The document provides information on the Rastar Dealer Solution, which uses customer data and segmentation to implement targeted marketing communications. It discusses identifying customers who are ready to purchase, conquest prospects, and customers who are "in the market". It also outlines segmentation of service customers and sample marketing letters tailored for new customers, rising customers, and high-value customers. The goal is to increase sales, service retention, and develop customer loyalty through personalized dialogue marketing.
3. ONE-TO-ONE MARKETING
Sending the RIGHT MESSAGE to the
RIGHT CUSTOMER at the
RIGHT TIME.
4. RASTAR DEALER SOLUTION
A Dialogue Marketing Approach
IMAGINE THE NEW SALES POTENTIAL
You know that your sales customers share common traits. What if you could take a snapshot of
your best customers and find others just like them who have not considered your dealerships in
the past?
Now you have a powerful set of tools to help you attract and sell to car buyers before they visit your
competitors. Rastar provides extensive data-mining services to build a list of prospects who share
the same characteristics as your current customers.
Think of it. These are people who would be likely to consider your dealerships when making their
next vehicle purchase; they simply haven’t been contacted by you yet.
When you combine a highly targeted mailing list with powerful creative and compelling offers, the
result is increased showroom traffic and, ultimately, more sales.
CREATING MORE OF YOUR BEST SERVICE CUSTOMERS
Once you make a sale, your ongoing business success depends on loyal customers who regularly
bring their vehicles in for service, repairs, tires and accessories. Taking good care of these high-
value customers is a smart strategy.
But not all customers are created equal. Some buy and then only come in for occasional service.
Others buy a car and then disappear. By creating a dialogue with customers to better understand
their needs, you can tailor incentives to turn “struggling” customers into high value customers.
The Rastar Dealer Solution allows you to send the right message, to the right customer at the
right time.
SET THE BENCHMARKS
To measure the success of your
marketing efforts, it’s critical to
start with benchmarks against
which you can measure.
The Valu-Trak Report can provide
you with your exact starting
benchmarks for sales, service,
retention and more. It also shows
the areas to target for greatest
improvement.
The Valu-Trak Report is a
powerful tool to increase sales
and retain service customers.
The additional revenue potential
is huge.
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5. SEGMENT THE AUDIENCE TYPICAL CUSTOMER SEGMENT BREAKDOWN
STRUGGLING CUSTOMERS HIGH VALUE CUSTOMERS
Customers for sales and service fall into
1900 CUSTOMERS 1200 CUSTOMERS
several categories. Each of these segments 15.7% 9.9%
should be treated differently, with
communications and offers that address DEFECTED CUSTOMERS NEW AND RISING CUSTOMERS
8000 CUSTOMERS 1000 CUSTOMERS
their specific needs and interests. 66.1% 8.2%
The main audience segments are:
Sales
• Ready To Purchase (customers who probably will buy soon)
• Conquests (prospects who are similar to your best customers)
• In The Market (people who have told you they will buy soon)
Service
• New Customers (recent buyers and service customers who will need future service)
• Risers (customers who come in often)
• High Value (customers who come in for all their service)
• Strugglers (customers who may be going elsewhere for service)
When you know each customer’s level of past spending—and their potential for future spending—
the communications to them can be customized with exactly the right message and offers to bring
them in again.
CREATE A DIALOGUE
When customers come in for a test drive or for your current sales and service offers, you have
positive feedback. The natural result is increased sales and revenue.
But even if some customers don’t
come in, the Rastar Dealer
Solution offers easy ways for them
to respond —on a reply card or on
a website. This dialogue, or two-
way communication, is
a huge step toward knowing what
they want, being able to offer it to
them and increasing their level of
business with you.
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6. SALES COMMUNICATIONS
OVERVIEW
In your customer database is a very predictable number of customers who will purchase a new or
used vehicle this month. Whether they purchase from you or someone else, they will buy—soon.
Some are at the end of their leases. Others are coming to the end of their financing terms. And
still others are simply at a point where they are ready to purchase or lease a vehicle now.
The trick is to know who those customers are. And that’s a skill we’ve got nailed down!
By communicating frequently with these customers—at just the right time with exactly the right
offers—we can increase the number of customers who make a repeat purchase.
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7. CREATE A DIALOGUE WITH CUSTOMERS AND PROSPECTS
Each dealership sends a sales promotion
letter with current offers to customers and
prospects who, based on our analysis, are
selected as “Ready To Purchase” a vehicle.
A significant number of these customers and
prospects tell us—on the reply card or website—
what and when they plan to purchase. These
hand raisers are now treated as “In The Market.”
We now send a customized “In The Market”
letter to each hand raiser, featuring a photo
of the preferred vehicle. Sales offers and spe-
cial incentives are highlighted.
These hand raisers
respond by coming
in to buy or lease
a vehicle.
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8. Customers Who Are
READY TO PURCHASE
There are a few major reasons why existing customers decide it’s time to buy a new vehicle.
1. They are coming to the end of their leases within the next nine months.
2. They own an older vehicle that is ready to be replaced.
3. They are coming to the end of their financing terms.
STRATEGY
By sending these customers personalized mailers and e-messages relevant to their decision to
buy, we can increase the number of existing customers who come back for a repeat purchase.
We can also get them to tell us well before they purchase what they are looking for and when
they intend to buy. This gives you a chance to carry on a dialogue with them before your
competitors are even in the game.
MESSAGING
• We value your business.
• We invite you to let us know when you will be in the market.
• If you are ready now, you deserve something extra for your loyalty.
RESULTS
• They will come in and buy or lease a vehicle.
• They will raise their hands—on the website or by reply card—to say they are considering a
vehicle. This puts them “In The Market.”
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9. READY TO PURCHASE SALES LETTER
Dealership information
Sales theme
The letter tells “Ready to
Purchase” customers that
we value them and invite
them to come see our
latest savings and offers.
Billboard messages include
pre-owned vehicles, new car
offers and special store
messages.
We ask them to tell
you their upcoming
purchase plans.
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10. Prospect Communications for
CONQUEST SALES
OVERVIEW
Instead of trying to acquire new customers by mass-mailing to everybody—which is costly—
we’ll create a profile or “model” of your best customers. Then we’ll find other people in each
market area who have the same interests, preferences, lifestyles, income and more. This is a
more effective way to get better prospects and make more conquest sales.
STRATEGY
By sending these prospects personalized mailers and e-messages relevant to their interest in
buying, we can start a dialogue long before the competitors are even aware of these prospects.
We motivate them to come in for a test drive or reply with details on what and when they intend
to purchase.
This approach increases your conquest sales now. It adds new customers to your database. And
it increases your ability to sell more service, parts, accessories—and repeat vehicle purchases—
in the future.
MESSAGING
• You seem like our kind of customer—we’d like to be your dealer.
• We invite you to let us know when you will be in the market.
• If you are ready now, we’d like to give you something extra for choosing us.
RESULTS
• They will come in and buy or lease a vehicle.
• They will raise their hands—on the websitte or by reply card—to say they are considering a
vehicle. This puts them “In The Market.”
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11. CONQUEST SALES LETTER
Billboard messages include pre-
owned vehicles, new car offers and
special store messages. The letter tells prospects that “we
carefully selected you as our kind of
customer” and invites them to take
advantage of your latest offers.
Featured offer
We ask them to tell
you their upcoming
purchase plans.
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12. Customers and Prospects Who Are
IN THE MARKET
OVERVIEW
Most hand raisers are willing to tell you when they intend to purchase, what vehicles they want to
consider and where they intend to make their purchases. We call this “dialogue marketing”—
which means we are listening and responding to what they ask for.
Finding and communicating with these hand raisers gives you a competitive edge and a big
head-start compared to your competitors. Given the current market, you need this kind of edge.
STRATEGY
We communicate with these hand raisers every month until they make a purchase or indicate
that they bought elsewhere. The goal is to get them to come into the store for a test drive and then
to discuss current incentives. For existing customers, we may offer them something special for
coming in to consider a vehicle purchase.
The letter includes information, current offers and a prominent picture of the exact vehicle they
are considering.
MESSAGING
• You told us what and when you want to buy—and we listened.
• Here’s a photo of the model you like, along with current incentives.
• We invite you to come in to test-drive this model.
• If you’ve changed your mind on the model or timing for your purchase, simply tell us and we’ll
provide new information to accommodate your plans.
RESULTS
• They will continue to tell you their plans, or any change of plans.
• They will come in and buy or lease a vehicle.
• They will become loyal service customers and, eventually, repeat buyers.
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13. IN THE MARKET SALES LETTER
Billboard messages include pre-
owned vehicles, new car offers and
special store messages.
The letter tells people who are “In The
Market” that we listened, and we name
their vehicle in the letter copy. They
are invited to come in and test-drive
their selected vehicle.
We feature a
photo of the
exact model
each recipient
requested.
We ask them to let you
know if their model
preference or purchase
timing has changed.
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14. SERVICE AND PARTS
OVERVIEW
After customers buy a vehicle, some are naturally consistent about coming back for service.
Others are not. By managing communications to fit each customer’s activity and timing, we can
increase retention throughout the ownership cycle.
The service letters open a dialogue with customers. The offers match the service schedule for
their vehicles, along with other savings they might like, such as detailing or accessories. In
addition, the reply card questions encourage customers to talk to us about their satisfaction,
plus future service and vehicle purchase plans.
By tracking customer visits and responses, we will know whether or not they are remaining
loyal to the store. Loyal customers receive “thank you” messages and moderate offers.
Potential defectors are told of the advantages of dealer service combined with deeper discounts
on vital maintenance.
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15. SERVICE LOYALTY SEGMENTATION
Service customers fall into the following segments:
NEW CUSTOMERS
• These customers just came in for their first service transaction.
• They either just purchased a new vehicle or bought a vehicle somewhere else and came in for their
first service visit.
RISERS
• These customers are in the early stages of their customer experience.
• They will be due soon for their second, third or fourth service visit.
• They have been in for service recently.
HIGH VALUE CUSTOMERS
• These customers come in more often than average—4 or more visits.
• They spend more when they come in.
• They came in recently and will return again soon.
STRUGGLERS
• These customers are about to miss a critical service visit.
• They have not been in by the predicted date and need encouragement.
• They could have fallen into this group from any of the other groups.
FORMER CUSTOMERS
• These customers have not been in for service for a long time.
• They are difficult to get back into service.
• They are best approached to purchase or lease another vehicle.
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16. Service and Parts
NEW CUSTOMERS
WHO ARE THEY?
• These customers just came into the dealership for their first transaction.
• They either just purchased a new vehicle or bought one somewhere else and came in
for their first service visit.
STRATEGY AND MESSAGING
• Thanks for purchasing a new or used vehicle, or thanks for coming in for your first
service visit.
• Thank you for choosing us—be sure to visit us for your next scheduled service.
• You have chosen an excellent dealership offering special benefits and privileges.
• Servicing your vehicle regularly is a great investment.
• Let us introduce you to our service department.
• Here are some incentives and coupons for your first visit.
• Please fill out the reply card so we can serve you better.
FREQUENCY OF COMMUNICATIONS
• Only once, and within a few weeks of purchase or first service visit.
The letter is a “Thank You” for choosing your dealership
and directs them to the savings coupons on the back for
future service and parts purchases.
Features dealer service
advantages or a service
reminder.
Billboard messages include
service offers or fulfill co-op
program requirements.
We invite them to tell you
more about their service
preferences.
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17. Service and Parts
RISERS
WHO ARE THEY?
• These customers are in the early stages of their customer experience.
• They will be due soon for their second, third or fourth service visit.
• They have been in for service recently.
STRATEGY AND MESSAGING
• We appreciate your growing loyalty.
• Consider all the different services we offer.
• Maintaining your vehicle with us is a smart decision.
• You need to come in regularly to keep your vehicle in top condition.
• Be sure to bring your vehicle back for the next visit soon—especially with some of
these savings.
• Please fill out the reply card so we can learn what you think and want.
FREQUENCY OF COMMUNICATIONS
• Every three months.
We invite them to tell you how you’re
doing, to recommend you to friends,
The letter congratulates
and to tell you about their next vehicle
“Risers” for maintaining
purchase plans.
their vehicles well,
emphasizes the advantages
of continuing to choose you
for service and directs them
to offers on the back.
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18. Service and Parts
HIGH VALUE CUSTOMERS
WHO ARE THEY?
• These customers come in more often than average—4 or more visits.
• They spend more when they come in.
• They came in recently and will return again soon.
• Most of these customers will come in anyway.
STRATEGY AND MESSAGING
• We appreciate your loyalty and business.
• Here’s a small token of our appreciation for your loyalty.
• What can we do to help you with your vehicle needs?
• Would you consider doing even more business with us?
• Be sure to come back for the next service visit soon—especially with these savings offers.
• Please fill out the reply card so we can learn what you like, what you want or if you plan to buy
a vehicle soon.
FREQUENCY OF COMMUNICATIONS
• Send them a communication two times per year.
The letter thanks them for their loyalty and business,
emphasizes the advantages of continuing to use you
for service and directs them to offers on the back.
Billboard messages include service
offers, parts and accessories, the
option of a dealer “Thank You” gift
on their next visit, or to fulfill co-op
requirements.
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19. Service and Parts
STRUGGLERS
WHO ARE THEY?
• These customers are about to miss a critical service visit.
• They have not been in by the predicted date and need encouragement.
• They could have fallen into this group from any of the other segments.
STRATEGY AND MESSAGING
• Bring your vehicle in for the next scheduled service. (We want to rescue these customers before they defect
from the dealership forever.)
• Here are bigger savings to motivate you to come back. (These are stronger incentives than any other
segment receives.)
• What can we do to get you back?
• Why are you leaving? Can we can fix it?
• Please fill out the reply card so we can learn more about your thoughts.
If they do not respond to the last struggler mailing or e-message, we will phone them for a personal
conversation with offers.
FREQUENCY OF COMMUNICATIONS
• First communication when they are within 60 days of the predicted defection date.
• Second communication when they are within 30 days of the defection date, if they do not come in after the
first communication.
• If they do not come in after the second communication we will make a phone call within 5 days of the
predicted defection date.
This may vary by brand and service interval, but may
The letter talks directly about service that is now feature estimated mileage, a service light system,
due and urges the customer to come in. Store services needed or a specific service offer.
advantages are highlighted. The large savings in
the offers are pointed out.
We ask them if they are servicing their vehicle
elsewhere, why, and what you can do to win
their business back. We also ask about their
next vehicle purchase plans.
FORMER CUSTOMERS
• These customers have not been
in for service for a long time.
• They are difficult to attract back
for service.
• They are best approached in the
sales program when it’s their
predicted time to purchase or lease
another vehicle.
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20. CO-OPERATIVE PROGRAM SERVICES
Rastar provides extensive services to help dealerships ensure that their
campaigns are eligible for available co-operative program funds.
DESIGN
We have a large knowledge base of co-op program requirements for major auto manufacturers.
Our creative team designs campaign materials to meet these co-op requirements. This includes
correct language, images, trademarks, etc. and incorporation of state-specific disclaimers on
MSRP and lease offers.
PRE-APPROVAL
Prior to printing, Rastar’s co-op specialists submit campaign letters to the manufacturer for
pre-approval. If changes are required, our co-op specialist works with the manufacturer and/or
the client to collect required information. With changes incorporated, the co-op specialist
resubmits the letters to the manufacturer. Upon manufacturer approval, campaign materials
move into production and printing.
CLIENT SUBMISSION ASSISTANCE
After mailing, Rastar provides the client with the following materials to facilitate client submission:
• Printed letter sample
• Postal receipt
• Itemized statement of costs
• Copy of the pre-approval notice
In some cases, manufacturers require a list of mailing recipients. Rastar provides mailing lists in
manufacturer-required format.
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21. GM CO-OP SAMPLE:
The GM Goodwrench logo must
occupy space on the front and
back of the letter size equaling 5%
of the total letter.
This logo must also appear
on each coupon.
Dealer information, location, hours, contact,
etc. must be listed.
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22. TOYOTA CO-OP SAMPLE:
Toyota red/black/white logo should be: black
logo on light/white background or a white logo
reversed out of Toyota red or on a field of 70%
or darker.
Dealer information,
location, hours,
contact, etc. must
be listed.
“Parts and Service” logo, and
“Moving Forward” logo must appear
secondary to main Toyota logo.
If dealership doesn’t have its own
URL, www.toyotaownersonline.com
must be included.
Recommended Service — On service letters,
the recommended service needs to be detailed
and coincide with the estimated mileage listed.
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23. HYUNDAI CO-OP SAMPLE:
The flying H and logotype must be used
together at all times.
The “Hyundai Genuine Parts” logo or the
“Hyundai Genuine Service” logo must be
used on all service letters.
“America’s Best Warranty” must be
referenced in the body copy of the letter
at least once.
Recommended Service — On service letters,
the recommended service needs to be detailed
and coincide with the estimated mileage listed.
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24. REPORTS AND METRICS
The bottom line of this program is your bottom line. One of the best ways to achieve success
is to increase the lifetime value of existing customers. Through reports and metrics, we will
see how to increase the loyalty and profitability of your customers. We’ll also know the exact
return on investment.
REPORTS
Measuring performance is the key to effective campaign management. The monthly reports
will tell you what was mailed, to whom and the results. You’ll see a breakdown of campaign
performance along multiple dimensions.
• Overall campaign results and effectiveness.
• Specific response and conversion rates by segment.
• The migration of individual customers toward greater or lesser loyalty.
• The effectiveness of follow-up communications to customer responses, service and sales
purchases and repeat transactions.
• Key dealership performance elements.
• Areas for improvement.
METRICS
The metrics for a program like this are complex—but also provide the power to achieve an all-
new level of success. From baseline benchmarks to predictive modeling, metrics are at the
heart of being able to send the right message, to the right customers, at the right time.
• Analytics include customer transaction history, prospect selection models, geographic
analysis and more. A key analytic is identifying lifestyle characteristics of current
customers.
• Segmentation divides customers into groups with similar characteristics, such as
potential buyers or service customers. These segments are used to target messages
and offers.
• Profiling tells who your customers really are based on key behaviors, demographics
and lifestyle. In the end, we are better able to target the right messages and offers.
• Predictive Modeling is a sophisticated technique to analyze past behaviors of each
customer segment—then be able to predict the likelihood to respond to an offer,
increase in loyalty, service more often and, eventually, purchase a vehicle again.
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25. Monthly Reports on Our Campaigns
You will receive comprehensive monthly reports, including this “Executive Summary” of results
for the most recent marketing campaign.
Online Reports and Metrics
You will have access to a powerful Web tool called PointCast, which enables you to see and update
customer data, run reports, modify program parameters and more. This real-time tool shows
customer responses as they come in. You will also be able to access online dealership marketing
tools as they are developed.
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26. NEED MORE INFORMATION?
For answers to questions on the
Rastar Dealer Solution, start here:
Darren Gray
National Sales Executive
dgray@rastar.com
(801) 990-6495