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Working smarter
with less budget:
How targeted marketing converts
into higher sales and service
revenue
• Southeast Regional Vice President at Team Velocity Marketing
with over 17 years of experience in the automotive industry
• #1 in Client Retention and top Regional Sales Director
• Facilitated F&I sales and implementation of Business
Development Centers Nationally.
• ADP Dealer Services Division selling technology services to
major accounts as a Retail Solutions Manager and recognized
as one of the top Retail Solutions Directors in the Region.
• Business to Business sales with General Motors, Chrysler and
Nissan.
• Retail experience with Honda, Nissan and Porsche.
• Laura continues to work with widely recognized dealerships in
Southern Florida, such as Rick Case Honda, Braman
Motorcars, Germain Automotive and Brickell Motors.

Laura Howe
Regional Vice President
Team Velocity Marketing
• Operational leader of the largest Honda Dealership facility in
North America with a team of over 400 associates.
• Bustillo has been the GM at Rick Case Honda since 2008
• served as the GM at Germain Toyota Scion in Naples, Florida
from 2002 to 2008.
• South Motors Volkswagen Suzuki from 1999 through 2002
and has been an automotive professional for almost 20 years.
• Bustillo is a recognized expert in the hiring, training and
motivation of management and support personnel, along with
the creation of innovative sales and marketing approaches.

Richard Bustillo
General Manager
Rick Case Honda
C AS E

S T U D Y

Rick Case Honda - background
•

Privately held business

•

Opened in 2002

•

#1 Honda Dealer in the Southeast

•

Holds Honda national record for most new cars sold in
one month

•

Certified Retailer Award by J.D. Power and Associates
and rated “The Best of the Best in America.”
C AS E

S T U D Y

Rick Case Honda - Challenges
• Limited growth in Service Department – retention and
dollars per RO were good but they needed new customers
• Low response rate from typical email blasts, mailers, and
service reminders, etc…
• Aggressive Marketing from Competitive Brands
• Highly Transitional Geographic Area
• Multiple Vendors + Mixed Messaging
• Hit Plateau

Rick Case Honda
C AS E

S T U D Y

Rick Case Honda – Challenges
S T R AT E G Y

Creating a Strategy
Needed to be Cost Effective
Needed to be Sustainable
Needed to Help Grow Both Sales and Service
Needed to Retain Current Customers and Obtain New Customers
G O AL S

Creating a Strategy
Build a comprehensive targeted and digital marketing strategy
“One Store for All Automotive Needs”
(Not a Collection of Departments)
S T R AT E G Y

Creating a Strategy

Old Strategy
Mass Marketing
Lower Sales Volume
Lower ROI
Lower Profit Per Deal

VS

Targeted Strategy
In Market
Higher Sales Volume
Higher ROI
Higher Profit Per Deal
S T R AT E G Y

We Bet 100% on a Targeted Strategy
H O W

I T

W O R K S

Complete Sales & Service Strategy
T H E

R I G H T

S T R AT E G Y

99

%

Not In-Market

1

%

Mass Market

In-Market

Shift focus to in-market prospects,
not the general mass market.

Focus the message and mediums
to best reach in-market prospects

People | Process | Tools | Point of Sale

Sales Retention | Service Retention | Remarketing | Referrals
T H E

R I G H T

M AR K E T

• Looking Back to Look Forward
• Areas with Our Most Profitable Customers
• Those that Buy and Service with Us
• Areas that had the Highest Statistical
Probability for Growth
R E S U LT S

7%
.5%

34%

Increase

Increase

Increase
-.2%

Increase

-1.4%

Decrease

2011

13.5%

Decrease

2012

2013

Annual Service Growth in top
Selling Zip Codes

2011

2012

2013

Annual Sales Growth in top Selling
Zip Codes
T H E

R I G H T

C U S T O M E R
DMS

POLK

Vehicle
Values

VIO
Data

OEM
Data

OEM
Incentives

ownership
service activity
demographics

Customers with the highest statistical

geography
equity

probability of buying and servicing now
and in the future

Customers

Conquest

Perfect Prospects
T H E

R I G H T

O F F E R S

Every customer received
Sales and Service offers
Every customer received
communication monthly
Drove all traffic to the dealer
offersite
T H E

R I G H T

M E D I A

• One unified message through multiple
mediums
• Multiple calls to action
• Variable pricing based on customer activity
• Campaign conversion site houses all sales and
service offers
• Converted traffic at 3 times the dealer’s website
PAI D

S E AR C H

Digital Marketing

4,727
3.53%
10.45%
2.94%
827
2012

5.2%
2013

Conversions

2012

2013

Click Through Rate

2012

2013

Conversion Rate
R E S U LT S

38%
of calls came
from a
mobile device

272
Average Calls
per month
R E S U LT S

?
Without a
thorough digital
strategy, these
calls wouldn’t
exist
R E S U LT S

$.51

Reaching

Avg. Cost
Per Click

8 million
People

5,280

Who says you
can’t sell cars
on Facebook

Page likes

585
Avg. likes
per month

27,573
views in
2013

56,000
Clicks in
2013

3,000
photo views
per month

18 million
Impressions
In 2013
R E S U LT S

53,979
7,459
7,352
50,870
5,781

2011

50,549
2012

2013

Annual Sales Growth

2011

2012

2013

Annual Service Growth
V E H I C L E

E X C H AN G E
P R O C E S S

1

2

3

4

target

market

sell

follow up
P R O C E S S

1

2

3

4

target

market

sell

follow up

consumers who
can get a better
car for a better
payment
TAR G E T
TAR G E T

Identify Consumers Who Can Get a
Better Car for a Better Payment
TAR G E T
P R O C E S S

1

2

3

4

target

market

sell

follow up

via email, mail,
phone and
service lane
M AR K E T

Notify Consumers That They are Eligible to Upgrade to a Better Vehicle
for a Better Payment Via Email, Mail, Website and Service Lane

mail

email

phone

Service lane
M AR K E T
P R O C E S S

1

2

3

4

target

market

sell

follow up

using upgrade
analysis presentation
on iPad, tablet, PC
and print-out
S E L L

Civic

Civic

Vehicle Exchange Program
P R O C E S S

1

2

3

4

target

market

sell

follow up
every month with
personalized communication
for every customer
P R O C E S S
T Y P I C AL

G O AL

R E S U LT S

2 – 4 % Total RO’s

Cars Sold

40

X

2,930

=

117,200

ROs on Trade

40

X

1,200

=

48,000

Sale on Trade

40

X

2,930

=

117,200

Total per month
Total per year

282,400
X12
3,388,800
Q E U S T I O N S
Thank You

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Digital Dealer: Working smarter with less budget: How targeted marketing converts into higher sales and service revenue

  • 1. Working smarter with less budget: How targeted marketing converts into higher sales and service revenue
  • 2. • Southeast Regional Vice President at Team Velocity Marketing with over 17 years of experience in the automotive industry • #1 in Client Retention and top Regional Sales Director • Facilitated F&I sales and implementation of Business Development Centers Nationally. • ADP Dealer Services Division selling technology services to major accounts as a Retail Solutions Manager and recognized as one of the top Retail Solutions Directors in the Region. • Business to Business sales with General Motors, Chrysler and Nissan. • Retail experience with Honda, Nissan and Porsche. • Laura continues to work with widely recognized dealerships in Southern Florida, such as Rick Case Honda, Braman Motorcars, Germain Automotive and Brickell Motors. Laura Howe Regional Vice President Team Velocity Marketing
  • 3. • Operational leader of the largest Honda Dealership facility in North America with a team of over 400 associates. • Bustillo has been the GM at Rick Case Honda since 2008 • served as the GM at Germain Toyota Scion in Naples, Florida from 2002 to 2008. • South Motors Volkswagen Suzuki from 1999 through 2002 and has been an automotive professional for almost 20 years. • Bustillo is a recognized expert in the hiring, training and motivation of management and support personnel, along with the creation of innovative sales and marketing approaches. Richard Bustillo General Manager Rick Case Honda
  • 4. C AS E S T U D Y Rick Case Honda - background • Privately held business • Opened in 2002 • #1 Honda Dealer in the Southeast • Holds Honda national record for most new cars sold in one month • Certified Retailer Award by J.D. Power and Associates and rated “The Best of the Best in America.”
  • 5. C AS E S T U D Y Rick Case Honda - Challenges • Limited growth in Service Department – retention and dollars per RO were good but they needed new customers • Low response rate from typical email blasts, mailers, and service reminders, etc… • Aggressive Marketing from Competitive Brands • Highly Transitional Geographic Area • Multiple Vendors + Mixed Messaging • Hit Plateau Rick Case Honda
  • 6. C AS E S T U D Y Rick Case Honda – Challenges
  • 7. S T R AT E G Y Creating a Strategy Needed to be Cost Effective Needed to be Sustainable Needed to Help Grow Both Sales and Service Needed to Retain Current Customers and Obtain New Customers
  • 8. G O AL S Creating a Strategy Build a comprehensive targeted and digital marketing strategy “One Store for All Automotive Needs” (Not a Collection of Departments)
  • 9. S T R AT E G Y Creating a Strategy Old Strategy Mass Marketing Lower Sales Volume Lower ROI Lower Profit Per Deal VS Targeted Strategy In Market Higher Sales Volume Higher ROI Higher Profit Per Deal
  • 10. S T R AT E G Y We Bet 100% on a Targeted Strategy
  • 11. H O W I T W O R K S Complete Sales & Service Strategy
  • 12. T H E R I G H T S T R AT E G Y 99 % Not In-Market 1 % Mass Market In-Market Shift focus to in-market prospects, not the general mass market. Focus the message and mediums to best reach in-market prospects People | Process | Tools | Point of Sale Sales Retention | Service Retention | Remarketing | Referrals
  • 13. T H E R I G H T M AR K E T • Looking Back to Look Forward • Areas with Our Most Profitable Customers • Those that Buy and Service with Us • Areas that had the Highest Statistical Probability for Growth
  • 14. R E S U LT S 7% .5% 34% Increase Increase Increase -.2% Increase -1.4% Decrease 2011 13.5% Decrease 2012 2013 Annual Service Growth in top Selling Zip Codes 2011 2012 2013 Annual Sales Growth in top Selling Zip Codes
  • 15. T H E R I G H T C U S T O M E R DMS POLK Vehicle Values VIO Data OEM Data OEM Incentives ownership service activity demographics Customers with the highest statistical geography equity probability of buying and servicing now and in the future Customers Conquest Perfect Prospects
  • 16. T H E R I G H T O F F E R S Every customer received Sales and Service offers Every customer received communication monthly Drove all traffic to the dealer offersite
  • 17. T H E R I G H T M E D I A • One unified message through multiple mediums • Multiple calls to action • Variable pricing based on customer activity • Campaign conversion site houses all sales and service offers • Converted traffic at 3 times the dealer’s website
  • 18. PAI D S E AR C H Digital Marketing 4,727 3.53% 10.45% 2.94% 827 2012 5.2% 2013 Conversions 2012 2013 Click Through Rate 2012 2013 Conversion Rate
  • 19. R E S U LT S 38% of calls came from a mobile device 272 Average Calls per month
  • 20. R E S U LT S ? Without a thorough digital strategy, these calls wouldn’t exist
  • 21. R E S U LT S $.51 Reaching Avg. Cost Per Click 8 million People 5,280 Who says you can’t sell cars on Facebook Page likes 585 Avg. likes per month 27,573 views in 2013 56,000 Clicks in 2013 3,000 photo views per month 18 million Impressions In 2013
  • 22. R E S U LT S 53,979 7,459 7,352 50,870 5,781 2011 50,549 2012 2013 Annual Sales Growth 2011 2012 2013 Annual Service Growth
  • 23. V E H I C L E E X C H AN G E
  • 24. P R O C E S S 1 2 3 4 target market sell follow up
  • 25. P R O C E S S 1 2 3 4 target market sell follow up consumers who can get a better car for a better payment
  • 26. TAR G E T
  • 27. TAR G E T Identify Consumers Who Can Get a Better Car for a Better Payment
  • 28. TAR G E T
  • 29. P R O C E S S 1 2 3 4 target market sell follow up via email, mail, phone and service lane
  • 30. M AR K E T Notify Consumers That They are Eligible to Upgrade to a Better Vehicle for a Better Payment Via Email, Mail, Website and Service Lane mail email phone Service lane
  • 31. M AR K E T
  • 32. P R O C E S S 1 2 3 4 target market sell follow up using upgrade analysis presentation on iPad, tablet, PC and print-out
  • 33. S E L L Civic Civic Vehicle Exchange Program
  • 34. P R O C E S S 1 2 3 4 target market sell follow up every month with personalized communication for every customer
  • 35. P R O C E S S
  • 36. T Y P I C AL G O AL R E S U LT S 2 – 4 % Total RO’s Cars Sold 40 X 2,930 = 117,200 ROs on Trade 40 X 1,200 = 48,000 Sale on Trade 40 X 2,930 = 117,200 Total per month Total per year 282,400 X12 3,388,800
  • 37. Q E U S T I O N S

Editor's Notes

  1.  
  2. Met number of facebook likes in half the time requested!
  3. To a comprehensive set of in dealership point of sale material and technology to sell then when they arrived to dealership.
  4. To a comprehensive set of in dealership point of sale material and technology to sell then when they arrived to dealership.
  5. To a comprehensive set of in dealership point of sale material and technology to sell then when they arrived to dealership.
  6. To a comprehensive set of in dealership point of sale material and technology to sell then when they arrived to dealership.
  7. To a comprehensive set of in dealership point of sale material and technology to sell then when they arrived to dealership.