LEARNING TO STAND APART FROM THE CROWD OFTEN PUTS YOU IN FRONT OF IT
At Canadian auto dealer, we’ve done quite a bit of coverage on the used vehicle market in the last few years, especially as more dealers are looking to their pre-owned operations as a greater source of revenue, given the fact that in many cases, margins on new cars have continued to shrink. For this article, we decided to change things up a little. We invited Michael Cirillo, founder and CEO of FlexDealer to share his thoughts on the digital side of used vehicle marketing, while also reaching out to some dealers and market leaders to provide additional viewpoints.
Have you ever seen a flock of starlings flying in the sky? At a glance, what appears to be a solid black cloud, is actually a flock of hundreds (if not thousands) of birds navigating the sky in incredible rhythm. Whether you’ve witnessed it in real life or via a screen, the movement is fluid and synchronized, with the birds able to change direction on a dime.
Although it’s undeniably impressive to witness how quickly the birds change direction, I for one have always been curious who, out of the hundreds of birds was actually leading the flock. I could be wrong, but it often appears that each bird follows the wing of the next bird in front of them with no clearly identified leader.
VIEWPOINTWilson Poirer, Sales Manager, used vehicles, Trois Rivieres Honda |
I quickly drew parallels between how these birds moved, and auto retailing in Canada. Having worked with many dealers over the years it became apparent to me that many follow the wing of those in front.
Each dealer is keeping close tabs on their competitor and following suit. Close up, this may seem like a decent strategy for keeping up with what’s “current” in the industry, but from a much more distant vantage point, those birds contained within the flock appear like a big, solid moving mass that’s occasionally changing direction, but never achieving a strategic advantage.
Doesn’t the flock scenario sound familiar? Are you keeping close tabs on what rival dealers are doing, while never really moving forward and dominating your market? Well the secret is, you don’t have to.
VIEWPOINTScott Neil, Managing Director, Autos and Housing, Kijiji |
Let’s take a look at some proven ways that you can effectively promote your used car inventory and champion the market. A key one is paying attention to consumer demand.
Canadians are among the most Internet-savvy consumers in the world. They expect a high level of service online. Every day, millions of Canadians are surfing the web, conducting research, engaging on social media and purchasing products. Consider this: why is it that my family members can find more information online about a $30 T-shirt, than most dealers provide on their used vehicles?
A vehicle is often the second largest investment a person/family makes. If that’s the case, why isn’t the auto industry trying harder to merchandise its products online?
If you’ve got one in close proximity, open up a newspaper or automotive classified magazine.
What do you see? Pictures of vehicles and their pricing, right? WRONG! What you actually see is advertising without an effective “hook.” Without the hook there’s no incentive for the consumer to visit your dealership. Let your competitors waste their money and resources on that, while you focus on building and maintaining a serious competitive advantage.
Price-based advertising assumes that all customers are primarily concerned with price. Research indicates that there are several other factors that are considered when shaping purchase decisions; many of them more important than price! Research also shows that numbers-based ads only cater to 2-5 per cent of in-market consumers, so why are dealers waging a fierce battle over such a small market segment?
Canadian consumers want information, and they want it fast! While your competitors are busy wasting their money on non-targeted advertising, you can focus on getting your dealer website dialed-in with relevant content which addresses a variety of topics.
VIEWPOINTSJoelle Lambert, General Manager, Brossard Hyundai |
An easy way to produce content that your consumers will find interesting is to segment your market. Who are the people purchasing your vehicles? Seniors or young families? Veterans or bachelorettes? A common mistake is grouping everyone into the same bucket. But when you begin to segment these groups, you can learn about the vehicles that best fit their needs and wants.
Remember that people have a variety of other concerns and features they’re interested in prior to considering price, and when you understand your unique market segments, you can better direct them towards the vehicle type that is best suited for them.
If you are a dealer that sells mostly minivans and SUVs, you need to start producing content that speaks to the needs of young families, commercial workers or other individuals who are concerned about having more space, safety, economy and so on.
In doing so, you are still marketing your used inventory, but you are tagging up the RIGHT consumer with the right vehicle type. This will empower you (through your dealer website) to build a relationship with the customer before they even come to your dealership. Get a blog on your website that talks about “The top five vehicles that have the most space and fuel economy,” or “How to spend less on a vehicle that still has lots of features.”
By doing so, you can help shape each market segment’s future purchase decisions.
By providing content on the topics that your market segments find most valuable, you can promote your used vehicle inventory online in a way that matches each unique consumer’s expectations.
Steer clear of the flock.
Now it may seem a little obvious, but do you understand how important it is to know what the individual needs and wants of your customers are rather than trying to follow the competitor that appears to be in front of you?
After all, it’s your customers who pay the bills, not your competitors. You must understand that following the “leader” isn’t sustainable because in the case of Canadian auto dealers, the “leader” may or may not know what they’re doing in the first place. This is why you have a serious competitive advantage to separate from the flock and not just be another starling. By applying the concept of market segmentation and by considering your unique consumer demands, you will not only begin to fly solo, but you will also learn to soar with the eagles. And at the end of the day, that’s where the money is.
