The Mercedes-Benz Club of America (MBCA) has decided to extend its Loyalty Reward Program.
The 2009 Membership Loyalty Reward Program offers MBCA members a $1,500 reward gift card for purchasing or leasing a new Mercedes-Benz vehicle through Dec. 31, 2009. The $1,500 reward gift applies to all new 2008, 2009, and 2010 models, excluding AMG models. MBCAmembers who purchase a Mercedes-Benz Certified Pre-Owned vehicle in 2009 including AMG models are eligible to receive a $750 reward gift card. There is also a $250 card available for members that purchase a pre-owned Mercedes-Benz from a licensed independent U.S. dealership. The reward gift cards are redeemable toward parts, service, personal accessories and vehicle accessories at any authorized U.S. Mercedes-Benz dealership.
The key question I have is why does MBCA feel the need to have a loyalty program?
In my opinion, the $45 annual fee for MBCA already provides plenty of benefits (not too different than what Harley Owners Group would provide).
Member benefits include select dealer discounts, a magazine subscription to The Star, and events such as organized race track classes, social gatherings and travel opportunities.
What would have been the consequences of of discontinuing this program? Would people drop off? Would program profitability decline?
I am not sure if these questions were asked or what type of analysis was done to arrive at their decision. Regardless of their intent, MBCA is supporting the tribe by providing them an added benefit. Perhaps a much welcomed benefit in these tougher economic times.
