Auto Dealership Marketing: A Long-Term Strategy
Auto dealers have tried everything in the past (and, to be honest, even now) to increase sales. You name it: catchy jingles, humorous advertising, tent sales, enormous inflatables. In today’s digital age, some of those practices are fading away, but they are frequently being replaced by practices that are just as useless.
Have you switched to digital ads from print, radio, and/or television commercials? How has the experience been for you? Pay-per-click (PPC) advertising might be a fruitless endeavor unless you’re willing and able to spend enough money to guarantee that you’re at the top of every online search. However, you still need to figure out how to draw clients, both online and offline.
What, then, should an auto dealer do? Don’t attempt to rush things to start with. Marketing for auto dealerships is a long-term tactic. Yes, you do desire the following sale. However, you also want that client to return repeatedly and to refer their family and friends.
There are several alternatives available to you when you have the authority to allocate the marketing budget at your auto dealership to entice potential clients. You must continually attract potential car buyers to your showroom and use tried-and-true methods to get them behind the wheel of your available fleet of vehicles.
Avoid seeking a quick fix. Focus on scheduling, keeping, and completing service appointments; provide excellent customer service and reduce customer churn; establish a procedure for dealership reviews; and be individualized in your client retention approach.
You should also read Rory Vaden’s book “Take the Stairs: 7 Steps to Achieving True Success”. It’s an excellent book that addresses the “escalator mentality” of today and exhorts you to “skip the stairs” and not take the simple route out or give up when things get difficult.
Are you prepared to launch a more effective auto dealership marketing plan? Here’s how to mix automobile marketing strategies effectively to increase client appeal, long-term customer retention, and dealership profitability.
Why Conventional Automotive Dealership Marketing Frequently Fails
The world of auto dealership marketing has become more complicated as consumers’ attention spans get shorter and the Internet becomes increasingly crowded with information and purchasing possibilities. Print, radio, and other antiquated forms of advertising are no longer successful, and PPC and other more recent methods are either unproven or inefficient. Whatever the case, even if they do give a temporary boost, traditional marketing strategies have a finite shelf life and frequently fade away after a month-long cycle.
The Advantages of a Client-Centered Free Maintenance Program
The future of automotive loyalty is being defined by a focus on long-term growth, even while traditional auto dealership marketing is losing ground. The conventional methods of client acquisition (such as direct mail, email marketing, television, radio, and online advertising) and the contemporary methods of customer retention (such as a complimentary maintenance program) are very different from one another and cannot be disregarded.
A complimentary maintenance program should ultimately serve as a comprehensive customer retention strategy. Customers are drawn to your dealership not just to make their first auto purchase but also to return for service and eventually to make their next auto purchase. And if you manage to keep them content, they will recommend you to their friends and family and post about you on social media.
A customer’s initial degree of comfort progresses into a commitment over time, turning a transactional value into a lifetime value. Free maintenance plans have proven to be effective at boosting client loyalty and service revenue. You are advertising your dealership and your brand while standing out from the competition by providing packages that are tailored to the particular requirements of your clientele.
Are You Spending Money on the Wrong Audience?
Casting a wide net is typical of traditional marketing. Although your advertisement may be seen by a sizable general public, it is rarely directed at your precise client model, and you must pay a premium for that placement. As a result, traditional advertising rarely gives most dealerships a significant return on investment (ROI).
On the other hand, a successful complementary maintenance program makes the distinction of being both focused and affordable. With a range of choices to meet their demands, such as prepaid, discounted, or loyalty programs, you effectively target your audience who buys vehicles. Before making a sale, the typical dealership spends $628 on traditional advertising for each vehicle. For about one-quarter of that price, a free maintenance program can draw buyers to your dealership.
Why Customer Retention Is So Important
What does a consumer in the automobile industry pay? Well, that depends on the type of customer in question. As it might cost up to ten times as much to attract a new customer as it does to keep an existing one, repeat customers are worth their weight in gold. Furthermore, it is predicted that the most valued 20% of your current customer base will provide 80% of your company’s future revenue.
While the majority of conventional marketing strategies used by auto dealerships are aimed solely at luring new consumers, an efficient supplementary maintenance program achieves this goal while also luring past customers back for repairs and subsequent vehicle sales. When your dealership fully understands how crucial client retention is to your financial line, the benefit of free maintenance will become abundantly evident.
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