Automotive Clubs: The Future for Car Marketing?
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London, UK May 21, 2008; New research from Arvato Loyalty Services has shown a rich vein of potential for automotive brand clubs among UK consumers with nearly 40% of people surveyed expressing an interest.
Andrew Mitchell of Arvato Loyalty Services said that ‘after the success of loyalty schemes, it looks like clubs might be the next great initiative in customer marketing.’
Automotive brand clubs can offer more than discounts or points. For example, a scheme could offer members the opportunity to have advanced access to new products (e.g. the chance to test drive a new car before it is available in dealerships) or car-related opportunities (such as driving at Brands Hatch, or advance sale tickets for the UK Grand Prix).
The appeal of a brand club derives from the exclusive opportunities it provides, setting it apart from a loyalty scheme that simply provides discounts on future purchases.
At a time when budgets are likely to be stretched, many marketers may be reluctant to construct such a scheme because of the likely cost. Yet the report also found that 40% of people would be willing to pay to be a member of a brand club. Even more interestingly, 29% would pay up to £40 and 21% would be willing to pay over £100. This shows that these schemes have not only the capacity to be self-sufficient, but also to make a profit.
While companies will have to offer strong incentives to attract consumers to join their club, it offers the chance to form exceptionally strong relationships with people who have a special interest in the brand. Furthermore, the fact that the highest level of brand membership is among wealthy people (‘A’ social class) shows that this can be a useful way of reaching a lucrative but elusive market.
Why are people so willing to join these clubs? The research found that over half of people surveyed said that advance or exclusive access to products would attract them to join a club.
The report also notes that ‘we have become a nation of avid points collectors’ and it could be said that club membership is something inherent in British culture. As children we are told that ‘Blue Peter badge winners get in free’ and as adults we collect air miles and supermarket loyalty points.
Notes:
1. The report /Join the Club? A study into the popularity of brand
clubs, and the factors that attract people to join/ is published
by Arvato Loyalty Services.
2. A representative sample of over 1,000 UK adults was surveyed
during January and February 2008, with the sample balanced by age,
gender, region and social class. Respondents were asked to state
how effective different types of advertising are at encouraging
them to visit a company’s website and seriously consider a
purchase. Fieldwork was conducted by Ciao Consumer Surveys, a
member of the Greenfield Online Group .
About Arvato Loyalty Services
Arvato Loyalty Services is a relationship marketing agency that creates
and delivers complete customer experiences which strengthen customer
relationships and build loyalty. Attention to individual differences
helps clients to acquire, retain and educate customers, building brand
communities through customer insight, data management, creative content
and customer experiences. In the UK, Arvato Loyalty Services is based in
London, with over 220 employees. The business is part of Arvato
Services, Europe's largest CRM service provider and part of the
Bertelsmann Group. Arvato companies manage customer clubs and/or loyalty
schemes for many iconic brands, including the Harley Owners Group, the
Cyclists Touring Club of Great Britain, the Alfa Romeo Cloverleaf Club,
Book Club Associates, the Krombacher Club, the Dr Oetker Club, the Shell
Smart scheme, Lufthansa Miles & More, Webmiles, Ethel Austin and Sampdoria.
For more information, please contact Duncan Mayall at Lindsell Marketing
(Duncan@lindsellmarketing.com
