How a Car Dealer increased sales from 8 cars per month to over 100, and how you could massively boost sales too...
Picture this ... you own a business located about as far from a capital city as you can possibly get, in the vast country of Australia.
In Karratha, Western Australia to be precise.
Click here to see just how remote Karratha is.
To make matters worse, the population around you has been steadily declining for years. What do you do?
Pack up and move closer to where the action is? Scale down your operation and resign yourself to being a tiny rural outpost eeking out an existence?
Not if you're a Yorkshireman by the name of Paul Moxham, dealer principal of Moxham Motors in Karratha.
As Paul once put it, "We're so isolated here, our nearest McDonalds is in Indonesia!". (McDonalds must have been listening in ... they've now put a McDonalds in Karratha ... but it's still a great story.)
Instead of throwing in the towel, he's actually grown his business into one of the most successful and profitable operations in his industry. He has smashed some world sales records.
Paul Moxham's remarkable success is due to his application of a basic CRM system - a customer and prospect contact programme.
Yes, he uses a basic "off the shelf" software programme. But it's not the software that creates success ... vital as it is in ensuring things "happen" automatically ... rather, it's what you do with it.
And what transformed Paul's business into a money machine was his systemised "communications calendar".
A bit of background...
Some seven or eight years ago, Paul Moxham attended one of our marketing workshops sponsored by Mitsubishi.
Interestingly, we had over 70 dealers at these events, and they all received the same information. They all got the same case studies as Paul did. They all received the same "tools" to take away and apply. Yet, it was Paul (and a handful of other dealers) who took it seriously ... and put it into action. (The truth is ... a major part of "success" is just doing it.)
The "tools" we gave Paul and the other dealers at that workshop included:
- a "Communications Calendar" ... a flowchart of customer "touch points"
- template letters for each relevant "touch point" in the Calendar
- phone scripts for his people to use to create true customer focus
- the wording for thank you cards and ideas for acknowledging and thanking his customers
- scripts for approaching other businesses with ideas for joint promotion
- a system for creating a culture for referrals.
This communications calendar literally flowcharted every communication opportunity for an automotive dealership ...
- from the wording of the note thanking the prospect for dropping in today
- to the script for the follow up phone call,
- the welcome letter from the dealer principal,
- a letter gifting the new car buyer and partner to a night out, "compliments of Moxham Motors" (in an alliance arrangement with a really nice local restaurant),
- the letter from the sales person introducing the service manager at service time,
- right through to the second and third "birthdays" for the vehicle, each with their little gifts and surprises.
There was no "rocket science" in any of this. It simply tapped into each "moment of truth" in the client's ongoing relationship with the dealer.
Rocket science it wasn't ... but it was the catalyst for one of the most spectacular business turnarounds.
This system "switched the lights on" for Paul, and he became an overnight zealot for client nurturing strategies and automated communication systems.
Returning to Karratha with his "toolkit", he immediately employed a client liaison person to work his (previously dormant) contact management programme.
Even though, at the time, he couldn't really afford to hire this person, he realised he couldn't afford not to!
This lady's sole focus was to implement the "communications calendar system", setting up tracking and measuring processes, and ensuring that customers were automatically "wowed" at every point in their relationship with the dealership.
Of course, Paul didn't stop at the system I'd given him at the workshop.
He started inventing his own additional communication pieces, adding in birthday cards for his customers, finding more and more ways to say "thank you", finding more benefits for his loyal customers ...
Today, his business is a showpiece for his industry.
Car dealers and people from other industries too, come to him with their cheque books open, saying they'll pay whatever it takes to get his system in their business.
What few of them realise is that it's simply a case of identifying the "touch points", and ensuring that the systems make it happen.
Just how successful this Customer Relationship Management process has been can be gleaned from some of Paul's own statistics:
- Moxham Motors never discounts. They don't have to.
- In an industry where the Repeat and Referral rate is around 26%, Moxham Motors is tracking at 78%!
- Horwarth research reveals that motor dealerships earn an average 0.8% to 0.9% net on turnover. Moxhams is earning a net 6%+ on the bottom line! Considering they do around $2 million a month, you can do the numbers on profits from his systems.
- Paul's sales have grown from 8 cars a month at the time of the original workshop, to close to 100. He has bowed to popular demand from customers who won't go anywhere else ... and created two more dealerships, in Port Headland and Broome.
Perhaps the nicest postscript to this story, though I sense it's far from over as far as Paul is concerned, is an email I received from him recently ... with photos of his shiny new C33 Beechcraft.
He has finally indulged in his lifelong passion to own an aeroplane ... and now his business has enabled him to buy it.
Makes you think, doesn't it? It's pretty interesting what a business, even out in the back of nowhere, can do with a few templates and a "communications calendar".
Could this help you in your business?
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