Whitepapers

While ongoing inventory shortages and dwindling OEM incentives are pushing some short-sighted dealers to pump the brakes on their marketing efforts, other, proactive dealers are taking this opportunity to get a step ahead. By deploying a data-driven conquest strategy, dealers are empowered to maximize the efficiency and efficacy of their marketing efforts to capitalize on other dealer's potentially costly mistakes. To get started: 1. IDENTIFY YOUR BEST CONQUEST MARKETING OPPORTUNITIES As days' supply has diminished amid ongoing inventory shortages, brand loyalty has followed, challenging dealers to proactively defend their customer base from competitors. At the same time, diminished brand loyalty is offering dealers new opportunities to conquest customers who previously may not have considered their brand. But to identify and engage these net-new customers amid steep competition, dealers need to take a strategic approach. Start by asking: • Do you have a conquest strategy currently in place? • Are you happy with your current process? • How do you measure success? • How does it stack up against your competitors? Regardless of the specific challenges they face, it's critical for dealers to take a holistic approach to identifying prospective leads across their loyalty, service and conquest portfolios to maximize available opportunities. To help you assess the value of your efforts and prioritize your approach, look to comprehensive performance metrics such as: • What is your conquest marketing ROI goal? • What is your service conquest marketing ROI goal? • What are your YoY dealer and brand loyalty sales growth goals? 2. BUILD & MANAGE AN EFFECTIVE CONQUEST MARKETING STRATEGY While tactics may vary, successful conquest marketing ultimately comes down to targeting the right prospects with the right offer, in the right format, at the right time. To do this effectively dealers need to access relevant and timely insights from their local market to reliably identify conquest customers and accurately predict their next steps. From your tools to your team, look for opportunities to put data at the forefront of your entire conquest marketing process: 3 S T E P G U I D E to Dealership Conquest Marketing in 2022 Day's Supply FIG. 1 DAY'S SUPPLY VS. MAKE LOYALTY Industry COVID Impact (April 2020) Note: Household New to New Loyalty Methodology Source: IHS Markit (make Loyalty); Autodata (Days' Supply) Inventory Impact (February 2021) Correlation=0.83 Excluding COVID impact=0.88 Make Loyalty (right axis) J- 20 21 F M A M J J A S O N D J- F M A M J J A S O N D 120 140 100 80 60 40 20 0 58% 56% 54% 52% 50% 48% 46% 44%

• Cover