Automotive News - October 10, 2016 - Supplement - S8
target
marketing:
tools that
drive results
Every day, at auto dealerships across the
nation customers drive onto the lot, interact
with dealership staff and leave without ever
talking about buying or leasing a car.
Those customers are there to have their vehicles
serviced, but they could represent opportunities for
the sales department, especially for dealer staff armed
with enough customer information to close a deal.
Current products can determine how many payments are left on a customer's existing vehicle and his or
her positive equity and creditworthiness to then match
the potential buyer to a vehicle in the dealer's inventory.
The Performance Development Center (PDC), the
training and consulting arm for F&I company JM&A
Group, has a data-mining and targeted digital marketing tool, called AutoSales2, that extracts that type of
data. Customers' credit scores are not impacted by the
credit check because what's run is a soft pull, explains
Justina Davis, assistant vice president of the PDC.
Through JM&A's partnership with credit rating
agency Experian, AutoSales2 supplies data to dealers
on customers who leased or purchased a vehicle from
their store, as well as information on prospective customers who may have leased or purchased vehicles
elsewhere.
That group includes car buyers who may have
moved from another market, those who bought a
vehicle at a competitor but popped in for a free oil
8 / JM&A GROUP / OCT '16
<9ধ2!!=-9
8'+;!80'@
change promotion, or consumers whose vehicle profile is comparable
to the dealer's inventory.
"In a given day, consumers who bought their vehicles somewhere
else account for about half of a dealer's repair orders," says Greg Starkey, manager of Sales and Implementation for AutoSales2. "For a dealer, converting them to buyers represents a great feat."
Starkey adds that an average dealer has anywhere from 50 to
100 repair orders in a day. Of that total, about half are the dealer's
car-buying customers and the other half are conquest opportunities. When the proper process is in place, retention increases, as does
a dealer's competitive advantage.
JM&A researched 1,000 dealers and discovered the customer
retention rate was about 18 to 22 percent, leaving a large part of
the pie still out there. As Starkey points out, every OEM wants a
customer for life and it's always easier to keep a customer than to
find a new one.
Dealers who use AutoSales2 typically have an increase in auto
sales of 10 to 30 percent, Davis adds, and sales of ancillary products,
such as service contracts, also see a spike. It's also another way to
shorten the ownership cycle since car owners are holding onto their
vehicles for an average of 11 years, according to the U.S. Department of Transportation.
AutoSales2 also provides dealers with more accurate data to target
customers, whether or not they visit a store's service drive and regardless of when. In the past, dealers used a shotgun approach, mailing cards
in bulk to as many past customers as they could find.
"Dealers spend hundreds of thousands of dollars a
year in advertising using information that is often out of
date," Davis says. "I'm still getting marketing pieces for a
vehicle I owned three vehicles ago. Through AutoSales2,
we know what the customer has and doesn't have."
Automation gives dealers more robust data versus a
typical equity solution that is predominantly manual in
nature. This allows associates to spend more time engaging with customers and less time in front of a computer screen. The information provided by AutoSales2
also gives dealers another channel to obtain high-quality used cars versus relying mainly on auctions.
"If the customer doesn't want to buy or lease a car,
that's fine," says Starkey. "But if I call you and I am offering to buy your trade, there's a better chance you'll
be interested, and also need to replace it."
Davis says customers who may not have been
thinking of buying or leasing a different vehicle have
been receptive when approached by dealers: "Most
customers are excited to possibly save money and get
into a newer vehicle, and when a dealer uses the right
tools to reach buyers beyond their database, they increase opportunities every day."
*
Table of Contents for the Digital Edition of Automotive News - October 10, 2016 - Supplement
Contents
Automotive News - October 10, 2016 - Supplement - Intro
Automotive News - October 10, 2016 - Supplement - S1
Automotive News - October 10, 2016 - Supplement - S2
Automotive News - October 10, 2016 - Supplement - Contents
Automotive News - October 10, 2016 - Supplement - S4
Automotive News - October 10, 2016 - Supplement - S5
Automotive News - October 10, 2016 - Supplement - S6
Automotive News - October 10, 2016 - Supplement - S7
Automotive News - October 10, 2016 - Supplement - S8
Automotive News - October 10, 2016 - Supplement - S9
Automotive News - October 10, 2016 - Supplement - S10
Automotive News - October 10, 2016 - Supplement - S11
Automotive News - October 10, 2016 - Supplement - S12
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