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for Customer Retention
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Customer Retention for Services Marketing
We've been talking to service directors and managers, general managers and dealer principals, technicians and service BDC management, and these are the issues within fixed ops they've outlined:
- There is a tremendous opportunity to sell more service in North America today
- Managers need to understand better where their ad spend is going
- OEM marketing is a boon to dealers, but it is ultimately the dealer that owns the customer relationship
The opportunity – battle for the service customer
It's no secret that third-party service outlets have captured a significant portion of the DIFM (Do It For Me) service market, especially out-of-warranty customer pay work.
It’s not all doom and gloom, because dealers willing to compete with the independents have a lot of tools at their disposal.
After all, the dealer has initiated the relationship and already has data on the customer, vehicle, service interaction, and purchase behavior. This data can be put to use through customer analytics.
Understanding services marketing
Every month, dealers are spending thousands of dollars on advertising.
And let's face it, most PPC platforms are designed to suck money from your bank account as efficiently as possible.
It doesn't have to be this way.
By all means, use the tools available. Digital advertising is essential, but if you don't know who to target when to
target them and with what offer to target them, you're wasting money.
Taking responsibility and working with the OEM partners
OEMs and importers know a lot about your customers. They can aggregate data over their regional dealer network to send service reminders and coupons on your behalf.
But at the end of the day, it's your customer. Never lose or cede the right to communicate with your customer base, not to the OEM and not to any digital ad platform.
Dealers that want to can and should retain their service customers, fostering loyalty at the dealership level.
Especially if you're a multi-brand dealership, you cannot and should not allow competing OEMs to dictate how you manage customer value.
Also, we can't expect the OEM to know our service processes. Dealers should never outsource strategic customer value management initiatives to their OEM partners.
Existing dealer marketing strategies perform significantly below potential impact. A lot of guesswork goes into allocating marketing budgets and there is a “fire and forget” mentality when it comes to ad spend. Dealers prioritize retention, but don't yet have the tools to systematically measure the value of their customers.
Database marketing is designed to build relationships, instead of a one-and-done service experience. To prevent churn you need to predict who is at risk and why. And, to drive more responses, dealers need to implement customer analytics to inform marketing interventions. Ultimately, a marketing database allows dealers to put a dollar value on their most precious asset, i.e., the customer.
Three Database Marketing Examples
01 Service Churn
Churn - is when your customer buys from you repeatedly and then stops. Good service churn models enable you to see who is at risk of leaving and why. With marketing response data, you can improve the timing and content of your interventions.
Your customer has parted ways with you, but not before leaving a digital exhaust. New customer acquisition is expensive, because you have to assign all acquisition cost on those few that eventually convert. For lost customers, you know which offers worked to bring them back allowing you to target only the most likely win-backs.
03 Customer Lifetime Value
The main culprit for sub-optimal marketing is underspending on your high value customers and ovespending on your low value customers. To outperform your competition you need to spend differentially, this means moving aways from a single purchase model to customer lifetime value attribution.
What are we offering?
We offer a marketing database enhanced package with customer analytics for dealers.
What's it for?
You can use your marketing database to go beyond typical marketing automation triggers. Like applying critical service insights to how you communicate with your customers. The marketing database stores data on your most valuable asset - the customer. Customer analytics enables you to market in a timely, more intelligent, way to your customers - both current and future.
The Next Step
Fill out the form on this page to receive more information, call us on +1 302 385 6833 or send an inquiry to firstname.lastname@example.org.
Frequently Asked Questions
Q: What do I need to get started?
A: A willingness to base marketing on data, and the will to use retention strategies in your marketing.
Q: I'm not sure I want another BI-license, can't I just get the benefits without the software?
A: Yes. We can setup a connection to Excel or integrate with your current reporting, CRM and marketing software provider.
Q: We're not on CDK, can we still get access to your Business Intelligence package?
A: Yes. If you own your data and have the ability to export it. We are investigating the other major DMS systems for 3rd party programs and will update our site periodically.
Q: I already have a service CRM, do I need to purchase a HubSpot subscription?
A: No. You can use whatever's working for you now. The best CRM is one that gets used.
Q: I'm interested, but this is all a bit overwhelming and I just don't get it. Can you provide more information?
A: Yes. We can put something on the calendar. You can use our chat at the lower right corner of the screen, or call us on +1 302 385 6833.