digital dealer: working smarter with less budget: how targeted marketing converts into higher sales...

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 BustilloGeneral ManagerRick Case Honda

C A S 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 A S E S T U D Y

• 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 - Challenges

Rick Case Honda

C A S E S T U D Y

Rick Case Honda – Challenges

S T R A T E G Y

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

Creating a Strategy

G O A L S

Build a comprehensive targeted and digital marketing strategy

“One Store for All Automotive Needs” (Not a Collection of Departments)

Creating a Strategy

S T R A T E G Y

Mass MarketingLower Sales Volume Lower ROILower Profit Per Deal

In MarketHigher Sales Volume Higher ROIHigher Profit Per Deal

Old Strategy Targeted StrategyVS

Creating a Strategy

We Bet 100% on a Targeted Strategy

S T R A T E G Y

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 A T E G Y

99%

Not In-Market

1%

In-Market

People | Process | Tools | Point of Sale Sales Retention | Service Retention | Remarketing | Referrals

Mass Market

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

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

T H E R I G H T M A R 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 L T S

Annual Service Growth in top Selling Zip Codes

2012 2013

7% Increase.5%

Increase

Annual Sales Growth in top Selling Zip Codes

2012 2013

13.5% Increase34%

Increase

2011

-1.4% Decrease

2011

-.2% Decrease

T H E R I G H T C U S T O M E R

ownership

service activity

demographics

geography

equity

DMSPOLK

VIOData

OEMIncentivesVehicle

Values

OEMData

Perfect Prospects

Customers Conquest

Customers with the highest statistical

probability of buying and servicing now

and in the future

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

P A I D S E A R C H

2012 2013

10.45%

Click Through Rate

2012 2013

3.53%

Conversion Rate

5.2%

2.94%

Conversions

2012 2013

4,727

827

Digital Marketing

R E S U L T S

38% of calls came

from a mobile device

272 Average Calls

per month

R E S U L T S

Without a thorough digital strategy, these calls wouldn’t

exist

?

R E S U L T S

Who says you can’t sell cars on Facebook

27,573 views in

2013

5,280 Page likes

18 million Impressions

In 2013

Reaching

8 million People

56,000Clicks in

2013

585Avg. likes per month

3,000photo viewsper month

$.51Avg. Cost Per Click

R E S U L T S

Annual Sales Growth Annual Service Growth

50,870

53,979

2012 20132011

7,352

7,459

2012 20132011

5,781 50,549

V E H I C L E E X C H A N G E

P R O C E S S

follow upselltarget market

1 2 3 4

consumers who can get a better car for a better

payment

follow upselltarget market

1 2 3 4

P R O C E S S

T A R G E T

Identify Consumers Who Can Get a Better Car for a Better Payment

T A R G E T

T A R G E T

via email, mail, phone and service lane

follow upsellmarket

1 2 3 4

P R O C E S S

target

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

Service lanephonemail email

M A R K E T

M A R K E T

using upgrade analysis presentation

on iPad, tablet, PC and print-out

follow upselltarget market

1 2 3 4

P R O C E S S

Vehicle Exchange Program

S E L L

Civic Civic

every month with personalized communication

for every customer

follow upselltarget market

1 2 43

P R O C E S S

P R O C E S S

T Y P I C A L G O A L R E S U L T 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 282,400

X12

Total per year 3,388,800

2 – 4 % Total RO’s

Q E U S T I O N S

Thank You