FRIKINtech Service Drive Equity Mining Stats

[Alex Snyder]

Now that we have some time on our SERVICEiQ product I'm ready to put some preliminary stats out in public. I also predict these will be the WORST we'll ever do on this product because we have only utilized a single delivery channel to date: texting. As I type, our engineering team is putting the final touches on email. And this email will be worth another thread! It has such a cool angle that I know the DealerRefresh crowd will like to hear the thoughts behind it.

We also are not taking full credit for a number of the activities customers are doing in our system. We are not tracking if they change their location, what rebates they select, if they update their trade data, nor are we tracking when they change their credit rating in our reporting Why is that? We've been heavily concentrated on getting the customers to get into the system (AKA deliverability) via compliant texting and building out a certified CDK integration. Both are about to hit a phase where we can concentrate on better tracking.

So, with that, here are the WORST stats we should ever see when Mining the Service Drive with live-Equity offers:

• In December, SERVICEiQ generated 66 brand spanking new leads out of their service drive on average. This includes stores like @BillKVMotorCo's who were only live from December 30th, and he attributed 3 sales to it in the first week!
• One quarter of the people who opted-in for our texted equity offer became HIGHLY engaged shoppers. These are people who had a high volume of activity in our system and touched specific buttons like "I want to buy this car" or "I want a trade appraisal." Keep in mind we are not yet tracking other significant areas of high interest, so I anticipate this number climbing.
• After scrubbing for internal work, fleet, prior sold date (when available), we run each RO through an equity-eligibility algorithm and text those eligible customers an opt-in message. Nearly 14% of those customers, in December, opted-in for the offer text. That means SERVICEiQ texting engaged 15x better than traditional email marketing and 30x more than direct mail. This is more than double what traditional text marketing does. And 84% of those customers went on to become brand spanking new leads.

With the coming enhancements: another communication channel, better tracking, and raising levels of new car inventory I believe December of 2021 will be the worst stats month we ever see on SERVICEiQ.

Just wanted to document/share.

 

[BillVaughnAlWestNissan]

In December, SERVICEiQ generated 66 brand spanking new leads out of their service drive on average. This includes stores like @BillKVMotorCo's who were only live from December 30th, and he attributed 3 sales to it in the first week!

I can confirm that these were completely fresh leads as well. We had no active deals working with any of these customers. We currently have several still working.

 

[Alex Snyder]

And the fun continues...

Pictured are screenshots of a few stores' SERVICEiQ customer activities this month. This is two weeks of data. I've never seen anything like this in my career.

 

[BillVaughnAlWestNissan]

Pictured are screenshots of a few stores' SERVICEiQ customer activities this month. This is two weeks of data. I've never seen anything like this in my career.

I think it is important to note to that we are a very rural dealer in the very Northeast of Missouri who averaged 147 units per month last year. We're a town of only about 17,000 and that's counting the college students from two universities who basically don't count for us. That's a pretty good spread for this area if you ask me.

 

[Tom Harsha]

I think it is important to note to that we are a very rural dealer in the very Northeast of Missouri who averaged 147 units per month last year. We're a town of only about 17,000 and that's counting the college students from two universities who basically don't count for us. That's a pretty good spread for this area if you ask me.

It's been amazing watching your store light up with hand raisers from existing service customers each day. The volume of text offers automatically sent out to eligible customers and the leads flowing directly to your CRM is really fun.

 

[BillVaughnAlWestNissan]

It's been amazing watching your store light up with hand raisers from existing service customers each day. The volume of text offers automatically sent out to eligible customers and the leads flowing directly to your CRM is really fun.

And I don't think we've even touched the surface of what we can do with them yet. We're still trying experimenting with various things to see what works and what doesn't.

 

[Alex Snyder]

Got a little vacation this month, so I'm a few days behind on sharing January numbers.

I am SO STOKED to see consistency in service customers opting-in to receive an equity offer via text message. It has been hovering just under 15% month after month. January broke 15% for the first time, and that was a 3x increase in the number of texts delivered from December! All of these customers are clicking into the offer and playing within our illumiQUOTE app. That's a great hand-raiser! You don't get leads like that from CarGurus.

What does that mean?

• Service departments are good at collecting active cell numbers
• When there is a good cell number ~15% of those customers are becoming leads

How many leads are we talking?

If the average dealership is doing 1,300 ROs per month, around half are currently eligible for an equity offer via a text message. We also fire an email to all customers who qualify for an equity offer too. Email has been significantly SOLID! Between email and texting, we fired 86 leads on average into SERVICEiQ dealership's CRM.

Nobody worked a lead in our system... unlike other equity mining solutions. And nobody made a "cold call" where the customer hadn't played with their own equity offer first.

 

[Alex Snyder]

Another dealer was excited enough about the first week on SERVICEiQ to send us a screenshot. He claimed his salespeople are changing lead sources, so there are at least 2 to 3 more delivered deals than what is shown. With their depleted new car inventory, he went on to say many of these leads are working or have orders on incoming units.

Just on these 4 deals alone, this Kia store paid for 16 months of SERVICEiQ at our current special price.

$21,000 of gross / $1,299 month of SERVICEiQ = 16 months made up in the 1st week!

 

[Christine Plunkett]

Guys,
Yoooooooooooooo! How did I just see this? Hand on the bible, I believe SERVICEiQ is the best offering yet from FRIKINtech and that's no exaggeration. This is the anti-cold-call.

I work at Priority Acura in Chesapeake and about 50% of my day is dedicated to calling SiQ leads because they're the highest converting since I started here.

Yesterday I called a guy in a 2006 RL... he giggled. I said, "You know why I'm calling don't you?" He said, "Yeah, I knew when I clicked that text, I guess I do need a new car!" -> A conversation and a few text messages later he arrived at the store and traded for a new RDX. It wasn't even on his mind !! (or at least, no one had given him the prompt he needed to consider a new one.) He's a V.P. at a local bank. Just needed a push. Easy call, easy appointment, easy deal. Easy peasy.. I love SERVICEiQ! Thanks Alex and team.

 

[Tallcool1]

I am very interested in watching this unfold. My prior experience with Equity Mining has been that it works fantastic for about 3-6 months (depending upon the driving cycle of the owner base) and then it slows significantly after that. I am certain that it is still worth doing, just that the results tame down a lot after the first initial attempt per equity position owner. The current market certainly helps! Isn't everyone in an equity position?