe our plastic and collect the points. See the picture? Imagine it’s your car keys and a loyalty card with a car badge on it.

They’re doing this because it’s a real issue for them to make money from customers will older cars. Once a vehicle is three years old and its warranty runs out – unless it’s a Kia or Hyundai – drivers tend to avoid the high prices of the main dealer network and find a cheaper independent operator.

Some dealers – Essex Auto Group (EAG), Hendy and Ringways particularly – have already launched schemes and more are expected to follow suit. Why? Because they work. EAG has seen the percentage of four-year-old cars brought in for work rise from 37 to 57 per cent since launching its Smart Reward card.

One industry expert I talked to earlier this week told me it wasn’t rocket science, describing the issue of customer retention as ‘mission critical’ for dealers right now. There’s nothing clever or sophisticated about these car showroom schemes. You hand over the card when you’re spending money at the dealership and build up credit to be used to get money off further purchases. It’s just like shopping at Tesco or Boots… except it’s hard to spend £12,000 on deodorant and toothpaste.