Do you want to grow your car business? It could be for sale, or you are the “next-generation owner,” and you want to make a difference. Whatever your reason for growing your business is, you’ll need a strategy. 

The profit margins of new vehicles are significantly reducing, making it even harder for automobile dealers. To make profits, you’ll have to keep your existing customers, attract new customers, and reduce your operating costs. 

Here are a few ideas to help you grow your car business.

Keep your customers coming

Even with the market shrinking, there are still a lot of opportunities in the industry. You only need to make sure you don’t lose your customers after winning them.

At this point, what makes you stand out is the add ons, your packages, and the insurance premiums you got. Customizing your packages can help you attract customers back to you even after they’ve purchased a car.

Car valuations

Before you set your car prices, you have to evaluate the prices in the market. If you rip off your customers, they will not be coming back to your premises.

Besides the market price, before determining the prices of your cars, you need to examine the condition of your cars and make sure they’re in the right condition.

Strong reputation

Car dealerships, more than any other business, rely on good reviews. Remember, angry customers, are the loudest. Therefore, it only takes one bad experience to destroy your reputation and term your business as untrustworthy.

There are multiple ways you can avoid this from happening. For starters, avoid pushy and manipulative sales. Customers see right them, and it freaks them out. 

Customers want to have real conversations with people who can help them get a car that meets their needs.

Desperation will, therefore, not work for your business.

Train your staff on good customer service practices to make sure they communicate well with your customers.

Establish your presence online

We are at the age where you can’t afford to ignore the power of the internet. There is little to no space for companies without a media presence. For the young generation, who are slowly taking a huge fraction of the sales, if you’re not online, you don’t exist.

Take time to put up a website, hosting doesn’t cost a lot, and it will give your business a legitimate look. Digital marketing automation for car sales is the new word in the market. Take time to learn bout it. 

Connect with local businesses

Small businesses have the advantage of getting a chance to socialize with their customers and nurturing them, unlike big organizations. 

You can use this to your advantage. For example, you can make a deal with the local hotel, where you treat your car buyers for lunch. Or treat the people who show up for car testing for lunch in the hotel. In return, they can advertise your business to their customers.

Besides marketing, you’re also building a great reputation for your business in your community. Just look around and see how you can benefit from networking with local businesses in your area.

Create social media pages

Even with a website, you’ll need to create social media profiles for your business. You can start with the three most common platforms: Instagram, Facebook, and Twitter. 

If you don’t have enough finances, you can utilize free advertising at the beginning. With time, you can invest in paid ads, which aren’t expensive based on the returns.

Social media ads are great because you can set them to reach your target audience for campaign effectiveness.

Joining social media platforms also exposes your business to a big audience, increasing your chances of getting potential customers.

Give incentives for referrals

Word of mouth remains the most outstanding form of advertisement. Research [1] shows that 92% of customers only trust what other buyers have to say.

To encourage your customers to refer you to friends and relatives, you have to offer something in return.

Present them with a form to fill up and tell them whenever anyone comes to buy a car and mentions them, they will earn them a free oil change.

Be fun and creative with incentives, but keep the goal in mind.

Become a thought leader

Providing exceptional services to your buyers always come on top of the list. But how can you show them your expertise if they haven’t bought from you yet? By providing them with educative materials.

This can be through podcasts, blogs engaging in social media tutorials, or video tutorials.

Stay up to trends and answer all the concerns that may have in the industry. This builds trust and credibility for your car business.

Do you want to grow your car business?

The automotive business is lucrative, but you have to get it right to grow it. Competition is becoming stiff every day and reducing the profit margins of new cars. 

However, you can still make good returns in the business by making a few tweaks.

The above tips will help you improve your engagement with potential customers and retain your existing buyers.

References1.      https://www.nielsen.com/us/en/insights/report/2012/global-trust-in-advertising-and-brand-messages-2/

Related:
How to Improve Car Sales Performance (for Car Dealerships)
How do Auto Dealerships Work