Mile One Marketing: 2005 and Beyond….. Dealer marketing budgets on the rise 200320022001 Total New Vehicle Sales 16.7 million units16.8 million units17.2

Mile One Marketing: 2005 and Beyond….

Dealer marketing budgets on the rise

2003 2002 2001

Total New Vehicle Sales 16.7 million units 16.8 million units 17.2 million units

Average ad expense/dealer $394,00 $345,000 $301,000

Ad expense/new vehicle retailed

$512 $444 $387

Lower Sales, higher expenses

+ 14.2%

+ 15.3 %

• In 2001, dealers benefited from OEMs promotion of 0% financing

• Car buyers came to expect hefty incentives, 0% interest loans, and bargain prices

• Dealer advertising expenditures increased 31% between 2001 and 2003

• New vehicles sales fell in 2002 and 2003

• Improving marketing effectiveness critical to increase sales and profits

Automotive News Article: “Higher costs squeeze dealer profits”, March 31, 2003. 2004 NADA Data, 2004 Automotive News Market Data

What’s the Plan...

• Build the best relationships between Walker Avenue and the dealerships.

• Provide the field with state of the art marketing strategies that will flood the floor with qualified traffic.

• Create the best referral program for Mile One employees. • Continue to brand the “Mile One” name through the corporate

website, The Baltimore Ravens, American Cancer Society, and other opportunities.

The First Step…….

• DMS Update

• Focus on your most valuable current asset - the customer base.

• How usable is the data in Reynolds and each stores CRM system?

• Are your customer names spelled correctly?

• Do you have their current addresses and phone numbers on file?

• What percentage of your database contains duplicate records that distort your view of market share and that cost you untold dollars in wasted marketing efforts?

• How are you addressing the new federal and state Do Not Call mandates?

• If just the thought of these questions makes you uneasy, then the Marketing Team will provide relief by delivering the power of current and accurate information to Mile One’s customer database. You can be sure you will know your most valuable asset.

The First Step…….

• DMS Update

• Focus on your most valuable current asset - the customer base.

• How usable is the data in Reynolds and each stores CRM system?

• Are your customer names spelled correctly?

• Do you have their current addresses and phone numbers on file?

• What percentage of your database contains duplicate records that distort your view of market share and that cost you untold dollars in wasted marketing efforts?

• How are you addressing the new federal and state Do Not Call mandates?

• If just the thought of these questions makes you uneasy, then provide relief by delivering the power of current and accurate information to Mile One’s customer database. You can be sure you know your most valuable asset.

• The first step will be to extract customer records from Reynolds, and also comparing them to an Authentiquest database. Authentiquest is a national consumer database covering 90+ percent of the households in the US. It contains the most up-to-date information available on over 120 million households. You’ll not only know the correct spelling of your customer’s name, you’ll know their most current address and phone numbers. If they are on the Do Not Call list we will flag them as such in the system!

• The Marketing Team will make the most of the customer records (sales and service histories) by processing the records through a merge service. If there are duplicate customer numbers assigned to the same customer, it will edit the information, whether sales or service-related, and automatically combine it under one customer number. You lose no transactional information. Duplicate mail deliveries and communications to the same customer are eliminated. The dealerships save mailing costs and embarrassment. Everyone gains with one unified set of records that tells the customer’s story. That’s true value!

The Database Solution

• The Marketing team will provide each dealership with a cost effective, fully managed mail & email append service. This service is in compliance with all federal and state privacy mandates, like the CAN SPAM Act! We will give them the email addresses of their current customers.

• So –the Marketing Department can focus on accurate customer information, the most current customer information, and on knowing the most about the customer. Your dealerships can then focus on results!

• Can you imagine the day that a new incentive comes out at 9:00am on Monday, a targeted web ad gets sent out to 2500 customers before lunch, customers are being called in the afternoon, and they show up to buy a car in the evening. All this before our competition has a chance to proof their newspaper ad that won’t be seen for another 2 days! Well, start imagining.

Building the Marketing Machine

• After we first attack the integrity of the main customer database……

• Then I would visit and poll the dealerships on what works, what doesn’t work, what vendors (CRM, Lead Generators and Management, Web Sites, F&I, Service Follow Up, etc.) they use. We will…..

• Build a “Best Vendor Practices” piece that can be tied into corporate training.

• We will then work with a small number of stores to build SUCCESS STORIES that will spread through the Mile One family. This will encompass automated marketing to prospects, old sold customers, service and parts customers, and lost sale leads.

• Most of the dealerships use some type of call tracking (Who’s Calling, Call Bright, Call Source) software. This is a good tool if used to its completion. Most stores, however, don’t use it that way. The Marketing team will streamline this process and build processes for driving those customers back into the stores. We will also introduce automated voicemail tracks (included in some of their packages already) to develop personalized follow up calls per dealership group.

• The Marketing team will know about new incentives when they come out and be able to proactively advertise to all levels of the customer base (prospects, internet leads, phone ups, sold, orphans, service, etc.). The dealerships will be notified what was sent and who was targeted through a bulletin electronically sent from Walker Avenue.

Here are some ideas that we could implement:

• Corporate wants to build the “brand label” of Mile One. Dealerships just want to sell cars. How about combining those into the Mile One Web Portal. Think about a key chain with many keys on it. Each key represents a make of car……

•The keys could lead to the stores websites

•


•Mile One.com would be the entry point but dealerships could control the leads if desired


•Mile One.com would be the entry point but dealerships could control the leads if desired

•..or the Marketing Team could control the lead until they hit showroom

We will develop a prospecting and follow strategy that is second to none. We will have

a process for each type of “up”.



The Marketing Team will be proactive in driving customers into each dealership thru campaigns that will reach potential customers thru…



The Marketing Team will be proactive in driving customers into each dealership thru campaigns that will reach potential customers thru…•Email




•Web Ads




•Web Ads

•Voicemail Telemarketing Campaigns




•Web Ads

•Voicemail Telemarketing Campaigns

•Targeted “specific” in-house direct mail with follow up calls

Marketing will develop process templates for every entry point for the dealerships

•Prospects

•Phone Ups

•Internet Leads

•Old Sold

•Orphan Owners

•Lost Sale

•Service & Parts Customers

Here is an example of a simple template for a follow up letter

or email

Dear Mr. Fader,

We just wanted to take this moment to thank you for inquiring about the Ford F150. We are already hard at work compiling the necessary information so that we can get back to you as soon as possible with the pricing, specifications or any other details you might need.

When it is convenient, we would also be happy to meet with you for a test drive. We can answer any questions you may have about purchase or lease options; we can even estimate the value of your trade. It is our pledge to you that we will do everything we can to ensure that this becomes the most pleasant auto shopping experience you have had.

Here at Heritage Ford, we specialize in finding the best vehicle to suit your needs. With this in mind, if there are any other details or special requests that you might have in addition to the information you have already given us, please don't hesitate to call at 410-111-2222 or http://www.mileone.com.

We will speak with you soon.

Sincerely,

Otto Follow-up

Mile One Marketing will develop and lead the best “friends and family” type referral program in our

industry!


industry!

•We will motivate the employees to buy in with a two-tiered program


industry!


1. Points program tied to cash, prizes, and gifts from marketing partners


industry!


1. Points program tied to cash, prizes, and gifts from marketing partners

2. Public acknowledgement amongst piers in quarterly newsletters

So what are the results?

Results Increases customer value in every department of the dealership

Decreases advertising budgets of the dealership

Annual increase in revenue of up to 10% when implemented with an effective marketing, CRM, and business strategy

PRE-OWNED & NEW CAR SALES • Increased sales

• Increased be-backs

• Increased CSI scores

• Increased average sales per

person PARTS & SERVICE• Increased service repair orders • Increased service appointments

F&I • Increased service contract sales

Value Of The Customer = Total In-House Marketing StrategyValue Of The Customer = Total In-House Marketing Strategy

Value of Customer

Equals $400k

•Increased sales by 32 units over previous month at dealership in Chillicothe,

Ohio

•Increased Be-Backs by 27% at Cadillac store in Detroit, Michigan

•Increased CSI scores from 67% to 91% at Pontiac store in Cleveland, Ohio

•Increased average sales per sales person from 8 to 11.5 units per month at

dealership in North Carolina

•Increased service repair orders by 25% by implementing automated service

follow up process

•Dealerships BDC is up 20 units per month at dealership in Raleigh, North

Carolina

•Reduced dealerships monthly ad spend from $45k per month to $25k per

month while maintaining market share at store in Ohio

Benefits of some dealerships that I have worked with:

What is it in for Mile One…

– More customers in the showroom leads to more sales on the board

– Lower cost of advertising than sticking an ad in the newspaper, on TV, or on the radio

– Higher CSI because we will be dealing with more of our own customers

– Great teamwork between dealership groups and Walker Avenue

Documents

Mile One Marketing: 2005 and Beyond….. Dealer marketing budgets on the rise 200320022001 Total New Vehicle Sales 16.7 million units16.8 million units17.2