Summer is here – and for luxury retailers, that means a significant increase in tire sales. Based on an analysis of over 9 million repair orders, we’ve discovered a large increase in tire demand for high-end models beginning this month. Peaking at nearly 25% of all ROs in July, this spike in tire sales goes through August before returning to normal levels in September.
Timing is Everything: Create Campaigns Now
Although all dealers see escalated tire sales in the last two months of the year, only luxury stores experience a dramatic surge during the summer – and it’s the ideal opportunity to drive profit even further with strategic new tire campaigns.
Start the season by showing customers why summer tires make a difference on their luxury vehicle, or remind them of all the safety advantages before they get on the road. Help them start their vacations with more peace of mind by offering complimentary oil changes, multi-point inspections, or car washes to maximize likelihood of purchase.
You can also feature personalized, limited-time specials, or create incentives based on an individual’s prior activity. And by consistently reminding customers of your technicians’ extensive training and expertise – and their exclusive use of genuine OEM parts – on each communication, you’ll reinforce the expectation of premium care for their luxury vehicle in your service lane.
Identify, Target, Increase
To maximize your response rates, use a marketing program with built-in machine learning to identify the customers most likely to buy tires in the near future. Then, target that segment with the most relevant and strategic messaging to further drive the sale. With the combination of a seasonal sales spike and predictive analytics, you have multiple possibilities for peak profit on tires for luxury brands during the summer months ahead.
Author: Doug Van Sach
Doug Van Sach – Vice President of Analytics & Data Services
At AutoLoop, Doug uses crucial customer analytics and insights to improve and drive digital and multi-channel acquisition, retention and loyalty programs across leading OEMs and dealer groups. Previously, as VP of strategy at DME Automotive and VP of Analytics at 3Birds Marketing, he developed innovative marketing programs for automotive dealers and aftermarket providers. Prior to that, he established the customer insights and online marketing functions at Dick’s Sporting Goods and provided performance improvement consulting to Fortune 500 companies at Ernst & Young Management Consulting. Doug earned his BS from Miami University in Ohio and his MBA from Indiana University.