Page 17 - On The Move - Volume 18, Issue 1

COVID-19 HAS CHANGED OUR LIVES AS WE KNOW IT:

no more concerts, no rowdy sporting events, and a tight economy to keep us on our
toes. But as we take this opportunity to cut back, downsize and analyze our monthly
spending habits, contrary to our gut feeling, it’s not the time to pause marketing budget.

Re-evaluate? Heavily critique? Absolutely. But to pause all marketing efforts is putting
your dealership at a disadvantage.

HERE’S WHY:

All the research – and the recent reality of the Q3 automotive recovery – points to a strong rebound for
automotive. That may sound hard to believe when we’re engulfed by a COVID-19 second wave, but it’s
clear that cars still are a hot commodity. Whether it’s millennials who never thought they’d own a car
because Ubering around was pretty convenient until the rampant pandemic, or commuters now hesitant
of buses and trains, private transportation is here to stay.

This means your dealership is about to compete for the attention of emerging markets, something organic
just can’t handle on its own. And while my proposition may seem risky or counterintuitive, three iconic
brands prove every gut instinct in our bodies is wrong. They show us opportunities that can come from
looming recessions, especially as we push forward and invest in innovation to prepare for a strong recovery.

NETFLIX LESSON: AIRBNB LESSON: GM LESSON:

STAY AHEAD MAKE GAPS IN THE MARKET PROCEED WITH CONFIDENCE
YOUR OPPORTUNITY
Netflix was on the cusp of collapse during the While he began with horse-drawn carriages in the
2000 bubble and had just endured the hardship late 1800s and purchased Buick Motor Company
of Blockbuster rebuffing a $50 million sale. The It is 1997 and Airbnb founders have just decided in 1904, it wasn’t until the middle of the Panic of
company not only was able to come out of the to rent out a mattress – yes, a mattress – in the 1907 that General Motors founder William Durant
recession stronger, but also used this time to middle of their San Francisco living room. Little decided to launch GM as a holding company to
create streaming services to combat competition. did they know that in the recession of 2008, acquire even more automobile manufacturers.
This eventually beat out Blockbuster and saved people would be priced out of high-cost hotels. GM now is one of the largest corporations in the
the Netflix brand over the big blue ticket. Today, Airbnb is the hit of the venture capital history of the world.
world, experiencing phenomenal success.
Your dealership’s marketing budget in the As it’s so close to home, GM is another great
COVID-19 era needs to remain high quality and COVID-19 presents a similar challenge and example for dealers to learn from: Dealerships
competitive, while being cost effective. With a opportunity. The pandemic has changed the also can be at the forefront of innovation during
limited budget and staff, dealerships still need face of our reality, but it’s also promoted and the pandemic by taking proper risks, educated
to consider efficient and creative marketing accelerated technology adoption. leaps forward and proceeding with confidence.
strategies that will keep them on the map.
My grandmother is now an avid Zoom user and It’s the opportune time to critique your digital
And just as Netflix found its niche (and frankly, my Instacart account is basically on repeat. For marketing and see if it’s really bringing the ROI
exactly what we need to survive these days), most of us, the pandemic was a wake-up call to that’s necessary to survive in a COVID-19 era. And
technology-driven marketing can keep dealers assess the efficiency of our current processes if not, what technology – like Zoom and Instacart
in the game and propel them forward post-COVID. and figure out the most cost-effective way to get – can move the needle in automotive?
It’s efficient, it’s scalable and it’s personalized. what we need without compromising on quality.
Now is the time for dealerships to make history
This is why it’s exactly the time to update and become the next iconic business to teach us
marketing strategy to fit the dynamic changes a lesson we’ll look back on one day. Don’t miss
in shoppers’ behavior: more people at home, out.
less time in public places – which includes your
showroom – and first-time car buyers. Pausing
your marketing spend means not getting in front
of the people you’re trying to reach. At the same
time, you want to be cautious and market wisely
and in real-time. The balance of the two will keep
your dealership from sinking.
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