Growing market share as an automotive dealer is challenging – it’s tough out there! There are almost 70,000 auto dealerships in the U.S., and that number is growing. Dealers need to find new customers to hit their growth targets.
Here are six ways dealers can boost market share and attract new customers.
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1. Target New Geographic Areas
Look Beyond Your Geography
Expanding your sales territory is a strategic way to broaden your customer base.
Start by conducting thorough market research to identify regions with untapped potential. Nearby cities and towns are a good place to start, as long as you offer these customers a compelling offer to buy from you (free delivery).
You can also develop a conquest email campaign to reach customers who aren’t in your DMS yet.
Affiliate databases allow you to find new customers who share similar attributes and interests to your past buyers. These potential new customers would be ideal for targeted emails.
2. Win Over Brand-Loyal Customers
One of the most effective ways to increase your market share is to target owners of particular brands. These customers already have an affinity for a specific make or model, and you can win them over with the right offer.
Again, a conquest email campaign that is targeted correctly can help you grow your audience. For example, if you’re a Toyota dealer, serving the right offer to Honda or Subaru customers may win you new customers.
It’s a great time for this strategy. J.D. Power’s 2023 Brand Loyalty Study shows that brand loyalty slipped among new car buyers this year, mostly due to increased choice in the market.
Emphasize the unique selling points of your inventory and brands. Showcase how your dealership’s selection provides better features, value, and customer service. With the right message and a sweet offer, you can bring them to your dealership.
3. Lure Your Competitor’s Customers Away
To truly thrive in the competitive auto industry, you can’t overlook the power of targeting owners of your competitor’s brands:
Competitive Analysis
Begin by conducting an in-depth analysis of your closest competitors. If you’re carrying Toyotas and the closest competition is flush with Hondas, that’s an opportunity. Understand your competition’s strengths and weaknesses, and identify areas where your dealership excels.
Tailored Marketing Campaigns
Craft marketing campaigns that specifically address the pain points of your competitor’s customers. Highlight your dealership’s unique advantages and make a compelling case for them to switch allegiance.
4. Target Your SilentVisitors™
The typical car shopper visits 18.5 dealer websites in the research phase before making a purchase. That means only 5% of your website visitors raise their hand and provide a lead. The other 95% of your website visitors come and go, not asking to be contacted. At AutoSweet, we call these SilentVisitors™.
What if you could identify these visitors and reach out to them while they were in the shopping stage of their journey?
5. Geofencing: The Power of Proximity
In the digital age, phone devices near your competitor’s dealership can provide you with a strategic edge.
Utilizing Geofencing Technology
Geofencing allows you to create virtual boundaries around your competitors’ locations. When potential customers with their mobile devices enter this zone, you can trigger targeted ads or promotions to sway them your way.
Personalized Engagement
Reach out to nearby customers in real time, offering incentives or exclusive deals to encourage them to visit your dealership instead. This approach can be a game-changer in luring customers away from the competition.
6. Explore Affinities
Plenty of marketing research demonstrates that certain auto buyers also tend to purchase other goods and services. For example, truck owners also tend to shop at brands like sporting goods and home improvement stores.
Using third-party data of customers who have opted to receive marketing emails allows you to target new audiences using demographics, purchases, and category interests.
Partnerships and Co-Promotions
Partnering with like-minded retailers catering to similar customers in your area can help you tap into a new receptive market. Partner with these businesses to create joint marketing campaigns and promotions that benefit both of you. This approach can increase foot traffic and customer engagement.
Attract New Customers with Email Marketing
Several of these ideas use the power of email marketing to attract a new audience. Email marketing is the most cost-effective way to fill the top of your marketing funnel.
Whether you want to attract owners in your area (DMA) that aren’t in your DMS yet with a conquest campaign, sell to past customers from your sales or service departments, or capture those silent visitors to your website, AutoSweet can help.
Sign up for a free trial of our SilentVisitor™ tool and find out who is visiting your website without generating a lead.
We can identify 30-40% of your website visitors’ names, email addresses, and 37 other data points. Sign up today and get the first 500 identities free!
It’s time to rev up your strategy and steer your dealership toward a brighter future.
