Dealerships have an epidemic on their hands, one that’s growing out of control and killing their profits. It’s happening in every showroom from coast to coast, and the culprit is right under their nose. It’s an inside job that’s ruining marketing efforts and wreaking havoc on promotions, factory incentives and special offers.
Moreover, this problem is costing every dealer a huge share of the market, along with tens of thousands of dollars each year. But we’re not talking about a software virus or some anti-automotive double agent who’s hacked into the system. We’re talking about Dirty Data - inaccurate, expired, outdated contact information that clogs the dealer’s CRM and makes running effective marketing campaigns nearly impossible - all while creating massive technical and legal headaches.
And while your dealership may have made an expensive upfront and ongoing CRM investment, dirty data is living in your CRM right now, turning 80% of your organic, third party leads into profits for the competition. This epidemic of dirty data diminishes the value of your digital leads by making it nearly impossible to contact them, let alone sell them a vehicle. And yet thousands upon thousands of these leads are simply being sucked into the 3 Trillion- dollar black hole of residual dirty data from US businesses.
According to a recent Gartner, Inc. study, dirty data is responsible for roughly 40% of all failed business initiatives making it one of the biggest threats to new businesses. The reason? Leads were never converted into sales because the prospects never even received the message. Day after day, marketing efforts are rendered ineffective and sales are lost, all because these small instances of outdated, erroneous data have now compounded in the CRM and are growing out of control.
According to NADA the National Closing Ratio for leads in a dealership are a dismal 12%. That leaves 88% missed opportunities that are piling up in your CRM. And when a portion of these prospects are entered erroneously or have opted out of your marketing campaigns, they compound the amount of data that gets sucked into the 3 Trillion-Dollar Black Hole of unusable data.
So how can you combat this growing epidemic?
There is a 4 step process that will combat this for you.
Step 1: You must EXTRACT the data from your CRM in order to hygiene it.
To get to the heart of the problem, you begin by stripping away all of the dead weight. But how do thousands upon thousands of inactive leads pile up so quickly?
Because according to the latest CAN SPAM and TCPA regulations, dealers have only 60 days to convert a lead. After that, the lead is considered lost or missed, unless the customer has chosen to opt-in through a verified, CAN SPAM compliant process.
If not, the dealership loses the right to market to them. And meanwhile, those leads get piled onto the already massive heap of dead data clogging the CRM.
So, while these regulations were created with the intention of protecting the consumer, they consequently end up costing the dealer vital sales opportunities and tens of thousands of wasted marketing dollars each year.
In fact, a 2014 study by J.D. Power & Associates showed that a whopping 63.4% of all internet leads in the automotive space are being dropped 60-90 days too soon - well before the lead is actually ready to make such a large purchase
And according to the same study, more than half of all car buyers need at least six months to complete this process. After all, for most people, purchasing a new vehicle is a major decision that takes time to work up to.
Step 2: Hygiene
Once you’ve gone through your database and extracted all of the dead leads, you have to take it one step further and weed out the next guilty party clogging the CRM: duplicate records.
These typically result from a combination of systematic and human error, and on average, duplicate entries account for roughly 25% of all CRM leads.
Step 3: Datafi™
Your CRM needs to work for you, not against you. So once you have a solid CRM foundation and a clean slate, you must fill in the gaps with the most relevant and up-to-date information. No more spending crucial marketing dollars on leads that don’t exist.
Dataify™ was developed by ePush! and is a proprietary system that pings your clean, stripped CRM data against our proprietary Vehicle Intender (Vi7.5) consumer database, consisting of over 320 million double opt-in email addresses and contacts.
Your newly-organized data sets are then cross-referenced and appended with every available piece of accurate and useful information.
The best part? Our database is a ‘right to market’ database, which means that you now have the right to market to these fresh, opt-in email addresses.
And our patented hygiene process puts all of your CRM leads in full compliance with the CAN SPAM and TCPA 60-day regulations mentioned above.
Step 4: Engage
Now that your CRM has been cleaned and your remarketing efforts restored with fresh, opt-in data that you can actually use, it’s time for the final step of the process: putting this data to work for you. That means communicating and marketing to your ideal customers effectively and consistently.
In order to appeal to these fresh, untouched leads, you must reach out to them with OEM approved HTML creatives, using a throttle technique to ensure a steady flow of traffic to your dealership.Now you can start by emailing these conquest customers to reintroduce and reconnect to your dealership as interested prospects. Your sales are all that matter in the digital realm as new developments and opportunities emerge every day.
To stay ahead of your competition, you must be an early adopter of new trends and always be ready for the next breakthrough in digital marketing.
Don’t get caught in the 600 Billion-Dollar Black Hole of data. Put your Dirty Data to work for you and start reaping the rewards of marketing to a clean CRM.
Check out 5 Ted Talks to watch if you want to understand more about Big Data.
Learn what this epidemic is costing your dealership and how to fix it by downloading our Free White Paper.