CHALLENGE
To increase customer frequency through a cost-effective direct marketing program for a medium-size import dealer in the Midwest. On average, just over 18% of a dealership's customer base comes in three or more times a year. The dealer needed to increase customer frequency in order to drive profits higher and retain clients more effectively.
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By Chuck Patton | Owner/CEO
In Charles Dickens' novel, The Tale of Two Cities, London and Paris were going through tremendous social turmoil. Even though their challenges were similar, the ways in which they operated were not.
That revolutionary story, set in Europe in 1775, is the most printed original English book, and among the most famous works of fiction.
Turning to recent times, how would the The Tale of Two Departments
read from an automotive dealership point of view? Last year's economically revolutionary story addresses Dickens' novel's famous line, “It was the best of times, it was the worst of times....”
In an automotive dealership, the tale is not the same from the sales and service perspectives, as the service department accounted for almost all of the profit in 2009 at the average dealership,
according to NADA's end of the year analysis. To get both sides of the dealership out of economic difficulty, dealership leaders must have the vision and the ability to adjust to the market.
Dealership vision is greatly influenced by the dealer principle and/or the general manager, so it becomes vital that they learn what it takes to successfully come out of the revolution.
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