Challenge
A Ford dealership, in a top 25 market, wanted to avoid its service being viewed merely as a commodity. Service marketing here had been Ford-focused with no real difference between the national brand and the individual dealership. The dealer had a reputation for quality expert service, but this wasn’t able to be communicated in their manufacturer-crafted marketing. Even though they did not have the newest facility or amenities, they felt their highly skilled, friendly technicians knew how to project value and confidence with customers.
Similarly, this dealership wanted a marketing partner who shared their personal-touch philosophy. Other marketing companies they had worked with in the past were absentee and difficult to work with. Furthermore, the service manager wondered how someone who had never visited his dealership could really help him improve repair order traffic. He wanted a marketing partner who would manage his service advertising effectively so he could spend his time with customers on the service drive.
Approach
Traffic Builders began by performing a Database Diagnostic™. Customer segments and behavior along with previously uncovered marketing opportunities were identified. A unique dealership-specific strategy was crafted including a series of messages intended to touch the entire database of customers and improve return-on-investment. Immediate opportunities were addressed through service reminder letters, declined-service letters, direct mail promotions to regular customers, and the use of Ford co-op.
Working very closely with the service manager and the service advisors, Traffic Builders identified the key attributes of the dealership that enticed loyal customers to bring their vehicles in for service as well as a couple of misconceptions that kept some customers away.
Keeping Loyal Customers Loyal
We overhauled their service reminder letter program to improve its effectiveness and further the dealership’s brand position of “quality people providing quality service.” A picture is worth a thousand words, so we incorporated as many dealership-related images as possible. Photos of the dealership provided the immediate recognition of this long-time landmark facility. And, most importantly, photos and the personal signature of each of the service advisors provided the personal touch with which consumers connect.
In addition to the standard recommended service letters based on mileage intervals, we began mailing thank you letters to every customer who purchased a new or used vehicle from the dealership introducing them to their service advisor and inviting them to the service department for accessories and any necessary maintenance. This helped the dealership improve their retention rates.
Another key addition was declined-service letters following a customer’s visit. According to the NADA, nearly 40% of consumers decline some service each time they visit a dealership. We had to address this segment in order to further the advisory relationship and reinforce the dealership’s service value for a next service visit. By mining the database for this new information, the service advisors were more connected to their customers, and Traffic Builders created an opportunity to increase dealership frequency-of-visits and recover service previously viewed as a final declination of service.
This is where Traffic Builders’ experience and commitment to our client’s success came into play. Declined-service letters only work if the service advisors enter notes about the customers’ needs within the database. To encourage and promote this practice, Traffic Builders provided training for the service advisors as well as visual prompts for each service desk to serve as reminders. Monthly results reporting included a synopsis of the number of declined-service letters written by each advisor as well as the results and amount of revenue associated with those letters. Seeing tremendous gains in revenue and increases in their personal income meant the service advisors were more than happy to enter this information with each repair order.
Direct Mail Communications Overhaul
A customized communication plan was projected for six months. Each communication was analyzed by dialing back into the system to match customers in the mailing to customers who came in during each promotion time period. Our REV® reporting allows our marketing team to not only analyze valuable information but also adjust each new marketing message to continually improve return-on-investment and refine the marketing message to each audience.
Segmented communications served several important purposes:
- Reinforced the brand
- Communicated value with a highly competitive price
- Established the dealer as “quick” and “convenient”
- Gave the dealer visibility with customized name recognition
- Positioned the dealer as a valued information resource
- Took advantage of co-op dollars
As industry veterans, we recognize customers bring (or don’t bring) their cars to dealerships for a variety of different reasons. Consumer surveys show they choose aftermarket service providers primarily due to perceptions that the dealership is inconvenient and expensive.
To address these perceptions, our client added a QuickLane® to their offering, and we created a direct mail postcard highlighting this convenience and a separate mailer sent only to Ford customers.
Additional information derived from the Database Diagnostic™ on their non-Ford customer-base suggested a female demographic, so our artwork was geared toward women and families.
In marketing to this dealer’s long-time loyal Ford customers, a large portion of whom were over 60 years of age, our message appealed to their desire to take care of their cars, save fuel and extend the life of the vehicle. Our direct marketing focused on quality and the staff’s tenure, positioning them as trustworthy experts in automotive service. Our design was unique, similar to a printed newspaper – a trusted source of information. We used this design to create a regular mail piece where the dealership could provide additional information about their staff, tips for fuel economy or tips for safe driving.
Results
The dealership management gained new knowledge of their database, received a customized direct marketing strategy and plan to execute, had a customized identity incorporated into their marketing, and highlighted service features previously unknown to their customers. Service advisors were more proactive and engaged in marketing.
- The QuickLane® postcard created a steady flow of customers.
- The newsletter-type mailers increased frequency among loyal Ford customers, attracted older model vehicles and positioned this dealership as a reliable source for service.
- The dealership experienced tremendous growth in the key areas of focus we incorporated into their marketing.
- Their average repair order increased 10% and their overall RO count increased 10% as compared with the previous year.
Tags: brand consistency, Direct Mail, e-mail marketing, Marketing Plan, service marketing, strategic planning
