How to systematically keep in front of the likely customer

Direct marketing is the present and the future.  Even mediums that are not inherently direct marketing vehicles (TV, etc.) are looking to get something into the hands of the most likely buyer of your services.

With that in mind, imagine that the most comprehensive way would be to have your dealership’s message in front of everyone in your market (in their hands or on their computer screens) at least every other month.  In the case of Emails, probably multiple times in each 2 month period.

This could be cost prohibitive.

Let’s say there are 700,000 households in your dealership’s footprint (your market area that you have the majority of your sales and service customers).

From our experience, we know that a good mix of postal and email gets the best results. Postal because it’s hard to ignore if it’s big enough and email because it’s relatively inexpensive to get it front of people.

So, let’s say that you have arrived at the 1/3 postal, 2/3 email formula with emails going out twice to the perspective customers.

1/3 of 700,000 = 231,00

2/3 of 700,000 = 469,000

Postal:  at $.80 per piece delivered: 231,000 x $.80 = $184,800

Email: at $.045 per delivery with two times for each = $.09 per x 469,000 = $42,210

That is a total of $227,010 every two months to completely expose your footprint with your message on a consistent basis.

Stay with me here.  Let’s say that $227,010 every two months is not financially feasible, but you still want to approximate the results.  You can.  Behavioral data that tracks automotive purchase (new and used) and service interest should now be employed to eliminate the households that do not show this kind of interest.   In any given month, these ‘hand-raisers’ represent between 10% and 30% of the households depending on the month and depending on the market.  Our experience has shown that the average is somewhere in the 24% range.

So now you create a marketing list every two months that averages 24% of the 700,000 households = 168,000 households. Since research has shown that these ‘hand-raisers’ buy and service at about 7-9 times the rate as the non ‘hand-raisers’, we can glean from this that using the 168,000 households will return almost as much as the 700,000 households, but at a more affordable price.

Using the 1/3 2/3 formula above:

55,440 postal @ $.80 per =$44,352

112,560 email @ $.09 per = $10,130

Wait, there’s more, this can be reduced even further.  What about the brand you sell? What about the demand of the kind of used cars and service you perform?

By analyzing the attributes of your existing customer base (new/used sales and service) and looking for the statistically significant attributes that separate your customers from the population in general (in your area), a ‘map’ can be laid over the ‘hand-raiser’ data to eliminate those less likely to do business with you.

So now you can work with a new marketing manifest (list) every two months that is more in the range of 80,000 or 90,000 or 100,000 households to lower your cost of achieving almost the same results, but instead of spending over $200,000, you can spend $30,000 – $45,000!


About dealerite/in association with AP Level 4

National affiliations of professionals who are engaged in changing the culture of the automobile retail business. Associated with AP Level 4 and Edifice Group. These companies are bringing sustainable marketing which has proven quantifiable improvements in a dealer's market share performance
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