By on January 28, 2019

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Last year, Ford announced its intent to develop a rewards program aimed at keeping customers engaged — while also making it worth their while to stick with the brand for their next purchase. While customer rewards are old hat, regardless of industry, automakers are busy devising new ways of using the venerable marketing theory to improve customer retention. It’s an urgent gambit, given today’s cooling market.

General Motors launched its “My GM Rewards” loyalty program in 2018, using a points-based system to reward customers who use OnStar’s new services, purchase a new vehicle, or service an older one. Those points can then be redeemed, knocking some cash off a subsequent GM purchase. Meanwhile, Honda previewed “Dream Drive” at the recent Consumer Electronics Show — a concept with its own redeemable points system (one that incorporates some potentially unsettling gamification within the app).

While Ford’s FordPass-based efforts appeared similar, it wasn’t until this month’s North American Dealers Association (NADA) meeting that the automaker was willing to flesh it out. 

According to Automotive News, Ford’s rewards system includes “complimentary maintenance,” though it hasn’t yet pinned down everything that will entail. Customers who sign up will also receive $210 in service credits at their local dealership. Beyond that, they will have to (you guessed it) earn points via specific actions. These actions will likely include buying a new car, spending cash at the service center, or forking it over via on-board purchases. Points can be transferred and redeemed at other dealerships for discounts and rewards, with Ford covering the cost.

“When we did all the data analytics, it became really clear: A loyal owner is so much easier for us to do business with than trying to get a customer from someone else,” Jim Farley, Ford’s president of global markets, told dealers during a meet in Las Vegas in October. “It was a big ‘aha’ moment for us.”

Expected to launch in April, it seems Ford isn’t finished tweaking its new program. As of now, the company hasn’t shown how the rewards will be incorporated into FordPass or how points will be doled out to participants. However, Automotive News claims dealers seem just as excited by the prospect as Ford’s vice president of marketing, sales and service, Mark LaNeve.

“Dealers really get the importance of customer experience,” LaNeve said. “This program will marry customers to the dealership.”

As excited as dealerships may be about Ford’s rewards program, we’re not nearly as optimistic that they’ll cheer the company’s other big NADA announcement: insisting that standalone showrooms are an essential aspect of Lincoln’s future.

Automakers are steadfast in their belief that upgrading dealerships to separate showrooms for high-end nameplates, like Lincoln, from pedestrian brands, like Ford, are a key component in ensuring success. However, even before Cadillac’s Project Pinnacle stirred up controversy, many upscale dealerships worried the incurred costs wouldn’t be worth it. The outcry grew in volume ever since, forcing General Motors to repeatedly soften its plan. The issue isn’t so much that the changes won’t bring in new customers, but that dealers won’t be able to recoup the money spent on renovations or lost during the accompanying downtime.

With this in mind, Ford took a more cautious approach. The automaker is trying to prove to dealers that remodeling is worth it in the long run while abstaining from pushing too hard, fearful of the same backlash endured by its rivals. In fact, Ford pressed pause on the program after dealers expressed concerns.

While the company intends to keep pushing for separate Lincoln and Ford showrooms, it won’t make any final decisions until after it meets with its dealer council this March. If it faces too much resistance, expect Ford to adjust expectations to better suit dealer needs. However, we’ve heard nothing about the company having any interest in abandoning the program outright.

[Image: Ford Motor Co.]

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49 Comments on “NADA 2019: Ford Outlines Rewards Program, Says Standalone Stores Essential for Lincoln...”

  • avatar
    SCE to AUX

    “When we did all the data analytics, it became really clear: A loyal owner is so much easier for us to do business with than trying to get a customer from someone else”

    Pure gold, especially after a century of selling cars.

    Lincoln should be shut down. It is the 10th worst-selling brand in the US, and Ford outsells Lincoln by 20:1. Minus Lincoln, Ford wouldn’t miss a beat, and could focus its resources on righting the ship instead of all the overhead associated with a dying sub-brand.

    • 0 avatar

      Drop Lincoln and add a Vignale trim to Ford vehicles.

    • 0 avatar

      They just figured out its easier to keep customers then find new ones? WOW… this sure explains a lot of Ford’s problems.

      And a points based system seems a bit silly for a car as for most people NOT having to go back is the desired situation since a return visit usually means something is broken.

      • 0 avatar

        JMII- My thoughts exactly. How can that be a big “Aha” moment LOL!

        highdesertcat- Lincoln is finally, after decades of nothingness, building some stuff people want to drive. Navigator is hot and the Aviator should be as well. Ford isn’t shutting Lincoln down now. However, if fuel ever gets so expensive that people move back to sedans, we shall see at that point since Ford won’t have anything in the pipeline.

    • 0 avatar

      “Lincoln should be shut down.”

      Mercury was.

      Maybe, in time, Ford will see the light.


      • 0 avatar

        hdc, last Wednesday you inserted an off-topic comment in an article on Ford that read in part:

        “Case in point, the current US gov’t partial shutdown. Here you got two old people railing against one another, one who was elected by one city, the other who was elected by the national electoral college.
        Is there any doubt who’s gonna win this one? Nope.
        Yet this whole insignificant confrontation of the ant against the elephant has an impact on Wall Street.”

        A day later, your guy – the elephant – decided to cave, which was formally announced on Friday. Your prognostication skills badly need improvement.

        In the meantime, of course, your guy caused untold hardship to hundreds of thousands of people and their families. Not even counting the many thousands of people working as contractors in federal facilities (in jobs like cleaner, janitor and security guard), who are always on the economic margin and will never receive any back pay for the income they lost over more than a month.

        How proud can you be of this fiasco and the damage it has done to people and the economy?

        • 0 avatar

          ect, this debacle isn’t over yet. Give it time.

          I have three relatives who work for DHS. My youngest son works for the Border Patrol. My #2 son works for Customs Enforcement (Intercepts), and my oldest grandson works for the surveyance side.

          And they all, like most of their colleagues want that wall.

          I am deeply disappointed that the elephant caved.

          But it ain’t over ’til its over. So I’m still holding out hope.

          BTW, I didn’t think my comment was off-topic because it dove-tailed nicely into the comment I was replying to.

          • 0 avatar

            IMHO, the comment seemed forced, and not a small bit triumphalist, but I could be wrong.

            More to the point, after having boasted about how your elephant would crush the ant, notwithstanding the suffering that was caused to ordinary folk in the meantime, what do you say to the 800,000 who weren’t paid during the shutdown and couldn’t afford the loss of income, and the many more family members who depended on those paychecks for basic necessities, for having had to endure this totally unnecessary pain?

            And what do you say to the many thousands of low-paid contractors (for some reason, nobody seems to publish numbers on this) who lost 5 weeks of income – forever -that they simply can’t afford to lose?

          • 0 avatar

            These shutdowns seem to happen every year, no matter who is in the White House, or who runs Capitol Hill.

            I didn’t vote for Trump in 2016 but I will vote for him in 2020 because of what he has done for me and mine. Life is good, for us!

            And people have suffered shutdowns in the past, and more will suffer in the future.

            This was not the first gov’t shutdown ever, and it was only a partial shutdown at that.

            There have been far worse in the past, like the one in 1995 when Clinton and Gingrich were going at it. That was a disaster. My buddy who worked for the VAMC at that time told me that life had to go on for him until his pay caught up to him. He paid what he could, skipped what he could not.

            And everyone will get paid again, even for the time they didn’t work at their gov’t job.

            How did this shutdown affect you?

            My family members who were directly affected by this temporary shutdown just shrugged it off, took money out of savings, and continued to pay their bills.

            One of them was on duty in a foreign country during the shutdown and his hotel, airline and per diem all came due before the shutdown ended.

            Just his travel bill alone on his gov’t credit card exceeded $15K which came due before he was reimbursed for travel.

            He paid it. Out of pocket.

            Trump knows that most gov’t employees are ‘crats and that he gets no love from them. I’m surprised he caved.

            I see an ulterior motive, like getting his message out to Congress and the American citizens on Feb 5th.

            Let’s see what happens on/after Feb 15th.

            Personally, I am disappointed that Trump did not declare a national emergency re the southern border. Maybe he wanted to see if Congress could handle this.

            Maybe he will on Feb 15th after all. I’d be surprised if he gets the money, so Trump being Trump will seek an alternate route to get the job done.

          • 0 avatar

            Todd, your complete detachment from reality would be almost amusing if it weren’t so pathetic.

          • 0 avatar

            hdc, shutdowns are not routine, and no other developed country would tolerate one for an instant.

            I’m happy your family members were able to weather the storm, but most people are not able to. Throughout my adult life, data has consistently shown that most Americans are 2 paychecks away from living on the street.

            And not everyone will get back pay – many thousands who work as contractors in federal facilities will see no pay at all for the shutdown period, and they are usually among the lowest paid.

          • 0 avatar

            ect, the difference between a US gov’t shutdown is that when the shutdown is over everybody gets paid back pay and they still have their jobs.

            With civilian layoffs, they lost their pay AND their jobs.

            Look back over history and see how many of these shutdowns we have had, and who occupied the White House vs who ran the Hill.

            US Gov’t shutdowns are routine. Blame the representatives we, the people, elected to run our government. Maybe we, the people, chose our representatives badly.

            We, the people, have no one to blame but ourselves when we get everything we deserve; because we VOTE for it.

          • 0 avatar

            hdc, I kind of hear you, but calling it routine doesn’t make it right.

            It’s just plain immoral to furlough government employees (which I have never been, btw)simply because a politician decides to take them hostage because he can’t seem to get his way on something.It’s even more immoral, in fact downright cruel, to force people who desperately need their paycheck to work without pay.

            It doesn’t matter which party does it, it’s just plain wrong.

            In the early part of my career, I was one of those people who simply couldn’t survive if I missed a paycheck. Thankfully, I didn’t, and progressed beyond that.

            Sorry, but dissing people who are put in that situation through no fault of their own is just plain inhuman.

          • 0 avatar

            ect, the world is not always a kind place. Especially if you work for someone or some entity like gov’t.

            That’s why I chose to be self-employed after I retired from the military at age 38.

            There were uncertainties with that, to be sure, but I had no one to blame but myself if things went haywire.

            As it turned out, things turned out pretty well for me.

            It has always amazed me that life doesn’t always work out the way you planned it should go.

            As far as what Feb 15th will bring us, I would plan for the worst, no matter which way it goes.

            The elephant is betting that the political sentiments of the San Francisco ant will not appeal to America away from the liberal coasts.

            That’s what got him elected. That’s what his strategy is based on, and that is what drives his tactical political moves.

            With all this turmoil, the ‘crats cannot get anything done in the House. Even if they got something done, it’ll never make it through the Senate.

            And if something bi-partisan makes it to Trump’s desk, he’ll veto it if he doesn’t like it, or doesn’t have in it what he wants.

            Other Presidents did the same.

        • 0 avatar

          “In the meantime, of course, your guy caused untold hardship to hundreds of thousands of people and their families.”

          Did you get a Marxist Doctorate of Propaganda on your way to reproducing this sort of spin? The ‘opposition’ created this shutdown through their efforts to thwart the will of the American people who elected this President. Their goal is for the will of the American people to never be a consideration again. Stopping the unchecked flow of soon to be illegal voters was worth a shutdown and every inconvenience experienced by anyone who lives off of the taxpayers’ sweat.

          As a global Marxist, shouldn’t you be more concerned about what bringing millions of people from low carbon-footprint third world countries to huge carbon-footprint welfare states is going to do to the climate? Isn’t climate change your WWII?

          • 0 avatar

            Todd, your complete detachment from reality would be almost amusing if it weren’t so pathetic.

          • 0 avatar

            “As a global Marxist, shouldn’t you be more concerned about what bringing millions of people from low carbon-footprint third world countries to huge carbon-footprint welfare states is going to do to the climate? Isn’t climate change your WWII?”

            Like that one quite a bit. Gonna use it myself if you don’t mind.

          • 0 avatar

            SaulTigh, you are welcome to it. Expect ad hominem responses, as they have no legitimate defense.

      • 0 avatar

        highdesertcat- maybe Mercury could have been Ford’s Buick over in China? Glad it’s gone though, just as Buick should be.

        • 0 avatar

          RSF, in its waning years Mercury was like an old fuddy duddy, resistant to change that was upon the industry, and stubborn as all hell about it.

          I cannot envision any example where the Chinese would settle for somethjing as low tech, and badly handling, as a Mercury Grand Marquis. Oh, comfort on long Interstate cruising, for sure. But suited uniquely for America’s Interstate system only. Never saw them in Europe either unless a GI brought one over from America with him.

          Buick has a place in China, less so in the US., GMC, IMO, should be folded into Chevrolet pick’m ups as the luxury alternative to the Silverado.
          For people who still want to choose a Buick, the most popular models can always be imported from China.

    • 0 avatar

      What if a returning Lincoln customer decides to look elsewhere because Ford killed Lincoln and Fords are for peasants? If Ford is going after people who’ve already bought their marketing narratives, then they can’t afford to rock the boat. They should probably bring back Mercury, since they’re going to continue to chase a pool of customers which is bound to shrink due to attrition. It makes one wonder how they can kill off their volume passenger cars while planning on retaining their existing customers. It almost sounds like they’re stultifyingly dim-witted.

      • 0 avatar

        Over the decades past a great number of people have wondered out loud about Ford, “What were they thinking?”

        Too many instances of brainfart decisions by Ford to list here, and it’s all in the past any way. Lincoln is in the here and now.

        I have owned a few NEW Fords and even more used Fords during my younger years but I can’t say I’m ever going to buy another Ford for the remainder of my life. While the ’92 Towncar I bought my wife served her long and well, I am not motivated to buy another Lincoln.

        And as far as looking elsewhere? After having dabbled in owning Ford and GM products, I looked elsewhere and chose Toyota as my brand of choice.

        Were I in the market for a luxury vehicle, Lexus wold be my #1 choice.

    • 0 avatar

      The 10th worst selling brand? Who cares?? If the brand is profitable, it’s profitable. And if they keep designing cars like the Aviator, they will absolutely make money. I’m tickled that they finally figured out who they’re supposed to be. Too bad it took so damn long.

    • 0 avatar

      To be fair, as someone who works in analytics it is one thing to say its easier to deal with existing customers and another to back up that statement with hard data.

  • avatar

    You’ll have to trust me that I’m not a snob but I agree with Ford that Lincoln needs stand-alone dealers if it’s going to compete with other similar brands. But I also have to admit that will likely kill Lincoln in smaller markets. I ordered a ’17 MKZ 3.0L back in August 2016. (In a small market.) That process, and finally taking delivery in December were both handled well. I don’t need to be treated differently, and I don’t really want to. Besides, a thought in the back of my mind was that if cost was the only deciding factor on how I’d be treated there were probably 50 F150s and Explorers on the lot that stickered higher than my MKZ.

    But… I have to say that being into this relationship for 25 months now there is a noticeable difference in the service department. I’m being honest when I say that I’m not a snob, but one of the Lincoln perks was supposed to be upscale treatment when it comes to service. Admittedly there is some of that (and admittedly, when it comes to being served properly any customer deserves that). I get a ‘Lincoln loaner’ if I want. I usually find it a lot more convenient to just get a taxi chit to the office so I save the dealership some issues there. And they wash my car. So yes, I do get some special treatment. But when I arrive at the service area I still have to wait in line the same as if I had a 2011 base Fiesta. But this is no-win for the dealership. Lincoln owners want better service to reflect the brand but Ford owners will resent being treated like second-class citizens.

    Maybe stand-alone dealers are the solution.

    If I had an Audi, BMW, Lexus, M-B or other similar brand I suspect that the service experience is different and reflects what the brand is trying to be. Sure, I may have a C-Class and you’re stuck behind me waiting to drop your S-Class off but it’s still the M-B brand.

    For me, however, it’s also a moot point. Since Ford is getting out of the car business I won’t parking another Ford or Lincoln in my garage for a while. Unless I somehow manage to convince myself that a Mustang GT with Blizzaks would be perfectly reasonable in a Maritime Canadian winter.

    • 0 avatar

      I have to agree. I live in Manhattan and since Ford closed the mega dealer(Ford, Lincoln, Volvo, Jaguar) over on 10th avenue, the options for service have, frankly, sucked.

      Last week, I took my MKZ into Queens Blvd. Ford-Lincoln for a warranty replacement of the cats. I arrived at the dealership (it was my first time there) only to find no service entrance. I called the service department and was redirected to the service department over a mile away. It was, definitely, not an upscale experience. Frankly, the Pep Boys on 21st Street in Astoria had a nicer waiting area. The people were easy to deal with, but concrete floors and having to walk through the garage area to get to the office made for a distinctly non-upscale experience. When I got the call after they had evaluated the car I got the hard sell on $800 worth of services I “needed”, including new air and cabin filters ($127) and a fuel injector cleaning (the red flag for me). I declined all of them. I picked up my car, fought my way through traffic for 30 minutes to go about a mile and got a frantic phone call from the service tech who wanted me to come back because he had left his snap-on screw gun under the interior panel in the trunk.

      Yesterday, I installed a new cabin filter (which did need to be replaced, although it was clear that they hadn’t looked at it, the yellow paint on the two screws securing the cover was undisturbed) and a new air filter (which also hadn’t been looked at as it was clean). Not at all a good experience.

      Contrast this to the dealership where I bought the car (Coccia Ford Lincoln in Scranton, PA) which has Lincoln in a separate showroom and a dedicated waiting room for Lincoln customers. Separate dealerships might not, in some cases, be necessary, but attention must be paid to making Lincoln customers feel that they are being treated well.

    • 0 avatar

      Back when there were Lincoln Mercury dealers they all treated me well when I took my Mercury in, it would come back with a fresh wash and vacuum. The Ford Lincoln dealers that are out there now do not do those kind of things and don’t have as nice of a waiting area as the L-M dealers I had used in the past.

      Which is why I said all along that closing Mercury was the worst thing Ford could do for Lincoln. The average L-M dealer did about 50/50 in sales and just couldn’t survive as a Lincoln only dealer. Which of course is why all those L-M dealers closed and Lincoln became an after thought at a small portion of Ford dealers.

  • avatar
    R Henry

    “Rewards” programs may work at supermarket, or the Hilton hotel chain. I reckon much less so for more substantial expenditures like a new car, or even a set of tires however.

    Consumers will have fun indulging a little for an upgraded hotel room if they can earn “double points” or some such, but will someone go to a Lincoln dealer service department for tires instead of their much cheaper local independent Tire Man…just to earn some points. No.

    It is sad the Ford/Lincoln Motor Company is wasting man power and money chasing these windmills…when investments in engineering and quality are so much more important.

  • avatar

    Stand alone stores for Lincoln…


    I know one place in Albuquerque that is a Lincoln/Volvo dealership. I’ve always assumed that if they weren’t part of a giant dealer conglomerate they never would have survived.

  • avatar
    87 Morgan

    This mandate will ultimately solve the problem for Ford on whether or not to continue with Lincoln. If you were a Ford/Lincoln dealer and were now being told you needed to build a new building somewhere else to sell Lincolns how could it take longer than 5 minutes for the dealer to do some quick math and come up with the only conclusion…..ugh, guys you can keep your Lincolns.

    It makes zero sense to construct a new building and service department for a brand that sells 200 units a year.

    • 0 avatar

      If I were in the market for a Mercedes, it wouldn’t offend me to see Nissans on the other side of the showroom. What would offend me is silly games with the sales manager or an incompetent service department. I have no problem shopping at a Ford-Lincoln, Chevrolet-Cadillac or Dodge-Chrysler dealership. A low end line at the same store as a high end one is traditional in automotive retailing. That a manufacturer’s marketing VP would think otherwise is proof he is delusional.

      • 0 avatar

        Having a separate building makes it easier to have a separate sales-culture.

        But the building is beside the point. Actual leadership which sets the tone and enforces standards is the hard part.

  • avatar

    Ford: “Keeping customers is much easier than trying to get conquest sales. Let’s do some kind of reward system, like hotels, or airlines.”

    Me (Lincoln MKZ owner): “I like cars.”

    Ford: “So…..Nautilus?”

    Me: “I said I like cars.”

    Ford: “Okay, bye.”

  • avatar

    I’m not going to buy a vehicle before I believe it’s necessary. Offering me an X% reward isn’t going to change that. I’m smart enough to realize than an X% discount on something I don’t really need leaves me (100-X)% poorer. When I do decide to buy, the brand that gets my money will have a reliable vehicle with the features I want at a price that, while not necessarily cheap, isn’t outrageously expensive. Then, it will be at least five years before anyone gets another opportunity to make a sale since I keep each of our three vehicles about fifteen years. (One of the hardest lessons I have had to learn is that, given how long I keep vehicles, it’s wiser to buy a well optioned model that will satisfy me for years than it is to save a few thousand dollars at the time of purchase.)

  • avatar
    PSX 5k Ultra Platinum Triple Black

    I have a loaded up 2013 Escape Titanium 4WD, which is the only vehicle I’ve ever kept long enough to pay off. I like it more than any other car I’ve owned in my 20 years of driving, I’ve had about 15 cars in my life, and the Escape isn’t great at any one thing, yet it does pretty much everything really well. It’s fun to drive, handles pretty well, kinda quick, looks good, great stereo and features, and it’s cheap to run. However, the Ford dealerships I’ve dealt with in the Midwest, and now the east coast are the worst of any dealership brand I’ve ever interacted with. In the Midwest I had a major accident, and the biggest dealership in Missouri did the most horrible job in repairing my car after it had $23,000 in damage (the car should have been totaled). Here on he east coast, a dealership did an even worse job repairing my cars failed wheel bearing. It took 6 months to get the damage they did to my Escape completely fixed. They broke the wheel hub, the axle (3 times), the rear differential, the transmission (all internal components had to be replaced due to a failure they caused), the cv joints and boots (twice each), and they forced a left front tie rod into the right front tie rod they replaced (only caught by another dealership at a later date). I complained to Ford corporate and they said they only warranty parts, not dealer service, so I had to take up with the dealership that damaged my car to fix the damage the did to my car. I like Ford, but I’ll never buy another Ford after dealing with the incredibly bad service departments.

  • avatar

    Drop Ford and keep Lincoln – margins are higher. Make F150 and Mustang Lincolns.

  • avatar

    On the serious note. Why do not adopt Tesla’s model of selling Lincolns online and factory direct. You order your exact specs/color/trim you want online and then it arrives directly to your home. If you need service – they pick up the car from your garage and give you loaner. Very 21st century and saves a lot of money. Service is done of course at Ford dealership but do you care?

    • 0 avatar

      Pretty much the way Genesis is sold in Canada. Order a test drive on the web – salesperson turns up at home or work with vehicle. If you decide to buy, a car from the central stock is dispatched if it isn’t available in the few they keep locally, and salesperson delivers to you personally. Same with service. A person arrives, picks up your car leaves the loaner they brought, and returns the car after service at the Hyundai dealer. No chahge for five years for service. No haggling on purchase price either, except on a trade. Too bad I wasn’t exactly bowled over by the G70 2.0t.

    • 0 avatar

      That is the way they want you to buy the Black Label versions and how they will handle service and repair if you do spring for the Black Label.

  • avatar

    There is a benefit to standalone dealerships in large markets I suppose, but there’s plenty of evidence that it’s not required. Our Benz dealer shares a showroom with Mazda, our BMW and Lincoln franchises are under the same roof along with Mitsubishi, and Audi and VW share a building with Subaru and Hyundai housed next door on the property. Even our Porsche dealer sells Subarus in a connected showroom. In every case, owners of the premium brands get benefits owners of the mainstream brands do not. It largely works fine. With loaners, pick and delivery service plus optional Black Label benefits, Lincoln owners already get treated better than most. I say let it be.

  • avatar

    “It was a big ‘aha’ moment for us.”
    If he really said this he should send his entire marketing staff off to redo Marketing 101 or just sack them.

  • avatar

    I don’t think a standalone building is the most important thing for Lincoln. What matters is the way the customer is treated by the sales and service department. Customers want an “experience” and they really like to buy their 10th car from the same person that sold them their 1st one. They appreciate having the same service adviser every time. The experience you receive at Toyota and Lexus dealers is very different, and it should be that way for Ford and Lincoln.

  • avatar

    The local Lincoln dealership used to be a Lincoln-Mercury, now they’re a Lincoln-Infiniti. The two buildings are separate but they share the same lot.

  • avatar

    Yeah, we couldn’t possibly have a $35k MKC customer forced to share dealership space with the plebes buying a $90K F450 Platinum or $75K GT500, could we?

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