Mastering Service Lane Marketing

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“Customers don’t know what they want until you show it to them.” – Steve Jobs

When customers shop, they either browse vehicles that might catch their fancy, or they gravitate toward a vehicle that fits their needs in the best possible way. How you approach these people and the environment you place them in is critical to your success.

If your customers don’t really need a new vehicle but are in an equity position, then you need to give them a promotional experience – an excuse to buy. But, if they need a new vehicle due to costly repairs or obsolescence, then you give them information – logic.

One size does not fit all

You’re more likely to convince customers to buy or trade for a vehicle if your strategy aligns with their mindset. You need to have your service lane ready for both promotional and logical purchase mindsets.

Q: What makes car shoppers consider a vehicle they don’t really need?

A: Positives

Unengaged customers are more likely to consider buying a new product if they anticipate a “win,” or if that product promises a feeling or an experience that is new or exciting. An example would be building off-road displays for crossovers, SUVs and pickup trucks Or, an example of increased cargo capacity (bikes, kayaks, golf clubs, luggage, etc.) can be effective in giving the customer a visual for a new experience.

Unengaged customers are put off by taxing, factual details. One possible reason is that when shoppers imagine the feeling or experience a product promises, they’re using the brain’s daydreaming mode. You can only daydream if your mind is allowed to wander, and it can’t wander if your attention is absorbed in numbers.

Look at your service lane. Is it just nuts and bolts? (Pun intended) Is the service lane included in the dealerships sales activities? In addition to providing service information, does it communicate that NOW is a good time to trade up?

Q: How do you convert a “need” buyer?

A: Information

If you have a need buyer and it would be advantageous for them to switch to another vehicle, then you need to give them information. Give clear, detailed specifications and offer accurate comparisons to maintaining their current vehicle vs. buying or leasing a new one. Here is a checklist for the information buyer:

Fuel economy – Gas prices may be low now, but chances are they’ll rise again. The fuel economy of new U.S. cars and trucks hit a record 24.7 miles per gallon.

Repair costs – How much it costs to repair your current car. If your annual repair bills exceed a year’s worth of car payments, then it’s time to start shopping.

How much value your car continues to lose – Cars depreciate significantly over the first few years of ownership, often more rapidly than your monthly payments are paying down the loan, putting you upside-down financially.

Safety – Every car should have:

  • Backup camera
  • Curtain airbags
  • Electronic stability control (ESC)
  • Forward-collision warning
  • Blind-spot monitoring
  • Lane-departure warning
  • A “Good” score in the IIHS small-overlap test

Only the latest designs do well in the difficult small-overlap front crash test from the Insurance Institute for Highway Safety. Many of today’s high-tech cars work to avoid crashes altogether, warning the driver about hazards and sometimes responding to threats quickly. Advanced systems can automatically slow or completely stop a car. Visibility aids such as rear cameras and blind-spot monitoring show what’s around you, helping situational awareness.

Connected features – Almost every recent car has these as standard.

  • Hands-free phone usage
  • USB port for plugging in a phone
  • Bluetooth phone connectivity

Specialty items

  • Voice commands recognition
  • Built-in navigation
  • Ability to use integrated apps like Pandora or Spotify

At the very end, signing the contract to buy a vehicle is an emotional decision. It’s a significant commitment. But, knowing a customer’s mindset along the way can help you determine the best path to take on the way to a sale.

Reaching Women Shoppers Through Direct Mail

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According to the National Mail Order Association, women have exclusive responsibility for sorting mail and choosing which items to keep for further consideration in two-thirds of U.S. households. By many other accounts, more than 80 percent of those who pick up the mail across the country every day are women, most of whom also serve as the primary shoppers both on and offline for their households.

Women also tend to read each and every direct mail piece addressed to them.

A report from the marketing website she-conomy.com found that 65 percent of new cars are purchased by the woman of the household.  American women spend about $5 trillion annually. This represents over a quarter of U.S. Gross Domestic Product. For retailers, women shoppers are their largest target audience.

As digital advertising continues to grow, the effectiveness of direct mail cannot be overlooked. As online shopping increases each year, it is important to note that studies show that 67 percent of online action is driven by offline messages. A study by the Direct Marketing Association shows that 78 percent of consumers react to direct mail immediately when they receive mail from a brand that they’re interested in. Forty-four percent visit the brand’s website and 34 percent search online for more information about the product.

Before you drop your next mail piece be sure to keep your female recipients top-of-mind:

  • Sell customer service — Women want to know how the transaction is going to be handled. They prefer nice and easy. Make a customer care representative available by phone to strengthen the relationship and pave the way for a smooth transaction.
  • Impart useful information — Women do their research before buying and like to know why making this purchase is a good decision. In addition to expressing why it’s a great deal, include why it’s a smart deal.
  • Be personal — Use first names in the copy and make each recipient feel special with messaging that is polite, factual and smart.

Women drive 70–80 percent of all consumers purchasing through their buying power and influence. I can’t tell you how many times I’ve seen a salesperson mishandle a female customer. Remember, they not only buy for themselves but also direct purchases for their partners, children, parents, in-laws, nieces and nephews. Placing direct mail in women decision-maker hands provides you with a tremendous opportunity. Female shoppers easily constitute a vast majority of vehicle purchase decision-makers.

From cars to healthcare to vacations, women are calling the shots at home. They pick up and read mail, place orders, and use coupons at retail locations. Dealers need to acknowledge the dominance of decision-making women and personally address them directly through the mailbox.