At Speedy you’re a somebody… with a name, address and transactional purchase history. And, if recent corporate rumblings hold true, you’re a somebody who’ll be receiving targeted direct mail pitches from Speedy Muffler King in the not-too-distant future.

However, despite a proclamation by company chairman Martin Goldfarb at Goldfarb Corp.’s annual general meeting earlier this month that its automotive service franchise, Speedy Muffler King, was turning to database marketing as a way of salvaging its financial fortunes, the company is being tight-lipped about its actual plans.

Goldfarb’s $70-million loss in 1997 is largely attributed to the poor performance of its Speedy Muffler King subsidiary in that period. As a result, Speedy’s management structure was overhauled late last year, with the appointment of a new president and new senior marketing team taking place.

Charles Grossner, who joined Speedy as vice-president of marketing after working as a senior retail consultant at NCR Canada, says the Canadian automotive aftermarket is far too competitive for him to risk tipping his hand to the competition. Canadian Tire and Midas are Speedy’s primary competitors, along with scores of smaller regional chains and independent operators.

‘We’re all going after the same customer, and often we’re posturing the same benefits and features,’ says Grossner. ‘We’re trying to develop something unique here, but it is a turnaround for us, so we have to be very cautious about how we do it.’

Grossner does suggest, however, that Speedy, like most other participants in the Canadian retail industry, was not doing as much as it could with the customer-specific transactional data it had on hand. ‘When I came to this company, I discovered that they had an extensive database of their customers, with some excellent information included. It was an easy opportunity for me to sink my teeth into it and do something with it.’

He states that the company is now committed to getting a better grasp of its customers and developing marketing strategies to reach them in the most efficient manner possible.

Retail industry observers, meanwhile, believe Speedy is making a move in the right direction, as long as it doesn’t go too far and abandon brand advertising altogether, which is something Grossner vows he won’t do.

‘I think balance is the key,’ says John Torella of Toronto-based retail consultancy J.C. Williams Group, pointing out that while database-driven marketing efforts are very effective at boosting customer retention rates, traditional media tactics are still needed to attract new customers.

‘The fact that you’ve got a customer and are able to track the last time they were in, how often they’re in, and how much they spend with you are all important,’ he says. ‘But, you’ve got to do the other job too.’

Says Ed Strapagiel, vice-president of Kubas Consultants: ‘Obviously, direct marketing is not a great way to go to be top of mind when somebody’s muffler goes. That’s where name recognition and brand recognition come in.’