Top 3 Things a Car Dealership Needs to Stand Out from the Crowd
Whether looking for a new or used car, Americans are no stranger to car dealerships. And if you happen to own a dealer, chances are you care about satisfying your customer as much as increasing your sales.
However, the one word that may concern you is ‘competition.’ In truth, the number of car dealerships in the US has only grown since the COVID-19 pandemic in 2020. And according to IBISWorld, there are 17,968 new and 139,723 used car dealer businesses in the US as of 2022. So, if you think you have tons of great deals at your place, that’s probably what the other dealerships a few miles from yours are offering too!
Luckily, despite requiring some effort, there are a few things you can still do to make your dealership stand out from the rest and increase your competitive advantage. Simply put, it’s really a matter of how to make as much as your customers feel merry and joyful with their purchases and potentially retain them for their next buy.
Thus to help you answer that question, listed below are the top 3 things you need to make your dealership as attractive as possible to customers and ensure they are satisfied.
Let’s go!
Train your Customer Service to Focus on the Buyer’s Interests
According to one of Audi’s executives, customer service is easily the auto industry’s best ‘salesperson’. Whether they’re the customer-facing or back-office employees, your workers have their parts in the dealer’s operation that could affect the customer’s buying experience in one way or another. Hence if you’ve been in the dealer’s game long enough, you’ll realize that investing in proper customer service training for your employees is critical.
One trick is to encourage your staff to deliver a sincere and authentic style of customer service. We’ve heard plenty of scripted (and sometimes clichéd) customer service lines of the past, like “What will it take to earn your business?” or “This price won’t last long,” which are quick turn-offs for customers nowadays. Meanwhile, a more genuine approach and an “I’m on your side” attitude are what they’re actually looking for instead from automotive professionals.
Therefore, tell them to be friends with the buyers and listen carefully to what they want/need. Remind them to respect and never dismiss the knowledge and expertise of a customer, especially when dealing with someone who comes armed with Google-derived knowledge. Also, when suggesting a model or options, your employees should let them know they have their best interests at heart.
Give Complimentary Add-Ons
Let’s be honest: customers love free stuff and love to receive as much of those as possible with the price they’re paying for the car. So, it’s your job to do the math and set them up with some pre-installed, low-cost (but pretty valuable) items as complementary add-ons. These items may vary from pre-paid carwash/service vouchers for car care products or common auto accessories.
One great example is including complimentary custom floor mats in the deal. This item has been a necessity for decades, but manufacturers rarely include some as standard (or even when they do, they tend to be a bit pricey). Meanwhile, tons of aftermarket brands offer high-quality custom floor mats at a much more affordable price, especially when buying in bulk. Moreover, having custom floor mats printed with your logo is not only a good marketing opportunity, but will also make your customers feel special and somewhat rewarded for doing business with you.
In short, by paying attention to what the customer needs first and focusing on something as universal as these added perks, your dealership could close the deal in no time and significantly reduce the risk of seeing the customer back out. And when it comes to giving out free stuff, every opportunity to stick your logo on it is also another chance to remind your client of who you are in the future.
After all, it’s very unlikely your client will remember your business phone number or website address (who keeps business cards nowadays, right?) in a year or two. So having it printed on his floor mats is a safe option to ensure he can actually remember it when he needs it.
Focus on your niche
With plenty of competitors, it’s typically easier to gain a competitive advantage by centering your attention on your niche. Satisfying everyone is rather unfeasible for most dealerships, and you’ll be better off focusing on your target customers. That way, you can plan your strategy accordingly and have a smoother road to becoming the best dealership for your target market.
For instance, focusing on the low to middle-income earners means your dealer should strive to be famously affordable, offering great deals at fair prices. On the contrary, if your dealership’s target market is the ultra-rich, you may want to be known for your exclusivity, top-notch service, and rare collections.
Of course, many other dealers are into these niches, so you may need to think outside the box to make yours stand out. A few unique ideas for advertising your dealership could include sponsoring a local racing team, auctioning cars for charity, hosting giveaway events, and so on. You can also take advantage of social media (e.g., YouTube, TikTok, Instagram, etc.) and upload educational videos to gain popularity and strengthen your dealership’s identity.
Last Words
While car sales are on their way to recovering since the pandemic, car dealerships are faced with a new challenge of increased competition. And with the inevitable migration to online car sales, there’s no guarantee that things will get any easier either.
However, while methods are changing, and so are customer preferences, dealerships must try to adapt to all the transitions to survive. Keep finding ways to maintain or increase your competitive advantage, and always prioritize your customers’ needs. After all, being able to fulfill and satisfy your buyer’s demands will always be one of the dealer’s greatest flexes.