Believe it or not, there are dealers who experience growth year after year, despite elections, the weather, the stock
market, etc. While there are other operators who misdiagnose having an up year because of a growing market. There is a BIG difference. Some dealers are market driven, and their results vary based on the ebbs and flows of the economy, while other dealers are marketing driven and they control their own destiny.
A market driven dealer is oblivious to its number one asset. A market driven dealer doesn’t invest in and train its staff. A market driven dealer makes reactive advertising decisions and sloppily pays for one-and-done random billboard, radio, TV, and newspaper campaigns coming and going because he knows he should be advertising. A market driven dealer doesn’t understand what his buying base is, much less have a clue about how to dominate it. A market driven dealer is vulnerable. I should know, I used to be one. I learned the hard way, the expensive way. If you’re reading this, you don’t have to.
A marketing driven dealer understands that his customer list is his number one asset (what I often refer to as “The Number One Asset Your Accountant Forgot to Tell You About”). A marketing driven dealer trains his staff on how and why capturing accurate data on his customers is of the utmost importance. A marketing driven dealer has a pro-active, integrated, direct marketing plan designed to touch his buying base 52 to 104 times per year and is quantifiable. Barring natural disaster, a marketing driven dealer experiences predictable growth. A marketing driven dealer understands this simple formula.
Annual increase in list size + annual increase in customer value (or the same) = Annual Growth.
While a multitude of factors are involved in a dealer’s ability to grow their list, it’s important to understand the two most fundamental contributors.
1. Generating new leads. (Growing new market share)
2. Increasing the frequency of visits from existing customers and reactivating lost customers. (Increasing Retention)
Basically, there are two groups of riders that you should be marketing to in order to grow new market share: Your existing customers to increase retention, and conquest customers, those who live in your backyard, ride what you sell, but haven’t done business with you before. These two groups make up what we call your buying base. And, when you focus on touching these two groups 52 to 104 times per year, with relationship driven messages (as opposed to salesy, hypey, messages) something magical happens.
If your focus each and every day, month, and year is just reacting to walk-in floor traffic, handling phone-ups and internet leads with no attention to capturing that customer data and marketing to them in the future, then you can’t grow every single year.
First - You will be confined to the conditions of the market and economy, as this is the primary driver of walk-in floor traffic.
Second - Those who’ve given you money in the past will always be most likely to give you money again in the future, because they already know you. BUT, if you’re not reaching out to them with compelling reasons to visit your store they can easily be lured away by your competitors or lose interest all together.
When you develop and execute a solid marketing plan to build and retain your existing customers, and conquest your competitors’ and orphan customers in your market area YOU begin to control the floor ups, phone ups, and internet sales leads NOT the market.
Ultimately, continual growth is achieved by touching your ENTIRE customer buying base 52 to 104 times per year.
So if you’re ready to stop the up and down roller coaster ride of being a market driven dealership and you’re ready to generate predictable growth by becoming a Marketing driven dealership, pick up the phone and give us a call at 877-242-4472.