5 Reasons Why you Should have a Mechanic Loyalty Program?

India’s automotive sector has advanced significantly since the 1950s, when the country could only produce 40,000 cars a year. Hindustan Motors, Premier Automobiles, and Standard Motors were the only three top manufacturers allowed to participate in the early stages of production. In the beginning, most people in the automobile industry gained their expertise by trial and error. Over the years, the nation has become a significant player in the global automobile sector, ranking third in Asia-Pacific as of 2022.

In the rapidly growing and highly competitive Indian automobile market, after-sales service plays a major role in influencing the decisions of vehicle owners. Mechanics are the backbone of automobile after-sales service and often serve as the first point of contact for any customer seeking advice about the best products and services for their vehicle. This makes winning the unflinching loyalty of a mechanic imperative for automobile companies. An Influencer Loyalty Program can be a powerful tool in this context, as it rewards mechanics for recommending and endorsing a brand’s products, thereby strengthening their relationship with the brand and encouraging them to become loyal advocates.

A well-structured mechanic loyalty program would enable automobile manufacturers to nurture long-term relationships with this vital segment of the market. In this blog, we will look in detail at five compelling reasons why your business should invest in a mechanic loyalty program, supporting the same with real-life examples and case studies from the Indian market.

What is a Mechanic Loyalty Program?

A mechanic loyalty program is a reward-based program designed for automobile mechanics  to engage them, motivate them, and ensure continuous patronage and  advocacy for your brand. Tailor-made rewards, discounts, cash bonuses, tools, training, etc. are the foundation of an effective mechanic loyalty program. 

In India, where the automobile spare parts and repair market is still unorganized, loyalty programs can be highly instrumental in building true loyalty among mechanics in order to ensure they recommend and continue to use your products.

How Do Mechanic Loyalty Programs Work?

Most of the mechanic rewards programs in India are based on a point-based system and reward redemption. Mechanics earn points through various activities. They can earn points by purchasing specific products, attending training sessions, and referring others to the program. Accumulated points can be redeemed for a range of rewards. These rewards include tools and equipment to enhance their work. Additionally, mechanics can redeem points for experiential awards like trips. Monetary awards are also available for redemption. By participating in the program, mechanics can accumulate points and choose their desired rewards.

The “Castrol Auto Service” loyalty program by Castrol India is one of the finest mechanic loyalty programs in the country. Under this program, enrolled mechanics earn points by purchasing Castrol products, redeemable for branded merchandise, tools, and even training sessions. The scheme also brings on board an element of competition, in the form of top-performing mechanics who can win trips abroad and other special prizes.

Importance of a Mechanic Loyalty Program

1. Improved Mechanics Retention 

Retaining qualified mechanics is essential for automobile companies to stay relevant in the market and retain their customers. It is with programs like the “Shell Go Plus” program that it has been possible to retain mechanics; this program involves personalization of rewards. Points are awarded to buyers of the Shell lubricants, redeemable for tools, branded merchandise, and even education courses. The constant engagement and values obtained from the reward ensure that mechanics remain loyal to the brand Shell, thereby achieving higher retention.

2. Boosting Engagement Among Mechanics

Mechanic loyalty programs drive greater engagement by offering rewards that go beyond incentives on product purchases alone. Mobil’s “Mobil Mechanic Unnati” program not only rewards purchases but also engages with mechanics through periodic training sessions and certification programs. This inside-out strategy keeps the mechanics engaged and well-informed e about the brand products to ensure better recommendations to customers and customer satisfaction.

3. Building Brand Advocacy

The influence of mechanics on the products customers choose for their vehicles is very strong. Developing a good relationship with them will make them formidable brand advocates. Take the case of the “IndianOil Servo Mechanic” program. IndianOil encourages mechanics to recommend Servo lubricants by offering a reward for every recommendation made. This has helped IndianOil get better brand visibility and has strengthened its position in the highly competitive lubricant market.

4. Competitive Advantage 

In a market as fiercely competitive as India, differentiation is the need of the hour. A mechanic loyalty program provides that differentiation to a brand by giving them rewards that the competition may not be able to match. Take for example, “HERO Goodlife“—a remarkably exhaustive rewards program by Hero MotoCorp that extends tools, merchandise, and even special invitations to company events. This unique offering has helped HERO MotoCorp differentiate itself in the two-wheeler segment and attract more mechanics into its network.

5. Collecting Valuable Insights

Any loyalty program is a goldmine of data and a mechanic loyalty program is no different. Through the behaviors and preferences of mechanics participating in them, businesses can easily tailor their products and marketing strategies to fit in. For example, Bosch’s “Bosch eXtra” program uses data from its loyalty initiative to understand the requirements of mechanics better and develop products to suit them. Bosch has been able to retain a strong foothold in the Indian automotive after sales service market due to this data-driven approach.

Types of Mechanical Loyalty Program

1. Points-Based Program

In this kind of loyalty program, a mechanic earns some specified points for specified activities like making purchases, attending training sessions, or referring other mechanics to the program. The points can later be accumulated and redeemed against goods, branded merchandise, or cash incentives. This type of program is much in demand since it is rather simple and easy to be understood and executed by the participants.

2. Tiered Loyalty Program

In a multi-level loyalty program, there will be several levels of reward, sometimes up to a specific number of points owned, in the mechanic’s participation, or in total spending for customers at that level. For example, the mechanic may start from the basic tier with general rewards to higher tiers offering special benefits as he earns more points or performs more actions. These types of programs basically induce further participation since the rewards are incrementally valuable as the mechanics climb the tiers.

3. Referral Program

Referral programs are those that give mechanics rewards for bringing new entrants into the loyalty program, or for recommending your brand to their network. Mechanics could be awarded with certain numbers of points or rewards for each referral they bring in. Such a program doesn’t just activate the current mechanics but grows your customer base from the mechanisms in the system that are capitalizing on word-of-mouth marketing.

4. Purchase-Based Program

In a purchase-based program, the rewards are directly related to the purchases made by the mechanics from the program-specific products or services. For example, for every purchase of a certain amount of your products, the mechanic gets a discount or another item free. This type of incentive does tend to really drive sales and product consumption for your brand.

Challenges in Mechanic Loyalty Programs

1. Sustained Engagement

The toughest challenge when running a mechanic loyalty program is to keep them active and engaged in the program, more so in rural areas where people are still not well-versed with technology at the grassroot level. To offset this, it becomes important to ensure that the program is accessible via digital and offline channels that are easily accessible (SMS, phone calls, and even in-person interactions with the program) and user-friendly. Businesses can ensure ongoing participation and long-term engagement by making the program easy to use and hosting it on platforms that mechanics are most comfortable operating on.

2. Ensuring the Relevance of Rewards:

Another big challenge is creating relevant and appealing rewards for mechanics. If the rewards are not in line with the mechanics’ needs and preferences, they may lose interest in the program. To avoid this, the business should continue soliciting feedback from program participants and update the rewards catalog accordingly. In keeping the rewards fresh and relevant, businesses can maintain mechanics’ interest and continue to drive participation in the program.

3. Effective Management of the Program

Large mechanic loyalty programs can become very complicated, particularly if it involves a large network of participants spread over different regions. It could give rise to operational difficulties and inequities in the delivery of the program. One way by which all these operations could be streamlined and controlled is by using loyalty program management software. It would be easier to track participation, reward distribution, and a smooth running of the program. With proper tools, a company can manage the loyalty programs effectively, even at a large scale.

How to implement a Mechanic Loyalty Program

1. Determine your objectives

Clearly define what it is you are looking to achieve with your loyalty program. If you are looking to increase usage of your products, long-term mechanics relationships, or increased brand loyalty, setting your goal gives impetus to everything that follows.

2. Understand Your Audience

Research and understand the needs and preferences of the mechanics with your target market. Find out which products they use the most, challenges they face, and what types of rewards would motivate them most. All these insights would help in designing a program that would best appeal to these professionals.

3. Design the Structure of the Program

Based on your goals and audience knowledge, sketch out the architecture of your loyalty program. Decide on the rewards you will provide, how your mechanics earn points or rewards, and what redemption is required. Take into consideration a range of rewards- such as product discounts, branded merchandise or training offers- to attract a broad section of participants.

4. Select the Technology

Large-scale implementation of the mechanic loyalty program would require good technology. Invest in loyalty program management software to enable a tracking mechanism for all activities, rewards distribution, and data analysis. It should be user-friendly and available on both digital and other offline platforms, such as mobile apps, SMS, and phone support, to accommodate all mechanics.

5. Launch and Promote Program

Once your program is prepared, launch it with a highly effective promotional campaign. Use various channels to reach your target audience, including digital marketing, in-person visits, and word-of-mouth. Clearly communicate the benefit of the program and how mechanics can participate in it.

6. Monitor and Optimize

Monitor the performance of the program constantly after its inauguration. Keep track of elements such as participation, how often people redeem rewards, and overall engagement. Gather feedback on a regular basis and be prepared to make changes to the structure of the program, the rewards catalog, or communication strategies based on this feedback.

7. Provide Ongoing Support

Support is ongoing. Make sure mechanics can easily reach out for help through customer service hotlines, SMS support, or in-person support. They should be regularly updated about which new rewards have entered the program and about any promotion updates.

Case Studies or Mechanic Loyalty Program Examples

• MITWA Loyalty Program (MLP) 

The MITWA Mechanic Loyalty Program is an initiative designed to reward mechanics for the purchase of certain products and training sessions organized across the country. Every purchase or attendance at the training session awarded points that could be redeemed against worthwhile rewards in tools, branded merchandise, and cash incentives. The approach has considerably improved participation and ensured stickiness to MITWA’s professional development focus, thereby securing a firmer foothold in the market.

The MITWA MLP has been instrumental in building long-term relationships with mechanics and turning them into brand advocates. It is because MITWA has aligned the rewards with professional needs of mechanics, making sure their program stays relevant and current to them, consequently assuring continuous engagement and a competitive advantage in the industry.

• Ashok Leyland’s Loyalty Program

Ashok Leyland, one of the biggest commercial vehicle manufacturers in India, ran a loyalty scheme for mechanics on incentives for buying genuine auto parts. These mechanics have earned points redeemable against tools, branded merchandise, and participated in exclusive training programs. Not only did this increase the usage of genuine Ashok Leyland parts, but it also improved mechanics’ loyalty to the brand.

The skill development and professional growth that the program offers have made it quite an attraction for mechanics all over the country. By giving rewards that best fit what mechanics need, Ashok Leyland has been able to position itself as a preferred brand in India’s highly competitive automotive market and has come to mean both high engagement and brand loyalty.

Ending Note

A mechanic loyalty program is way more than a rewards program; it is basically an instrument for strategized relationship building with the mechanics who drive your enterprise. A mechanic loyalty program serves many purposes like improving customer retention, increasing engagement, promoting brand advocacy, gaining a competitive advantage, and increasing knowledge about your customers.

But for its success, it must consider the challenges of running such a program in India. A good mechanic loyalty program can be successfully conducted with relevance, accessibility, and good program management.

Ready to take the big leap and expand your wings? Partner with LoyaltyXpert We provide fully integrated solutions to assist in designing and managing a loyal program for your mechanic needs. We have ways to help you invent a successful mechanic loyalty program. Avail our free trial today!

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