Transcript Mile One Marketing D..

Mile One Marketing: 2005
and Beyond….
Dealer marketing budgets on the rise
Lower Sales, higher expenses
2003
Total New Vehicle Sales
2001
16.7 million units
16.8 million units
17.2 million units
$394,00
$345,000
$301,000
$512
$444
$387
+ 14.2%
Average ad expense/dealer
Ad expense/new vehicle
retailed
2002
+ 15.3 %
• In 2001, dealers benefited from OEMs promotion of 0% financing
• Car buyers came to expect hefty incentives, 0% interest loans, and bargain prices
• Dealer advertising expenditures increased 31% between 2001 and 2003
• New vehicles sales fell in 2002 and 2003
• Improving marketing effectiveness critical to increase sales and profits
Automotive News Article: “Higher costs squeeze dealer profits”, March 31, 2003. 2004 NADA Data, 2004 Automotive News
Market Data
What’s the Plan...
• Build the best relationships between Walker Avenue and the
dealerships.
• Provide the field with state of the art marketing strategies that
will flood the floor with qualified traffic.
• Create the best referral program for Mile One employees.
• Continue to brand the “Mile One” name through the corporate
website, The Baltimore Ravens, American Cancer Society,
and other opportunities.
The First Step…….
•
DMS Update
•
Focus on your most valuable current asset
- the customer base.
•
How usable is the data in Reynolds and each
stores CRM system?
•
Are your customer names spelled correctly?
•
Do you have their current addresses and
phone numbers on file?
•
What percentage of your database contains
duplicate records that distort your view of
market share and that cost you untold dollars
in wasted marketing efforts?
•
How are you addressing the new federal and
state Do Not Call mandates?
•
If just the thought of these questions makes
you uneasy, then the Marketing Team will
provide relief by delivering the power of current
and accurate information to Mile One’s
customer database. You can be sure you will
know your most valuable asset.
The First Step…….
•
DMS Update
•
Focus on your most valuable current asset
- the customer base.
•
How usable is the data in Reynolds and each
stores CRM system?
•
Are your customer names spelled correctly?
•
Do you have their current addresses and
phone numbers on file?
•
What percentage of your database contains
duplicate records that distort your view of
market share and that cost you untold dollars
in wasted marketing efforts?
•
How are you addressing the new federal and
state Do Not Call mandates?
•
If just the thought of these questions makes
you uneasy, then provide relief by delivering
the power of current and accurate information
to Mile One’s customer database. You can be
sure you know your most valuable asset.
•
The first step will be to extract customer
records from Reynolds, and also comparing
them to an Authentiquest database.
Authentiquest is a national consumer database
covering 90+ percent of the households in the
US. It contains the most up-to-date information
available on over 120 million households. You’ll
not only know the correct spelling of your
customer’s name, you’ll know their most current
address and phone numbers. If they are on the
Do Not Call list we will flag them as such in the
system!
•
The Marketing Team will make the most of the
customer records (sales and service histories)
by processing the records through a merge
service. If there are duplicate customer
numbers assigned to the same customer, it will
edit the information, whether sales or servicerelated, and automatically combine it under one
customer number. You lose no transactional
information. Duplicate mail deliveries and
communications to the same customer are
eliminated. The dealerships save mailing costs
and embarrassment. Everyone gains with one
unified set of records that tells the customer’s
story. That’s true value!
The Database Solution
•
The Marketing team will provide each dealership with a cost effective, fully
managed mail & email append service. This service is in compliance
with all federal and state privacy mandates, like the CAN SPAM Act! We will
give them the email addresses of their current customers.
•
So –the Marketing Department can focus on accurate customer information,
the most current customer information, and on knowing the most about the
customer. Your dealerships can then focus on results!
•
Can you imagine the day that a new incentive comes out at 9:00am on
Monday, a targeted web ad gets sent out to 2500 customers before lunch,
customers are being called in the afternoon, and they show up to buy a car in
the evening. All this before our competition has a chance to proof their
newspaper ad that won’t be seen for another 2 days! Well, start imagining.
Building the Marketing Machine
•
After we first attack the integrity of the main customer database……
•
Then I would visit and poll the dealerships on what works, what doesn’t work, what vendors (CRM, Lead
Generators and Management, Web Sites, F&I, Service Follow Up, etc.) they use. We will…..
•
Build a “Best Vendor Practices” piece that can be tied into corporate training.
•
We will then work with a small number of stores to build SUCCESS STORIES that will spread through
the Mile One family. This will encompass automated marketing to prospects, old sold customers,
service and parts customers, and lost sale leads.
•
Most of the dealerships use some type of call tracking (Who’s Calling, Call Bright, Call Source) software.
This is a good tool if used to its completion. Most stores, however, don’t use it that way. The Marketing
team will streamline this process and build processes for driving those customers back into the stores.
We will also introduce automated voicemail tracks (included in some of their packages already) to
develop personalized follow up calls per dealership group.
•
The Marketing team will know about new incentives when they come out and be able to proactively
advertise to all levels of the customer base (prospects, internet leads, phone ups, sold, orphans,
service, etc.). The dealerships will be notified what was sent and who was targeted through a bulletin
electronically sent from Walker Avenue.
Here are some ideas that we
could implement:
• Corporate wants to build the “brand label”
of Mile One. Dealerships just want to sell
cars. How about combining those into
the Mile One Web Portal. Think about a
key chain with many keys on it. Each
key represents a make of car……
•The keys could lead to the
stores websites
•
•The keys could lead to the
stores websites
•Mile One.com would be
the entry point but
dealerships could control
the leads if desired
•The keys could lead to the
stores websites
•Mile One.com would be
the entry point but
dealerships could control
the leads if desired
•..or the Marketing Team
could control the lead
until they hit showroom
We will develop a prospecting and follow
strategy that is second to none. We will have
a process for each type of “up”.
We will develop a prospecting and follow
strategy that is second to none. We will have
a process for each type of “up”.
The Marketing Team will be proactive in
driving customers into each dealership
thru campaigns that will reach potential
customers thru…
We will develop a prospecting and follow
strategy that is second to none. We will have
a process for each type of “up”.
The Marketing Team will be proactive in
driving customers into each dealership
thru campaigns that will reach potential
customers thru…
•Email
We will develop a prospecting and follow
strategy that is second to none. We will have
a process for each type of “up”.
The Marketing Team will be proactive in
driving customers into each dealership
thru campaigns that will reach potential
customers thru…
•Email
•Web Ads
We will develop a prospecting and follow
strategy that is second to none. We will have
a process for each type of “up”.
The Marketing Team will be proactive in
driving customers into each dealership
thru campaigns that will reach potential
customers thru…
•Email
•Web Ads
•Voicemail Telemarketing Campaigns
We will develop a prospecting and follow
strategy that is second to none. We will have
a process for each type of “up”.
The Marketing Team will be proactive in
driving customers into each dealership
thru campaigns that will reach potential
customers thru…
•Email
•Web Ads
•Voicemail Telemarketing Campaigns
•Targeted “specific” in-house direct mail with follow up calls
Marketing will develop process
templates for every entry point
for the dealerships
•Prospects
•Phone Ups
•Internet Leads
•Old Sold
•Orphan Owners
•Lost Sale
•Service & Parts Customers
Here is an example of a simple
template for a follow up letter
or email
Dear Mr. Fader,
We just wanted to take this moment to thank you for inquiring about the Ford
F150. We are already hard at work compiling the necessary information so that we
can get back to you as soon as possible with the pricing, specifications or any other
details you might need.
When it is convenient, we would also be happy to meet with you for a test drive. We
can answer any questions you may have about purchase or lease options; we can
even estimate the value of your trade. It is our pledge to you that we will do
everything we can to ensure that this becomes the most pleasant auto shopping
experience you have had.
Here at Heritage Ford, we specialize in finding the best vehicle to suit your
needs. With this in mind, if there are any other details or special requests that you
might have in addition to the information you have already given us, please don't
hesitate to call at 410-111-2222 or http://www.mileone.com.
We will speak with you soon.
Sincerely,
Otto Follow-up
Mile One Marketing will
develop and lead the best
“friends and family” type
referral program in our
industry!
Mile One Marketing will
develop and lead the best
“friends and family” type
referral program in our
industry!
•We will motivate the employees to buy in
with a two-tiered program
Mile One Marketing will
develop and lead the best
“friends and family” type
referral program in our
industry!
•We will motivate the employees to buy in
with a two-tiered program
1. Points program tied to cash, prizes, and gifts from marketing partners
Mile One Marketing will
develop and lead the best
“friends and family” type
referral program in our
industry!
•We will motivate the employees to buy in
with a two-tiered program
1. Points program tied to cash, prizes, and gifts from marketing partners
2. Public acknowledgement amongst piers in quarterly newsletters
So what are the
results?
Results
 Increases customer value in every department of the dealership
 Decreases advertising budgets of the dealership
 Annual increase in revenue of up to 10% when implemented with
an effective marketing, CRM, and business strategy
PRE-OWNED & NEW CAR SALES
• Increased sales
• Increased be-backs
• Increased CSI scores
• Increased average sales per
person
PARTS & SERVICE
• Increased service repair orders
• Increased service appointments
F&I
• Increased service contract sales
Value Of The Customer = Total In-House Marketing Strategy
Value of
Customer
Equals
$400k
Benefits of some dealerships that I have worked with:
•Increased sales by 32 units over previous month at dealership in Chillicothe,
Ohio
•Increased Be-Backs by 27% at Cadillac store in Detroit, Michigan
•Increased CSI scores from 67% to 91% at Pontiac store in Cleveland, Ohio
•Increased average sales per sales person from 8 to 11.5 units per month at
dealership in North Carolina
•Increased service repair orders by 25% by implementing automated service
follow up process
•Dealerships BDC is up 20 units per month at dealership in Raleigh, North
Carolina
•Reduced dealerships monthly ad spend from $45k per month to $25k per
month while maintaining market share at store in Ohio
What is it in for Mile One…
– More customers in the showroom leads to
more sales on the board
– Lower cost of advertising than sticking an ad
in the newspaper, on TV, or on the radio
– Higher CSI because we will be dealing with
more of our own customers
– Great teamwork between dealership groups
and Walker Avenue