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Why the Factory Programs Don’t Work
Posted on Apr 25, 2010 - 12:16 PM
Well, it’s been a while since I bashed anyone, so I figured it was time to stir things up a little. Today, I’d like to focus on something that is just about common knowledge in the auto dealership world. Every service manager, parts manager, general manager and dealer I have ever spoke with agrees on at least this one thing… factory marketing programs just don’t work, they never have and probably never will.
Now, before I go any further and start to get death threats from the manufacturers, let me set the ground rules for this topic. I am not singling any one manufacturer out and I am not being mean or ugly – I am just reporting the things that I hear on a daily basis from dealers across the nation. I am not writing this like I am on witch hunt and I am not trying to be self serving – there are a lot of service reminder & direct mail companies out there that do a great job (and yes, mine is one of them). But the more important thing here is to learn from the mistakes the manufacturer programs make so we don’t make the same ones.
REASON #1 - THEY ARE BORING
That’s right, I said it – they are boring. Light grey, tiny fonts with very universal corporate images that someone somewhere thinks has a professional look. Next time you get a chance, take a really good look at the factory mailer you are sending to your customers – would it entice you into your store? Is your logo buried somewhere in a small boring font that makes the mail piece look like what it is, a generic mailer with your dealer name and address ink-jetted on it and smudged? Does it brand your store or does it brand the factory? Does it entice customers to visit your store, or any store that carries that brand? Does it stick out in the mail and get noticed or does it have to be opened up in an envelope or fold over that is just too much trouble to fool with? And here is the one I think I hear the most –it just doesn’t project what my store is about – it is all about the factory.
REASON #2 - THE BRANDING IS WRONG
GM advertises Goodwrench, yet most people don’t drive a 2007 Goodwrench, they drive a Chevy or a Cadillac or a Buick. When you are looking for a car to buy you buy that brand, not Goodwrench or GM – and the advertisements cater to that specific brand. Why then, do the factory’s service mailers say Goodwrench instead of Cadillac or Chevy or Buick? Brand equity, anyone will tell you is worth millions – so why not pay attention to that and target customers with offers and logos that make sense to them?
REASON #3 - THEY HAVE BAD OFFERS
I got a mailer the other day – a corporate, dull, unexciting one from my dealer (which took me a few minutes to find the dealer information, by the way) and the offer was – get this – 10% off Wiper Blades! Wow, I just had to rush right down there to take advantage of that powerful hook. What was the dealer or the factory thinking – I mean my gosh – all consumers know is that they need an oil change and they have a pretty good idea of what a good deal is for an oil change, so why not advertise an oil change to get the customer in the store? Then you can really hit a home run on those wiper blades that cost $17!
I have also seen offers on the factory mailers like $39.95 for a tire rotation and an oil change. I am not saying that isn’t a good deal, but all customers see when they look at the mailer is $39.95 for an oil change – and let’s face it folks, that isn’t a good deal.
Think about this guys and girls, if you want to get customers to choose your store over the competition, you need strong, enticing offers that appeal to what they need at prices they see as great deals. This isn’t rocket science.
REASON #4 - THEY DON’T REACH THE RIGHT PEOPLE
It really doesn’t matter how good the offers are if you don’t reach the right people. So many factory programs try to get high-tech. They think they can predict the mileage on vehicles – which would allow them to hit the customer at just the right time – in an effort to increase effectiveness and save money. Doesn’t work like that folks, no one really knows the customer’s future plans on driving habits. Maybe he isn’t quite due for an oil change yet, but he is planning a summer trip – so he comes in early. Maybe his car is due for service, but he just broke his hip and will be out of commission for several months. The only thing we do know is how long it’s been since the customer came in to the dealership for service. We also know that it makes sense to constantly stay in touch with customers so when they do need or decide to get their car serviced, they will choose your store. That just makes sense…advertising is not an exact science and when people think it is, the effectiveness goes down big time.
REASON #5 - EMAIL IS A SUPPLEMENT, NOT A REPLACEMENT
Hey, I know we are in a fast moving, techy, email world – I get that. But the fact is there is still no better media to attract customers into your store than direct mail. Most Americans have 4 email addresses and 3 phone numbers, but they have only one mailbox and its right in front of their house and they check it every day. You have to get your name in that mailbox. Email is a great supplement to help increase response rates, (my company even has an inexpensive email marketing program you can use), but it will not replace direct mail – at least not for a long, long, time – we as a society just aren’t there yet. I have met with a ton of dealers that tried to cut direct mail and go total email marketing – it didn’t work. Their service drive traffic suffered because of it and they lost a lot of customers forever because they went elsewhere and started a new service relationship with someone else. Dealers always go back to the old standby – direct mail, to increase repair order counts – it just works better.
Ok, so one last bash and then I am through. I don’t understand why the factory doesn’t stick to building cars and let the dealers do what they do best – sell cars, sell parts and sell service. Most dealers are entrepreneurs that are very good business men, deeply rooted in their community and much better equipped to judge what their local market needs and wants when it comes to service. There are a lot of very good professional marketing companies out there that can help dealers get good results, good response rates and good return on investment – if they had the opportunity to work with the dealers. But, the factories are constantly requiring dealers to use their program, jump through a bunch of hoops, and reach certain levels of performance while at the same time, tying their hands and making them use their programs; that by the way, never worked in the past, never are consistent, are too complicated and usually go away after about 6 months or less.
If the manufacturers would just build the cars better and focus on helping dealers reach their sales and service goals without forcing generic, short lived, ineffective marketing programs down their throats – we would all be better off.
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