A common complaint I’ve heard lately among owners of car dealerships is that they are spending far too much money on traditional marketing and advertising that’s not bringing in fresh leads and prospects the way it once used to.

Of course that’s because “traditional” dealer advertising doesn’t work—but let’s save that for a future blog post.  Instead, let’s talk about a few ways you can get around this problem while still putting plenty of new leads and prospects into the pipeline.

Essentially, if your goal is to cut back on advertising costs, you simply have to shift your focus to the existing customer base right under your nose and prime them to send referral business your way.

And besides the fact that referrals are a free or extremely low cost way to bring fresh leads into your store, customers who come in at the recommendation of a friend or family member typically have a more positive buying experience and are an easier close than a cold lead off the street (perhaps because they are “pre-sold” after hearing about the great buying experience of the person who sent them there).

So if you’re sick of spending a fortune on advertising and want to see more referral-based business at your store, try the following:

1. Create a buying experience that makes people WANT to refer their friends- If the typical buying experience at your dealership is pushy, unfriendly, difficult, etc. people will naturally tell their friends to steer clear of your establishment when they are looking for a car. It’s natural to want to push hard to meet your numbers for the month, but remember, a customer who feels valued and treated with respect is worth a lot more money to you in the long-run as they (and all of their friends/family) will become customers for life.
2. Offer something of value in exchange for sending referrals- Here’s where many dealers get it wrong. They ask for referrals and offer something that is of NO value to the customer ( ie. a T-shirt, a mug or other trinkets) for doing so.  Instead, if your goal is to motivate people to send business your way, up the ante a little and give them something they actually want (ie. cash, deeply discounted deals) for doing your dirty work.
3. Stay in contact with your customers long after the initial sale- You’ve heard the old saying, “out of sight, out of mind,”… which is exactly the dynamic that takes place after a customer leaves your store.  You can’t expect them to refer business your way if they aren’t thinking about you, so go the extra mile to send an email blast, newsletter or postcard to them each month reminding them how much you appreciate their business and any referrals they can send your way.

Of course don’t just take my word for it—put some of these strategies to work for you and let me know your results.  I’d also love to hear some of the strategies you may have implemented in the past that’s caused more referral-based business in your store.  Please also feel free to share your current struggles or questions you may have about creating business from your existing client base.   You can also email me privately at ring@yeschant.com if you require further assistance or a need a custom plan to effectively market your dealership.