Mitsubishi joins Fly Buys scheme

By DITA DE BONI

Mitsubishi Motors is the latest company to hitch its marketing strategy to Fly Buys.

The carmaker has signed up to be the sole national car brand on the Fly Buys roster of companies, meaning its customers can earn points for buying Mitsubishi cars or getting them serviced at affiliated service stops.

In the largely homogeneous car industry - where branding can be difficult to get across outside a circle of loyal enthusiasts - belonging to Fly Buys is a marketing masterstroke, according to John Leighton, Mitsubishi New Zealand managing director.

"Belonging gives us the opportunity to recognise our customer loyalty and give them tangible benefits," he says.

Mitsubishi has a second motive with Fly Buys, however.

It has had a tough time persuading Mitsubishi-owners to get their cars serviced at branded service stops - most take their vehicles to independent garage owners as they tend to charge lower hourly rates.

Mr Leighton says this should change when customers collect points for getting their vehicles attended to at the company's service stations, even if it is slightly more expensive.

He says the service component will affect Mitsubishi's bottom line more than new car buyers, who might want to earn a large amount of points.

But he says the company - which has around a 9 per cent market share at present - may be able to expand its share in the market using the loyalty scheme without cost-cutting.

Mitsubishi, which services mainly the private and small business markets, earned its place on the Fly Buys roster by pitching its marketing strategy and philosophy to Loyalty New Zealand, as did its competitors.

On winning its place with the loyalty scheme, the company signed an open-ended contract.

Merchants and dealers of goods and services pay a fee to Fly Buys to take part in the scheme.

Fly Buys managing director Alastair Hutchens says that although buying a car is not an everyday purchase, it represents a "significant opportunity in terms of points collection".

An advertising campaign that includesthe scheme's newest entrant will air in August.