All You Need to Know about Tesla’s Loyalty Programs in Automotive Sector
- Posted on April 27, 2023 by Robert
- Reading time about 5 minutes
Talking about the automotive sector, car manufacturers, dealerships, repair shops, and ride-sharing businesses are constantly looking for ways to introduce new, disruptive measures that will not just help to stay afloat but also help to stay ahead of the competition. Automotive Loyalty Programs are becoming a great solution to offer a wide range of next-gen car rewards that are now capable of driving KPIs for such brands.
In this blog, we will learn about automotive loyalty programs and their significance to meet the specific needs & challenges of the automotive industry with the example of Tesla’s loyalty program.
Significance of Automotive Loyalty Programs
Automotive loyalty programs act as a unique retention strategy that aims to achieve immense business opportunities with new reward offerings for businesses in the automotive industry like car manufacturers, dealership loyalty programs, car rental programs, etc. Similarly, Tesla’s referral loyalty program is back and offering customers the big opportunity to earn credits for referring new customers to Tesla.
If we talk about Tesla Loyalty Program, it can be defined as the program that has been designed exclusively to earn credits, the loyalty currency that is simple to earn and redeem, helping customers to engage more often with the brand. About earnings of Tesla credits, they can be earned easily on Tesla purchases such as vehicles, solar accessories, maintenance, and supercharging. Another appealing way to earn credits is through referral campaigns that the brand offers.
Referral Strategy in Tesla’s Loyalty Program
The best thing about the Tesla program is that it offers a referral bonus to existing customers that use Tesla’s services and encourage them to bring in new ones offering them rewards for the same. Under the current referral program of Tesla, customers get earnings easily in the form of incremental credits for various Tesla vehicles, which offer different credits based on different vehicle models.
For instance, if we take an example where a customer purchases a Tesla Model Y, he/she will automatically earn 1500 credits during purchase plus an incremental 2000 points if they have purchased using a referral. Additionally, the referring member also earns the amount of 2000 credits.
With the help of a referral loyalty program by Tesla, you can refer friends and family & encourage them to make purchases. Through this program, you can accumulate credits that can be redeemed for various Tesla products & services such as supercharging, maintenance, accessories, and the purchase of new Tesla vehicles as well. To earn referral credit, purchasers are more likely to purchase a referral link.
Steps that shows how the purchase of Tesla product is done through referral link-
i. Click on your friend’s referral link
ii. Buy the Tesla product of your choice using the referral link
iii. Once the order is placed, credits will appear as “pending” in the referrer’s loot box until the grant date arrives.
iv. Use referral credits to buy another Tesla product or use on services like maintenance, supercharge, etc.
Note- The referral can be added after the order has been placed.
The Changing Face of the Tesla’s Referral Program
With the relaunch of the program, Tesla has changed its referral program every time and has made several amendments to ensure it remains effective and fair. Tesla has gained expertise in becoming the master of test and learn strategizing in the referral space. For instance, the brand offers a limited number of referrals per customer and has adjusted the value of credits as per the market conditions.
Not just that, Tesla offers measures around referral programs against misuse and abuse. This means members who are suspected to earn non-genuine referral credits (by posting their referral link in forums and blogs), have the risk of being disqualified from the program.
Also, many referral campaigns enable ambitious referrers to get a brand-new Tesla. However, such campaigns are described as overly generous and challenging to fulfill along with records of extreme delays in fulfilling orders on free vehicles earned.
Things to Keep in Mind While Building Automotive Loyalty Programs
– Offer a simple loyalty program that allows members to earn and redeem credits/points on products and services
– Go for an automatic opt-in feature in the loyalty program
– Make use of a referral strategy once in a while instead of always-on offering
– Don’t offer an overly generous referral reward if delivery can be an issue in customer experience
– Offer measures to monitor and minimize instances of program abuse.
After going through the blog, it is quite clear that Tesla’s loyalty program and referral strategy are doing wonders in increasing customer engagement and retention, eventually leading to higher commitment toward the brand. The company aims to incentivize customer advocacy, which serves as a great example for other companies in the automotive sector to learn from. Tesla’s loyalty program is one of the most successful programs in the world that aid in driving a new customer base, boosting repeat purchases, and increasing lifetime value.
Novus serves as a Scalable Customer Loyalty and Rewards Management Software that enable different brands in the automotive sector to build a wide range of car manufacturer loyalty programs that can be tailored to drive individual KPIs like enhanced personalization, increased brand awareness, etc. Connect with the loyalty experts of Novus to build similar programs like Tesla loyalty programs to offer valuable car rewards.