Auto dealer marketing has become increasingly more competitive as fewer buyers in the market which means stiffer competition. Top auto dealers are pulling out all the stops in their quest to increase their market share. Auto dealerships are also competing head-to-head with competitors as well as same-brand dealerships.
The closing of thousands of auto dealerships has lessened the competition between same-brand dealerships, though that competition remains. Brand competition has increased dramatically in competition as auto dealers try to capture their local markets.
In order to grow local dealerships, many general managers have shifted marketing dollars from radio, television and print to online auto dealer marketing. Consumers are looking online for cars more than any other resource and that means search engine optimization and other forms of online marketing are taking the lion’s share of the marketing budgets for the best producing auto dealerships.
The first step in beating the competition with auto dealer marketing is to know your target market and understand how they are searching for your vehicles. Keyword research is an important consideration whether you are engaging in a search engine optimization plan or a pay-per-click campaign.
Typically an auto dealer will have more than one or more target markets, perhaps even one target market for each model of vehicle they sell. It is important for the team handling your auto dealer marketing to try to get into the heads of your target market and see how they search online.
Once you have a good sense of how people are searching for you it is important that you engage in a seo and online marketing campaign that makes sense. You want to consider which pages on your website you optimize for which keywords. You do not want someone looking for a luxury sedan to find the page for your introductory model, or vice versa.
With the market shrinking you need to engage in an aggressive SEO campaign designed to increase your market share.
Category Archives: Auto Dealer
Of Auto Dealers and Icebergs
There’re Not Enough Life Boats! Few phrases are as closely linked to tragedy as this one. For the remaining 1500 men, women and children left on the Titanic with nowhere to go but the frigid waters of the North Atlantic on that historic night in 1912, the grim realization of their fate must have been devastating.
As I build towards a marketing point I see parallels in this tragic event to what is happening in the auto dealer industry. With deep conviction I feel as though I am recording it as it happens. I see the water rising above dealers’ ankles and I wonder why more of them are not reacting to the danger.
There is no doubt today’s auto dealer is experiencing the business equivalent of Titanic’s grave situation. A jagged berg of competitive pressure and a new, sophisticated customer with much higher expectations have pierced the industry at its weakest links. It is life or death. The parallels between Titanic and the Auto Dealer Industry are chilling; both rely on moving metal for survival.
•Both segregate their customer. Titanic: 1st, 2nd and 3rd class. Auto Dealers: Men and Women. There is a clear distinction in how each are treated.
•Both recklessly race to their destination. Titanic: New York. Auto Dealers: The Sale.
•Both consider themselves ‘Unsinkable’. Titanic by Superior Technology. Auto Dealers by Superior Sales Process. The very strength of which they boast proves to be their weakest link.
•Both dismiss warnings. Titanic: Icebergs. Auto Dealers: Customer Dissatisfaction with the sales or service process.
•Both take dangerous risks. Titanic: Sail Faster. Auto Dealers: Sell more, faster. One risked lives. One risks relationships. Relationships are the lifeblood of existing and repeat business.
•Both struggle to change course. Titanic: ‘Iceberg Dead Ahead’ Auto Dealers: ‘Follow Whatever is Ahead’. Today’s dealers are drowning in a sea of sameness. They cannot resist the influence of their crowd; even as it pulls them deeper.
•Both waste critical opportunities. Titanic: Fill the Life Boats. On Titanic many were launched half-empty. Auto Dealers: Build Customer loyalty. Many Auto Dealers launch half-empty relationships.
•Both experience dramatic collisions. Titanic: The Iceberg. Auto Dealers: Customer Needs, Desires and Expectations.
There is no denying, the auto dealer industry has squarely hit its iceberg. It can be argued it repeats the collision with every negative customer experience.
For the Titanic, slow reflexes contributed to its demise. The same is true for auto dealers; as slow movers grasp false hopes onboard a sinking ship.
•Secure your safety. One of the biggest opportunities in this industry is in serving women. They influence 85% of the purchase decision. Tune into their frequency and offer a sincere experience that is tailored to them. Master this and you will find a safe and rewarding harbor.
•Slow down. Do not collide with your customers…bond. Customer sensitivity is heightened during the car-buying experience. Customers are on the defensive. They are expecting a push. But, a push leads to push-back. End this vicious cycle by moving at the pace they set.
•Get your bearings. The best companies know their customers and strive to evolve their products and services to meet customer needs and desires. Many times companies discover unmet needs which when addressed lead to additional revenue. No business is unsinkable. It must be constantly evolving. Titanic exceeded needs until the needs changed.
•Melt the Ice. Understand that humans are emotional beings. In purchase decisions emotion trumps reason every single time. Unfortunately, most dealers focus on reasoning or misuse emotion. Championing lower prices versus a sincere, respectful buying experience, auto dealers fail to realize customers do not remember prices, they remember how you made them feel. Others use fear and intimidation to force a hand. It is time for those dealers to go down with the ship.
•Follow a truer compass. Get back to the basics of building relationships. Car buyers are looking for someone they can trust. Today, staying on the charts with customer expectations is harder than ever. How do you think the experience you create for your customer compares with their Starbucks experience? Customers are contrasting their best consumer experiences (regardless of product or category) with their experience with you. Do you think you are headed in their direction?
•Take the helm. Unfortunately, fewer and fewer executives are involved with marketing. Noted business management pioneer Peter Drucker once said “there are only two functions that generate customers; Marketing and Innovation. The rest is overhead.” The top needs to be involved and focused on building a sales experience that takes the sell out of the sale.
•Sail under a new flag. It is extremely hard for the consumer to distinguish one dealer from another. The buildings are the same, the products are the same and the gimmicks are the same. Is there any reason to believe the experience is different from dealer to dealer? Differentiation is about communicating and delivering a meaningful difference to your customer. It is finding that one value or niche that strikes a fundamental cord. Differentiation from your competition will prove a major advantage if you are committed to it. There are 100 years of poor car buying experiences associated with this industry. As a dealer you need to distance yourself. You need to become the Un-Car Dealer…and fast.
•Stay together. Building customer loyalty affords great opportunity for those who embrace it. That means staying in touch. Caring after the sale. Growing the relationship post-purchase is investing in your future. Dealers – do you have quarterly ‘Thank You’ events for past customers? Does the GM or others in the management tier regularly call and thank customers? Evaluate your relationship building skills right now – can you name your last 5 customers?
•Abandon pride and ego. Have you noticed that dealer advertising is focused on dealer ego? “We have the largest volume”, “We’re #1”,“We can’t be beat.” Advertising is meant to attract your potential customer, not to pound your own chest. The fact is, the customer does not care about any of these things and they are officially numb to the hype. They are watching and listening for proof points that a car buying experience with you will be positive.
As an auto dealer, the time to scramble for a life boat is now. There are not enough life boats and the most discerning customer to ever shop the planet is choosing who gets a seat.
The Biggest Lies Auto Dealers Make
Deception is everywhere and phonies are scattered all over the land. This is the reason why each one should be cautious in both their transactions and decisions. This fact is also true in purchasing automobiles. Though most of the auto dealers are honest, there are some details that every purchaser should watch out for.
When honesty and integrity are made issues, surveys divulge that auto dealer’s knuckles scrape the bottom of the barrel along with other politicians, telemarketers and insurance agents. Auto industry is riddled with liars and crooks.
Deception is almost always linked to marketing and this is said to be an activity that most people identify with a grain of salt. According to some, life is a sales game and to win it over, every strategy must be made – whether it is good, tolerable or awful. Several profit-oriented companies make profits by promoting their products and services as better than their rivals, regardless of their truthfulness.
Why do auto dealers have such dire reputations? According to analysts, the reputation is triggered by the fact that most people have their cars as their greatest single purchase other than a dwelling. Negotiable value mated to a wide- variety of options makes every one careful about trickery. The cautiousness is far higher than if a brand of apparel or food failed to live up to consumer’s expectations.
There are a lot of maverick salespersons in the business industry. But in the auto industry itself, a dealer of K & N Cold Air Intake would less likely feel the impact of hesitation than auto dealers. These crooked salespersons are thorns that bring down auto industry’s reputation to the detriment of honest individuals in the industry.
Dealership owners usually keep these maverick salespersons because they are usually seated atop the sales charts. Businessmen are saying that though reputation is one significant thing, business is still business. Unless the situation would generate a legal action, most businessmen will not avoid a goose that lays golden eggs.
Among the most common lies include price packing. In this situation, the salesman agrees with a purchaser on a particular price. Afterwards, he ‘packs’ additional hundreds of dollars onto the final bill. This is done by including finance charges to a few more dollars per month than what is required. Unfortunately, only the most astute purchasers get to notice this shrewd scheme.
Another lie is dubbed as the bill-padder or the excessive labor fees in regard to pre-delivery work like those involving larger wheels, audio system upgrades, and the like. This is easily disguised by adding several folds of dollar per month to the final charge. Aside from this, auto dealers also employ several white lies as anyone else.
The industry has its slice of shady character, same with other industries. However, various industries are swarmed by different types of people – people of character, people of integrity, people of faith and those belonging to the negative types.
According to some dealers, it is quite unfair to dub them as liars, crooks, or fraudulent doers when they are doing an honest business. They added that selling cars is a great way of earning honest income. “Profit,” said Stephen Smith, Lexus auto dealer, “is not an option, but an objective in any business and that holds true in my industry. It is as fair for an auto dealership and an auto salesperson to make a profit as it is fair to make a profit in any other form of business. There are good people in the auto industry and I am one of them!”