A new survey by American Express Incentive Services, L.L.C. claims that low-interest financing and cash-back deals at auto dealerships may not be working to fuel consumer interest and sales. Most of the 1,012 consumers surveyed said a gas incentive would most motivate them to test drive or consider purchasing a vehicle.
When given the option of a $50 gas, gift or dining card or entry into a drawing for a free trip, more than half - 60 percent - of car shoppers said the gas card would most motivate them to take a new car for a test drive.
In addition, according to the survey, once they are in the showroom, a gas incentive can turn a consumer's initial interest into a purchase. Of those in the market for a new vehicle, the highest number, 45 percent, said that a two-year's supply of gas would most motivate them to consider purchasing a vehicle. They favored gas over zero-percent financing, a $1,000 rebate, a trip worth $1,000 or a $1,000 gift card, claims the survey.
Gas was even a powerful purchasing incentive for those who aren't in the market for a new vehicle. The highest number of these consumers, 33 percent, said a two-year's supply of gas would most likely change their minds and motivate them to consider making a purchase. Again, they preferred gas to zero-percent financing, a $1,000 rebate, a trip worth $1,000 or a $1,000 gift card.
"The zero-percent financing deals offered late last year may have driven traffic into dealerships, but they were costly for the industry," said David Mulcahy, AEIS director, product marketing. "Moving forward, automakers will look for incentives that are cost effective and build the kind of longer-term brand favor needed to compete."
One incentive that, according to the survey, meets both requirements is AEIS' Fill It Up Card. It offers the gas reward consumers want and helps automakers tackle the critical test drive step in the purchasing process. Plus, the Fill It Up Card is available in pre-denominated amounts, so programs can be structured to motivate consumers to test drive, purchase and provide referrals. Customize the Card with a logo, and the survey shows a company can boost favorable brand impressions. More than 50 percent of current shoppers said a branded incentive Card would give them a more favorable opinion of an auto manufacturer.
"As AEIS' survey data shows, the right incentive has the power to turn window shoppers into buyers," said Mulcahy. "And, consumers are saying the right incentive is gas."
For more information about incentives for the auto industry, log onto www.aeis.com.
About AEIS
AEIS develops and delivers business-to-business reward solutions designed to satisfy a spectrum of clients' needs from employee motivation, loyalty and recognition to distribution partners, sales representatives and customers. In addition to traditional American Express Gift Cheques and reward cards, AEIS also offers virtual rewards that allow participants to receive points online and to redeem these points at a comprehensive list of online merchants.
