"Why Buy Here?” programs can be a big win for auto dealerships

Digital retailing has become firmly entrenched among auto dealerships as they work to deliver the convenient, flexible shopping and buying experiences that today’s car buyers demand.

However, that same convenience allows customers to easily shop outside their local area to find the vehicle they want. So, how can you develop a compelling value proposition that sets your business apart from other dealerships?

Zurich’s Michael Naim, Regional F&I Manager, said, “Dealers need to offer something that makes them unique and gives them a competitive advantage. Today’s consumer expects a superior experience and greater value. The dealer who can present a better overall buying experience, coupled with a value package that stands out, will sell more cars and generate more gross profit. You need to give customers a compelling reason to buy from you or you’ll become obsolete.”

Savvy dealers are increasingly looking for programs and solutions that truly set them apart. General benefits like being open on Saturdays, stating experience (like “We’re a third-generation family business”), or offering free coffee, shuttle service and Wi-Fi are no longer enough.

The value of a “Why Buy Here?” program

Your “Why Buy Here?” value proposition needs to be much stronger than simply a detailed “About Us” page. It needs to be a thoughtfully developed program that truly differentiates your dealership from the competition.

Naim explained. “If you can create a much more compelling proposition for customers, these programs will drive business back to your dealership for service. And the premium dollars associated with the cost of the products become part of your reinsurance portfolio, generating additional profit. It is often quite eye-opening for customers when they see how these programs can shift the cost of marketing and advertisement dollars to create income and become part of their reinsurance portfolio. These programs, when well-designed and executed, can drive so much value and profit to the bottom line.”

A compelling "Why Buy Here?" strategy should include:

• Products and services with tangible value to consumers
• A demonstration that the value of purchases exceeds the cost
• An implementation and training plan to ingrain the “Why Buy Here?” message into the dealerships’ culture, ensuring its success in driving sales results
• Retention components that bring customers back to your dealership for service and purchase of their next vehicle

The components of a "Why Buy Here?" program can include, but are not limited to:

• Lifetime Engine Warranty (low cost/low exposure/high returns in reinsurance portfolio)
• Basic maintenance (oil changes and tire rotations)
• 1-year environmental protection plan
• A dealer-provided limited warranty (if pre-owned, the vehicle might come with six-month or one-year comprehensive warranty)

Depending on the dealership’s specific offerings and capabilities, there are many other products and services that might be added to the list above. The key is to choose components where the value will be clear to customers, and that begins with knowing what your customers are looking for.

Car buyers are more aware of their options than ever before, so building customer loyalty requires much more than simply good service and a convenient store location. Take the time to make your “Why Buy Here?” program as unique as possible, and revisit the components regularly to consider what might be added to keep the program — and your dealership — competitive.