Challenge
The challenge was to create a larger and more unified market presence for multiple dealerships, all located in the same city in the northern United States. The group wanted to build manufacturer brand loyalty while maintaining strong individual dealership identities.
The ultimate goal was to grow each dealer’s market share and market penetration. This increase would also lead to more frequency in customer visits and eventually lead to more brand loyalty for increased vehicle sales.
Approach
All service customer repair order (RO) records and prospect lists for each participating dealer were merged into one master group comparison list for the purpose of removing duplication of mailings and allowing prospective customers the opportunity to choose between seven dealers, rather than receiving a message from a dealer to which they have no loyalty. A colorful, powerful postcard was designed that encompassed all seven dealers, who picked their own price points and offers. Individual dealership mailers were also designed that featured a variable discount offer and a premium.
There are advantages to group programs:
There is potential to eliminate consumer confusion and competition among regional dealers of the same brand, specifically allowing each dealer to set his own standards of service pricing and to maintain higher margins by not worrying about being under priced by another regional dealer of the same manufacture.
The competitive focus can be realigned against the after-market service industry.
Frequent mailers create more consistency with a brand focus, which hopefully will generate more consumer familiarity, confidence and trust, resulting in increased business.
Results
Regular customer mailer
Six dealers reported the following results:
- Customer responses as a percentage – 22.4%
- Customer RO dollars generated – $2,861,728
- Average responding RO – $200.83
Lost customer postcard
Six dealers reported the following results:
- Customers responding as a percentage – 5.8%
- Customer RO dollars generated – $432,976
- Average responding RO – $222.38
It can be determined that prospective customers are more likely to respond when given a choice. These dealers did not lose when they allowed other dealers (of the same manufacture) to market to their customers. Instead, they benefited from the united front portrayed on the postcard.
| DEALER | Individual Mailer Responses
(a dealer’s own data) |
Group Mailer Responses
(from combined mailing lists) |
% Gain |
| A | 223 | 329 | 47.53% |
| B | 138 | 239 | 73.19% |
| C | 116 | 182 | 56.90% |
| D | 423 | 542 | 28.13% |
| E | 245 | 375 | 53.06% |
| F | 197 | 282 | 43.15% |
It can be determined that prospective customers are more likely to respond when given a choice. These dealers did not lose when they allowed other dealers (of the same manufacture) to market to their customers. Instead, they benefited from the united front portrayed on the postcard.
