Mature Vehicles Bring in New Money

How GSM created a new strategy to reach customers with high-mileage vehicles

Challenge

The Rohrman Auto Group is a high performing group of dealers with strategies in place to retain customers and drive revenue. As a challenge to further increase their revenue potential, they wanted to utilize a new approach that would grow their average RO totals and capture inactive customers.

 

My repair order amounts for MVP customers tend to be 59% higher on average than for lower-mileage vehicle owners.

Ken Wahl, Service Manager at Honda Schaumburg

How we helped

GSM’s Mature Vehicle Program (MVP) is designed to increase RO dollars by targeting higher mileage customers, making it the ideal program to achieve Rohrman’s goals. Mature vehicles require more maintenance and have a higher RO dollar potential for defector items such as tires, brakes, and batteries - guaranteeing increased revenue for the dealership. The MVP strategy also uses a highly-targeted direct mail approach that allowed The Rohrman Group to reengage inactive customers.

Results

• $1.4m generated in customer-pay revenue from six MVP mailers
• $81 per $1 spent return-on-investment
• 13% increase in total sales for the dealership

Overall, dealerships saw:
• $100 increase in mature vehicle RO totals ($)
• 32% increase in number of ROs
• 29% increase in MVP ROs within the first six months of roll-out

Solutions used

Custom mailers helped the auto group reach its goals with:
• Postcard mailings every two months kept the Rohrman dealerships top-of-mind
• Exclusive high-mileage offers and messages targeted to mature vehicle owners promoted loyalty to the dealership
• Mailers highlighted the dealership’s high-mileage expertise
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$1.4M

$1.4 million dollars generated in customer-pay revenue from six MVP mailers
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$81:$1

The return-on- investment was an impressive $81 per $1 spent
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32% INCREASE

There was a 32% increase in the number of ROs
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$100 INCREASE

Mature vehicle RO totals ($) increased by $100

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