Mountain View Chevy achieved 68 times its investment in Covideo
Mountain View Chevy is a longtime Covideo user that was looking for a way to further leverage the power of video—without creating extra effort from its team.Codirect, Covideo’s automation solution, helped Mountain View Chevy gain 68 times its original investment and 60 additional vehicles acquired in a five-month period.
Approach
Codirect stepped in with its people- and process-free system, applying a multi-pronged approach that included recovery, campaigns, and retention triggers while focusing on the acquisition of vehicles to add to Mountain View’s dwindling inventory.
After integrating with Mountain View’s DMS, Codirect’s technology went to work putting its brand, face, and voice ahead of the competition with video at the center of each piece of communication delivered on behalf of the dealership.
Results
Thanks to Codirect’s transparent reporting, Mountain View Chevy was able to see exactly what was working, down to the individual customer. During this time, Mountain View saw 5,182 total repair orders, 1,647 (32%) of which were touched by Codirect. The blended gross profit* of customer pay and warranty pay resulted in $215,495. Throughout the same period, Mountain View saw 502 total sales and acquired 248 vehicles. 78 (16%) of those sales and 60 (24%) of the acquired vehicles were touched by Codirect. Sales revenue of $5,353,081 for these 78 customers generated a sales profit of $793,840. When combined, blended gross profit from ROs and sales profit came to $1,009,335.
Conclusion
With a spend of $14,500 and profit of $1,009,335 during a roughly five-month period, Codirect successfully leveraged the power of video, increasing Mountain View Chevy’s ROs, sales, and acquisitions, and ultimately delivered an impressive investment gain of $994,835 or an ROI of 6,861% (68:1).
We’ve experienced great results with CDS automation. It works around the clock, and it’s the best tool I’ve ever used to retain customers.
Larry White
General Manager, Mountain View Chevrolet
*Blended gross profit was calculated by adding customer pay ($350,389) and warranty pay ($41,421) and multiplying by the conservative industry standard of 55% for an estimated blended gross profit of $215,495.
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