For car dealerships, tax season promotions are nothing new. The 15th of April has long been seen as a day of opportunity for clever dealers who may optimize their earning potential through innovative marketing techniques. This is because you're not just selling vehicles, you're also selling credit and buy-here-pay-here (BHPH) dealers are in a unique position to benefit from tax refund campaigns. So how can you make the most of it? During tax season, what marketing products perform best for BHPH operations?
The first thing to understand about BHPH tax time promotions is that dealerships don't need to sacrifice their tax refund customers to target new buyers. Contrary to popular belief, BHPH dealers can earn the best of both worlds’ business by creating an integrated marketing strategy that appeals to multiple buyer personas. The first persona is a customer who has purchased an automobile from a BHPH dealer at least once in the past. These customers are already familiar with the dealership, the process, and the BHPH offers. By targeting this customer with effective BHPH marketing, you can be certain that the vehicle will sell.
The second persona is a new buyer who has never purchased a car from a BHPH dealer. These customers require a lot of hand-holding to ensure you get the sale because they don't know what to expect from your dealership. Here are some pro tips for maximizing tax refund marketing during BHPH tax season.
BHPH TAX SEASON PROMOTIONS PRO TIPS
1. Partner with Local Accounting Firms
By partnering with local accounting firms, your dealership can reach two distinct buyer personas during the BHPH tax season. First, you’ll want to advertise in accounting firm newsletters. This way you're indirectly targeting tax refund buyers preparing their returns. Second, you will attract BHPH buyers who typically file early in the year by teaming up with accounting firms for promotions and giveaways.
2. Match Down Payments
Next to zero-percent financing, matching down payments is the next best thing that BHPH dealers can offer in terms of tax season marketing. Matching down payments gets new buyers into the seats of your vehicles and onto the road to homeownership faster than ever before. While BHPH buyers are used to being asked for a portion of their tax refund upfront, you'll be able to capitalize on early filers by offering them an additional discount if they're willing to forgo their refund during tax season.
3. Have Inventory Ready
As a BHPH dealer, if you have to convert new tax filers into refund customers, you will want them to place their orders as quickly as possible. Because of this, you must have inventory ready and available for those who want to drive away in a vehicle immediately. As soon as new tax filers get their refunds, they'll do everything they can to purchase a car or truck before the money runs out.
4. Have Processes Ready
When it comes to producing and managing tax refund marketing campaigns, having processes in place is key. This can take the form of automating the entire processor or at the very least, having a system that allows your staff to respond to customer inquiries quickly and consistently. Whether it's brand new customers or returning customers, BHPHs need something reliable to consistently reduce customer service interruptions during tax season.
5. Include A Gift
Everybody likes something for free or for little-to-no cost, which is especially true for individuals receiving tax refunds. When running tax refund promotions, it's a good idea to offer an enticing gift as part of the deal. This could be anything from a free tank of gas to an oil change. By adding a gift with your discount, you can further entice new customers and give returning customers more incentive to buy now.
6. Have Something for Everyone
Regardless of who you're marketing to during tax season, you need to have something they love and something they want. This is especially true for BHPH dealers trying to convert new buyers into returning customers as well as bringing returning customers back again. Whether it's a free loaner car or free gas, providing great customer service can pay off down the road when you're trying to convert new customers into repeating ones.
6. Start Early
Because it takes time to build a loyal and repeating customer base, BHPH dealers should begin to plan their promotions as early as possible. For example, suppose you're running a promotion for an oil change, and you know that many new BHPH customers will receive their refunds in February. In that case, you should send out emails, texts, and direct mailers in January alerting potential tax refund buyers of the opportunity.