Power of Points: Reward Programs Drive Customer Retention and Increase Revenue

Anyone who regularly picks up their lunch at certain restaurants, notably fast-food restaurants, is likely familiar with loyalty programs. After buying a number of burgers or spending a certain amount of money on a burrito with a side of chips and salsa, you’ll earn points and on your next visit will, in turn, receive a free item, possibly even an entrée. 

Although we tend to think of loyalty programs as something from only the past few decades, they actually date back to the late 18th century, when New Hampshire merchants rewarded repeat customers with copper tokens that could be redeemed for future purchases. By the early 20th century, these evolved into coupons and trading stamps. As time passed, more sectors began to reward loyal customers. 

Among the most popular loyalty programs are those aimed at “frequent fliers,” which, in turn, have led travelers to become especially partial to one airline. The same opportunities are now present in the quick lube and automotive service sector. 

Brandon Ventura, co-owner and operator of QuikTech in Hampstead, North Carolina, tells National Oil and Lube News that its loyalty program has driven repeat business and proven to be a low-cost way to generate word-of-mouth recommendations that have brought in more customers. 

“We took the idea from the restaurant industry, notably fast food chains that offered a point-based system so that people would come back in the future,” explains Ventura. 

Services Equal Points 

For QuikTech, the system is very straightforward: During every visit, the customer earns points. A conventional oil change will reward the customer with 45 points, high-mileage oil will earn 60 points, and customers who opt for synthetic oil can be rewarded with a “whopping 79 points.” 

These points translate to dollars. Customers who reach 250 points can enjoy $25 off their next oil change. The points never expire and can just increase. 

“A lot of times, the customer doesn’t even know how many points they accrued. We have to explain to them that they can receive a discount,” adds Ventura. 

Why Loyalty Programs Make Sense 

As the airline industry found, some consumers will spend a little more for future savings. In the fast food world, many individuals might even drive a little farther simply because each purchase earns that reward. 

“One of the biggest misconceptions about loyalty programs is that they are simply discount tools. The strongest programs actually function as customer retention and relationship systems,” explains Angeli Gianchandani, global brand strategist and adjunct instructor of integrated marketing at New York University. 

Gianchandani tells NOLN that for independent automotive service providers, loyalty programs help create continuity in a highly competitive market where customers have many choices and little friction to switch providers. 

“A well-designed loyalty program also gives operators valuable insight into customer behavior, including service frequency, seasonal patterns, purchasing habits, and response to outreach,” adds Gianchandani. “That visibility helps businesses stay connected to customers between visits, reduce drop-off over time, and create more relevant engagement that increases repeat business.” 

The economics are important as well, especially as consumers remain concerned about affordability and high prices. Loyalty programs are a value-add that the clients will see and appreciate. For the shops, it creates a loyal customer. 

“Retaining an existing customer is typically far less expensive than acquiring a new one,” says Gianchandani. “Once trust and familiarity are established, customers are more likely to return, spend more over time, and recommend the business to others. The strongest loyalty programs are not built around constant discounting. They are built around consistency, convenience, recognition, and trust.” 

Although some old-timers may see the process as too complicated, it is far more than just a card or ticket punched with each visit. Today’s loyalty programs can be easily linked to a phone number and monitored by the client via a simple setup app. 

“As artificial intelligence and automation continue reshaping customer engagement, businesses that understand their customers and maintain long-term relationships will have a meaningful competitive advantage,” Gianchandani continues. 

The Bottom Line 

At QuikTech in Hampstead, N.C., setting up the loyalty program was straightforward, and it has already paid off. 

“It continues to bring in customers,” says Ventura. “We see many are now very aware of the loyalty program. Instead of a marketing gimmick that brings in one-time customers, I’m building repeat and loyal customers.” 

The loyalty program has been especially welcomed by customers who face more than just an oil change. Today, even a small discount on a big-ticket item can be something that the client sees as real value, and expecting such services can result in them saving points. 

“A lot of our customers appreciate the loyalty program most when it comes to higher ticket items, notably tires,” adds Ventura. “Once they are aware of when they will need tires in a year, they’ll be sure to be back for the oil change in the meantime to earn the points to go towards the tires.” 

That is where the loyalty truly pays off.