IRVINE, CA, October 26, 2011 — Paragon Honda-Acura, a Queens, NY-based dealership is selling 95 additional units a month from its existing customer base by using portfolio lead management software from AutoAlert, Inc.™
“It’s like we’ve created a store within a store the way AutoAlert® helps us identify our existing customers who are ‘red apples’ ready to be resold,” says Paragon Portfolio Manager Devon Jordan.
The multi-patented AutoAlert software provides pre-qualified, timely leads based on historical buying data. Complete deal information from the DMS is analyzed, such as vehicle equity, mileage, warranty, lease terms or other factors to create prospect opportunities in six different Alert categories. These leads from existing customers help dealers to create additional new and used car sales; increase revenue while reducing marketing expenditures; and improve customer loyalty and retention.
This data is compiled in a dashboard format so dealership staff knows quickly what makes those customers high potential opportunities for outbound marketing campaigns. For instance, at Paragon Honda-Acura, Jordan and her outbound BDC staff of four begin calling AutoAlert leads every morning. Nightly the software analyzes searches and sorts the day’s new lead opportunities. At any one time, Jordan and crew are managing 7,000 leads generated by the system.
In 2010 Paragon Honda sold 4200 new and 2644 certified pre-owned units, while Paragon Acura sold 1350 new units and 1168 certified pre-owned. Jordan attributes up to 1,000 of these units a year to leads uncovered by AutoAlert.
Typical lead creation includes:
- Alerts: Clients who are in a position to move out of their current vehicle and into a new one, at about the same current monthly payment with the same or shorter term Clients can also appear in additional opportunity categories, such as Contract End and Service Alerts.
- Flex Alerts: Shows customers whose equity position in their vehicle makes it attractive now to move into a new vehicle for about the same money per month with more flexible terms.
- Contract End: Clients with contracts maturing within 12 months.
- Service Alerts: Clients who have been in the service drive within the last 14 days and are Opportunities.
- Warranty Alerts: Clients with original warranties about to expire without a Vehicle Service Contract in effect.
- Mileage Alerts: Lease clients who are likely to incur mileage penalties.
- Conquest leads: Service clients who may have paid off their contract early, or did not originally purchase from the dealership (they are not in the DMS) can become prospect opportunities by utilizing the AutoAlert Wizard.
- Scripts: Very effective scripts for client contact are provided within the AutoAlert application to provide guidance through these various outreaches.
“AutoAlert targets our best leads,” Jordan says, “those customers whose vehicle situation is such that they’re prime for moving into a new or newer unit. Alternatively, their vehicle is in hot demand and has low mileage, which we would like to take in trade to replenish our CPO stock.
“And because we have specific insight into what the customer’s buy buttons likely are, we aren’t wasting their time or our sales staffs time trying to work a deal that might be a long shot – we know they’re likely very ready,” she says.
Various dealers using the AutoAlert software to prospect their existing customer portfolios report monthly vehicle sale increases similar to Paragon’s – with some realizing more than 200 additional sales per month! Each of these re-purchases usually generates a trade-in, which gives the dealership further opportunity for additional profit.
Boyd H. Warner, AutoAlert’s president and CEO, notes that even dealers selling just 15 to 20 units a month are generating another five units a month when using AutoAlert.
AutoAlert started in 2002 and today close to 1,000 dealerships use its software to generate additional sales, commissions and profit while providing individualized service to their customers.
“Many dealers who suddenly start exploiting their customer portfolios through AutoAlert quickly start booking 50 to 60 appointments. When 50 clients keep their appointments, it’s not uncommon to sell 25-45 units as a result. That’s total gross approaching $60,000 to $175,000 from existing customers who might otherwise have repurchased elsewhere,” Warner says.
By using AutoAlert to prospect for low-mileage or high-demand vehicles owned by Paragon customers, AutoAlert has helped the dealership keep its certified pre-owned inventory at profitable levels. This has greatly reduced the dealership’s need to buy CPO units at the auction, saving the dealership money it passes on to the customer.
“As a campaign marketing tool, AutoAlert helps us target specific customer demographics based on the dealership’s business needs,” she says. “Without this tool, my campaigns would not be as successful as they have been. We use AutoAlert every day to grow our business.”
AutoAlert, Inc.™ was established with the intent of providing the automotive dealership industry with products and services designed to improve new and used car sales, VSC sales, service conversion sales, client retention and loyalty, and increase profitability.