Dealership Marketing Tips

Marketing is a business function that nearly every general manager or used car manager I’ve ever met thinks they perform at a superior level, yet very few do.

I have an actual bona-fide college degree (from a pretty respectable institution) in marketing, over two decades in the used car industry, and I’ve run several marketing companies. But, I am the first to admit that I have a lot to learn and I always let the numbers guide me, not “my gut”.

Having a successful marketing campaign requires three key steps.

1- Have a Plan

Don’t just follow the marketing/advertising plan that your predecessor used. Every GM and used car manager brings with them a mound of mental baggage about what is successful and what is unsuccessful marketing. Unfortunately, we all fall back into familiar traps when it comes to spending our precious advertising dollars.

All marketing plans should be specifically tailored to your dealership, and every dealership is unique. A highline import new car franchise operating in a large metropolitan area will have a different customer and should take a different approach than a small town buy here/pay here dealership.

Yet, most car dealership marketing is identical. There’s the weekend newspaper flyer, the AutoTrader ads, the radio spots that all sound indistinguishable from all the rest. We will deal with specifics of a proper marketing plan later, but in the idea phase, the most important part of a successful marketing plan is to BE BOLD. Don’t just go along with every single play from the Used Cars 101 playbook. Write your own plays.

No matter the structure or location of the dealership, and no matter what marketing steps you choose, there is one crucial piece that is the key to your success.

2. Track, track, track!!

The key to marketing success is to properly measure and track every component of your marketing plan.

Marketing companies will approach you and your dealership, and many of them during their pitch will tell you that the services they provide can’t necessarily be tracked. They will tell you that your dealership is creating an overall impression in the customer’s mind and that can’t have a value placed on it.

If you hear that pitch, throw them out of your office immediately. It’s complete nonsense. Every marketing dollar you spend should result in over a dollar’s worth of business. If not, your marketing/advertising plan has FAILED!
Remember, every dealership situation is unique. I don’t know if TV advertising is the way to go, or perhaps live events like a Slasher Sale may be more appropriate to drive sales. But, I know this, the results can be measured, compared, and the highest money generator can be repeated and the money losers can be eliminated.

For your customer base, there is a magic combination that will get them into the door and have them excited about buying a car. It might be the words “Guaranteed Credit Approval” that are used in a radio ad, or it might be the humor you used in a print ad that set you apart from your competition. But no matter the recipe, each and every aspect and dollar spent on advertising must be tracked and compared to sales or other pertinent data.

3. Execute and Change

Your dealership needs to execute on your marketing plan. This means being prepared for incremental increases in business. For example, if you have a big push set up for the 4th of July, make certain your inventory and staffing levels are appropriate.

You must execute the tracking portion also. If that means hiring another front desk person who does nothing but track what advertising campaign brought customers in, then hire a person, or train your sales people to gather this information.

Don’t be afraid to change your plan once you receive enough tracking data. If the data tells you that TV doesn’t work before the hours of 11 PM, then listen to the numbers. If the data says AM sports radio ads don’t return a positive return, drop them, and spend your precious money on advertising that does generate a return.

Make a plan, track the results, execute, and change if needed. Follow these steps or your marketing dollars would be better spent lighting cigars.