Company: Mike Miller Hyundai
Contact: Russell Herman, Service Manager
Location: Peoria, IL
Industry: Automotive, B2C
Annual revenue: Confidential
Number of employees: 50

Quick Read

While automotive dealerships across the country struggle to remain in business, to get through the current economic downturn Mike Miller Hyundai has focused on customers who have already bought cars from the dealership.

Using Vontoo technology, the dealership routinely sends out voice messages that remind customers of overdue services such as oil changes and maintenance checks, at a fraction of the cost of direct mail.

As a result, its service bays have been filled 20% above capacity on average, and customer retention is up to around 52%, 13 percentage points higher than the national average for Hyundai dealerships.

Challenge

Located in Peoria, IL, Mike Miller Hyundai is a small automotive dealership that, especially in this economy, relies as much on customers in need of tune-ups, oil changes, and other automotive services as it does on new car sales.

In 2007, the dealership's service manager, Russell Herman, noticed that although he was spending some $2,000 per month on direct mail campaigns, his service bays were seeing fewer and fewer customers, making direct mail an expensive endeavor.

"I wanted to find a way to reach customers in a more cost-effective manner," he recalled.

Campaign

Herman decided to pursue voice marketing, signing on with Indianapolis-based Vontoo, Inc. in November 2007 because its program appeared to be both quick and easy to use and was available on a "pay as you go" basis, whereas its competitors required lengthy contracts up front. That was a key consideration for Herman, who wanted to test and measure customer response before making any commitments.

Herman began by testing the program on customers due for oil changes and maintenance checks. He also used it for appointment reminders the day before a customer was due to come in. He recorded polite reminders, which he then saved and reused as needed, sparing him additional time.

Next, Herman incorporated follow-up messaging directed at non-respondents. If the dealership did not hear from a customer within 30 days of the first reminder, for example, another message was sent, and again 30 days after that, if the customer still did not respond. On the fourth reminder, Herman added a $5 discount to the message; 30 days later, the discount was increased to $10.

"We wanted to remind them, but we also wanted to hook people who were temped to go somewhere else," said Herman. "So we gradually upped the offer until it was so compelling that they'd come in."

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Case Study: How an Automotive Dealership Used Voice Marketing to Supplement Sales, Boost Customer Retention

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ABOUT THE AUTHOR

Kimberly Smith is a freelance writer. Reach her via dtkgsmith@gmail.com.

LinkedIn: Kim Smith