New Honda Dealer Leap-Frogs Over 1,030 Dealers

  

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Dealer Magazine
November 2010

How they reached #9 in the Country in Only 12 Months

Founded just over a year ago by automotive executive Mike Saporito and 5-time Pro-Bowl linebacker Jessie Armstead, Hamilton Honda is one of the fastest growing Honda dealerships on the East Coast. Hamilton jumped into the top 10 of Honda retailers in the nation in only 12 months.

Saporito and Armstead built a state-of-the art 65,000 sq. ft. dealership on a 12-acre lot, complete with an internet café that offers breakfast, lunch, free refreshments and a mini-museum with exclusive Jessie Armstead artifacts from the brightest moments of his career.

Since all Honda dealers sell the same cars at similar prices Hamilton decided to differentiate their brand by giving free oil changes, loaner cars and unlimited car washes to every one of their customers. Hamilton also launched www.HamiltonHonda.net, a virtual dealership that makes it easy for consumers to shop, buy and service their vehicles online 24 hours a day, 7 days a week.

Hamilton Honda implemented a comprehensive marketing strategy that included the virtual dealership message and also combines traditional advertising with digital marketing, targeted email and direct mail, publicity, social media marketing, reputation management, niche marketing, point of sale merchandising and a complete retention program to keep customers loyal to service and sales. “We have a consistent message throughout all of our marketing and our team has one focus – exceeding our customers’ expectations,” said Saporito. “We are passionate about customer satisfaction and our team does whatever it takes to make our customers happy.”

“Since Hamilton started without a customer base we had to identify consumers who had the highest statistical probability of purchasing and/or servicing their vehicle with the dealership, so we could speak to people who were in the market for what Hamilton offered,” said Sean Wolfington, owner of www.Tier10Marketing.com, Hamilton Honda’s marketing company. A particular campaign which Hamilton Honda had a lot of success with targeted Honda owners who needed a major service and were in- equity, thus they could upgrade into a newer vehicle for a lower monthly payment.

The 2010 Honda BuyBack program offered customers additional trade-in value to “buy-back” their Honda and provided additional incentives oward the purchase of a new Honda. “The program worked well and brought in a lot of low mileage, single owner, late model Hondas that are hard to find and can be very expensive at the auctions,” said Saporito. Another unique program that Hamilton ran was the Teacher Appreciation Purchase Program, where teachers received special pricing and service from Hamilton. “We like to get involved in the community and help in any way we can,” said Saporito. Hamilton has also created several other vehicle purchase programs including one specifically for the military that gives military personnel special pricing on new and preowned vehicles. Saporito was honored by the US Air Force earlier this year as an Honorary Commander for his many contributions to the military community.

To make sure every customer is handled properly, Hamilton tracks their advertising, employees, and how their customers are treated by listening to every call that comes into their dealership. “When a customer calls with a concern an alert is sent to management so they can call the customer and address the issue,” said Chip King from www.CallRevu.com, the company that monitors Hamilton’s calls 24/7. “Hamilton Honda’s Managers respond immediately to alerts and do a great Hamilton Honda surpassed over 1,030 dealers to reach #9 in the country in only 12 months by implementing a comprehensive marketing platform that promotes all their profit centers.

What They Do:

1. They deliver a cohesive marketing message across all mediums.
2. They have a comprehensive marketing strategy that promotes all their profit centers in sales and service.
3. They conduct aggressive conquest marketing campaigns to attract, sell and service same brand consumers.
4. They monitor all customer phone calls to ensure sales and service calls are being handled properly – and act quickly when CSI concerns arise.

Resources Dealer Uses:

1. DMS & CRM: ADP
2. Ad Agency: Tier 10 Marketing (www.Tier10Marketing.com)
3. Targeted Marketing Company: Team Velocity (www.TeamVelocityMarketing.com)
4. Call Monitoring: CallRevu (www.CallRevu.com)

Recommended Actions:

1. Assess your marketing efforts. Be sure your messaging is clear and cohesive across all marketing mediums so customers and prospects ‘know’ and easily recognize your dealership.
2. Target in-market customers and prospects who have the highest statistical probability of doing business with your dealership today and in the
   long term.
3. Define a message that differentiates your dealership from the competition.
4. Monitor and improve your customer processes and get managers involved early when a customer has concerns. job responding to their customers’ needs.” Hamilton uses the daily, weekly and monthly call monitoring reports to improve their people and processes, and to adjust their advertising to what is generating the most appointments.

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