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The Winning Formula: Key Factors That Make a Dealership Successful

If a dealership wants to be successful, success is not simply achieved by selling the most amount of vehicles at the lowest price, though that does help. A thriving dealership is one that understands focusing solely on sales numbers isn’t the only thing that leads to success, but overall customer satisfaction, operational efficiency, and strategic adaptation are all a very important part of the process.


First and foremost, placing the customer at the center of your selling strategy is the cornerstone of a successful dealership. If each salesperson is trained on how to build a lasting relationship with customer, you create the potential for repeat customers in the future. Successful dealerships prioritize customer experience, ensuring that every interaction, from the website to the showroom to the service center, is positive and memorable. A happy customer is not only likely to return for future purchases but also becomes a valuable advocate, spreading positive word-of-mouth and contributing to the dealership's reputation.


A precise and organized operation is another critical aspect of a thriving dealership. Successful dealerships implement efficient processes that streamline day-to-day operations. This is especially important when it comes to the following dealership processes.



Lead Handling - When executing an analysis for a client, we found their team members were not responding to leads in the same way, nor did they follow the protocols set out for them by their GM. Inventory Management - Keeping your top sellers in stock is equally important as having competitive pricing. Keep an eye on your competition, their inventory and their pricing.


Optimized staffing levels – It’s estimated that on average a salesperson can bring in 10 sales per month. If your goal is to sell 60 vehicles and you only have 4 salespeople, that’s a lot to ask of your team. Make sure you have a team that is well supported. Some of our most successful clients implemented a salary-based sales team so their employees could focus on the experience of their customers, not their pay checks.


Technology – How is your CRM? How about your website? Do you have digital retailing available? While we would never recommend switching things on a whim, it is important to analyze the technology you do have and make sure it is serving your dealership and your customers well. Dealerships that prioritize operational excellence are better equipped to weather economic challenges and adapt to evolving market trends.


 Inventory - A well-maintained inventory is a key differentiator for successful dealerships. Understanding the local market and catering to the preferences of the target demographic are vital in curating an inventory that meets the needs and desires of potential buyers. By offering a wide range of vehicles in a variety of prices, dealerships can attract a broader customer base and increase the likelihood of closing deals.


Marketing – A great marketing strategy can only go so far if the above subjects are not in order. However, if you have a strong process, team, and collection of inventory, a strong marketing and branding campaign will greatly add to the success of a dealership. A recognizable presence not only attracts potential customers but also establishes trust and loyalty. Successful dealerships invest in comprehensive marketing strategies that encompass digital channels, social media, and traditional advertising methods. If you’re consistent across all touchpoints with a cohesive and memorable identity, customers will think of you first when they’re ready to buy a new car.


Last but not least, a successful dealership places a premium on employee satisfaction and training. A knowledgeable and motivated staff contributes to a positive customer experience and builds a culture of excellence within the dealership. Providing ongoing training opportunities ensures that employees stay abreast of industry updates, customer service best practices, and product knowledge, empowering them to provide top-notch service to customers.


The success of a dealership is a multifaceted achievement that combines customer-centric practices, operational efficiency, a diverse inventory, adaptability, effective marketing, and a well-trained workforce. By prioritizing these key factors, dealerships can not only thrive in a competitive market but also build a sustainable foundation for long-term success.

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