[Posted November 27th, 2013 by Keith Shetterly]
Expanding the competitive advantage in the automobile industry can be a challenging situation for many car dealerships. Referral marketing has long been the standard for many car dealerships as it helps to reduce the difficulty of finding a particular customer with an interest in the vehicles on the lot. One effective way to improve the competitive advantage of your car dealership is to consider using equity marketing services.
What is Equity Marketing?
Equity marketing can help to improve the success level of the company. A number of dealers have found equity marketing to boost their profit margin as this marketing program helps to show the value of the brand names. Customers are able to associate the manufacturer names to the cars on the lot, giving them a perceived value based on the name. The other aspect of equity marketing is establishing relationships with customers. Different types of customer segments will have associations with the brands, and their word-of-mouth marketing can assist in revenue building for dealers.
When a dealer switches to equity marketing, they often find that the best cars to have on the lot are the well-known brands. These brands usually command higher sales prices based on their reputation. The brands that are newer or not as well-known tend to make car buyers skeptical. However, the lower cost of such vehicles can generate interest from a market segment that has less to spend on a new car.
The branding process of the cars is done by the manufacturers. The branding of the car dealer is important to build a reputation in the area. Branding services allow a company to show the customer they are a trustworthy organization. Customer reviews of their experience with the car dealership can be invaluable to a company. The marketing efforts currently being done must undergo strict evaluation to determine how a company can expand their market reach. Finding a new segment is important for sales figures.
Helping the Sales Team
When a customer walks onto a car lot, they usually have a specific goal in mind. The sales team has to understand what the customer is looking for, and find the best way to help them find it. Using equity marketing can help a sales team as there are follow-up procedures that help to attract the right customers. Tracking the status of leads, and finding a way to keep them interested is a critical aspect to making a sale. Bringing the right people to the car lot initially makes the entire sales process easier, and reduces the amount of time a sales team member spends per customer.
It is important to use the right marketing techniques to identify a niche market, and understand how to reach them. Obtaining true data about a market segment will help a dealer to send out timely promotions to customers. Taking the time to understand how to use equity marketing for your dealerships can have tremendous benefits to both the dealer and the right customers seeking new cars.