If there is any industry that always supports new retailers, it’s the auto industry. There are well over 250 million vehicles on the road in the United States alone, and just as many registered drivers.
With so many drivers and car owners, auto dealerships also have plenty of competition to deal with. What is it that makes some auto dealerships successful while others fail? Here are some keys to success as an auto dealer:
Standing Behind the Product
Selling lemons is not only bad for business but can also be illegal depending on the severity of the car’s malfunction. Because of the extremely high cost of vehicles, selling anything that is subpar will undoubtedly result in poor reviews, and that can cost a dealer a lot in business.
Customer-Centric Approach
You should have identified your target audience when you started your dealership. Consider what it is that this crowd is looking for, and stock that. If you sell in a bustling urban area, filled with young professionals who live in apartments with street parking, you probably won’t sell a lot of big SUVs. However, if your store is located in the family-friendly suburbs, that may be just the thing.
Efficient Sales Pipeline Management
Effective dealerships have a company-wide commitment to accurately managing the sales pipeline. This means that CRM is up-to-date, and both sales managers and reps on the sales floor have a realistic picture of where they stand versus quota, and what they need to do to meet a quota.
Effective Hiring
Unfortunately, the world of car sales has gotten a bad reputation over the years due to pushy salesmen who only care about getting their commission. Be sure that your team is genuinely interested in helping people meet their needs, and that they aren’t just driven by earning big checks. This will improve your company’s reputation as a great place to shop and will encourage great reviews.
Realistic Goals and Expectations
It’s always a good idea to have very specific sales goals that are measurable and time-based. Giving a sales team one month to increase sales by 5% is a lot more achievable than telling the team to “get their numbers up this year”.
Pay close attention to unique advertising options
Consumers today are good at tuning out things like radio ads, and many never see TV commercials these days thanks to streaming services. Consider things like social media advertising, PPC and SEO advertising, or even print ads. Ask your customers what brought them into your store so you can get a good idea of what types of advertising are working for you.
Prioritize Repeat Customers
In the auto industry, repeat customers aren’t nearly as valuable to most dealers as new customers. When someone has a brand-new car, why would they be back very soon? But consider keeping your customers engaged with coupons for car washes or mailings about new and improved versions of what they own. You worked hard to win their loyalty once, don’t let it go once you have it.
These tips can help you succeed as an auto dealer so you can take advantage of the billions of people out there in need of a great ride.