Mike Gorun

Company: Performance Loyalty Group, Inc

Mike Gorun Blog
Total Posts: 266    

Mike Gorun

Performance Loyalty Group, Inc

Oct 10, 2016

Digital Car Buyers Mean More Showroom Traffic, Not Less

There’s a big push in our industry right now to bring as much of the car buying process online as possible. Startups are entering the space believing that consumers want this ability and automotive vendors of all sizes are creating products to facilitate that.

However, some dealers are afraid to adopt these solutions for fear of loss of control and decreased profits. It’s certainly much easier to sell product – especially the increasingly important products in F&I – if the customer is sitting in front of you, rather than through some website widget.

Today’s car buyers visit numerous websites to gather information about vehicles and many arrive at the dealership knowing which vehicle they want and exactly what they want to pay for it. That’s not going to change. But what if I told you that the more “digital” car buyers get, the more they actually want to visit your showroom? Well, according to a recent study by Accenture, that’s exactly what’s happening.

According to the study, 60 percent of digital car buyers stop at the dealership more than twice before buying a vehicle, compared to 47 percent of those consumers less active online in the car buying process.

The ability to complete some of the car buying process online is simply a way for the digital customer to reduce the amount of time spent physically at the dealership completing the transaction. The report suggests that the reason the digital customer needs less time at the dealership is that they’ve already made their purchase decision online. But there seems to be a contradiction here – how can a digital customer visit the dealership more, yet need less time at the dealership? The reason is that by the point that they’re ready to buy they have already gathered the information they needed through digital sources AND have visited the dealership multiple times in order to collect physical information (view colors in person, ask questions, compare trim levels in person, test drive vehicles, have their trade-in appraised etc.). So, at the point they’re ready to buy, those widgets and online car buying facilitation tools simply help them get ahead in the process.

However, decreased time at your dealership means you have less time to create a relationship with the customer. If the industry transforms into a straight transaction-based business, then the customer could potentially have no more loyalty to your dealership than your competition.

How do you build a relationship with a customer who wants to spend less time buying a car? You begin to build that relationship from the moment the customer walks in the door. According to the study, it’s much more likely that the customer you just greeted is a digital car buyer than a conventional one. Yet, in many cases, our current road to the sale focuses on exactly that… the sale. Most manager introductions, service drive walks and other relationship-building opportunities for dealerships happen AFTER the sale. If you have a digital car buyer, you may not have as much of an opportunity to do these things.

Start building value in your dealership from the moment the customer walks in the door. Consider integrating service walks and manager introductions into the beginning of the sales process, not after the customer buys a vehicle.

Perhaps then you have a better chance of convincing the customer that they should buy from you and should also bring their vehicle back for service.

If they already know what they want, how much they want to pay for it; what their trade-in is worth; and every other piece of information; then why start the whole process trying to give them something they already have? How about selling the dealership first?

As online vehicle buying tools become more utilized, this simple tweak in the initial contact with a customer could mean the difference between seeing them again…

…or having them visit the most convenient competitor.

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

1113

No Comments

Mike Gorun

Performance Loyalty Group, Inc

Feb 2, 2013

Five Tips for Successful E-Mail Acquisition

Targeted e-mail campaigns are still one of the most effective forms of marketing, and marketers say that e-mail is still a strong performer as a generator of both website traffic and revenue. Experian recently released a white paper titled, “E-Mail Market Study: Acquisition and Engagement Tactics.”

E-mail engagement proves your subscribers are interested in your brand and the content you are delivering. Email marketers are using new methods for email engagement and also improving upon older methods to gain a greater understanding of their customers needs and wants.

Here are some interesting facts and best practices from the white paper:

1) Point of Sale is the Best Place to Collect E-mail Addresses

• Seventy-eight percent of retail brands use sales associates to collect email addresses.

   • Thirty-six percent of brands collect email addresses on paper (not recommended due to spelling errors)

  • The majority of marketers (73 percent) source and track email addresses acquired at point of sale differently than other addresses

   • Thirty-three percent of marketers report that more than 25 percent of their customers are willing to provide their email address at point of sale

2) Use Incentive Signs at Your Cash Register A successful example Urban Outfitters used was “Ask to be signed up for our e-mails and receive 10% off your next purchase.” This tactic would be most effective in the service department. Post a sign in your waiting room or at the cash register offering an incentive to sign up for your e-mails.

3) Use Pop-Up Windows Pop-up windows on websites are one of the most aggressive and successful method for e-mail address acquisition. When Sport Chalet installed a pop-up window on their website saying “Sign up for Our E-mails,” they experienced an 84% increase in the total number of valid e-mail addresses and a 39% increase in total opens. If this isn’t an option on your site, offer e-mail opt-ins in several places across your website. Experian finds that above-the-fold opt-in locations perform better than those below the fold.

4) Use Opt-Out Surveys Opt out surveys are used after a customer opts-out of your emails, and can help identify why your customers are dropping off your list. Ask questions like:

   • Do they not like the time of day they’re receiving emails?

   • Have they had a life change that would make them unsubscribe?

  • Do they not like the frequency with which they receive your messages?

  • Do they find your content interesting or useful? The answers to these questions can help steer your program in the right direction

5) Use Subject Line Testing Companies surveyed agreed that subject line testing wins when it comes to results. Over time, if subject line testing is done correctly and consistently, open rates can improve significantly. With today’s sophisticated CRMs, subject line testing on different groups can be accomplished very easily. Every marketer should make this type of testing a common practice.

What are your best practices and recommendations for e-mail acquisition? What has worked and what hasn’t?

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

4111

3 Comments

Quentin Averill

Bayview Chrysler Dodge

Feb 2, 2013  

Good article, however, I do find it frustrating when writers assume that I know what accronyms (CRM) stand for and what terms like "Subject Line Testing" mean.

BRUCE HARTZ

BOB BELL AUTOMOTIVE

Feb 2, 2013  

Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. It provides a 360 degree view of customer data. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support Subject Line Testing is simply trying different Subject Lines in your emails to test the open rates of the emails

Mike Gorun

Performance Loyalty Group, Inc

Feb 2, 2013  

I apologize for any confusion, Quentin. Here is a link that may help you write a great email subject line, (http://marketingland.com/3-steps-to-writing-a-better-subject-line-8781). Thank you for clarifying, Bruce.

Mike Gorun

Performance Loyalty Group, Inc

Feb 2, 2013

Five Tips for Successful E-Mail Acquisition

Targeted e-mail campaigns are still one of the most effective forms of marketing, and marketers say that e-mail is still a strong performer as a generator of both website traffic and revenue. Experian recently released a white paper titled, “E-Mail Market Study: Acquisition and Engagement Tactics.”

E-mail engagement proves your subscribers are interested in your brand and the content you are delivering. Email marketers are using new methods for email engagement and also improving upon older methods to gain a greater understanding of their customers needs and wants.

Here are some interesting facts and best practices from the white paper:

1) Point of Sale is the Best Place to Collect E-mail Addresses

• Seventy-eight percent of retail brands use sales associates to collect email addresses.

   • Thirty-six percent of brands collect email addresses on paper (not recommended due to spelling errors)

  • The majority of marketers (73 percent) source and track email addresses acquired at point of sale differently than other addresses

   • Thirty-three percent of marketers report that more than 25 percent of their customers are willing to provide their email address at point of sale

2) Use Incentive Signs at Your Cash Register A successful example Urban Outfitters used was “Ask to be signed up for our e-mails and receive 10% off your next purchase.” This tactic would be most effective in the service department. Post a sign in your waiting room or at the cash register offering an incentive to sign up for your e-mails.

3) Use Pop-Up Windows Pop-up windows on websites are one of the most aggressive and successful method for e-mail address acquisition. When Sport Chalet installed a pop-up window on their website saying “Sign up for Our E-mails,” they experienced an 84% increase in the total number of valid e-mail addresses and a 39% increase in total opens. If this isn’t an option on your site, offer e-mail opt-ins in several places across your website. Experian finds that above-the-fold opt-in locations perform better than those below the fold.

4) Use Opt-Out Surveys Opt out surveys are used after a customer opts-out of your emails, and can help identify why your customers are dropping off your list. Ask questions like:

   • Do they not like the time of day they’re receiving emails?

   • Have they had a life change that would make them unsubscribe?

  • Do they not like the frequency with which they receive your messages?

  • Do they find your content interesting or useful? The answers to these questions can help steer your program in the right direction

5) Use Subject Line Testing Companies surveyed agreed that subject line testing wins when it comes to results. Over time, if subject line testing is done correctly and consistently, open rates can improve significantly. With today’s sophisticated CRMs, subject line testing on different groups can be accomplished very easily. Every marketer should make this type of testing a common practice.

What are your best practices and recommendations for e-mail acquisition? What has worked and what hasn’t?

Mike Gorun

Performance Loyalty Group, Inc

Managing Partner/CEO

4111

3 Comments

Quentin Averill

Bayview Chrysler Dodge

Feb 2, 2013  

Good article, however, I do find it frustrating when writers assume that I know what accronyms (CRM) stand for and what terms like "Subject Line Testing" mean.

BRUCE HARTZ

BOB BELL AUTOMOTIVE

Feb 2, 2013  

Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. It provides a 360 degree view of customer data. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support Subject Line Testing is simply trying different Subject Lines in your emails to test the open rates of the emails

Mike Gorun

Performance Loyalty Group, Inc

Feb 2, 2013  

I apologize for any confusion, Quentin. Here is a link that may help you write a great email subject line, (http://marketingland.com/3-steps-to-writing-a-better-subject-line-8781). Thank you for clarifying, Bruce.

  Per Page: