Even a small volume store in a small market can make big waves with database marketing. I just spent a couple of days with a very forward-thinking dealer in Pocomoke City, MD. This dealer is in a small rural market with limited growth potential and a tight advertising budget for six franchises.
Given the situation, the dealer and his G.M. have decided they have to be far more effective with each and every selling opportunity. No potential sale can be left to mere chance, and a 20% close ratio just won't make the grade anymore. Every advertising investment must be tracked for ROI and leveraged. Every opportunity must be worked from several angles.
To begin with, they are making every salesperson a data collection expert by arming them with a simple but very effective up-ticket. Next, they have created a team of two people, situated right on the showroom floor, to monitor all floor and phone traffic, collect the up-tickets, enter them into a specially designed computer tracking program, and personally follow-up with every be-back and phone-up within 24 hours.
By using these simple but effective methods, every person who has contact with the dealership will be surveyed as to the advertising source that brought them in, what they are looking for and when they will be in the market to purchase. Additionally, the up-ticket will track how far the up went in the selling process and what the next step is.
Before any up leaves the dealership, the sales person is required to introduce them to a sales manager or F&I manager to make sure there is nothing else that needs to be explored or discussed. The up will be thanked for coming, and will be given a small, useful gift with the dealership's name printed on it.
The up-ticket will then be handed over to the specialized marketing team that will follow-up by phone within 24 hours to see where they are in the buying cycle, and if they can schedule them for an appointment to come back and pick-up where they left off. No matter what, the up will be sent a thank-you letter within 24 hours of their visit.
Next, the specialized marketing team will personally call every past customer in order to set an appointment to see the new models and look at the current incentive pricing. Every person with an expiring lease contract will be phoned to set an appointment to discuss their end-of-lease options. Every company, governmental body and educational facility within a 30-mile radius will be contacted to discuss their fleet, corporate vehicles and service needs. Every insurance appraiser will be contacted to discuss their needs for competitive, professional, guaranteed body repair.
Now that they have a tight data collection and a tracking and follow-up system, they are ready to be pro-active in the advertising arena. Every single household within the designated market area will receive a "Catalog of Cars" on a monthly basis, which will provide current pricing, incentives, rebates, interest rates, lease payments and photographs of every model from 6 franchises. And every used vehicle will have a photograph, price, payment and complete description. There will be information, articles and testimonials about subprime financing opportunities. There will newspaper-style articles about service and body repair. There will be coupons, photographs of happy customers and reprints of testimonial letters from the community.
Imagine the potential from tracking, surveying and following-up with every single floor and phone-up, every single past customer and every potential customer in your community. Imagine not having to rely upon using the right media mix, reps, rate cards and rotations, because now you've created your own advertising vehicle. A vehicle far more effective and flexible than the ones you once paid dearly for and received far fewer results from. Imagine being in control of who receives your advertising, when they receive it and having no time or space limitations.
Imagine knowing what and when people in your market will be buying or leasing.
This is all possible without spending a fortune and without selling your soul to over-priced consultants. The rural dealer can once again maintain and even grow his dominance in the marketplace and give the urban mega-dealers a real run for their money.