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PSB 123s: Customers you should be reaching

December 26, 2011
Filed under News, PSB 123s

  1. Customers who haven’t made a purchase. “Data mine every person that hasn’t purchased a unit. The real target there is the folks that haven’t purchased,” said Tad Kilgore of Traffic Log Pro.
  2. Referral customers. “People in general, and powersports’ enthusiasts specifically, trust the opinions of their friends and family,” said Ben Borchert of 50 Below. “One of the richest – often not fully leveraged – revenue streams is customer referrals. Referral customers buy quicker, buy more often and continue to buy well into the future more than ‘regular’ customers.”
  3. Big spenders. “The top 25 percent of powersports consumers spend over twice as much, both per year and over their lifetime, than the average powersports consumer [according to an APD Lightspeed Survey]. Since they both purchase major units at the same rate, the difference is the amount spent on P&A and service,” explained V-Sept’s Mark Hoadley. “Targeting your dealership’s big spenders is easy and a great way to build loyalty, drive revenue and generate more frequent dealership visits.”
  4. Customers who may be interested in new promotions. When OEMs change promotions, dealers should be mentioning those to customers, says Freddy Tedesco of Traffic Log Pro. These promotions include extra rebates, cash back, or financing deals. “Once that promotion begins, pull all those customers who were interested in that unit in the past 60-90 days that didn’t buy,” Tedesco said, adding that the promotion may help the buyer pull the trigger on a purchase.
  5. New customers. “Everyone gets an itch they have to scratch. Be the dealer that can reach that spot. Enthusiasts can be impulsive. They want to ride, and they want to go now,” said John Schuldt of 50 Below. “Brand yourself as the go-to dealer. Extend some hours. Pay some overtime. Be receptive to the excitable customer and accept the strain of extra outlay. It’ll come back to though loyalty tenfold.”
  6. Major unit buyers who haven’t been back for service. “The average powersports customer purchases a new unit every two years. Service, however, is purchased at least once a year and twice a year by the top 25 percent of powersports consumers,” Hoadley said. A CRM can create a list of major unit buyers who haven’t been in for service in a set number of months. “Email them a letter with a coupon or a postcard with a promotion to get back in for service,” he advised.
  7. Customers with specific buying timelines. One customer may be waiting on a tax return to buy; another customer may be waiting to close on a house, and a third may just be holding out for spring. “More or less, one of the best practices is setting up a memory bank or an opportunity bank that you can search through,” Tedesco said. Once those customers are located, they can be followed-up with at the appropriate time.
  8. F&I customers. “The F&I department can be thought of as the retail financial services resource for every counter in the store,” said 50 Below’s Mike Manthey.  “If the dealership has the ability to introduce and sell F&I products, and they have an effective business process, then it is crucial to identify additional opportunities to enhance their F&I production, creating a better customer buying experience.”
  9. Folks who were turned down by financing. “With the economy stabilizing, the job picture improving and credit sources more accessible, your turned down customers and prospects from last year, last quarter and even last month have a higher probably of getting financed now than any time in the last three years,” Hoadley explained. “Send an empathetic letter via email noting the improved conditions, reminding them about the unit they were looking to purchase and welcoming them back for another try.”
  10. All the customers in your database. “A good dealer management system will let you pull specific data on your customers such as unit sales, model, date purchased, etc., so you can easily send out seasonal mailings regarding service, product add-on specials and much more,” Greg Carradus of Ideal Computer Systems said. “By having the ability to segment customers in such a specific group, you can create more targeted mailings and personalized offers, which can easily boost sales.”

 

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