Making the most of technology means dealers can cut marketing spend

10 September 2007

 

Dealers can reduce their marketing spend and improve profitability by using technology to get to know their customers better, according to dealer management systems specialist Pinewood.

 

The company says that its findings from regular research into dealer strategy shows those that are the best at gathering and maintaining information about their customers and then using technology to target marketing messages precisely spend the least on general advertising and other traditional marketing activities - and are also usually among the most profitable.

 

Managing director Neville Briggs explained: "What these dealers do is use the technology found in modern DMS systems to match an existing or potential customer with a profitable product or service that they may want or need, and then communicate with them in the most appropriate way."

 

Briggs said that this approach could pay dividends throughout the life of a customer's relationship with a dealership.

 

He explained: "From the moment a customer has first contact with a dealership, which today is often by visiting their web site, you should be attempting to gather information about them and what kind of vehicle, accessories and services they are looking for. By doing so, you can arrive at as exact a match as possible. Even if they do not buy from you this time, you may have something to offer in the future that meets their needs. It is all about really knowing the customer."

 

Briggs said that successful dealerships used the kind of technology and sales techniques that were common in other retail environments, such as the High Street.

 

He said: "What High Street stores are very good at is building a relationship with the customer, through tools such as loyalty cards and offers targeted directly at their needs based on past behaviour. There is no reason dealers cannot do the same.

 

Briggs added that how you got in touch with your customer was as important as the messages you put across.

 

He said: "DMS systems such as our own Pinnacle allow dealers to easily contact single or defined groups of customers by e-mail, text, phone, fax or letter. However, you must know which the customer prefers. It is important that your message is viewed as useful rather than as an annoyance. Also, it is essential that your marketing message has a direct relevance to the customer."

 

Briggs pointed out that this approach contrasted with dealers who employed more dated marketing techniques.

 

He explained: "Placing an ad in a local paper remains a cornerstone of marketing for many dealers. However, this kind of general press advertising is a scattergun approach to marketing and lead generation. The reader of that newspaper might be someone who is interested in your products and services but just as easily might not.

 

"Instead, using a targeted approach allows you to look at potential and existing customers, and make an informed decision about what might genuinely appeal to them.

 

"Press advertising and other traditional marketing methods such as general mailers will probably always have a place in dealer marketing but there are much sophisticated and effective tools available today."

 

 

For further details please contact Simon Wells at
Paperchase Public Relations on 01283 711311
or e-mail simon@paperchasepr.co.uk