Database marketing: a cost-effective way for automotive aftermarket companies to increase sales
Database marketing, direct marketing, or targeted marketing: similar methods for a cost-effective way to sell products and services in the automotive or powersports aftermarket industries, or in any enthusiast market segment. We specialize in database marketing because we can develop a marketing program based on your customers' data to target the message and decide who should receive it.
Direct marketing lets you scientifically target your best prospects, eliminating wasted efforts. You reach exactly who you want to reach: the prospects most likely to buy your products or services.
Direct marketing lets you to measure the results of your efforts, too. It's not unusual to have an R.O.I. of 10:1, 15:1 or even 20:1 from direct marketing and database marketing programs. That's $10, $15, or $20 in sales for every $1 spent on marketing. Your results will vary, of course, depending on what you're selling, your customer base, your price points, your customer service policies and your reputation. In 2009 the Direct Marketing Association reported, "...an investment of $1 in direct marketing advertising expenditures is predicted to return, on average, $11.65 in incremental revenue."
Why is direct marketing and database marketing so effective in the automotive aftermarket and powersports industry? Your marketing or sales message is sent with precision directly to someone most likely to buy your products or services. You don't waste money on what you've probably heard described as a "shotgun" approach where your message goes to a wide audience. And we understand the unique characteristics of customers and market segments found only in enthusiast markets.
Identify and market to your profitable multichannel customers
Multichannel customers, those who shop online as well as in a catalog, can be some of your most profitable customers. The Wall Street Journal reported (October 2009) on a study done by the US Postal Service, and wrote, "...consumers who received catalogs from a retailer spent 28% more on that retailer's Web site than those who didn't get a catalog. 'The more often you mail,' the study said, 'the more sales you could see.' " That's just more evidence of what we've known for years. We can identify your multichannel customers and design a direct marketing program to maximize your sales and profits from these customers.
In fact the Wall Street Journal also reported (January 2010) on small companies that eliminated direct mail to save money, only to see sales drop as a result. This article talks about how those companies went back to direct mail.
Online merchants: increase profits with database marketing
Many online retailers are great at finding first-time customers through search engine optimization (SEO) or search engine marketing (SEM) using paid keywords. Unfortunately many of these retailers are not as successful at encouraging repeat business. Database marketing can help online merchants dramatically improve their bottom line by encouraging customers to make repeat purchases, through targeted email promotions or even targeted postal mailings.
ROI on various forms of direct marketing, 2009
| Method of Direct Marketing | Revenue Produced |
|---|---|
| Commercial email | $43.62 for every $1 spent |
| Internet search advertising | $21.85 for every $1 spent |
| Non-catalog direct mail | $15.22 for every $1 spent |
| Overall average | $11.65 for every $1 spent |
Source: The Direct Marketing Association's The Power of Direct Marketing Report was prepared in August 2009 using the economic model of US direct marketing activity and is updated every year. Incorporating the most recent data available on developments in all sectors of the US economy, it aims to help marketers plan expenditures, sales, ROI, and employment. Disclaimer: Hedges & Company is not affiliated with the DMA's The Power of Direct Marketing Report, it is merely referred to here to show the ROI of various direct marketing efforts.
Case studies in database marketing and direct marketing
Working with a direct marketing client we did extensive analysis on customers over several years and in one year we reduced annual expenditures well into six figures with minimal impact to overall sales, adding significantly to the company's net profit... We created a database marketing program for a client and sent an email offer to 11,000 of the best prospects and generated over $6,500 in sales in 48 hours... We developed customer contact strategies by channel and saved over $150,000 with no adverse sales impact, sending all of that to the bottom line... We took over managing a paid keyword search campaign designed to send web traffic to a client's site and increased the click-through rates 500%... We created a new media plan for a client and saved more than $40,000 per year through improved targeting...We found tens of thousands of potential new customers for a client based on a customer profile that we created that tied into mailing lists available through numerous data companies.
Here are more examples of our client work.