Data Drives

2. Data Drives Loyalty & Customer Retention Scott Davis DrivingLoyalty.com

3. Overview Data Drives Loyalty & Customer Retention • In this presentation you will learn: • How to target in-market customers to maximize your ROI. • Craft consumer-centric messages. • Manage and implement a customer database strategy to improve customer satisfaction, retention and loyalty.

4. Recognizing Opportunity Data Drives Loyalty & Customer Retention • The Internet has changed car buying • 2 things you can control • Your local brand. • How engaged you are with your customers.

5. Recognizing Opportunity Data Drives Loyalty & Customer Retention • Only 2 ways to increase sales. • Use mass marketing to get a bunch of new customers. • Focus on your database to improve the loyalty and frequency of your current customers.

6. Strategy for Opportunity Data Drives Loyalty & Customer Retention • How to Improve Loyalty. • A 5% increase in customer retention will result in a 27% increase in business over 5 years. • Example: • 100 cars a month. 5% increase in customer retention. • 60 cars, 1260 total. • 63 cars, 1323 • 66 cars, 1389 • 69 cars, 1458 • 73 cars, 1530

7. Reviewing Success Data Drives Loyalty & Customer Retention • Dan Deery Toyota Case Study • A 5% increase in customer retention will result in a 27% increase in business over 5 years. • Example: • 100 cars a month. 5% increase in customer retention. • 60 cars, 1260 total. • 63 cars, 1323 • 66 cars, 1389 • 69 cars, 1458 • 73 cars, 1530

8. dealership learning case studies snapshot

9. Success Stories Customers: Success Stories Barney NinerGeneral Manager | Dan Deery Toyota Scion 40% Increase in Volume by Units over 4 years 2,074 #1 in Sales Retention in the Kansas City Region in 2011 1,481 4 year Increase of Sales

10. Trade Cycle Efficiency

11. Trade Cycle Efficiency

12. Trade Cycle Efficiency

13. Success Stories Customers: Success Stories Chris BranchideDir. Of Marketing | Muller Auto Group MULLER automotive • Has Delivered 77.8 units per month for22 Months in a row! • Delivered124 units in December! • Uses program to Communicate Rewards Points to customers 15.5% 4.6% Loyalty Sales as % of Total Sales

14. Reviewing Success Data Drives Loyalty & Customer Retention • 3 problems you solve by focusing on your database. • Spending too much on mass marketing. • Focus on people who are not in equity. • Dealerships are understaffed. It is hard to institute new process and structure.

15. Process Success Data Drives Loyalty & Customer Retention • System and process is the key. • The way to change is to set a process in place and stick with it. • Stay in front of your best customers every month with a relevant message.

16. Process Success Data Drives Loyalty & Customer Retention • People, product and then price • In that order, is how you sell, and retain your customers. • You are here to serve your customers

17. Strategy Success Data Drives Loyalty & Customer Retention • How do you do it? • Target your customers by purchase type. • Present your customers with the information they need about their vehicle so they can make an informed decision when they are ready.

18. Strategy Success Data Drives Loyalty & Customer Retention • Too much information? • 94% of your customers will use the internet to shop you before they purchase. • Compete.comstudy. A Yahoo study had similar numbers.

19. Strategy Success Data Drives Loyalty & Customer Retention • Execute on Multiple Angles • Present them with upgrade options with their unique equity position included. • Include factory incentives. • For purchase or lease. • Include information that will help them make an informed decision like gas savings and repair and maintenance costs.

20. Encouraging Success Data Drives Loyalty & Customer Retention • Give them Shopping Tools • The customer portal

21. Encouraging Success Data Drives Loyalty & Customer Retention • Use multiple forms of communication. • Mail • Email • Online.

22. Witnessing Success Data Drives Loyalty & Customer Retention • Maplewood stats for sell through rates • Mail Only • Email Only • Mail and Email

23. Assuring Success Data Drives Loyalty & Customer Retention • Automate the Process • Consistent each month • Drive Frequency • Catch them in the market

24. Adding to Success Data Drives Loyalty & Customer Retention • Additional Benefits • Starts the customer with a price. • April 17th Forbes article. • All ten “scams” had to do with getting to the price

25. Leads of Success Data Drives Loyalty & Customer Retention • Present the leads to the dealership’s staff through email, phone, online and when the customer is in the store whether in the show room or service lane. • Use this as a “first pencil”

26. Leads of Success Data Drives Loyalty & Customer Retention • Give them the tools to interact with your customers. • In store Printables. • Push marketing. • Track “in the market date”

27. Train for Success Data Drives Loyalty & Customer Retention • Train your staff to engage your customers. • In service. • On the phone. • Use scripts and process documents

28. Consistently Succeed Data Drives Loyalty & Customer Retention • Ultimate Goal - • Stay in front of your customers so they think of you first when they are ready to buy. • How many more sales would you make if you knew when everyone of your customers where “in the market”?

29. Data Drives Loyalty & Customer Retention

30. Loyalty & Retention Thank You