Over the last year, since August 2010, Huffines Hyundai of Plano has experienced a dramatic increase in new car sales, up more than 57 percent and its service department has written over 1,700 ROs compared to the same period the previous year by implementing an intelligent marketing strategy to help attract, sell, service and retain customers for less cost by integrating and positively promoting all their profit centers: new, used, finance, service and parts.
“We set a new record in May 2011, selling 201 new units, more than any other May, ever,” says Roosevelt May, General Manager of the Huffines Hyundai Plano store.
With many dealers struggling to simply maintain sales and service performance given the ongoing uncertainty in market conditions, manufacturer inventory issues, and stiff competition from same brand and off-brand competitors alike, Huffines Hyundai sought to more clearly define its local market and identify the best possible Hyundai customers in the Dallas/Fort Worth area it serves, in hopes of increasing their bottom line results.
Huffines’ first step was to closely examine the local market which included a comprehensive five-year historical analysis of their own sales and service transactions to determine customer trends. The results were compared to leading third-party and industry data to establish consumer patterns and trends within the local market. “Our goal is to find ready buyers who are in the market for a Hyundai and make sure they buy and service their vehicles with us,” says May.
Huffines Hyundai’s next step was to implement an intelligent targeted marketing strategy that includes integrated mail and email communications that consistently talks to every customer throughout the 60-month life cycle of their vehicle. They use welcome messaging for recent purchasers, maintenance reminders for newer vehicles not yet in-equity but may be due for recommended maintenance, and ongoing mail and email communications to customers in an equity position that always includes a custom variable service message based upon the status of the customer’s vehicle. For instance, a customer who regularly services with Huffines would receive a $24.95 oil and filter change offer, but a customer who does not regularly service would receive a $14.95 oil and filter change to incent them to come back for service.
“We set a new record in May 2011, selling 201 new units, more than any other May, ever.” – Roosevelt May General Manager
Another key benefit of their strategy is the data technology that enables Huffines to target 2010 and 2011 conquest Hyundai owners with enticing maintenance offers. By luring late model owners into Huffines’ service bays and away from the dealerships where they actually purchased, Huffines has more than doubled its active service customer base; undoubtedly driving their competitors crazy.
“My service department is addicted to this strategy. The combined messaging saves them on ad costs, but they have written 1,700 more ROs over the same time last year,” says May. “I hear no complaints, just pleas…not to stop what we’re doing.”
“Active service customers are seven times more likely to buy with the dealership they service with,” says Budd Blackburn, owner of www.TeamVelocityMarketing.com, the targeted marketing company Huffines Hyundai uses. “Huffines is known for its outstanding customer service. Once Huffines gets a hold of a conquest Hyundai owner the chances of that customer becoming a customer for life is extremely high,” adds Blackburn.
With sales and service up significantly, Huffines has been able to shift away from more expensive traditional mass media, like television and radio, while directing that money toward strategies that generate the best response, like their Campaign Offer Site, that is integrated with their targeted monthly mail and email campaigns. Every mail and email campaign directs customers to an online Campaign Offer Site that not only displays the featured promotions of the mail or email campaign they have just received, but also shows them every sales and service offer that Huffines is currently running on www.huffineshyundaioffers.com, so if a customer is not in the market for the particular offers they receive in the mail, they can check the Huffines’ Campaign Offer Site for other available offers.
“I love this offer site. It’s clean, clear, always up-to-date to match our current monthly campaigns and specials,” says May. “The best part is that the site is completely managed by a dedicated rep at our marketing company which saves me so much time and headache.”
To tie everything together, Huffines also predominantly displays in-store merchandising that reflects their current monthly campaign. If a customer happens to walk-in without having received anything via mail or email, they are immediately aware that there is an event taking place at the dealership and they came to the right place at the right time.
Huffines is consistent in the households they target and they strive to reach their customers early every month, before their competition. They focus on core models and use combined messaging that always delivers a sales and service message. They use a cohesive marketing strategy that includes targeted direct mail and email with custom communications that reflect the service status of the customer’s vehicle, an online offer site that promotes all available offers, and in-store merchandising to tie everything together.
“We are blown away by the response. Our sales are up by 57 percent over the same period last year, our service department is busier than ever… I’m not spending more money, but my results are up, up, up!”
The Bottom Line
Huffines Hyundai of Plano Texas increased new car sales more than 57 percent and service ROs by 1,700 over the same time period the previous year.
What They Do:
- Conduct comprehensive market research to identify in-market customers with the greatest statistical probability of purchasing or servicing with their store.
- Implement an integrated targeted marketing program across multiple mediums that include targeted direct mail, email, digital, and merchandising.
- Combine ad messaging to positively promote all their profit centers, new, used, finance, service and parts; improving their results for less cost.
- Provide outstanding customer service; creating customers for life.
Resources They Use:
- DMS: Reynolds & Reynolds (www.ReyRey.com)
- CRM Tool: Reynolds & Reynolds Contact Management (www.ReyRey.com)
- Targeted Marketing Company: Team Velocity Marketing (www.TeamVelocityMarketing.com)
- Determine your ideal local market by identifying customers and prospects with the highest statistical probability of buying and/or servicing with your dealership now and in the future.
- Create an integrated marketing strategy across multiple mediums that promotes all your profit centers, new, used, finance, service and parts.
- Create dynamic, cohesive campaigns that consistently speak to your customers throughout the 60-month lifecycle of their vehicle.
- Set the highest standards of customer care to ensure every customer who buys or services with your dealership becomes a customer for life.
“Huffines Hyundai uses a cohesive marketing strategy that includes targeted direct mail and email with custom messaging that reflects the service status of the customer’s vehicle, an online offer site that promotes all available offers, and in-store merchandising to tie everything together.”
Budd Blackburn, owner of www.TeamVelocityMarketing.com the targeted marketing company Huffines Hyundai uses.