Intersections eNewsletter - March 2010

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Intersections eNewsletter
INTERSECTIONS is a monthly eNewsletter published by Traffic Builders, Inc.

Case Study: Creating a new strategy to reach customers with older vehicles

Visit us at automotivecasestudies.com

CHALLENGE
It is harder than ever to generate the same revenue from parts and service customers. Vehicle quality has consistently increased over the last decade, and preventive maintenance needed for these models has been reduced. Even oil changes have become less frequent-with the introduction of synthetic oil blends. The bottom line is that it is difficult to identify the right marketing plan to increase your service department's gross profits and year- to-year sales. Where can we find a market opportunity to drive in customers?

APPROACH
Over the years, dealerships have emphasized new car sales and service. Some have forgotten the older model vehicles. What would be the result if we specifically targeted those older-year models, and how would that affect the dealer's profitability? Perhaps service managers should rethink the paradigm of their primary market being the servicing of new vehicles. This shift in focus could boost the dealership's profitability during more difficult economic times.

By increasing the scope of your promotion to include older models, you could bring in vehicles needing more service than vehicles half their age. Also, these older cars will need parts that are more expensive and require higher labor charges. This combination will increase the average amount of the dealership's repair orders-making the dealership more profitable.

RESULTS...

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Strategic Planning 2010: How Change is going to affect you

By Chuck Patton

Owner/CEO

Change Ahead

2009 has arguably been the most unique and challenging year that service managers have ever seen. Economic factors have led to such uncertainty that even the most tenured of service staff are questioning if they will keep their jobs. Discussions about budget cutting have originated from general managers or dealer principles who normally don't cross the line between the front end and back end-except to ask if you met your numbers or if you have a car ready for them. Dealers are going belly-up even though the service department and the franchises are profitable and selling cars. Things have changed and like it or not, you will need to change with them. Merely knowing the basic service processes and having managerial experience may not be enough to compete in today's market.
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January 2010

Featured Designs

The strategy behind your marketing message comes to life with the design. Whether it's a four-color seasonal mailer with targeted coupons or a postcard announcing an Open House, the look and feel of a design really gets you noticed. Creative promotions include consistent branding and the ability to highlight dealership amenities. Keeping your name in front of customers while promoting your dealership's value and convenience means increased response rates, customer frequency and revenue.

Come See The Masters

With savings sure to inspire customers to come in, this masterpiece of a postcard targets lost customers. Invite customers to see everything that makes your dealership a classic choice for service.

Spring Ahead

Help your customers get the jump on savings with this seasonal mailer. Enticing coupons signal customers to bring in their vehicles and get ready for warmer weather.

Tournament Time Savings

The winning promotion with all-star savings for your customers! This mailer goes out in March, celebrating some of the best competition that college basketball has to offer.