RETENTION RETENTION RETENTION

Can you guess what the word of the day is?  That’s right, it is Retention.  You know what it means, but is your business doing everything it can to retain the customers who visit you?  In order to grow a business you must do two things, acquire new customers and keep them around for a LONG time.  Yet, studies show that businesses are over 3x more likely to focus on acquisition efforts compared to retention efforts.  This post will focus on why retention is important necessary  CRUCIAL to your business plan.

Retention Makes More Money Honey

According to estimates, around 80% of future revenue for businesses come from just 20% of existing customers.  And it is not hard to figure out why, existing customers are easier to sell to.  They are comfortable, they know your business.  The likelihood of converting an existing customer to buy from you again is 60-70%, while the likelihood of converting a new prospect to purchase is only 5-20%!  Are you playing the odds correctly?  By focusing your resources to improve the way you retain customers, your company has the potential to generate a significant amount of revenue.  The more you retain, the more money you have to spend on gains.

Retention Has Less Cost Boss

The cost of customer acquisition (CAC) have been estimated to cost 4 to 10 times more than the cost of retaining an existing one.  Not to mention that existing customers are familiar with your business and require a lot less hand-holding and understand how to go through the process and where to get help to solve any problems they may encounter.  As a result, existing customers are a lot cheaper to provide service to.  And your existing customer base is a golden source for referrals, therefore efforts you put into retention will help grow your customer base.  Keeping customers around for the long haul means you’re delivering a great experience and you can turn your happy customer’s success stories into case studies to bring in more prospects.

Retention Is a Marketing King

Not only do your retention efforts generate revenue, they also give you a lot of insights on how to improve your marketing effort to acquire new customers by letting you know what content you need to communicate to prospects, and who you need to be targeting.

Welp, How Does DeliveryMaxx Help?

By now, you’re probably familiar with many aspects of the DeliveryMaxx program,  (If not feel free to check out some of our older posts or http://deliverymaxx.com/why-deliverymaxx.html) but are you aware of the DeliveryMaxx tools that allow you to lead an unparalleled focus on retaining your customers?  Not only are all of your customers being followed up with messages congratulating them on their purchase, reminders to provide a review of their experience online, Happy Birthday wishes, and additional messages on the anniversaries of their purchase, you also have the ability to take it a step further with custom video messaging that only takes a few short moments to create.  You or your staff can film short video clips that will be sent out thanking them, wishing them a happy birthday or holiday, reminding them they have a service date coming up, and more!  You can create custom messages with a highly personal touch keeping you and your business in the front of their minds for years to come.

So, why are you still reading this?  Open up the DMAXX App and start building a lifelong relationship with your customers today!

How Small is your Community

I can remember growing up in what I thought was a small Central Texas town called Harker Heights.  You know, the type of community where you would walk out of the house around 8 AM after breakfast with the family and then be home before it got dark just in time to have dinner with the same kin.  I knew everyone in a 3 mile radius (at least that is how far I would ride my bike daily in all different directions).  On Sundays I saw the same 150 people in Church.  During school, I played with the same kids on the playground.  A big event would be the “new kid” that entered school.  Every Saturday, I was at some sporting event, whether it was a game I played in or one that my sisters competed in.  During dinner time, as my family and I sat around the wooden table breaking bread; I would hear about vacations, deaths, births and typical events that others in the community were experiencing.  It became even more exciting when I visited my Aunt who was always more than happy to share all of the plights, trials and tribulations that our extended family and friends were experiencing.

This was a time that the nightly news came on at 5 PM and then again at 10 PM.  You had to make a phone call pressing buttons on a home phone.  The cord would restrict your movement and if you didn’t memorize the number you would have to look it up in a big book.  There were 12 channels on the TV in the family room.  If your parents didn’t pay for HBO which came out in 1972, you had to squint your eyes to watch in on the fuzzy channel 2 (in my case, I would see a movie I wasn’t supposed to watch and go to my friend’s house across the street to watch it.) Some households still had black and white TV’s like the one that sat on my dresser in my room.  ATARI was about 6 years old and Donkey Kong was the craze.  However, we only played it at dark because there was too much going on during the day.

Now my father was a principal and we moved to several different towns throughout the state of Texas.  We started out in Harker Heights (a smaller town outside of Killeen, Texas) then moved to an even smaller town in North Texas called Valley View where the elementary, middle school and high school were all in one building.  From there my family moved to Gainesville, then Denton, and finally settled in the historical town of Kilgore.  Each town was the same.  I made friends in school and church.  Once we moved, I started all over again and made more friends in another community.

Although technology hadn’t invented the cell phone, satellite radio or all of the other instantaneous satisfactions we have today; I was completely informed of what was going on every day.

Today I live in a suburb just outside of Dallas, Texas and not much has changed in my small community!
However, my community is NOT Rockwall, Texas where I live today that I am talking about here.  Sure, there are parts of Rockwall that are my community, but that is only where I lay my head at night.  I will explain further how I have come to this realization.

My community is very small.

Recently, I spent a month on a farm my wife and I just purchased in Northern Michigan.  I was very apprehensive about spending such a long time away from all of my electronic devices that allow me to work and communicate with the world in the same fashion I have become accustom to.  If truth be told, I think I was the most worried that I wouldn’t have access to a 24 hour news station that kept me up to date with what was happening in the world.  (The town we bought the farm has a population of less than 500 people, no cell towers within an hour and very poor internet connection.)  With a simple purchase of a Verizon JetPack; I found out how small my current community really is but how informative they can be.

Today I noticed ten birthdays, a couple of family members enjoying a beer in Ireland, one of my son’s coaches daughters getting married, my sons friend playing with a Lion in Florida, my wife’s friend sharing her determination in losing the “baby fat” from her recent delivery, several comments about how it is Monday, a friend told me they don’t like Fake People, one of my daughter’s teachers was collecting backpacks for children in Nairobi, and a college buddy of mine  whom I haven’t seen in person in years playing volleyball in his pool.

Yesterday, a former colleague of mine text me.  Now this may not seem like much but we hadn’t talked directly for over 10 years and we knew everything about each other like we had worked together daily.  We didn’t have to carry on a whole lot through text because we knew how our families were doing, what ventures we were up to and all of the experiences that have happened to each other over the last decade.

I can even tell you right now that my childhood best friend who I met in Kindergarten is spending the week in Pikes Peak, has an highly trained chocolate lab, a kid who celebrated his birthday a couple of months ago and is deeply in love with his beautiful wife.  Again, might not seem significant except the last time I talked with him in person was the 5th grade and that was only because I visited him when he moved off to Virginia from Harker Heights.

Yet, my community is very small.

You see Facebook, Google+, Twitter, YouTube, Pinterest, Flickr and so many other social media sites allow us to experience the day to day lives of people we have come into contact with.  We are able to see kids grow up and get married, enjoy in their successes and consul during tough times.  Social Media has allowed each of us to develop our own personal communities just like the one I grew up in as a child.  Although we have jobs, kids and other life obligations that keep us from talking in person or seeing some of our oldest friends; we are still able to keep them as a daily part of our lives.  My personal community is built of the best of old colleagues and friends from every place I have been employed or lived.  It continues to grow, but only at a pace I allow it to grow.

My community is small compared to many on Facebook as it only consist of 532 people which is just a little larger than the small township our farm resides on in Northern Michigan.  However, it is my community, and the great thing about my community is I can retreat back to it anytime the everyday stresses start to mount.

For more information on how you can utilize Facebook, Google Plus, Twitter, YouTube, Pinterest or other social media sites into your business community visit DeliveryMaxx at http://www.deliverymaxx.com or contact 888.936.6299.

Britain Chevrolet Cadillac Selects DeliveryMaxx to Share their Story

When North and East Texas customers choose a dealership that truly cares about their customers they choose Britain Chevrolet Cadillac.  What the customer finds is that they are treated like family and truly appreciated for patronizing the dealership.

Byron Britain, owner of Britain Chevrolet Cadillac and his wife Misty can be seen at the dealership daily.  Byron is personally involved in each sale, and wants the opportunity to create customers for life. He knows what it takes to create happy customers, and build strong relationships.  “It’s not about the fancy building, but the characters of people who are the building that makes Britain Chevrolet Cadillac special” states, Britain.  Byron Britain not only practices what he says, but he also walks the talk.  The Britain’s have a strong tight family; they are people of unwavering faith, and employ outstanding like-minded individuals.

“DeliveryMaxx is proud to partner with Britain Chevrolet Cadillac.  Meeting the Britain’s and their team let me see their vision.  That vision is what every business should strive for.  I am really looking forward to working with the dealership to help share their story” says, James Schaefer, Chief Operating Officer of DeliveryMaxx.

The bar has been raised for customer service.  Customers of Britain Chevrolet Cadillac will be able to search through an extensive selection of new and pre-owned vehicles.  They will be able to get a price quote without all of the haggling that goes on at other dealerships.  The friendly, professional staff will exceed every expectation that a car buyer desires.

“We focus on the little things to provide a high quality buying experience to all of our customers. Our highest priority is our customer, and we do whatever it takes to exceed their expectations.  It does not matter if you buy a car, truck, suv, Chevy, or Cadillac.  All of our customers are treated with the respect they deserve” states Brian Heiser, General Manager of Britain Chevrolet Cadillac.

Recently Cadillac was at the top of the list receiving awards from independent reviewers as the “Top Connected Car of 2012”, “Top Gadgets of CES 2012”, and the “Editor’s Choice Award” from AutoBlog.  The New Year is sure to be one of the most talked about in the automotive world, and Britain Chevrolet Cadillac has the determination to provide personal customer service to all of their clients.

DeliveryMaxx has been retained by Britain Chevrolet Cadillac to help the dealership raise the bar even higher for the automotive industry providing digital marketing solutions and customer loyalty and retention programs.  “We chose DeliveryMaxx to help share our customers’ great experiences because they reflect the same high quality standards that our dealership embodies” says Heiser.

“Having a dealership like Britain Chevrolet Cadillac in our client family is a strong testament to our services.  Britain Chevrolet Cadillac provides a level of service to their clients that is unprecedented in today’s economic climate” says, Josh Deaton, CEO of DeliveryMaxx.

Britain Chevrolet Cadillac is located at 4715 Wesley Street in Greenville, Texas.  For more information visit www.britainchevy.com or contact their friendly associates at 903.450.4216.

DeliveryMaxx provides a total automotive dealership care program providing their clients consumers with social media marketing, online reputation management, search engine optimization, customer loyalty, and retention.  They utilized their proprietary software and patent pending programs to help automotive dealerships maximize their effectiveness positively influencing consumer behavior.

For more information about DeliveryMaxx visit www.deliverymaxx.com.

Absolute Hyundai and DeliveryMaxx join Forces to Provide Best Automotive Customer Experience

DeliveryMaxx will be providing social media marketing, online reputation management, search engine optimization designed to create a strong customer loyalty program that will keep customers coming back to the dealership time after time



- Nov 10, 2012 -

Putting customers in the perfect vehicle that meets their needs is a high priority for Absolute Hyundai. Customer satisfaction and dealership loyalty what company strives for 100% of the time. Not only will Absolute Hyundai’s exceptional sales staff take the time to match a customer’s needs with an award winning automobile, they will stay in communication with the customer long after the sale.

Absolute Hyundai has partnered with DeliveryMaxx to provide their automotive customers with an exceptional follow up program that will assure the lines of communication are always open. DeliveryMaxx will be providing social media marketing, online reputation management, search engine optimization designed to create a strong customer loyalty program that will keep customers coming back to the dealership time after time. “We want to be the choice of all of our clients and their families for all of their automotive needs. Whether it be service, new vehicle purchase, pre-owned vehicle purchase, or just a cup of coffee and taking a look at the new models that have just come in; we love providing a great experience” says Ray Monk, General Manager and Principle Owner of Absolute Hyundai.

Absolute Hyundai is a family owned and operated New and Used Hyundai dealer in Mesquite, Texas. Quality Automobiles and excellent customer service is what their customers will receive during their visit to the dealership. Customers come from all over Dallas including Sunnyvale, Sachse, and Richardson just to find their perfect vehicle.

Josh Deaton, Chief Operating Officer of DeliveryMaxx states, “Absolute Hyundai is the perfect automotive dealership to add to our family of clients. Not only do they have a world class line of vehicles, but they also truly care for each of their customers”.

Absolute Hyundai is centrally located in the Dallas/Ft. Worth metro area at 16230 Lyndon B Johnson Freeway, Mesquite, Texas. The dealership employs highly trained experienced technicians and friendly sales representatives to meet all of their customers’ needs.

DeliveryMaxx provides a total automotive dealership care program providing their clients consumers with social media marketing, online reputation management, search engine optimization, customer loyalty, and retention. They utilized their proprietary software and patented programs to help automotive dealerships maximize their effectiveness positively influencing consumer behavior.

Absolute Mitsubishi and DeliveryMaxx Team Together to Creating Customers for Life

“Our business at Absolute Mitsubishi is not just selling cars, but helping put people into the right vehicle that is perfect for their family” says Ray Monk, General Manager and Principle Owner of Absolute Mitsubishi

 - Nov 10, 2012 -
Absolute Mitsubishi is a member of the Fenton Motor Group, a leader in the automotive business for over 50 years. Their mission is to strive to achieve greatness with their employees and most importantly their customers. Absolute Mitsubishi has a strong and solid reputation which was built on professional standards and customer commitment earning the prestigious Diamond Chapter of Excellence.

"The Diamond Chapter of Excellence Society encourages all dealership personnel to be top performers in every aspect of the sales experience," said Greg O'Neill, MMSA senior vice president and general sales manager. "These retailers recognize that customer service is a key element in being successful. We are thrilled to honor these retailers and thank them for being such outstanding members of the Mitsubishi family."

Absolute Mitsubishi has partnered with DeliveryMaxx to provide their automotive customers with an exceptional follow up program utilizing Online Reputation Management, Social Media Marketing, Search Engine Optimization, Customer Loyalty, and Retention. DeliveryMaxx will create an innovative marketing plan to allow Absolute Mitsubishi share their great service and outstanding line of vehicles with the world. “Our business at Absolute Mitsubishi is not just selling cars, but helping put people into the right vehicle that is perfect for their family” says Ray Monk, General Manager and Principle Owner of Absolute Mitsubishi.

Absolute Mitsubishi is a family owned and operated New and Used Mitsubishi dealer in Mesquite, Texas. Quality Automobiles and excellent customer service is what their customers will receive during their visit to the dealership. Customers come from all over Dallas including Sunnyvale, Sachse, and Richardson just to find their perfect vehicle.

“Absolute Mitsubishi is an outstanding dealership for anyone who is looking to purchase a vehicle. Their experienced staff makes the vehicle purchasing experience very easy, and their customer service is second to none” states Josh Deaton, Chief Operating Officer of DeliveryMaxx.

Absolute Mitsubishi is centrally located in the Dallas/Ft. Worth metro area at 16200 Lyndon B Johnson Freeway, Mesquite, Texas. The dealership employs highly trained experienced technicians and friendly sales representatives to meet all of their customers’ needs.

DeliveryMaxx provides a total automotive dealership care program providing their clients consumers with social media marketing, online reputation management, search engine optimization, customer loyalty, and retention. They utilized their proprietary software and patented programs to help automotive dealerships maximize their effectiveness positively influencing consumer behavior.

DeliveryMaxx Goes Prime Time Media

“With our partnership with DeliveryMaxx, we are able to help our clients engage with their customers like never before" states, Rod Hunter, President/CEO of PTMG.

Nov 08, 2012 -

Primetime Media Group www.theptmg.com has partnered with DeliveryMaxx to provide digital solutions and social media marketing for their clients. Prime Time Media Group, a full service ad agency uniquely leverages traditional media, digital content, technology platforms and connected devices to deliver engaging branded/company experiences across all marketing mediums.

“With our partnership with DeliveryMaxx, we are able to help our clients engage with their customers like never before. DeliveryMaxx is very innovative they've discovered how to utilize social media marketing, online reputation management, search engine optimization, along with customer loyalty and retention, all combined into one process that allows companies to truly dominate their market” states, Rod Hunter, President/CEO of PTMG.

 

Companies truly want to keep customers for life, but in today’s market, customers have more choices than ever. The biggest problem is being able to talk to potential buyers and tell them your story. With DeliveryMaxx’s innovative processes and patented "Images of Success program," companies have the opportunity to turn a one-time customer into a virtual walking billboard, advertising the great experience that was delivered. Key results are increased repeat sales and referrals, strong branding, dominant web presence, published positive online reviews, greater customer satisfaction, and additional revenue opportunities.

Prime Time Media Group is all about the total customer experience focusing on how their client’s audience experiences their brand as they transition from inquisitive prospects to loyal, repeat customers. Prime Time Media Group solutions have been designed to deliver content wherever the audience lives, both at work and in home environments. “The synergy between our two companies will provide exceptional service to clients creating a marketing strategy that will help keep their customers for life” says Josh Deaton, Chief Operating Officer of DeliveryMaxx.

DeliveryMaxx http://www.deliverymaxx.com provides a total automotive dealership care program providing their clients consumers with social media marketing, online reputation management, search engine optimization, customer loyalty, and retention. They utilized their proprietary software and patented programs to help automotive dealerships maximize their effectiveness positively influencing consumer behavior.

Dodge City of McKinney Teams up with DeliveryMaxx

Dodge City of McKinney Teams up with DeliveryMaxx
to Share a Story of Commitment to Service

"The dealership (Dodge City of McKinney) makes me feel like I am visiting my favorite uncle” says Josh Deaton, Chief Operating Officer of DeliveryMaxx.

Nov 06, 2012 -

Dodge City of McKinney www.dodgecityofmckinney.net (http://www.dodgecityofmckinney.net) just north of Dallas, Texas selected DeliveryMaxx to share its message to the world about how they are providing consumers with a series of revamped cars and trucks that are truly second to none and customer service that will make you feel like family.

Not only does Dodge City carry an outstanding line of vehicles, but their primary concern is the satisfaction of their customers and well-being of their customers.

“When our customer and their family drive from our dealership in their new purchased vehicle, we think about where they will travel. We want to make sure that every vehicle we sell is the right vehicle for our family of customers” states Jim Proctor, General Manager of Dodge City of McKinney.

DeliveryMaxx will help Dodge City communicate with their customers to assure the most pleasant buying experience in the Dallas area. “Recently, I read how Dodge City of McKinney will grant the first wish for the North Texas Chapter of Make-A-Wish Foundation in 2013, and I thought to myself this would be a great company to partner with because they truly care about their community. This also transcends to the way they treat every visitor at the dealership. The dealership makes me feel like I am visiting my favorite uncle” says Josh Deaton, Chief Operating Officer of DeliveryMaxx.

Dodge City of McKinney is located at 700 S. Central Expressway, McKinney, Texas. The dealership is a major supporter in the Dallas/Ft. Worth community. Their sales staff has many years of experience satisfying their customers’ needs, and their service center is complete with highly trained technicians.

DeliveryMaxx www.deliverymaxx.com provides a total automotive dealership care program providing their clients with social media marketing, online reputation management, search engine optimization, customer loyalty, and retention strategically initiated to achieve real measurable results. DeliveryMaxx utilizes their proprietary software and patented programs to help automotive dealerships maximize their effectiveness positively influencing consumer behavior.

 

Southwest KIA utilizes DeliveryMaxx

Southwest KIA utilizes DeliveryMaxx to help their Customers share their Wonderful Experiences with the World For 10 consecutive years Southwest KIA Dealer Group in North Texas has been the recipient of the company’s prestigious Kia President’s Club membership selected from a pool of more than 755 U.S. dealers. KIA USA President’s Club recognizes the “best of the best” dealers who achieve the highest overall sales volume and outstanding customer satisfaction. On any given day, one can visit the dealer which is known for besting any new KIA deal in Texas as stated in their commercials by company president, Bill Dickason and see happy customers. When a customer arrives at the dealership they are greeted as family, and treated to an outstanding buying experience. Customers are given the opportunity to review the dealership before they leave, given a tasty apple pie, and then the moment is captured for a lifetime with a digital picture of the customer and their family in front of their new purchase. “Since we have partnered with DeliveryMaxx, our sales have increased, CSI scores have been at an all-time high, and our customer loyalty is the strongest in the industry” says Steve Dodge, Southwest KIA of Rockwall General Manager. “DeliveryMaxx has been so easy to work with, to deliver exactly what our dealership was missing. We have always been above industry standards, but with DeliveryMaxx we are able to truly share our message with the world because of the technology they have developed” explains Mr. Dodge. “I have been in this industry for a long time, and have never seen a program quite like this. More importantly, DeliveryMaxx’s Images of Success Program has exceeded every expectation that I have had. Because of their program, we are actually selling five to ten additional units each month utilizing their digital solution program.” DeliveryMaxx was founded by Josh Deaton and James Schaefer who have spent their fair share of time in the automotive industry. They are true “car guys” that understand how to help companies, particularly automotive dealerships gain and win customers for life. “Our program is very simple for dealerships to utilize as well as see immediate measurable results in Sales, Social Media Reach, Online Reputation, and additional fixed operation revenue” states DeliveryMaxx’s Chief Operating Officer, Josh Deaton. DeliveryMaxx has a patented program that helps dealerships obtain published positive reviews, strong company branding, outstanding search engine optimization, accurate local searches engines, and a customer loyalty program unlike anything the automotive industry has ever seen. “It is a total dealership customer care program” that will help the dealerships customer return to the dealership time after time for years beyond the initial sale. DeliveryMaxx has developed a program that turns happy customers into virtual social media billboards for the world to see. Key results for DeliveryMaxx clients are increased sales both repeat and referral business, positive online reputation management, strategic result oriented social media marketing, additional fixed operation revenue, lower advertising cost, higher CSI scores, web domination, customer loyalty, and retention. These results are achieved utilizing modern technology and common sense business principles that many companies lack in today’s time.

New DeliveryMaxx Video - Total Automotive Marketing Solution

DeliveryMaxx the industry leader in Automotive Social Media Marketing (SMM) has perfected the science of maximizing the exposure for automotive dealers on the Internet. Utilizing our proprietary software and years of expertise, we can increase your market share and brand exposure through portals such as Facebook, Twitter, Linkedin, YouTube, Flicker and more. We have revolutionized Search Engine Optimization (SEO), Local Search Engine Optimization (LSEO) and Online Reputation Management (ORM).

In today’s marketplace it is vital to have command over your public Brand Image while acquiring and retaining customers. DeliveryMaxx helps you dominate the World Wide Web utilizing your customers as Social Media Billboards which increases your brand share as well as turning a “one-time customer” into a "Customer For Life".

Standing Out in a Crowd - Dmaxx Pro Photography Solution

Dmaxx Pro can assist automotive dealerships in maximizing their internet presence by enhancing the inventory photos. The Customer Drive By has been replaced with the Digital Drive By. Your Dealership needs to put its best foot forward and distinguish it’s self from all the others.

How do you separate your inventory from the dealership down the highway that has the exact same inventory? You already know the answer, The Pictures!

 

DeliveryMaxx Produces New Customer Video for Southwest Kia Mesquite

As part of our Images of Success Program we include a short video for our clients that can but played in the dealership. People always feel good when they see themselves on the WideScreen.

The typical dealership spends millions in advertisement for that “one-time sale.” Why not make an investment in the customer, so the customer will invest in the dealership?

DeliveryMaxx utilizes modern innovations, cross-talking technology, and traditional techniques to allow the customer to show off their new purchase while providing a positive published review of their experience to the world.

Imagine - the power of your customers sharing positive reviews through the world-wide web with their friends and family about the great sales and service your dealership provided to them before leaving the dealership.

Envision - the positive impact to your customer retention, increased sales, and higher CSI by simply providing high quality sales and service and allowing your customers to do what they do best- that is, telling others how much they appreciated the way they were treated and how they got the best price on a great product or service at your establishment

Realize - the scope of this technology along a vast horizon of possibilities for a fraction of the cost of what traditional forms of media and advertising saturation used to cost your store but with limited success.

This is how the Deliverymaxx Images of Success program helps our customers see certain and immediate measurable results. There is no better way to increase referrals and repeat business than this because your customers are doing the advertising for you through their own positive expressions! The internet, social media, blogs, and web-based communities have given ”word of mouth” a whole new meaning; Deliverymaxx will help you harness that momentum.

 

Customer Retention & Loyalty Done Right

Customer Retention marketing is a tactically-driven approach based on customer behavior. It's the core activity going on behind the scenes in Relationship Marketing, Loyalty Marketing, Database Marketing, Permission Marketing, and so forth. Here’s the basic philosophy of a retention-oriented marketer:

1. Past and Current customer behavior is the best predictor of Future customer behavior. Think about it. In general, it is more often true than not true, and when it comes to action-oriented activities like making purchases and visiting web sites, the concept really shines through.

We are talking about actual behavior here, not implied behavior. Being a 35-year-old woman is not a behavior; it’s a demographic characteristic. Take these two groups of potential buyers who surf the World Wide Web:

People who are a perfect demographic match for your site, but have never made a purchase online anywhere. People who are outside the core demographics for your site, but have purchased repeatedly online at many different web sites. If you sent a 20% off promotion to each group, asking them to visit and make a first purchase, response would be higher from the buyers (second bullet) than the demographically targeted group (first bullet). This effect has been demonstrated for years with many types of Direct Marketing. It works because actual behavior is better at predicting future behavior than demographic characteristics are. You can tell whether a customer is about to defect or not just by watching their behavior; once you can predict defection, you have a shot at retaining the customer by taking action.

2. Active customers are happy (retained) customers; and they like to "win." They like to feel they are in control and smart about choices they make, and they like to feel good about their behavior. Marketers take advantage of this by offering promotions of various kinds to get consumers to engage in a behavior and feel good about doing it.

 These promotions range from discounts and sweepstakes to loyalty programs and higher concept approaches such as thank-you notes and birthday cards. Promotions encourage behavior. If you want your customers to do something, you have to do something for them, and if it’s something that makes them feel good (like they are winning the consumer game) then they’re more likely to do it.

Retaining customers means keeping them active with you. If you don't, they will slip away and eventually no longer be customers. Promotions encourage this interaction of customers with your company, even if you are just sending out a newsletter or birthday card.

The truth is, almost all customers will leave you eventually whether you are priced out of their market,have suppior competition, or the customer dies. The trick is to keep them active and happy as long as possible, and to make money doing it.

3. Retention Marketing is all about:

Action – Reaction – Feedback – Repeat.

Marketing is a conversation, as the ClueTrain Manifesto and Permission Marketing have pointed out. Marketing with customer data is a highly evolved and valuable conversation, but it has to be back and forth between the marketer and the customer, and you have to LISTEN to what the customer is saying to you.

For example, let's say you look at some average customer behavior. You look at every customer who has made at least 2 purchases, and you calculate the number of days between the first and second purchases. This number is called "latency" - the number of days between two customer events. Perhaps you find it to be 30 days.

Now, look at your One-Time buyers. If a customer has not made a second purchase by 30 days after the first purchase, the customer is not acting like an "average" multi-purchase customer. The customer data is telling you something is wrong, and you should react to it with some type of strategic promotion. This is an example of the data speaking for the customer; you have to learn how to listen.

 4. Retention Marketing requires allocating marketing resources. You have to realize some marketing activities and customers will generate higher profits than others. You can keep your budget flat or shrink it while increasing sales and profits if you continuously allocate more of the budget to highly profitable activities and away from lower profit activities. This doesn't mean you should "get rid" of some customers or treat them poorly.

It means when you have a choice, as you frequently do in marketing, instead of spending the same amount of money on every customer, you spend more on some and less on others. It takes money to make money. Unless you get a huge increase in your budget, where will the money come from?

For example, let's say you have 1,000 customers, and you have an annual budget of $1,000. You spend $1 on each customer each year, and for that $1, you get back $1.10 in profits. That's an ROI of 10%; you got back $1,100 for spending $1,000.

Now, what if you knew spending $2 each year on a certain 50% of customers would bring back $8 in profits? That's a 400% ROI. Where do you get the extra $1? You take it away from the other 50% of customers. You spend the same $1,000 total and you make back 500 (half the customers) x $8 = $4,000.

If you always migrate and reallocate marketing dollars towards higher ROI efforts, profits will grow even as the marketing budget stays flat.

You have to develop a way to allocate resources to the most profitable promotions, deliver them to the right customer at the right time, and not waste time and money on unprofitable promotions and customers.

For more information creating customer loyalty, visit www.deliverymaxx.com

Good luck, and we look forward to seeing you at the top!

Can Facebook & Social Media Help GM Sell More Vehicles

On May 22, 2012 I wrote a blog asking the public if GM made a wise choice dropping its 10 million dollar advertising spend from Facebook.  (For the entire blog visit: http://deliverymaxx.wordpress.com/2012/05/22/did-gm-make-a-wise-decision-dropping-facebook-as-an-advertising-medium/ )  My position then as it is now is that GM and many automotive dealerships are not utilizing Social Media Marketing correctly in particular Facebook.

In my youth, I lived in a small country town in Texas for a few years.  Often, I would hear the expression, “you can put lipstick on a pig, but it is still a pig…”Decisions regarding advertising by GM look like they are changing, but marketing strategy looks to be the same when you wipe away the “lipstick”.

Often, I quote Albert Einstein’s definition of insanity which is “doing the same action continuously and expecting different results.”

Companies have two schools of thought as to whether it’s worth the investment for paid advertising on Facebook or bypass it and continue using their business fan page which doesn’t cost anything to use instead.  This blog is not entertaining this debate; it is stating that to take part in this particular debate would be the wrong battle to fight altogether.

Advertising 101 says that the more eyes that view your product will give you the exposure to help you sell your product.  It is a law of numbers.  Marketing 101 tells us that the best message that resonates with your audience will help you sell more of your product.  When GM spends hundreds of thousands of dollars in their next advertising & marketing retreat developing the direction of their message, I can’t help to think about how the answer is right in front of their nose.

Advertising 101

Let’s discuss Advertising 101 first.  The more eyes that view your product will give you the exposure to help you sell your product.  Taking this principle to the core- Facebook has over 900 million active users.  Facebook is the world’s largest URL.  Facebook has captured over 75% of Social Media Users.  Your read this correctly.  FACEBOOK is NOT the ONLY GAME in TOWN!  Business must utilize Social Networking sites to market to their potential consumers.  GM needs to develop a strategy that encompasses all of the market.  Most companies try a shot gun approach without truly diving into the analytics of consumer behavior within the confines of Social Networking Sites.  Web 2.0 will allow companies to create a strategy that will weave throughout the web to reach your desired audience.  The key is to create a net large enough that will reach all of your potential consumers.

Marketing 101

Now for the Marketing 101 discussion, I am not going to pretend to have all of the answers for every company’s needed message that they should deliver to the audience.  However, I will stick to the basics.  If a company has a good product or service, a fair price, and exceptional customer care then their brand and reputation will fly through the air like a Michigan cold front in October. The consumer will be the companies best (or worst if one of the three business principles are not met) marketer.

Business 101

Assuming a company has a good product or service, fair price, and exceptional customer care it is necessary to combined Advertising and Marketing like peanut butter and jelly into a strategy that will create the unique taste the consumer is looking for.  Companies need to look at creating a forum (see advertising 101) for their consumer (see marketing 101) to share the benefits and advantages of their product or service.

Results

Key results for automotive dealerships (but you can replace automotive dealerships with any type of company) include strong CSI scores, increased sales, repeat business, more referrals, additional fixed operation revenue, domination of the web or Search Engine Optimization (SEO) value, published positive online reviews or strong Online Reputation Management (ORM), and overall exceptional Customer Loyalty and Retention.  It is about the emotion of the sale isn’t it?  Why not take advantage of what you do the best, and have your customers work to help you sell more vehicles (or product).

About DeliveryMaxx

DeliveryMaxx understands the needs of Automotive Dealerships.  They create real customized solutions that utilize both traditional media and innovative technology that helps dealerships realize tremendous results in turning “one-time customers” into “LIFE-TIME CUSTOMERS”.

For more information, visit http://deliverymaxx.com