New targeted marketing strategies available for dealerships
Dealerships are looking for new ways to source inventory, sell cars and meet customer needs. Data can be the key to answering and capitalizing on these questions.
Traditionally, dealerships invested millions of their marketing budgets in lead generation tools to help drive showroom traffic. This method of targeting from their own CRM or DMS can often lead to overlooked opportunities to conquer beyond their brand or prospect customers in the market to a new pool of potential customers.
Mitigating the lingering effects of lingering supply chain issues and a reduced inventory environment requires new and innovative strategies.
The ability to accurately target consumers with the highest statistical probability of transacting, such as non-lease consumers, while supplying the used car department with late model and low cost used cars. mileage is essential.
Many dealerships continue to ease spending and marketing plans due to inventory supply issues. As marketing budgets have shrunk, dealer investments are vitally important to maintain their presence and brand image. Effective brand advertising to the right audience can increase a dealership’s share of voice in the marketplace, generate more brand interest, and ultimately help find the best customers to pair with vehicles right from the start. as inventory becomes available.
According to the National Automobile Dealers Assn., in the United States, retail gross profit per new vehicle averaged about $3,928 for 2021, while used vehicles averaged $3,651. $ per unit. To continue to sell vehicles and achieve these levels of profit, sourcing the right inventory is a central strategy for success.
While dealing with market pressures and challenges, dealerships must find ways to evolve their marketing strategies, such as working with partners that leverage new approaches to using differentiated anonymized data assets and scores. unique propensity tools to identify and target “just in time” buyers – individuals who qualify for credit and are most likely to buy a vehicle now.
Non-lease customers are valuable targets for dealerships to source inventory for their used car departments and also sell newer models. Recently, some dealerships tested a new campaign approach to capitalize on off-lease audiences through coordinated communication that mixes mail and digital targeting served as early as 12 months before lease end. The results of this type of campaign suggest that 50% of consumers who rent vehicles will rent again with the same brand/dealer. This leaves the remaining 50% of the non-rental customer pool as the ideal target audience for conquest efforts.
Using this approach, dealerships, in coordination with partners, created new audience models to identify high-probability customers with the highest statistical likelihood of switching to new cars. Dealerships can further improve their “perfect time” strategies by prioritizing consumers with a higher likelihood of loyalty and greater overall lifetime value for their dealership. This can ensure that dealerships have the most accurate list of qualified customers to target, providing a new strategy for winning over different brands when vehicles are no longer on lease.
The right message is just as important for the right audience, as consumers look to brands for their trustworthiness in times of uncertainty and reward those who meet their needs. For these reasons, dealerships have shifted their messaging to emphasize customer service, tapping into consumers’ desire to be supported by trusted brands.
To achieve this, dealerships and their partners must leverage advanced expertise in extended data assets to improve personalization and engagement in the right channels with their preferred audiences. They also combine offline data to target online consumers through important touchpoints such as over-the-top, social and display, enabling a more holistic marketing approach and building consumer loyalty.
With these new strategies in place, dealers and their partners will be well positioned to thrive in today’s challenging environment, while being well prepared for the return of more normal inventories in the future.
Angelique Jeffreys (photo, top left) is a visionary sales leader and senior automotive financial services executive at Equifax. Scott Flecher (photo, left) is co-founder/partner of Team Velocity, which offers technology that digitizes the process of buying and owning a vehicle.