Rick Case Honda in Davie Doubles Used Cars Sales in Just Five Months

Posted on May 2, 2012 by admin

In order to survive the past four years, the entire industry had to rethink the way it conducted business. Not only was customer traffic down but with the tsunami hitting Japan, inventory levels were at an all time low. However, while many dealerships were thinking about how to reduce expenses and executing aggressive scale downs, Rick Case Honda of Davie was changing its focus and using a radical new strategy to move up 5 places in its OEM rankings.

“We knew that our approach had to have a real benefit for our customers or we would not enjoy prolonged success” said Richard Bustillo, General Manager of Rick Case Honda who has been with the dealership since 2008. “We also knew that whatever we did had to produce these benefits without compromising the profitability of our store. Our retention rates and gross profit numbers were already good and we were already mining our own customer base. We just weren’t expanding it. I wasn’t satisfied because I saw an opportunity to do both.”

Like many dealerships, Rick Case Honda experimented with multiple vendor combinations trying to find a winning formula but after investing in conventional email blasts, mailers, and service reminders that targeted current customers, they realized that they were not getting a satisfactory return on their investment. This led Mr. Bustillo to make a bold decision. After seeking the counsel of several of America’s most successful dealerships, he decided simplify his “multi-vendor”, multi-department approach and focus on a single, integrated marketing strategy. The results, he says, were staggering!

In November of 2011, Mr. Bustillo teamed up with Budd Blackburn, owner of Team Velocity and brought a different kind of marketing company onboard with Rick Case Honda. Unlike other marketing companies that specialize in a single aspect of marketing, Mr. Blackburn’s company uses a 360 degree sales and service marketing program designed to Attract, Sell, Service and Retain customers. This process helps Richard and his team to minimize the wasteful spending and confusing messages that often occur when multiple departments independently market to the same customer and create a consistent, visually engaging dealership experience for all Rick Case Honda customers.

This strategy revolves around conducting comprehensive research that targets the right customers, thus preventing the dealership from sending irrelevant coupons and offers to the wrong consumers. This not only saves the dealership thousands of dollars each month but ensures that every dollar spent results in increased profits and market share.

“We no longer look at our customers as “Sales Customers” or “Service Customers”, said Bustillo, “they are all Rick Case Honda customers. Unifying our efforts allowed us to get very good at doing one thing many times versus doing several things one time.”

In addition to utilizing the right marketing company and targeting the right customers, Mr. Bustillo holds monthly kick off meetings and makes sure all of the staff, from the porters to the receptionists, is trained on the program. Rick Case Honda in Davie also has their store covered in vibrant, point-of-sale banners, brochures, and hang tags that constantly draw attention to the dealership’s current campaign. Everywhere a customer turns there is something pitching service sales or encouraging them to exchange their current vehicle for a new one. Standing amidst a sea of white, blue, and black Vehicle Xchange Program merchandise, Bustillo quotes, “Like Grant Cardone says, if you want massive results, you need to take massive action.”

“We began to not only market to our active customer base but also market to sold, lost and conquest customers as well,” he explains. When putting our ads together, we placed multiple offers for both the sales and service department and started to see results immediately. “We also implemented a dealership-wide program that had real benefits to the consumer. This gave lost customers and new customers a number of compelling reasons to come into our dealership and take advantage of everything we have to offer.”

In just five months, Rick Case Honda of Davie has experienced tremendous success with Team Velocity’s integrated marketing strategy. Their increase in new car sales volume has put them in the top five for Honda. Overall used car sales are up 50%. Sales from the service drive are up over 60% (from 45 to 105 units per month) and total RO counts are up by over 30%, when compared to the same month last year. “We were servicing an average of 3,000 customers monthly with an average spend of $350 per RO. Since November, we have increased our active customer base by over 1,200 customers. At $350 per RO, that is what I call ROI!” says Richard Bustillo enthusiastically. “When you factor in the lift our used car department has received from our increase in low mileage trade-ins and the $1,300 RO associated with reconditioning those vehicles to make them CPO units, this gets really exciting.”

Rick Case Honda of Davie’s new cost-efficient sales and service strategy has helped to attract, sell, and retain customers in every department of the dealership. New vehicle sales, pre-owned vehicle sales, F&I sales and service sales are all up and in addition to all of the obvious benefits that come with such success, Rick Case Honda is experiencing higher CSI scores and adding over 200 positive reviews to their social media efforts every month.

When asked to comment on his recent success, Richard responded, “It really came down to 2 choices. We could continue with our non-integrated solutions where 5 units of effort equaled 5 different results or we could go with an integrated solution that allowed us to invest 1 unit of effort and get exponential returns. We could spend our time juggling to make each individual month or we could minimize distractions and spend our time focused on building the future. We chose option number 2.”

Time will tell if integration really is the future of automotive marketing but it’s hard to argue with the numbers today. Based on the results Richard Bustillo and his team are experiencing with Team Velocity, the future looks very promising for Rick Case Honda of Davie.

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Up 24% in Sales, Red McCombs Ford Kicks-off 2012 by Finishing #1 in San Antonio

Posted on March 21, 2012 by admin

Red McCombs Ford is no stranger to success. A member of Texas’ premier automotive group, the Red McCombs Automotive Family, Red McCombs Ford started off the year by finishing No. 1 in the San Antonio market it serves. While the dealership had been experiencing a positive trend throughout 2011, averaging a 10 percent increase in sales over 2010, a shift in their marketing strategy in late November had the dealership outpacing itself for both December and January with a 24 percent increase in sales over the same period the previous year – while Ford was up just 5 percent nationally for January. Implementing a new targeted and digital marketing strategy across multiple mediums to attract, sell, service and retain customers has helped jump-start McCombs’ sales for 2012.

“Our sales are up 24 percent over the same period last year, but we’re actually up 160 percent within our top-selling zip codes because we took steps to more clearly define our audience within our primary market,” says Shawn Barry, general manager of the Red McCombs Ford store.

Like many dealers in large metro markets, Red McCombs faced the ongoing challenge of how to reach the right customers with the right message, bring those customers into their showroom and service bays, and keep them coming back again and again. Dealers often struggle to deliver an affordable and consistent message to the right consumers in their local market without spending excessive marketing dollars soliciting the masses that are not in the market for the vehicles they sell. McCombs Ford sought to reevaluate their marketing strategy and more clearly define their ideal local market – within two months’ time they are seeing improved results.

McCombs Ford began with a comprehensive five-year historical analysis of their sales and service transactions to determine customer trends. Those findings were then compared to leading third-party and industry data to establish consumer patterns within the local market. The results enabled McCombs to identify vehicle owners with the greatest probability of buying or servicing with their dealership, as well as identify same-brand owners who had never visited red McCombs Ford, and off brand owners with a historical pattern of crossing over to Ford.

Once McCombs had more clearly defined their market, they implemented a comprehensive targeted and digital marketing strategy using variable direct mail and email campaigns that consistently speak to customers throughout the 60 month life cycle of their vehicle with custom messaging that includes: a thank you and welcome message for recent purchasers, maintenance reminders for newer vehicles not yet in-equity but that may be due for recommended maintenance, and ongoing targeted mail and email sales communications to customers in an equity position. Using high end creative campaigns, McCombs promotes its best sales offers with custom service offers that reflect the service status of the customer’s vehicle. For example, active service customers who routinely come in for service receive a $34.95 “The Works Oil Change” coupon, but customers who are categorized as lost, or who do not regularly service with McCombs, receive the same offer but for $29.95 to encourage them to come back.

McCombs also aggressively targets conquest service customers within their primary marketing area who own Fords but did not buy from them. This is unique because most dealers use the manufacturer’s service marketing program which often limits a dealer to only communicate with customers that have purchased directly from their store, but also limits the dealer from contacting numerous conquest opportunities within their market. If a dealer only has 30 percent market share, they are essentially missing but on an additional 70 percent of the area’s service market. McCombs Ford recognized the opportunity to broaden its service marketing program with conquest and has greatly expanded their reach of potential service customers.

Another component to the McCombs strategy is that every outbound targeted mail and email campaign directs customers to an online Campaign Conversion Site that not only displays the featured promotions of the mail or email campaign they have just received, but also shows them every sales and service offer that McCombs is currently running. If a customer is not in the market for the specific offers they receive in the mail or by email, they can check the McCombs’ campaign site, www.SaFordOffers.com, for other available offers.

“This site is already proving to be invaluable. It looks incredibly professional, it ties in with all our sales and service promotions and we’ve seen an increase in the customer traffic printing coupons from the site,” says Barry. “Plus it’s completely low maintenance for us because it’s updated every month by our marketing company.”

In addition to their targeted and digital campaigns, McCombs also recently implemented a unique strategy that specifically targets vehicle sales within their service lanes. This program, the “Vehicle exchange Program” is integrated across McCombs’ web site, campaign conversion site, the showroom and service lanes, as well as their direct mail. “The key to this program is the confirmation call that our call center places to confirm the customer’s service appointment. If a customer is in an equity position, our call center informs them that they are eligible to upgrade into a new vehicle for the same payment as their old vehicle,” explains Barry. “So rather than wait and hope that the customer will buy from us when they’re ready, we proactively try to sell the customers in service before they enter the market and shop our competition.”

“The best customer that any dealer can find is one they already have because customers who have an active service relationship with a dealership are seven times more likely to purchase with that dealership,” says Budd Blackburn, owner of Team Velocity marketing, the company that Red McCombs Ford uses for their sales and service marketing.

An added benefit to sales and service marketing strategy is a healthier trade pattern. “We’ve seen a noticeable improvement in our trade pattern. Since switching strategies we’ve brought in 37 percent more late model trades, 2008s-2011s, compared to all of last year where we brought in less than 10 percent late model trades – this is ultimately a big savings for us, not having to overpay at auction,” says Barry.

To measure the effectiveness of all their marketing strategies and ensure quality customer care, Red McCombs Ford uses a call-monitoring system to track their advertising, employees, and how their customers are treated by listening to every call that comes into their dealership. They receive daily, weekly and monthly reports that enables them to see which ad campaigns generate the best response and preempt any potential customer concerns before they escalate – which improves their overall CSI and helps create lifelong satisfied customers.

In A Nutshell

Up 24% in Sales, Red McCombs Ford Kicks-off 2012 by Finishing #1 in San Antonio – want Red McCombs Ford results?

  • Define your ideal local market by finding customers and prospects with the highest statistical probability of buying and/or servicing with your dealership now and in the future.
  • Implement an integrated targeted and digital marketing strategy across multiple mediums that promote all your profit centers: new, used, finance, service and parts.
  • Create dynamic, cohesive campaigns that consistently speak to your customers throughout the 60-month lifecycle of their vehicle.
  • Consistently target in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands they sell.
  • Establish a sales-in-service program to sell vehicles from your own service bays for your in-equity customers before they shop the competition.
  • Monitor inbound calls so you know what ads are generating better response rates and pre-empt CSI issues before they escalate.

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Subaru of Keene Ends 2011 with Record-Breaking Sales Month, and Outpaces Subaru Nationally for the Year

Posted on March 21, 2012 by admin

Kicking-off 2012 by celebrating the Grand Opening of their new state-of-the-art store, Subaru of Keene ended 2011 with a bang – selling 135 new vehicles, beating their previous 2010 December sales by fifty new vehicles.

A member of the Fenton Family of dealerships serving the greater New Hampshire, Vermont, Massachusetts, Maine, and local Canadian markets, Subaru of Keene saw a steady increase in sales for 2011, averaging an eight percent increase over 2010, and as much as a 25 percent increase for the month of May alone, while Subaru was up one percent nationally for the year.

A shift in their marketing strategy early in 2011 brought steady improvement to Keene’s sales and service departments throughout 2011 and has enabled them to attract, sell, service and retain more customers for less cost while positively affecting all their profit centers: new, used, finance, service and parts.

Like many dealers, Subaru of Keene faced the ongoing challenge of how to reach the right customers with the right message, bring those customers into their showroom and service bays, and keep them coming back again and again. Dealers often struggle to deliver an affordable consistent message to their primary marketing area without also having to spend a lot of money soliciting the greater population who are not in the market for the vehicles they sell. Thus, Keene’s unique multi-market New England region prompted them to reevaluate and more clearly define their primary marketing area.

Keene began with a comprehensive five-year historical analysis of their sales and service transactions to determine customer trends. Those findings were then compared to leading third-party and industry data to establish consumer patterns within the local market. The results enabled Keene to identify vehicle owners with the greatest probability of buying or servicing with their dealership, as well as identify same-brand owners who had never visited Subaru of Keene, and off-brand owners with a historical pattern of crossing over to Subaru.

“Instead of spending advertising dollars to reach everyone throughout the New Hampshire, Vermont, Massachusetts and Maine markets we serve, we can now target ready Subaru buyers and speak to them consistently,” says Mike Perry, General Manager for Subaru of Keene. “Not only is this more effective marketing to the customer, it’s also more cost effective for us.”

After defining their ideal market, Keene implemented a comprehensive targeted and digital marketing strategy using variable direct mail and email campaigns that consistently speak to customers throughout the 60-month life cycle of their vehicle with custom messaging that includes a thank you and welcome message for recent purchasers, maintenance reminders for newer vehicles not yet in-equity but that may be due for recommended maintenance, and ongoing targeted mail and email sales communications to customers in an equity position. Using high-end creative campaigns, Keene promotes its best sales offers with combination messaging that always includes relevant service offers that reflect the status of the customer’s vehicle with the dealership. For example, active service customers who routinely come in for service receive a $19.95 oil change coupon, but customers who are categorized as lost, or who do not regularly service with Keene, receive a coupon for a $14.95 oil change to encourage them to back.

“We’ve serviced 510 more vehicles this year than in 2010,” says Perry. “We actually no longer use the manufacturer’s service program and rely solely on our combination sales and service marketing strategy to target the right customers – it seems to be working. Our active customer database has increased by 322 customers since we started on the program.”

“Active customers are the lifeline of any dealership. Active customers are loyal and frequent and active customers are seven times more likely to buy with the dealership they service with,” says Budd Blackburn, owner of www.TeamVelocityMarketing.com, the targeted and digital marketing company that Subaru of Keene uses for their marketing strategy.

Healthier trade patterns have also emerged as a result of their steady trade-in promotions like their Express Trade Program and BuyBack Vehicle Purchase Program. Previously, Keene’s top trades were older models. Today their dominant trade-ins are 2008, 2007 and 2006 models, helping their used car department and providing a much better return on resale – plus they buy fewer vehicles at auction which saves them money.

In-store merchandising is also an important component of Keene’s strategy. Each month the store displays point-of-sale materials throughout the dealership that reflects their current monthly campaign. If a customer happens to walk in without having received anything via mail or email, they are immediately aware that there is an event taking place at the dealership and that they came to the right place at the right time.

“The consistency of this strategy is very effective. Everything ties together, it’s professional, it builds our brand – it just makes sense,” says Mark Carey, Internet Manager for the Subaru of Keene store. “There’s no more confusion over what programs and promotions are running each month. From the mail, email and in-store merchandising – the customers know what they’re getting and that’s important,” adds Carey.

In A Nutshell

Subaru of Keene Ends 2011 with Record-Breaking Sales Month, and Outpaces Subaru Nationally by 7% for the Year

  • Conduct comprehensive market research to determine their perfect primary marketing area and identify ready in-market consumers with the greatest statistical probability of purchasing or servicing with their store.
  • Implement a targeted and digital marketing strategy using variable direct mail and email that contain custom sales and service messaging relevant to a vehicle’s service status with the dealership.
  • Consistently speak to in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands they sell.
  • Successfully attract, sell, service and retain more customers for less cost while positively promoting all their profit centers: new, used, finance, service and parts.
  • Work with an established targeted and digital marketing like www.TeamVelocityMarketing.com to implement an integrated strategy that works for your dealership.

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The Top 12 Companies to Watch in 2012

Posted on January 30, 2012 by admin

The Top 12 Companies to Watch in 2012

Twelve Hot Digital Companies that are Helping Dealers Dramatically Improve Their Profitability

Over the last three years, as a result of the recession, our industry has experienced some growing pains. Just as demand began to rise, the industry’s economic woes were met with the wrath of Mother Nature when the earthquake and tsunami hit Japan, taking a toll on the production plants that feed the inventories of dealerships across the country. Despite the difficulties, most dealers have weathered the storm, cut costs and increased efficiencies to stay afloat. The best dealers have remained strong and are now benefiting from increased demand, revenue and profits with leaner organizations that are enjoying the newfound demand in the recovering market. After years of playing defense, signs of a recovering economy are motivating many of the top dealers to start playing offense, and it’s paying off in record profits for 2011 – setting the stage for a big 2012.

The most profitable dealers are getting more aggressive in 2012 and are utilizing innovative digital strategies to attract, sell, service and retain more of their customers in a way that is more profitable. Many of these dealers have either created new technologies or utilized other companies’ technologies to improve their business. This feature showcases the Top 12 Companies in 2012 that are helping dealers increase their profits by driving down costs and driving up revenue.

In this feature you will learn about marketing companies combining the power of traditional and digital marketing to deliver a consistent message through all tiers of marketing, including mobile and social media marketing strategies, Search Engine Marketing (SEM) and Video Search Engine Optimization (VSEO). You will also learn about group buying services that are dealer friendly, ways to use an iPad to increase your dealership’s closing ratio and average gross profit, and CSI and retention strategies that increase sales and service loyalty and frequency. This article also profiles companies that help dealers monitor all their advertising, as well as their customer service practices via the phone. This is done throughout all departments of the dealership to help management improve upon best practices and close more deals.

Chrome

Since most consumers use the Internet to research and shop for vehicles, now more than ever it is essential for the auto industry to provide accurate and timely information across all segments of the industry from OEMs and lenders to retail dealers and industry solution providers. Nothing is more detrimental than inaccurate data. Whether it’s incorrect financing terms or vehicle features and pricing, bad information does not sit well with consumers, and tips the “reliability scale” unfavorably for an industry that has historically struggled to improve its reputation for honest dealings, reliability and transparency.

Recently, two leading and highly reputable data service providers announced they will be joining forces to provide unparalleled industry leading data solutions to the automotive market: Chrome Systems Inc., a DealerTrack company, and Autodata Solutions, Inc., a division of

Internet Brands.

Chrome Data Solutions’ mission is to be the best-in-class automotive content provider in North America with the resources and vision to grow in the global market.

Both Autodata and Chrome Systems have an established trusted legacy of more than two decades of delivering high-quality offerings to all segments of the automotive industry. The establishment of the 50/50 joint venture will leverage the best assets of both organizations to provide the automotive retail industry – including Internet portals, OEMs, lenders, dealers and solution providers – a one-stop-shop for vehicle data and content so customers reach their growth and profitability goals even faster.

The new entity will have expanded alternatives and a wider selection of services and content to choose from. It will provide a broad spectrum of vehicle data and content related offerings ranging from syndicated commercial off-the-shelf products for automotive retailers to custom design-and-build engagements for large enterprise clients, while spurring future automotive data innovations and offerings. The timing of this joint venture could not be better as dealers are increasingly pressing their suppliers to deploy more content-rich online services to entice consumers and get highly qualified buyers.

Greg Perrier of Autodata will be the Chief Executive Officer for Chrome Data Solutions. The current senior leadership teams of Autodata and Chrome will continue in their leadership roles, and will report directly to Perrier.

Car-mercial

Since more than 90 percent of car buyers use search engines to shop for vehicles, dealers and car companies are spending a lot of money on Search Engine Marketing (SEM). This allows them to appear on top of the first-page search results for the most popular phrases customers are looking for on search engines like Google, Yahoo and Bing. To save money, many successful dealers have invested in SEO – Search Engine Optimization, a fancy phrase for the process of trying to appear on top of the search results for free. In the early days, this was a lot easier when there weren’t a lot of manufacturers, dealers and third-party lead providers competing for the top 10 search results for popular phrases like “New York Honda.” Now-a-days, most dealers realize that appearing on top of Page One of Google for popular search phrases can allow you to siphon the demand out of the market at the very point when the customer wants to buy. This has caused a bidding war for top search phrases and a lot of dealer investment to optimize their Websites to appear for free.

A big break came when Google announced that it would give video search results 55x the search authority over text, because customers prefer video over text more than half the time. The first company to recognize this opportunity was Car-mercial, the pioneers of Video Search Engine Optimization (VSEO), and that is why they are a Top 12 Company to watch. In short,

Car-mercial helps dealers appear on top of the search engines with positive videos that promote their dealership and the vehicles they sell. Through VSEO, Car-mercial dealers dominate the search results with positive videos while also removing third-party lead providers and competing dealers from the most important Page One rankings. These videos also protect and promote their positive reputation so customers looking for a car in their market find videos that educate them about the benefits of doing business with the dealership along with attractive offers that drive traffic to their Website, phone and showroom. “We call it ‘targeted TV’ because we deliver targeted videos directly to customers who are actively searching for the car that the video is about,” said Karry Moore, co-owner of Car-mercial.com.

Team Velocity Marketing

Since the majority of consumers shop online and are being divided among hundreds of television and radio stations, the value of traditional marketing has dramatically decreased in recent years, causing dealers to seek more effective ways to attract more customers for less cost. Team Velocity Marketing is one of the Top 12 because many of the top dealers are using their new 360 Sales & Service Marketing system to attract, sell and service more customers for less cost than traditional mass marketing.

Team Velocity’s system helps dealers identify their “Perfect Prospects,” which they define as those consumers who have the highest statistical probability of buying and servicing now and in the future, thus generating the most lifetime revenue and return on a dealer advertising investment. Once a dealer identifies perfect prospects within their market each quarter, they implement an integrated campaign through search marketing, email, text, calls and direct mail with custom offers that relate exactly to the customer’s needs at that moment, while also promoting all of the dealership’s profit centers: new, used, finance, service and parts. These perfect prospects receive “perfect offers” based on where they are in the ownership cycle of their vehicle, whether they are eligible to upgrade into a new vehicle for the same payment, need a major service, or their warranty is about to expire. Customers are driven to a campaign

Website that provides more information on the offers, captures their e-mail and drives them to call and visit the dealership. When customers arrive at the dealership, the POS merchandising validates all the marketing messaging they have received up to that point with posters, hang tags, table toppers and window clings. After they take delivery, Team Velocity communicates with the customer through a 360 communication process that starts with “Thank You for Buying” and continues through service reminders, sales promotions, lease renewals, equity alerts and custom offers that bring customers back more often to spend more money. The company has helped their dealers increase market share, profits, CSI and loyalty while also experiencing over 400 percent growth themselves. “We had four consecutive record-breaking months in a row this year, our sales are up 45 percent year to date, and we’ve moved into the top 20 for Hyundai dealers nationally” said Roosevelt May, General Manager of Huffines Hyundai of Plano, Texas.

OfferLogix

Car buying today is much easier than it was 10 years ago, and information that was once only available to the dealer is now easily accessible to consumers on the Web. Statistics show that in 90 percent of car deals, financing is involved and the lowest possible payment is the customer’s goal. The ability to find the right car with the preferred options and knowing what is a fair deal on that car is within easy reach for consumers. With a little research, consumers can figure out what the dealer paid for the car, as well as any other rebates and specials that apply. Even with all of this information, for the customer, it all comes down to the monthly payment.

Recognizing this, dealers are implementing the latest technology and services to provide consumers with information in a format they understand. Whereas most new car dealers advertise payments on their Websites, they are usually accompanied with small print, relate to a specific vehicle, and are attached a certain MSRP.

OfferLogix is the pioneer and premier provider of dynamic lease and loan payment advertising for online and mobile applications and works with many different companies to deliver this functionality. With proprietary technology and a unique Web service, they automatically calculate each night on all qualifying inventory and all possible lease and loan payments, with proper legal disclosures, based on a dealer’s lender guidelines.

Dealers must eliminate the confusion, inaccuracy and disconnects that exist between the vehicle, the customer and the monthly payment. Solutions that provide accurate pricing and budget information will make it easier for consumers to make educated buying decisions.

Dealers can advertise accurate payments on inventory, vehicle listings, vehicle detail pages, mobile applications from a VIN or QR Code Scans, as well as offer “search by payment” and show captive finance programs for inventory – all dramatically increasing click-thru rates and leading to more sales.

Dealers also integrate this technology into their mobile apps, with some dealers allowing customers to use their smartphones to scan a vehicle’s unique serial number or a bar code on the window, giving the customer immediate price and payments, which shows transparency in the process and saves time.

SocialDealer

Facebook alone has more than 800 million users who spend more time online than on any other Website in history. Since the primary goal of marketing is to be where consumers are, it would be a critical error not to have a strong presence on the social networks. Dealers cannot take their time catching up with this shift in consumer behavior as they did with the Internet.

Dealers can’t just simply subscribe to Facebook, Twitter, YouTube, and other social media outlets and think that is an effective social media strategy. Dealers are using social media networks like Facebook to attract, sell and service more customers by connecting with them online and communicating with them for free. Some of the best dealers have built a network of hundreds of social media sites that enable them to promote all their profit centers to thousands of customers for free.

Social Dealer’s social marketing platform helps dealers create, distribute, manage and monitor their entire social media strategy and reputation through one easy-to-use tool. By increasing their social reach, dealers increase the number of prospects they can market to with promotions and offers that drive traffic, sales and service revenue. When handled properly, social media is a free channel of communication that can get better response rates than traditional media, but when handled poorly, it can generate a lot of negative response.

Dealers are using Social Dealer to communicate with their customers in real-time, targeting in-market prospects, attracting new talent and leveraging their employees’ social media networks to communicate with their friends and family as well. The average person has 180 friends online and if a dealership has 100 employees they can reach 18,000 people for free.

The only problem is that dealers don’t have the resources to have dedicated staff manage multiple social sites, manually post content and monitor all the opportunities to sell when they arise. That is why dealers are leveraging Social Dealer’s automated system to distribute, manage and monitor content and to receive alerts whenever someone interacts with one of their social sites. “The system allows a dealer to automate what a team of 20 dedicated people could not do,” said Phil Penton from Social Dealer.

GroupCars

One of the biggest complaints car buyers have is the hassle of buying a car. One of the biggest complaints dealers have is the high cost of low-quality leads with low-closing ratios and gross profits. GroupCars’ new dealership marketing system helps customers shop on their cell phones and the Web with the help of a trusted auto advocate who schedules appointments that have up to 50 percent closing ratios with certified dealers exclusively.

GroupCars works with media companies and affinity groups to provide a world-class buying program that directs them to certified dealers who agree to treat them right, rather than shot-gunning the same lead to multiple dealers which results in the same old hassle for customers and dealers being limited to a price tag only. GroupCars gives certified dealers exclusive access to in-market customers who are looking for an easier way to buy a vehicle for a fair price without the hassle. One of the things that customers love about GroupCars is their top-rated patent-pending auto mobile app,

CarFactor, because it helps them shop and buy from the palm of their hand. CarFactor is being rebranded as the GroupCars app and it has enhanced features including a patent-pending scanner that can deliver valuable information on any new car from the bar code on the MSRP.

How it Works:

1. The customer uses the mobile app or Website to research and select their vehicle.

2. The dedicated phone center advocate schedules an appointment for the customer to meet with a program manager at a participating dealership.

3. Upon arrival to the dealership, the customer checks in and gets the fair price from the designated program manager who uses the GroupCars mobile app to get the program prices on a vehicle in stock.

The process delivers a hassle-free 60-minute purchase experience that customers love so they are more likely to spend more, return more and refer more. Dealers love the program because they get exclusive access to high quality appointments that have a high-closing ratio at a fair price and gross profit.

IntellaCar

One of the reasons Apple is one of the most profitable companies in the world is the experience they create in their innovative retail stores where their self-described “geniuses” are available to answer any question you have, and if they can’t deliver it off the top of their head they are a few clicks away from the right answer on their iPad. Unfortunately, car buyers are using these iPads and other digital shopping tools on the Internet and their  phones before they visit the dealership and too often they know more about the product and pricing than the salesperson they are dealing with – let’s just say that this does not make them look as smart as the geniuses in the Apple store.

One of today’s growing challenges for dealers is the increasing knowledge gap between customers with extensive information and high expectations, and sales personnel who are often not up to speed with facts about the latest and greatest technology in the vehicles they are selling. To make matters worse, the high turnover of sales staff make it even harder for dealers to keep their sales teams up to date. Wouldn’t it be great if there was an app for that?

Well, IntellaCar has made it into the Top 12 this year because they are turning product knowledge dummies into innovative geniuses who may not have all the answers but they know where to get them – on IntellaCar’s iPad sales tool. IntellaCar is a mobile sales platform built to equip sales consultants with easy to use iPad tools that assists them throughout the sales process by helping them gather customer information, fact find, select and present the right vehicle based on a customer’s needs.

The dealers who are using Intellacar’s new iPad sales tool are touting improved closing ratios, average gross profits, CSI, and claim that customers love the new, more innovative way to quickly access accurate information at the dealership. I must say that when you walk into a store and the sales reps are actively using iPads to educate customers it’s impressive, just like the Apple store experience.

BusinessRater

Dealers spend a lot of money on advertising to build their brand and, unfortunately, a lot of customers who search for the dealerships name online find negative reviews that destroy their reputation with one click of the mouse. Although that one review does not represent the opinion of most of the dealer’s satisfied customers, it unfortunately can appear that way to consumers who read negative reviews.

The reason why BusinessRater.com is one of the Top 12 Companies to watch is because they are giving businesses, including car dealers, a plan, process and tools to help them deliver a better customer experience that will improve their sales and service reviews and reputation online while also giving them reports on what advertising is working best.

BusinessRater.com certifies dealers who agree to invite their customers to tell them how they can deliver a 5-Star experience. Certified dealers use POS merchandising that says, “Help us give you 5-Star service and Win a Free Car by filling out a survey that helps us serve you better.” After customers complete the survey and review, management is alerted on their cell phone so they can immediately thank the customer and address any issues they may have before the customer leaves the dealer. If it is a 5-Stars review, it is immediately syndicated on the dealer’s Website and social networks, and is optimized to appear on top of the search engines like Google and Yahoo for many of the most popular search phrases that consumers use to shop for a car. If a customer indicates they did not receive a 5-Star experience, management is alerted to can make things right before it becomes a CSI issue. They have a 10-day grace period to address any issues before the review is public.

Since most customers are happy, this process results in a lot of positive reviews and consumer feedback reflecting a great online reputation. And to prevent fraudulent reviews, BusinessRater.com uses a patent-pending filter process that confirms the validity of every customer review to ensure it is credible before it is published. If a review fails the process it is permanently filtered in the system.

As a result, dealers attract more customers who trust these reviews that appear on top of search results for your dealership name and the most popular search phrases consumers use to shop for cars, service and financing. They also enjoy a higher closing ratio and average gross because of the trust that results from an endorsement from other customers who live in their neighborhoods.

DrivingLoyalty.com

How to keep a first-time purchaser and turn them into a lifelong customer that returns more, spends more and refers more is often the elusive question on every dealers mind, and if it’s not, it should be.

DrivingLoyalty.com helps dealers identify and contact the best prospects in their database who can upgrade into the same car for the same or lower payment and alerts the customer by e-mail, text, mail and phone to bring them into the dealership. Here they can view a Vehicle Analysis that shows them the advantages of upgrading into a new or pre-owned vehicle with more features, better gas mileage, lower payment and overall cost of ownership.

Customers receive a print and online monthly vehicle statement that provides alerts about everything their vehicle needs and qualifies for including recalls, service reminders, equity alerts, lease renewals and upgrade offers that enable them to get a new car for the same or lower payment.

Participating dealers have increased their loyalty and frequency of sales to their customer base for higher gross profits because they bring customers into their dealership before they shop. This also helps them source better pre-owned vehicles for less cost than at auction, and all of those used cars generate service revenue as part of their reconditioning process. As a result, dealers using DrivingLoyalty.com have increased their new and used vehicle sales and profits, while also increasing service revenue and retention.

Tier 10 Marketing

Dealers spend too much money working with too many vendors on disconnected ad campaigns that are often confusing for customers and dealership staff. TV and radio commercials tout one message, and newspaper, direct mail and e-mails claim another, yet none of the above can be found on a dealership’s Website or showroom floor.

Many of the most successful dealers in the country – Penske, Paragon, Hendrick and others – are working with Tier 10 Marketing to implement integrated marketing strategies that promote all of their profit centers – new, used, finance, service and parts – with a consistent message delivered through all 10 tiers of marketing: traditional, digital, mobile, social, reputation management, publicity, targeted direct mail, niche marketing, merchandising and retention.

One of Tier 10’s most impressive accomplishments is that they are the ad agency that made Paragon Automotive No. 1 in every brand they represent – Honda, Acura and Certified Pre-Owned vehicles. When Paragon began working with Tier 10, their best month was 36th in the country with Acura, and 17th with Honda. Within nine months, both stores were No. 1 in combined new and CPO sales in the country and have remained on top for over a year, while also setting records for profitability, CSI and customer loyalty. “We were spending way too much money with 15 different companies who had completely different strategies, messages, look and feel, and now we work with one company who ties it all together with one integrated approach. I spend less, make more and it works,” said Brian Benstock, co-owner of Paragon

Honda & Acura in Queens, NY. As a top 20 dealer, Paragon was far from broken, but Teddy Nissan opened after Ted Bessen bought the store when it was only selling 28 cars a month in 2009. Six months later, Teddy was selling more than 250 cars a month and had already paid off the initial investment of the store. One thing is for sure, dealers who have an integrated marketing strategy that connects their traditional advertising with the other nine tiers can spend less money to attract, sell and retain more customers.

DealerApp Vantage

More than 93 percent of Americans have a mobile phone and many of the best dealers are giving their customers free mobile apps to improve their customer satisfaction and loyalty. Today, there is an app for almost everything from counting down the minutes in each day to tracking favorite sports teams and everything in between. DealerApp Vantage is a Top 12 Company to watch because they are the creators of the most popular automotive mobile application that dealers use to retain and resell their customers for very little money.

Although DealerAppVantage.com works with many of  the leading dealerships in the world, including Longo Toyota (No. 1 Toyota dealer), JM Lexus (No. 1 Lexus Dealer), Paragon Honda & Acura (No. 1 Honda & Acura dealer), and others, they are not known by consumers because they customize their application under the dealer’s brand.

Dealers give their customers a free auto app that is branded for their dealership and is a unique benefit that differentiates them from their competitors. DealerApp Vantage has become popular because it includes a lot of features that customers and dealers both love. The customers love that they have an easy-to-use mobile app that includes Roadside Assistance, Parking Meter Alert, a Car-finder to help customers find their cars in crowded parking lots and a Gas Savings Navigator that helps customers find the lowest-priced gas station. Dealers love the app because it gives them a free channel to market to customers with service reminders and sales promotions and it gives customers a faster and easier way to contact their dealer, schedule service, buy parts, get vehicle quotes, or view dealer inventory and specials. Dealers have had a lot of success with mobile marketing because a lot more customers read their text and pop-up messages on their phone rather than read e-mails.

Unlike most apps, DealerApp Vantage refrains from 3rd party advertising on your app – no competitor pop-up ads – and they customize the app to fit your dealership’s particular brand so your app doesn’t look like anyone else’s. Most dealers are giving these free apps to all their customers in sales and service – and some are even giving them to prospects – as a gift, because it gives them a free channel to send special offers in the future.

CallRevu

“The phone is a blind spot in the dealership where customers and profits are lost in every department, every hour, of every business day. What is the inevitable next move for a customer who can’t get through or get answers – they call the competition and buy elsewhere,” said Chip King, owner of CallRevu and the publisher of the 2011 Phone Performance Report that reveals trends that were measured by listening to more than 1 million inbound dealership calls. According to the report, a third of all calls are forwarded to voice mail, and are too often not checked or followed up with. “When we first started measuring, we found more than 30 percent of our callers were going to voice mail and hanging up on hold” Steve Risso, President of Teddy Nissan. “We made the corrections and now less than 9 percent go to voice mail

– it was huge!”

CallRevu is one of the Top 12 Companies to watch because they are helping dealers like Rick Case, SoCal Penske, Germain and others use the phone to improve their customer experience and profits. “We save multiple deals a week from the alerts CallRevu sends to our managers whenever a customer is mishandled,” said Richard Bustillo, GM of Rick Case Honda, one of the top Honda dealers in the world. “CallRevu monitors every call that comes into a dealership with live call center operators who score all the calls, and alerts management whenever a customer is mishandled or when someone needs training.”

“We use CallRevu to improve our customer experience by using their weekly and monthly reports to track our advertising, people, processes and appointments so we can ensure that every customer call is handled correctly,” said Bustillo. “CallRevu has turned the call tracking business upside down by giving dealers free ad tracking numbers as a part of their service while providing more accurate ad tracking and alerts that help dealers save deals and improve the customer experience over the phone. My previous call tracking system gave us inaccurate information about our ad sources because many customers who see our ads then go to our Website for information and call the number on the site which gives the Website credit for the call when it was another medium that brought them there. Since CallRevu listens to each call they capture the correct ad source, as the customer refers to the specific vehicle they saw on AutoTrader or the newspaper. They also track our appointment rates by staff, store, region and nation so everyone knows where they stand. There’s no doubt that CallRevu is a game changer for 2012.”

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Sales Increase 57% in Just 6 Months at Brandon Dodge on Broadway and Service ROs Jump by an Average of 200 A Month

Posted on January 1, 2012 by admin

Sales Increase 57% in Just 6 Months at Brandon Dodge on Broadway and Service ROs Jump by an Average of 200 A Month

In June, Brandon Dodge on Broadway in Littleton, Colorado, a member of the Moreland Auto Group, began a new targeted and digital marketing strategy that has steadily improved sales and service. New car sales are up an average of 57 percent over the last six months and the service department has written an average of 200 more ROs every month since switching to an integrated marketing strategy that promotes all their profit centers, new, used, finance, service and parts, to attract, sell, service and retain more customers for less cost.

“We were averaging 107 vehicle sales a month for the first half of 2011, which wasn’t bad, but since changing-up our marketing strategy in June we’re averaging 131 vehicle sales a month – I like those numbers a lot better,” says Brandon Moreland, general manager of the Brandon Dodge store.

With the ongoing unpredictability of today’s economic market conditions and stiff competition from same brand and off-brand competitors alike, many dealers continue to struggle to maintain sales and service performance. However, Brandon Dodge sensed it was possible to do better and sought to more clearly define its local market and identify the best possible Dodge customers in the Littleton, Highland Ranch and Parker areas it serves in hopes of improving their bottom line results.

To identify and attract the best possible customers with the highest probability of purchasing or servicing with their store, Brandon Dodge performed comprehensive assessment of the local market which included an exhaustive five-year historical analysis of their sales and service transactions to determine customer trends. The results were compared to leading third-party and industry data to establish consumer patterns and trends within the local market.

“Our goal is simple – to find ready buyers who are in the market for a Dodge and make sure they buy and service their vehicles with us,” says Moreland.

Next, Brandon Dodge worked to implement an integrated targeted and digital marketing strategy that consistently communicates to every Brandon Dodge customer throughout the 60-month life cycle of their vehicle; targets same brand prospects, and attracts off-brand prospects that have a historical trend of crossing over to the models they sell. This cohesive system uses variable mail and email communications that include a welcome message for recent purchasers, maintenance reminders for newer vehicles not yet in-equity but may be due for recommended maintenance, and ongoing targeted mail and email sales communications to customers in an equity position that always includes a custom service message based upon the status of the customer’s vehicle.

“The ability to customize our sales messaging with variable service offers is genius – no more over-couponing and we can customize the service offers to the customer’s frequency. Customers who regularly service with us will get a $34.95 oil and filter change, but customers who don’t will get a $24.95 oil and filter change to incent them to come back for service – and it’s working. My service department is averaging 200 more ROs a month these days,” says Moreland.

Another key benefit of the strategy and market research is the data technology that enables Brandon Dodge to target 2010 and 2011 conquest Dodge owners with enticing maintenance offers that brings these late model owners into Brandon Dodge’s service bays and away from the dealerships where they originally purchased their vehicles.

“Brandon Dodge prides itself on exceptional service and competitive prices. They’re phenomenal at creating and keeping lifetime customers and active service customers are seven times more likely to buy with the dealership they service with,” says Budd Blackburn, owner of www.TeamVelocityMarketing.com, the targeted marketing company Brandon Dodge uses. “Once Brandon Dodge gets a hold of a conquest Dodge owner the chances of that customer becoming a customer for life is extremely high,” adds Blackburn.

An important part of Brandon Dodge’s integrated strategy is their digital component. Every mail and email campaign directs customers to an online Campaign Offer Site, www.BrandonDodgeoffers.com, that not only displays the featured promotions of the direct mail or email campaign they have just received, but also displays every sales and service offer that Brandon Dodge is currently running. If a customer is not in the market for the particular offers they receive in the mail or email, they can check the Brandon Dodge Campaign Offer Site for other available offers.

“We can actually ‘feel’ the customer response that’s generated from our offer site. Customers regularly come in with the coupons they’ve printed online,” says Moreland.

With sales and service up, Brandon Dodge has been able to shift away from the more expensive traditional mass media, like television and radio, while directing that money toward strategies that generate the best response like their Campaign Offer Site that is completely integrated with their targeted mail and email campaigns.

Brandon Dodge also predominantly displays in-store merchandising that reflects the monthly featured campaign. If a customer happens to walk-in without having received anything via mail or email, they are immediately aware that there is a special promotion taking place and they came to the right place at the right time.

“I really like the consistency of this strategy. Everything ties together, it’s professional, it builds our brand – it just makes sense,” says Moreland. “There’s no more confusion over what programs and promotions are running each month. From the mail, email and in-store merchandising, to our receptionist who answers the phone announcing our current program – the customers know what they’re getting and that’s important,” adds Moreland.

Part of their integrated strategy, and equally as important as delivering the right message to the best possible customer, is listening to the customer. Since opening its doors Brandon Dodge has maintained a solid commitment to their customers. To help ensure that customers receive exceptional service Brandon Dodge uses toll-free 800 numbers on all their advertising  enabling them to monitor all inbound sales and service calls to ensure that customers are handled properly and to address any CSI concerns before they escalate. Monitoring customer calls also helps Brandon Dodge track ad response rates to better assess what campaigns and advertising generate the best results.

“We definitely made the right decision in June –it’s given us a steady increase in business that I don’t think we would have seen without the focus we dedicated to changing-up our strategy,” says Moreland.

In A Nutshell

Brandon Dodge on Broadway increased new car sales 57% in just 6 months and service ROs by an average of 200 a month by implementing a new targeted and digital marketing strategy.

  • Conduct comprehensive market research to identify the best possible in-market customers with the highest probability of purchasing or servicing with their store.
  • Implement an integrated targeted marketing program across multiple mediums that includes targeted direct mail and email, a campaign offer site, banners ads and POS merchandising.
  • Improve gross profits by combining sales and service messaging for less cost to positively promote all profit centers, new, used, finance, service and parts.
  • Monitor inbound calls to ensure customers are handled with the highest quality care by properly responding to and managing customer’s expectations – creating customers for life.
  • Track campaign response rates to assess campaign performance and shift marketing dollars where they are most effective.

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Dealer Brian Benstock wins by defending Civic

Posted on December 14, 2011 by admin

David Barkholz
Automotive News — December 12, 2011

Dealer Brian Benstock of Paragon Honda in New York City wasn’t about to let poor consumer reviews of the next-generation Honda Civic compact get in the way of a crucial product launch.
Continue reading →

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Huffines Hyundai is Breaking Records and Outpacing Hyundai Nationally by 25%

Posted on November 6, 2011 by admin

Dealer Marketing Magazine
November 20111

Huffines Hyundai of Plano Texas set a new sales record in May, followed by their most profitable month in dealership history in June, then broke that record in July, and yes, you guessed it, they broke July’s record in August. Four consecutive record-breaking months in a row, the dealership is up 45 percent year to date, Hyundai is up just 20 percent, and Huffines has moved into the top 20 for Hyundai dealers nationally.

“If Hyundai could keep up with the inventory we could keep setting volume and profit records,” says Roosevelt May, general manager of the Huffines Hyundai Plano store. “Life is good in Plano,” he adds.

Huffines has also seen dramatic growth in their active customer database, increasing by 213 percent for the first nine months of this year compared to the same period in 2010 and their service volume has more than doubled for the same period after implementing a new targeted and digital marketing strategy to attract, sell, service and retain customers for less cost by integrating and positively promoting all their profit centers, new, used, finance, service and parts.

While many dealers continue to struggle to maintain sales and service performance given challenging market conditions, manufacturer inventory issues, and stiff competition from same brand and off-brand competitors alike, Huffines Hyundai is breaking away from the pack.

Huffines’ wanted to clearly define its local market and identify the best possible Hyundai customers in the Dallas/Fort Worth area that it serves. “Our goal is simple really. We want to improve our bottom line. We want to find ready buyers who are in the market for a Hyundai and make sure they buy and service their vehicles with us,” says May.

A comprehensive five-year historical analysis of their sales and service transactions helped to define customer trends. The results were compared to leading third-party and industry data to establish consumer patterns and trends within their local market.  With a clearly defined audience, Huffines Hyundai began implementing an intelligent targeted and digital marketing strategy that includes integrated campaigns with variable mail and email communications, custom digital offer sites, and in-store merchandising.

Using targeted variable mail and email communications, Huffines consistently talks to every customer throughout the 60-month life cycle of their vehicle with custom messaging. This includes a welcome for recent purchasers, maintenance reminders for newer vehicles not yet in-equity that may be due for recommended maintenance, and ongoing variable mail and email communications to customers in an equity position, that always includes a custom service message based upon the status of the customer’s vehicle. For example, a customer who regularly services with Huffines would receive a $24.95 oil and filter change offer, but a customer who does not regularly service with or did not purchase their Hyundai from Huffines would receive a $19.95 oil and filter change to incent them to come in for service. A benefit of the data technology platform that Huffines uses enables them to target 2010 and 2011 conquest Hyundai owners with enticing custom maintenance offers that brings these late model owners into Huffines’ service bays and away from the competition, which has more than doubled their service business.

“Active service customers are vital to a dealership because they’re seven times more likely to buy with the dealership they service with,” says Budd Blackburn, owner of www.TeamVelocityMarketing.com, the targeted marketing company Huffines Hyundai uses. “Huffines is known for its outstanding customer service. Once Huffines gets a hold of a conquest Hyundai owner the chances of that customer becoming a customer for life are extremely high,” says Blackburn.

Every outbound mail and email campaign from Huffines directs customers to an online Campaign Offer Site that not only displays the featured promotions of the mail or email campaign they have just received, but also shows them every sales and service offer that Huffines is currently running. If a customer is not in the market for the specific offers they receive in the mail or email, they can check the Huffines’ Campaign Offer Site,  www.huffineshyundaioffers.com, for other available offers. Online analytics show that Huffines’ offer site has a 13 percent conversion rate of customers who visit the site and take advantage of posted promotions. “We have measurable traffic on our offer site that converts to real sales and service business,” says May. “And one of my favorite things about the offer site is that it’s completely managed by our marketing company. It’s updated every month, on time, and ties in with the monthly promotion we’re running.”

In-store merchandising is also an important component of the Huffines’ strategy. Each month the store displays point-of-sale materials throughout the dealership that reflects their current monthly campaign. If a customer happens to walk in without having received anything via mail or email, they are immediately aware that there is an event taking place at the dealership and that they came to the right place at the right time.

“Huffines has many customers come to them from their service department asking about the BuyBack Event or how the Express Trade Program works,” says Blackburn. “This sets the Huffines’ team up for the perfect selling opportunity along with a higher ticket internal repair order when they take the service customer’s car in on a trade. Huffines has been phenomenal at capturing these folks.”

Healthier trade patterns have also emerged as a result of their steady trade-in promotions like their Express Trade Program. Previously Huffines’ top trades were older models ranging from 2000, 2002, and 2003. Today their dominant trade-in models are 2008, 2007 and 2006 providing a much better return on resale.

Huffines is consistent in the households they target and they strive to reach their customers early every month, before the competition. They focus on core models and use combined messaging that always delivers a sales and service message. They use a cohesive marketing strategy that includes targeted direct mail and email with custom messaging that reflects the service status of the customer’s vehicle, an online offer site that promotes all available offers, and in-store merchandising to tie everything together.

With sales and service up significantly, Huffines has been able to shift away from the more expensive traditional mass media, like television and radio, by directing that money toward strategies that generate the best response; ultimately spending less on their overall marketing strategy and saving money, while increasing profits.

Want Huffines’ results? Start by determining your ideal local market by identifying customers and prospects with the highest statistical probability of buying and/or servicing with your dealership now and in the future. Then design and create an integrated targeted and digital marketing strategy across multiple mediums that promotes all your profit centers, new, used, finance, service and parts. Create dynamic, cohesive campaigns that consistently speak to your customers throughout the 60-month lifecycle of their vehicle, and set the highest standards of customer care to ensure every customer who buys or services with your dealership becomes a customer for life.

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Cerritos Dodge Chrysler Jeep increases sales 75% and service 410% in 3 months

Posted on November 4, 2011 by admin

For 25 years, the Browning Automotive Group’s Dodge Chrysler Jeep dealership in Cerritos, CA, has had a lot of success.

But a shift in marketing strategy three months ago enabled Cerritos to target the right customers within its primary market and has sent the dealership skyrocketing. Sales are up 75% (50% over the same period in 2010), while the number of vehicles serviced jumped 410%. Service ROs for vehicles in Cerritos’ primary marketing area increased 210% over the same period last year.

Like many dealers, Cerritos Dodge faces ongoing challenges of how to grow their dealership amidst a recovering economy surrounded by tough competitors with a brand that was down 0.3% in its market compared to March 2010.

“We recognize the value of effective advertising and have always invested in marketing, but we felt we weren’t reaching the right customers,” says Jack Ameen, general manager of the Cerritos store. “There are well over a quarter of a million consumers in our immediate market, but obviously not everyone is a potential customer, so earlier this year we decided to invest in research that would help us more clearly define our local market.”

First, the dealership completed a comprehensive five-year historical analysis of its sales and service transactions to determine customer trends. Those findings were then compared to leading third-party and industry data to establish consumer patterns within the local market.

Using this data enabled Cerritos to identify vehicle owners with the greatest probability of buying or servicing with the dealership. The research also pinpointed same-brand owners who had never visited Cerritos Dodge Chrysler Jeep and off-brand owners with a greater percentage of crossing over to the brands it sells.

“We were up 5.3% in market share in March over last year – more than anyone else in our market,” says Ameen. “While Dodge and several of our competitors’ market share was down. This research data is empowering. We know exactly who to target.”

With their ideal market identified, Cerritos implemented a comprehensive targeted marketing strategy using mail and email campaigns that consistently speak to its customers and prospects with custom messaging.

Cerritos sends high-end campaigns promoting its best sales offers. The campaigns always include service messaging that is relevant to the vehicle’s service status with the dealership. For example, customers who are active with their dealership and come in for regular service receive $24.95 oil change coupons.

Customers who are categorized as lost, or who do not return to the dealership for service regularly, receive a coupon for a $14.95 oil change. The same goes for Dodge, Chrysler and Jeep owners who have never been to Cerritos.

“In three months my service department has seen a 522% increase in ROs from the customers in our immediate market, and our total service units are up 410% from the previous three months before starting this program,” Ameen says.

“Cerritos’ sales inside their primary marketing area have increased 153% over the last three months, up 50% from the same three-month period in 2010 because they are targeting the right customers in their own backyard,” says Budd Blackburn, owner of www.TeamVelocityMarketing.com, the targeted marketing company Cerritos Dodge began using in February.

Not only are sales and service up significantly, Cerritos has been able to shift away from the more expensive traditional mass media, like television and radio, while directing that money toward strategies that generate the best response.

In order to sustain the level of excellence and customer service Cerritos is known for, the store regularly trains and communicates with its employees so they are fully knowledgeable when customers call or visit the dealership.

The training includes having the entire sales team participate in monthly campaign kick-off meetings where all the details, offers, and promotions are thoroughly explained. Cerritos also provides phone scripts for each campaign to help improve appointment ratios. Even the receptionist is instructed to always answer the phone with the appropriate campaign greeting; “Good afternoon and thank you for calling Cerritos Dodge Chrysler Jeep. Are you calling about our Let’s Trade Keys Program?”

“It’s important that we have an infrastructure in place to properly handle every customer for both sales and service,” says Ameen. “A knowledgeable and informed staff is a great asset that instills confidence in our customers. We don’t want to miss a single opportunity.”

The Bottom Line

Cerritos Dodge Chrysler Jeep increased sales 75% and service 410% in just three months by changing their existing marketing strategy and implementing a targeted digital marketing strategy.

What They Do:

  1. Conduct in-depth market research to determine their perfect primary marketing area and identify in-market consumers with the greatest statistical probability of purchasing or servicing with their store.
  2. Implement a targeted marketing strategy using direct mail and email that contains a custom sales and service message relevant to the vehicle’s service status with their dealership.
  3. Effectively target in-market prospects with a historical trend of crossing over to the brands they sell.
  4. Establish best practices that include campaign kick-off meetings with all sales associates for every campaign and provide phone scripts to help sales members improve appointment ratios.

Resources They Use:

  1. DMS: ADP Dealer Services

(www.adpdealerservices.com)

  1. CRM Platform: iMagicLab

(www.imagiclab.com)

  1. Targeted Marketing Company: Team Velocity Marketing

(www.TeamVelocityMarketing.com)

Recommended Actions:

  1. Perform extensive market research to clearly define your primary marketing area.
  2. Complete a historical analysis of all sales and service transactions to determine specific consumer trends in your market place.
  3. Identify and target in-market consumers who have the highest statistical probability of doing business with your dealership.
  4. Establish and maintain best practices that help your sales, service and administrative teams to be as knowledgeable and informed as possible on the products, promotions and services you offer so that customers have confidence in your store.

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How Paragon Honda and Acura Became #1

Posted on September 3, 2011 by admin

How Paragon Honda and Acura Became #1


Learn how Paragon got the Triple Crown for selling more Hondas, Acuras and Certified Pre-Owned vehicles than any other dealer in the world

It is extremely difficult to increase market share ranking among the top 20 Honda and Acura dealers in the country. Paragon has managed to move up in market share for both brands, from #17 to #1 in Honda New and Used and #36 to #1 for Acura New and Used, and became the #1 Certified Pre-Owned Dealer of the Year in 2010 by selling over 4,000 Certified Pre-Owned.  Paragon continues to break records, selling 338 in CPO last month – an all-time Honda CPO record.

Before becoming the largest volume Honda & Acura retailer in the world, Paragon was spending a lot of money with a lot of companies to attract customers that were not always the right customers. By casting a broad net with mass marketing they attracted some customers that were not as profitable as others because they had a low probability of returning for service and repeat sales. These customers cost more to attract, but generated less long term profit, so in the end Paragon spent too much to reach the 15+ million consumers across New York City that were not as profitable as the customers in their own backyard who have a higher loyalty and lifetime value.

“We used to pride ourselves on selling customers from across the entire city and state, but after analyzing our numbers we learned those customers are usually not as profitable and not loyal because it’s difficult to retain them for service and repeat sales,” says Brian Benstock, VP and General Manager of Paragon Honda and Acura.

Another problem that Paragon faced was working with multiple vendors that had different messages and often competing strategies that were not integrated and confused not only the customers, but also the employees.

Paragon increased their market share and more importantly their profitability when they implemented a new integrated marketing strategy to deliver the right consistent message across multiple mediums that included their traditional advertising, digital marketing, targeted email and direct mail, public relations, social media, niche marketing, and merchandising, “so the message that customers receive is the same whether it’s seen on television, heard on the radio, viewed online or on the showroom floor,” says Benstock.  “Our results went through the roof when we implemented one integrated marketing strategy to attract in-market consumers to buy and service with our dealership and our team works very hard to attempt to deliver a world-class customer experience that has improved our customer satisfaction and loyalty.”

One example of Paragon’s cohesive marketing strategy is how they aggressively capitalized on the 9th generation launch of the new 2012 Honda Civic. The launch of the 2012 Civic was the biggest new vehicle launch in American Honda history and Honda spent a substantial amount of money to drive Civic customers into the market and Paragon leveraged this launch to attract those consumers into their showroom.

Paragon’s Civic launch campaign, like all their marketing strategies, was a comprehensive integrated campaign across multiple tiers including traditional advertising, targeted email and direct mail to in-market civic owners, search engine marketing, digital, social media, publicity and merchandising.

First, Paragon performed in-depth market research to identify perfect prospects for the new Honda Civic which included current Civic owners and consumers driving models that had a high statistical probability of crossing over into a civic, like the Toyota Corolla.

Next, Paragon sought to contact these consumers to notify them about the Honda Civic Upgrade Program via direct mail, email and text. The campaign message offered buyers additional trade value for their current vehicle and the same or lower monthly payment to upgrade to a brand new 2012 Honda Civic with multiple enhancements. The campaign drove customers to a campaign web site that provided an upgrade calculator that compared their current car to the new Civic, and displayed all the upgrades and improvements of the new Civic compared to their current vehicle, as well as, how much money they would save in gas with the new Civic monthly, annually and over a five year period. “A typical consumer can trade-up from a 2007 to a 2012 with over a hundred new vehicle feature enhancements while saving thousands of dollars in gas – a fact based value proposition that is hard to resist,”  said Sean Wolfington, owner of www.Tier10Marketing.com, the marketing company that Paragon works with to implement their integrated marketing strategy.

Paragon also implemented a social media campaign that featured a viral video, the 2012 Honda Civic “Heritage” Video that invited Honda owners to tell their story about how their Civic has impacted their lives. The winner of the Tell Your Story campaign would win recognition and possibly win a new Civic. The viral video was a big success with over 45,000 views in less over a months’ time.

While Paragon has executed the basics better than their competitors by targeting and marketing to consumers with integrated campaigns that are consistent and credible they have also blazed trails and innovated in ways other dealerships have not, including an aggressive Latino marketing strategy. Paragon has worked with Univision through their television, radio and online channels to reach the growing Latino population who have proven to pay more, refer more and to return more often compared to traditional consumers. In addition, Paragon has implemented a new “Vehicle Exchange Program” in their service department that has resulted in 75-100 additional sales a month out of their service isle.  “The Vehicle Exchange Program makes it easier for consumers to get into a new vehicle for the same or lower monthly payment and Paragon can give their customers a vehicle analysis that compares their old vehicle to the new vehicle, highlighting all the enhancements that are in the new model along with estimated gas savings on a monthly and annual basis by upgrading to the newer vehicle,” explains Wolfington.

Paragon has also delved into the future with digital signage that reveals what the dealership of the future will look like with video walls showcasing new products, plasma presentations that emphasize the unique advantages of doing business with Paragon in both sales and service, and even broadcasting a closed-circuit television station that customers watch while waiting for their vehicles to be serviced. These televised broadcasts feature positive programming and videos about Paragon’s vehicles, like their Certified Pre-Owned Program, as well as, educational videos on how to better maintain their vehicle, as opposed to what many dealerships offer – traditional television featuring Jerry Springer, interrupted by ads from their local competitors. Paragon’s digital signage is also complimented by Apple computers on every desk and iPads for all sales staff to engage and help educate the customer on the value of doing business with Paragon and the products and services they offer.

Paragon is successful because of their unique and aggressive style to capture the moment – seize the opportunity. They perform diligent research of in-market consumers, they reach out to consumers with integrated campaigns, and they innovate where other dealerships do not, like through Latin marketing or selling cars out of their service lanes, as well as, leveraging technology throughout all of their departments to create a better customer experience and increase their profitability. Paragon has one strategy and one message that is integrated throughout multiple tiers and they have been able to grow their business profitably by attracting more high quality customers that pay more and return more often, but cost less money to acquire. As a result, they have become the #1 Honda & Acura retailer during the same year that they sold more Certified Pre-Owned vehicles than any other retailer in the world.

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Melloy Nissan Sets Record Month, Increases Sales 310% and Moves into Top 20 Nationally for Nissan

Posted on September 3, 2011 by admin

Melloy Nissan Sets Record Month, Increases Sales 310% and Moves into Top 20 Nationally for Nissan


Melloy Nissan in Albuquerque, NM, set a record in July with its best sales month ever since Bill Melloy opened the doors to his Nissan dealership in 1964. Outselling everyone in their district by more than twice the units in July, Melloy is up over 310 percent in sales, and has written more than 1,400 ROs for the same period in 2010 by applying a new sales and service strategy that is proving to attract, sell, service and retain more customers and positively affect all their profit centers: new, used, finance, service and parts for less cost.

Like many dealers, Melloy Nissan faced the ongoing challenges of how to grow their dealership amidst uncertain market conditions, manufacturer inventory issues, and strong local competition, but their decision in late 2010 to develop and implement a new marketing strategy for 2011 has had a significant impact on how their year is playing out.

Melloy started by taking a close look at their local market that included a comprehensive five-year historical analysis of its sales and service transactions to determine customer trends. Those findings were then compared to leading third-party and industry data to establish consumer patterns within the local market. The results enabled Melloy to identify vehicle owners with the greatest probability of buying or servicing with their dealership. The research also pinpointed same-brand owners who had never visited Melloy Nissan, as well as, off-brand owners with a historical pattern of crossing over to Nissan.

“Rather than spend advertising dollars to talk to everyone in our region, we can now identify ready Nissan buyers and target them consistently every month for less money,” says Roy Benson, a 37-year veteran of the automotive industry and general manager at Melloy Nissan. “We have seen a noticeable difference in consumer response rates and our sales are up anywhere from 82 percent to 219 percent every single month since implementing this strategy in January,” adds Benson.

Melloy has been able to shift away from the more expensive traditional mass media, like television and radio, while directing that money toward strategies that generate the best response using consistent targeted communications with custom messaging that reflects the service status of the customer’s vehicle. A customer who regularly services with Melloy would receive an offer for $34.95 oil and filter change, but a customer who does not regularly service would receive an oil and filter change offer for $19.95 to persuade them to come back for service.

“We’ve seen a 22 percent increase in total units serviced and our service departments has written 1,465 more ROs year to date over 2010,” says Benson. “This is a very effective program.”

“Once a sale is made, Melloy does a phenomenal job of staying in constant communication with their customers throughout the 60-month lifecycle of their vehicle,” says Budd Blackburn, owner of www.TeamVelocityMarketing.com, the targeted marketing company Melloy Nissan uses. “They use welcome messaging for recent purchasers, maintenance reminders for customers with vehicles that are not yet in-equity but are eligible for scheduled maintenance, as well as, ongoing mail and email communications to customers whose vehicles are in an equity position,” explains Blackburn. Combining sales and service messaging also alleviates over-couponing the customer and ultimately saves the dealership money.

Melloy Nissan also promotes unique ad campaigns like the New Start Program where they reach out to credit-challenged consumers by offering a special ‘New Start Program’.  They work closely with local banking institutions and lenders to help consumers who may not have Tier-1credit have the chance to buy a new car that’s affordable.

No matter which campaign they run, Melloy Nissan now ties everything together with in-store point of sale merchandising that highlights their monthly campaigns. If a customer happens to visit the store without having received a campaign mailer or email, they immediately recognize there is a special event taking place at Melloy Nissan and they just happen to be in the right place at the right time to take advantage of the special promotion.

An important part of Melloy’s strategy is to make sure that their entire sales team is knowledgeable about every campaign, every month. Taking the time to review all the details, offers and promotions with the sales team helps instill confidence among customers. Additionally, they monitor their inbound calls to make sure that every customer is handled properly. On average, most dealers pay approximately $150 to generate one lead. Melloy ensures that their marketing and advertising efforts turn into results by using toll-free 800 numbers on all the mail and email campaigns to monitor and track in-bound calls to ensure that every customer is handled with the utmost in customer care, courtesy and professional service; helping them to improve appointment ratios, and ultimately turning those appointments into sales.

Melloy is consistent in the households they target and they strive to reach their customers early every month, before their competition. They focus on core models and use combined messaging that always delivers a sales and service message. They use a cohesive marketing strategy that includes targeted direct mail and email with custom messaging that reflects the service status of the customer’s vehicle and in-store merchandising to tie everything together.

In A Nutshell

Melloy Nissan Sets Record Month Selling 209 Units, Increases Sales 310%, Moves into Top 20 Nationally and Service is up 22 percent in Total Units Serviced

  • Conduct in-depth market research to determine their perfect primary marketing area and identify in-market consumers with the greatest statistical probability of purchasing or servicing with their store.
  • Consistently speak to in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to Nissan.
  • Implement a targeted marketing strategy using www.TeamVelocityMarketing.com to implement direct mail and email campaigns that contain custom sales and service messaging relevant to a vehicle’s service status with the dealership.
  • Use in-store merchandising to create a cohesive look and feel for each monthly campaign and tie-together all promotions.
  • Educate all sales staff on monthly campaigns and promotions; knowledgeable sales staff instill confidence with consumers.
  • Successfully attract, sell, service and retain more customers for less cost while positively promoting all their profit centers: new, used, finance, service and parts.

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