With the cost of marketing in sales rising in turn offering dealer’s thinner profit margins – is service the way to capture new business by spending money on fixed-op's advertisements?
When is the last time you Googled your dealership by typing “oil change in (enter your city)” looking to see if your dealership even pops up?
Chances are your dealership did not populate in the Google search. Instead, major service centers like Pep Boys, Midas, & Jiffy Lube to name a few were the center of attention.
I can already hear the argument:
“these are not all OEM customers searching for servicing their vehicle. So why would I spend to market to them.”
The customer might not have bought from your OEM, but if they see that you are offering a competitively priced oil change that is cheaper than the big guy then it gives your store a shot. A shot to not only service their vehicle but to gain a potential new sale. As s/he might not have considered the possibility of getting into a new, safer, car.
A customer searching to service their vehicle is looking at prices, reviews, and convenience. So, If your store offers all the above then why not use it to your advantage?
The best way to ease into the campaign concept is to provide a “package” of sorts such as the “winter package,” which allows the dealer to offer a low-cost package with a high markup. Or for those dealers that are a bit more daring and aggressive - provide an oil change offer that is competitive with the local shops in town.
This new perspective on marketing offers a new means of increasing revenue in an already profitable department. In addition to the opportunity to sell the customer a newer vehicle.
Does your store pay for fixed-ops marketing? Have you had success with paid service conquest marketing?