Dealership Loyalty Programs: What Service Customers Really Want

Loyalty programs have become a cornerstone of customer retention strategies across industries, rewarding repeat business with exclusive perks and discounts. For dealerships, these programs offer a way to strengthen relationships with customers. 

More than half of service customers (58%) say they're interested in joining a dealership loyalty program. But what kind of perks are they actually looking for, and more importantly, what’ll drive their repeat business? The most recent CDK Service Shopper survey asked customers to rank the benefits that would make them the most likely to participate in one. The results offer useful insight into what keeps customers coming back. 

Maintenance Discounts Are the Overall Winner

Across all respondents, one benefit rose above the rest: discounts on scheduled maintenance and tire rotations, with 22% ranking this as their top choice. This likely isn’t entirely surprising but it does align with what customers already purchase at dealerships. According to CDK data, oil changes (76%) and tire service (39%) are the two most common reasons customers visit the Service Lane. A discount on those core services provides tangible value, making it the most universal loyalty incentive. 

The next most popular benefits were cash back or credit toward future service (19%) and free car wash or detailing (15%). These top three choices all reinforce existing customer behavior, rewarding drivers for the services they already rely on dealers for the most. 

Generation Z Is the Most Enthusiastic

Enthusiasm for loyalty programs varies by generation. Gen Z stands out as the most eager to participate, with 90% expressing interest — double the rate of baby boomers and the Silent Generation, who came in at 45%. That enthusiasm makes sense when you consider that 94% of Gen Z respondents had their vehicle serviced at the same dealership where they purchased it, compared to 75% of baby boomers and the Silent Generation. With stronger existing ties to their dealership, Gen Z customers are already primed for retention efforts that recognize and reward their loyalty. 

Each Generation Has Different Values

Understanding what each generation values can help dealerships design automotive loyalty programs that can help improve customer retention, increase Service department revenue, and build long-term relationships. 

Gen Z: Personalization and Strong Loyalty Intent

Gen Z car buyers show the highest interest in dealership loyalty program benefits that feel personalized. 

• The choice that would win them over the most: free car wash or detailing, chosen by 16% of respondents in the CDK Service Shopper study.
• They also showed stronger interest than other generations in personalized offers based on vehicle history and special financing for members, two benefits that barely registered among older drivers.
• Gen Z loyalty can’t be overstated: 92% said they plan to buy their next vehicle from the same dealership. 

Gen Z wants customized rewards and expects a connected, tech-friendly experience. Their responses show a preference for loyalty programs that feel tailored to them.

Younger Millennials: Convenience, Flexibility and Time-Saving Benefits

Younger millennials also expressed strong enthusiasm, with 85% interested in joining a loyalty program.

• They favored discounts on scheduled maintenance and tire rotations (22%), but they also valued flexibility and convenience. 
• Convenience-focused benefits, like trade-in bonuses, priority scheduling, early or extended service hours, and referral awards held greater appeal for this group, perhaps because they're balancing young children, careers and limited free time. 

This generation values time-saving service perks and flexible benefits due to busy schedules balancing careers and family.

Older Millennials: Value-Driven With a Preference for Exclusivity

Among older millennials, 77% are interested in automotive loyalty programs. Their preferred benefits include: 

• Maintenance discounts highest (18%)
• Free car washes and member-only pricing on repairs or parts, reflecting a desire for convenience and a touch of exclusivity

This group responds well to exclusive dealership benefits that offer practical value while also reinforcing a VIP-style ownership experience.

Generation X: Practical, Straightforward Rewards

For Gen X, 60% are interested in a loyalty program. They prefer reliable, easy-to-understand dealer incentives. Their top benefit mirrored other generations: discounts on scheduled maintenance and tire rotations. 

No single perk stood out as particularly unique to the group. This suggests that Gen X customers value reliability and practicality, preferring straightforward rewards over elaborate programs. 

Baby Boomers and Silent Generation: Clear, Upfront Savings

Baby boomers and the Silent Generation showed the least interest overall. However, when they do engage, they know what they want. 

• Twenty-five percent ranked discounts on scheduled maintenance as their top choice, the highest of any generation
• Cash back or credit toward future service at 23%

For these customers, clear, upfront savings drive loyalty more effectively than added perks or exclusivity. 

Dealer Loyalty Programs Create Lasting Relationships 

These findings reveal that loyalty programs built around routine maintenance are the strongest common ground across all generations. From there, other benefits like cash back or service credit can add value, while extras such as complimentary car washes or detailing deliver a sense of appreciation that resonates with many customers. 

Generational differences offer an opportunity for personalization. Younger drivers tend to respond to offers that emphasize flexibility, convenience and customized rewards, while older customers gravitate toward straightforward savings. 

A well-designed loyalty program reinforces trust and habit. When dealers use insights like these to shape experiences around customer preferences, they create long-term relationships that lead to repeat