August 2011 Success Story

How Cerritos Dodge Increased Sales by 75% and Service by 410% Cerritos Dodge Chrysler Jeep in Cerritos, CA, has been a successful part of the Browning Automotive Group for the last 25 years. Lately their sales and service activity is soaring with sales up 75%, 50% over the same period in 2010; and vehicles serviced increasing 410%, with ROs for vehicles in Cerritos’ primary marketing area jumping 210% over the same period last year. A recent shift in marketing strategy is helping Cerritos Dodge

positively affect all its profit centers to attract, sell, service and retain customers more profitably for less.

Many automotive dealers face the ongoing challenge of how to purposefully reach the right customers with the right message, bring those customers into their showroom or their service bays, and keep them coming back again and again. With the high cost of traditional mass media

advertising, like television and radio, it’s not easy for dealers to deliver an affordable consistent message to their primary marketing area without also having to spend a lot of money soliciting the greater population who are not in the market for a vehicle or are not conveniently located to the dealership, so servicing is out of the question. “We recognize the value of effective advertising and have always

Success Story invested in marketing, but we felt we weren’t reaching the right customers,” says Jack Ameen, general manager of the Cerritos store.

“There are well over a quarter of a million consumers in our immediate market, but obviously not everyone is a potential customer, so earlier this year we decided to invest in research that would help us more clearly define our local market.”

First, Cerritos Dodge Chrysler Jeep completed a comprehensive five-year historical analysis of its

sales and service transactions to determine customer trends.

Those findings were compared to leading third-party and industry data to establish consumer patterns within their local market making it possible for Cerritos to identify vehicle owners with the greatest probability of buying or servicing with their dealership.

The research also isolated samebrand owners who had never visited the dealership, as well as, off-brand owners with a historical trend of crossing over to the brands they sell.

“Within a few months we were up 5.3% in market share over last year – more than anyone else in our market,” says Ameen. “While Dodge and several of our competitors’ market share was down.

This research data is empowering.

We know exactly who to target.”

With their ideal market identified, Cerritos implemented a comprehensive targeted marketing strategy using mail and email campaigns that consistently speak to both customers and prospects with effective custom messaging.

In a Nutshell Cerritos Dodge Chrysler Jeep increased sales 75% and service 410% by changing their existing marketing strategy and implementing a targeted digital marketing strategy to attract, sell, service and retain more customers for less cost.

• Conduct in-depth market research to determine their perfect primary marketing area and identify inmarket consumers with the greatest statistical probability of purchasing or servicing with their store.

• Implement a targeted marketing strategy using www.TeamVelocityMarketing.com to implement direct mail and email campaigns that contain custom sales and service messaging relevant to a vehicle’s service status with the dealership.

• Consistently speak to in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands they sell.

• Establish best practices that include campaign kick-off meetings with all sales associates for every campaign and provide phone scripts to help sales members improve appointment ratios.

• Successfully attract, sell, service and retain more customers for less cost while positively promoting all their prot centers: new, used, nance, service and parts.

Success Story

Marketing Materials

Success Story Cerritos sends high-end campaigns promoting its best sales offers. The campaigns always include service messaging that is relevant to the vehicle’s service status with the dealership.

For example, customers who are active with their dealership and come in for regular service receive $24.95 oil change coupons.

Customers who are categorized as lost, or who do not return to the dealership for service regularly, receive a coupon for a $14.95 oil change. The same goes for Dodge, Chrysler and Jeep owners who have never been to Cerritos.

“My service department has seen a 522% increase in ROs from the customers in our immediate market, and our total service units are up 410% from the previous three months before starting this program,” Ameen says.

“Cerritos’ sales inside their primary marketing area increased 153%, up 50% from the same three-month period in 2010 because they are targeting the right customers and prospects in their own backyard,” says Budd Blackburn, owner of www.TeamVelocityMarketing.com, the target-

ed marketing company Cerritos uses. “Cerritos also does a great job of consistently communicating with their customers which helps keep customers active and creates customers for life.”

Not only are sales and service up significantly, Cerritos has been able to shift away from the more expensive traditional mass media, like television and radio, while directing that money toward strategies that generate the best response.

In order to sustain the level of excellence and customer service Cerritos is known for, the store regularly trains and communicates with its employees so they are fully knowledgeable when customers call or visit the dealership.

The training includes having the entire sales team participate in monthly campaign kick-off meetings where all the details, offers, and promotions are thoroughly explained. Cerritos also provides phone scripts for each campaign to help improve appointment ratios. Even the receptionist is instructed to always answer the phone with the appropriate campaign greeting;

“Good afternoon and thank you for calling Cerritos Dodge Chrysler Jeep. Are you calling about our Let’s Trade Keys Program?”

“It’s important that we have an infrastructure in place to properly handle every customer for both sales and service,” says Ameen. “A knowledgeable and informed staff is a great asset that instills confidence in our customers. We don’t want to miss a single opportunity.”

Top-notch staff also fosters an environment that keeps customers coming back again and again.

Targeted Custom Campaigns