Automobile dealers are a hardy bunch. These days, there aren’t many challenges to overcome—from low inventory and high car costs to margin compression. However, the most progressive dealers understand how to change and prosper.

 

One-size-fits-all marketing and sales methods are out of date as customer expectations and market conditions continue to evolve in favor of digital. Modern dealers are adjusting to provide the experiences that customers need as they desire customization.

 

What Operational Advancement Level Does Your Dealership Have?

 

Dealers can be divided into three primary types based on operational advance: forward-thinking, modern, and stagnant. Static dealers use more conventional methods for marketing and sales and have less access to technology. Contemporary Dealers still mostly rely on manual methods, but they do employ some digital technologies. Conversely, progressive dealers make use of cutting-edge technologies. Throughout the dealership, they make use of integrated data, automation, and car dealership software.

 

Not only are forward-thinking dealers more profitable, but they also possess more technological sophistication. Dealers that are forward-thinking employ data to put certain sales and marketing tactics into practice in order to grow their operations, bring in more clients, and handle leads more efficiently. The 2022 Cox Automotive Forward-Thinking Dealership Study really shows that forward-thinking dealers enjoy a 64% greater net profit than static dealers.

 

The Marketing Techniques Used by Forward-Moving Dealers

 

Forward-thinking dealers concentrate on four essential marketing skills: behavior analysis, lead management, content production, and service marketing. These capabilities help them increase customization and craft messages that speak to specific consumers.

 

Using Behavior Insights information from their vendor CRM or website to enhance personalization of marketing

Lead Management: Managing leads and communications with the CRM

Content development is the process of producing customized communications and advertising to draw in new customers and keep existing ones.

Service Marketing: Expanding service offerings by focusing on owners who did not make a dealership purchase

Dealers with a Forward-Looking Approach to Sales

 

The sales process is intricate, combining several front- and back-office operational skills into a single workflow. Innovative dealers concentrate on a handful of these features at a time to customize and expedite the sales process.

 

Operations at the Front Office

 

Vehicle Selection: Giving customers access to search filters or tools for configuring their vehicles

Value cars for trade-in Trade-in Vehicle Inspection: Examining automobiles for trade-in Trade-in Offers: Taking the initiative getting in touch with clients about trade-ins

Exchange Payoff: Repaying current debts for cars that are being traded in or satisfied by them

Give credit Making decisions: Assessing the creditworthiness of customers

Aftermarket and Menu: Giving clients search parameters or other shopping aids to help them look for aftermarket goods and services

Desking: The method of closing business

Compliance: Ensuring that all sales adhere to national and state laws governing consumer information and transactions.

Operations in the Back Office

 

Contracting/Document Management: A dealership’s approach to managing the last sales contract and document storage

Signing and vaulting: Final contracts, whether on paper or electronically, should be signed in a safe, dependable setting.

Title and Registration administration: How a dealership oversees and keeps track of car registration as well as the storage and administration of titles

Whatever sort of dealership you are now, you may get ready for the obstacles of the future. in methods that yield immediate benefits. Take up the tactics of progressive dealers to keep up with today’s consumers and conquer every sales and marketing obstacle.

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