You move 16 tons, what do you get?

[LargeB]

Equity Mining/Call Campaigns

Hey all, getting back into the car world after a few years of absence; and I'm working on creating an equity mining process. Does anyone have any thoughts/ success stories for having a sales team do single shot calls vs call, text, email follow up over a set time?

For the most part, we all know that mining needs a lot of labor to yield any results, and I'm curious if I'm better off maximizing volume of calls vs working the individual calls a bit further.

Any insight would be greatly appreciated.

 

[Alex Snyder]

If you've been out of the business for a few years, it is understandable that you wouldn't know options exist to automate equity mining. You can let the technology identify the right customers in equity and configure it to target the cars you want. Then, it sends the offers out digitally (text & email) to push the customer to a digital experience. You get to choose the customer's engagement level with the digital experience before a lead is sent to your CRM to call. It takes the "cold calling" aspect out of equity mining.

As a bonus, the nature of that automation + digital experience allows for conquesting of the service drive. You don't have to have an exact knowledge of the customer's payoff. In a digital world the customer can take control and adjust things for the condition of their trade, whether they even want to trade it (many just want to sell their car outright to you), their downpayment, and they get to explore every car you can sell them.

You can't do any of that with a static offer (mail or email that doesn't have a changeable payment/experience) that ONLY shows the customer they can upgrade to a newer version of the same car they're already driving. 83% of customers bought a different model than what they traded in 2023.

For transparency's sake, I am referring to a solution my other company offers.

 

[Carsten]

Any stats on why they changed make/models?

 

[Alex Snyder]

Any stats on why they changed make/models?

My wise used car manager from 30 years ago used to say, "80% of people don't buy what they set out to buy." 30 years later, I'm no longer pounding pavement and can look at nationalized data to prove him right.

The answer to "why a person does something" is impossible. My theory is that people like to change things when owning something newer. Think about how many times you bought the same make/model two times in a row. Out fo the 40ish cars I've owned, I did it once.

 

[ryan.leslie]

According to the NADA '23 stats that were released recently, one of the reasons in today's market is affordability. Our data is in full agreement.

Not a pitch, just an explanation, we see this happening in live site data while tracking individual user. Consumers want the biggest, best-equipped unit and submit a lead on it... then they discover interest rates at 11.99%, trade values not as high as they were during the inventory crunch when every dealer wanted to buy THEIR car, and then they switch themselves down-market pretty quickly to lower trims and lower prices.

The dealer who continues to message and call on that first VOI is watering the seeds of disappointment. Not a great base for a longterm relationship. If you don't have technology to tell you what the individual shopper is CURRENTLY viewing, I'd strongly suggest layering some check questions into your follow-up.

 

[Carsten]

My wise used car manager from 30 years ago used to say, "80% of people don't buy what they set out to buy." 30 years later, I'm no longer pounding pavement and can look at nationalized data to prove him right.

The answer to "why a person does something" is impossible. My theory is that people like to change things when owning something newer. Think about how many times you bought the same make/model two times in a row. Out fo the 40ish cars I've owned, I did it once.

Ah, put it that way. That's very true.
I keep going back to Jeeps GCs since they fill that soccer mom car need of mine