LeadVenture's Key Strategies for OEMs to Retain Customer Engagement
Manufacturers across many verticals, like power equipment, recreation, and motorsports, face a significant challenge: losing customers to competing brands in an ever-evolving market. Shoppers often start with a brand they trust that carries history or familial nostalgia, only to purchase from another brand by the end of their shopping journey. This phenomenon is common on dealership websites, which can inadvertently steer customers toward other manufacturers. Understanding why this happens and how to address it is crucial for any manufacturer. By proactively implementing strategies, you can retain and grow your customer base, staying ahead in the competitive market.
The Problem: Dealership Websites
Dealership websites, the primary touchpoint for shoppers buying wholesale goods or equipment such as motorcycles, tractors, trailers, lawnmowers, or boats, play a significant role in customer behavior. These websites are tailored to the dealership and offer various options under one virtual roof, often representing multiple brands. While this design strategy and variety can be highly advantageous for dealerships, it can be a detrimental representation of OEMs, as it can inadvertently steer customers toward competing manufacturers.
On these sites, customers are encouraged to explore different brands and models. This “choose your own adventure” approach can lead to a shopper starting with one brand and purchasing a product from another. The extensive choices and comparative tools available on dealership websites can make it easy for customers to shift their preferences based on price, features, or availability.
Why Customers Switch
- Product Comparison: When customers compare products from various brands side by side, they may find features or price points that appeal more to them than their initial choice.
- Availability: If a customer’s preferred brand does not have the desired model in stock, they might opt for a competitor that can fulfill their needs immediately.
- Marketing and Promotions: Competing brands might offer more attractive promotions or better financing options, influencing customers’ decisions.
Strategies to Retain Customers
To mitigate this issue, OEMs must implement strategies that keep customers engaged and loyal throughout their shopping journey.
- Dealer Digital Space: Creating a digital space within your dealership’s website enables them to direct shoppers to a central space (outside your corporate website), ensuring your brand stands out on dealership websites. Work with dealers to create dedicated sections for your products, complete with detailed descriptions, high-quality images, and customer reviews.
- Exclusive Features and Benefits: Highlight your products’ unique features and benefits that set them apart from the competition. Provide detailed comparisons showing why your brand is the best choice.
- Inventory Management: Collaborate with your dealerships to ensure they have a healthy variety and quantity of inventory. This reduces the chances of customers switching brands due to unavailability.
- Customer Engagement: Use targeted marketing strategies to engage potential customers with your brand. Follow-up emails, personalized recommendations, and exclusive offers can help maintain their interest.
- Dealer Training: Educate dealers about your brand’s value propositions and competitive advantages. This knowledge enables them to promote your products over competitors’ products better.
- Feedback Mechanisms: Implement systems to gather feedback from customers who switch to other brands. Understanding their reasons can provide insights to improve your offerings and customer retention strategies.
Conclusion
Losing customers to competing brands is a significant challenge for power equipment and recreational manufacturers. However, OEMs can enhance customer retention by understanding the dynamics of dealership websites and implementing strategic measures. A strong brand presence, effective customer engagement, and robust dealer partnerships are essential in ensuring that shoppers who start with your brand end up making their purchase with you. By focusing on these areas, manufacturers can better compete in the marketplace and drive long-term loyalty.