March 05, 2019
A profile on a midwestern BMW dealer
Last year, the Director of Parts & Service of a midwestern BMW dealer, was sitting on an excess inventory of 2,400 tires that needed to be sold. He was tasked with finding the most effective way to communicate their availability and drive additional traffic to his store.
This long time Affinitiv customer turned to his Business Development Manager. She suggested a strategy that included a tire offer in their end-of-year holiday card campaign.
The worked together to develop a direct mail piece with stunning visual imagery that represented both the dealership and the BMW brand. It contained three strategic offers and cross marketed other services along with the tire availability: (1) BMW Approved Tires for sales at $5 over dealer cost (2) $50 off any BMW Oil Service (3) $25 off Original BMW Accessories and Lifestyle Merchandise.
The holiday campaign targeted more than 7,000 of the dealership’s active and inactive database customers and was enhanced by targeted email and behavior-based Facebook advertising campaigns. Additionally, Affinitiv created geo-fencing display ads. These mobile ads were aimed at potential customer by their location as they visited area tire retailers and independent repair shops, as well as those holiday shopping at a close by mall. Total cost of the entire omni-channel campaign was $9,300 before BMW co-op.
A few months later, the dealership’s tire inventory reduced from 2,400 to 360. Additionally, to meet excess demand spurred from the campaign, they actually purchased 100 to 150 tires every month to fill in the gaps. Notably, this location became the #1 tire seller in their market.
The Campaign Generated:
$718,725 In Customer Pay
$316,853 In Warranty Revenue
1,466 Repair Orders
245 Facebook Clicks to Scheduling Webpage
22.4% Increase in Service Appointments
“Being realistic, we know some customers may have come on their own, but we had an amazing return on this campaign” said the Director of Parts & Service. “If you send only one mailer, you may see a 1-3% return, but by hitting customers from every direction, we’ve seen the return rate jump to 4-6%. It really has to be the total package and a sustained effort that’s planned and strategically put in place. That’s where Affinitiv shines.”