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Case Study: How an Automotive Dealership Used Voice Marketing to Supplement Sales, Boost Customer Retention

by Kimberly Smith  |  
January 20, 2009
  |  597 views

Company: Mike Miller Hyundai
Contact: Russell Herman, Service Manager
Location: Peoria, IL
Industry: Automotive, B2C
Annual revenue: Confidential
Number of employees: 50

Quick Read

While automotive dealerships across the country struggle to remain in business, to get through the current economic downturn Mike Miller Hyundai has focused on customers who have already bought cars from the dealership.

Using Vontoo technology, the dealership routinely sends out voice messages that remind customers of overdue services such as oil changes and maintenance checks, at a fraction of the cost of direct mail.

As a result, its service bays have been filled 20% above capacity on average, and customer retention is up to around 52%, 13 percentage points higher than the national average for Hyundai dealerships.


Challenge

Located in Peoria, IL, Mike Miller Hyundai is a small automotive dealership that, especially in this economy, relies as much on customers in need of tune-ups, oil changes, and other automotive services as it does on new car sales.

In 2007, the dealership's service manager, Russell Herman, noticed that although he was spending some $2,000 per month on direct mail campaigns, his service bays were seeing fewer and fewer customers, making direct mail an expensive endeavor.


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Kimberly Smith is a staff writer for MarketingProfs. Reach her via kims@marketingprofs.com.

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