For most dealers, advertising is one of the biggest costs incured each year. Whether it's on TV or radio, in the newspaper or high school yearbook, or on bus stop signs or billboards, the opportunities to advertise are plentiful. But what's the most cost-effective way to advertise and how essential is it to improving our bottom line?
RV dealers must compete with travel agencies, time shares, home remodelers and other companies chasing discretionary dollars. For that reason, advertising is critical to the success of the industry.
The most important goal of any dealer advertising is to generate an immediate response by the consumer, said Scott Joseph, president of J&L Marketing. "You want to spend your money when people are most likely to show up ready to buy." he said.
The shotgun approach of mass media advertising is not usually the most effective way to attract customers, said Joseph. "RVs are a niche market; it's not like the auto industry, he spends money reaching people who will never be interested in owning an RV ."
"If dealers really knew what triggered customers into coming to the sales lot, they would be very surprised at how low the response is due to advertising. Many people show up simple due to the dealer's location," said Joseph.
The best way to maximize return on advertising is to analyze the results and concentrate spending on what brings in the most people.
"Dealers who analyze their advertising campaigns can eliminate wasteful spending and invest their ad budget on what works best." said Joseph.
Asking customers where they heard about the dealership or what encouraged them to visit today is a good way to gauge response. Using coupons or differing the terms of each offer slightly also helps determine which message is reaching which customers. With coupons, place a tiny code word or number on each coupon so that you can tell where it came from. Offering a road atlas in one ad and an umbrella in another can help you determine where customers heard the message. Even radio advertising can be measured by asking customers to mention an ad when talking to the staff.
Although advertising is sent to thousands of potential viewers or readers, most dealers are doing well if any one ad pulls a one or two percent response, said Joseph. The national average is 0.75 percent.
For that reason, Joseph said he is biased toward direct mail because it goes directly to people who have been identified as potential RV owners. The key is to develop a list of names and addresses for use in an ad campaign.
When J&L Marketing coordinates a campaign, the staff registers every person who sets foot on the lot in order to learn who they are and where they come from. "In most of our promotions, 95 percent of people coming in are responding to direct mail- and we only track on-site visitors, not those responding by phone," said Joseph.
Billboards don't sell RVs, Joseph said, they make people aware of dealer location. He said billboard advertising is effective near dealerships to alert people that it's time to exit the highway.
Advertising should be consistent to maintain good traffic flow into the sales center, said Joseph. "Lack of consistent advertising is often the reason dealers find themselves in slower times than they need to be." he added.
People retire, inherit money and decide an RV could enhance their lifestyle every day. When they are ready to buy, the first voices they hear will attract the most attention.
"RVs are a niche market"
"Invest your ad budget on what works best"
"Billboards don't sell RVs"