Selling 60% More Cars in Service at the #1 Honda Dealership in Sales. Rick Case Honda of Davie Increases Profitability with Integrated Marketing Strategy

1. Success Story
Rick Case Honda
Selling 60% More Cars in Service at the #1 Honda Dealership in Sales
Rick Case Honda of Davie Increases Profitability with Integrated Marketing Strategy
Many dealers face the ongoing challenge of how to The most successful dealers are using targeted
and digital mediums that are less expensive, more
effectively reach the right customers with the right measurable and give a better return on investment
message, bring those customers into their showrooms and than traditional mass marketing. The key to their
service bays, and keep them coming back again and again. success is integrating all their targeted traditional
and digital advertising to maximize results, but
this can also present a challenge as the average
As consumer behavior patterns have changed in recent dealer works with multiple vendors to execute their
entire marketing strategy which results in different
years, so has a dealer’s ability to attract and sell customers. strategies, messages and designs that too often are
The effectiveness of traditional mass marketing, TV, print not integrated with one another.
and radio, has waned and given way to more successful
One innovative and extremely successful dealership,
marketing efforts that combine highly targeted traditional Rick Case Honda of Davie, the No. 1 Honda dealership
and digital components that include direct email and mail, in the Southeast and No. 3 for Honda nationally YTD,
has taken things to the next level. They are not only
internet, mobile applications and more. Dealerships that integrating multiple marketing mediums to effectively
do not understand these targeted traditional and digital attract, sell, service and retain more customers with
mediums and how to successfully integrate them continue one marketing partner to execute their strategy, but
they are selling customers right inside their own
to see diminishing returns with mass marketing which service bays – you can’t get much more targeted and
remains costly and nearly impossible to measure. effective than that.
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2. Success Story
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“We’ve increased sales in service by over 60 With their market more clearly defined, Rick be due for recommended maintenance,
percent since launching this initiative back Case Honda of Davie began implementing and ongoing targeted email and mail sales
in November 2011,” said Richard Bustillo, a comprehensive targeted and digital communications to customers in an equity
General Manager of the Davie store. “We marketing strategy using variable direct position. Using high-end creative campaigns,
went from selling 45 units to 105 units per email and mail campaigns that consistently Rick Case Honda promotes its best sales
month on average.”
speak to customers throughout the offers with custom service offers that reflect
60-month life cycle of their vehicle with the service status of the customer’s vehicle.
Their integrated strategy included many steps
that began with a comprehensive five-year custom messaging that includes: a thank For example, active service customers
historical analysis of their sales and service you and welcome message for recent who routinely come in for service receive a
transactions to determine customer trends. purchasers, maintenance reminders for $29.95 Oil & Filter Change coupon, while
Those findings were then compared to leading newer vehicles not yet in-equity but that may customers who are categorized as lost, or
third-party and industry data to establish who do not regularly service with Rick Case
consumer patterns within their local market. Honda, receive the same offer but for $17.95
to encourage them to back.
“Our retention rates and gross profit numbers
“We’ve increased sales in
were already good and we were already mining service by over 60 percent since Rick Case Honda also aggressively targets
our own customer base, we just weren’t launching this initiative back in conquest service customers within their
expanding it. I wasn’t satisfied because I saw
an opportunity to do both,” said Bustillo. November 2011,”... “We went primary marketing area who own Hondas but
did not buy from them. This is unique because
from selling 45 units to 105
The results of their assessment enabled Rick most dealers use the manufacturer’s service
units per month on average.” marketing program which limits a dealer to
Case Honda to identify vehicle owners with
the greatest probability of buying or servicing only communicate with customers that have
RICHARD BUSTILLO
with their dealership, as well as identify same- purchased directly from their store and as a
General Manager
brand owners who had never visited Rick result also limits the dealer from contacting
RICK CASE HONDA OF DAVIE
Case Honda, and off-brand owners with a numerous conquest opportunities within their
historical pattern of crossing over to Honda. market. If a dealer only has 30 percent market

3. Rick Case Honda
share, they are essentially missing out on an “We were servicing an average of 3,000 tools to improve their ownership experience
additional 70 percent of the area’s service customers monthly with an average spend of and customer satisfaction. The Rick Case
market. Rick Case Honda recognized the $350 per RO. Since implementing the Vehicle Honda Auto App features a one-click to
opportunity to broaden its service marketing Exchange Program, we’ve increased our active roadside assistance, a car finder to help them
program with conquest customers and has customer base by over 1,200 customers and find their vehicle in a crowded parking lot, a
greatly expanded their reach of potential we average more than 3600 ROs a month parking meter alert, a flashlight, a gas savings
service customers. now – that is what I call ROI,” said Bustillo. navigator, links to navigation and notifications
“Plus, when you factor in the boost our that remind the customer when their vehicle
Another component to their strategy is that used car department has received from our is due for service and when they are able to
increase in quality low mileage trade-ins and upgrade their car for the same payment or sell
every outbound targeted email and mail
the $1,300 RO associated with reconditioning their car when they have equity. This free app
campaign directs customers to an online
those vehicles to make them CPO units, this helps improve the ownership experience and
Campaign Conversion Site that not only
gets really exciting.” encourages an ongoing relationship between
displays the featured promotions of the email
the customer and the dealership.
or mail campaign they have just received, but
“Everyone focuses on the new car sales
also shows them every sales and service offer
numbers but that’s only part of the story. The Once a customer takes delivery, Rick Case
that Rick Case Honda is currently running. If a real beauty of this program is that it generates Honda stays in contact with them by thanking
customer is not in the market for the specific revenue for all three of our major profit them for buying and asking for referrals and
offers they just received they can check Rick centers. It increases our new car volume. It online reviews, which helps to build their
Case Honda’s campaign conversion site, increases our service revenue because of the reputation when consumers search for them
www.rickcasehondaoffers.com for other reconditioning required to turn a trade-in into online. They now regularly receive over 200
available offers. a retail unit, and it has a huge impact on our positive online reviews every month.
used car business because it allows us to take
“This site is invaluable, it’s professional, in hard-to-find used cars for less than what To measure the effectiveness of all their
it ties in with all our sales and service our competition has to pay at auction. This marketing strategies and ensure quality
promotions and we’ve seen an increase in allows us to make more money on every unit customer care, Rick Case Honda uses a call-
the customer traffic printing coupons from even though our pricing is very competitive,” monitoring system to track their advertising,
the site,” said Bustillo. “Plus it’s completely explained Bustillo. Overall Rick Case Honda’s employees, and how their customers are
low maintenance for us because it’s updated certified pre-owned sales are up 50 percent. treated by listening to every call that comes
every month by our marketing company.” into their dealership. They receive daily,
Their advertising message is further “We no longer look at our customers as ‘Sales weekly and monthly reports that enable
supported by POS merchandising throughout Customers’ or ‘Service Customers’ they’re them to see which ad campaigns generate
the store that validates the promotion the all Rick Case Honda customers. Unifying our the best response and pre-empt any potential
customer recently saw online or received efforts has allowed us to get very good at doing customer concerns before they escalate –
one thing many times versus doing several which improves their overall CSI and helps
in the mail, like Rick Case Honda of Davie’s
things once,” said Bustillo. create lifelong satisfied customers.
“Vehicle Exchange Program”.
“The best customer any dealer can find is Spend more than five minutes with Bustillo
Their Vehicle Exchange Program is integrated
one they already have because customers and his team and you will see that there are
across their targeted direct mail and
who have an active service relationship with a lot of things happening at Rick Case Honda
email, web site, campaign conversion site,
a dealership are seven times more likely to of Davie. They have great facilities and a lot of
showroom and service lanes and has helped purchase with that dealership,” said Budd
them increase sales from inside service inventory; however, you will see that what pulls
Blackburn, owner of Team Velocity Marketing,
over 60 percent, from 45 to 105 units per all these moving parts together and attracts
the company that Rick Case Honda uses for
month, and total RO counts are up by over customers to the dealership is not just their
their sales and service marketing.
30 percent, when compared to the same state-of-the-art facilities and highly reputable
period last year. They are the No. 1 Honda Rick Case Honda also provides customers products, it’s a winning strategy created with a
dealership in the country for net profit and with a free mobile app that is custom branded proven marketing partner and executed by a
No. 1 in volume for the month of June. for their store. This app gives the customer free dynamic and dedicated team.
Success Story

4. Success Story Rick Case Honda
“WE WERE SERVICING AN AVERAGE OF 3,000 CUSTOMERS
MONTHLY WITH AN AVERAGE SPEND OF $350 PER RO.
SINCE IMPLEMENTING THE VEHICLE EXCHANGE PROGRAM,
WE’VE INCREASED OUR ACTIVE CUSTOMER BASE BY OVER
1,200 CUSTOMERS AND WE AVERAGE MORE THAN 3600
ROS A MONTH NOW – THAT IS WHAT I CALL ROI,”
-RICHARD BUSTILLO
GENERAL MANAGER OF RICK CASE HONDA, DAVIE
SPEAKING ABOUT THEIR CAMPAIGN CONVERSION SITE
IN A NUTSHELL
Selling 60% More Cars in Service at the #1 Honda Dealership in Sales
Rick Case Honda of Davie Increases Profitability with Integrated Marketing Strategy
• Define your ideal local market by finding the perfect customers and prospects with the highest
statistical probability of buying and/or servicing with your dealership now and in the future.
• Create dynamic, cohesive campaigns that consistently speak to your customers throughout the
60-month lifecycle of their vehicle.
• Consistently target in-market same-brand prospects, and consumers who drive off-brands with
a historical trend of crossing over to the brands you sell.
• Drive consumer traffic to a custom campaign conversion site that promotes all your sales and
service offers to help increase your internet sales and service leads.
• Establish a sales-in-service program to sell vehicles from your own service bays for your
in-equity customers before they shop the competition.
• Provide free mobile apps to improve the customer ownership experience and encourage
ongoing owner participation with the dealership – creating customers with the highest lifetime
value for your dealership.
• Monitor inbound calls so you know what ads are generating better response rates and
pre-empt CSI issues before they escalate.
• Work with a marketing partner like Team Velocity Marketing www.teamvelocitymarketing.com
to implement an integrated targeted and digital marketing strategy across multiple mediums
that promote all your profit centers, new, used, finance, service and parts.
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