Wholesale: Stay with what works
When business owners think marketing, thoughts often jump to how to attract new customers. But keeping existing customers interested is just as important, if not more so. Particularly on the wholesale side, a customer can make or break your reputation by saying how great — or not — your business is to his or her friends, family and colleagues.
Dan Freeman, president of Automotive Parts Associates, Inc. in Lenexa, Kan., takes that factor into consideration when he rolls out loyalty rewards program initiatives. While the annual free trip destination changes from year to year to prevent the program from growing stale, Freeman notes it's a win-win-win, for his business, his technician reward recipients and the manufacturers who sign on as sponsors.
And rewards programs can go beyond the annual trip program. APA's Harley-Davidson sweepstakes recently ended, for example, and at press time its NASCAR NEXTEL CUP and Busch Series sweepstakes for a chance to win tickets to Kansas Speedway had just begun.
"We just always have found success with these programs, and when something works, you keep with it," Freeman says. "We try to make it a buy-and-win — buy the product to be eligible for the rewards, because the manufacturers have to see the results, too."
Freeman says his marketing department surveys winners each year after the trip to see what works and what does not. Planning the program is nearly a year-round process, he says, noting that the 2008 program will be announced at the Automotive Aftermarket Products Expo (AAPEX). Still, he believes it makes a difference both in keeping existing customers coming back and new customers coming in.
"One thing we look to do with marketing is retention. If we can change someone's buying habits for 30 days, chances are that they will continue to buy from us even after the initiative has ended. The habit's been established," he explains. "That's why our initiatives are almost always a minimum of 30 days."
K.J. Woody, president of Buckhannon, W.Va.-based Atlas Autobody Parts, has found marketing success with motorsports sponsorships. Late-model driver Robbie Scott is Woody's latest benefactor.
"One of our employees is really into track racing, and it's a big portion of our customer base," Woody admits. "Dirt track racing sponsorship just became a natural progression."
Atlas' logo is on Scott's car and on RobbieScottRacing.com. Woody says the marketing also includes an occasional appearance from Scott in the store.
But being associated with a sports figure does carry some risk. Woody stresses that Atlas has been fortunate in choosing its sponsorships, but adds he tries to be careful about whom his shop sponsors. "We only want frontrunners, guys who represent themselves well both professionally and personally."
Craig Sorensen, co-owner of Delta Auto and Appliance in Delta, Utah, notes that marketing isn't as big of an issue when you're 50 miles off the interstate and there are no big box stores in town. But that's not to say it isn't important, and Delta stays aggressive in its promotion and advertising efforts.
"We try a little of everything — we try to be all things to all people and offer whatever we can," Sorensen says.
Everything includes being an appliance store. While the automotive and appliance businesses are separate and split the space, both staffs try to fill in as needed. Sorensen manages the automotive side, which caters to both technicians and consumers.
One marketing vehicle Delta does not use yet is a Web site. But Sorensen notes that creating an Internet presence is definitely part of his plans for the near future.
"I certainly see the benefits to having something online," he says. "I use the Web all the time, and it makes sense to reach out to our customers that way."
Retail: Reach out and educate
Brian Tarnacki, the director of marketing for Federal-Mogul Corporation, which is based in Southfield, Mich., says the Brake and Front End program his company introduced last year has been a success. The point-of-sale kit includes an interactive display as well as an informational Car Care Guide from the Car Care Council.
The program came about from Federal-Mogul's research, which found counter staffs and technicians are looking for better ways to explain wheel end systems to consumers and how the systems affect steering, stopping and safety.
"It's metal and plastic and stands about six feet tall," Tarnacki says of the display. "The idea was to help along that conversation with the technician or counterperson about vehicle maintenance. Plus, the two-sided brochures and Car Care Guide are something to think about when they get home and help that along."
Tarnacki says the Car Care Guide is the same size as a typical vehicle owner's manual, so it can fit in a glove box for easy reference. He adds that while it eventually might be an online resource as well, the print book has its benefits. "It's there at the counter to flip through. It's interactive and personal at that level."
Gary Lemons began Lemons Auto Parts in Madison, N.C., 33 years ago as a one-man operation. Today, it ships parts around the country thanks to its Web site, which went live almost six years ago.
"We haven't been doing a lot of new marketing at all lately because we have about all the customers we can handle," Sales Manager Robert Atkins admits, noting that standbys like phone directory advertising and community efforts still are employed.
LemonsAutoParts.com keeps a simple online presence, focusing on its family roots. Atkins says it has helped the company, especially in selling slow-moving, small-item inventory.
But Syd's Eastside Auto Parts in Yankton, S.D., has gone online in an even bigger way. Marketing Director Doug Peters says that his company has expanded into aftermarket parts in recent years to complement its inventory of quality used parts and assemblies. The business was formerly known as Syd's Eastside Auto Salvage, and when Peters built a company Web site, he expanded it to become Syd's Eastside Auto Parts, Used Cars, Trucks & Rebuilders.
"We use SydsAutoParts.com as our official domain name and Web site address, although we have a variety of other interpretations that will redirect to this site, such as SydsEastside.com, to protect our name and help steer traffic, as well as a few other generalities such as AutoPartsSD.com," he explains.
Before Peters became Syd's marketing director and Web master, he was a freelance Web designer and domain registration service business owner. He still owns a domain registration service, Domain Hostmaster, through which Syd's registers all of its URLs.
"I honestly feel that a solid domain name portfolio is an essential tool in promoting a brand name as well as protecting it," he says.
Peters says Syd's took a methodical approach to marketing the Web presence.
"The first step was creating the Web site in the first place. I tried to use keyword-rich, but friendly and human-oriented language in the domain, the page titles, the page content and in the meta tags for each page," he explains. "I also tried to make each page somewhat unique, though some repetition always seems to be required in getting a point across."
The next step, he says, was announcing the Web site in a press release sent to local media and customers. The third and current step is online promotion, he says.
"Some of that promotion is free; most of it takes a significant investment of time," Peters admits. "Even the free, 'no charge whatsoever' channels to promote a business online often require an investment of time to actually perform the promotion. 'Free' directories are not free if they require a reciprocal link back to be listed, for example — even though we do use them and love them."
Syd's also records where, when and how the site is getting visitors.
"It is important to do this so that you can analyze your efforts," Peters explains. "You will, of course, want to continue to do what works. This means that you will have to also keep an eye on your Web site logs (on the back end) so that you can see who is sending you traffic."
That said, Peters warns about being careful implementing online marketing plans. "There are what I call 'evil link exchanges,' where so-called search engine optimizers or link builders will try to take advantage of your good nature, or your desire to trade links."
He also avoids using promotion directories that charge a premium price and don't link directly to his site. "But most traffic at directories and link exchanges are usually other businesses and people leaving a direct link," he says. "This is why niche and regional directories are often the best, because businesses in the same niche or region may well use that directory because they are more effective than a general search engine that delivers spammy or obscure results."
To avoid the runaround of a third party, Peters set up YanktonShopping.net himself as a portal for local tourism, shopping and business listings. "We hope that it might be an effective tool for the residents. Certainly, it can't hurt, and it uses free software, in this case, software that's available at PHPLinkDirectory.com."
Peters not only established a news section for the site, but an automotive blog on behalf of Syd's. "We also manage a couple of automotive-related Google Groups, and we started a search engine dedicated to automotive and motorsports results at Automotive-Search.net. We try to use as many such channels as possible.
"But the best, or worst, of all marketing strategy is word-of-mouth, and this will be a direct reflection of how your customers are treated," Peters concludes. "In fact, the ultimate definition of any brand is what the customer thinks of it. It is your customers who make or break your brand."
