Marketing: Make Up of Platinum Performers

Marketing: Make Up of Platinum Performers

Arrow-MarketingAs we just saw, Platinum Performers, on a median basis, devote 5% of their revenue on advertising and marketing in 2013, and they spent that money primarily on traditional forms of advertising: TV, radio, newspaper and direct mail.

Reaching customers digitally is key as well – despite the majority of budgeting going towards traditional forms of advertising. Online coupons are a popular trend among the top performers, with 100% of Platinum Performers offering online coupons to their retail customers.

Additionally, 90.9% of Platinum Performers manage a Facebook page and they are also more likely to have a Twitter and YouTube account compared to other dealers. Lastly, Platinum Performers beat others when it comes to updating their own websites: Platinum Performers are 690% more likely to update their dealership’s website once each week.

“We use Moving Targets for a birthday program where they can come up with a demographic, salary range and an age group and then blast the mailing group with a, ‘Happy Birthday! Come see me for a free oil change’ message.” – Tripp Lee, General Sales Manager of Frasier Tire Service

To further their marketing efforts, 100% of Platinum Performers collect customers’ phone numbers, make/model/year of vehicle, and address. Ninety percent collect a physical address and 63.6% collect an email address. But, only six of 10 Platinum Performers collect vehicle service history.

Other Marketing Details:

  • How do today’s tire dealers get the word out? Well, Platinum Performers have very different ideas about the most effective and efficient means of advertising and marketing:
    • Platinum Performers dedicate an average of 8.9% of their advertising dollars on newspaper; other dealers spend 6.3% there.
    • Radio (10.4% vs. 9.9%) and TV (16.6% vs. 10.4%) also get significant notice by top dealers.
    • Yellow Page advertising, though, only sees an average of 2.3% of the top performer budget vs. 9.5% for other dealers.
    • Unexpectedly, Platinum Performers spend less on events – 6.4% vs. 10.5% – and on their websites – 12.1% vs. 18.3%.
    • Top dealers are on top of things when it comes to social media (10.6% of their budget vs. 4.1% for other dealers), direct mail (12.7% vs. 10.3%), and online reputation management (3.4% vs. 1.5%).

“The local newspaper offers a 4×4 sticker that goes above the fold on the front page. I can reach 24,000 households for $500. We do that eight times a year and promote seasonal specials.” – Tripp Lee, General Sales Manager of Frasier Tire Service

  • Speaking of digital media, 90.9% of Platinum Performers have a Facebook page vs. 75.7% of other dealers; 36.4% have a Twitter account vs. 20.6%; and 36.4% have active YouTube channels vs. 21.5% of the others.
  • When it comes to the game-changing – and relatively simple – act of collecting key customer data, neither group shines. Here is how many claim to regularly collect the following customer information:
    • Phone Number(s): 100% (Platinum Performers) vs. 97.3% (Others)
    • Vehicle Make/Model/Year: 100% vs. 87.3%
    • Street Address: 100% vs. 85.5%
    • Email Address: 90.9% vs. 59.1%
    • Vehicle Service History: 63.6% vs. 40%
    • Customer DOB: 9.1% vs.1.8%
    • Names of Friends/Relatives: 0% vs. 1.8%

“We’re in the 5th largest city in the country – the conventional media advertising here is very expensive. With just six locations, we’re talking almost 5 million people and a large majority wouldn’t come to us anyway because we’re not in their buying market. Someone would not drive a half hour across town to get oil change and tires rotated. Social media allows us to target our customers.” –Kim Sigman, Partner/GM Community Tire Pros & Auto

  • Astonishingly, 36.4% of Platinum Performers fail to perform any kind of customer satisfaction survey, compared to a 43.3% fail rate for other dealers.
  • The most popular method of conducting customer follow-up surveys is online, favored by 45.5% of top performers and 33.9% of other dealers. Next is in-store surveying, done by 9.1% of Platinum Performers and 13.8% of others, followed by a mail-in survey, used by 9.1% of the best dealers and 3.7% of the rest.
  • Location computer systems are used heavily by both sides for things like tire and part ordering, business email, retaining customer records, service bulletin searches and general Web browsing.
  • But business computers are also employed to manage a dealer’s social media (72.7% for Platinum Performers and 50% for others), manage dealer websites (72.7% vs. 48.2%), and handle customer reviews (54.6% vs. 44.6%).
  • When it comes to keeping their dealership websites fresh, Platinum Performers hold an edge: 72.7% of the top dealers update their websites at least once a week, 9.1% say once a month, and 18.2% claim once a quarter updates. Other dealers trend to once a month (40.4%) or less than once a quarter (20.2%).
  • When it comes to monitoring web success, Platinum Performers tend to be a bit more on the ball, with 9.1% reporting daily analytics checks, 27.3% claiming once a week reviews, 9.1% checking their analytics once every two weeks, and the majority – 36.4% – handling it once a month.
  • Conversely, 2.8% of other dealers dig in once a week, 9.4% look at progress once a week, 7.6% check web analytics every two weeks, and 36.8% wait an entire month.
  • When it comes to time invested in social media, Platinum Performers average 3.6 hours per week compared to 3.2 hours by other dealers.

Click here to continue: Platinum Performers Personnel

You May Also Like

Tire Industry Labor Shortage: Improve This to Keep Employees

I’ve spoken to many representatives from manufacturers, wholesalers and retailers who report that techs, counter people, drivers and even white-collar team members have walked off the job, failed to report, or given notice, and their businesses have been impacted by these departures. This isn’t just a tire industry issue—and goes beyond the tech shortage that

Tire Industry-Labor Shortage-Great-Resignation

I’ve spoken to many representatives from manufacturers, wholesalers and retailers who report that techs, counter people, drivers and even white-collar team members have walked off the job, failed to report, or given notice, and their businesses have been impacted by these departures. This isn’t just a tire industry issue—and goes beyond the tech shortage that has plagued the industry for decades.

Consider Software Solutions to Streamline Operations

Representatives from several software providers share how solutions drive efficiency and profitability, as well as what to look for when considering a system in your shop.

software-solutions-stock
How Data, Analytics Can Boost Profitability for Tire Retailers

By collecting and analyzing data about a dealer’s sales history, inventory levels and market demand, data and analytics platforms can analyze the performance of each dealer’s store and recommend actionable improvement opportunities.

How to Start the PPP Loan Payback Process

For many PPP loan recipients, it is time to start the repayment process—or file for PPP loan forgiveness. Read on to find out which portion of your loan may be forgivable and how to apply for forgiveness, as well as how to start the repayment process.

Creating a Positive Work Environment

Larry Sutton of RNR Tire Express shares seven different practices that have helped him create a positive work environment.

Other Posts

EV tire market evolves to meet driver demands

Dedicated EV replacement tires are optimized for range, tread life and reduced road noise.

Bridgestone-Turanza-EV_Hero-Image
Pirelli equips its P Zero Elect tire on the Hyundai IONIQ 5 N

In a two-year collaboration with Hyundai, Pirelli said it developed a custom version of its P Zero tire for the EV.

Pirelli-hyundai-ioniq
Pirelli to produce a complete range of FSC compliant tires for motorsports

Pirelli said that all the natural rubber within the tire complies with environmental and social criteria required by the FSC.

Pirelli-FSC-tires-1400
Pirelli releases Scorpion Zero AS Plus 3 all-season UHP tire designed for SUVs and light trucks

Pirelli said the tire combines the sporty performance of its Zero product line with the durability of the its Plus line.

pirelli Scorpion Zero AS Plus 3