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Jared Hamilton
From: Jared Hamilton
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Mike Gorun

Mike Gorun Managing Partner/CEO

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Simple Summer Service Email Campaign Drives Profits at Auto Dealerships

 

I have written several blogs in the past about the success of customer loyalty program promotions in auto dealerships. I am mainly interested in cost-effective actions that dealers can successfully use to help drive profits.

 

A recent Summer Service Special email promotion designed and delivered by LoyaltyTrac, a leading points-based loyalty program provider, caught my eye because of the high success rate. It had a remarkable open rate of over 26% and also produced a substantial amount of service appointment bookings and profit – the campaign returned excellent results.

 

Ad agency quality emails were sent to a highly targeted group of reward program members, with the direct Subject Line: “Sizzling Summer Specials – Oil Change and A/C”.

 

The email was short and to the point and also included a link to make it easy for the reader to immediately schedule a service appointment with just a click of the mouse.

 

Richfield Bloomington Honda sent out 5,803 messages of which 1,542 were opened – a very healthy open rate of 26.57% -- double the DMA (Direct Marketing Association) average of 12-14% for opt-in lists. As a result the dealership scheduled 60 service appointments online – just by having the “Click Here to Schedule Service” button visible and distinct. This email campaign generated more than $14,000 in revenue in one week – and this is just from the customers who booked directly through the email!

 

Jason Weverka, Service Manager at Richfield Bloomington Honda, stated “We are having a great response on the campaign. A lot of people are coming in with the printed offer; it has been very successful. I really liked the oil change and the A/C specials for the summer.”

 

Glenbrook Hyundai ran the same campaign to a smaller customer base. It sent out 915 emails of which 246 were opened – again a great open rate of 26.89%.  The campaign also resulted in 16 service appointments scheduled to date online.

As these results show, communicating seasonal offers to your customers can be highly effective. Customers welcome relevant messages that have value to them. The key is to send well-written, targeted messages to the right people at the right time. Keep it short and to the point. Engage users with a straightforward email subject line and content that is informative, easy to digest and adds perceived value.

Jim Bell
Thanks for the great ideas Mike. So many dealers get so focused on the front end of the business and forget about the fixed ops, the life and blood of the dealership.

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