Research published by J.D. Power & Associates indicates that the tremendous growth in new vehicle sales our industry has witnessed since 2009 is slowing; new cars sales are expected to plateau in 2017 and 2018. Included in the J.D. Power report were multi-year data trends that indicate a record number of low mileage used cars hitting national dealer inventory.
Progressive dealers who have planned for this change are already trimming their operating budgets to reduce the cost to market their vehicles, which averaged $516 in 2016 according to Borrell & Associates. While Borrell’s report indicated that dealers love for digital marketing has reduced the cost to market a vehicle from a high of $664 in 2009, we feel that the biggest opportunity for dealers to increase market share in a slowing economy resides in the Dealer Management System (DMS).
In a strong economy, dealers can be distracted by the chase to acquire new customers which can take attention away from the more mundane tasks of creating consistent customer communication to increase retention rates. For dealers who are not distracted, it is very common for customer communication to be fragmented across marketing channels and agency partners. This results in communications that are rarely relevant, personalized, or effective to increase retention. If there is a time for dealers to focus on customer retention and repeat business, 2017 would qualify !
Dealers need the ability to automate customer communications, especially when their vehicles qualify for equity buy-back offers or a declined service triggers a favorable scenario for the customer to upgrade their vehicle. Dealers know that relevant messages and offers will help increase retention, profits, and customer loyalty but executing these communications on a consistent basis has not been easy, until now.
The good news for VinSolutions customers is that big data analytic tools have been integrated into Connect CRM to allow one-to-one personalized, relevant, and accurate communications. Automated communications from TargetPro can be reliably triggered by preset business rules or the proactive actions of a desk manager or service manager. Campaigns can be created and managed by dealership marketing teams or assisted by VonSolutions Account Managers.
Dealers need smarter tools to build relationships by proactively engaging their sales and service customers. Learn why TargetPro can be a perfect fit for your dealership.