Stop Using the Same Playbook as Your Competition. 3 New Marketing Plays to Help You Win
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- Ann Boone
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1 3 New Marketing Plays to Help You Win
2 A few years ago, Google defined a new point in the customer decisionmaking journey: the Zero Moment of Truth, or ZMOT. 1 Traditionally, an advertising stimulus motivated consumers to enter a store and purchase a product. Consumers would debate which product to choose based on previously seen advertising messages and product presentation on the store shelf or for dealerships, the car lot. That moment was called the First Moment of Truth. The economic recession, emerging online technologies, and other factors have influenced and changed how consumers today interact with brands, including dealerships. Now, advertising messages motivate consumers to search for information online about that product and its competitors. Consumers interact with brands online and choose a product before they enter a store with the intent to purchase. These digital interactions and conversations between consumers and brands are called Zero Moments of Truth. It s one thing to embrace ZMOT and the new customer journey by focusing on what your dealership does digitally. It s another to refine how and why your marketing is going digital. Most automobile retailers and marketers are familiar with the concept of ZMOT. However, knowing about ZMOT isn t the same as executing marketing that works for ZMOT. It s one thing to recognize marketing messages should engage consumers on a wide variety of traditional and digital channels. It s another to effectively manage those channels and messages. It s one thing to adapt dealership websites to accommodate the different ways consumers use mobile devices. It s another to effectively manage those mobile touch points and processes. It s one thing to embrace ZMOT and the new customer journey by focusing on what your dealership does digitally. It s another to refine how and why your marketing is going digital. Three common digital marketing problems may plague your dealership if you focus exclusively on the what of digital marketing. Playbook Problem #1: Outdated Database Want to reach your current customers with effective, accurate, and relevant messages? Make sure your database has useful and accurate data put into it. 855.NKD.LIME nakedlime.com 2
3 ... One out of every three customers no longer owns the car you think they do. A Naked Lime study found that 33 percent of people in the customer database own a different car than listed in the dealership s records. That means one out of every three customers no longer owns the car you think they do. Common database problems undeliverable mailing addresses, outdated vehicle information, and missing or invalid addresses exist for many different reasons. Customers can move away or use a new address without notifying your dealership. Dealership personnel can type the wrong information or string of numbers into the system of record. Even when information is input correctly, over time it can become outdated. However, one thing is certain. Marketing messages based on inaccurate data can be less effective in hitting the mark with your intended audience. That means a campaign full of mixed-up messages may be a waste of personnel time and effort. Solution #1: Dismiss Outdated Data You want a clean, accurate database so you can use customer data to its full potential. Your dealership s customer database should accurately reflect the vehicles your customers drive, when those vehicles were last serviced, what time and mileage services the vehicles need, a customer s equity position, and more. To help update your customer database, ask current customers to review their profile so you can add to or correct their information. If duplicate customer entries exist, instruct your staff to organize that customer s information under a single entry. However, you may not know if your database is missing information or has inaccuracies. A reputable service provider can scrub your existing database and remove outdated information, such as updating the sale history of a vehicle. The provider can also match your customer data against a third-party database to obtain missing information, such as a customer s address. Ultimately, make sure your customer database is helping you target the right customer with the right message at the right time. 855.NKD.LIME nakedlime.com 3
4 percent of Americans who read promotional s actually appreciate receiving s that recommend products based on previous purchases. Playbook Problem #2: Hit-or-Miss CRM A recent Harris Poll found 80 percent of Americans who read promotional s actually appreciate receiving s that recommend products based on previous purchases. 2 Your dealership s customer relationship management (CRM) system is an ideal tool to help reach those customers, especially for future vehicle purchases or service recommendations. Although your CRM tool can effectively manage, strengthen, and improve customer relationships, it faces major limitations when used as a dealership marketing tool. Your messages don t display. Your CRM tool may offer easy-to-use, beautiful marketing templates. However, some of these templates only allow you to send your message as a single image to the recipient. Many image-only s may not display when opened in a customer s inbox because of settings in the client. Those images become just a box with little red x. Further, your CRM tool may not allow you to use marketing best practices, such as alternate text and display notifications, to help entice customers or prospects to want to view the missing image. If customers do not take the next step in downloading the content to display the full , they will receive your s but not your marketing content. So, even if you reach the right customer, your message isn t delivered the right way. Your messages are marked as spam. Some service providers may not accept messages sent from a CRM tool as legitimate communications. If your dealership s CRM tool uses an all-or-nothing distribution method, it will send blasts containing the same message to every customer in your database. Many service providers will flag these blasts as spam. Can you remember the last time you received a notification on your phone for a spam message in your inbox? Chances are it s been a long time. service providers and applications increasingly are more sophisticated with their flagging and notification systems, and many won t send any kind of notification for messages marked as spam. While you may have targeted the right customer with the right marketing message, you may not have sent it the right way. That means any wouldbe customers won t receive your in their inbox, making it unlikely that they will even open the message. 855.NKD.LIME nakedlime.com 4
5 Your messages won t reach every potential customer. Even if your dealership s CRM system can send targeted campaigns that result in a visible, legible , the tool still may only track your active customers who purchase a vehicle or bring a vehicle in for service. That means you can t use your CRM tool to target inactive or potential customers with marketing messages. You also can t send relevant messages to customers who indicate they want one product but could benefit from a different one. Solution #2: Create Smarter Messages Effective use of a CRM tool includes sending follow-up messages to customers who bought vehicles at the dealership, or sending customers incentives targeted for a specific service for their vehicle. Those capabilities help you manage customer relationships. Yet, solely relying on your CRM tool to develop and send marketing messages can lead to the marketing misses outlined above. These misses can cost your dealership time, money, and future sales. Make sure your staff understands the capabilities and limitations of your current CRM tool. If you decide those limitations keep you from effective ZMOT marketing, consider investing in additional marketing tools for your staff to manage. Finally, train your marketing manager or hire a reputable service provider to help you develop effective marketing campaigns with smarter messages that go beyond the limits of your CRM system. If your dealership doesn t market beyond your OEM program, you can miss some serious marketing opportunities. Playbook Problem #3: OEM Only Marketing Your dealership likely participates in your OEM s marketing program, and for good reason from co-op funds to maintaining compliance with OEM standards. Nonetheless, you also face limitations when you only use an OEM marketing program. Generally the OEM s campaigns are focused on attracting and retaining customers for the brand s nameplate, not specifically on customer retention for your individual dealership. If your dealership doesn t market beyond your OEM program, you can miss some serious marketing opportunities. 855.NKD.LIME nakedlime.com 5
6 You don t reach all existing customers. OEM programs focus generally on attracting and retaining customers for the brand s nameplate, not specifically on customer retention for your individual dealership. If your dealership doesn t market beyond your OEM program, you can miss marketing opportunities with many of your existing customers. Most OEM programs decide which customers qualify as marketing leads. Typically only active customers and customers who currently own the OEM s vehicle make will qualify. Although these customers are ideal for the OEM, they may not align with the customer names currently in your database. OEM-qualified leads may not include your used vehicle customers, especially if those customers own non-oem vehicles. If you send marketing messages only to OEMqualified customers, your current customers could be missing out on your marketing messages. You don t reach all potential customers. Many OEM programs assign a primary market area (PMA) to dealers in their programs. Buyers searching for a vehicle between one and three years old will travel more than 40 miles from home. The problem with relying solely on assigned PMAs is consumers who may want to buy at your dealership can live outside that zone. On average, new-vehicle shoppers are willing to travel more than 30 miles away from home to purchase a vehicle from a dealership they found online. Used-vehicle buyers may go even farther. Buyers searching for a vehicle between one and three years old will travel more than 40 miles from home. 3 Depending on your assigned PMA, you may miss marketing opportunities with many of your potential customers if you don t send supplemental marketing messages about your dealership. You don t really reach your customers at all. In automotive, competition is high and customer expectations are even higher. When you use an OEM only marketing approach, you send branded messages that focus only on the OEM s value proposition. Your messages won t focus on specific benefits for consumers to do business with your dealership. 855.NKD.LIME nakedlime.com 6
7 What s more, if you and several dealers in one area all use the same OEM program, you may all send the same message to a consumer, further watering down your dealership s unique advantages. If consumers can t tell your dealership from another down the road because you both offer the same specials, the same messages, and the same services, they will have no reason to visit your dealership. If consumers can t tell your dealership from another down the road because you both offer the same specials, the same messages, and the same services, they will have no reason to visit your dealership over that of your competitor. If you re not positioning your dealership as an individual brand, you aren t really reaching customers your OEM is. Solution #3: Own Your Brand You want to continue using your OEM s programs to comply with OEM standards and maintain a good relationship with your OEM representative. However, you can do that and also develop an individual brand identity for your dealership through supplemental marketing. That can help you stand out from your competition and capture more consumers attention. Developing a brand identity is an involved process. While certain marketing tools can help you deliver a specific message or piece of content, a tool alone can t help you figure out the right marketing strategy. If you have a marketing manager on staff, work with that individual to make sure your brand is taking advantage of the OEM s programs as well as delivering your specific message to customers and prospects. Or, partner with a reputable marketing and advertising service provider that can work with your available time, resources, budget, and customer base to deliver the right solution for your dealership. Design a New Playbook with Your Marketing MVP If you re looking for a quality marketing service provider to help change your playbook, look for the following traits Most Valuable Provider (MVP) qualities, if you will to help guide you toward the right choice: Works with you as a comprehensive business partner. Creates marketing and advertising strategies driven by accurate data. Offers segmentation and customization options. Uses their ideas, expertise, and guidance to match your individual marketing needs. 855.NKD.LIME nakedlime.com 7
8 Conclusion: How and Why Marketing Matters Dealerships that focus on the what of digital marketing typically rely heavily on their CRM tools and OEM programs to create and send marketing messages. They may use a database that contains outdated, inaccurate, or incomplete information to target consumers with those messages. Meanwhile, dealerships focusing on the how and why of their marketing messages have the edge over the competition. Their marketing playbook solves the common problems with customer databases, CRM tools, and OEM programs in digital marketing and helps their dealerships stand out in a crowded marketplace. No matter what you use for your marketing, make sure you refine how and why you re doing it so you can succeed in marketing for ZMOT. Put down the same playbook your competition uses, and draft a new one to help you capture and retain more customers and win. To learn more about Naked Lime s services, call 855.NKD.LIME, info@nakedlime.com, or visit nakedlime.com. 1 Google, ZMOT: Why It Matters Now More Than Ever, Direct Marketing News / Listrak, Harris Poll, Automotive News / Art Spinella, CNW Marketing Research, NKD.LIME nakedlime.com 8
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