New Motors Increases Gross Profit with Auto Point Total Ownership Lifecycle Management

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Auto Point, Inc.,the pioneer of ownership lifecycle management services in the automotive industry, today announced that New Motors, a BMW, Volkswagen, Kia and Subaru dealership in Erie, PA, is enjoying a substantial increase in gross profit as a result of upgrading its customer promotions from pure direct mail to a system of total ownership lifecycle management.

postage kept rising and as most mail pieces don't get read, direct mail was becoming increasingly costly and ineffective. With Auto Point we have been able to cut our promotional expenses by about $1,500-2,000 per month, while increasing the response rate. Today's customer prefers to receive a voice mail or email on their smart phone, so it's more effective.

Auto Point, Inc., the pioneer of ownership lifecycle management services in the automotive industry, today announced that New Motors, a BMW, Volkswagen, Kia and Subaru dealership in Erie, PA, is enjoying a substantial increase in gross profit as a result of upgrading its customer promotions from pure direct mail to a system of total ownership lifecycle management.

In the month of April, using a combination of email and voice campaigns, a total of 13,356 messages were sent to its customer database, with a variety of messages ranging from "thank you for your purchase," to "time for service," to "we miss you". These campaigns have been extremely effective. In one example the dealership generated more than $16,000 in additional service revenue in April as a result of a single campaign targeting "lost souls", customers who hadn't been in the dealership for more than a year.

New Motors sells approximately 140 cars per month and averages 100 ROs per day, and is one of the larger dealerships in its market area. Previously, the dealership was using direct mail exclusively and according to general manager David Warren, the rising costs were making it prohibitively expensive, "postage kept rising and as most mail pieces don't get read, direct mail was becoming increasingly costly and ineffective. With Auto Point we have been able to cut our promotional expenses by about $1,500-2,000 per month, while increasing the response rate. Today's customer prefers to receive a voice mail or email on their smart phone, so it's more effective."

Using Auto Point, the dealership is now running 242 different campaigns with voice and email. As a result, the response rate has climbed from about 1 percent to over 12 percent.

Warren feels it would have been impossible to reach as many customers and produce the same results just using dealership personnel and resources. "With Auto Point we are producing superb results and managing multiple campaigns with speed and efficiency without having to add any manpower. To run a new sales or service special it's simply a matter of emailing the copy points to Auto Point and an email template is received back within 48 hours," Warren said.

The dealership runs multiple campaigns for both sales and service including service reminders, end of lease reminders, and one year anniversary calls. The campaigns have been particularly successful in the service department with a 20-25 percent increase in Repair Order count for January through April 2010.

Looking to the future, New Motors most recently added personal web pages for customers along with a loyalty points program. Personal web pages (PWP) are the perfect landing spot at which customers can both pick up targeted information and offer feedback. They can take their part in the social media revolution by providing another venue for that all-important "conversation" with customers, such as CSI surveys. The customer's PWP includes all of the information the dealer has about that customer and allows the customer to interact with the dealership and schedule services in a way that they prefer and will utilize.

The dealership promotes the personal web pages and the loyalty program with a form that is given to every customer at the time of vehicle delivery. It enrolls them in the loyalty program and if they open a PWP the customer instantly gains 50 points. "The PWP's and the loyalty program are really starting to take off -- In today's society if a consumer spends money they expect some sort of reward or benefit. With our Auto Point Loyalty Program, for every point they spend in service, the customer earns points for a future service or purchase. It provides an added incentive to use our dealership and stop defecting to jiffy lube," commented Warren.

ABOUT AUTO POINT;

Auto Point (http://www.autopointsite.com) is the originator of Lifecycle Management for automotive retailers, enabling dealers to create a single, unified communications process across all stages of the vehicle ownership lifecycle. For years, auto dealers have relied on highly fragmented solutions provided by multiple companies to communicate to their vehicle owner base. This is both expensive and inherently of poor quality. By allowing dealers to de-fragment their owner communications, Auto Point dealers can increase loyalty and repeat purchases while simultaneously reducing their marketing and communications expenses."For more information visit http://www.autopointsite.com or call: Susan Lovett at 800.997.1674 x2010.

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SARA CALLAHAN
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