The Power of a Good List - AutoSuccessOnline

The Power of a Good List

Marketing vendors talk a lot about strategy and messaging, but as we know, that's only part of the equation. To maximize your return on investment, you also need a really good list.

One of the biggest benefits of an omnichannel marketing strategy is the ability to deliver the right message to the right person at the right time. In this blog, I’m going to focus on the “right person” part of this equation.

Marketing vendors talk a lot about strategy and messaging, but as we know, that’s only part of the equation. To maximize your return on investment, you also need a really good list.

Some vendors will buy lists with thousands of names in your dealership’s primary market area (PMA), then blanket the entire area with postcards or coupons. If they have email addresses, they’ll send out e-blasts to the entire list hoping for a one- to two- percent response rate. This is an expensive and highly ineffective strategy.

You’ll get much better results and ROI with a strong list and sending targeted messages to various segments of the list based on data. What kind of data? Make sure your marketing vendor curates separate sales and service prospect lists using the following information:

Demographic Data

When purchasing a list, you can choose a number of demographic targets such as income, age, marital status, credit score ranges and over 175 lifestyle selections. How do you know which ones to target?

Start by analyzing your current customers. The top 20% of your customers product 69% of your gross profits. Compile demographic data on these customers and look at trends. What is their average income? Which zip codes do they live in? Use this demographic data to set parameters for prospects you want to conquest.

A number of lifestyle factors also help to determine which consumers in your PMA are in-market for a new or used vehicle. These include newly engaged, newlyweds, parents-to-be, new parents, parents with teen drivers, college bound students and parents, new movers, new divorcees and automobile off-lease.

Another strategy that falls into the demographic data category is to purchase vehicle registration data and cross-reference those names to your purchased list. In sales conquest campaigns, this allows you to target competing brand owners, selectable by vehicle make, model and year.

Customer Transactions

Up to 72% of dealership customers choose third-party independent repair facilities (IRFs) for service. Fortunately, it’s possible to access credit card transaction records for consumers who frequent Pep Boys, Jiffy Lube, other IRFs and even competitive franchise dealerships. Cross-reference these names to prospects on your purchased list.

These consumers make ideal targets for service conquest campaigns. At an average $40 to $80 per customer acquisition, service conquest campaigns can be far more cost effective than sales conquest campaigns.

Online Behavior

For digital campaigns, it’s easy to set up targeting parameters based on consumers’ online behavior. This includes websites visited, such as third-party auto shopping sites, or search terms used in Google and other search engines.

Depending on the search terms used, you can easily identify where the prospect is in the buying cycle and deliver messages accordingly. Early in the buying cycle it’s best to use a strategy that raises brand awareness. Later in the buying cycle you might want to run PPC campaigns with calls to action designed to convert active shoppers into visiting your website or calling your dealership.

Online behavior is also highly effective for digital service conquest campaigns. Consumers who are actively looking for vehicle repair can be targeted using PPC campaigns and retargeting ads.

Predictive Analytics

Past behavior is the best predictor of future behavior. With advanced data analysis technology, it’s possible to use data from multiple sources to generate a complete view of all customer interactions. With a detailed analysis of past transactions, it’s possible to predict the likely future transactions that will take place, and when.

Although predictive analytics can be used in conquest campaigns, the technology works best with the customers in your own database, including defectors. Rather than try to entice them back with an oil change coupon or generic service offer, use data to identify specific opportunities based on past behavior and where they are in the ownership lifecycle. With detailed data analysis, you should be able to target customers who are due for routine maintenance, trade-in value estimation, lease termination, warranty expiration, recalls and more.

Using all of this data together allows you to narrow down a purchased list of potentially thousands of random consumers in your PMA, to hundreds of in-market car shoppers and/or service conquest prospects, segmented for targeted message delivery. The power of a good list significantly reduces marketing costs and increases ROI, so make sure your dealership’s marketing partner knows who’s on your list.

Scot Eisenfelder

You May Also Like

4 KPIs to Improve Automotive Sales Phone Lead Management

Learn how to streamline operations, enhance customer interactions, and drive higher conversions by mastering these critical metrics.

At Car Wars, we refer to these KPIs as the CRISP metrics. To learn more about how Car Wars is helping thousands of dealerships sharpen their CRISP metrics, visit our website.

Effective phone lead management is crucial for sales department success. Customers consistently rely on the phone to inquire about vehicles, schedule test drives and negotiate deals. However, many dealers face challenges in converting phone leads into sales due to unclear expectations, resource constraints and evolving customer expectations.

How Auto Retailers Leverage Advanced Connected Vehicle Data

Learn about real-time inventory management solutions, predictive analytics and the seamless integration of technology to optimize operations.

Why Today’s Auto Dealers and Lenders are Embracing AI Contracts

Learn how automated technology solutions, leveraging AI and digitized processes streamline vehicle transactions.

Identifying Gaps in Digital Retailing Solutions & 5 Easy Fixes
Live Chat Revs Up Automotive Marketing in 2024

Discover strategic shifts, like prioritizing digital marketing with live chat, to engage customers effectively and drive sales.

Live Chat Revs Up Automotive Marketing in 2024
The Myths and Truths Behind Artificial Intelligence

Learn how AI enhances efficiency and productivity in business settings, creates new job opportunities and promotes ethical practices.

Other Posts

Navigating Title Clerk Transitions

Discover solutions for dealership title clerk shortages to avoid backlogs and ensure smooth vehicle sales and registration processes.

Navigating Title Clerk Transitions
The Jury Is Out: How Many Dealers Are Utilizing AI?

Discover insights from industry surveys revealing the shift away from gut instinct to data-driven decisions.

Accelerating Auto Dealership Efficiency: 7 VoIP Trends for 2024

With these advancements, there’s a prime opportunity for dealers to harness technology for heightened productivity and efficiency.

How to Choose a Digital Marketing Agency: 7 Signs of a Bad Agency

Here’s a complete guide to identifying the red flags that signal a digital marketing agency might not be the right fit for your business.

Digital marketing agency