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Turn slow sales months into high revenue with CRM best practices.
Auto dealers, like most businesses, face months that are traditionally slow in sales. If you can predict sales downturns in advance, you are in an advantageous position to focus resources on other areas of potential revenue. You can create revenue during slow sales months by mining your DMS and marketing to customers who may be in a position to spend money.
The most productive non-sales searches include:
1. Sold, Not Serviced
2. Serviced, Not Sold
3. Declined Service
4. Lost Service
5. Unsold Follow-Up
6. Happy Birthday Phone Call
7. Lost Service Customers
8. High Dollar Customer Pay RO’s
9. Service Contracts or Extended Warranties
Dealerships can integrate these search categories into their annual business practices, implementing them when the traditionally slowest sales months inevitably rear their ugly heads. Use this calendar foresight to alert general managers, service managers and sales managers that the time has come to focus on bringing in revenue from the above non-sales categories.
Below are statistics and advice provided by Reuben Muinos, director of marketing of DealerSocket MarketPlace. Muinos has more than twenty years of dealership experience.
Serviced Not Sold:
An average-size dealer can generate five to fifteen more deals per month when a dealer offers to purchase a prospect’s vehicle that was recently serviced but not bought from the dealer. Acquisitions of these vehicles can be far more profitable than buying the same model from an auction. This scenario is a win/win, benefitting the customer and the dealer.
I have observed an increase of 33% of be-backs when someone other than the salesperson from the dealership, or an outsourced third party, is used in the unsold follow-up process. Prices, products or salespeople are the most-often referenced issues cited by customers when a deal is not made. Customers are more apt to speak candidly with someone other than the salesperson.
Happy Birthday Call:
Although most salespeople fear this call, it is an effective way to reconnect with the customer. It’s important to make non-sales calls; it really does thrill the customer to get the call.
Lost Service Customers:
Marketing through multi channels (e-mail, mail, phone call) can generate $20 to $35 per customer record. Potentially, 1,000 lost customers brought in through multi-channel marketing can result in a $20,000 to $30,000 service revenue gain.
Greg Hammond, DealerSocket product manager, provided the following information from DealerSocket's CallCenter, based on typical results from a campaign list of 1,000 customers in each category.
No Service X Months
• 100-120 leads (appointments/hot leads/call backs)
• Service Revenues $50,000 within six weeks
• Retention of 15%Vehicle Buyback (Equity)
• 80-100 leads (50 appointments, the rest call backs and hot leads)
• 8-10 sales within six weeksServiced Not Sold• 100-120 leads (70 appointments)
• 8-10 sales within six weeksSold Not Serviced
• 160 leads (53 appointments)
• 15-20% retention within six weeksDeclined Service
• 130 actionable leads generated (28 appointments)
• $85,000 in service revenue generated within 6 weeks
Remember that implementing non-sales DMS-mining into your dealership’s annual business practices during slow sales months works. Now get back on the floor and make some money!
Hunter Swift is the Manager of Market Development at DealerSocket and has been with the company since 2005. In addition to his current role he has fulfilled the responsibilities of customer support, consulting, training, and sales. He specializes in helping dealerships improve processes through the use of CRM technology. Prior to DealerSocket he sold cars and is a graduate of Pepperdine University.
Follow him: @HunterSwift