If you are one of two dealerships in town, do you know why customers buy from you instead of the dealer down the street?
It’s imperative that you figure out what makes your dealership better than the competition.
And, once you figure it out, it’s even more important that you communicate your value clearly and consistently in all of your advertising.
Consistently communicating what makes you the best dealership in town means more leads and sales. And when you’re not doing this? It most likely means you’re throwing a good chunk of your advertising money down the drain.
Every city in America has an auto mile, and every small town has a used car dealership. According to NADA, there were more than 16,000 franchised dealerships in the U.S. in 2021, and the number is growing.
To stand out in such a crowded field, you need to know what makes you different, and you need to tell customers that. Dealerships that figure this out outgrow the competition and become the “go-to” dealership for their local shoppers.
Why Differentiate Your Dealership?
Remember GM’s Saturn brand? While GM mismanaged the company and ultimately stopped production in 2009, Saturn drew many loyal customers from the get-go with its highly differentiated selling experience:
Besides being an American-made, fuel-efficient quality automobile, the buying experience was entirely unique.
- Saturn’s no-haggle policy meant that the MSRP was the price a customer paid
- This addressed a customer pain point for those who hate bargaining for a new car
- Saturn’s ad campaign communicated this clearly: “A different kind of company. A different kind of car.”
The thing that makes you different is part of your value proposition. It encapsulates what you offer your customers and answers the question “why should I buy from you”?
This value proposition is a key piece of your marketing strategy. Without a clearly defined value proposition, your marketing campaigns won’t be as effective.
Determining your Dealership’s Differentiators
How do you figure out what makes your dealership unique? You may be a franchise and offer a vehicle make with a strong brand and reputation, but that doesn’t mean you shouldn’t build your own brand.
In the 21st century, customers can buy a vehicle across the country, they don’t have to shop locally. You must be crystal clear on why they should work with you.
To define what sets you apart, start by listing out all the ways you offer value to your customers. Start by asking yourself questions about what makes your products and services better than your competitors’…
Products/Services:
- What products or services do you offer?
- Why are they better than other products or services?
- These may be things like exceptional reliability, best-in-class safety, or tremendous value.
Your dealership is probably communicating these differentiators to your customers already. And, your competition is likely doing the same. So, the next way to stand out is to examine your value adds…
Value Adds:
In what ways do you benefit your customers beyond your products and services?
How do you relieve their pain points? These may be intangibles like:
- White-glove customer experience
- 24 hour test-drive
- Commisionless sales team (no-pressure experience)
- Free loaner cars with unlimited mileage for service appointments
- Free WiFi in your service area waiting room
- Other concierge services
A fun fictional example of a dealership figuring out a unique way to differentiate comes from an unexpected source, the “Karate Kid”. In Cobra Kai, Daniel LaRusso has built a dealership empire by differentiating his brand and communicating why he’s the best dealership in time.
He reminds local shoppers that he “kicks the competition” with low prices, and gives away a free bonsai tree with every purchase.
Analyze Your Reviews & Conduct Customer Satisfaction Surveys
Another way to discover your dealership’s best value proposition? Investigate why your most loyal customers stick with you. To figure this out, consider analyzing your existing reviews or conducting a customer survey.
Once you’ve figured out all the different ways your dealership is better than the competition, write a simple statement that summarizes them. This is your value proposition.
Communicate Differentiators with a Branding Campaign
Once you’ve defined your value proposition, you need to consistently communicate your differentiators.
Start with your website’s About Us page. The copy on this page should reflect your value prop and differentiators. Next, incorporate it into your marketing.
Build a brand campaign to share these points with customers to build loyalty. A brand campaign can also strengthen the rest of your marketing and fill your funnel with leads. It’s a solid investment that can yield big dividends when integrated with an inventory marketing campaign.
At AutoSweet, we can spot an opportunity for a brand campaign right away. Our digital marketing strategists are experts at building these campaigns while generating loyalty… and leads.
Contact us today for a free strategy session on how to communicate your differentiators through advertising and watch your leads grow!
