Seeing the Forest through the Trees
As a result of massive digital marketing efforts by dealers, capturing the attention of any prospect has become a huge investment of time and money. Due to this environment dealers have been forced to look into none traditional markets, Service Retention now more than ever, has come center stage. Sales departments have realized the gold mine that awaits them in the service waiting area. Selling out of service has just about become the standard.
None the less, this brings up another pebble in our shoes, Service Retention. The fact is only 13% of customer have maintenance performed at the selling dealership. One might reason that this means I have 87% chance of selling a customer that I never saw in my showroom, but the truth is that the majority of customers in our service area are still within their manufacturer’s warranty and are nowhere near qualified to be sold. In fact, depending on the manufacturer anywhere from 50-70% of customers stop coming to the dealership after the manufacturer’s warranty expires.
Dealers and manufacturers have committed to a number of strategies to combat this scenario such as, no appointment service centers, highly competitive maintenance service pricing, focus on pre-paid maintenance program and extended warranties.
The Right Partner
Dayton Toyota like most well run dealerships has a very strong service department and they are always looking for the competitive edge. Dayton Toyota was very attracted by the prospect of a dealer branded app that would utilize Geo Fencing as a marketing strategy. So they decided to partner with DealerApp Vantage, Automotive’s #1 Mobile Solution.
The Right Strategy
One of the most important services is the Oil Change, it is by far the biggest service driver. Dayton Toyota has a very competitive rate. Like most manufactures a full synthetic oil change has become the standard. They are so competitive on this service that it is very difficult to find any other aftermarket service center that will come near their price. So the question remains, Why do they still suffer from the same service retention most all dealers do?
Most customers simply have the impression that the dealer will always be overly expensive. How to combat this issue? When properly designing an app that will attract customers and fulfill their needs you will have an unmatched medium to execute highly effective marketing campaigns. The numbers speak for themselves:
75% – of customer accept Push Notification
97% – will see the Push Notification sender and subject line
50% – will open the app to view the rest of the message
4:04 min– is the average time they will spend in the app
No other product will offer you the market penetration that an effectively and professionally designed app will.
The Right Results
The results are second to none. We started with some basic messaging, at the time we have had weeks of continuous rain. The first message we sent out was for a special on wipers. The first 30 days this message was viewed 231 times, but it gets better, this was by only 75 customers. The conclusion, not only did message reach its audience but because of the delivery method the results were immediate and customers returned to the message more than twice. This means they were either sharing or redeeming the coupon.
The next step was to use the insanely effective marketing tool and apply Geo Fencing. A local aftermarket lube center less than 5 miles was considered as the target. Due to the location almost all of Dayton’s customer had to pass by it. When price shopped they were almost twice as expensive for an Oil Change service. We proceeded to create a message that would be triggered only when customers with the Dayton Toyota app would approach the competitor. The results are outstanding, within the first 30 days 73 of the 75 customer received this message. That’s a 97% market penetration! Not only that but it is such a relevant message to Dayton Toyota’s customers. Imagine the long term effect on service retention. In fact, in the last 6 months there have been 836 message views from their 411 users and the app has been opened 1,573 times. This means each customer has opened the Dayton Toyota’s app 3.82 times in the last 6 months.
The impressive performance on an app doesn’t end with just the Push Notifications. Of the 411 customers that have downloaded the app in the last 6 months, 400 have used it to schedule a service appointment (97%).
Above and beyond the service numbers the app has also produce 10 sales leads. To put this in context, your average dealer website will produce 1 lead for every 100 unique visitors. The app is generating 2.5 lead for every 100 unique visitors.
The Right Mobile Future
Dayton Toyota will continue to see their customers highly engaged through their app, they will see their service retention increase and therefore, the opportunities to sell in the service lane, their market penetration will significantly grow with downloads. This is success with DealerApp.
As can be seen through the numbers there is nothing remotely close to the performance an app can bring to the dealership. An experienced automotive focused app developer like DealerApp Vantage is the only way to yield results that will truly bring your business to the next level!