We work with dealerships across the country. We’ve found that
a well-rounded marketing budget is most effective when broken
down into these five categories.
Store – 20%
I would spend 20% of my marketing money on my store, anything
from repaving your parking lot to upgrading interior displays. The
rule of thumb is to spend around 20% on your store. Statistics
say if a customer has a positive experience, but your store doesn’t
have curb appeal, a third of them will not recommend you. They
won’t give you something that has the biggest impact: word of
mouth advertising. That’s the impact of your appearance on your
marketing.
Customer Retention – 10%
It costs five times as much to get a new customer as it does to
retain an old one. Depending on your situation, your percentage
might be different, but we typically encourage dealerships to spend
10% of the marketing budget on customer retention. Think about
times that you can be in front of your customers when no one
else is. Think about off-holidays like St. Patrick’s Day or National
Ice Cream Day. How many companies do that? Not many. Find a
holiday that resonates with you and be creative on ways to get in
front of your customers for those holidays.
Online – 25%
Online is a broad topic, but things like websites, social media, and
Google ads fall into this category. One of the best ideas I’ve seen
was a dealer who said they had started taking pictures of every
new customer with their equipment. Then, they’d post it on their
Facebook page. If they could share it and get 100 likes, they would
send the customer a $100 prepaid gift card. Not only are you
10
solidifying a relationship with an existing customer, but you’re
utilizing word of mouth advertising.
Advertising – 25%
I’d spend 25% of my marketing budget on advertising, things
like radio ads, billboard, tv, print ads and direct mail. One thing
we encourage dealers to think about is utilizing some of their
advertising money on Pandora. Pandora is currently the most
listened to radio station in the U.S. You’re able to target your ads
to reach your customers and receive analytics as well.
Events – 20%
Many dealers find success using events as marketing for their
dealerships, anything from open houses and state fairs to charity
events. To set up a charity event, reach out to a local PTA, church
group or high school band and tell them you’d like to help them
set up a fundraiser. Pay for the food and the kids come work
the event. The kids keep the profit from the event for whatever
they are raising funds. They’ll also promote it on social media
and tell their family and friends. Dealers find that when a parent,
grandparent or friend is looking for a piece of equipment, they
come to them because they helped someone they knew.
Marketing plans are unique, but one of the best things you can do
is make a plan and use it as a guide for spending valuable marketing
money.
NATDA Dealership Performance Training includes online
modules and documented processes, so dealers can improve
every aspect of their dealership – from the parts department
to trailer sales. For more information and to sign-up, please
contact NATDA at 727-360-0304.
NATDA Magazine www.natda.org