This document discusses strategies for maximizing profit from a dealership's existing customer database. It recommends focusing as much on retaining current customers as acquiring new ones. It promotes using data mining of the customer database to identify opportunities through targeted alerts, such as when customers are eligible to upgrade their vehicle or extend their warranty. Regular communication through email, direct mail, and other channels is encouraged to maintain relationships and identify sales opportunities over the long term.

1. Buried Treasure: Finding the Profit
Hidden in your database
with Julian Johnston
Senior Director of Product Consulting | AutoAlert
Julian.Johnston@AutoAlert.com

2. My Goal For Today
My goal is for all of you to go back to your
dealerships and place as much focus on
your current customer base as you do
conquesting new customers.

3. #1 GOAL
OUR
WILL ALWAYS BE
SELLING VEHICLES
MORE UPS + HIGH CLOSING RATIO
= MORE SALES
AND
A Pillar of Our Industry

4. The Shopping Funnel Has Turned Into…

5. …this. The Customer Journey

6. SRP/VD
P
SE
M CPM
PP
C
Social Media
Websit
SEO
Jack of All Trades

7. If I asked you…
• Number one lead source?
• Monthly Visitors on your website?
• How many of them were unique?
• What was the average bounce rate of your website?
• VDP vs. Homepage
• 3rd party vs. Targeted Ad
• Avg Response time on internet leads
• Closting ratio

8. Do you know are you
following up with your sold
customers?
The (Not So) Simple Question…

9. Sales 101
So, why aren’t we putting focus on this
part of our business?

10. Proctor and Gamble
Lifetime Value of Customer
[P&G Logos]
Lifetime Value of a Customer

11. Retention
OEM’s Focus on Retention
WE HAVE ALREADY GOTTEN THEM TO SAY: YES!
THAT’S THE HARDEST PART
AND

12. NADA AVG: $650
10,000 X 650 =
$6.5 Million
BUILDING
INVENTORY
STAFF
Your No. 1 Asset?

13. What are you doing to
maximize the profitability of
your database?
Your No. 1 Asset?

14. When was the last time you
did an audit on your CRM
Sold (Delivered) process?
Yes. Your CRM does Follow Up.

15. What is Data Mining?
• The practice of examining large databases in
order to generate new information
• The process of analyzing data from different
perspectives and summarizing it into useful
information - information that can be used to
increase revenue, cuts costs, or both.

16. What is Data Mining?
Using your data to
communicate value to
your current customers on
a consistent basis.

17. RE-ENGAGE OUR
DISENGAGED CUSTOMERS
Now is the time to
Our Customers Have Tuned Out

18. Equity position only tell us
part of the story.
Data Mining ≠ Equity Mining

19. Same lens as your customers

20. • Purchased
vehicle less that
two years ago.
• -$1700 of
inequity
• Currently paying
$956
• Been in service 8
times in 18
months
• Can lower
monthly payment
Custome
r B
Who would you rather call?
Custome
r A

21. • 6 payments left
on current
vehicle
• $4200 of equity
in vehicle.
• Currently paying
$234 a month
• An upgrade
would increase
monthly payment
by: $165
Custome
r B
Great opportunity?
Custome
r A

22. DMS DATA MARKETPLACE
READY TO BUY CONSUMERS
WHERE DMS & MARKETPLACE DATA MEET

23. $1500
OEM ADDS
INCENTIVE FOR
[MAKE, MODEL]
500 NEW CUSTOMERS
CREATING

24. Upgrade Alert
Mileage Alert
Warranty Alert
Service Alert
Contract Alert
Flex Alert
In-Market Alert
Customers can upgrade to a 2016/17 model for the same payment.
Your customer is in the service lane. Say hello, with a relevant offer in hand.
Upgrade Lease Customers to a 2016/17 model before mileage penalties occur.
Offer extended warranties, even if they did not purchase with you.
Be the first to know when contracts are ending on a lease or purchase.
Identify buyers who are eligible to trade now, trading their current vehicle for new.
Recognize shopping patterns that define a customer is READY TO BUY.
Custom OEM Alert Private Offers or Data Segment Alerts provided by OEMs.
Plenty of Revenue Streams, but…
TARGETED & SEGMENTED ALERTS

25. 25
Upgrade Alert
Mileage Alert
Warranty Alert
Service Alert
Contract Alert
Flex Alert
In-Market Alert
Customers can upgrade to a 2016/17 model for the same payment.
Your customer is in the service lane. Say hello, with a relevant offer in hand.
Upgrade Lease Customers to a 2016/17 model before mileage penalties occur.
Offer extended warranties, even if they did not purchase with you.
Be the first to know when contracts are ending on a lease or purchase.
Identify buyers who are eligible to trade now, trading their current vehicle for new.
Recognize shopping patterns that define a customer is READY TO BUY.
Custom OEM Alert Private Offers or Data Segment Alerts provided by OEMs.
TARGETED & SEGMENTED ALERTS
DID YOU KNOW?
15% - 20% OF YOUR DMS
CAN UPGRADE AND KEEP
THEIR PAYMENT THE SAME?
New Vehicle. Similar Monthly Payment.

26. First-Party
Audience
The Unknown
Shopper
Audience Segments $
SEM
 Not a current customer or has previously
purchased at your dealership.
 The unknown digital shopper = high costs for
your dealership.
 $600+ is the current average cost to obtain
an unknown customer.
 Current customer who knows and
trusts the dealership.
 Customer who has purchased in the past.
 A service customer but purchased at
another dealership
 Less than $150 cost to obtain, with the
highest profit potential.

27. • How do we let all of these
customers know about this
opportunity?
• How do we do it consistently
without burning them out?
The Data is Great. Now What?

28. Data Mining is a PROCESS
not a CAMPAIGN.
The Data is Great. Now What?

29. • Don’t burn through your database
• CRM Sold Process vs. Marketing budget
• Multi-Channel:
o Email
o Phone
o Mail
o Targeted Digital Ads
• Consistency is key!
PROCESS not a CAMPAIGN

30. Vehicle Buy Back

31. 31
Customers who have purchased
with you before and could trade
keys today at the same payment.
Mileage Alerts
10X
More likely to
convert
6XMore likely to
convert
Retail Contract End and
Retail Upgrade Offers are
Lease segments are up to
Vehicle Buy Back
SOLD CUSTOMERS
CONTRACT
LEASE
Hello, JOHN this is Julian Johnston from Ford.
I'm looking at your contract that shows 3 payments left on your 2011,
Taurus SEL and the payment is $447. Is this correct?
I'm calling because we have someone specifically interested in your
Taurus. As compensation to you, if we can give you a new Taurus
keeping your payments about the same, could we have your car back
today?

32. • Plant the seed early and often
• Consider adding “Vehicle Buy Back” to your vehicle
delivery process. Which does two things:
1. Plants the seed before they leave the store
2. Sets the stage for every conversation going forward
• WARNING: there is a burn rate for this type of message
Vehicle Buy Back

33. Millennials Calling Millennials?!

34. Millennials Calling Millennials?!
• I won’t even answer the phone when my family
calls, let alone an unknown number.
• …and I am not alone.
• Honestly, this isn’t even limited to millennials.
• What is your plan for this?

35. How to Let the 20% Know
• Phone
• Text Messaging
• Email
• Targeted Ads
• Mail

36. Email – Deliverability Issues
I know that half of my advertising
dollars are wasted….I just don’t
know which half.
- John Wannamaker

37. Email – The Battle For Attention

38. The King is Back – Direct Mail
• The Galpin Story
• Direct Mail is not dead. Junk Mail is
Dead.
• Majority Check Their Mail Everyday

39. FIRSTNAME][LAST NAME]
[ADDRESS]
[YEAR] [MAKE] [MODEL/TRIM]
[PAYMENT] [PAYMENTS REMAINING] [CONTRACT END DATE]
[ESTIMATED MILEAGE] [WARRANTY EXPIRATION]
[LAST SERVICE DATE]
• Consumers get
statements for
EVERYTHING
• You can easily send
one too…and should
• Much A/B testing
went into this format
Introducing The Statement…

40. 1.The Envelope and
Header
2.The Exclusively
Prepared
statement
3.The offer
Introducing The Statement…

41. • Story about the
statement + Laura
• The Ultimate Trojan
Horse
• Conditioning your
customers
• Bringing the process
together
Introducing The Statement…

42. Upgrade Alert
Mileage Alert
Warranty Alert
Service Alert
Contract Alert
Flex Alert
In-Market Alert
Customers can upgrade to a 2016/17 model for the same payment.
Your customer is in the service lane. Say hello, with a relevant offer in hand.
Upgrade Lease Customers to a 2016/17 model before mileage penalties occur.
Offer extended warranties, even if they did not purchase with you.
Be the first to know when contracts are ending on a lease or purchase.
Identify buyers who are eligible to trade now, trading their current vehicle for new.
Recognize shopping patterns that define a customer is READY TO BUY.
Custom OEM Alert Private Offers or Data Segment Alerts provided by OEMs.
Now That the Foundation Is Set
TARGETED & SEGMENTED ALERTS

43. 43
Upgrade Alert
Mileage Alert
Warranty Alert
Service Alert
Contract Alert
Flex Alert
In-Market Alert
Customers can upgrade to a 2016/17 model for the same payment.
Your customer is in the service lane. Say hello, with a relevant offer in hand.
Upgrade Lease Customers to a 2016/17 model before mileage penalties occur.
Offer extended warranties, even if they did not purchase with you.
Be the first to know when contracts are ending on a lease or purchase.
Identify buyers who are eligible to trade now, trading their current vehicle for new.
Recognize shopping patterns that define a customer is READY TO BUY.
Custom OEM Alert Private Offers or Data Segment Alerts provided by OEMs.
TARGETED & SEGMENTED ALERTS
Warranties: The Linchpin Nobody Is Talking About
DID YOU KNOW?
WHEN WARRANTY EXPIRES
CUSTOMER IS 80% MORE
LIKELY TO DEFECT FROM
YOUR BRAND

44. 44
Upgrade Alert
Mileage Alert
Warranty Alert
Service Alert
Contract Alert
Flex Alert
In-Market Alert
Customers can upgrade to a 2016/17 model for the same payment.
Your customer is in the service lane. Say hello, with a relevant offer in hand.
Upgrade Lease Customers to a 2016/17 model before mileage penalties occur.
Offer extended warranties, even if they did not purchase with you.
Be the first to know when contracts are ending on a lease or purchase.
Identify buyers who are eligible to trade now, trading their current vehicle for new.
Recognize shopping patterns that define a customer is READY TO BUY.
Custom OEM Alert Private Offers or Data Segment Alerts provided by OEMs.
TARGETED & SEGMENTED ALERTS
Upgrade Lease Customers to a 2016/17
model before mileage penalties occur.
41% Closing
Ratio
Lease Customers

45. 45
Upgrade Alert
Mileage Alert
Warranty Alert
Service Alert
Contract Alert
Flex Alert
In-Market Alert
Customers can upgrade to a 2016/17 model for the same payment.
Your customer is in the service lane. Say hello, with a relevant offer in hand.
Upgrade Lease Customers to a 2016/17 model before mileage penalties occur.
Offer extended warranties, even if they did not purchase with you.
Be the first to know when contracts are ending on a lease or purchase.
Identify buyers who are eligible to trade now, trading their current vehicle for new.
Recognize shopping patterns that define a customer is READY TO BUY.
Custom OEM Alert Private Offers or Data Segment Alerts provided by OEMs.
TARGETED & SEGMENTED ALERTS
You can even conquest with your data
DID YOU KNOW?
20% OF YOUR SERVICE
CUSTOMERS CAN UPGRADE
EVEN IF THEY DIDN’T BUY
FROM YOU

46. Customers who did not PURCHASE
4,900Avg Per Dealership
Soft Credit
Pull
50-100
people
These people come to the dealership every day.
You have the advantage because they are already
in your dealership.
Service Customers
How To Convert?

47. 47
Upgrade Alert
Mileage Alert
Warranty Alert
Service Alert
Contract Alert
Flex Alert
In-Market Alert
Customers can upgrade to a 2016/17 model for the same payment.
Your customer is in the service lane. Say hello, with a relevant offer in hand.
Upgrade Lease Customers to a 2016/17 model before mileage penalties occur.
Offer extended warranties, even if they did not purchase with you.
Be the first to know when contracts are ending on a lease or purchase.
Identify buyers who are eligible to trade now, trading their current vehicle for new.
Recognize shopping patterns that define a customer is READY TO BUY.
Custom OEM Alert Private Offers or Data Segment Alerts provided by OEMs.
TARGETED & SEGMENTED ALERTS
The Future Is Now
• In-Market Shopping Behavior
• Demographic Information
• Social Queues
• All make for a personalized
experience

48. • We will always be conquesting
• National Sales Decline
• The future has even more competition
• PUT FOCUS on your current customers
• If you don’t, you are doing all the hard work and not
reaping the benefits
2017 – Year of Retention

49. THANK YOU
Any Questions?