One of the most biggest challenges dealers face, is the high concentration of competitors in their market. If a dealer is to win a customers’ business, it is a combination of hard work, advertising investments, discounting, along with a little luck. Consumers have choices, and they know it. They also have this great thing called the Internet, which allows them with a few clicks to see every vehicle in a 200-mile radius they might consider for their next purchase.
Wouldn’t it be great if they only shopped your store, or considered your deals?
Of course that happens sometimes, with very loyal customers where the dealer has done a great job of taking care of the customer, and constantly marketing to them. However, this is the exception not the rule. How can dealers find customers who may never shop any other store, or consider any other deals? The answer can be easy, and it’s resting quietly in your CRM.
With this clue, many dealers reading this article may already have answered the riddle. You simply comb your CRM and look for past customers and try to put together deals for them. Perhaps there are customers who have positive equity in their vehicles, are not currently shopping for a vehicle, but if presented with the right enticing offer, might be ready for an upgrade. OK, this makes perfect sense, but sounds like a lot of work.
I’m seeing a growing new segment in the market for systems that automatically do deep scans of the CRM, and dig-out customers that are ideal candidates for a vehicle upgrade. They are generically called Equity Mining. Using various 3rd party data sources, along with complex algorithms, they not only find customers who are in this position, but also put together specific deals you can present to your customers. And when these deals are presented to these customers (who are not shopping for a vehicle), they tend to close without the customer ever shopping for alternatives. Why? Because the customer was not in the market in the first place. They simply may not have realized that they qualified for such a great deal, and once presented all they need to do is say “Yes”. And from the results I’ve heard from dealers using these Equity Solutions, they say “Yes” quite often.
These systems seem to me like they can print money, especially in the first few months where your CRM is chock-full of potential deals. After that, they provide a steady stream of new deals, all from non-shopping customers, and all at attractive grosses. But I’m leaving a very important part out…of course you’re also getting a great trade-in vehicle (at a time of challenging vehicle supply). In addition, if they were a service customer of yours, it is a vehicle you’re already familiar with since you’ve been maintaining it for them!
If you’ve not considered these types of solutions, you definitely should. We’ve all got access to tons of data, but it is sometimes hard to sift through to find the answers. Equity Mining finds the chunks of gold in all of that data, and creates new market opportunities for your store.