Automotive marketing centers on understanding what your clients are most interested in and how your dealership can meet or exceed those needs. You know that most people who enter your door are looking to buy or sell a vehicle, but do you know their other motivators? Learning the answer to this question can help you incentivize your offerings strategically to attract and retain the business you need.

Keep in mind that these specific promotions are typically rolled out separate from those offered by automobile manufacturers to consumers. In these programs, price incentives usually take first place. For instance, one manufacturer might announce an incentive of up to $5,000 per vehicle. For those buyers who choose to read the fine print, this often means cash back at the time of purchase, specialized financing plans, pull-ahead offers on leases or money applied toward down payments.

At their crux, these advertisements speak to a buyer’s aim to save a few bucks on his or her next purchase. However, the reality is that while some consumers will jump at these opportunities and they can prove valuable in helping dealerships move vehicles and keep inventory levels in check, they don’t appeal to everyone as not every buyer is chiefly motivated by money. This is especially the case with the Millennial demographic, which research shows won’t haggle for the lowest price on a vehicle and instead prefers fixed list prices. ​​​​​​​

Marketers in this industry are now able to understand and reach their target audience than ever before. With access to data that reveals the lifestyles, buying patterns, interests and goals of almost everyone who passes through our doors, we’re better able to create customized marketing initiatives that cater to those individual needs. While cash might be a top motivator, it’s far from the only one. Here are a few ways individual dealerships can up the ante and encourage interest through personalized promotions.

Dealership/Manufacturer Test Drives

It’s not uncommon to find dealerships with managers split cleanly between two sides of the fence when it comes to test driving. On one hand, some believe that simply getting people in the door is the most important step of all. Even if they’re not ready to buy or are just browsing, it’s worth the investment of time to let them go on a test drive. Then, there are those who think only qualified and prepared buyers are those who should get that privilege.

To this end, some test drive promotions are offered through the manufacturers themselves, while others are determined on a dealership level. Though there can often be agreed-upon partnerships that include price splitting and profit margin sharing, it is still essential to ensure that these promotions are attracting the right demographics of buyers. Often, dealerships will couple their test drive promotions with post-purchase incentives to get a clearer picture of what motivates prospective buyers to make a decision.

In-Person Incentives

Though test drives are often offered to customers in partnerships with manufacturers, it is also possible for dealerships to offer their own promotions. These are usually in the form of travel incentives, cash, branded merchandise and more. These programs usually see a valuable deal of success, as they allow managers to take a more personalized and controlled approach to the marketing rollout, rather than being bound by corporate-level oversight.

Not sure where to start in your effort to drive sales? Look at what others in your community have done and which programs have proved successful. Keep in mind that while these types of programs might require an investment of time and money up front, they may catch the eye of manufacturers on a higher level, who could ultimately choose to roll out a similar campaign on the national level.

While you may be tempted to lower prices all around in an effort to drive foot traffic, consider what else you may be able to offer interested buyers. Is your service exceptional? Can you hire a team dedicated to transporting vehicles to and from service procedures as an appreciated extra touch? Could this same team take care of scheduling maintenance and repair services? Could your dealership offer a friends-and-family discount to those who refer your services to their loved ones?

These are just a few ways your dealership can stand out above the competition without necessarily giving away vehicles just to stay relevant. Even branded merchandise can be an added-on incentive to encourage someone to stick around a little longer. Today, there are myriad resources you can tap into to find generic items that can be quickly personalized with your dealership’s logo, tagline and more. Not only are these promotional items an inexpensive form of advertising, but they can help build buyer loyalty in the process. 

Measuring ROI on Incentives and Campaigns

While there are programs in place to help automotive marketers track the success and effectiveness of their incentives, finding a true ROI can be difficult to calculate. A chief reason why? If you’re measuring and basing your success strictly on who buys a car during the promotional period, you’re not taking into account who was impressed by the program and might buy in the future. Nor do you know who went home and told their relatives and co-workers about the great experience they had at your location.

Ultimately, finding out what appeals to your customers and how to use that to your dealership’s advantage lies in listening to them. Determine what they’re looking for, why they’re at your location in the first place and what they hope to get from the transaction. Only then will you be able to customize the offers you put in front of them to encourage them to take that next step forward.