Women buy 54% of the cars in the United States, and influence 84% of all vehicle purchase decisions. Yet most women dread the car buying experience, with good reason. Study after study shows that women are often ignored, patronized and/or charged more than men when buying a car.
What would happen if we turned the tables on this situation? How much more profit could a dealership create by embracing female car buyers through a consistent, personalized marketing strategy and an updated showroom experience?
A long history that reinforces the negative car dealership stereotype.
In a study conducted by two economists in Chicago, car dealers quoted higher prices to a test group of women than to a similar group of men, even when those women came to the dealership armed with the same information as the men, and followed the same “script” as the men.
This disturbing study, published in the peer-reviewed INFORMS journal Marketing Science, found that women are more likely to pay more for the same interest rates than men.
A recent study from the consumer group Growth for Knowledge suggests that excessive price gouging sours consumers on not just a particular dealership, but the car brand as a whole.
Additionally, a study found that female buyers paid a “pink tax” markup for auto loans, with women paying an average of 1% more and up to 39.4% in some cases compared to men.
Why does this happen?
Many car salespeople believe that women don’t know much about cars or the car buying process, and then try to take advantage of that. But the majority of women are informed and savvy, and they often encounter altogether different treatment from men and have a harder time getting what they want.
While it’s clear that the industry has work to do to improve a female car buyer’s experience, there are steps to take through culture, awareness, training and incorporating a thoughtful marketing strategy.
Contributing factor: The lack of female dealership employees.
When women are present in the dealership, they often create an environment that allows customers to feel less pressure and more at ease. They encourage buyers to take their time, understand their needs, and make the best decision for them without feeling rushed or pressured.
Women salespeople often have a better understanding of the features that appeal to women. From safety features to in-car technology, seating configuration to storage capacity, they have a unique understanding of these needs, leading to a better overall buying experience.
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Understanding and catering to the diverse needs of your customer base is crucial.
Over my 25+ year career managing dealerships, I’ve observed a significant shift in the market demographics, with female car buyers becoming increasingly influential.
The female demographic is discerning, well-informed, and looks for a buying experience that is not just transactional but also relational and respectful. To tap into this powerful segment, dealerships must adopt a multifaceted marketing approach, leveraging social media, email marketing, digital ads, events, and loyalty programs. Here’s how:
1. Social Media: Building a Community
Social media is not just a platform for marketing; it’s a community space where potential female buyers look for relatable content, reviews, and recommendations. To attract this demographic:
- Create Relatable Content: Share stories of female employees, customers, or influencers who use your vehicles in their daily lives. Highlight features that matter most to your female audience, such as safety, technology, and comfort.
- Engage Actively: Respond to comments, messages, and reviews promptly. Engagement shows that you value their opinions and are ready to offer support.
- Use Visuals and Videos: Video enables an effective way for retailers to engage with female buyers in a transparent and personal way. High-quality images, 360-degree videos, and virtual tours of cars significantly enhance their shopping experience.
2. Email Marketing: Personalized Communication
Email marketing allows for direct and personalized communication with potential buyers. To make it effective:
- Segment Your Audience: Not all female buyers have the same preferences. Use data (and AI if it’s available) to segment your audience and tailor your messages accordingly.
- Provide Value: Beyond promotions, include tips on vehicle maintenance, safety features, and the latest automotive technology. Educational content positions your dealership as a trusted advisor.
- Celebrate Milestones: Acknowledge special occasions like birthdays or purchase anniversaries with personalized offers or messages. This personal touch fosters loyalty and repeat business.
3. Digital Ads: Targeted and Inclusive
Digital advertising offers precision targeting capabilities that traditional media cannot match. To attract female buyers:
- Use Inclusive Messaging: Ensure your ads feature diverse groups of women in various roles, avoiding stereotypes. Highlight features and benefits that resonate with their needs and lifestyles.
- Leverage Retargeting: Use retargeting ads to stay top of mind with women who have visited your website but haven’t made a purchase. Show them relevant content based on their interests and browsing behavior.
- Optimize for Mobile: Women are more likely to use mobile devices for research and shopping. Ensure your ads and landing pages are mobile-friendly for a seamless experience.Pro-tip: provide texting to salespeople on your website. I recently came across a General Manager who was vehemently opposed to this tactic. He said, “We sell cars not people.” Hmmmm, I beg to differ.
4. Events: Creating Experiential Opportunities
Events provide a unique opportunity to engage with potential female buyers in a relaxed and informative setting. To leverage events:
- Host Women-Focused Workshops: Offer workshops on car buying, car maintenance, safety features, or new car technology. These events can empower women with knowledge and demonstrate your dealership’s commitment to their needs.
- Partner with Local Businesses: Collaborate with women-led or women-focused local businesses for cross-promotional events. This can broaden your reach and build community goodwill. I know a dealer who partners with a local female-run dog and cat rescue and they host an adoption event every month. It has been VERY successful (for the animals and the dealer).
- Create a Comfortable Environment: Ensure your events are welcoming and inclusive, with a focus on creating a comfortable and pressure-free experience for women. The effect of providing delicious food or snacks cannot be overestimated…and this works for all humans, not just women.
5. Loyalty Program: Rewarding Repeat Business
A loyalty program can turn a one-time buyer into a lifelong customer. To design a loyalty program that appeals to female buyers:
- Offer Meaningful Rewards: Beyond discounts, consider rewards like free maintenance services, car washes, or exclusive access to new models and events.
- Personalize the Experience: Use data (and AI if it’s available) to understand each customer’s preferences and tailor your loyalty program communications and offers accordingly.
- Promote Community Involvement: Offer points or rewards for participation in community service or environmental initiatives. This aligns with values important to many women and enhances your dealership’s reputation.
Conclusion
Attracting female car buyers requires a thoughtful, respectful, and multifaceted marketing strategy. By leveraging social media, email marketing, digital ads, events, and a loyalty program, dealerships can create a buying experience that resonates with women.
The goal is not just to sell cars but to build relationships and trust with female buyers, turning them into loyal customers and brand advocates. With these strategies, your dealership can tap into the vast potential of the female market, driving sales and fostering a positive community around your organization
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