Automotive dealerships sell high-ticket items and lean heavily on their reputation, word-of-mouth advertising, and their standing in the local community. As a result, they need to adopt a unique approach to merchandising.
Consumers lend more weight to brands and companies that they recognize, even if they don’t know where they recognize them from. If you’re looking for a trustworthy product at the pharmacy or grocery store, you’ll gravitate toward the one you recognize. You may only know the name from a billboard or TV commercial, but you know it, and that automatically makes it more trustworthy.
Merchandising plays into this psychological trick by exposing your brand to as many consumers as possible. By giving away branded apparel, accessories, and even keyrings, you’re putting your company in front of more potential consumers within your local community.
What’s more, you’re not paying for big billboards that consumers may overlook or distrust; it’s organic everyday advertising seen on the tees of friends or the keyrings of colleagues.
Humans have an innate need to reciprocate—you scratch my back, I’ll scratch yours. If you offer them some free swag when they sit down to discuss a deal, they’re more likely to accept the offer on the table. You’re also strengthening the business-client relationship, and while it might not bear fruit in the immediate future, it could benefit you down the line.
A fully branded dealership looks professional. If a customer walks into your showroom and sees employees wearing branded attire and using branded accessories, they’ll immediately perceive you as ordered, uniform, and professional.
It’s also easier for them to discern customers from employees. So, when creating dealership merchandise, be sure to give some to your employees, as well as your customers.
Make yourself seen in the community by running local events and sponsoring local teams. Do your bit for charity, take some promotional items and other freebies to a charity event, and amplify the impact by kitting employees out in branded swag.
It’s harder to analyze the ROI of a merchandise campaign than an online advertisement. But the effects of a well-run campaign are often far-reaching:
Every time a customer or employee wears a branded item out in public, you’re getting exposure. It may seem minor, but if you have many individuals all wearing the same gear, you’re putting your logo and name in front of thousands of locals.
If all dealerships do their job, there is very little to separate them. An appreciation gift could be the deciding factor, the thing that keeps a customer loyal year after year. It’s a small token of your appreciation that could significantly boost a customer’s lifetime value.
It’s easy to get lost in the crowd during local events, but not if everyone is showcasing your brand and handing out gifts. Likewise, a giveaway can greatly elevate a marketing campaign and get more customers behind the brand.
At Foxtrot Marketing, we can help you source and design the perfect dealership merchandise, accounting for your budget, needs, and target demographic. Here are some of the merchandise ideas used by automotive dealerships:
Whether it’s a jacket and polo to create a uniform during local events or baseball caps for giveaways, promotional apparel is the most common and, oftentimes, the most effective option.
Relevance matters. The more you deviate from your industry and brand, the less likely you are to influence customers. So, look for items that customers can use in their cars, including premium keychains, long-lasting air fresheners, and winter prep packs.
H3: Free Servicing and Maintenance
Merchandising isn’t limited to branded products. If you want to encourage loyalty and show appreciation, offer your customers a free service or maintenance. It’s not going to get you as much exposure as branded apparel, but it’ll certainly keep your customers happy, and they’ll probably let their friends know.
Now you have an idea of why dealership merchandise works, here’s how best to implement it.
Offer incentives for vehicle purchases or give customers loyalty rewards when they buy multiple vehicles from you within a specific timeframe. It’s a high-ticket item, so you likely have more of a margin to play with and can create some very tempting offers.
H3: VIP Merchandise
The higher the margin, the greater the leeway. So, if customers purchase your most expensive models or choose lots of add-ons, give them a VIP gift. Be sure to let them know that it’s a VIP reward—consumers like to know they’re part of an elite club.
Drum up sales during slow seasons by running promotions. Offer small gifts when they book a test drive or schedule a servicing. Give them a free hat just for enquiring.
It’s a big expense, but the great thing about merchandising is that even if they don’t buy anything, they’ll still leave carrying your brand. They may have had no intention of buying a car from you, but if they wear a branded hat every day, they’ve more than justified the cost of that item.
You don’t need a dealership merchandise program, but it’s worth implementing one as it could increase sales and boost customer loyalty. Contact Foxtrot Marketing to discover how we can help you.
Simple but relevant items such as air fresheners and keychains often work best.
In most cases, yes, but you can’t simply throw freebies at customers and hope they work. You need to think about relevance, quality, timing, and marketing strategy.