I've always believed that effective communication is the key to building long-term relationships with customers.
Over the past 25 years, I've used a variety of media to communicate with existing and potential customers. Flyers, direct-mail, newspapers, brochures and phone directories are some of the more traditional methods that have worked for us.
But in this high-tech age, dealerships are combining traditional and electronic forms of communications to reach intended audiences. Some dealerships lean heavily on print, TV and radio, while others invest more in websites and email marketing. Most successful dealerships combine traditional and electronic media for the best results.
If a dealership focuses its marketing and advertising exclusively on one medium to the exclusion of all others, it will likely miss out on a large segment of potential customers. Traditional methods of advertising are still effective, but the introduction of new technologies has certainly altered the playing field.
One of the most powerful communication tools is obviously the Internet. Search engines such as Google and Yahoo! have made researching vehicles and dealerships a quick and easy process.
Today, with everyone so pressed for time, email has become a hugely popular method for customers in contacting dealerships for new car quotations and for booking service appointments.
It's amazing how many new customers find their way to our dealership because of an Internet search or an email. A few years ago, it was merely a trickle; today, more than 25 per cent of the customers I recently queried found us online.
They may have been searching for a particular model that we sell, or they may have been looking for the nearest Hyundai dealer. In any case, these customers found us just by browsing the Internet or sending an email.
Although the methods of communication keep evolving, dealerships still need to treat different customers differently. I know many customers, particularly in their 60s and older, who are not computer savvy, nor are they interested in embracing new technologies.
It's interesting that preferred methods of communication tend to fall into generational patterns. For instance, those born before 1945 prefer regular mail. Baby Boomers prefer phone calls. The Y Generation, born after 1978, prefers text messages delivered to their cell phones.
To reach this younger generation of buyers, some U.S. dealers have joined together to start marketing on cell phones. Cell phone users can now view vehicle inventories, prices and contact information on their phones by entering key words and special codes.
Young people use their cell phones for making calls, downloading music, texting their friends and browsing the Internet. I'm sure they will embrace the concept of searching for cars on their phones, too, if given the opportunity.
The frequency of communication is something that dealerships monitor on a regular basis. If dealerships contact their customers too often, it can turn customers off and lead to lost sales opportunities.
If you have an issue with how a dealership communicates with you, then let them know. Dealerships try their best to perfect their messages and choose their media wisely, and they appreciate feedback from customers.
A few years ago, a friend told me that he'd not heard from his dealership since buying his car a year earlier. He felt ignored. I suggested that he contact the dealership and talk to the sales manager.
His salesperson now makes regular courtesy calls. My friend feels appreciated, and he's more inclined to do business with that dealership, all because of a custom method of communication.
This column represents the views of TADA. Email president@tada.ca or visit tada.ca
Bob Attrell, president of the Toronto Automobile Dealers' Association, is a new-car dealer in the GTA.