How to Drive Dealership Growth with Post-Sale Marketing
Once a customer purchases a vehicle and drives off the lot, the initial sale is over. For many dealerships, that means it’s time to shift focus to the next potential customer. However, that post-sale period is when some of the best opportunities appear. Post-sale marketing allows dealerships to engage with customers long after the initial sale, encouraging repeat sales, increased service lane traffic, and better connections with those customers.
The Importance of Post-Sale Marketing
The cost of acquiring a new customer can be expensive in any industry. For automotive dealerships, where customers tend to make high-dollar purchases on a relatively infrequent basis, the struggle can be even greater. Retaining current customers is essential to growing the business without substantially increasing marketing costs.
Post-sale marketing allows dealerships to stay with customers through the ownership of their new vehicle. The sale isn’t the end of the journey with that customer. Instead, it’s a starting point that can be used to bring customers back to the dealership for their future needs. Not only can post-sale marketing increase overall customer retention, but it can encourage them to make future vehicle purchases through the dealership. Plus, it can drive repeat service visits, keeping a steady stream of income for the dealership long after that initial purchase. In addition, it helps generate referral business and increase F&I product penetration.
The Value of Post-Sale Marketing for Vehicle Service Contracts
Vehicle service contracts can provide immense value for both customers and dealerships alike. For customers, they can protect against costly repairs that are covered under that contract and reduce unexpected out-of-pocket expenses when something breaks. Dealerships benefit from being able to sell an F&I product that brings customers back to the dealership service drive.
Not every customer, however, is ready to purchase a service contract when they buy their vehicle. Post-sale marketing allows dealerships to connect with customers who may want to purchase one after their factory warranty ends.
Personalization Breeds Success
For modern customers, personalization is an essential part of their interactions with any brand, and their car dealership is no exception. They aren’t looking for generic promotional messaging. Instead, they want communications that reflect their needs and wants. This may include:
- Customizing their communications with the correct vehicle make and model
- Incorporating their mileage, service history, and driving habits into those communications
Savvy dealerships will also keep an eye on ownership duration and warranty expiration dates, all of which can create critical opportunities to connect with customers.
Improving Results with Multi-Channel Marketing
Customers engage with dealerships through multiple channels: in person, direct mail, digital marketing, and more. Multiple channels mean multiple touchpoints with customers, giving more opportunities to show them why they should choose a specific dealership. Incorporating email marketing, direct mail campaigns, text messaging, service reminders, and digital marketing helps reinforce messaging and keep the dealership top-of-mind.
This strategy is particularly important when it comes to vehicle service contracts, since it allows dealerships to educate customers about why they really need those service contracts and the benefits they offer.
Long-Term Growth Starts After the Sale
A dealership’s growth is reliant on far more than vehicle sales volume alone. For long-term profitability, they must look at all the elements that contribute to revenue, including customer retention, service revenue, and ownership engagement. Post-sale marketing is the key to ensuring that they can connect with customers after that first sale, encouraging them to stick with the dealership and return for their future needs.
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