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Archive for the ‘Automotive Marketing’ Category

The trickle effect in new and used car sales

The meat of this article by Arianne Walker in Online Automotive Review is iterated in the final paragraph:

Even though OEMs and dealers have been shifting their marketing budgets online, the data shows that most should probably be accelerating that transition, putting even more money where shoppers - new and used alike - are increasingly going.

These trends are consistent with the recent Cobalt-Polk-Yahoo! study on new vehicle buyer behavior in how it directly and indirectly influences used vehicle purchases.

When I think of car sales, I think of long-term retention. But immediate sales are important to. While you need to invest into new and used car advertising, a primary benefit with investing in to new vehicle advertising is that the investment not only trickles down into used car sales, but it even influences used car sales. That is what the study suggests at least.

This is a key topic today for dealers and providers. Dealers today are cautious of where and how they shift their marketing dollars. It is widely known that the Internet offers the greatest ROI, however establishing your online brand recognition is not an event, it is an establishment that requires years of vision, commitment, and dedication from dealers and their providers.

Dealers must be prepared to take risks and to embrace long-term change in order to meet auto shoppers in advance, but it can be done with the right tools and techniques.

Wednesday, June 4th, 2008

Does Your Website Leave Money on the Table?

Online shoppingLet’s say for a moment that one of your potential customers desperately wants to buy one of your cars. They’ve come into some money, or they’ve been saving up for years, and all they want to do is buy one of the cars that you sell. Is your website helping or hurting them?

When a web savvy customer is in the market for a new car, the normal first step in their process is to head over to the OEM website to check for statistics, pricing, and model details. Unfortunately, most manufacturer websites are sadly lacking in what these customers are looking for. They’ve got lots of sexy videos and flash introductions, but not much in the way of hand holding or explanation.

In many cases, when a customer doesn’t already know the model they’re looking for, the OEM site doesn’t help them. They’re often forced to search by model at the very least, sometimes even having to input the GT or LS or 123 at the end. Does every single one of your customers know that?

While this is bad news for the OEM, it can be very good news for your auto dealership’s sales.

What many car dealerships seem to forget when designing their website is that people don’t always actively plan to come in. They list their hours and their location and maybe their specials and assume that the information they’re providing is compelling enough to make the customer drop everything and stop on by. Not so.

Take the opportunity to differentiate yourself. Take a good look at your local competitors and your OEM’s site and see what’s missing. Find someone you know who knows nothing about cars — what do they think? What do they recommend? What would they like to see?

If you plan out your automotive internet marketing based on what your customers need — and not what you think they need — you can stop leaving money on the table and make the sale before the customer even leaves their desk.

Wednesday, May 21st, 2008

Does The Web Make Salespeople Redundant?

Car salespersonIf you’re a regular reader of this publication, you’ll hear a whole lot about online auto marketing. You’ll hear about email campaigns and blogs and social media. You’ll hear about website design and website functions. You’ll learn everything you ever wanted to know about selling cars online.

With all this online selling, where does that leave the salesperson? Does the person selling the car even matter anymore? Does the customer even care?

Yes, yes, and yes.

It’s easy to forget about the role the salesperson plays in the sales process, especially in an age when it seems like every possible transaction is secured online. But the role of the salesperson has never been more important than it is today, and that won’t be changing any time soon.

In “the old days”, the role of the salesperson was broader. They informed the customer about their choices, they educated them, and they held their hand throughout the entire process. The salesperson told the customer what they needed to know.

Nowadays, the salesperson no longer holds a position of power. They are not the only member of the relationship with a knowledge of the inner workings of their cars. Customers have access to online forums, OEM websites, the dealer’s own websites, and more. They can read blogs and media publications about your cars and your dealerships. They know as much or more than the salesperson about the specs of the vehicle.

So what is the salesperson’s role in the process now?

The modern car salesperson has a great responsibility. They are directly and intimately involved with the most important part of any sales process. They have the sole power to make or break the deal.

The salesperson is responsible for the close, and for that they can never be replaced. Find good salespeople and keep them, or it doesn’t matter how pretty your website is — nobody will buy.

Monday, May 19th, 2008

Selling More Cars: What Are You Giving Back?

Selling a carThe internet operates in an attention based economy. Instead of your website visitors giving you money, they’re giving you their time. Of course you’ll eventually want them to give you their money, right now you want to maximize how much time they’re giving you. How do you get them to give more? You have to give more back.

Think about what you can give your web visitors.

Your automotive dealership’s website visitors aren’t there for the good of their health. They’re at your website because they want something. In the case of a business website like yours, they’re looking for information. Give them information and they’ll stay.

Think about what kind of information they want.

There’s a whole variety of information that you can provide for your customers. The spectrum of information varies from simple maps and contact phone numbers to resource guides, maintenance advice, blogs, communities and more. What do you think your customers and potential customers want to know?

Think about how to provide the information.

Perhaps the most important part of the information equation is your delivery method. Certain types of delivery are more conducive to increased visits than others. You want to maximize the number of visits to maximize your brand’s exposure and increase the likelihood that they’ll make a purchase.

For example, let’s say you’re providing a maintenance article. You could put that on one long page or several shorter pages with a hyperlink reading “continued on next page”. If you get them to click, you get them used to clicking. They might just visit your sales page while they’re at it.

You could also publish your maintenance article as a downloadable PDF. You can provide for free if they subscribe to your newsletter. They get the value, and you get a way to contact them in the future.

There are lots of ways to retain the attention of your customers. You just have to get in their shoes, think about what they want, and then give it to them. Isn’t that easy?

Friday, May 16th, 2008

Turning Visitors into Buyers: Make It Easy

Car shopping onlineThe internet has changed everybody, including tire kickers. Tens of millions of people are researching their purchases online before they buy, and that certainly includes car buyers. So how are you supposed to turn these lookers into buyers? How do you convert mildly interested people into enthusiastic customers? Here are some ways to convert search traffic into real life buyers.

Make it easy for buyers to contact you.

Put your phone number — or one of your phone numbers — on every single page of your website. Eliminate any possible reason for customers to leave your website or your page. The internet may be taking over the world, but a large volume of people still want to pick up the phone and call. Make it easy for them.

Make it easy for you to contact your buyers.

The easiest way for you to get into direct contact with your website visitors is email, so find a way to get their email addresses. The best way to do this is to create some kind of good reason or incentive for them to give up their address — give a bonus or promise updates on your specials and sales. Then follow up and send them something right away.

Make it easy for buyers to find you.

Just because you know where your dealership is doesn’t mean anybody else does. Let’s face it, if your customers drove by your dealership on their way to work every day they probably would’ve stopped by instead of checking you out online. Put a map in your sidebar or put directions on a prominent page on your site.

Remember, people’s thoughts follow established neural pathways. If they start their relationship with your dealership thinking it’s an easy and pleasant experience, then that impression will remain throughout your relationship. Help by planting the easy seeds at the beginning and reap the rewards now and in the future.

Wednesday, May 14th, 2008

Street Gangs Find New Way To Sell Cars

New Car Steering WheelAccording to a recent article in the London Turkish Gazette, London police have started to target street gangs who are selling their cars from the street itself. Apparently local residents are feeling intimidated and can’t find a place to park, leading authorities to crack down on the illegal automobile trade.

What does this have to do with your dealership?

When it comes to any kind of illegal activity, street gangs and organized crime are not known for targeting unprofitable niches. They’re getting their cars — their “dealerships”, as it were — right in people’s faces and hawking their wares for all to see.

Can your auto dealership learn from this?

Think about it. How many people in your surrounding area really know what you sell? Granted, they know you sell cars. Maybe they even know you sell Ford trucks. But do they know the benefits of your vehicles? Do they know your price points? Are you really exhausting all of the possible sales opportunities from your area customers, or are you relying on traditional methods of automobile marketing and advertising to do your work for you?

While nobody would advocate intimidating the neighbors and taking away places to park, it is worth taking some time to think about what you could be doing to get yourself, your salespeople, and your dealership on the front lines of the marketplace.

Some things to think about:

Are you asking for the sale?

Are you making it crystal clear what you sell and what it costs?

Are you carrying your business cards with you at all times?

Are you carrying your virtual business cards? Are you capitalizing on online sales and networking opportunities as a part of your brand strategy?

Fortunately for London residents, these particular salespeople are on their way to prison. But maybe we can all learn a lesson from what they were trying to do.

Monday, May 12th, 2008

Can Rentals Help Your Car Sales?

Girl with car keysPeople are more likely to buy what they know and the fastest way to get to know a car is to drive one. Based on this idea, the auto rental company Avis did a study to find out the impact of automobile rentals on future car purchases.

Turns out if they rent the car, they’re more likely to buy the car.

The UK operations of Avis sent a survey to over 2,500 auto renters in the UK and Europe to find out what kind of an impact the rental experience and rental car had on future purchases. They found that 105 of the survey responders had already gone out and purchased the model of vehicle they’d rented at some point in the past. 44 percent of the UK drivers who participated in the survey were “slightly or much more likely” to add the model they’d rented to their short list of cars to consider.

When you consider that 48 percent of the respondents were set to buy a new vehicle in the next year, those are very big numbers.

What does this mean to auto manufacturers?

Well, despite the fact that the rental sector is deemed to be unprofitable in the short term, car manufacturers might be better off considering the lucrative “long tail” market. If you can create an enjoyable rental experience and potentially long term consumer loyalty, the cost of entering the rental market could be offset many times over.

The director of the Avis fleet says that the results of the survey were very positive. “We understand manufacturers have to control rental volumes more carefully, but this proves they could lose out on future sales, many to drivers who have never experienced their brand, if they do not keep up a presence in the rental arena.”

Friday, May 9th, 2008

Would You Like Fuel With That?

Cheap fuel as automotive marketing incentiveVehicle sales have been stalling as the economy is trying to sort itself out and potential consumers are trying to hang on to their vehicles as long as possible. To combat this, dealerships and manufacturers have been getting creative in attempting to lure buyers to their shops.

In the latest in a string of various incentives Chrysler Corporation announced on Wednesday that it will be limiting the amount its customers will be paying for gasoline when they purchase selected new models.

The idea of incentives is not a new one to the automotive industry. First it was the $0 down 0% interest offers, followed by the employee discount offers. Some dealerships even offered “buy a new car, get a used car free” or Dell desktop computers with the purchase of a new vehicle. But with the price of gasoline increasing and with no signs of stopping, Chrysler thinks they’ve got the next big one.

“It’s something that’s unprecedented in the car business,” said Craig Stickler, general manager of Maxwell Taylor Chrysler. The news “was released night before last and we received probably between, in the neighborhood of 20 to 25 calls yesterday and the phones have been ringing off the hook,” said Stickler.

The plan is to offer purchasers of specific models a special credit card that allows them to purchase gasoline for $2.99 a gallon for regular or diesel fuel for a period of three years. If gas prices raise above the $2.99 per gallon mark during that time period, Chrysler will pay the difference.

Stickler predicts that this is a move that other manufacturers will follow, and Chrysler is already hinting that it will extend the offer beyond the June 2 deadline. Customers also seem to be interested. “I definitely would look into that. I tell you because you feel it at the pump now. You really do,” said Darwin Tanksley, one man feeling the fuel crunch.

Ready to get more buyers through your dealership doors? Check out new information about automotive search engine brand marketing and find out how to get them through Google.

Wednesday, May 7th, 2008

Marketing the Hard Sell: Finding Different Customers

Marketing SUVs in a sagging automotive marketIn a sagging automotive industry, it’s easy to get dejected about the state of vehicle sales in America. Automotive dealerships can always find new ways to market their products, but some things seem just about impossible to sell. With gas prices at never before seen levels and an increase in consumer concern about the environment, what do you do with all of the sport utility vehicles and pick-up trucks hanging around the dealership?

According to a recent article in Forbes Magazine, the auto industry has an especially tough time with consumer shifts. It takes about four years for car companies to alter production schedules, and a lot of vehicles get made in those four years. Somebody has to sell them, and that somebody is your dealership.

So how do you sell the cars it seems like nobody wants?

“We all know the saying about one man’s trash being another man’s treasure, and you just need to find the man who treasures your trash,” says marketing professor John Zhang. Instead of just finding new customers, you have to start looking for different ones.

Traditional automotive marketing works in a market that’s operating traditionally. With the current market down-turn, traditional marketing initiatives don’t work as well. This is when you have to start getting creative.

Stephen Hoch, another marketing professor, says that you have to find a way to get around people’s natural objections. You need to “frame an offer to get rid of the objection.” In the case of SUVs, dealerships that are offering free gas deals to combat rising fuel prices are noticing improvements. It only works on people that aren’t buying because of gas prices, but it’s a start.

Zhang advises dealerships and marketing teams truly put themselves in the shoes of their customers.
Envision their objections and see what resources you have to remove them. Don’t be afraid to try new automotive marketing techniques and keep at it. You might be surprised by what works.

Monday, May 5th, 2008

Play Up Fuel Efficiency in Car Marketing Campaigns to Increase Sales

Highlight fuel efficiency in car marketingIt’s no surprise that the auto industry is in a slump. Gas prices are high, most of America is mortgaged to the hilt, and consumers are finding there’s too much month left at the end of the money.

According to information from sales tracker Autodata, April vehicle sales showed surprising information. Despite the sluggish economy, passenger vehicle sales were up five percent. At the same time, sales of trucks and sport utility vehicles plummeted over 17 percent.

Automotive marketing experts suggest that this disparity in sales data results from consumer mind shifts. When the price of gasoline is through the roof, the better your cars are on gas, the more you’ll sell. US auto makers are sitting up and paying attention to this shift in customer focus.

Mark LaNeve, the VP of Sales, Service and Marketing for GM North America says, “Consumer preference is shifting and we’re shifting with it.”

Both GM and Ford are planning to cut back second quarter truck and SUV production as more and more customers are opting for smaller vehicles. George Pipas, a Ford sales analyst, says that people who bought F-150 pickup trucks as fashion accessories just a few years ago are now looking at sedans. “People who didn’t need the utility of pickup truck are trading them in.”

What does this mean to the average local auto dealership?

Whether you’re looking at your automotive marketing online, your radio slots, or your print publications, the important thing to focus on right now is fuel efficiency. This is the time to play up your vehicles that are great on gas, especially hybrids.

“It’s clear that gas prices are weighing heavily on car-buyers’ minds,” says Jesse Toprak of Edmunds.com. If you take the opportunity to highlight your vehicles with great fuel efficiency you have the chance to capitalize on this trend before your competitors and ride out the slump.

Friday, May 2nd, 2008

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