CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
Here’s a reality check. You have the same new cars as your brand competitor, and you are all competing for the same car buyer’s attention. How can you differentiate yourself from the competition and convince that buyer to come to your dealership?
In large cities, there can be as many as ten dealerships selling the same new cars. For example, the small city I live in has four BMW dealerships. Los Angeles area has eight, Atlanta area has three and New York City area has nine. If a car buyer lived in any of those cities and wants to buy the same black M6 Grande Coupe with red Nappa Leather, which one of those dealerships should they visit?
All dealerships can order the same new cars from the factory and all vying for the attention of this car buyer. So the question is:
What can you do to make sure the buyer comes to your dealership and not your competitors?
Successfully differentiating your dealership can make the difference between selling more cars, or losing valuable market share to the competition.
Let’s go over how this can be done.
Driving to work, I heard countless advertisements on the radio about dealerships talking about the best selection or lowest prices, and I think to myself “They can’t all be right”. And when this happens, people tune out or – worse – they completely mistrust this message. In that case, you’ve lost.
What you need to do is some customer research and find out why they come to you and why they buy from you.
After a successful sale, make sure to do a win analysis. Get your team to ask these questions:
Keep in mind that your sales team may, or in many cases may not be, the right people to ask these questions. You may want to ask these questions by way of a follow-up phone survey. Do this as part of the call that you make a few days after the sale – you know, the call that you are making to ensure your customer had a great experience and that they are not suffering from buyers remorse (you are making that call – Right?). If you have a marketing team member on staff, they are likely the best candidate to carryout this process.
Once you have about 30 or more responses you’ll be able to find trends in the answers provided. These trends will provide you with unbiased input on why people like your dealership and will provide you with differentiators based on what the market actually feels about your dealership.
This gives your message much more resonance than something simply made up in a board meeting, and will attract more people like the ones that have already bought cars from you.
Now that you have found out why people truly come to you, it’s time to distil those findings into a succinct message that buyers can relate to. When creating a message, try to keep these things in mind:
By creating the right message, you’ll be able to communicate your strengths in a way that resonates with more car buyers. This in turn, will attract more shoppers and – ultimately – help you sell more cars.