How to Maximize Dealership OEM-Provided Co-Op Funds
Utilizing OEM co-op funds can significantly bolster dealership marketing efforts, increase digital visibility, and drive stronger sales. OEM-powered co-op programs are crafted to help dealerships stretch their marketing and advertising budgets by subsidizing your promotional activities. However, to help our dealership customers make the most of these funds, dealers must understand the dos and don’ts, best practices, and the process of submitting co-op claims.
The Importance of Co-Op Funds in Your Marketing Strategy
OEM co-op funds are a pivotal element of any dealership’s marketing strategy. These funds are designed to support the promotion of OEM products and services through various advertising channels. Utilizing these funds effectively can help dealers maintain a robust presence in the market while adhering to OEM brand guidelines.
Dos and Don’ts of Utilizing OEM Co-Op Funds
Do:
- Align with OEM Guidelines: Always ensure that the dealership’s marketing efforts align with the specific guidelines provided by the dealership’s OEM partner. This includes adhering to brand standards, using approved logos, and following the stipulated media formats. For example, New Holland emphasizes that digital content must exclusively feature their products and logos for eligibility.
- Invest in Digital: Investing in digital marketing solutions offers a higher ROI and increased likelihood of moving inventory off the lot faster. Platforms like social media, automated email marketing, search engine marketing, and targeted digital ads can yield significant results. Many OEMs now allocate significant co-op funds to digital advertising.
- Document Everything: Proper documentation is essential to securing co-op reimbursements. Keep a meticulous record of the dealership’s marketing activities, including copies of ads, invoices, and proof of placement. This ensures that the dealership’s claims are processed smoothly and promptly.
- Leverage LeadVenture’s Built-In Tools: LeadVenture offers built-in co-op-accessible, downloadable digital reports. These reports are readily available for digital marketing customers and can be accessed through the dealership’s website’s back admin. These tools simplify the dealership’s claim submission process and ensure they have the necessary documentation at their fingertips.
Don’t:
- Ignore Submission Deadlines: OEM co-op programs often have strict deadlines for submitting claims. For instance, New Holland’s co-op program mandates that claims be submitted within 60 days of ad placement. Missing these deadlines could mean forfeiting the dealership’s co-op funds.
- Overlook Brand Compliance: Failure to adhere to OEM brand guidelines can result in denied claims. For example, using unapproved logos or mentioning competitors in the dealership’s ads can disqualify you from receiving reimbursement.
- Neglect Fund Utilization: OEMs may periodically review the dealership’s fund utilization, and underutilization could lead to reduced allocations in the future. Plan and use the dealership’s funds efficiently throughout the year.
Best Practices for Maximizing Co-Op Funds
- Strategic Planning: Start each year with a clear marketing plan that includes how and when you’ll use the dealership’s co-op funds. This proactive approach allows you to allocate funds more effectively and avoid last-minute rushes that could lead to errors or missed opportunities.
- Regular Monitoring: Dealerships should closely monitor their monthly and yearly co-op balance and claim submissions. Many of LeadVenture’s OEM partners actively provide a Co-Op Claim Center on their Dealer Portal—or in collaboration with a Co-Op Claim Partner—where the dealer can track allocations and claim status.
- Pre-Approval of Marketing Materials: Before the dealership launches a new campaign, they should consider submitting marketing materials for pre-approval. As the OEM responsible for pre-approvals, encourage your dealerships to leverage manufacturer-provided marketing assets like imagery or advertising to streamline approvals. This step prevents costly mistakes and ensures your dealerships’ materials meet all co-op requirements.
- Utilize Available Resources: Many OEMs provide resources to help you create compliant ads. LeadVenture has access to many of these OEM-endorsed and approved marketing materials you can leverage at no additional cost.
How to Submit Co-Op Claims
Submitting co-op claims can seem daunting, but it doesn’t have to be. Here’s a step-by-step guide to streamline the process:
- Gather Required Documentation: Ensure you have all necessary documentation, including copies of the advertisements, invoices, and any required disclaimers or logos.
- Access the Co-op Claim Center: The dealer should log into the OEM’s Dealer Portal to access the Co-op Claim Center. Here, the dealership can view available funds, submit claims, and track the status of submissions.
- Submit Claims Promptly: Encourage dealerships to submit claims with the necessary documentation as soon as possible after their marketing activities. Dealerships should know that sticking to submission deadlines is crucial to accepting their claims.
- Follow-up: After submission, dealerships should regularly check the status of their claim. If there are any issues, address them promptly to avoid delays in reimbursement.
LeadVenture’s Role in Simplifying Co-Op Submissions
LeadVenture understands the complexities involved in managing co-op funds and submitting claims. That’s why we’ve integrated co-op accessible, downloadable digital reports into our platforms. These reports are designed to help our dealers document digital marketing efforts and streamline the submission process. Reporting can range from search engine marketing keyword lists to display ad examples.
If your dealerships are unsure how to access these reports or have questions about applying co-op funds toward digital solutions, our team is here to help. Simply Contact Us for assistance.
Conclusion
LeadVenture is proud to partner with over 200 OEMs, many offering co-op reimbursement on essential digital solutions like automated email marketing, social media marketing, and even dealer’s website. It’s important to dealers’ business strategy to utilize OEM co-op funds fully. Managing co-op funds requires mindful planning, adherence to guidelines, and efficient claim submission. By following the best practices outlined in this guide and leveraging LeadVenture’s built-in tools, dealerships can maximize the impact of co-op funds, enhance their marketing efforts, and drive greater success for their dealership.