[Posted May 1st, 2014 by Keith Shetterly]
Equity marketing is a term used by automotive dealers to describe the type of marketing in which sales staff “mine equity” in existing customer relationships. Simply put, this means using the information you already have available about a customer to tailor a new deal to his or her needs, making it extremely tempting. Equity marketing efforts tend to have a higher success rate than other forms of marketing such as cold calling.
How Does Equity Marketing Work?
Equity marketing in automotive terms generally involves those who have either purchased from the dealership in the past or at least owned the make and model in question. However, equity marketing is not completely limited to the same type of vehicle each time. Many dealers can capitalize on equity marketing techniques to move a customer up to a newer or bigger vehicle.
Software that takes advantage of equity marketing practices is important for any dealership. At a minimum, the software should compile information about the customer’s former buying habits, his or her price range and the service history of the current vehicle if possible. This information allows the sales staff to target the buyer with laser precision for manufacturer discounts, trade-in opportunities and other perks that may convince the customer to trade or buy from the dealer.
Equity marketing not only benefits the dealership in terms of new sales, but also through trade-ins of desirable vehicles. If customers have vehicles that typically have very high resale values, dealerships can focus on those buyers to push trade-ins and give special discounts and advantages. With this type of information, the dealership can not only improve sales but also benefit its used car department as well. When you have a large stock of desirable used vehicles, your new car sales also tend to improve in a cycle. Starting that cycle off by getting customers onto the lot to buy cars they want is the basis of a great sales strategy, and CRM software can help you achieve that goal.
How Can I Take Advantage of Equity Marketing Through CRM Software?
In many cases, the right suite of marketing tools can help a dealership follow up with prospective car buyers more effectively than other methods. For example, if a person comes in to browse the cars on the lot but does not purchase, the right CRM or customer relationship management software can track that person and ultimately help the sales team close the sale.
CRM software offers dealers the opportunity to tap into every aspect of customer relationships with a dealership. Whether customers are looking on the web, calling by phone or visiting the dealership in person, a good CRM software suite manages all customer information so that the sales staff, the service staff and all managers can instantly find information about the individual that will help them serve his or her particular needs.
Equity marketing software can help your dealership achieve great new sales goals and more effectively use all of your customer information to market your inventory. CRM software can help you manage customer relationships with both old and new customers and ultimately benefit your dealership in every aspect of sales and service.