[Posted January 22nd, 2014 by Keith Shetterly]
What is equity marketing? Simply put, it is the act of capitalizing on the incredible potential of past sales. Using equity position management software can help you, as a dealer, take advantage of the power of these sales and increase your own profitability.
Selling the Brand
When someone already has one of your brand of vehicle, it can be easier to get them into a new model. In fact, a recent poll reported that 48 percent of individuals who are buying a car are looking at the same brand they currently own or have purchased in the past. Further, those customers who already own a vehicle want to be sure they get the maximum trade-in value allowed for their cars and will do a bit of shopping before they settle on a new vehicle and a new payment. Because you already have a current customer base, it makes sense to target this group of potential buyers with equity marketing strategies. When you tailor your marketing to the needs of these customers, you will find that your equity sales begin to rise and you build even stronger customer loyalty to your brand and to your dealership.
How Do I Target Equity Customers?
The first step in targeting your current customer base is to manage the information about that group of people. Your former customer list may be very long, and it is difficult to make sense of this information if you are using outdated methods to reach these customers.
Equity position management software helps you target previous customers quickly and effectively. With equity position management software, you can build strong relationships with your existing customer base through a variety of techniques, including:
Do you have customers who are in a positive equity position with their vehicles? If so, target them for a buyback marketing plan. By offering them top dollar for their vehicles, you entice them to take a look at your new offerings and feel good about their trade-in at the same time. Furthermore, buyback programs help you develop a strong used car inventory and increase opportunities to promote your service department.
Utilize Multichannel Marketing
It is not enough to simply use a radio or television spot anymore. Today’s buyers can find dealer information from any and all sources, including email, the Internet, phone calls and other means. If you are not competing through multichannel marketing plans, you are probably not going to be as effective at identifying and attracting future buyers as your competitors. Even more importantly, your equity customers are being lured by others through multichannel marketing ploys, so it is important for you to get your message to them as well.
Help Customers Reduce Payments
When all is said and done, reducing payments is the single most effective way to maintain a loyal customer base. When you can help a client lower his or her payments and stay in one of your brand of vehicle, you have laid the foundation for a loyal customer relationship that will last many years.
Equity position management software can utilize multi-channel marketing techniques to target your equity customers. With showroom sales appointments and other convenient ways of setting up contact with your current customer base, this software boasts 70 percent higher customer contact rate than average dealerships with a 65 percent average survey completion rate. Best of all, equity position management software can help you set up appointments at a rate ten times higher than that of direct mail alone.