Do you want to write more service business?
Are you running at maximum capacity and want to increase the value of your average RO?
Maybe you have bunches of unapplied time and need to drive service?
Perhaps you're a brand-new point with no database and need to scale quickly?
If so, this is the episode for you!
Inspired by my man Erick Kirks of the Johnson Automotive Group and his unique challenge, this episode is for every dealer who wants to be more sustainably profitable.
Special thanks to my friends at Geopath and President, Kym Frank for letting us share Geopath!
Connect with me on LinkedIn at: https://www.linkedin.com/in/troweactual/
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Join OOH Insider and Placer.ai at The Premier Leadership Conference for those Building the Future with Location Analytics, December 10th, 2024 at Pier Sixty. Use discount code OOHInsider70 to save 70% at registration. Learn more here.
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So I got my ass kicked by the mute button earlier. I recorded 35 minutes of pure and then I went to play it back and realized I couldn't hear myself, which some people might prefer. This is the out-of-home insider show or bringing you tips, tricks and insider insights. My name's Tim Rowe. This episode is all about automotive fixed apps.
I know it's very exciting billboard. And fixed operations. I didn't know just how powerful out of home could be until, until our partners at geo path showed us a new way. I'm going to lead off with some statistics and facts, some insider insights, right from our friends at Cox automotive. This is the 2018 fixed operation study.
Did you know, did you know that if you can get a customer into your service drive in the first 12 months of ownership that you have twice, twice as likely an opportunity to sell them their next car, if you don't get them in your service drive in the first 12. That drops from a 75% likelihood that they'll buy their next car from you tip 35%.
So you're twice as likely if you can get them in, in the first 12 months of ownership to sell them their next car, we've all said it for long enough sales sells. The first one service sells the next three. That is the truth. Did you know that 31% of all services across the country, every single aro, 31% of them have something to do with tires.
We're going to talk about that. We are going to talk about how you can very efficient. Very efficiently at scale, move a market in fixed operations in 2019, 2020. How you can predictably and sustainably. Keep your service drive full of high paying Aros. 31% include tires. I'm going to flip through some sheets here so we can set the, uh, 20% of consumers.
Said that they didn't want to go to a dealership because they were afraid that the dealership was going to try to sell them something extra. And that comes to our very first tip of the day. 20% of customers said that, uh, that they didn't want to come to a dealership because they were afraid of getting sold.
So there's a campaign just there in itself. We're not going to try to sell you anything extra. And then from a service writer, scripting standpoint, Hey Mr. Customer, just like our advertising says, we're not going to try to sell you anything you don't need. The technician does have a few recommendations.
These are the safety concerns. These are the recommended maintenance concerns. And these are your scheduled maintenance concerns. Would you like to take advantage of any of them today? Top four concerns of consumers, of why they don't serve as at the dealership 3,000. So that it took longer than expected.
Now that's something I can't help you with with a billboard. But what I can do is I can talk to you about the power of digital out of home. Digital billboards, digital billboards are a really unique way for a dealership to serve several messages to a target audience and then measure their efficacy. So let's use this 30% said that it took longer than they expected.
Perhaps you have some days that are a little bit slower than others. We all do, right. And you've got some, uh, uh, you've got some open bays. You've got some technicians just in around. Why not use a digital billboard campaign? Just like a hospital would for the ER, wait times. I don't know if you've ever seen those around.
We've got a few in our market here where the hospitals use digital out-of-home, uh, to, to broadcast. Hey, it's only seven minute. Wait time in the ER. So in case you're planning a trip to the ER, it's only seven minutes, way more functions. For somebody driving their car, who drives all the time and they see a big, big billboard for your conveniently located dealers.
That says, Hey, only a 15 minute. Wait for an oil change. You go, oh shoot. I got 15 minutes. I got, I got a half hour before I have to pick up the kids from soccer. Uh, let me pop in there real quick. Great way to use digital out of home is to broadcast to your neighborhood, to your network, to, to your backyard.
Hey, we've only got a 15 minute wait time and you're only five minutes down the road you can be in and out. In the next 30. So that's one way to take advantage of the 30% of people who think service took longer, tell them how long it's going to be. If it's going to be longer than that, then don't tell them, right.
So we're removing that objection. 20% tried to push additional services. We talked about that. Hey, we don't try to sell you anything you don't need. You can broadcast that message. Across a network of billboards, 53% of service visits at the dealership included multiple service, 53%. So that means that over half of the arrows you write are for more than just an oil change.
That's where we talked about the 31% of services, including. Tires and some sort of capacity we're driving more than we ever have before. We're keeping our cars for a longer time. Right? 2016, we saw the best year of the car business has ever known 17, 18 also good years. But guess what? Now everyone's got a car and a they're overextended and they're keeping.
Longer than ever. So service is more important than ever. That's your opportunity to win right now and going forward. But if we know that 31% of every services, so three out of 10 customers that walk through your service drive are going to need something with their tires. Uh, what could that be? What could that be?
Could be a tire rotation, could be new tires. Could it be in alignment. If we know that they're already coming for some sort of tire related service, could we include that in our oil change, our 5k pricing, um, some sort of tire up sell. If you're not already, it's a great opportunity, but specifically on the tire side, I'll show you here in a little bit, how we can do.
Tires. I don't know. I don't know, personally of any dealership take advantage of all of the co-op money from the tire manufacturers. We oftentimes talk about the auto manufacturers co-op programs, but there are tons of co-op programs, boot the tire company. And specifically for out of home, you want a quick, fast way to fill your service drive full of services, uh, full of other makes and models that aren't necessarily yours take advantage of all that co-op advertising.
I'm going to include a link down below. So as long as I can share with you, it's it is part of it, a log in software, uh, that the programs are for the different tire manufacturers, but that's a great opportunity. That's definitely take advantage of 72% of dealers say that the percentage of warranty. Has gone up over the last five years.
So imagine this imagine, imagine a new recall comes out and it's for a 2012 Honda accord. Do you know what? This is a great opportunity to transition into my man, Eric Kerr circumstance here. So let's rewind a little bit. Eric Kurtz is the marketing director and automotive group. Somebody that probably know a whole bunch of, if you remember this great Badger commercial.
Um, from years ago, that's Johnson automotive group. We don't Badger yet funny that, that comes back to that. We don't try to sell you stuff. You don't need Johnson automotive group. They've just acquired a new point. Now. I'm not sure that it is this point. So Eric, you're going to have to jump in and correct me if it's not regardless of the circumstance and the, the scenario still plays that they acquired a hundred.
In a market that didn't previously have a Honda voice, so, okay. I've got a brand new franchise in this market and I need to get it scaled up quickly. So I know that service is most important to me in the best opportunity to have as a Honda store are people who already drive Hondas. So imagine, excuse me, imagine using a digital network to draw awareness for a recall, 2010 to 2012 Honda accord owners.
There's a recall for your vehicle in Stewart for. Boom. Guess what everybody driving in 2010 to 2012 Honda Accords gotta do. Holy crap. I a recall for my car shots and Honda, well, I should probably be call them and find out if my car was affected. You can do that without a home, but don't just do it. Don't just do it to do it with our partners at geo path, you can get very specific.
Now in most markets, I'm not going to be able to help you out because I don't, uh, I don't necessarily, um, sell in every market that you're in. Uh, in Eric's case, down in Stuart, Florida, I definitely can't help you. I can't help you. I can't sell it to you, but I show you, uh, I would recommend it. And I'm going to share my screen here.
Actually, I used to see my. Let's see what change this. If you're listening to this on the podcast, definitely go ahead and check the show notes so you can check this out on YouTube. Cause this is really, really important. So it starts off with this. Alright. Eric is a Honda store, so he wants to target Honda owners.
So I would just tell you this. And this is just like every bit of online targeting for any digital campaign done before may make of any vehicle, owner, least a Honda, because what I'm, what I'm ultimately doing. As I'm leveraging mobile device ID data, and I'm comparing these device ID data points to outdoor locations.
Let's, let's rewind and unpack that we drive around with these things in our pockets and our cars and our briefcase or backpack through with us everywhere that we can. What that means is that all of that information, it's not personally identifiable information, but it's behavioral and it indicates what I'm doing, what I'm interested in.
There's six different data sources that combine to aggregate our targeting inside of this platform called geo path. And what we're able to do is I'm able to say, Hey, geo path, show me the billboard locations that reached the most Hondo. Or Subaru or Ford or Toyota or Chevy find me those billboards.
Those are the ones that I want to see. So that's what we're doing here on the screen right now is I'm telling the system, Hey, show me the ones that give me the best shot to reach Honda owners. And then we assign our market in this case. Um, It's going to be, there we go. West Palm beach CVSA, and then I can start to filter the inventory down.
This is just like any online digital campaign that you've ever run before. A location will confirm that that's correct. The operators. These are the outdoor companies in that market. So if you were looking to put together a campaign that. These are the companies that you would talk to about doing that out front has the most inventory available.
You see that 25, 17 and nine respectively that index against our audience, our threshold, I moved this up to a hundred and all that means is that a hundred is par for all my golfers out there. A hundred is par anything above that means that it matches especially well. So in this case, we want to shoot above par.
So that's what I'm doing here. A hundred is part. And then when I look at the layering and the options, I'm just going to make sure that I got my man's address in here and I do. And then we click apply. Tell me, this is not like any digital campaign you've ever run before digital online campaign you've ever run before.
Now it's running a little bit slow. Cause I'm in my base. I need to get a wifi extender. Yankee, can we get a leafy center? Yankees, my blind border Collie sitting over here. Like what the heck you talking about that? So we're able to do that now. You see down here, that's his point right there, that little pin drop, and then that little loop around there.
Those are. And this will populate here. You'll see a lot, a bunch of little dots. So all these little dots as we zoom in closer and closer, you see there's more and more. We, these are actual billboard locations and then their proximity to the dealership. So if you said to me, Hey Tim, I'm looking to run a really.
Blended campaign. I want to reach a whole bunch of people. I want to create a splash in the, in the marketplace, but then I want to drive that home. It could look something like this, where you look for total impression opportunities across the main, uh, the main thoroughfare in this case, it's 95. And then you look at the little artery.
Offshoot and you build a really nice complimentary program where the main, the main 95 campaign is the Hey big, big, big, the goal of this campaign is to create a ton of awareness. And then the goal of these little arteries and secondary roadways is to drive that message home. The cool part is you can run the same message.
Digital, it's a digital outdoor, digital billboard location. You could run multiple messages within one campaign. So let's say you have 5,000 bucks, you could run five or six different messages and designs, and you could select which units they go on. You could run them all on all the units, so you can get really specific.
And from a mass media standpoint, there is no more effective. Medium than outdoor. And let me show you what I mean by that. I'm going to, oh, Hey look, I already got it open. This is a 2017 study from Nielsen and we all know Nielsen as that as the, as the rating and governing body of things like TV and radio, uh, in 2017, Nielsen did a study to see.
What mediums drive the most search activity in this case? Outdoor out-of-home as the red right here, drove more search activity. Hang on for this outdoor drove more search activity than TV, radio, and newspaper combined, combined. Looking at this 1 59 post 1 0 9. That's 1 68, 1 68, 2 68 and 54 to 68. That's still less than 3 81.
If you want to drive more social engagement like Facebook, Twitter, Instagram out-of-home is still the best. In fact, Facebook just did a recent study that a and this was a Facebook studies. Facebook sends out a ton of money on out of home, um, that Facebook campaigns work better. If you combine it with billboards, that's Facebook saying is so Facebook who doesn't sell any billable.
It says, Hey, billboards are really effective. You know what? Don't take my word for it. Here's Google. Google is the top five spinner. They are number five spender in out-of-home Google. The same one who puts out the automotive playbook every year. Have they ever suggested that you run out at home? No, they haven't because Google doesn't make money running out of home advertising, but you should be because it drives more serious.
So if you're spending money on SCM, if you're spending money on SEO, you need to create search activity to make those things work the best that they can. The more people that are looking for you that are looking specifically for your product, for your service, the more you are going to get out of your digital spend that what search can't do.
Search can't create more searchers. Right? Search is an internet based platform. I've gone to Google and I'm looking for a Honda, a Honda oil change and Tyra. Google can't make more people look for Honda oil changes and tire rotations. So that's why Google thinks it's so important to continue to fill the top of the funnel.
And you can see now that with the power of a partner like geo path, that anywhere in the country, you can see which outdoor locations are the best for your campaign. Now, if this is interesting to you, all you to do send me a message again, in most markets, I'm not going to be able to help you to actually place the bike.
I can coach you through it. I can give you. Which units of what to run on it. And certainly give you a little bit of a consultation if you will. But in most cases, I'm not going to be able to help you. So you need to understand that my motivation for this is to help dealers to sell more stuff and spend less money.
This, the fact that. The digital online ad spends continue to swell every year. It's a condition of this supply demand. The supply for car buyers continues to go down. The demand from dealers continues to stay constant. I E go up because when in a down market, even if you stayed flat, that's equivalent to being up in terms of demand.
The pie continues to get smaller and dealers are still competing for that, that, uh, that piece of the pie. Then you are ultimately spending more money than you have to, to sell the same number of cars. Now that's a little bit frustrating. I'm personally frustrated for you. That's why I'm bringing this to your attention.
If you want to drive more search activity, if you want to drive more social activity, if you want to do those things, an outdoor campaign will be the most effective. Well, Hey. I get it, the efficacy. It makes sense. I understand it's gonna drive a ton of search activity. What types of things should I be doing on those outdoor locations?
What types of things are effective on building? But ultimately, how am I going to measure success? Well, I would tell you measure success on the bottom line. So I'll show you here in a second. Um, what, how I build a campaign for an automotive dealer and what I'll do is I'm just going to go back to a screen share here.
I'm going to slide this little guy up right here. So it starts by doing a foot traffic analysis to your dealership. And in this particular case is a dealership who has a pretty tight footprint. Um, and you can see the dark red here in that little pickup. That little pin drop is their dealership. The dark red is where the highest density of their customers come from.
So you see, in this case, it's really within 10 miles, but I have dealerships that pull 80% of their customers from 50 miles, 50 mile radius. How can you effectively cover 50 miles? You can't, but what you can do with this technology is you can determine, all right, here's my location. I know that the majority of the people that come to my location live here and they work here to try and keep this on the screen.
So imagine my face is the dealership they live here. They work here. My face is the dealership. If I know that they live here and I know that they work here and I know that my dealership is here. And then I know that these are the locations that best match Honda owners. I can select the ones that interrupt them on their way.
And on their way to work that are in the middle of me and me and where are my customers live, work and play. So you don't need to buy everything at 50 miles. You just need to buy a few strategically located locations and have a great message on them. That actually matters to people. The recall message I think is pretty fun on digital.
The wait time, I think is pretty fun on digital because it gives you the ability to on the fly. Just be able to put things. Hey, I need Tuesdays are slow for me. Every single Tuesday is slow except for this one. So traditionally on Tuesdays, I run this ad, but this Tuesday I'm really busy. Turn that up. You can do things like that, or if you're slow and you need a spike, maybe you're going into a weekend.
Maybe you just started offering Sunday service hours. So you only want to run that campaign on Sunday when people are out and about. So you can remind them that, Hey, you're out and about today, you could be getting your car. And we know how important that is. You, Hey, check it out. Our wait time is only 15 minutes and oh, by the way, we know that 30% of our customers are gonna need something to do with tires.
So check out this great special that includes an oil change tire rotation, 162 point inspection. You can do all of those things on digital, out of home without waste. Because again, we're strategically choosing your locations based on where customers live, work, and play. And which units actually index against the audience that you're trying to target.
Um, let's see price comparison. That's a great opportunity. I see a lot of dealers do that. They put price comparisons on there, on their website. Hey, we're just as competitively priced as Jiffy lube, mitis, and STS. Check us out. We can do that on digital, out of. Everybody know, because we know that 80% of the traffic that gets to your website is there because of service 20% for sales.
So the only way to tell people that, Hey, we're competitively priced. To your website? Well, how'd they get to your website at that point, they've probably already chosen to do business with you or at least considering. But what about all the people that aren't even considering you, they're not even giving you a shot?
What about them? Uh, from 2015 to 2008, importance of coupons and loyalty programs went up 20%, went up from 23 to 28 points by points about 20%. Uh, A lot of manufacturers are offering those, uh, loyalty. This is where the manufacturer can step up, help support their dealer body inside of a footprint. And that, that, that, uh, that manufacturer could, could come and say, Hey, Look at all of the units that index highest against my brand.
And then I want to run programs about how I have this great loyalty, uh, and coupon incentive program for service to help my dealers recapture, lost market share so that they can improve their retention so that they can improve their absorption rates. So if you're listening to this and your tier one, tier two agents, I can influence that this is such an incredible opportunity to support your dealerships.
I don't know that there's been a bigger one, especially in markets that are hard to buy from a media standpoint. Um, so, uh, I'm personally, I'm in a market that's sort of overlapped by three major DMEs or at least two major DMS and then maybe like a secondary DMA overlap. So it's very clunky. It's hard to buy from a TV radio standpoint.
You'd have to buy all three. There's three manufacturers that are buying three broadcasts to overlap a market. That's so totally in efficient for the dealers in that market. But I digress point of this being. Point of this being that I just lost, what the point of this was so inefficient, this is way more efficient, a cost standpoint.
So when we look at buying a market and we know that it's hard to buy with TV and radio, then the digital marker goes, well, I can do this digitally. With things like connected TV with all my display with pre-roll, I can do those things, but from a costume, how are you paying $10 cost per thousand for a, for a little ad that's you know, this big arc on ESPN.
When for that same dollar, $10 cost per thousand. I can put you up 14 by 48, instantly legitimize who you are as an advertiser, who you are as a dealership. I can broadcast multiple messages to a mass audience. Just that quick. Can you just press. And have that. Uh, but uh, in fact, we had a campaign yesterday.
Uh, we got the check at about four 30 and they were alive. Their campaign was up by 5, 10, 40 minutes. From the time we got the check to the time that the creative went live in. And I don't know where else you can do that. There's no production cost all. It's just the same as designing, uh, any hero or rotator banner that you've got on your website, but just changing the format a little bit.
So if you've got an agency in house, uh, or if you're already working with an agency, execution is quite easy to do from a digital standpoint. When we talk about warranty, warranty gets really interesting. So six and 10 customers with a current warranty, why they go to the dealership? Number one, they know my vehicle.
Number two. Uh, you have a knowledgeable and courteous staff. Number three trust when the warranty expires, that changes the number one reason why they don't go cost. The number two reason distance, the number three reason, fear of overcharging me. So if we know that customers with a warranty like that, you know their vehicle, if they know that, yes, Have a knowledgeable and courteous staff and they trust you.
What changes once the warranty expires is the warranty. The only thing, the only thing, keeping them in your dealer. If so got a couple ideas idea. Number one, they know my vehicle. You could use digital out of home to run a customer appreciation campaign. Jane 33 supermom three kids drives a sweet Toyota supra and here's Jane with her Toyota supra, a 232,000 miles on her.
You know, Toyota Highlander, she's owned it since 2001 and people go, oh my gosh, it's a real customer. Like I know that lady I've seen her at the school. I'd pick up line. Holy crap. Imagine if you've got six or seven of those and ran those around the, around the market. People care about you knowing their vehicle more than that.
They really care about you knowing them and that matters. And if you remind them that, Hey, we see. Hey, I know your name and I know your kid's name, and I know how important this vehicle is to you. You will move the market. If you just talk about, Hey, I've got a lease special for 2 99, it'll drive search activity, and you'll definitely pick up deals from it, but it will not move the market the way that it could move the market.
So knowing their vehicle, use digital to talk about your customers, how well, you know, their, their vehicles knowledgeable and courteous staff, do the inspections. Hey, this is Tom. He's been here for 25 years. Tom is a master certified technician and here's Tom boom. There it is. Hey, holy crap. That's the guy that works on my car.
That's a real person. That's not a stock image. This stuff matters. It's not me saying it. It's your customer saying it. Why they don't come back after the warranty expires? Distance fear. You're overcharging. Now I'll fight you a little bit on the, on the distance, because later on in this, uh, it's actually the next page, 36% of customers say that they, uh, that the location not being convenient was the reason that they didn't come, but 77% said they think that the dealership's going to overcharge them.
So what I can tell you is that the cost and the fear of being overcharged, or really the number one concern, once a vehicle comes out of warranty. So what could you be. You could be talking about, Hey, this is a true cost. The price you see is the price you pay. Uh, you could be talking about, um, the pricing of being available online.
Perhaps you partner with a great company like fixed ops digital, because what fixed ops digital does. And this is where I see them. They're just helping. Across the country. I think that they got like 200, 300 dealerships across the country. The reason why so many people go to Jiffy, lube, mitis, et cetera, or those things.
Hang on. I'm just going to play this over, hold it up here. Thank you. See it. Why they know total costs, distance, fear of overcharging. What are Jiffy, lube and mitis. I know what the cost is going to be. I know where they're located and I'm not afraid of being overcharged because I already saw the price on it.
So, you know how you combat that, you put your prices out there and you tell them where you are. It's that easy? Hey, we are right here. Our wait time is 15 minutes. The price you see is the price you pay. Here's some customers that you probably recognize, or at least you're going to, you're going to know that we're legitimate people and oh, by the way, here's our great service technicians.
There's a story that you can tell without a home that you can't tell with pre-roll ads with, uh, with display ads. These are things that you cannot tell at scale. That quick, fast in a hurry and still drive all that search activity and the online social activation. When we think about something like connected TV.
Now I know a lot of dealers are buying connected TV, like a blended rate, uh, the blending and pre-roll and display, which is fine. That's totally cool. If you were buying connected TV as a true standalone unit and you were buying full episode playback. Specifically, you're going to be spending between 40 and $50 for connected TV.
And even if you're buying a blended rate, that's what you're paying for connected TV. The reason the rate is so low, hang on, we're just getting the dog toy here. Uh, the reason that the rate is so low is because you're not really getting much connected TV. They're just, they're watering it down with display and giving you some pre-roll in that what you're buying is ultimately just a, uh, just a, a watered down version of what you, what you really want to buy.
So regarding. Let's say it is that blended CPM of 20, $25. Um, I can be on out of home with online included, so that online component would be continuing to serve ads to everyone who saw your billboards for $10 cost per thousand. So why dealer B down the street is spending 20, 30, 40, $50 cost per thousand.
I'm spending 10 at scale. I drive more search than you I'd drive more social than. I have multiple messages. I'm more than legitimate in the market because I'm on this huge billboard and you're not guess what I'm going to win. I'm not only going to win because my campaign is going to be more effective, but because I can outspend you, I can have spend you see, even if you're paying 20, $25 CPM for, for all of your media, I can spend twice as much.
I can buy twice as much of the footprint. I can buy additional units. I can buy additional inventory. I can Outback. I can out by you and I'm interrupting people where you're not, I'm interrupting people when they're driving their car. The thing that I'm trying to help them service or, or to sell to me, or they want to buy one of mine while they're actually doing the thing that I want them to do, I can talk to them for less.
So that's a little bit about warranty, a little bit about costs. Uh, let's see, costs continues to be seven miles, seven miles. Let's talk about this one seven miles is about the average that people are willing to commute for service. So what's that tell you? Uh, it doesn't mean that they have to live within seven miles.
It just means that's how far they're willing to commute. For service. So what does that mean? Does that mean that I have to be seven miles away? Um, and maybe that's where I'm serving my service message. So if you were, let's say you bought into a digital billboard network and you want to talk about your wait time and you knew that the maximum distance people would be willing to travel at seven miles.
Then I would say, don't be running your service message about your wait time outside of seven. Because if you're trying to get that person right now and influence them, your best opportunity is going to be with where the people are most likely to actually come visit you. But it's not to say that you don't have a program again, that's interrupting them on their way from work to home.
And your dealerships right here in the middle. I wish I had three hands. That's why the head thing I think worked. So another, a couple of ideas. Uh, let's see. Some other things that I wrote down. They know my vehicle. He is now it's about the different to spot the difference. Spot the difference. Have you guys ever played that?
At the bar where you, uh, you put in the dollar and then you got to find the items that aren't on the other screen. You could do that too, because people care about you having knowledgeable staff and certified technicians. So you could do a fun spot. The difference campaign, like, uh, Hey, eh, one car is not like the other, and one car is missing a tire and wheel will be.
Fell off. Cause you went to the other guys, come here. We have people. There's the difference. You could have a lot of fun with a spot, a difference campaign, and it doesn't all have to be digital billboards. They're static billboards as well. There's things called posters, which are like a, like a smaller, like a half size, uh, billboard, all opportunities to talk about your service message.
Now again, if you're being targeted, if you're, I'm gonna share my screen again here and jump back into geo path. Let's say you wanted to target those Honda owners. Right? We looked at that briefly. We looked at Honda owners. Um, maybe you wanted to see who has gotten cash pay, work done on their car. Uh, in the last 12 months.
Here you go here. Hey, how much did those people. So you can start. Maybe you buy a couple of billboards, targeting people that have spent over $6,000 on their car. Well, what's that tell you about that person that they're spending money to keep their car so you could either incentivize them. Hey, if you've spent over $5,000 fixing your car this year, we'll give you that much as a credit towards a new one.
Maybe you've got a great car with a big rebate. That's a message that now you can make very relevant to the people that you want to talk to. Maybe you want to talk to people. Um, Only have paid cash paid labor. See this PD right here, paid labor one to six services in the, in the last year. So last 12 months right there.
Um, you could talk to people that are cash pay, so you could pull a list of Honda locations, a list of cash pay location. Marry the two together and find out what are my best Honda cash pay locations. You can do that without a home. You didn't know that you could do that before digits. Maybe you're getting your butt kicked on tires.
I love this opportunity because 25% so we can get in there 25%. What I'll do is I'll link this out to 25%. Uh, service customers go to a general repair or service station. Only 12% go to a quick lube, 12% go to a tire store or repair chain and 7% go to, uh, some, some type of other locations. So if 25% go into general repair.
And service stations. What you can do is you can lay in what those, what those locations are in relation to your actual dealership. And if you're trying to influence those people, maybe it's a, maybe it's a digital billboard right next to a general repair shop that compares your price. And how they relate to general repair shops and customer goes jive, pastors.
And he goes, oh man. Yeah, they're actually priced relatively reasonable. And I can get a factory trained technician working on my car for the same price. This is a great opportunity. So it's not about attacking the other dealerships in your market. It's about talking and talking to the 2,500. They're going somewhere else that you could influence by just making sense of them, for the things that they care about the most now most dealerships have between about 15 and 10% additional service capacity.
So if you're a dealership that does have that additional capacity, you could go. With some of your loss leader services to try and soak up some of that unapplied time. Um, but maybe, maybe you're okay with that. Maybe you're okay with that. And you're just trying to increase your ROI. So what you're trying to do on your out of home is to talk about winterization, get some ready trip, ready, bigger services, 1545 to 60,000 mile interval services.
So often dealerships fall into the, uh, into the trucks. Hey, I'm just going to talk about my oil change specials because what's easy. That's, what's going to be convenient. That's where a company that fixed ops digital will help you to do a better job with that. Putting all your prices online, they build out what are these, what are calls for this many pages lists all of your service.
So instead of you having like three specialists, Hey, I spend over a hundred dollars. Get 10% off. Here's a 29 95 oil change. A 1% off breaks. Doesn't have a consumer, how much it's actually going to cost. What fixed ops digital does is they put all the information out there because their thesis and I've seen it proved true multiple times before their thesis is this customers who are looking for the service are looking for what we've seen inside of this study.
I'm pointing, pointing to all the pages I throw over there on the floor, but they're looking for value. The looking for efficiency, they're looking for knowledgeable and courteous staff. They don't want to feel like they're getting sold to so the quickest way to overcome that just published the prices for stuff.
If you just tell people, Hey, a transmission flush flush is 1 19 99, and here's the reasons why did. That's what fixed ops digital does. They build out that entire service menu page 15 to 20 services and they don't just put it up there. They optimize all of it for search engine optimization so that now people are seeing your billboards.
They're seeing all this recall stuff. They're seeing your tire message. They're seeing all of your services. And then they go to your website and guess what? It's a cohesive experience. And they go, oh my gosh, that's the same special that I saw on that thing. It's the same price. Guess what happens when you consistency and message people believe if you're more credible.
If I continue to tell you the same thing, whether it's true or not, you're ultimately going to start to believe it because you're like this guy believes it. He's sketchy saying it. So convincing. That's why it's so important that each piece of this is connected. Uh, the campaign that I was telling you about, we got up live in about 30 minutes yesterday.
Um, it sort of, one of the reasons it wasn't up sooner was it wasn't clear how to get to the place they were trying to drive foot traffic through location, uh, distilled. But online, as soon as you Google and search that name, it was very hard to understand where am I supposed to go? So looking at this campaign, you got to look at it holistically.
Don't just throw up billboards and be like, oh, it worked or didn't work. If you're not looking at this as a completely integrated campaign, I would encourage you to not spend a single dime until you're ready to do exactly that. Uh, those are, those are some, just some ideas on how to use service. We looked at some of the different targeting.
Um, if you have third-party vendors that are on, if you have, you're looking for that customer pay, if you're looking for warranty work and you want to talk about that, it's a cool one. Um, we've all stint at some point when we're going to buy beer, uh, if you were born on this date, uh, must be born on this date to buy beer or like, or whatever the heck you buy.
You could do the exact same thing with, Hey, your warranty's about to expire. So we're about to be in 2020. So that means that every 2015. Is going to not every, but most, 2000 teens are going to have their warranty expiring sometime over the next 12 months. Could you use it a digital out of home campaign to do that?
Yeah, you sure could. Hey, if you own a 2015 Hyundai, your warranty will expire soon. Come in. For a pre warranty, expiration service, or visit us online to learn more, uh, there's ways that you can create and own that top of mind awareness, not just when people are ready to come to you for service. If you're talking to them throughout the ownership, you're going to get them in more frequently.
They're going to buy more things from you. You're going to leverage that tire manufacturers co-op money to run tire campaigns. Three out of 10 customers that walked through your service drive are going to need something to do with tires. And you want to be who they think of when it's time to ultimately replace them.
The opportunity with out of home has never been greater with the use of ad blockers of around 50% with millennials and younger, your online ads are not going to connect with them. I had the opportunity to guest lecture and advertising class the other day, a digital advertising. 20 to 21 year old students.
I said, how many of you guys are using ad blockers? Half the hands in the room went up. I said, did you see how ironic that is? You're all studying advertising. And half of you are using ad blockers. And then they went on to say, um, you know, Hey, well, I'm looking for things that are relevant. So I posed the question to them.
I said, well, let me ask you about. Have you ever noticed same billboards and one girl popped up. She goes, oh yeah, the vape store down the street. I know that they have billboards right here and right here, because I go to their store. Another guy pops in. Oh yeah. I saw my favorite restaurant up over here on this billboard.
People pay attention when it's relevant to them. So how do you make sure it's relevant to them? It's by using a tool like geo path it's by reaching out to somebody like myself, somebody who's going to consult and guide you on how to put together a proper out of home care. There's too many people out there who just sell billboards.
And there's a difference you can put together a very structured, very strategic campaign for not a lot of money that will move the market because again, for cost per thousand standpoint, which I'm not trying to sound, uh, you know, uh, too rudimentary here, like in novice, but when you're measuring, how many people can I reach?
How many impressions can I make to drive an action to influence a behavior? Because that's what this is. Spending money on Google SCM. It's not advertising. You are just, there's already searched being created. And you're just like, Hey, Hey. It's like, it's like going to the bar and like, Hey, that girl is trying to find a guy to take home.
And we're all just like throwing our hand up. Like, Hey, I'm a great guy. I'm a great guy. And I like, I like soccer and playing Bacci and my family has barbecues. It's ridiculous. It just doesn't make sense. But if you influence that decision before it's. You're going to win and you're going to win more often.
You're going to do it in a way that helps you make more money. You keep about 45, 50 cents of every dollar you make in service. I want to help you increase your absorption rate by 10 20, 30 percentage points over the next 12 months out of home, combined with a partner like fixed ops digital. We'll do that in every single scenario.
Now let's say you're in a market that doesn't have billboards. What are you going to do? Well, we're going to talk about that more in a future episode, but I'm going to encourage you to wrap all of your service cars, all of your parts delivery vehicles, every vehicle that has a dealer tag on it or something, or any vehicle that that is ed, is yours.
All of your general manager demos should at least have like, like a magnetic vinyl type thing on it. Turn all of those assets into things that work for you, pieces of your ad campaign. There's going to be a way to integrate them all with your online ad campaign as well. So if you're looking to sell more stuff, spend less money out of home is going to be the key to doing that in 2020.