Automotive Manufacturers Can Engage Consumers with Incentives

Those involved in the automotive industry can utilize incentives to achieve a wide array of objectives. Incentives can be valuable no matter what segment you operate in and no matter who your target audience is.

In this blog, we will focus on automotive manufacturers and how they can engage their consumers by offering various cash and non-cash incentives.

Automotive manufacturers looking to increase sales of new vehicles and strengthen existing customer loyalty should look to three distinct incentive program solutions.

Purchase Incentives – Close More Vehicle Sales and Move Product Faster

As an auto manufacturer, the word “incentives” probably means cash back to the customer. Administration is typically most efficient and effective on a prepaid debit card. These cards empower the customer by giving them the freedom to spend their money as they choose.

While cash is helpful in moving inventory and adjusting price levels, non-cash incentives such as merchandise, travel incentives or gift cards are more powerful in sweetening a deal when cash is not enough. By utilizing corporate discounts based on quantity, these incentives can offer a higher perceived value to the recipient while being very low in actual cost to the company. Procuring hundreds or thousands of a particular item will allow your cost per item to come in well under the retail price the consumer would otherwise pay.

Although offering a gift may be appealing to some, it is important to offer a “cash out” option that equals the promotional value of the non-cash items to accommodate those who need the extra cash in-hand to make a down payment and ultimately close the deal.

Gift After Purchase/Customer Loyalty Incentives – Keep Customers Loyal Long-Term

Although most manufacturers feel that cash is the most effective way to sell cars in the short-term, merchandise and travel can be interesting after-purchase gift options to increase the loyalty of your customers in the long-run. Getting caught up in the pressure to sell today and ignore long-term loyalty is understandable, but not wise.

Carefully selected merchandise will allow you to target a very specific demographic of consumers based on their interests and needs. Incentive travel for your most loyal customers can deliver priceless, memorable experiences that are impossible to replicate. Automobile manufacturers that prioritize customer loyalty are already starting to understand that non-cash incentives are crucial.

The following are some rather positive statistics compiled by Incentive Performance Center about these Gift After Purchase/Customer Loyalty Incentives programs.

  • 75% of recipients told others about the gift
  • 30% of those recipients told 4 to 7 people
  • 98% would recommend the brand to others
  • 71% said the gift exceeded their expectations

Loyal customers are great brand advocates. They possess lower selling costs, increased profitability over time and tend to be more willing to pay higher prices for your product. The lifetime value of a loyal customer is truly astounding.

Test Drives – Increase Showroom Traffic and Sales Revenues

There is a direct correlation between the number of test drives taken and the number of vehicle sales. This has been tested in many studies and is widely accepted in the automotive industry. Offering non-cash incentives that directly appeal to your target market is the most effective way to ensure that your budget is being allocated to the appropriate audience.

The incentives should be attractive enough so that your focused demographic is intrigued, but carefully targeted to avoid accommodating a mass number of unqualified individuals that come in to the dealership and waste the time of the personnel with no true interest in making a purchase.

Incentives given in exchange for test drives are an essential component of efforts to effective sales strategies.

In conclusion

As an automotive manufacturer, a fundamental understanding of incentives is paramount. A failure to grasp or deliver incentives successfully simply represents a lost opportunity to achieve greater profitability. While this blog specifically discusses how automotive manufacturers target consumers, future blogs will examine how other automotive audiences can benefit from these programs.

If you’d like to explore this topic further, please read the full study compiled by Incentive Performance Center here, explore how we deliver incentive programs here or send me an email at so that I can provide you more detailed information on any of the topics covered in this post.

By JNR Incorporated

Written by Kristopher Hewkin


JNR Incorporated is a results-based, globally recognized leader that specializes in creating custom travel, meeting, event, prepaid card and merchandise programs that motivate, engage and inspire the employees, customers and channel members of our clients. We have over 30 years of experience working with Fortune 500 companies of many diverse industries. Our programs are tailored to fit the specific needs of marketing, sales, management and human resource professionals. The unique solutions we apply are measurable and proven to increase performance, loyalty and revenues.

This Year’s Top 25 US Travel Destinations

Spring is in full bloom and the sizzling summer is just a few short weeks away, so it’s the ideal time to discuss the 25 most popular 2013 travel destinations in America according to a TripAdvisor poll.

These fabulous cities can provide the perfect setting for your personal vacation with family or your next incentive travel, group travel, meeting, or conference for employees, channel members, and customers. Domestic travel represents a more cost effective and less risky approach to increasing employee engagement, channel effectiveness and customer loyalty than planning international trips.

Millions of users were surveyed on their favorite places in the world to travel to compile this intriguing list. While much of the list will be unsurprising to you, there are a few choices that might take you by surprise.

Without further ado, I present the “25 Most Popular Travel Destinations In America” list along with a few recommended “can’t miss” attractions in or near each city!

25.   Houston, TX – Bayou Place, The Galleria Mall, and The Johnson Space Center

24.   Naples, FL – The Naples Botanical Gardens, Keewaydin Club and Naples Depot

23.   Palm Springs, CA – Ace Hotel & Swim Club, Joshua Tree National Park, Moorten Botanical Garden and Cactarium

22.   Kailua-Kona, HI – Huliheʻe Palace, Aliʻi Drive, Kahaluʻu Bay

21.   Myrtle Beach, SC – Myrtle Beach Boardwalk, The Carolina Opry, Myrtle Waves,

20.   Philadelphia, PA – The Liberty Bell, Rocky Statue, Independence Hall

19.   Portland, OR – Portland Art Museum, Tryon Creek State Natural Area, Portland Opera

18.   Lahaina, HI – Front Street, Plantation Golf Course at Kapalua, Hokoji Shingon Mission

17.   San Antonio, TX – The Alamo, River Walk, SeaWorld

16.   Napa, CA – Wineries of the Napa Valley, Napa Valley Opera House, Carpe Diem Wine Bar

15.   Charleston, SC – The Charleston Museum, The Dock Street Theatre, Allan Park

14.   Savannah, GA – Tybee Island Light Station, Savannah Historic District, The German Memorial Fountain

13.   Sedona, AZ – Cathedral Rock, Devil’s Bridge, Sedona International Film Festival

12.   Miami, FL – South Beach, Coconut Grove, Brickell Key


11.   Seattle, WA – The Space Needle, Pike Place Market, Lake Union

10.   New Orleans, LA – Bourbon Street, French Quarter, Bayou Sauvage National Wildlife Refuge

9.       Honolulu, HI – Diamond Head, Waikīkī, Makapuʻu Beach

8.       Los Angeles, CA – Griffith Observatory, Hollywood, Dodger Stadium

7.       Boston, MA – Fenway Park, Bunker Hill, Harvard Square

6.       Washington, D.C. – The White House, National Mall, Lincoln Memorial


5.       Orlando, FL – Disneyworld, SeaWorld, Universal Studios

4.       Las Vegas, NV – The Las Vegas Strip, Hoover Dam, Stratosphere Tower

3.       Chicago, IL – Wrigley Field, Millennium Park, Willis Tower (formerly Sears Tower)

2.       San Francisco, CA – Golden Gate Bridge, Fisherman’s Wharf, Haight-Ashbury

1.       New York City, NY– Empire State Building, Times Square, Rockefeller Center