Thanks to the auto industry investing in more digital advertising programs and marketing initiatives than ever before, the success of 21^st century, digital-friendly customer loyalty rewards programs at forward-thinking dealerships across the country, and the launch of tons of head-turning new vehicles this year, America’s auto industry is continuing to experience an increase in domestic automotive sales.

Billions invested in automotive advertising in 2016

In 2015, GM spent nearly $1.5 billion on marketing, while Toyota and Ford spent nearly $1 billion each. According to a 2016 report by eMarketer  ~ a leader in creating a comprehensive source of information on how to do business in a digital world, the automotive industry is expected to invest a total of $8.71 billion in 2016 on paid digital media initiatives. That’s an impressive 17.3% more than the industry spent in 2015. A spring 2016 JPMorgan Chase analysis found that Toyota and General Motors (GM) budgeted to continue to spend more this year on marketing than what they spent in 2015. By 2020, the overall industry budget set aside for digital marketing programs and initiatives in the automotive industry in America will reach over $14 billion. 

The eMarketer report titled:  The US Auto Industry 2016: Digital Ad Spe..., shares that this rise in spending and investing in digital platforms and programs that promotes automakers and dealerships places the automotive industry just behind retail for money spent on marketing. Further, the 2016 report anticipates about the industry: “Automotive will continue to rank as the second-largest industry segment in the US for digital ad spending after retail, keeping it near the forefront of digital marketing for at least the next several years.”  That’s great news for automakers, dealerships, marketers, and consumers alike.

Millions of consumers buy vehicles in 2015

In 2015, 17.5 million consumers purchased vehicles in the United States. According to stats from the Autodata Corporation, there are three reasons so many individuals bought vehicles in 2015. One reason is attributed to better wages in America’s workforce. Another reason is a steady and long-lasting decrease in gas prices. Third, interest rates dropped, making financing a vehicle for 36 to 72 months much more attractive and affordable. Such an impressive boost in domestic car and trucks sales naturally inspires automakers and dealerships not only to continue to invest even more in their marketing programs and initiatives, but also to expand and diversify how they go about maintaining long-term relationships with their customers long after they’ve sold them a vehicle. This component of a dealership’s whole marketing plan ~ developing customer loyalty ~ is undoubtedly the most important and the least expensive.

Purposeful automotive marketing: attracting the car customer, transforming the shopper into a buyer, and maintaining the customer’s loyalty

Attracting new visitors to a dealership through creative, engaging, digital marketing platforms attracts and inspires the car shopper to call or visit their local dealership; that’s why so many billions of dollars are spent on digital marketing. Offering incentives, rebates, and specials motivate the car shopper to purchase a vehicle during (or within days) of that initial visit; that’s also why automakers and dealers continue to invest in advertising programs. However, getting those same visitors-turned-buyers to consistently return to the dealership for all their service department needs and to refer friends requires a key component of the automotive dealership’s marketing portfolio ~ the implementation of a customer loyalty rewards program.

With so much competition in the industry and with so many choices for consumers, investing in top-notch digital marketing is a necessity. However, while those multi-million-dollar-a-year advertising initiatives from automakers attract the buyers and get them into the dealerships, the marketing can’t end when the deal is done. In fact, it’s at the moment the car shopper becomes a car buyer that purposeful, direct, and customized marketing to that brand new customer ought to begin.  A customer loyalty rewards program picks up where the national sales ads leave off. 

Ohio dealership reaps ongoing benefits of marketing via a customer loyalty program

Research from a multi-location automotive dealership in Ohio that incorporated a customer loyalty rewards program in their marketing budget 48 months ago found not only that the program actually reduced their overall advertisement spending by 20%, but also doubled the number of referrals and repeat customers the dealership’s 5 locations get each month.  By simultaneously enrolling customers into their loyalty program automatically at the same time they’re entering the customer data needed to close the deal, customers started earning points right away.  They continued accumulating and earning points by taking various actions, like giving online reviews or sending in referrals.  In no time, the customers were excited about the program and redeeming their points back at the dealership, increasing their overall patronage significantly.

Automotive marketing programs are central to increasing sales. While paid digital media initiatives can bring customers into the dealership, and incentives can get them to buy, it’s the marketing done via customer loyalty programs that get them to return again and again.

To learn more about growing loyalty at your dealership, call 800-499-1996 or email mike@rewardtoretain.com