By
Duane Sprague
Have you ever
wondered how many past customers you can turn into additional
revenue in any given month? Do you want to challenge your sales
people, and give them something pro-active to do today? Here are
three or four things you can go after right now, and work into
your regular marketing program as well.
First, take
a look at your current manufacturer incentives, interest rates,
and rebates on your most popular model. Now calculate what the
payments would be on a 36 and 48 month purchase and/or lease with
an average condition trade in of the same model 2 or 3 years old.
Now take those
four payment scenarios, and run a comparison against your customer
database to see which customers are driving a 2 or 3 year old
vehicle of the same model, still making payments, and are paying
more than they would using the current trade in value and pricing
incentives. If you don't come up with a lower payment, spread
the payments a little.
Now you have
a list of people who are driving a vehicle they purchased from
you, who could be driving a brand new one for less, with a new
warranty.
Now attack
the service database. Identify those service customers with older
vehicles who have averaged more than $200 per month in repairs
and service over the last 12 months, and show them how they could
be driving a new car for the same or similar cost.
What about
the body shop? Take the insurance deductible, apply a trade-in
value to the damaged vehicle, and show the customer how they can
drive away in a brand new car today, instead of repairing the
one they have. Now repair the vehicle yourself, and sell it on
the used lot, or wholesale it. The fact is, most people would
rather be in a new car once theirs is damaged, because psychologically,
the car is never the same.
Go back to
your sales database, and locate all owners still making payments
on a 2-4 year old vehicle with a lesser trim package, and a warranty
that is about to expire. Now show them how they can have a new
vehicle with an enhanced trim package (factory or in house), and
a new warranty, for virtually the same payments.
Don't wait
for the customer to come to you with their ideas or problems.
Be pro-active and go to them with solutions. Analyze your database
and current pricing thoroughly, and look for opportunities. You
can create a telemarketing campaign with your sales people using
the new information, or you can mail them a letter, post card,
trade-up certificate, etc.
This is work,
but look at the retention rate and sales opportunities you have
right in front of you.
