All of us have faced those inevitable slow periods—whether it is the uncertainty surrounding the upcoming election, the financial drain of back-to-school expenses, or simply the seasonal ebb and flow of consumer activity. These moments can make or break a dealership's momentum, but with a solid strategic vision and approach, these downtimes can actually be turned into opportunities to capture more market share and set up for future success
Understanding the Hesitation: Addressing Common Concerns
The first step in navigating slow periods is understanding why customers might be reluctant to make a purchase. Here are some common concerns:
Election Year Uncertainty: Many consumers hold off on big purchases during election years, worried about potential economic shifts.
Seasonal Expenses: Back-to-school shopping can tighten family budgets, making car purchases seem out of reach.
General Economic Concerns: Inflation, rising interest rates, and job insecurity can all contribute to a hesitation to buy.
Reframing the Situation: Turning Concerns into Opportunities
As a dealer, it’s crucial to not just hear these concerns but to actively address them. Here’s how you can reframe the conversation:
Election Year Uncertainty: “I completely understand the concern about how the upcoming election might impact the economy. However, the one thing that remains consistent is that vehicle prices tend to increase over time, especially with supply chain issues still affecting the industry. By purchasing now, you can lock in today's prices and financing rates before any potential post-election market shifts.”
Seasonal Expenses: “I get that back-to-school time can be financially draining. But did you know that many manufacturers offer special incentives right now? These promotions are designed to make purchasing easier during these busy months. Plus, with our flexible financing options, we can help spread out the costs in a way that fits your budget.”
General Economic Concerns: “While it's wise to be cautious, the cost of waiting can be significant. Car prices have been steadily rising, and interest rates may continue to climb. By making a purchase now, you can secure a better deal and avoid higher costs down the road.”
Advertising During Down Times: The Key to Future Success
One of the biggest mistakes dealers can make during slow periods is pulling back on advertising. It might seem counterintuitive, but this is actually the time to double down. Here’s why:
Higher ROI: During slower times, advertising costs often decrease because many businesses are pulling back. This can mean more visibility for less money, leading to a higher return on investment (ROI). For example, if your typical cost-per-click (CPC) on digital ads is $3 during peak times, you might see that drop to $2.50 or less during slow periods. That’s a significant savings that can stretch your ad budget further.
Market Share Gains: Consistent advertising keeps your brand top-of-mind for consumers, even if they’re not ready to buy right now. When they do decide to make a purchase, your dealership is likely to be their first stop. While your competitors are quiet, you’re gaining ground. A study from the Ehrenberg-Bass Institute found that brands that maintained or increased their ad spend during a recession saw market share growth of up to 4% over their competitors who cut back.
Compounding Effects: The sales you make during slow periods help drive sales in better months. By staying active in the market, you’re laying the groundwork for a strong future. Remember, momentum builds with consistent effort. An increase in ad impressions today can mean a boost in test drives and conversions tomorrow.
Remarketing to Current Customers: Leveraging Referral Business
Another powerful strategy during downtime is to tap into your existing customer base. Your current customers are one of your greatest assets, and down periods offer a perfect opportunity to engage with them in meaningful ways. Here’s how:
Referral Programs: Create a referral program that rewards your customers for bringing in new business. For example, offer a $100 referral bonus for every new customer they send your way who makes a purchase. This not only incentivizes your current customers to help you find new leads, but it also adds a layer of trust to the sales process—new customers are more likely to purchase when referred by someone they know.
Exclusive Offers: Send targeted emails or texts to your existing customers with exclusive offers that they can share with friends and family. This could be a special discount, a limited-time financing deal, or even a service package. Make it easy for them to pass these offers along, turning your loyal customers into your best salespeople.
Personalized Follow-Ups: Use this time to reconnect with past customers and see if they are in the market for another vehicle or know someone who is. A simple, personalized follow-up message can go a long way in reigniting interest or sparking a referral. Here’s a script you can use:
Email Script Example for Referrals:
Subject: Help Your Friends and Earn Cash!
Body: “Hi [Customer Name], we hope you’re enjoying your [Car Model]! We wanted to let you know about our new referral program where you can earn $100 for every friend or family member you refer who purchases a vehicle from us. It’s a win-win—you help your loved ones find a great deal, and you earn some extra cash. Let us know if there’s anyone you think would benefit from our current offers!”
Text Script Example for Referrals:
“Hi [Customer Name], this is [Your Name] from [Dealership]. We’ve just launched a referral program that pays you $100 for every person you send our way who buys a car. Know anyone looking for a new ride? Let’s chat!”
Scripts and Strategies for Success
Here are some practical scripts and strategies you can implement to convert leads during slow periods:
Email Example Follow-Up Script:
Subject: The Best Time to Buy is Now!
Body: “Hi [Customer Name], I wanted to follow up on our recent conversation about [Car Model]. I understand that now might not seem like the perfect time to buy, but I wanted to share some information that could change your mind. Prices are expected to rise due to [specific reason, e.g., upcoming election, supply chain issues], and the incentives we have available this month are some of the best we’ve seen all year. Let’s discuss how we can make this work within your budget. Looking forward to hearing from you!”
Phone Example Call Script:
“Hi [Customer Name], this is [Your Name] from [Dealership]. I know we spoke about [Car Model] a little while ago, and I understand you’re waiting for the right time to purchase. I wanted to share some new incentives and financing options we have that could make this the perfect time to buy. Plus, with prices expected to rise soon, you could save significantly by acting now. Can we set up a time to discuss this further?”
Text Example Message Script:
“Hi [Customer Name], it’s [Your Name] from [Dealership]. Quick note: Prices are going up soon, but we have great deals this month on [Car Model]. Let’s chat about how we can get you into your new car now and save you money. Reply YES for more info!”
Metrics to Monitor: What Success Looks Like
As you implement these strategies, keep an eye on key performance indicators (KPIs) to ensure you’re on the right track:
Lead Conversion Rate: During downtimes, your conversion rate might dip slightly, but if you’re maintaining or even improving it while others are struggling, you’re gaining market share. Aim to keep your conversion rate within 10% of your average during peak months.
Ad Spend ROI: Track your ROI to see how your advertising dollars are working harder during slow periods. A good benchmark is to aim for an ROI of 5:1 or higher—meaning you get $5 back for every $1 spent on advertising.
Customer Retention Rate: Use these downtimes to build stronger relationships with your customers. A stable or improving retention rate is a good sign that your efforts are paying off.
Final Thoughts: Turning Slow Periods into Success Stories
The key to building momentum during natural downtimes is to stay active, stay engaged, and keep listening to your customers’ needs. By reframing their concerns, doubling down on your advertising efforts, and using strategic scripts to guide the conversation, you can not only weather the slow periods but come out stronger on the other side. Additionally, leveraging your existing customer base for referrals can provide a valuable stream of new business, further solidifying your dealership’s position in the market. Remember, while your competitors pull back, you have the opportunity to push forward and capture a larger slice of the market—setting yourself up for success in the months to come.
If your dealership could use some help navigating these difficult times and feels your marketing strategy could use experienced leadership, do not hesitate to contact us. We love sharing, teaching, and learning from all dealers who are as serious as we are about this awesome industry.
By: Terry MacCauley, Founder & CEO
Motivational Monday Never Disappoints
In this week's Monday meeting, our team was motivated by a compelling video titled "5 Minutes for the Next 50 Years," featuring a motivational speech by Matthew McConaughey. The video was thoughtfully selected by Grace Maschhoff, one of our lead graphic designers, who has a knack for finding inspiration that resonates with our team.
This week's video serves as a beacon of inspiration for the Big Time Team on helping to define success, make choices aligned with our values, and embrace the process of self-discovery. McConaughey's words resonate with authenticity and offer valuable insights for crafting our identities.
Key Takeaways:
Defining Success: McConaughey encourages us to define success on our terms, urging viewers to prioritize what truly contributes positively to their lives without compromising their core values.
Process of Elimination: The video highlights the power of eliminating negative influences to pave the way for a more authentic and fulfilling life.
Owning Mistakes: Embrace the inevitability of mistakes, take ownership, make amends, and move forward. McConaughey emphasizes the importance of shedding guilt and regret to allow personal growth.
Big time Nuggets of Wisdom from Matthew McConaughey:
Architects of Our Lives: View life as a construction project where we are the architects, carefully studying habits, practices, and routines that lead to success, joy, and authenticity.
Turning Mistakes into Lessons: Rather than dwelling on mistakes, turn the page, learn from them, and move forward. Guilt and regret are barriers to progress, and the key is to advance with newfound wisdom.
This video was a powerful reminder for our team to approach life with intention, aligning our actions with our long-term goals while remaining true to ourselves.
