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.
The Importance of Adaptability and Control: Why you need both in Service.
January 27th, 2012 | Written By: Chuck PattonWhen to use you vs. Why to choose you
January 27th, 2012 | Written By: Chuck PattonThere’s a new trend on what philosophies dealership’s should use to drive customer retention for service departments so they can maximize service profit and ultimately retain customers. The trend is a so-called smarter marketing that is based on an data algorithm. The theory basically professes that advanced data logic will be used to market to the customers with the right message, at the right time and to the right person in order to drive in service traffic for less cost. You are essentially only marketing to the customer when their vehicle is due for service.
This strategy sounds great, but it’s an important trend to monitor before making the jump. Many manufacturers’ service programs are heavily promoting this “right-time” strategy and if you are on one of those programs or if you are being pushed towards one, it is important that you understand the pro’s and con’s.
The Targeted Approach
August 29th, 2011 | Written By: Eric JohansenAuto service departments have become havens for the newest hybrid technologies. With the introduction of each new model there exists proprietary information specific to that vehicle. Furthermore, most new vehicle warranties require that customers must have their vehicles serviced at an approved manufacturer dealership in order to maintain warranty status. And while this ensures that customers service at the dealership instead of the aftermarket, it remains that that they often have several choices within their area as to where they will take their vehicle for service.
Using a comprehensive strategy to improve ROI and promote dealership value
June 22nd, 2011 | Written By: Traffic BuildersChallenge
A Ford dealership, in a top 25 market, wanted to avoid its service being viewed merely as a commodity. Service marketing here had been Ford-focused with no real difference between the national brand and the individual dealership. The dealer had a reputation for quality expert service, but this wasn’t able to be communicated in their manufacturer-crafted marketing. Even though they did not have the newest facility or amenities, they felt their highly skilled, friendly technicians knew how to project value and confidence with customers.
Similarly, this dealership wanted a marketing partner who shared their personal-touch philosophy. Other marketing companies they had worked with in the past were absentee and difficult to work with. Furthermore, the service manager wondered how someone who had never visited his dealership could really help him improve repair order traffic. He wanted a marketing partner who would manage his service advertising effectively so he could spend his time with customers on the service drive. Read Full Post »
Marketing Your Value: Are You Worth the Price You Charge?
May 18th, 2011 | Written By: Chuck PattonThe 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?
Turning a Lemon Service Department into Lemonade
June 27th, 2010 | Written By: Eric JohansenAutomotive service managers are always trying to find the right combination of marketing tools and successful business practices to maximize profits. A dealership that has made a lot of wrong marketing and customer service decisions can be a challenge to turn around. Word gets out. So, how can a historically underperforming service department with a bad reputation be transformed into a champion?
One answer can be found in a success story that occurred recently in a southeastern U.S. market. There were two dealerships in close competition in the same metropolitan area. They had very different business philosophies and marketing plans that produced starkly contrasting results.
One dealership was an established business that valued the long-time relationships that had been built with their customers. They had a well-executed marketing plan that included mailers and reminder letters. They created value by consulting with customers and up-selling only services needed without regard to monthly sales goals. They knew that when their customers’ vehicles needed other services, those customers would be back. Their customer relations were as good as gold, and the repeat business was like money in the bank.
Mid-year Evaluation of Your Automotive Marketing Strategy
June 3rd, 2010 | Written By: Chuck PattonIt’s time for a mid-year review. Remember the automotive service marketing objectives you put into place at the beginning of the year? How are they working for you? Are you on-track to meeting your goals? Are you ahead or behind where you wanted to be?
Depending on the answers to these questions, you may want to consider making adjustments to your marketing plan for the second half of the year. As you take stock and plan your next six months, consider the following areas of opportunity upon which you can capitalize.
Retention—The retention measurement that makes the most sense is the one that measures the share of your customers’ business within a year. Start by separating your customers into the following categories:
- Number of times your customers have come in during the past 12 months
- Number of customers doing all their service with you
- Number of customers added in the last 12 months
What are you doing to retain your customers? Are you providing the best service in the market and going the extra mile to keep your customers happy? Consider loyalty programs and perks to show your commitment to a long-term relationship.
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Working Together as a Group to Improve ROI
April 20th, 2010 | Written By: Chuck PattonRecently I had a perfect storm conversation with a general manager of a dealership group. This dealership not only had their GM store pulled but also their Dodge store. The stores were turning a profit, had great customer loyalty and were moving cars. Overall there were about 17,000 customers in the database that were affected. The dealership was devastated.
The silver lining was this dealership had been investing its marketing efforts into a group strategy. Even though they had gone from eight dealerships to six and lost two of their strongest stores, the dealership had its own brand value to fall back on. This value helped retain employees, provide their community with long-term solutions and avoided putting a family-owned operation of 40 years out of business. The lesson that dealer groups like this have learned is that there is safety in numbers when marketing your stores as a group.
Where are the opportunities?
How can we find safety in multi-point numbers? How can I take advantage of the power of my dealership group to achieve more than I would as a single point?
Opportunities unique to group dealers fall into three categories:
