Chicago, IL—Feb 19, 2018—In 2017, Fort Bend Kia added more than $416,000 to its bottom line with Affinitiv’s Social Roots TM 1:1 Facebook campaigns. Social Roots 1:1 is a unique digital advertising solution that leverages DMS data and trigger-based algorithms to drop targeted sales and service messages right into Facebook newsfeeds.
Last year, Fort Bend Kia generated $109,240 in sales revenue and $146,950 in service revenue from its Facebook ad campaigns. Since starting with Social Roots, Fort Bend Kia has also reduced its annual advertising expenses by more than $160,000.
“From a marketing standpoint it’s the most effective, least expensive thing we do,” said Virgil Skinner, Owner/Principal of Fort Bend Kia. “The other thing I like is that it doesn’t require a lot of time or involvement on my part.”
Rosenberg, TX is a small town about 35 miles southwest of Houston. Six years ago, Virgil Skinner opened Fort Bend Kia here with a mission to bring a luxury car-buying experience to a mass market store. Skinner’s primary marketing challenge is to convince car shoppers in the nearby Richmond and Sugar Land suburbs to drive south to his store. “Most of the people I want to attract drive north into Houston to work, shop and play, so it’s tough,” said Skinner.
Until two years ago, Skinner’s marketing strategy consisted of cable television spots, direct mail, email marketing, ads in civic association newsletters and ads in local HOA magazines. “We had a Facebook page at the time but I didn’t have anyone talented enough to use it for direct and targeted marketing,” said Skinner. “It was mostly me posting photos of customers buying cars and photos from local events we sponsor.”
Skinner was always frustrated with his advertising’s ROI. “One problem with this area is that the cable company only had 40 percent of the market, while the other 60 percent is split between various dish providers. And, trying to reach Houston through broadcast TV is too expensive,” he said. “Untargeted direct mail was bad. Every time I sent something out, half of the pieces came back. As much as I try, it’s almost impossible to get the service advisors to update customers’ physical addresses.”
Two years ago Skinner contacted Affinitiv, a leading marketing technology company. Affinitiv’s Social Roots product uses predictive analytics to drop highly targeted offers into Facebook newsfeeds.
Social Roots 1:1 campaigns leverage DMS customer data and trigger-based algorithms to generate a variety of messages and offers. In service these include service reminders, past due service reminders and second overdue service reminders. In sales, offers are created for customers with leases about to expire, and messages are sent for after-purchase check ins, and six-month sales follow up to ask for referrals.
In addition to the 1:1 campaigns, Affinitiv runs a custom sales campaign for Fort Bend Kia every month. These typically promote leasing offers or offers from whatever national campaign that Kia is currently running. Custom sales ads are created for three separate audiences: Fort Bend Kia’s current customers, in-market Kia shoppers within a 50-mile radius of the store, and a lookalike audience of in-market shoppers. Each list excludes contacts on the others, so there’s no overlap with advertising.
“I quickly realized we were reaching a lot more people on Facebook than any other media we use, so it wasn’t long before I quit doing television and untargeted direct mail altogether,” said Skinner. This allowed him to cut his annual cable budget of $128,000 and direct mail budget of around $60,000. Fort Bend Kia spends $20,000 to $30,000 annually for Social Roots 1:1, resulting in a total advertising expense reduction of more than $160,000.
The most successful campaign in 2017 was a SUV Clearance initiative that Kia ran in July and August. The campaign generated 2,603 clicks, 17 sales and service conversions, and $49,572 in revenue.
In addition to revenue, Social Roots 1:1 delivers other results that Skinner finds valuable. “We quickly became one of the most Liked Facebook pages on the freeway, we have the highest dealer rating of any dealer on the freeway, and the highest Facebook and Google ratings of any Kia dealer in the Houston metro area,” he said. “All of our reviews are absolutely unsolicited and unpaid for. I have a strong policy here, I don’t pay a single customer for a review.”
However, Skinner can’t give all the credit for his ratings to Social Roots 1:1. “The marketing gets them in here, then it’s up to us to close them. Our goal is to treat every client like family.”
For a Social Roots demo or more information about Affinitiv, visit Booth #3174C at the NADA Convention & Expo in Las Vegas, or visit: www.affinitiv.com
Affinitiv is a leading marketing technology company serving automotive manufacturers (OEMs), dealership groups, and individual dealers. Affinitiv’s Connectiv1 Platform is designed to provide a 360° view of customer, vehicle, dealership and marketing campaign effectiveness all in one place. Connectiv1’s advanced predictive analytics engine makes it easy for auto dealerships to leverage data and target customers with the right message at the right time on the right communications channel.
Affinitiv enables dealerships to produce, manage, measure and optimize omni-channel communications to drive brand loyalty and increase revenue. Affinitiv’s digital and analytic capabilities support a consistent customer experience through the entire ownership lifecycle. Affinitiv was formed in 2016 and is headquartered in Chicago, IL.
Author: Digital Dealer
Digital Dealer exists to help dealers and their managers sell more vehicles more profitably by creating the best live events and media in the industry.