Highline Franchise Marketing

[mcampo2501]

I spent the last 5 years as an internet manager at a Toyota Dealership. I recently took a job at a Mercedes-Benz dealership, and am finding that a lot of the marketing strategies I used with Toyota don't work with the highline buyer. I've had several vendors out to push their programs, but am hesitant to invest in anything because I just don't feel like a highline buyer will respond to the same things that I've had success with in the past. Does anyone here have experience as in internet manager within a highline franchise? If so, what are your thoughts on social media marketing? Also, for anyone that has experience with both types of manufacturers, do the close ratios seem to be consistent on both sides or should I adjust my expectations? Any other suggestions to effectively market to a highline buyer would be appreciated. Thanks.

 

[Jeff Kershner]

Mike,

I've went from Toyota to Mercede to Nissan to Volkswagen.

When you say "a lot of the marketing strategies I used with Toyota don't work with the highline buyer" - can you elaborate a little more?

In the end - my findings show their is little difference. What does differ at times with luxury dealers is your AOI. Many luxury dealers have a much larger AOI. This can change your mediums.

The luxury buyer is rarely a need buyer. They're a want buyer that tend go in and out of the market much faster (before making their purchase). They typically take a little longer to make a purchase. Long term follow-up becomes even more important.

All the best marketing practices still follow the luxury brands. Though I would suggest open up the budget a little more for display remarketing. Let's follow those potential customers around for awhile with our brand and message.

I've found the MB buyer isn't as much a niche buyer like the BMW or Porsche buyer. Half of the buyers of MB (from my experience) didn't know if they were driving a V6 or a V8. They knew it was an E-Class Mercedes-Benz. My point - their not as "tuned-in" as you might expect.

Don't allow yourself to get too brainwashed from upper management with the "That's not how our customers shop" or "our customers are different". They're not that much different.

I've always been successful with a strong email maketing campaign with the luxury buyer. They would trend with a higher open and engagement rate. Not really sure why.

The luxury customer LOVES a bargain just as much as the Kia buyer. Heck - maybe even more.

I've seen a few studies that show the Luxury buyer is MORE engaged with social. This study is a little dated - What Vehicle Manufacturers have the Highest Social Currency?

What have you done thus far that worked for Toyota but not for the Benz dealer?

 

[dscarry]

Highline marketing is very different than midline and third tier manufacturers.

First and foremost, the marketing (all of it) is less direct-response. By that, I mean that you can expect less phone calls and ups from any individual ad. People who are affluent enough to afford a highline vehicle are less motivated by urgent messages than other products. In turn, this means you'll need to give a new marketing effort more time to assess ROI than the first or second run.

Digital is clearly very important to a highline customer. They're more educated and a professional and make better use of digital media.

Our baseline plan for any highline dealer would be as follows:

A solid website with consistently updated content.
A mid-line AutoTrader package to market used cars (Premium plus spotlights)
A healthy dose of PPC (budget dependent on market)
A email marketing platform like 3Birds, IMN or our ePress
A database driven direct mail program each month
A solid service marketing mail / email program like RedRocket or eLead
A consistent dose of an electronic medium (depends on market - cable would be very applicable in most markets). Be frequent where you are going to be.

Another note in all highline marketing is to note their coop or marketing program requirements. Highline manufacturers typically have much higher or tighter qualifications.

I hope this helps.

 

[Jeff Kershner]

Highline marketing is very different than midline and third tier manufacturers.

First and foremost, the marketing (all of it) is less direct-response. By that, I mean that you can expect less phone calls and ups from any individual ad. People who are affluent enough to afford a highline vehicle are less motivated by urgent messages than other products. In turn, this means you'll need to give a new marketing effort more time to assess ROI than the first or second run.

Digital is clearly very important to a highline customer. They're more educated and a professional and make better use of digital media.

Our baseline plan for any highline dealer would be as follows:

A solid website with consistently updated content.
A mid-line AutoTrader package to market used cars (Premium plus spotlights)
A healthy dose of PPC (budget dependent on market)
A email marketing platform like 3Birds, IMN or our ePress
A database driven direct mail program each month
A solid service marketing mail / email program like RedRocket or eLead
A consistent dose of an electronic medium (depends on market - cable would be very applicable in most markets). Be frequent where you are going to be.

Another note in all highline marketing is to note their coop or marketing program requirements. Highline manufacturers typically have much higher or tighter qualifications.

I hope this helps.

Thanks for chiming in Duncan. You have me revisiting my first comment and rethinking what I had written. Was I right when I said "my findings show their is little difference"? I believe I was and I'll stand on what I said since what you pointed out in your baseline is very much the exact approach I have taken with not only highline dealers but most all dealer marketing - no matter the manufacturer.

The point you make (and we both agree on) is the Message within your marketing for the highline / luxury buyer. The urgency for this buyer isn't typical. Replace the message of "urgency" with "exclusivity".

You mention email marketing. And I'll second that. Especially with "newsletters". I've found the open and engagement rates for highend / luxury buyers to be consistently above the average. When our newsletter at the Mercedes store would forget to go out, I get emails from clients asking why they hadn't received it yet. Go figure. Newsletters give a feeling of "exclusivity" - when the content matches, it's a great performing marketing medium for luxury dealers.

Taking the exclusivity / niche type message on another level and lets speak "Event Marketing". It's sometimes hard to justify the ROI in event marketing BUT does provide that exclusivity feel for your clients.

Any thoughts around event?

 

[john.quinn]

Affluent buyers most cherish their TIME; moreso than bargains, option packages, etc. That's why, theoretically, "Social" plays an expanded role, in 2 ways.

1. Their "experience" while in your presence. Promise a Red Carpet, and they'll respond.
2. Status (actual, not FB). Affluent people want the newest Benz in their driveway not because of the newest fuel injection system, but because of how it looks in their driveway.

Its my experience that while their is more "actual" social engagement with the affluent, there is less "digital social."

Regardless of the medium, it's the messaging that matters most.

 

[joe.pistell]

... Affluent people want the newest Benz in their driveway not because of the newest fuel injection system, but because of how it looks in their driveway.

Amen Brother!

 

[Stefan]

Is this any different than a Toyota, Honda or Chevy customer?

What is seems to be different is the way the customers convert:

 

[ddavis]

Stephan, I really don't understand the area just above the pie charts. I think this is interesting information. The lead conversion for Lexus customers is a surprise.

I'm new to Lexus. I don't think much of Cobalt after spending time on the website. If they had any influence on Lexus when they built these websites, it should be an embarrassment to them. It has to be the worst website required by any manufacturer. It is about as inviting as a tomb. Not allowing the dealers to actually list their new vehicles on the website is a unique idea. I can't imagine why other manufacturers haven't adopted this philosophy.

 

[Stefan]

Doug,

The chart you are referring to is a side by side compression between how dealers spend their advertising budgets and what generates walk ins. I personally dont think its just one singel source that influences walk ins (According to ZMOT the number is 18.2 sources), however its good chart to show you GM or DP when you ask for an increase in budget for digital.

About Cobalt... Make a friend in the Lexus eCare team. It is a great team that its willing to help as much as they are allowed to and are always answering the phone. If you are upset with the curent Lexus guidelines, wait until the new LDMC its fully enforced. Its a Joke.

I'll send you a PM with my contact information, we can chat about inventory and other stuff maybe share some great contacts at Cobalt and at other Lexus dealerships... they're out there. I just dont want to take this thread in a different direction

 

[ddavis]

Stefan, I guess what confused me is that the percentages on both sides don't add up to 100%. It has a lot of good information and it has already been stolen for one of my sales meetings.

I appreciate the contact information. Expect to hear from me.

I have dealt with the tech support group and they have been top notch. They have already been nit picking on the guidelines. I have corrected all of their past concerns, immediately.

I defy anyone to point out something about these sites that is innovative, attractive and sells.