How A Big City Auto Dealer Almost Failed Underestimating The Importance Of Relationship Marketing

Relationship marketing, also known as attraction marketing, may be the single most important marketing strategy you can use to ensure a steady stream of repeat sales and referrals in your business. Read on to discover how a big city auto dealer had a rude awakening when he underestimated the importance of relationships in rural America.

At a small social gathering recently the conversation among a few of us turned to business and the economy. One of our friends had sold his automobile dealership a few years back and retired but we knew he remained plugged in to what’s happening in the industry so we asked how his former dealership was doing under its new owner.

He said that it had gone through a very rough time for a while for reasons that were not really related to the economy. He went on to explain that a dealer in the nearby big city had bought his dealership which was a few miles out of the city in a mostly rural area. The statement he made that caught my attention was that the new owner tried to apply the same marketing practices used in his “big city” dealership to the “rural” dealership and they didn’t work.

I was pretty sure I knew what he meant but I asked the question anyway, “So what’s the difference in “big city” marketing and “rural” marketing?

His answer: “Relationships. In rural communities, businesses are dependent on customer loyalty and customer loyalty is all about relationships.”

Enjoying my role as the straight man, I followed with the obvious question, “Why don’t the “big city” dealers promote customer loyalty through relationships?”

He responded, “They don’t have to. It’s more of a numbers game. If one customer doesn’t buy, there’s another one coming in behind him that will.” Someone else observed this might not work in an economic downturn. “True,” our friend said, “it eventually catches up with you.”

I don’t want to imply that all “big city” businesses neglect the practice of relationship marketing. I’m just relating the conversation as I recall it. But there is an important truth to be learned here. Building customer loyalty through genuine heartfelt relationships must be a part of the culture of a business.

You can’t let relationships slide during the good times because those relationships will sustain you during the bad. And you can’t back off during the bad times because they need to know you’re still there and you still care.

Building relationships that result in customer loyalty doesn’t have to be complicated. It can be as simple as sending a personalized greeting card with a heartfelt message.

How Could The Auto Dealer Apply This Relationship Marketing Technique?

Consider this scenario: You buy a new car. The salesperson takes a picture of you holding the keys as you pose beside your new car. Big smile, right?

A few days later, a greeting card arrives in the mail. You open it. (Who doesn’t open a greeting card?) But this is not your usual card. On the face of this card is the photo of you and your new car. Inside on the left panel is a picture of the salesperson and his contact information. On the right panel inside is a personalized message thanking you for your business and an expression of hope that you are enjoying your new car.

What do you do with this card? Throw it out with the junk mail? Of course not. It has your picture with your new car. It goes on your mantel or your coffee table or your desk at work and you probably show it to your friends. (Hmmm, can you say referrals?)

But relationship marketing doesn’t end there. The savvy salesperson discovered your birthday during the sales process and you get a birthday card… no sales pitch, just wishing you a happy birthday. At various holidays throughout the year, you receive appropriate greeting cards from the salesperson. On the anniversary of your car purchase, you receive a card and there it is again. A photo card with you and your car.

Repeat Sales And Referrals Are By-Products Of Relationship Marketing

Tell me, when a friend mentions they are thinking of buying a new car, who comes to mind? When you are ready to buy a car again, who do think of?

I rest my case. That’s relationship marketing, simple and effective.

© Bob Young

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