Today’s auto dealers are only too familiar with the fact that achieving a sale is a remarkably expensive business.
It’s often quoted that the cost of achieving a first time sale can be as much as 9 times higher than the cost of sale to a repeat purchaser.
To ascertain the most effective means of promotion for motor vehicle dealerships, international automotive industry researcher, Polk International, found newsletters crucial to the marketing efforts of automotive dealerships.
In most countries newsletters were rated the Number 2 media selected by car dealers, falling slightly behind newspapers.
And when auto dealers were asked "Which media provided the highest ROI?" newsletters garnered a close #2 position again.
Primarily they saw newspapers as being the best means of attracting new business, while newsletters were a key means of helping to retain the customer and to gain a repeat business opportunity.
Poor customer retention
One of the most interesting studies we’ve come across was conducted by Saatchi & Saatchi, one of the world’s most prominent advertising agencies and market researchers.
A few years ago they investigated why it was that an average of 71% of new car buyers indicated in manufacturer surveys they were happy with their dealership and would buy from there again, yet when it came to actually buying again some years later, just 11% bought from the same dealership.
Saatchi & Saatchi found the most common reason for abandoning their dealer was that customers developed the idea that the dealer had lost interest in them after the sale.
Customers became irritated by the only communication received after the sale being reminders for service work – to get more business.
They found that customers want to be recognised – to be
valued – to be appreciated.
Among the customer relationship building activities Saatchi & Saatchi introduced were newsletters. Properly created newsletters were found to have a significant effect on back-end business - increasing after-sale purchasing and service work.
There was also a significant increase in customer referrals and repeat purchasing.
One aspect of surprise was that the span between repurchase shortened – possibly as a result of more people coming in for service work or seeing new models featured in the newsletters.
Every department can benefit!
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