Wednesday, March 11, 2015
Wholesaling With Wormholes
– by Brian Steinmetz
– by Brian Steinmetz
For years, automotive dealerships have used targeted digital marketing to reach out to their retail customers (“We were glad to have you in for an oil change last month! Come back for 10% off your next one!”). With some small adjustments, this technique can also serve dealerships that are contacting their wholesale customers (fleets, independent garages, or body shops). Unlike retail customers, individual wholesale customers purchase large volumes of parts, which means wholesale targeted marketing can yield significant returns.
But it needs to be done right. How do you create your strategy?
An effective targeted digital marketing strategy is typically part of a larger customer relationship management (CRM) initiative. However, the digital marketing provides a unique feature: the ability to directly track impact. This tracking takes the form of monitoring delivery rates, open rates, and click-through rates for your marketing initiative as a whole, as well as for each individual customer. Knowing which customers are actually opening the marketing messages will produce a list of hot leads for a counter salesperson to follow up on.
Electronic delivery also allows you to customize messages for different recipients. Your active customers could receive one message, thanking them for their continued business with a 5% discount on product line ABC, while inactive customers that you’re trying to recapture could receive different messages, like a 10% discount on another product line.
“Sounds great. But does it actually work?” Yes, it does. One automotive OEM that employs this wholesale direct digital marketing strategy consistently sees positive outcomes. For every month that these messages have gone out, roughly 7% of their “inactive” wholesale customer base (those that had not purchased parts in 90 days) came back to the dealership for their first parts purchase in a while. Active customers who received these marketing messages became inactive at a lower rate than others. Taking a larger view of the situation and evaluating the OEM’s entire wholesale customer base, the customers who received the messages purchased more parts year-over-year than customers who didn’t receive messages.
Bottom Line: Targeted direct digital marketing to wholesale customers has the potential to yield huge returns on investment, when paired with a well-planned CRM strategy. The ability to deliver to your wholesale customers a tailored message cheaply, quickly, and easily is one that we all can access; we just need to build a plan and then send a ship through the wormhole.