Sandown Group has secured more than £135,000 of additional workshop revenues over a six-month period by following up past customers who bought vehicles subject to an outstanding safety recall.
The campaign was devised and implemented by automotive digital marketing specialist firm Marketing Delivery, who cross-referenced the dealer group’s customer database with current OEM recall data.
The Mercedes-Benz agency dealer group, which has locations across the south of England, worked with Marketing Delivery to identify 5,558 vehicles with an apparently unresolved recall that were owned by customers who had not visited a Sandown site within the past 18 months.
Marketing Delivery then managed a personalised email campaign encouraging each lapsed customer to visit the government website to check their vehicle’s outstanding safety recalls and book an appointment with their local Sandown service department, using a tailored link.
Over a six-month period, the messages saw an open rate of 63% and a click-through rate of 26%, well above the industry average of 15%. Most importantly, 645 new aftersales appointments were made by those lapsed customers, equating to 11% of all those contacted. The average invoice value has so far been £323 per booking, equivalent to £136,306 of additional revenue.
A dual-phase tactic was employed to test rates of response. During the campaign, one email simply offered a safety recall assessment, while the other also offered a complimentary health check. Marketing Delivery and Sandown found no significant change in the number of bookings from the two groups.
Keith Jackman, head of marketing & CRM at Sandown Mercedes-Benz, said: “We’re always looking at ways to maximise service bay utilisation, and when Marketing Delivery suggested targeting lapsed customers we were keen to explore the potential. We’ve been delighted by the outcome and we’re now over half-way through the new bookings that have resulted from the campaign. “Crucially, we have also brought a significant number of previously-lapsed customers back into the fold, which should pay dividends well into the future – both for aftersales and for new and used car sales."
Jeremy Evans, chief executive at Marketing Delivery, commented: “The DVSA recently announced that it will make addressing safety recalls part of the annual vehicle MOT. That increases the imperative for franchised dealers to capture this kind of recall-related work now.
“There is also the opportunity to fulfil a duty of care to the customer. As well as keeping the driver and occupants safe, the dealer could save the owner money because not responding to an OEM safety recall can lead drivers open to a potentially large fine for 'using a defective vehicle' which can also affect insurance claims.”
Marketing Delivery will take to the AM Live digital stage on November 9 to discuss how digital communications can help automotive retailers flourish in the face of two fundamental challenges – the proliferation of the agency model and the shift to electrification.
Keith Jackman, head of marketing & CRM at Sandown Mercedes-Benz, will join Marketing Delivery’s chief executive, Jeremy Evans, and commercial director, Charlotte Murray, to discuss key digital marketing trends and share practical tips relating to sales, aftersales, data cleansing, social media, lead management and customer retention.
Entry to AM Live at Birmingham NEC is free for motor retailers - just register in advance here.
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