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70% of Your Database

Eric Pedretti | 03/16/2020

There’s a good chance 70% of your database (or more) didn’t give you a penny in 2019. Alarming isn’t it? The biggest reason for this is most dealers typically rely on Facebook & email only to communicate with their customers. Let’s look at some math on this to show you why this is such a challenge:

Email: The average dealership collects 40% emails at the point of purchase. An excellent email open rate is 10%. So for example, a dealership with 10,000 customers in their database will have roughly 4,000 emails. If they’re able to achieve a 10% open rate, that means they’ll reach 400 people out of 10,000. 96% + of this dealership’s customers simply are not hearing from them because they’re not getting the message…they don’t know about their Demo Truck, Spring Open House, Black Friday Specials, etc.
Facebook: Without boosting your post, only about 5% of followers will see it. So if your page has 5,000 followers, you’re talking about only reaching 250 people.

So it may feel like this dealer is talking to 15,000 folks but in reality, they’re only reaching 650. This is the biggest reason the average dealership has 70% inactive customers…they stop hearing from them, they develop a sense of apathy and they stop coming around.

 

This is one of the biggest challenges of marketing in the Powersports Industry; getting a message in the hands of the right folks. This is where the Sharp Shooter Program shines. We use up to 12 different, direct marketing strategies to guarantee your message isn’t getting delivered once, but multiple times per campaign. By simply giving customers more opportunities to respond, we drastically increase response.


The most effective media the Sharp Shooter Program utilizes is direct mail. It is the backbone of this SYSTEM because it guarantees the Right Message is getting delivered to the Right Audience. It also tells your customers you spent real money on paper, ink and postage to personally invite them into the dealership to have a good time. If you consistently mail your customers, more of them will walk through the doors more often and they will spend more money.


That’s the secret formula to the Sharp Shooter Program in creating predictable growth for your dealership…grow your active customers and increase your average, annual customer value. 

 
In an industry that is obsessed with finding ways to get Millennials to spend more time and money at their dealership, check out some of these stats from the USPS on how millennials respond to direct mail:

 

 

Many marketers think the only way to reach Millennials is through digital advertising; however the opposite is true. Many Millennials are fatigued from the constant bombardment in digitals ads, which leads to more then 50% of them ignoring digital ads. Because direct mail, which comes only once a day, has become a novelty to this audience, studies show Millennials enjoy receiving mail even more than non-Millennials. Millennial or not, consistently mailing customers will reactive them and increase the frequency in which they visit your dealership, leading to an increase in annual customer value. Consistency is key.

Check out the case-study below on a southern H-D dealer we worked with over 4 campaigns:

  • Campaign #1 They marketed to 5,000 past customers and 5,000 conquest customers resulting in 231 leads for Sales, Service & Parts for a 2.3% response rate. 
  • Campaign #2 They marketed to the exact same group of 5,000 past customers and 5,000 conquest customers driving 628 leads, resulting in a 6.28% response rate. After a second touch, we almost tripled the amount of completed surveys. 
  • Campaign #3 They marketed to the exact same group of 5,000 past customers and 5,000 conquest customers again, driving 1,783 leads, resulting in a 17.83% response rate! After a third touch, we had successfully multiplied the response rate by over 7 fold! 
  • Campaign #4 The results were so strong, they decided to market to only the 5,000 conquest customers in May (and remove the 5,000 past customers).

 

Remember, these are customers who had never purchased from the dealership. The Sharp Shooter Program drove 1,125 leads, resulting in a 22.5% response rate. 

For more information on how PSM can help you reactivate your lost customers and increase frequency of visits from your present customers so they spend more money with you in 2020, call me on my direct line at 877-242-4472 x 112. Happy selling.

 


PSM Marketing

825 Highway 74 South
Peachtree City, GA 30269
Tel: (877) 242-4472
Int: (770) 692-1750
Text: (770) 692-1750

Questions?