Why Branding is Important to Dealership Success

Beyond the gleaming showroom floors and polished vehicle displays, branding is the unseen force that distinguishes one dealership from another. The success of a dealership doesn’t solely rely on vehicle sales, but also relies on the strength of a dealership’s brand. Read on to learn why dealership branding is important and how it can transform a dealership into a beacon of success within the automotive industry.

Overview of Branding and Its Purpose

Before we dive into the specifics of dealership branding, it is important to understand what branding is and its purpose. Branding is the strategic process of making a business or product easily recognizable.
Think of a time when you were in a store and could recognize a product instantly based on its look and packaging without having to read the name (e.g., Nike shoes)? That’s branding at work – it defines the company’s values, mission, and unique qualities, which are then communicated through visual elements like logos, color schemes, design, messaging, and customer experiences. Effective branding builds trust, emotional connections, and loyalty with customers. It is a long-term investment, that, when done correctly, leads to a strong reputation and success.

What is Dealership Branding?
Dealership branding focuses on applying the same strategic process mentioned above to automotive dealerships. It aims to convey the dealership’s, the quality of its products and services, and its unique selling points. Branding is a way to build trust and a connection with customers, differentiate the dealership from competitors, and create a memorable and consistent experience for your customers. Automotive dealership branding plays a crucial role in influencing the purchasing decisions of customers and fostering long-term relationships, ultimately contributing to success and reputation in this highly competitive industry.

What Are the Elements of Dealership Branding?

Successfully branding your dealership encompasses several key elements that work together to create a distinct and memorable identity. These elements include:

  • Dealership Name – Your dealership’s name is often the first point of contact with customers, and should be easy to say, spell, and reflect your dealership’s identity.
  • Logo – This is a visual representation of your brand, and should be unique, easily recognizable, and relevant to the automotive industry.
  • Color scheme – Consistent use of specific colors in branding materials, from your website to physical signage and everything in between, helps create visual recognition and reinforces brand identity. Research suggests that using a signature color scheme increases brand recognition by an astounding 80%.
  • Physical location – The layout and design of your showroom, building exterior, and lot creates a look and feel that should coincide with your overall brand image.
  • Digital presence – A strong online presence is crucial to attracting and driving traffic to your store. It should include a well-designed, user-friendly website, engaging social media profiles, and effective online advertising.
  • Customer experience – The way customers are treated and the overall experience they have at the dealership, including the friendliness of staff and the quality of service, plays a significant role in branding. Are your staff trained to be polite when serving customers? This is part of your branding and goes a long way towards building a reputation that your dealership provides exceptional customer service.

By carefully managing these elements, you can establish a brand that not only distinguishes your automotive dealership from competitors, but also resonates with customers and builds trust and loyalty over time.
Another way to build your dealership’s brand is to continue to support and market to your customers after the initial vehicle sale.

The Power of Dealership Branding and Post-Sale Marketing

Post-sale marketing helps dealerships build lasting relationships with their customers and enhance the dealers’ reputation and brand throughout the community. Learning how to effectively use post-sale marketing leads not only to better customer relationships, but other benefits such as increased revenue, higher reinsurance reserves, and more vehicle sales.
At Automotive Product Consultants, we offer post-sale vehicle service contract marketing programs at no-cost to dealers using their name, logo, and branding specifications. These programs market to dealership customers and educate them about the benefits of buying additional coverage from the dealership.

We encourage dealers and agents to contact us to learn how Automotive Product Consultants can power a post-sale vehicle service contract marketing program that will drive sales and revenue for your dealership. Reach out to us today for a free program demo.

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5 Solutions to Customer Complaints at Dealerships

Purchasing a vehicle is an exciting time, but it can also be a stressful time for potential customers. A visit to a dealership is rarely simple, it often involves a long day spent with a sales team member and in the F&I office.

There’s no industry that is foolproof against customer complaints, and the excitement, stress, and high emotion of purchasing a high-value item such as a vehicle often leads to stresses for customers that may lead to them complaining in person or even online. In 2023, an average of 10% of a new dealership’s reviews were negative.

In such a high-stakes situation, customers want to feel assured that they’ve made the right decision in the vehicle they are purchasing and the dealership they are choosing to work with. Some complaints can stir up some doubts in potential buyers. The good news is that with these helpful strategies, your dealership can avoid the most common complaints among vehicle shoppers.

  1. Build Trust & Transparency – Many consumers have a built-in mistrust for the automotive industry. One recent study shows that 76% of those asked don’t trust cardealerships to be honest about pricing. If dealerships want to avoid being affected by this, they must build that trust with their customers. The best way to do that is to be as transparent and up-front as possible while maintaining regular customer contact. If there are issues with the vehicle in the service drive or problems in the F&I office, be honest with the customer about what is going on and how the dealership is going to work to create the best outcome for the customer.
  2. Give Buyers Their Money’s Worth – Many customers are concerned about vehicle pricing, especially with so many opportunities for upgrades and additional services. Customers must rely on dealerships to purchase vehicles, but that means they are often left haggling over a feature or monthly payment. Take customer concerns seriously and work with them to learn what is and isn’t important, and what will have them driving away happily after the transaction.
  3. Don’t Push Unnecessary Services – Customers don’t want to feel as if they are being sold unnecessary services each time they visit their dealership. Recent studies show that in 2023, only 30% of all serviced cars were taken to a dealership for maintenance. However, 46% of those customers don’t trust the service drive to be honest in pricing and what’s needed. If the service drive is transparent with customers about their service needs, they’re bound to return when other services are needed.
  4. Avoid the Stereotype of the “Pushy” Salesperson – Let’s face it: vehicle sales is a competitive market. With high interest rates and other economic concerns, buying a new vehicle is a struggle for many customers.  In 2024, the vehicle market is remaining close to record highs on vehicle pricing, and those aren’t projected to lower any time soon. It’s important to carefully assess the customer’s needs while avoiding appearing pushy during this stressful decision-making process.
  5. Steer Clear of False Advertising – Finally, one of the biggest complaints from vehicle buyers is that too many dealerships use false or misleading marketing. Avoid marketing specials and deals with complicated fine print or limitations on the promotion. These might get customers to the showroom, but they may leave unhappy and have a bad memory of trying to work with that dealership. Instead, be up-front and transparent with what the specials and promotions offer and who is eligible before they even get to the F&I office, if possible.

Address Complaints Before They Start

Customer complaints are all too common – and usually louder than a positive review or accolade. However, many customer complaints can be prevented ahead of time by implementing business practices designed to create the best customer experience possible. When a dealership understands the negative experiences potential customers may have already faced, they can ensure that they don’t repeat that history.

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The Impact of Extended Coverage in the Growing EV Market

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Did you know that more than 10 million electric vehicles are on the road worldwide today? To put this into perspective, that figure was only 53,000 in 2012, representing a massive 18,000% growth in the EV market. As the EV market continues to thrive, exploring the benefits of vehicle service contract coverage, the costs associated with electric vehicle repairs, and the unique technical requirements of these environmentally friendly vehicles is essential.
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