Digital Dealer - November 2019 - 47

...THE GOAL IS TO STAY IN TOUCH WITH SOLD
CUSTOMERS, BRING THEM BACK FOR SERVICE AND
CONTINUE SERVICING THEM UNTIL THEY'RE READY
TO BUY AGAIN."
INCREASE REACH X
FREQUENCY

Many dealerships spend
a disproportionate amount
of their ORP budget on
email and direct mail, but
not all customers respond
to these channels. This
approach limits reach x
frequency of your communications. In marketing, it's
well known that the greater
your reach x frequency, the
greater the response rates
and ROI are.
The fact is most emails
today are deleted, but millions of people spend hours
a day on social media and/
or YouTube. Being able to
drop service reminders into
a Facebook or Instagram
feed, or include a video
pre-roll on YouTube will
increase the percentage
of your customers that see
your message.
BDC campaigns are
also highly effective and
worth the investment for
higher ticket repairs. And
believe it or not, direct mail
campaigns are still highly
effective for certain types of
communications, and tend
to reach a higher percentage of your customers than
email campaigns alone.
To increase the effectiveness of your ORP, add
an omnichannel strategy
that leverages customer
data and predictive analytics to deliver the right message to the right customer

via the right channel at the
right time.
3) MEASURE ROI OF
THE PROGRAM, NOT
CAMPAIGNS

Many dealers continue
to measure the ROI of individual service campaigns
based on dollars spent vs.
dollars generated. This approach fails to consider how
the overall ORP is working
towards its stated goals.

These campaigns may
not generate much ROI,
but they go a long way in
increasing loyalty and retention metrics.
Since the purpose of an
ORP is to increase customer retention, it makes sense
to measure ORP effectiveness by measuring and
tracking customer retention.
There are several ways to
do this; or you can use your

THE ONLY WAY TO
ACCURATELY PREDICT
A CUSTOMER'S NEED
IS TO BE ABLE TO
LEVERAGE CUSTOMER
DATA AND PREDICTIVE
ANALYTICS."
Customer loyalty can't be
measured by the number of
coupons redeemed.
The purpose of an ORP
is to build long-term relationships with your customers. Therefore, your ORP
should be used to deliver
frequent communications
so that you stay top of mind
between service visits.
To keep customers
engaged, you have to focus
on "what's in it for the customer," instead of "what's
in it for your dealership."
Educational information and
"thank you for servicing with
us" messages are great for
building customer relationships and trust.

own method.
Assign a loyalty score
to each customer in your
database, and track the
cumulative average of that
score over time.
Assign a status to
every customer, such as active, inactive or lost, based
on how long it's been since
the customer has visited
your dealership. The more
active customers you have,
the more effective your
ORP is.
Measure and track revenue per units-in-operation
($/UIO).
4) BE FLEXIBLE WITH
BUDGETING

Many dealers set ORP

D I G I TA L D E A L E R . C O M

marketing budgets based
on a random amount they
think is appropriate; such
as $1,000 for this email
campaign and $2,000 for
that direct mail campaign.
But when you put a
monetary cap on each
campaign, you're essentially telling some customers
they're less important than
others and that it's not
worth communicating to
them. Rather than limit the
spend, limit the number of
communications you send
out.
For every campaign,
review your strategy and
select the best communications and channels to
achieve your dealership's
goals. For example, if
retention is down, prioritize
service reminders and inactive customers instead of a
'New Car Thank You' piece
or other type of interim communication. If you're having
problems with the customer
experience or negative
reviews, emphasize CSI
and 'Thank You for Service'
pieces.
If you are on a budget,
consider what you are hoping to accomplish with your
overall marketing strategy.
Piecemeal, inconsistent
campaigns do not work and
send a fractured message
to customers. Choose the
best pieces that will make
your strategy work for you.
Continued on pg. 48

NOVEMBER 2019

47
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Digital Dealer - November 2019

Table of Contents for the Digital Edition of Digital Dealer - November 2019
