Chances are you already know about the chip shortage and its impact on car dealer inventory. The shortage makes it more difficult for consumers to buy, and has caused a lot of stress and headaches on the supply side. Chips operate many devices and luxury features in cars nowadays, like the screen interface, GPS, and automated brake and steering systems. As the demand for vehicles continues to outweigh its supply, the automotive industry is feeling the full effects of it.
The shortage will likely continue for a significant time longer since automotive and industrial segments are least priority for chip manufacturers. However, the situation is not nearly as bleak as its headlines might make it seem. Despite the difficulties, demand for cars will not go away, which is why it’s crucial to maintain a car dealership marketing strategy to help overcome this difficulty.
Many Consumers are Unfazed by The Shortage
During these difficult times, it's important to keep in mind that many consumers aren't even fazed by the shortage — which is good news for you. That’s because the relationship with cars has evolved beyond pure utilitarian transportation into a relaxing escape from people’s day-to-day lives. With a good advertising strategy, you can still appeal to consumers with the inventory you have available and maintain a loyal following.
You can segment your marketing to specifically appeal to this group. For instance, broadcast radio listeners consider their vehicles a safe haven or even extension of their home and family, with 86% planning on driving the same or more due to concerns about travel and 21% driving by themselves to gain a sense of freedom. By targeting consumers with these preferences, or whose preferences overlap, you can make a specific campaign to reach this group.
Target The Most Dedicated Customers
There is a huge range of diversity in auto customers — from luxury to home models. That’s why marketing to different people based on their lifestyle, preferences, and economic situation is so crucial. Positioning your messaging to focus on the experiential nature of driving helps to draw attention away from the issues surrounding the chip shortage and bring attention to the value of what is available. It also allows you to frame the narrative of your advertising away from costs alone.
You should also consider building and maintaining stronger relationships and bonds with your current and potential customers. You can use loyalty programs and reviews to develop a trusting relationship with your most dedicated customers and offer other incentives, like car waxing, cleanings, or accessories to stand out further.
Targeting past customers by promoting the other services you offer also goes a long way in bringing more value to consumers. By advertising upgrades to existing cars or standard maintenance alongside, or instead of, your inventory, you can bring in revenue and keep cars on the road for longer. If you can extend the lifespan of your consumer’s cars, you can help them wait out the shortage and develop their trust in you. That increases the chances that, when they are ready to buy, you’ll be their go-to place to purchase.
Run Brand Awareness Campaigns
Even if you don't expect to have the inventory to match previous sales, you need to run brand awareness campaigns to keep your dealership top of mind for when customers are ready to buy. Much like with seasonal businesses, it's important to start building and strengthening your brand's awareness among your audience before they've begun to think purchasing.
That will give your automotive brand an advantage when supply picks back up because the consumer will be more inclined towards your brand than other automotive brands they haven't heard about. In fact, 73% of consumers are more likely to trust a brand they know over one they never heard of, and this is especially true for major purchases like vehicles.
Essentially, maintaining awareness will help you gain more traction once inventory picks up because people will already be aware of your dealership, making your ads stand out when it comes time for them to make a purchasing decision.
Nurture Leads Through Digital Channels
Nurturing leads online through your digital, content, and email channels establishes you as a trusted resource and industry expert. The best way to do so is to digitally target your audience and provide valuable information and insight. You can do this by:
- Providing safety tips,
- Insight into evolving trends in the industry,
- Information about different vehicle models, like whether it’s suited for a family instead of a single individual
Better yet, you can combine your digital efforts to offer the right mix of tips and information. For instance, you can write informative blogs, then promote them in personalized email newsletters and social media posts, taking special care to engage and interact with your followers on these posts.
You don't ever want to stop marketing during times of crisis, but you do need to adjust your messaging. The chip shortage may take you a few steps back, but it also presents you with more opportunities to get ahead of the competition with unique and creative approaches to the crisis. Your customers are everything to the success of your automotive business — making sure they're aware of your brand and bonded to it should always be a priority.
