Transforming a dealership group Into a... TikTok famous powerhouse!

Welcome to another edition of expert insights from the Car Dealership Guy Podcast, a reading companion and episode recap designed to take you a level deeper into the conversation.

In this edition Ryan Rohrman, CEO of Rohrman Automotive Group, discusses the evolution of dealership marketing and the new skills and technologies needed to attract and retain today’s car buyers. Rohrman Automotive started in Indiana and has grown to include 22 storefronts and a brand portfolio consisting of Honda, Toyota, Lexus, Kia, Hyundai, Nissan, Infiniti, and Volkswagen.

You can stream the full episode now on YouTube, Spotify, or Apple.

1. Ryan’s entry into the car business.

Ryan is a third-generation dealer, continuing the family business well after it started in the late 60s. The oil embargoes of the 70s helped push sales of Japanese models due to their comparative fuel efficiency, benefiting his grandfather’s fledgling auto group. By the time Ryan turned 21, he had already gathered multiple years of experience in various departments on the preowned side. While it took some time to decide whether he wanted to officially join the retail automotive sector, he eventually caved under pressure from his grandfather, which led to his first taste of the new car business.

2. Navigating the transition from used to new car sales.

Shifting from the used car side to selling new vehicles took some adjusting. For instance, business strategy is far more important and complicated when selling new models. While preowned dealers are focused solely on acquiring and exiting inventory, new car sales involve multiple businesses, including parts and service. Used car sales are also focused more on customer acquisition, with retention being a priority mainly for new car dealers. Ryan notes the two sides of the business are difficult to compare.

3. Customer communication.

Gauging and improving the customer experience requires an understanding of what consumers want. To obtain this knowledge, Ryan believes it essential to constantly survey and conduct outreach to shoppers to learn more about their preferences and frustrations when it comes to the car buying process. This is accomplished through multiple ways. For instance, conversations with repeat customers can provide helpful information. Rohrman has also set up a phone line that allows the group to connect with shoppers and obtain data.

4. The link between tech and training.

One of the biggest struggles retailers face is marrying their digital and in-store experiences, since many lack an understanding of how to use their data. This results in wasted time at the dealership, with customers often being forced to repeat steps they completed online even though their salesperson has the information needed to avoid this frustration. The key to overcoming this pain point is training. Ryan gives the example of preparing a car for a test drive before a customer’s appointment. Educating staff on how to apply technology helps optimize the customer experience, reducing friction.

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5. Investing in training.

To ensure employees are trained to use new technologies, Rohrman Automotive created its own Learning Management System (LMS) from scratch, creating its own company with a team that specializes in creating educational content. Programs that re-familiarize staff members with the best processes are also helpful, such as Rohrman Recharge, a multi-week event that ensures employees are still up to date on their education. Such events can also provide materials to use in an LMS.

6. AI’s role in the dealership.

While some are worried about the implications of artificial intelligence, Ryan has embraced it thanks to the benefits it creates for business. Salespeople equipped with AI would improve their performance, he explains. While he acknowledges that the technology will replace jobs, he also believes it will create new roles and create more value for dealerships, potentially allowing them to hire additional employees or employees of higher quality. Instant AI chats can also improve the customer experience, boosting communication speed and allowing dealerships to operate around the clock.

7. Combatting desensitization.

Since buying a car is such a monumental decision in a typical person’s life, dealerships can rub customers the wrong way if they fail to show sincerity or care during the sales process. Unfortunately for those in the industry, it’s all too easy to become complacent in the work they do. “Whenever I train with my salespeople, I always tell them, you guys need to be cautious that you don't become desensitized to what you do for a living,” Ryan explains. “Do you realize how many times someone buys a car in their lifetime? It's like seven to eight times in their lifetime…Some of you do it three times a month.” 

8. The rise of car sales influencers.

Selling one car to a customer can be accomplished through typical dealership marketing initiatives, but selling multiple vehicles to one person requires a successful salesperson who can establish a long-term relationship. What many may not know is that sales staff can leverage their own personal platform (on social media) to form these relationships, driving results both for themselves and their business. In fact, it’s becoming increasingly crucial for dealerships to take advantage of this and encourage their employees to create online content. Ryan explains that mass marketing simply isn’t enough to bring customers back anymore: influencer marketing is much more personable and far more effective at establishing long-term relationships. However, influencers must take care to carve their own niche and avoid coming across as fake.

9. Mitigating affordability challenges.

Ryan notes that combatting affordability can be difficult since dealers have limited control over the price of vehicles. He estimates that the current monthly payment for Rohrman’s customers currently averages between $600 and $700. However, while buyers may not be happy with car prices, retailers can still ensure they don’t regret their purchase by building rapport with them and providing a high-quality shopping experience. 

10. Data and CDPs.

Data is king when it comes to improving a dealership’s marketing effectiveness. Unfortunately, the car industry is far behind others when it comes to leveraging this critical tool. That’s starting to change, however. Ryan notes that Rohrman is in the process of launching its own customer data platform (CDP), a massive database of buyer information that updates in real time based on a shopper’s activity. One advantage of a CDP is its ability to detect and categorize audience types. “You got to remember, what makes a CDP work is…an audience type,” he notes. “And there are legitimately unlimited audience types.” By identifying these audience types and targeting them with more personalized marketing, retailers can drive far more results than they could using other tools. 

You can stream the full episode now on YouTube, Spotify, or Apple.

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