Database monitoring is one of the most effective ways to market to your customers, giving you the ability to monitor sold, unsold and orphaned service customers, utilizing accurate information from the credit bureau.
This is not something new, just new to the auto industry. Database marketing is one of the least costly forms of advertising when done correctly and yields the highest results. Understanding the legalities behind it and how to apply this information to your specific market segment is extremely important. With today’s aggressive competition, it’s important to maximize your efforts on your own customer base and referrals and specifically target your competitors. Turn your stagnant database into an abundance of leads ready to buy today, while protecting your portfolio.
How it Works
Using technology that is readily available, dealers have the ability to know critical information to ensure customer retention and satisfaction. Database monitoring allows you to actively monitor your sold, unsold, service and orphan-service customers. Service customers are probably the most untouched resources dealerships have. Using live credit data in conjunction with your database gives you the most accurate information and the ability to monitor and get notified daily every time an event occurs.
Different Events Include
Customer is out shopping for another vehicle; lease is due to expire in one to three months; customer is in an equity position for trade in and trade up; current interest rate is higher than the rate they should qualify for based on current credit (opportunity to trade in and trade up at a lower rate); previous turn downs are now in a position to buy based on credit changes; target your competitors’ customers.
These are a few examples of what you can do. Database monitoring and marketing can be one of the most effective ways to retain customers and prevent potential lost sales.
Utilizing the Data
Through proper monitoring, you can effectively communicate with previous sold, unsold and service customers at the right time with the right message. Because you are using your own database versus purchasing a credit file, the rules are different regarding verbiage and the firm offer of credit. This allows a much stronger message with a unique offer tailored to that specific customer.
We all know that marketing to our own customers yields a higher response rate, higher profits and usually a much easier sale since they are already familiar with you and have a higher level of trust. When using database marketing, you can send a letter, postcard, text and/or email to the customer all at the same time. Utilizing the multi-channel approach will increase your response and create more sales.
Remain Compliant
Understanding the regulations, compliance issues and safe data practices has never been more important than it is today. I would recommend working with an authorized credit agency and not a third-party provider. Then you will be assured of remaining FCRA compliant and getting the most out of your program. You will also learn how to apply this information to your specific market segment while protecting yourself on a local and national level.
