The Number One Strategy To Out-Market Your Competition!

Written for AutoSuccess Magazine
November 2001

By Scott Joseph

Last month we discussed the importance and benefits of deliberately and conscientiously working your previous customer lists. Why? Because if you are like most dealerships in this country, last year you spent thousands, perhaps even hundreds of thousands of dollars running newspaper, radio, and TV ads. You paid to reach millions, when in fact you ultimately only induced a small percentage to do business with you. Or, you spent a small fortune on sales efforts to initially contact prospects, to locate, identify, and sell the customer. And this year, some of you are searching for a way to reduce that advertising budget, but without affecting your sales.

Well, there are dealers out there who are doing just that. They are decreasing their ad budget while increasing their floor traffic and, more importantly, increasing their sales. And, here is the beautiful part. They are accomplishing this by doing one simple thing- marketing intelligently. By being selective about who you spend your advertising money on, you can better increase your odds of response.

Think of it like this- would you call people out of the phone book if you needed a date for this weekend? Of course not. Instead of taking a chance on a complete stranger, why not ask out someone who knows and likes you? The same is true of marketing. Remember- we are talking about relationships.

Your customer base has already told you that they like the way you do business, to the tune of thousands of dollars. Outside of their home, people's vehicles are the most expensive purchase they will make. Consumers want to trust those they purchase from, and they want to feel comfortable coming back to that dealer. Do not underestimate the power of habit and the desire for a relationship.

So, the only thing you need to figure out now is how to market to them. Follow these general guidelines and make the most out of your previous customer mailings:

• Have your database cleaned. There is nothing worse than a dirty database! Even if you don't know how to put all the information on a disk yourself, dealer systems can be directly dialed into, the data downloaded and cleansed, and then everything sent through National Change of Address to ensure the highest deliverability. It is an inexpensive investment that any reputable direct marketing company can easily do, and it will give you a valuable tool to work with.
  
  
• In every message to your previous customers, acknowledge their importance, and tell them of your gratitude for their business. I am not suggesting that you should say "thank you" in every message to them, but simply refer to them as a previous customer, and mention that they are appreciated.
  
  
• Make a powerful and compelling case as to why they should be interested in taking advantage of the product or service you are offering. This step holds true if you are trying to sell a $20 oil change or a $40,000 vehicle. You must make this offer compelling. A majority of previous customers want to re-purchase from you, but it is up to you to put forth the effort and make the customer feel wanted and appreciated. You must maintain this relationship!
  
  
• But most importantly, don't simply treat your previous customers differently. Tell them that you are treating them differently. Appeal to their sense of pride and privilege, while keeping them in their comfort zone, and your dealership's extended family will be happy, satisfied, and want to spend more money with you.
  
  
  

And now the big question: how often can you market to your previous customers? The answer is simple. You aren't marketing to them nearly enough. Even if they got mail from you every week, you are working to keep your name in the forefront of their minds. The better question would be: "What is the fewest number of mailings that your previous customers should receive from you?" The answer to that is quarterly for both sales, and service mailers- minimum. Remember this: marketing to your previous customers is all about relationships. How long would your personal relationships last if you only spoke to your friends once or twice a year? How loyal do you think they would be to you?

Any contact with a previous customer must be different than your general advertising. They must be courted, cooed, and have offers made available to them that the person off the street does not have access to. They need to feel special because they are special. This customer contributed to your last paycheck. It's funny how we feel grateful for a week when a friend buys us lunch, but easily forget a customer who contributed hundreds of dollars to our checking account.

So, the next time you are looking to do some advertising, put away the phone book. Instead, send a personal letter to your dealership's family. Reconnect with the people who helped build your business. Especially in light of the events of September 11th, I think we all have been reminded of how important relationships are, and how vital it is to maintain them.

Quick Tips for Marketing to Your Previous Customers

1. Notify your customers of special events ahead of the general public. Construct a special VIP day ahead of time, where only previous customers with your invitation in hand may have access to the special pricing of an anniversary sale, a tent sale, or a customer appreciation day. Or, better yet, offer your customers a one-time, preferential price to induce them to do business with you again.
   
   
2. Offer your customers the first opportunity on a limited-supply vehicle, or an exclusively available vehicle. Do you have a special shipment of program cars coming in, or some used vehicles that you plan to take to the auction? Tell your previous customers about these goings on, so they will feel like insiders.
   
   
3. Consistently up sell and resell with service mailers and service specials. Service mailers keep your customer base active in your dealership and significantly increase the lifetime value of your customer.
   
   
4. Make certain you can actually offer a reason why the customer should return to you, and then lead that customer to action. Tell them why they should buy, how to buy, what to do, and why they should do it now. You need to educate your customers and explain your products and services; so that they can appreciate the benefits your dealership offers them. Don't make it difficult for the customer to spend their money with you!
   
   
5. Create a sensible back-story for your mailing. Give them a logical reason for receiving this communication. Explain why this event is being held, and why the customer should expect a good deal on a vehicle. The offer must be genuine and unique. What you are offering must be valid in the eyes of the consumer, but it must be remarkable enough to attract their attention.
   
   

Next Month: Creative That Gets Results!

Read another AutoSuccess article:

April 2001:
Seven Advantages of Direct Mail for the Automotive Industry

June 2001:

Testing and Measuring the Effectiveness of Your Advertising to Improve Your Profit

July 2001:

Killer List Strategies For Your Direct Mail Promotion

September 2001:
How to Make Them an Offer They Can't Refuse!

October 2001:
The Secret of Out-Performing All Your Other Advertising!

December 2001:
Creative That Gets Results!

January 2002:
Secrets to Improve Your Sales and Profit With Direct Mail

February 2002:
How to Sell One to Two More Deals for Each 100 Pieces of Mail You Send!

March 2002:
The Seven Biggest Marketing Mistakes Everbody is Making, and How to Avoid Them!

April 2002:
Business Rules to Grow By!

May 2002:
The Only Three Ways to Grow Your Business

June 2002:
Your Customers are Speaking To You. Do You Hear Them?

July 2002
How to Attract Quality Traffic

August 2002
Make Money on Your Sales Event Before it Even Begins!

September 2002
Marketing Lists That Work!