White Paper - Proactive Marketing
Marketing Strategy: Be Proactive Not Reactive
"Half of my advertising budget is wasted; I just don't know which half," is a famous quote by 20th Century Marketing Pioneer, John Wanamaker. Clearly he knew the difficulty of measuring the response to advertising. That was, however, just after the turn of the 20th Century. Since then marketing has improved exponentially, but really, how much has advertising allocation changed?
Dealerships spend a lot of unnecessary money in advertising hoping they can get more and more new customers each month as opposed to making deals with customers they already know. This strategy is called "spray and pray." Dealerships spend, on average, nearly 70% of their allocated advertising/marketing budget on fresh–up customers, forgetting about the potential reach that repeat customers have. What is the ROI from an internet/phone/fresh–up vs. repeat customers?
Through lead data, when a customer is a web–lead, dealerships only receive at most, their name, email address, vehicle, and maybe a phone number. From a phone–lead, dealerships receive a customer's number and maybe a name. For fresh–up customers, on average, only 30–40% of their information is logged into a CRM. But through repeat customers, dealerships have a slew of information at their disposal such as: name, address, phone number, inbound/outbound calls, texts, emails, current vehicle, service history, trade value, trade equity, and total dollars spent. See the potential?
Through today's technology with CRM and other marketing automation software solutions, proactive and personalized messaging is easier than ever before. Applying a proactive approach instead of a reactive approach to your marketing strategy, dealerships are able to pinpoint potential customers through the history already populated from the dealership's current database.
When a customer sends a web–lead they are in search of the lowest price available, which is why it is sent to multiple stores. What's the end result? Each store has to drastically drop their price to get the customer to buy from them or at least set foot onto the dealership. But when a dealership uses the data already within their database/CRM, they can create exclusive deals geared for a specific customer based on their equity, trade–in, service history, and much more.
A proactive approach would be finding customers in an equity position or that own a trade in high demand. By reaching out to these customers and presenting them an opportunity to get into a new vehicle for the same or similar monthly payment, we put them in the market where we are the only dealership they work with. This allows us to hold gross and increase our CSI scores.
Through data–mining products like RevenueRadar, dealerships have access to eleven different database queries called "radars" that are designed specifically to generate sales and service opportunities from existing customers. These "radars" run automatically and ping the dealership when their customers are in unique positions to spend throughout the ownership life cycle.
Communicating to customers about exclusive specials at specific times is a way to be proactive. The capability to inform the customer, "We are interested in buying your vehicle," before they are officially shopping for a vehicle using targeted data from your database/CRM, is realistic. Targeted data does exist, integrates and delivers results. During a targeted campaign to 700 customers in one month, $1300.00 was spent while $26000.00 came into the the dealership. Target marketing increases ROI. To learn more about using CRM and RevenueRadar for your marketing needs, contact 855–705–0469