This webinar, originally presented by C-4 Analytics on the Digital Dealer platform, argues that despite economic uncertainty, now is the best time for dealers to gain market share. With recession alarms ringing and dealers reverting to old habits, a unique opportunity is emerging for those willing to be bold.
C-4 Analytics was founded in the depths of the 2009 recession, and we know firsthand that the time to gain market share is when your competitors blink. As others pull back and bar the door, you can make strategic moves that will pay dividends for years to come.
In past downturns, incentives went up, rates went up, and sales went down. Today's situation is unique: rates are up, but sales are not down due to a lack of demand. The persistent chip crisis means that demand still outstrips supply, which has allowed dealers to earn record profits.
However, many dealers are reacting to recession fears by exhibiting classic behaviors:
This creates a vacuum in the market. The dealers who capitalize on this vacuum will see their market share multiply, as customers who are won now are yours to keep for the entire buying cycle.
Here are four concrete strategies you can deploy to seize the moment and gain market share, regardless of your dealership's size or brand.
1. Target License Plate Frames in Your Service Drive
Look at the pump-in reports that show customers who bought a vehicle from a competitor but come to your dealership for service. They've already shown brand loyalty to your service department; now, it's time to win their sales business. Use a different narrative that focuses on the reality of today’s market: lack of inventory, the power of custom orders, and the benefits of a hometown dealer. This is a targeted, high-value conversation that can win back lost sales.
2. On-Brand Share for Small Dealers
The biggest advantage large dealers had—the sheer volume of inventory on their lots—has been neutralized. In this environment, the small, hometown dealer wins. Your message is simple: there is no longer a price or inventory advantage in going to the big city. Customers should buy from their local, trusted dealer.
3. On-Brand Share for Large Dealers
If you're a big dealer, you need to counteract the small stores' new advantage. Your value proposition is no longer just about volume. You must make it worthwhile for customers to drive past a local dealer to come to you. Consider a "drive and save" approach with compelling dealer-level incentives that justify the trip. This proactive strategy can protect you from losing market share to the competition.
4. Off-Brand Conquest
While your competitors' lots may be empty, you know people are still searching for their brands. This is your opportunity to intercept them high up in the sales funnel. Use data to target customers who are searching for competing makes and models, and get your custom-built vehicles in front of them. The goal is to make a powerful case for why your brand is a better choice before they even decide which dealership to visit.
The market abhors a vacuum. If you don't seize this opportunity, your rivals will. You know your dealership can afford it, and the market is ripe for the taking. By being bold and deploying these data-driven strategies while others hesitate, you can ensure that your dealership not only survives this economic downturn but thrives and secures a dominant position for years to come.
For a deeper dive into these topics and to hear directly from Rob Stoesser, VP of OEM Relations, watch the full webinar below.