15 Must Know Marketing Tips for Car Dealerships

Operating a successful car dealership requires effective marketing tactics to attract customers and boost sales. With increasing competition and evolving consumer preferences, dealers must constantly refine their strategies to stand out.

Here are 15 must-know marketing tips for UK car dealerships:

1. Focus on Digital Marketing

Establishing a robust digital marketing presence is an absolute necessity for modern car dealerships looking to reach today’s internet-savvy buyers. Most customers now start their car buying journey online, researching makes, models, reviews and deals on Google, car trade centre websites, and third-party listing sites. Dealerships must optimise their own website for search engines through on-page content, page speed, mobile friendliness and off-page SEO best practices. Promotional emails, pay-per-click ads, and retargeting display ads should be part of the digital mix. An active presence on social media platforms like Facebook, Instagram and Twitter also helps boost brand awareness and engagement. The key is crafting relevant, compelling digital touchpoints customers repeatedly encounter when researching their next vehicle purchase.

2. Claim and Optimise Online Listings

Claiming and optimising your dealership’s business listings on major platforms is vital to improving local visibility. Key sites to focus on include Google My Business, Autotrader, Motors.co.uk, CarGurus UK and Facebook Business. Complete all profile information accurately, upload inventory and photos, respond to reviews, and ensure NAP consistency. Optimise content by including relevant keywords car buyers may search for. Also, consider paid upgrades to listings for priority placement. Local SEO can be complex, so don’t hesitate to enlist a digital marketing agency as a partner for managing online listings.

3. Build Online Reviews

Online customer reviews have become one of the most trusted sources of information for today’s car buyers. Recent surveys show over 90% of consumers read reviews before making purchase decisions. All dealerships must proactively manage their profiles on Google, Facebook, Trustpilot, Reevoo and other major review sites. First, focus on providing top-notch customer service to generate more 5-star reviews organically. For negative reviews, publicly respond professionally. Existing customers are also more likely to leave reviews when asked, so don’t hesitate to request them. Reviews influence local SEO as well, so developing an ongoing process for generating more positive online feedback should be every dealer’s priority.

4. Develop Video Marketing

Video is growing dramatically as an engaging digital marketing medium, especially for visually driven products like automobiles. Dealerships should develop interesting, relevant video content as part of their online presence. Ideal options include walkaround videos showcasing current inventory, vehicle test drives, customer testimonials, virtual dealership tours and service centre overviews. Promote videos on your website, YouTube channel, social posts and paid ads. You can also partner with influencers in your area to review models. For best results, ensure high-quality production value in your videos.

5. Utilise Social Media

While often overlooked, social media platforms present huge marketing potential for dealers through increasing brand awareness, interacting directly with customers, and promoting inventory, offers and events. Actively maintain and post on accounts like Facebook, Instagram, X, LinkedIn and TikTok. Share available inventory, engage followers with contests and relevant auto content, respond promptly to comments and enquiries, and utilise paid social ads. The key is posting consistently, spreading content across channels, and fostering genuine engagement. Remember to keep an eye on analytics to identify what resonates most with your audience and integrate social media efforts with your other digital campaigns.

6. Optimise Paid Search Ads

Pay-per-click (PPC) advertising through Google Ads, Bing Ads and paid social media ads is a proven way for dealerships to get their inventory and offers in front of motivated buyers actively searching for vehicles online. You can target very specific makes, models, customisations, and geographic radii. Start by researching relevant keywords and search terms, setting budgets and tracking conversions. Continuously optimise paid ads through keyword adjustments, landing page testing, bid strategies and negative keywords to maximise return on investment. Automotive PPC does require expertise, so get help from a digital agency if needed.

7. Focus on Customer Loyalty

It costs dealerships significantly more to attract brand-new customers than to retain existing ones. Focusing on customer loyalty and post-purchase engagement is tremendously valuable. Offer incentives for repeat business like discounts on future purchases, free servicing, rewards programmes, VIP experiences and exclusive events for existing customers. Provide outstanding after-sales service. Regularly communicate with customers post-purchase through emails, surveys and direct mail for a personalised experience that keeps your brand top-of-mind. Loyalty programmes encourage customers to service with you, trade in with you and spread positive word-of-mouth – driving up lifetime value.

8. Partner with Complementary Brands

Strategic partnerships with other reputable local or regional brands can expand awareness and provide mutually beneficial co-marketing opportunities. Identify popular, relevant, non-competing partners like restaurants, hotels, tourist attractions, concert venues, sports teams or activity companies. Offer sponsorship packages and negotiate creative promotions that reach new audiences, such as discounted event tickets for test drive customers. Joint giveaways, cross-promotions via websites and email lists, and shared social media posts are all great partnership activation ideas.

9. Sponsor Local Events and Teams

Sponsoring relevant community events, sports teams, schools, charities and causes builds goodwill and brand exposure for dealerships. Ideal options are events, teams and organisations popular among your existing and target demographics. Maximise presence through on-site branding, vehicle displays, collateral, and merchandise. Promote the sponsorship across your marketing channels and ensure adequate representation and participation at events themselves. Car dealerships may also want to host or sponsor their own events – like new model previews, charity test drives or a “community day” on the dealership grounds.

10. Host Events at Your Dealership

Special on-site events are a great tactic for driving target customer traffic directly to your dealership showroom and test drive lots. Consider open house previews of newly launched models, anniversary or holiday celebrations, charity test drive fundraisers, customer appreciation days with giveaways and refreshments, and family fun days with activities and entertainment. Promote such events extensively through your website, email database, social media, paid ads, signage and community event calendars. On-site events provide valuable face-to-face engagement opportunities to build rapport and make a memorable impression.

11. Offer Test Drives at Convenient Locations

Taking new or popular models out to high-traffic community hubs for test drives is a smart awareness builder – especially venues where your ideal buyers congregate. Set up a tented test drive area at busy shopping centres, the university campus, the downtown square or even the local car trade centre auction. Have professional staff engage interested passers-by and offer test drives on the spot. Be sure to capture prospect contact details for sales follow-up. This tactic generates valuable exposure and gives customers a no-obligation, convenient way to experience your inventory first-hand.

12. Advertise in Traditional Media

Though digital marketing provides the most trackable ROI, dealers should not ignore traditional advertising completely. Television, radio, print, outdoor signage and direct mail may still be suitable options depending on your target geography and demographics. For example, regular TV commercials and radio sponsorships can build mass reach and awareness. Print ads in local papers and magazines target nearby households. Billboards on high-traffic routes expose commuters to inventory. And direct mailers enable the distribution of promotional offers to specific postcode areas. Use promotable offers and trackable phone numbers/URLs to measure response.

13. Develop Referral and Affiliate Programmes

Encouraging existing customers, partners and even staff to refer new prospects to your dealership can amplify promotional efforts. Developing an appealing referral programme incentivises others to recommend your business within their networks. Typical rewards include cash, gift cards or account credit for successful new customer referrals that result in sales. Make the sign-up process easy through your website or at the point of purchase. Similarly, affiliate programmes reward partners like local businesses when they influence customers who end up buying. But ensure compliance with advertising standards authority regulations.

14. Focus on Lifetime Customer Value

Avoid fixating solely on making the initial sale or short-term transactions. The most successful dealerships instead aim to build relationships and loyalty over time through outstanding service to gain repeat and referral business. This lifetime customer value approach reduces attrition and drives greater revenues long-term from customers who trust your brand. Invest in the overall customer experience beyond just pricing – from marketplace reputation to showroom hospitality and aftercare. Keep in touch and cultivate loyalty through ongoing value adds like maintenance discounts.

15. Leverage Data and Analytics

Robust metrics and analytics are crucial for identifying your best marketing channels, optimising campaigns, gaining customer insights and showing concrete ROI. Useful data points include website visitors, lead sources, conversion rates, cost per acquisition/lead, customer lifetime value and Net Promoter Scores. Track key performance indicators for all marketing activities, test new approaches, and double down on what works. Ongoing data analysis also enables adjustments as market conditions shift. For fuller insights, integrate analytics platforms like Google Analytics, Google Data Studio, Facebook Business Manager and dedicated CRMs. With the right martech stack, dealers can track customers from initial outreach to purchase and long-term service patronage.

With these must-know marketing tips, your dealership can thrive even in challenging times.