Marketing for Fixed Operations

Andrew Fidelman

Summer is here! What does that mean to the automotive community? Road trips! And for a dealer, that equates to increased sales in your fixed operations departments. At least that is what it should mean. How do you capture those customers while increasing your gross? Online special building and optimization to name a few.

According to NADA data, Fixed Operations account for 12% of a dealership’s total revenue on average but a whopping 60% of a dealership’s net profit! The average closing ratio of ups is about 30% and in a dealership’s service department, the closing ratio is 100%. Data also suggests that on average, over 50% of service department customers are or will become repeat customers. Why not do everything in your power to capitalize on those opportunities?

On average, 53% of a dealership’s service customers never purchased their cars at that dealership. Stop losing potential customers that think you only service what you sell! You have to get the word out that you are an all brands service center, and make sure you incentivize the customers in the process.

The numbers do not lie. National averages state that new car sales account for a minimal 5% of the entire dealerships gross, used car sales 12%, but here is where it gets interesting: Your parts department brings in an average 38% gross and service a whopping 70% average gross! How do you get the attention of your potential customers without spending the whole of your ad budget?

Online marketing is a great way to start and it’s the most powerful form of advertising in your arsenal. Traditional forms of advertising such as newspapers, direct mail, TV and radio account for only 20% of your leads. Ask yourself how much this meager return is costing you. Your online efforts bring 80% of your leads to your door!

The first step is to treat each of your fixed operations departments as separate business entities all under one roof. You have to run several businesses out of your dealership, you have your new and used and we all know those departments get the most attention, but should not be all you focus on.

A great place to start is by purchasing URLs specific to each of your fixed operations departments. Buy as many as you can, the price is low, but the return can be huge. Even if you are taking URLs away from your competitors, you still win! Get very specific, for example: ABCFORDPARTS.COM, ABCFORDBODYSHOP.COM, etc.

A fantastic solution to market your fixed ops online is to set up a FREE Google business account for each of your fixed operations departments. Simply go to Google, click on business solutions and then click on Google Places. This is a very effective free tool that showcases your listings, maps, reviews, logo and any additional content you see fit to fill the pages they provide. You can even post videos, hours of operation, online coupons and photos. There are other free listings as well, such as Yahoo local business, Bing local business, Yelp, Merchant Circle and Super pages.

Another option is the use of a Pay Per Click campaign. Also known as Search Engine Marketing, this is a great addition to an aggressive SEO campaign. You can rank for national terms, Zip Code specific terms, new URL start ups, time sensitive promotions and even go after customers of a recently closed dealership. Just remember, once you stop paying, the rankings go away. It’s like renting; when you walk away, you no longer have the property.

Microsites are yet one more way to market your fixed operations departments. They are a great way to capture specific searches and expand your market share. Microsites are a great way to market your parts and service departments as well as your collision and body shop if you have one. Microsites are inexpensive, targeted, department-specific, mini, free-standing and affordable websites that are worth their weight in gold. An important part of the success of your Microsites, as well as your department specific main website is the use of printable coupons for service specials. It is a trackable and effective way to compete in the service arena area wide.

And finally, target marketing is imperative. Make sure you give your customers exactly what they want. Be specific and be direct. Don’t waste time and money on vague blanket advertising that may or may not be what a person is looking for. Instead, market what you sell…and make it easy to find. Your bottom line will thank you!

To learn more about internet marketing for fixed ops and for your dealership in general, see the upcoming and recorded internet marketing webinars at TK Carsites, including a recorded webinar by Andrew Fidelman on Proven Internet Marketing for Fixed Ops.