I have been in the advertising business for many years and spent a large part of that time at all the different levels of automotive advertising. If I had a nickel for every time I heard “Car Dealers don’t need Brand Advertising!”, well, I’d have a lot of nickels.
Prevailing opinion is that branding is the function of factory messaging – something the manufacturer is responsible for – and the purpose of local dealer advertising is sell, sell, sell! To a large degree, that is true……..but…….how dealers sell is where the real opportunity to distinguish themselves from the rest of the crowd and make significant – long-term – improvements to the bottom line.
Beware the Informed Customer
It wasn’t too long ago that the customer had no way of really knowing if they had gotten a good deal on a new car. Dealers had all the information and kept their “pricing” cards close to their vests. It was not uncommon that dealers would not even negotiate over the phone, forcing customers to scour newspaper ads and drive all over town to try and get the best deal. At best the customer might have an idea how much Tom in accounting had paid for his new car, but who knew if that was a good deal. With the prevalence of information on the internet, it’s now possible to know how much a car should cost and to shop several dealerships and other buying options without ever leaving the den.
Many dealers rely on price as the main message they use to get customers interested in their wares. Short of bait and switch or up-selling customers in other areas, the price of new cars should be about the same from one dealership to the next. Also, the playing field is more level now than in a long time – there are a lot of quality vehicles to choose from these days. So what then allows the cream to rise to the top? Brand.
You’re only as good as your last sale
If the dealer’s messaging and reputation relies on only the sale, then they are only as good as the last sale – there’s no lasting reason for a customer to shop there. An argument could be made that by selling based on price a dealership can establish themselves as the low price leader. Again, there is some truth there but don’t think for a minute that the Walmart customer will not walk across the street to the CVS to save $1 on diapers. To be the low price leader, realize that you have to have the lowest price, all the time and that margins or reputation may eventually suffer. Price is not retained nearly as long as image lingers. Selling based on price alone is not an advertising strategy that supports long-term relationships.
What Keeps You up at Night?
Two words – serious recalls. Let’s face it – it’s out of a dealer’s control. Serious product safety recalls can happen to any dealership. What is going to counter act the negative impact of manufacturer based issues? Only your brand. How customers view your dealership can to some degree absolve you of blame.
What Really Matters
One of the larger and more successful dealership groups in the Atlanta, GA area recently commissioned a customer research survey that revealed the most important criteria in selecting a dealership were………..
Customer service
Availability
Price
Communicating that criteria sounds like branding to me – and not factory branding either. We’re not talking about the customer service experience a customer will get from Chevy or Dodge – we’re talking about the customer service experience a customer will get from YOUR Chevy or Dodge store Mr. dealership owner. Availability, once again, not a factory message: customers want to know that YOUR dealership has plenty of what they want. That’s not really all that surprising when you see the forest and not just the trees.
This may require a huge change in mindset and have a deflating effect on the blow up gorilla business, but what attracts customers to your dealership is your brand. Does the customer know your dealership is somewhere they will be treated respectfully and fairly before they ever step foot inside? Will they feel comfortable doing business with you? Is your dealership in the business of developing long-term relationships? Will they be supported in every aspect of the transaction from selection to pricing, financing and maintenance? If that’s not what you are telling your customers, what do you expect them to think of you?
Building a solid brand image as the base from which you launch all of your messaging establishes your dealership as somewhere customers want to shop. Your brand is one that people want to be associated with – it can go so far as to be a status symbol and brand out lasts all else.
So, how do you build a brand?
It’s no surprise that the Atlanta dealership that cared enough to invest in a customer research survey has a great brand image in the market. People expect to be treated professionally, fairly and have a good shopping experience there. The group has accomplished this by consistently advertising their key attributes in all the messaging. That’s not to say price is never mentioned, as a matter of fact – it is mentioned often (remember, price is in the top three customer motivators). However, price is included on a platform that establishes that customers will get a good price at a great dealership that they can count on. That is worlds apart from a message that’s just a good price.
Branding for dealerships is markedly different than the “come in now”, “everyone rides away in a new car”, “sell-sell-sell” which is pervasive in dealer advertising. Recognizing the value of a core brand for your dealership may require a huge change in mindset. The weaning away from the hood pounding and flashy antics is the next logical step in the evolution of selling to the informed and time-crunched customer – the days of a dealership thriving without a brand is going the way of Yugo.