There are a lot of things that go into having a successful car dealership. Many owners and managers are so focused on what has worked in the past; they may be overlooking what could be done to make things better in the present and future. There are many things that can be done to improve how a car dealership approaches customer acquisition, online presence, customer engagement and more. There are at least three areas of operating a car dealership that can always improve.
1. Customer Acquisition
It's possible to increase the flow of customers without focusing so much on the price of a vehicle. It is very common for dealerships to emphasize their low prices, special incentives, rebates and more. It's also too common for car dealerships to not recoup the costs of advertising this to customers. The problem is that most car dealers advertise the same things. When this happens, customers can't tell if there is a difference between car dealerships. It may be time to focus on what a person or family needs and how a particular vehicle can meet these needs. The size, safety features as well as durability and more can attract more customers. A salesperson may not want to focus on the price until a customer realizes how much they need a particular vehicle. The focus should be in finding the needs of a customer and then finding a vehicle that will accommodate those particular needs. This also involves knowing the demographics of the customers who will visit the dealership. If the largest segment of customers in an area are parents who have children on their own, a plan can be created to attract these parents. This could involve letting these customers know how they could benefit from a smaller vehicle. The dealership should provide a special deal with large vehicle trade-ins as part of the plan.
2. Online Auctions And Websites
It's possible with many car dealerships that they don't realize the full potential for online auctions and how these auctions could benefit the dealership. When this is done correctly, a car dealership's customer base will quickly expand into other counties, states and sometimes other countries. A car dealership needs to develop an effective method of shipping or promptly delivering the vehicles that are purchased in this way. A car dealership will soon learn the costs involved with selling vehicles with an online auction or through a website is much less than using traditional advertising methods. When a vehicle is listed on a website or an online auction, it will be seen by much larger numbers of potential buyers. Once a car dealership learns the best keyword searches, they will be much easier for customers to find. Studies have shown that selling vehicles online in much less stressful for the buyer and the seller. A virtual bookkeeping company can also be a benefit in this situation. Dedicating resources to online selling will not require a lot of energy or effort to succeed. It is estimated the automotive industry in the United States will spend an average of over $7 billion for digital advertising. That is expected to increase to over $12 billion by 2019.
It's important a car dealership attempt to discover new and different ways to stay engaged with customers. This could involve everything being able to project an image of a customer driving a car that has their interest onto their phone or provide a reward for a test drive and more. It's now possible for a salesperson from to have a face to face meeting with a potential customer using the internet. The customer could be in their home, office or a coffee shop and more. With smartphone technology, a salesperson can actually show a customer desired features of a vehicle without them being in the showroom. This is successful when the salesperson understands what events are impacting a customer's life. It's important to know if they're single, have a family are self-employed or work long hours. This information can be used to accommodate what a customer needs to happen for them to purchase a vehicle.