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Selling 60% More Cars in Service at the #1 Honda Dealership in Sales. Rick Case Honda of Davie Increases Profitability with Integrated Marketing Strategy

Selling 60% More Cars in Service at the #1 Honda Dealership in Sales. Rick Case Honda of Davie Increases Profitability with Integrated Marketing Strategy

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  • 1. Success StoryRick Case HondaSelling 60% More Cars in Service at the #1 Honda Dealership in SalesRick Case Honda of Davie Increases Profitability with Integrated Marketing StrategyMany dealers face the ongoing challenge of how to The most successful dealers are using targeted and digital mediums that are less expensive, moreeffectively reach the right customers with the right measurable and give a better return on investmentmessage, bring those customers into their showrooms and than traditional mass marketing. The key to theirservice bays, and keep them coming back again and again. success is integrating all their targeted traditional and digital advertising to maximize results, but this can also present a challenge as the averageAs consumer behavior patterns have changed in recent dealer works with multiple vendors to execute their entire marketing strategy which results in differentyears, so has a dealer’s ability to attract and sell customers. strategies, messages and designs that too often areThe effectiveness of traditional mass marketing, TV, print not integrated with one another.and radio, has waned and given way to more successful One innovative and extremely successful dealership,marketing efforts that combine highly targeted traditional Rick Case Honda of Davie, the No. 1 Honda dealershipand digital components that include direct email and mail, in the Southeast and No. 3 for Honda nationally YTD, has taken things to the next level. They are not onlyinternet, mobile applications and more. Dealerships that integrating multiple marketing mediums to effectivelydo not understand these targeted traditional and digital attract, sell, service and retain more customers withmediums and how to successfully integrate them continue one marketing partner to execute their strategy, but they are selling customers right inside their ownto see diminishing returns with mass marketing which service bays – you can’t get much more targeted andremains costly and nearly impossible to measure. effective than that. Å CONTINUED INSIDE
  • 2. Success StoryÄ CONTINUED FROM THE COVER“We’ve increased sales in service by over 60 With their market more clearly defined, Rick be due for recommended maintenance,percent since launching this initiative back Case Honda of Davie began implementing and ongoing targeted email and mail salesin November 2011,” said Richard Bustillo, a comprehensive targeted and digital communications to customers in an equityGeneral Manager of the Davie store. “We marketing strategy using variable direct position. Using high-end creative campaigns,went from selling 45 units to 105 units per email and mail campaigns that consistently Rick Case Honda promotes its best salesmonth on average.” speak to customers throughout the offers with custom service offers that reflect 60-month life cycle of their vehicle with the service status of the customer’s vehicle.Their integrated strategy included many stepsthat began with a comprehensive five-year custom messaging that includes: a thank For example, active service customershistorical analysis of their sales and service you and welcome message for recent who routinely come in for service receive atransactions to determine customer trends. purchasers, maintenance reminders for $29.95 Oil & Filter Change coupon, whileThose findings were then compared to leading newer vehicles not yet in-equity but that may customers who are categorized as lost, orthird-party and industry data to establish who do not regularly service with Rick Caseconsumer patterns within their local market. Honda, receive the same offer but for $17.95 to encourage them to back.“Our retention rates and gross profit numbers “We’ve increased sales inwere already good and we were already mining service by over 60 percent since Rick Case Honda also aggressively targetsour own customer base, we just weren’t launching this initiative back in conquest service customers within theirexpanding it. I wasn’t satisfied because I saw an opportunity to do both,” said Bustillo. November 2011,”... “We went primary marketing area who own Hondas but did not buy from them. This is unique because from selling 45 units to 105The results of their assessment enabled Rick most dealers use the manufacturer’s service units per month on average.” marketing program which limits a dealer toCase Honda to identify vehicle owners withthe greatest probability of buying or servicing only communicate with customers that have RICHARD BUSTILLOwith their dealership, as well as identify same- purchased directly from their store and as a General Managerbrand owners who had never visited Rick result also limits the dealer from contacting RICK CASE HONDA OF DAVIECase Honda, and off-brand owners with a numerous conquest opportunities within theirhistorical pattern of crossing over to Honda. market. If a dealer only has 30 percent market
  • 3. Rick Case Hondashare, they are essentially missing out on an “We were servicing an average of 3,000 tools to improve their ownership experienceadditional 70 percent of the area’s service customers monthly with an average spend of and customer satisfaction. The Rick Casemarket. Rick Case Honda recognized the $350 per RO. Since implementing the Vehicle Honda Auto App features a one-click toopportunity to broaden its service marketing Exchange Program, we’ve increased our active roadside assistance, a car finder to help them program with conquest customers and has customer base by over 1,200 customers and find their vehicle in a crowded parking lot, a greatly expanded their reach of potential we average more than 3600 ROs a month parking meter alert, a flashlight, a gas savings service customers. now – that is what I call ROI,” said Bustillo. navigator, links to navigation and notifications “Plus, when you factor in the boost our that remind the customer when their vehicleAnother component to their strategy is that used car department has received from our is due for service and when they are able to increase in quality low mileage trade-ins and upgrade their car for the same payment or sellevery outbound targeted email and mail the $1,300 RO associated with reconditioning their car when they have equity. This free appcampaign directs customers to an online those vehicles to make them CPO units, this helps improve the ownership experience andCampaign Conversion Site that not only gets really exciting.” encourages an ongoing relationship betweendisplays the featured promotions of the email the customer and the dealership.or mail campaign they have just received, but “Everyone focuses on the new car salesalso shows them every sales and service offer numbers but that’s only part of the story. The Once a customer takes delivery, Rick Casethat Rick Case Honda is currently running. If a real beauty of this program is that it generates Honda stays in contact with them by thankingcustomer is not in the market for the specific revenue for all three of our major profit them for buying and asking for referrals andoffers they just received they can check Rick centers. It increases our new car volume. It online reviews, which helps to build theirCase Honda’s campaign conversion site, increases our service revenue because of the reputation when consumers search for themwww.rickcasehondaoffers.com for other reconditioning required to turn a trade-in into online. They now regularly receive over 200available offers. a retail unit, and it has a huge impact on our positive online reviews every month. used car business because it allows us to take“This site is invaluable, it’s professional, in hard-to-find used cars for less than what To measure the effectiveness of all theirit ties in with all our sales and service our competition has to pay at auction. This marketing strategies and ensure qualitypromotions and we’ve seen an increase in allows us to make more money on every unit customer care, Rick Case Honda uses a call-the customer traffic printing coupons from even though our pricing is very competitive,” monitoring system to track their advertising,the site,” said Bustillo. “Plus it’s completely explained Bustillo. Overall Rick Case Honda’s employees, and how their customers arelow maintenance for us because it’s updated certified pre-owned sales are up 50 percent. treated by listening to every call that comesevery month by our marketing company.” into their dealership. They receive daily,Their advertising message is further “We no longer look at our customers as ‘Sales weekly and monthly reports that enablesupported by POS merchandising throughout Customers’ or ‘Service Customers’ they’re them to see which ad campaigns generatethe store that validates the promotion the all Rick Case Honda customers. Unifying our the best response and pre-empt any potentialcustomer recently saw online or received efforts has allowed us to get very good at doing customer concerns before they escalate – one thing many times versus doing several which improves their overall CSI and helpsin the mail, like Rick Case Honda of Davie’s things once,” said Bustillo. create lifelong satisfied customers.“Vehicle Exchange Program”. “The best customer any dealer can find is Spend more than five minutes with Bustillo Their Vehicle Exchange Program is integrated one they already have because customers and his team and you will see that there areacross their targeted direct mail and who have an active service relationship with a lot of things happening at Rick Case Hondaemail, web site, campaign conversion site, a dealership are seven times more likely to of Davie. They have great facilities and a lot ofshowroom and service lanes and has helped purchase with that dealership,” said Buddthem increase sales from inside service inventory; however, you will see that what pulls Blackburn, owner of Team Velocity Marketing,over 60 percent, from 45 to 105 units per all these moving parts together and attracts the company that Rick Case Honda uses formonth, and total RO counts are up by over customers to the dealership is not just their their sales and service marketing.30 percent, when compared to the same state-of-the-art facilities and highly reputableperiod last year. They are the No. 1 Honda Rick Case Honda also provides customers products, it’s a winning strategy created with adealership in the country for net profit and with a free mobile app that is custom branded proven marketing partner and executed by aNo. 1 in volume for the month of June. for their store. This app gives the customer free dynamic and dedicated team. Success Story
  • 4. Success Story Rick Case Honda “WE WERE SERVICING AN AVERAGE OF 3,000 CUSTOMERS MONTHLY WITH AN AVERAGE SPEND OF $350 PER RO. SINCE IMPLEMENTING THE VEHICLE EXCHANGE PROGRAM, WE’VE INCREASED OUR ACTIVE CUSTOMER BASE BY OVER 1,200 CUSTOMERS AND WE AVERAGE MORE THAN 3600 ROS A MONTH NOW – THAT IS WHAT I CALL ROI,” -RICHARD BUSTILLO GENERAL MANAGER OF RICK CASE HONDA, DAVIE SPEAKING ABOUT THEIR CAMPAIGN CONVERSION SITE IN A NUTSHELL Selling 60% More Cars in Service at the #1 Honda Dealership in Sales Rick Case Honda of Davie Increases Profitability with Integrated Marketing Strategy • Define your ideal local market by finding the perfect customers and prospects with the highest statistical probability of buying and/or servicing with your dealership now and in the future. • Create dynamic, cohesive campaigns that consistently speak to your customers throughout the 60-month lifecycle of their vehicle. • Consistently target in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands you sell. • Drive consumer traffic to a custom campaign conversion site that promotes all your sales and service offers to help increase your internet sales and service leads. • Establish a sales-in-service program to sell vehicles from your own service bays for your in-equity customers before they shop the competition. • Provide free mobile apps to improve the customer ownership experience and encourage ongoing owner participation with the dealership – creating customers with the highest lifetime value for your dealership. • Monitor inbound calls so you know what ads are generating better response rates and pre-empt CSI issues before they escalate. • Work with a marketing partner like Team Velocity Marketing www.teamvelocitymarketing.com to implement an integrated targeted and digital marketing strategy across multiple mediums that promote all your profit centers, new, used, finance, service and parts. Å READ FULL STORY