Section 5: Recommendations for Dealership Owners/Managers

Embrace the Shift Towards Online Sales and Marketing

Dealership owners should acknowledge the increasing role of online platforms in automotive sales and marketing. It’s projected that automotive sales will return to pre-pandemic levels, with significant growth in the EV and Hybrid sectors. To leverage this growth, dealerships should invest in digital marketing, as 66% of car buyers use online tools for research. Dealerships should increase online sales strategies, considering 80% of car buyers still prefer in-person dealership experiences for final transactions.

Enhance Mobile Marketing Strategies

Given that 92% of car buyers research online before purchasing and that mobile ads significantly increase dealership visits, dealerships must optimize their mobile marketing strategies. This includes targeted mobile advertising and ensuring their websites and digital platforms are mobile-friendly.

Utilize Video Marketing Effectively

Video marketing, particularly on platforms like YouTube, significantly influences car buyers. Dealerships should produce high-quality videos, including test drives, feature highlights, and car walk-throughs, as these are the types of content most viewed by potential customers.

Implement 24/7 Customer Support

Improving response times can significantly enhance customer experience and dealership reputation. Dealerships should strive to provide quicker, more efficient responses to customer inquiries, given the gap in current response times.

Develop Integrated Mobile Apps

Creating branded mobile apps can increase customer loyalty and dealership revenue. Such apps can facilitate more purchases and service appointments, offering a streamlined experience for customers.

Leverage New Technologies for Targeted Marketing

Advancements in data insights and mobile technologies enable dealerships to target potential buyers more accurately. Techniques like real-time location targeting and mobile IDs can identify in-market buyers, leading to more effective marketing efforts.

Focus on Life Events for Target Marketing

Targeting customers based on life events, such as moving, can be highly effective. New movers are generally open to exploring new brands, providing an opportunity for dealerships to attract new customers.

Invest in Email Marketing

Email marketing remains a powerful tool with high ROI potential. Personalized email campaigns can effectively engage potential buyers and existing customers, particularly when tailored to their preferences and behaviors.

Increase Digital Marketing Ad Spend

With digital ad spending in the automotive sector on the rise, dealerships should allocate a significant portion of their advertising budget to digital platforms to maximize reach and effectiveness.

Explore CTV Advertising

Connected TV (CTV) advertising is growing rapidly, offering a new avenue for dealerships to reach potential customers. This form of advertising allows for more precise targeting and measurement compared to traditional TV advertising, making it a valuable addition to a dealership’s marketing mix.

Navigating the dynamic landscape of dealership advertising requires a multifaceted approach. By embracing online sales, enhancing mobile and video marketing, leveraging new technologies, and focusing on targeted and personalized marketing strategies, dealerships can maximize their ROI and stay competitive in a rapidly evolving market.

Sources

Porch Group Media – 17 Automotive Marketing Trends for 2023
Designity – 8 Best Automotive Marketing Strategies for Dealerships