Running a successful used car dealership in Australia takes more than just a day-to-day strategy. To be successful in such a competitive industry it is important that you have a well thought out, strategic, long term business strategy that outlines where you are and where you want to be.
EasyCars has put together a step by step guide on how your used car dealership can develop a long term business strategy.
1. Understand Your Market
The first step to developing a strong long term business strategy for your used car dealership in Australia is to understand the ins and outs of the market.
Market Trends
The Australian automotive industry changes rapidly. To set your dealership up for long term success it is important that you stay informed and adapt to trends in the industry. Are electric cars gaining popularity in Australia? Is there a customer shift to buying used cars entirely online? Understanding market trends will help your dealership stay ahead in an ever changing industry.
Customer Preferences
To be successful in any industry you need to know your customers. Understand what customers like and how much they want to spend. What types of cars do your intended target market buy? Do they need used car finance? How are they finding their next used car dealership? Research online and analyse used car sales data to learn about customer preferences and buying habits.
Competitive Analysis
The Australian Used Car Industry is extremely competitive. Analyse your competitors, what do they sell? How much are they selling used cars for? How are they getting customers to their dealership? Understanding your competition will help you identify gaps and areas where your used car dealership can differentiate itself and gain a competitive advantage.
2. Set Clear, Measurable Goals
Once you understand the market, the next step to building a long term strategy for your used car dealership is to set clear, measurable goals. The goals that you set should align with your car dealership business plan and most importantly provide a roadmap for achieving long-term success.
Short-Term Goals
Start by setting short term goals for your used car dealership that can be achieved within the next 12 months. This could be as simple as a sales increase, expanding your cars for sale range, and improving customer satisfaction scores. Your short term goals should be specific, measurable, achievable, relevant, and time-bound, the SMART strategy.
Long-Term Goals
Once you have set your goals for the next 12 months, its time to plan your long term goals. These are goals that you want your used car dealership to achieve in the next five to 10 years. This could include opening an additional used car dealership, diversifying your dealerships services or even entering new markets. Again these goals need to be realistic, ambitious, yet achievable.
3. Develop a Strong Brand Identity
Once you have your goals laid out the next step is to develop a strong brand identity. Who is your dealership? What do you represent? How do you want customers to perceive your dealership? Your brand represents everything your dealership is.
Unique Value Proposition
What makes your used car dealership stand out from your competitors? Is it your dealerships customer service? Is it the variety of used cars for sale your dealership has? or is it your dealerships pricing? Your dealerships unique value proposition should clearly highlight the benefits of choosing your car dealership over others in the market.
Consistent Brand Message
It is important that your dealerships messaging is consistent across all channels including your dealership website, social media, car advertising and in dealership. Having consistent messaging will help build trust with customers and shows that you know what you’re talking about.
Building Brand Loyalty
To have long term success you need to build a loyal customer base. Think about implementing loyalty programs, offer personalised buying experiences, engage with past customers regularly to keep them coming back to your dealership.
4. Invest in Technology and Innovation
As the Australian automotive industry continues to evolve, the technology that your dealership uses will make or break success. To stay competitive and to achieve long term success it is vital that your dealership invests in technology and innovation.
Digital Transformation
Embrace the cutting edge changes in digital transformation by enhancing your online presence. Have your own Dealership Website, Think about offering virtual vehicle tours, 360 degree images and utilising car dealer digital marketing strategies like Facebook Automotive Inventory Ads and Google Vehicle Listing Ads. Online car sales are becoming the norm and having a strong online presence will help set your dealership for ongoing sustained success.
Dealer Management System
Implement a robust Dealer Management System like EasyCars to streamline and automate day to day management of your dealership. Using a system like EasyCars, dealers can automate tasks like Stock Intake, Government Compliance, Advertising, Reporting and Accounting in one simple easy to use platform, giving you back more time to focus on what you do best - buying and selling cars!
5. Build a Strong Team
Your team is and will be the backbone of your dealership’s short term and long term success. Building a strong, motivated, and skilled team at your used car dealership in Australia is the key to achieving the goals you set.
Hiring the Right People
Recruit motivated staff that align with your dealerships values and culture. When looking at potential employees for your dealership look at candidates with the right skills and experience who will strive for and contribute to your dealerships success.
Training and Development
To have the best employees, it is important that you continue to invest in ongoing staff training and development. A well trained team are much more likely to deliver exceptional services that will drive used car sales.
Employee Retention
To ensure that your strong employees stick around, implement different staff retention strategies like offering the best salaries, additional benefits and most of all opportunities for career advancement. A stable and committed team of employees are the key to long term success.
6. Focus on Customer Experience
Providing the best customer service is a cornerstone to long term success in every industry not just automotive. Satisfied customers are more likely to return and refer others to your dealership thus setting you up for long term growth.
Personalised Service
The key to offering the best customer service is personalisation. Personalise your customer service for each customer. What one customer wants will be different to the next so it is important that you personalise your services accordingly.
After-Sales Support
Your dealerships customer service shouldn’t stop at the time of sale. To stand out from your competition, provide excellent after sales support. This can include offering maintenance services, offering additional warranties and simply just checking in with customers in the months after the sale. Building lasting relationships with customers can and often result in repeat business and word of mouth referrals.
Customer Feedback
To ensure your customer service is the best in the market, regularly seek feedback from your customers. See what they liked and what they didn’t. Based on the feedback, adjust your service offering to closer align with customer demands.
7. Monitor and Adjust Your Strategy
Developing a long-term business strategy at your dealership is not a one-time task. You will need to continuously monitor and adjust as the industry changes. Be sure to regularly review your dealerships performance, assess your dealerships progress towards the set goals above and make the necessary changes to stay on track.
Performance Metrics
Identify key performance metrics (KPIs) to measure the success of your used car dealerships long term business strategy. These could include KPIs on your dealerships sales figures, customer satisfaction scores, and most of all profitability.
Adaptability
Be prepared to adapt your strategy in response to changes in the Australian used car market, customer preferences, or the competitive landscape. Flexibility and adaptability are essential for long-term success.
Continuous Improvement
Strive for continuous improvement by seeking out new opportunities, don’t be scared to experiment with innovative ideas, and learning from your successes and challenges.
Final Word,
Developing a long-term business strategy for your dealership in Australia is essential for achieving sustained growth and success. The 7 steps presented in this piece are proven ways that your used car dealership can develop a strong brand strategy for your dealership.
DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to making any decision.
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About EasyCars,
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Facebook Automotive Inventory Ads, Reviews Management, Dealership Websites and more.
To learn more about EasyCars Dealer Management System or to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.