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From an advertising perspective, the highest return on investment is from a loyal client. Our strategy is to remind them as to why using your service department continues to have value.
Within this segment the goal is less about earning a customer and more about frequency or gaining a larger share of the customer. Most of this doesn't surprise dealerships when we consult
with them but there are still many details to fill in. However, not all dealerships have their customer loyalty finely tuned the way they really should. You many have some room to grow.
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The Challenge:
According to a recent study by the Automotive Aftermarket Industry Association (AAIA), vehicle repairs cost an average of 34% more at a new car dealership than at independent repair shops.
They argue that this is leading to 11.7 billion dollars of excessive costs annually to consumers.
One of our dealers, a large import dealer located in the southern United States, decided to address the issue of being cost competitive, without sacrificing profitability. The first part of
his challenge was to utilize a cost-efficient means of keeping his name in front of customers and enticing them back into the dealership, despite perceived higher cost.
The second part of the challenge was to retain new customers.
The Solutions:
The dealer asked us to create a mailer offering a $19.95 oil change. The shop is the number one store (of that particular manufacture) in that region in paid-customer work. On subsequent mailers,
the dealer continued to offer the $19.95 oil changes. To sweeten the deal, he chose the rock-bottom price of $9.95 to put on a lost customer postcard, which was mailed at the same time as a
regular mailer that featured the $19.95 oil change. Customers are considered to be lost when they have not visited the dealership in 24 to 36 months.
The Results...
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Our Direct Mail Program is the cornerstone of our Proven Systems. Using our Database Diagnostics, we can evaluate
your customers' behavior to develop a comprehensive strategy and marketing plan. The plan will include multiple
customer communications to increase the impact of your message and help you reach your goals. Using the strengths
of direct mail, we put customized, targeted offers into your customers' hands. All of direct mail strategies are created
to complement each other to increase response rates.
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