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This webinar will begin momentarily.

2017 Auto Dealer’s Guide to Customer Retention

Presented by

WELCOME

Jim Treece

News Editor

Automotive News

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© Outsell 2016

2017 AUTO DEALER’S GUIDE

TO CUSTOMER RETENTION

Sponsored By

© Outsell 2016

Valerie VallancourtVice President of Marketing

Outsell

Ed BorgChief Marketing Officer

Hennessy Auto

Michele HalleCommerce Director

Lawrence Hall Auto Group

PANEL INTRODUCTIONS

Billy FrankGeneral Manager

Clear Lake Infiniti

© Outsell 2016

VALERIE VALLANCOURT

Vice President of Marketing

Outsell

© Outsell 2016

Cost of acquiring a new customer vs.

retaining an existing one.

Source: The Value of Keeping the Right Customers, Amy Gallo, Harvard Business Review, October 29, 2014

5x - 25x

© Outsell 2016

© Outsell 2016

Now This Is Important

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© Outsell 2016

In a study of 1,193 commercially successful innovations across nine industries, 737 (60%) came

from customers

Source: Institute of Management Sciences

60%

Your Customers Have Great Ideas!

© Outsell 2016Source: David C. Edelman & Marc Singer, “Competing On Customer Journeys”, Harvard Business Review Nov 2015

Streamline The Journey

© Outsell 2016

© Outsell 2016Source: Bond

81%of consumers are more likely to continue doing business with a brand that offers a

loyalty program

73%of loyalty program members

are more likely to recommend a brand if they are satisfied

with their experience

LOYALTY PROGRAMS

© Outsell 2016

The most successful customer retention tactics using data effectively include:

• Loyalty Programs

• Data-Driven Engagement

• Reputation Management

Source: Client Heartbeat

© Outsell 2016Source: Institute of Management Sciences

25% - 95%

An increase in customer retention by as little as 5 percent can lead to increased profits of

© Outsell 2016

© Outsell 2016

ED BORG

Chief Marketing Officer

Hennessy Auto

© Outsell 2016

Who We Are:

• We are the Hennessy Automobile Companies• 2016

© Outsell 2016

Priority One: Website Conversion

© Outsell 2016

• We can buy as much traffic as we want…….

• What are you spending on SEM?

• What are you spending on SEO?

• What’s your bounce rate?

• What’s your average time on Site?

• How many pages are they viewing?

• What is the value of that traffic???

• Who is your website provider?

• Excluding Phone Calls, what is your conversion rate?

• What is our conversion rate?

• How do we achieve it?

© Outsell 2016

© Outsell 2016

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© Outsell 2016

© Outsell 2016

How many leads????

That’s how many leads our trade in tool alone produced on our Atlanta Lexus Site in

October 2016!!!

© Outsell 2016

Why it is so important and how….

© Outsell 2016

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A customer’s true value emerges over his or her “lifetime” with your Dealership.

• A customer is a person who becomes accustomed to buying from you. Without a strong track record of contact and repeat purchase, this person is NOT your customer; he is a buyer. A true customer is grown over time.

• Acquisition marketing without a continuous engagement strategy and plan is just wasted dollars.

• Loyal customers are worth up to 10 times as much as their first purchase

• 61% of revenue comes from existing customers on average

• Many components, we will only talk about Engagement and Satisfaction

© Outsell 2016

© Outsell 2016

We have many ways to engage a customer today….

© Outsell 2016

• Be Relevant!

• Be Timely!

• Be Consistent!

• Be Respectful!

• Be Specific!

• Be Personal!

• Be Mutually Beneficial!

• Coordinate all efforts through all Channels!

• Use the Data!

• Listen for the signals!!!

So how do relationships turn one-time buyers into lifetime customers?

© Outsell 2016

Reputation Management

• How do you solicit reviews?• How do you prevent negative reviews from going public?• What do you do when a review is posted?

© Outsell 2016

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2017

• Add attribution pixels to all campaigns• Increase embedded video use in email• Stop remarketing without a purpose• Use more micro-sites and Dynamic

Conversion Pages with marketing campaigns.

© Outsell 2016

MICHELE HALL

eCommerce DirectorLawrence Hall Auto Group

Lawrence Hall Abilene Auto Group consist of 7 different franchises with 3 separate rooftops

Chevy, GMC, Buick & Cadillac

Lincoln-Mazda

Volkswagen

Lawrence Hall Abilene is privately owned and operated

2016

• New Car Sales/New Car Gross• Pre-Owned Sales/Pre-Owned Gross• Increase turn-prevent/minimize loss• Service-Implement Scheduling Atmosphere-XTime

Lawrence Hall Loyalty

• Preferred Owner Program CSSR• Sales- Offer additional $500 on next trade-in• Service Dept-Special Pkg for Loyalty Customer• Work our CM process on a daily basis

Lawrence Hall Loyalty- 2017

• ALL Departments work synergistically• Sales Department work the Service Drive• Gourmet Cookie Delivery

Lawrence Hall Reputation Management

• Partnership with Digital Air Strike• Work our CM process on a daily basis• Capture current contact info

Lawrence Hall Customer Retention

• Orphaned Owner-Manifest list• Continue to work customer owner base• Utilize Equity Mining data from CM• Vendors• Business Development-Service Department

2017

• 2017 Sales Forecast• Focus on Service-Equity Mining• Advertising Funds

© Outsell 2016

BILLY FRANK

General Manager

Clear Lake Infiniti

© Outsell 2016

Are we playing by the right set of rules?

• Efficent Marketplace• Market where all pertinent information is available

to all participants at the same time, and where prices respond immediately to available information.

• How should this effect your advertising?• How will it effect your business?

© Outsell 2016

Clear Lake Cares

• Clear Lake Cares is an initiative to get more involved in the community and give back.

• “Helping is the new selling.”• We began with a “Nominate a Family In Need”

Thanksgiving Dinner Donation.• We received dozens of entries and gave away 3

complete dinners the day before Thanksgiving.

© Outsell 2016

Clear Lake Cares

© Outsell 2016

Clear Lake Cares

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Clear Lake Cares

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Reputation Management

• Micro moments will shape the future• Maintaining your online reputation is priority one• Having a process in place to garner more reviews

• Hire a reputation management firm• Develop your own internal spiff program

• The more reviews the better

© Outsell 2016

Customer Retention

• Offering extra incentives to clients• New Vehicles

• 2 years or 20k miles in free maintenance• Free one year road hazard• Nitrogen in tires• Purchase brand new floor mats on all CPO vehicles

• VIP events for clients only• Team up with local restaurants to offer an exclusive events• Make sure events are away from the dealership

© Outsell 2016

Why are our standards set so low?

© Outsell 2016

• Know the current market and change your

marketing plan

• Find niche way of making your clients feel special

• Protect your reputation and know why consumers

make choices in todays market

• Raise your standards

KEY TAKEAWAYS

© Outsell 2016

Webinar Overview

• Deploy a strong cadence of communications through online and offline channels

• Make the most of your loyalty programs

• Maximize customer satisfaction through reputation management and surveys

• Create dynamic, behaviorally targeted customer retention campaigns

© Outsell 2016

Valerie VallancourtVice President of Marketing

OutsellValerie.Vallancourt@outsell.com

Ed BorgChief Marketing Officer

Hennessy Autoeborg@lexusatlanta.com

PRESENTER INFO

Billy FrankGeneral Manager

Clear Lake InfinitiBFrank@clearlakeinfiniti.com

Michele HalleCommerce Director

Lawrence Hall Auto Groupmhall@lawrencehall.com

© Outsell 2016

QUESTIONS

THANK YOU

The recorded webinar will be available for 12 months at www.autonews.com/powertraining.

You will receive an e-mail when it is available.

Email additional comments/questions to powertraining@autonews.com.