digital dealer: working smarter with less budget: how targeted marketing converts into higher sales...
DESCRIPTION
TRANSCRIPT
Working smarter with less budget: How targeted marketing converts into higher sales and service revenue
• Southeast Regional Vice President at Team Velocity Marketing with over 17 years of experience in the automotive industry
• #1 in Client Retention and top Regional Sales Director• Facilitated F&I sales and implementation of Business
Development Centers Nationally. • ADP Dealer Services Division selling technology services to
major accounts as a Retail Solutions Manager and recognized as one of the top Retail Solutions Directors in the Region.
• Business to Business sales with General Motors, Chrysler and Nissan.
• Retail experience with Honda, Nissan and Porsche. • Laura continues to work with widely recognized dealerships in
Southern Florida, such as Rick Case Honda, Braman Motorcars, Germain Automotive and Brickell Motors. Laura Howe
Regional Vice President Team Velocity Marketing
• Operational leader of the largest Honda Dealership facility in North America with a team of over 400 associates.
• Bustillo has been the GM at Rick Case Honda since 2008• served as the GM at Germain Toyota Scion in Naples, Florida
from 2002 to 2008. • South Motors Volkswagen Suzuki from 1999 through 2002
and has been an automotive professional for almost 20 years.
• Bustillo is a recognized expert in the hiring, training and motivation of management and support personnel, along with the creation of innovative sales and marketing approaches.
Richard BustilloGeneral ManagerRick Case Honda
C A S E S T U D Y
Rick Case Honda - background
• Privately held business
• Opened in 2002
• #1 Honda Dealer in the Southeast
• Holds Honda national record for most new cars sold in
one month
• Certified Retailer Award by J.D. Power and Associates
and rated “The Best of the Best in America.”
C A S E S T U D Y
• Limited growth in Service Department – retention and
dollars per RO were good but they needed new customers
• Low response rate from typical email blasts, mailers, and
service reminders, etc…
• Aggressive Marketing from Competitive Brands
• Highly Transitional Geographic Area
• Multiple Vendors + Mixed Messaging
• Hit Plateau
Rick Case Honda - Challenges
Rick Case Honda
C A S E S T U D Y
Rick Case Honda – Challenges
S T R A T E G Y
Needed to be Cost Effective
Needed to be Sustainable
Needed to Help Grow Both Sales and Service
Needed to Retain Current Customers and Obtain New Customers
Creating a Strategy
G O A L S
Build a comprehensive targeted and digital marketing strategy
“One Store for All Automotive Needs” (Not a Collection of Departments)
Creating a Strategy
S T R A T E G Y
Mass MarketingLower Sales Volume Lower ROILower Profit Per Deal
In MarketHigher Sales Volume Higher ROIHigher Profit Per Deal
Old Strategy Targeted StrategyVS
Creating a Strategy
We Bet 100% on a Targeted Strategy
S T R A T E G Y
H O W I T W O R K S
Complete Sales & Service Strategy
T H E R I G H T S T R A T E G Y
99%
Not In-Market
1%
In-Market
People | Process | Tools | Point of Sale Sales Retention | Service Retention | Remarketing | Referrals
Mass Market
Shift focus to in-market prospects, not the general mass market.
Focus the message and mediums to best reach in-market prospects
T H E R I G H T M A R K E T
• Looking Back to Look Forward
• Areas with Our Most Profitable Customers
• Those that Buy and Service with Us
• Areas that had the Highest Statistical
Probability for Growth
R E S U L T S
Annual Service Growth in top Selling Zip Codes
2012 2013
7% Increase.5%
Increase
Annual Sales Growth in top Selling Zip Codes
2012 2013
13.5% Increase34%
Increase
2011
-1.4% Decrease
2011
-.2% Decrease
T H E R I G H T C U S T O M E R
ownership
service activity
demographics
geography
equity
DMSPOLK
VIOData
OEMIncentivesVehicle
Values
OEMData
Perfect Prospects
Customers Conquest
Customers with the highest statistical
probability of buying and servicing now
and in the future
T H E R I G H T O F F E R S
Every customer received Sales and Service offers
Every customer received communication monthly
Drove all traffic to the dealer offersite
T H E R I G H T M E D I A
• One unified message through multiple
mediums
• Multiple calls to action
• Variable pricing based on customer activity
• Campaign conversion site houses all sales and
service offers
• Converted traffic at 3 times the dealer’s website
P A I D S E A R C H
2012 2013
10.45%
Click Through Rate
2012 2013
3.53%
Conversion Rate
5.2%
2.94%
Conversions
2012 2013
4,727
827
Digital Marketing
R E S U L T S
38% of calls came
from a mobile device
272 Average Calls
per month
R E S U L T S
Without a thorough digital strategy, these calls wouldn’t
exist
?
R E S U L T S
Who says you can’t sell cars on Facebook
27,573 views in
2013
5,280 Page likes
18 million Impressions
In 2013
Reaching
8 million People
56,000Clicks in
2013
585Avg. likes per month
3,000photo viewsper month
$.51Avg. Cost Per Click
R E S U L T S
Annual Sales Growth Annual Service Growth
50,870
53,979
2012 20132011
7,352
7,459
2012 20132011
5,781 50,549
V E H I C L E E X C H A N G E
P R O C E S S
follow upselltarget market
1 2 3 4
consumers who can get a better car for a better
payment
follow upselltarget market
1 2 3 4
P R O C E S S
T A R G E T
Identify Consumers Who Can Get a Better Car for a Better Payment
T A R G E T
T A R G E T
via email, mail, phone and service lane
follow upsellmarket
1 2 3 4
P R O C E S S
target
Notify Consumers That They are Eligible to Upgrade to a Better Vehicle for a Better Payment Via Email, Mail, Website and Service Lane
Service lanephonemail email
M A R K E T
M A R K E T
using upgrade analysis presentation
on iPad, tablet, PC and print-out
follow upselltarget market
1 2 3 4
P R O C E S S
Vehicle Exchange Program
S E L L
Civic Civic
every month with personalized communication
for every customer
follow upselltarget market
1 2 43
P R O C E S S
P R O C E S S
T Y P I C A L G O A L R E S U L T S
Cars Sold 40 X 2,930 = 117,200
ROs on Trade 40 X 1,200 = 48,000
Sale on Trade 40 X 2,930 = 117,200
Total per month 282,400
X12
Total per year 3,388,800
2 – 4 % Total RO’s
Q E U S T I O N S
Thank You