Mike Miller Hyundai

Client: Mike Miller Hyundai
Industry: Automobile Sales and Service
Goal: Drive Increased Sales

Mike Miller Hyundai Takes A U-Turn Sales Approach
Vontoo Drives Revenue Increase for 4th Quarter

With the auto industry in turmoil during the current economic downturn, car dealerships are struggling to stay afloat with hundreds of dealerships closing around the country. The ones still surviving are continuously looking for creative ways to drive sales. One dealership thinks it has found the winning solution – focusing its attention and efforts on a very important group, its existing customers.

Mike Miller Hyundai is a mid-sized dealership in Peoria, IL with fifty employees. In November of 2007, Russell Herman, the service manager for the dealership, had a revelation – that catering to existing customers is just as important as bringing in business from new ones. While new customers are great, the dealership has a preexisting base of customers who need routine service work. Mike Miller decided to capitalize on these customers who can still use its services – in the form of oil changes, tune-ups and other auto repair work. Herman therefore implemented an innovative communications campaign for customer retention which is not only helping bring revenue to the dealership now but is also cultivating positive relationships with customers for the future.

“In these tough economic times, we want to show our customers we appreciate them and value their business,” said Herman. “And by ensuring loyalty among these existing customers, we can maintain sales despite selling fewer cars due to the economic downturn.”

As part of this plan, Herman convinced his dealership to stop sending direct mail and start using voice messaging technology instead. He wanted a method of reaching out to past customers via the phone and came across Vontoo online. He was immediately impressed with the service’s ease of use, low cost, speed of implementation and ability to “pay as he calls,” instead of having to purchase a bulk package in advance. Herman began to record personal, pleasant reminders to past customers due for an oil change, maintenance check up or scheduled appointment. He said his customers largely appreciate the friendly reminders, since the calls remind them of necessary work needed on their cars or an appointment already scheduled. Of thousands of calls he has sent out over the past year, only ten recipients have opted out of receiving future messages.

“Our customers love our messages!” said Herman. “When they call to schedule appointments, they always thank us for the reminder, saying they were aware they needed an oil change but kept forgetting to make an appointment. It’s a win-win for everyone!”

Herman’s efforts at bringing past customers into Mike Miller have achieved great, measurable results. While customer retention for dealerships, on average, is 35% – his is 52%! An auto dealer down the road from Mike Miller is quoted as saying this is the slowest his business has been in 26 years, and that two to four thousand dealers nationwide are expected to fail this year. Mike Miller, on the other hand, has brought in more business than it can handle. Herman and his team now handle 1,500 cars per month in service, which is very high for a dealership of its size.

“I’ve actually had to put calling campaigns on halt due to the overwhelming response from customers,” said Herman. “Each time I send out a call, my entire staff immediately knows about it because their phones light up like a Christmas tree with customers calling to schedule appointments.”

During non-promotion times, the service bays at Mike Miller Hyundai are typically 90% full. When Herman sends out a Vontoo call, this typically results in his bays being 120% filled to capacity. Within several hours of sending out a Vontoo call, the inbound phone calls to his service shop jump almost immediately by 30-40% with customers calling to make appointments. This jump in call volume remains consistent for several days after a call is sent out. By sending out a Vontoo call, Herman will go from having appointments booked solid for 2-3 days out to having appointments booked solid for 5-6 days out.

Herman was also very pleased at Vontoo’s low cost. The dealership currently spends about $200 per month on sending Vontoo calls, whereas sending a direct mail piece to the same customer base would cost around $2,000.

Mike Miller Hyundai is one of about a hundred auto dealerships across the country utilizing Vontoo’s technology for communications purposes. For more information on Mike Miller Hyundai, please visit http://www.mikemillerautopark.com/.