February 5th, 2012 | Written By: Chuck Patton
Every dealer has exponentially more to offer than the aftermarket! So why does the aftermarket still manage to outpace dealerships’ service departments by nearly 7 out of 10 times? Do you believe that your dealership is far superior to your competition? Why is your dealership far superior to the competition? Do you feel confident in what you have to offer above your competition, and have you fully developed your service department’s unique benefits and committed what sets your dealership apart from the competition to writing? If you have your selling points written, then you have a great foundation to dominate your market. The strategy is simple – if you don’t have enough value over the competition, then develop more. If you believe your value already exceeds that of your competition, then make sure you have a plan to communicate that value and sell it to your customers in order to build more traffic. Let me take you through an easy system that will ultimately lead to a successful service department. Essentially, you will be developing the parts to “a good deal,” which is ultimately what your customers want. DEAL = VALUE – PRICE.
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Posted in: Best Practices
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January 27th, 2012 | Written By: Chuck Patton
The single largest change that I have seen in today’s economy, based on my 17 years of marketing for automotive dealerships, is the need to go out and get customers instead of just managing the masses that come to you. For years, the rubber stamp expectation for the service department has been a year-over-year growth of 10%. Most dealers were able to achieve that goal as long as they charged enough, sold what was recommended and did a decent job of making the customer happy.
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Posted in: Best Practices, Marketing Plan
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June 22nd, 2011 | Written By: Regina Green
While it’s far from being an exact science, there are a few unbreakable rules for successful and effective marketing. And while many of them are common sense, there are a few that seem to have been forgotten by many of the marketing programs being offered by automotive manufacturers. These programs often ignore these rules in order to increase their revenue by cutting corners—all in the name of “targeting the right customers at the right time.” But breaking common rules of marketing can lead to disastrous results for a dealership’s service department.
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Posted in: Best Practices, Customer Retention, Direct Mail, E-mail Marketing, Segmented Marketing
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May 18th, 2011 | Written By: Chuck Patton
The easiest and perhaps most overused strategy in automotive marketing is trying to sell the same product or service for a lower price. In fact, trying a sell-it-for-less strategy to promote your service department can backfire and is often not the most effective way to increase your business for the long term.
According to an aftermarket service association study, new car service departments charge 33% more for the same service than the aftermarket. A dealership service manager might rightly say that this study is a bit self-serving and probably biased, but it really doesn’t matter. What matters is your customer’s perception.
With that in mind, have you ever really asked your potential customers why they don’t service with you?
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Posted in: Best Practices, Branding, Marketing Plan
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November 5th, 2010 | Written By: Eric Johansen
It’s no secret everyone likes to feel appreciated. Your customers are essential to the profitability of your operations and should be recognized as such. It is vital to let them know how much you value them…or you may not keep them. With all the communication options available, how do you reach your customers with a display of genuine and targeted gratitude? Here are a few hints on how to express your thanks.
The first thing to remember when giving thanks is to just give thanks. Most people don’t appreciate conditional apologies or thanks, so be careful that your “thank you” doesn’t come across as another way for you to get their money. If you include a coupon, ensure that your thank-you message isn’t off-putting because it solicits additional spending by the customer…even if it’s at a savings. Since you should already be taking care of couponing with an orchestrated direct marketing campaign, the best approach might be to focus exclusively on the thank-you message to build rapport with your customers.
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Posted in: Best Practices, Direct Mail
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October 6th, 2010 | Written By: Melissa Hans
Coming from, and living in, a family of attention-deficient loved ones can give you a distinct advantage. After hearing the oft-used phrase, “Think outside the box,” you immediately think, “What box?” It allows you to be open to all possibilities and can help prevent falling into a rut.
Marketing and advertising people are often “what box” type personalities. Even the craziest commercials on television can be given points for creativity and originality. And if you remember the name of the company or the product in one of those commercials, the ad has reached some level of success.
However, you may feel as if you don’t have time for creativity and originality. Maybe you work in a setting where “that’s the way it’s always been” means “that’s the way it’ll always be.” The prevailing attitude is definitively planted firmly inside the proverbial box.
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Posted in: Best Practices, E-mail Marketing
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August 30th, 2010 | Written By: Melissa Hans
There are times when we all feel like we are simply scratching the surface of life—doing enough to get by but knowing there could be so much more. Perhaps you’ve been taking that approach to marketing your service department. You know you should pay it more attention, but at least it’s getting you by.
When I feel like this, it reminds me of a social studies lesson from middle school about subsistence farming. Subsistence agriculture is all about self-sufficiency—growing enough food to feed yourself and your family. In other words, just enough to get by.
When you are doing just enough to get by, you often fall back to what is comfortable, familiar or easy. You choose the cheapest and safest routes to advertise. Right or wrong, logical or not, your focus becomes that of a subsistence marketer, continually working with results being based primarily on the economic climate. This leaves you open to economic famine and the pestilence brought on by fierce competition that can wipe out your profit harvest
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July 27th, 2010 | Written By: Regina Green
As a service manager, you’re undoubtedly convinced of the importance of maintaining regular contact with your customers. It’s a critical function of marketing. You’ve probably seen a boost in sales from your mailers and e-mails, but you might wonder if there is more you could do to see an increased benefit from these marketing efforts. Conversely, is there anything you’re doing now that might undermine the effectiveness of your message once customers come into the shop? By taking some simple measures, you can ensure that when customers arrive, your service department reinforces the messages sent through your marketing.
Inform everyone on your staff about the mailer, including details about the offers and limitations. Your marketing partner will send you a packet of extra copies of the mailer, as well as a laminated copy to post in the service drive. Don’t leave that box in the corner of your office to get buried by seven other things before the week is out. Pull out those extra copies and share them with your entire service staff to ensure everyone is well-informed.
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Posted in: Best Practices, Customer Retention, Uncategorized
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