Data dos and_donts-revised

Two Unique Perspectives

What’s the Big Deal About Email?Email is an efficient, cost effective method of communication with customers and prospects.

Did you know…»93% of online adults use email»ROI on email is $40 for every $1 spent*

»More than ¾ of consumers prefer permission based email for marketing messages**

»Even the heaviest social media users still use email more

*2011 Direct Marketing Association**2012 Exact Target study

Cheap, Big Return, Let’s Blast!

NOT SO FAST!

Alternate Titles We Considered

»Houston, We Have A Problem»More Is Not Always More»Step Away From The Send Button »Extreme Makeover: Email Edition»Email Intervention

The Hidden Power In Numbers

This is boring.This presentation will not be boring.

Our Study

»Industry knowledge»Input from Automotive Groups, General Managers,

Internet Directors, and Trainers»Generally accepted industry statistics»More than 5,600 bulk email communications sent by

automobile dealers totaling over 74,000,000 individual emails

Average Automobile Dealer Database Size – Records With Email Addresses

23,000

»Organic, 1st party leads»3rd party leads»Other lead sources (OEM, group portals, etc.)»Showroom traffic»BDC, telephone calls»Vehicle deliveries»Service department»Conquest campaigns»Community events, sponsorships, contests, etc.

How Dealers Build Their DatabasesYou work hard for the data.

Building the Database - Front End

Additions to your database

*Based upon an average automotive website conversion rate of 2%.

Growing and Maintaining the Databases – Back End

»How many repair orders do you do in your Service Department each month?

»Did you know that, on average, 40% of your service customers did not buy their vehicles from you?

»What is your email penetration rate?»Do you capture email addresses in the Service Department?»Do you update email addresses in service?

Two Steps Forward, One Step Back?One Step Forward, Two Steps Back?

»Average email unsubscribe rate automobile dealers is 0.42%»Unsubscribe rate range for top performing automobile dealers

is <0.3%»Unsubscribe rate range for worst offenders is >1.0%

What does responsible emailing look like compared to “blasting”?

Responsible Emailers Offenders

Frequency of email campaign sends

Several sends per month Several sends per month

Number of emailssent per campaign

Limited sends to full database; More segmented; Targeted sends

Consistent pattern of sending to full customer database

Messaging Tailored to customers’ preferences and position in the vehicle lifecycle

Same message to all customers, no targeting

Average email performance

>15% open rate and well above <10% open rate

Unsubscribe rate <0.3% >1.0%

There Goes Your Database

LET THE EMAILING BEGIN!

Responsible

Offenders



Responsible

Offenders

» 4 email campaigns1 newsletter to full database (23,000)3 targeted emails (3,000)

» 31,000 emails» 6.3% unsubscribe = -69

+71» 4 email campaigns

to entire database (23,000 x 4)» 92,000 emails» 1.0% unsubscribe = -920

-780

+140 from website conversions

+140 from website conversions



Responsible

Offenders

+140 from website conversions » 4 email campaigns

1 newsletter to full database (23,000)3 targeted emails (3,000)

+140 from website conversions» 4 email campaigns

to entire database (23,000 x 4)



Responsible

Offenders



» 31,000 emails


to entire database (23,000 x 4» 92,000 emails



Responsible

Offenders





to entire database (23,000 x 4» 92,000 emails» 1.0% unsubscribe = -920



Responsible

Offenders




+71+140 from website conversions» 4 email campaigns

to entire database (23,000 x 4» 92,000 emails» 1.0% unsubscribe = -920

-780

Replacing database loss through unsubscribesAverage cost of a 3rd party lead: $21

780 x $21 = $16,380

The Cost of Irresponsible EmailingPutting the loss in perspective.

What is your PVR?

75% of database is customers75% of 780

Customers close at a higher rate50% of 585

Potential lost repeat business

The Long-Term Cost of Irresponsible EmailingLoss of repeat business

$1,000 (conservative estimate)

585

292.5

= $292,500

$______?

During vehicle lifecycle (4.5 years) dealership customer will add another vehicle to the household OR refer a sale

Customer unsubscribes x Conservative PVR

585 x $1,000 = $585,000Additional potential lost referral revenue

The Long Term Cost of Irresponsible EmailingLoss of Lifetime Value

Some additional points to consider:»Some attrition is inevitable and expected»Sending to your entire database isn’t always bad and sending segmented

emails isn’t always good»Sending relevant, optimized messages to groups of customers or all

customers that prompts recipients to go to your website, submit a lead or make a phone call should be a core component of your marketing strategy. Why?

– Filling the funnel– 1st party leads close at twice the rate as 3rd party leads– Loyal customer close at a higher rate than prospects– Improved retention

What Does This All Mean?The example was intentionally dramatic.

Case Study: List Fatigue Rehab

Background:»Honda dealer major metro area»14 other Honda dealers within a 25 mile radius»Internet savvy consumers»Traditional advertising expensive, some radio»Digital marketing strategy, heavy reliance on email

Case Study: The Problem

»Weekly email sends to full database, heavy sales message

»List fatigue– Open and click rates were slipping– Unsubscribes were rising

»Management worried that dip in calls, leads, showroom traffic and sales would happen if emailing was scaled back

Case Study: The Plan

»Create 3 targeted messages instead of one combined message

– Prospect– Sales– Service

»Decrease the number of sales customers received each month,but continue to send campaigns to prospects weekly

Back to School, Back to HondaWeekly campaign reorganized three ways for three different targets.

ServiceSales

Prospect

Zero the Hero!Weekly campaign reorganized three ways for three different targets.

Prospect

SalesService

Case Study: What Happened At First

Immediate, dramatic increase in open, click and CTO rates in emails to all groups»Prospect

– 207% increase in open rate– 448% increase in click rate

»Sales– 23% increase in open rate– Click rate remained the same

»Service– 121% increase in open rate– 160% increase in click rate

Case Study: Tweaking the plan

»But despite improved stats, fewer people were receiving the emails so they received fewer clicks overall

»Within 2 weeks, while sending emails to 66.5% fewer people, the number of clicks were only down 14.5%

»Temporary shift from 1/3, 1/3, 1/3 to ½, ½, to address anxiety

»At reduced send volume, as many clicks were being generated as at full database send volume

»No short term dip in sales or service experienced

Case Study: 180 Degree Turn Around

Outcome:»Increase in organic website leads from 640/month

to 870/month»No 3rd party leads»Email consistently a top 4 source of referring traffic

to the main website»Reduced spend on traditional advertising»Finished #1 in the district

»Do pick up your chin. Do consider the long term impact of aggressively and frequently emailing your full email list offers that are not geared to demonstrated interests.

»Don’t spray and pray. Don’t give in to the temptation to focus only on generating sales this month, this week, this weekend, today at any cost.

Do & Don’t #1

»Do benchmark key data points. Know your basic email performance metrics, but go beyond the basics.

– Bounce, open, click, CTO, complaint, unsubscribe rates– Email penetration rate– Traffic referred to website

• Tag email appropriately• Compare to other sources of direct traffic

– Telephone traffic referred – ROI

»Don’t keep doing the same thing if it’s not working. Be prepared to adapt.

Do & Don’t #2

»Do analyze your data. Look at where customers are in the vehicle lifecycle, what they have demonstrated an interest in, most popular content and offers, most successful campaigns and tailor targeted messages accordingly.

»Don’t conclude that it is never a good idea to send an email message to your full database. Softer retention marketing pieces such as newsletters, annual events, etc. may be appropriate for all customers and prospects. But don’t send to your full database as a default position.

Do & Don’t #3

»Do know what your follow up plan is before you send email campaigns and communications. Follow up email? Telephone call?

»Don’t leave anything on the table. Some people who receive an email will do exactly what you want. Some will unsubscribe, delete or not open. Others will interact with the email but not call, submit a lead or come in to the dealership. Don’t forget to give them the nudge they need.

Do & Don’t #4

»Do maintain and update your customer data. Do pay attention to hard bounces. Do take advantage of the opportunity to capture and update email addresses in your Service Department.

»Don’t assume that just because you have an email address associated with a customer record that it is current and valid.

Do & Don’t #5

»Do look for data you can use for training purposes to improve. Look at email capture rates in the Service Department by Service Advisor. Are certain Service Advisors consistently failing to get email addresses? Use this as a training opportunity.

»Don’t accept that there is nothing you can do about it. Use your tools. Make email address a required field. Incentivize/disincentivize.

Do & Don’t #6

@SCVNGR Password Is…“+1”

Questions?

Thank you.Kristen JuddFounder, Co-CEO3 Birds Marketing LLC321 W. Rosemary StreetSuite 110Chapel Hill, NC 27516 Office: (919) 913-2747Mobile: (415) 235-3902Email: [email protected]: @kwjuddTwitter: @3birdsmarketingLinkedIn: www.linkedin.com/pub/kristen-judd/1a/563/548Website: www.3birdsmarketing.com

mailto:[email protected]

http://www.linkedin.com/pub/kristen-judd/1a/563/548

Data dos and_donts-revised

Automotive

Transcript of Data dos and_donts-revised