HONDA CARS OF KATY - INCREASES MONTHLY SALES BY $200,000 WITH FACEBOOK
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HONDA CARS OF KATY INCREASES MONTHLY SALES BY $200,000 WITH FACEBOOK
THE STORY
Thirty years ago, Chris Morrison marketed his car dealership by visiting
local employers to shake hands and exchange business cards. While this initiative brought
him profitable relationships in the 80's, it wasn't moving the company forward in 2013.
Morrison found himself with a new problem: How do you stay relevant in an economy
that is so closed off to human traffic?
Through working with Local Search Group, Morrison discovered the modern version of
prospecting for Honda Cars of Katy: Digital Marketing on Facebook.
THE RESULTS
$500 in targeted ad spend can produce
7-9 vehicles sales
2013 service sales went up $200,000
per month
“I needed to figure out how to stay in front of people in the right way. Local Search
Group used Facebook to create highly targeted ads that translated to car sales for my
dealership”—Chris Morrison, Honda Cars of Katy
THECHALLENGES
THE CHALLENGES
Overcoming the Automotive Industry’s Biggest Challenge:
Trust.
1. Customers distrust car salesman.
With the cliché about unscrupulous car salesman, car dealerships of the past
focused on fostering relationships to rebuild that trust. Honda Cars of Katy realized
that building relationships in the 21st century meant being open minded about
trying new marketing efforts to make those valuable connections.
2. Car dealerships distrust online marketing.
While many dealers fear that digital marketing is a black hole that takes your
money with no avail, Honda Cars of Katy would argue quite a different side to the
story after utilizing Facebook ad campaigns with the Local Search Group.
“Facebook helps us eliminate wasted marketing spend by
focusing our ad dollars only on the people most likely to
purchase a vehicle. We can now focus more attention on fewer
higher-quality leads when they walk through the door.”
–Chris Morrison, Honda Cars of Katy
THE SOLUTION
How did Local Search Group restore trust in digital marketing and
help Honda Cars of Katy increase service sales $200,000 per
month in 2013? The answer is simple: Facebook.
Efficient Targeting One-to-One Client Interactions
Through a partnership with Datalogix and R.L.Polk,
Facebook can now target users based on very specific The major benefit of utilizing digital marketing
data points i.e. their location, the age of their car and through Facebook is that it meets consumers exactly
if they purchased a car recently. where they are. Facebook gave advertisers the ability
For Honda Cars of Katy's campaign, the ads were to deliver ads to Facebook users' newsfeeds, in
focused on users within a 25 mile radius of Katy. addition to ad positions on the right side of user
Local Search Group used Facebook’s Power Editor pages.
tool to build ads targeted to area Facebook users who
owned their current vehicle between three and six
years. At that point, car owners are most likely to By seamlessly integrating into potential
purchase a new vehicle. customers’ lives through a platform they
The team also created campaigns that focused on trust, Facebook created one to one
users with an affinity for vehicle leases – a strategic interactions for Honda Cars of Katy and
advantage for Honda dealers due to high vehicle the people in their community.
residual values. These campaigns used Facebook’s
lookalike audience feature that takes a list of best
customers and matches them to similar Facebook Through this campaign, Honda Cars of Katy
users who are not customers. discovered how building online credibility translates
to building trust with potential consumers.
Even if Honda Cars of Katy missed a new vehicle
sale, it targeted users with service offers such as 20%
discounts and even aggressive deals such as $299 for
lifetime oil changes.
THE NUMBERS
Medical Center Campaign Energy Corridor Campaign
In May of 2013 the dealership used Facebook ads For six weeks starting in January 2013, Honda
to sell 16 new and used vehicles to employees of Cars of Katy used Facebook to send ads to more
two major medical centers in the area, each of than 31,000 energy employees at companies
which employs about 3,500 people. The such as BP, ConocoPhillips, Citgo, Marathon,
campaign sent ads to all employees at the
hospitals who have Facebook pages. Chevron and Shell.
Best of all, the dealership only paid
when a Facebook prospect clicked
on an ad, so clicks typically cost less
than $1 to $2.
Offers included low lease rates on Honda Civic
sedans and promoted offers of $5,000 off of in-
stock Honda Pilot crossovers.
In April, the ad campaign to hospital employees
cost Honda Cars of Katy $500 and resulted in 9 Despite running during the slowest
vehicle sales.
time of the year, the campaign
"For $500, that's a pretty good return on generated 7 vehicle sales at $500 per
investment," said Morrison, reflecting on the month for pay-per-clicks.
hospital campaign that ran for 6 weeks.
During this campaign, Honda Cars
of Katy's monthly gross service and
repairs revenue averaged $700,000
in 2013, up $200,000 per month.
THE BIG IDEA
Digital Marketing Solutions are the future of automotive advertising. Interested in
discovering how we can help your company?
Call one of our specialists to get all your questions answered today.
Local Search Group
713.493.7735
www.localsearchgroup.com
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