Having a clear view of all expiring leases in its market has helped Germain Toyota of Columbus, in Ohio, expand its business and cut marketing costs.
The dealership uses Propensity360, a tool from Pearl Technology Holdings and Experian that helps auto retailers target potential customers in their markets based on factors such as customers’ vehicle payments or the vehicles they drive.
“We [can] market to anyone in an expiring lease between a certain payment range,” said Germain Toyota General Manager Rich Newsome. That gives the dealership and Toyota exposure to customers who “hadn’t been considering Toyota, let alone Germain Toyota,” he said. “It’s gotten us in front of them before their servicing dealer or manufacturer had gotten in front of them.”
Typically, conquest campaigns are more expensive than equity mining because the dealership has to “get in front of customers a few times,” Newsome said. “But with the expiring lease campaign, customers are running out of time.” They often have only a few lease payments left, so they are more inclined to listen to their options, he said.
Late last year, Pearl expanded its relationship with Experian to offer dealerships information on consumers’ vehicle-buying habits. The information helps dealerships target consumers who have the highest propensity to buy or lease a vehicle within a certain time frame. For example, Germain Toyota markets to consumers with a propensity to buy or lease of 81 percent or higher, Newsome said.