Digital Dealer - April 2020 - 33

or ignored - all this data can
craft the next offer that's more
relevant for that customer.

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
the reach x frequency of your

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. Even direct
mail campaigns are still
effective for certain types of
communications and often
reach a higher percentage of
your customers than email
campaigns alone.

service campaigns based
on dollars spent vs. dollars
generated. This approach fails
to consider how the overall ORP
is working towards its stated
goals. You cannot measure
customer loyalty 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

These campaigns may not
generate immediate 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
monitor ORP effectiveness
by measuring and tracking
customer retention. There are
several ways to do this.
One way to measure
customer retention is to assign

" Predictive analytics automatically generates the best offer for a
customer based on that person's previous actions and behavior.
"
communications. In marketing,
it's well known that the greater
your reach x frequency, the
greater your response rates
and ROI are.
While email campaigns can
be effective, 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

April 2020

To increase the effectiveness
of your ORP, expand media
channels, and use an
omnichannel strategy to deliver
the right message to the right
customer via the right channel
at the right time.

Measure ROI with the
Right Metrics

Many dealers continue to
measure the ROI of individual

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.

a loyalty score to each customer
in your database and then track
the cumulative average of that
score over time. Another way is
to assign a status to a customer,
such as inactive, active, or lost,
based on how long it's been
since the customer visited your
dealership. The more active
customers you have, the more
effective your ORP strategy
is.

[ d i g i t a l d e a l e r. c o m ]

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