Finding more ways to offer deals to consumers increases the likelihood that they will want to come back to your shop. Here is a closer look at how a few dealerships attract newcomers while maintaining close ties with existing customers.

Let’s admit it. Most of our wallets and purses right now are filled with large stacks of plastic, more so than cash or cheques these days. People are collecting points cards, gas cards, gift cards, coupons, and credit cards complete with added perks. More and more companies in almost every corner of the consumer industry are offering tempting rewards to customers in order to maintain a competitive edge. For dealers of powersports, this trend is even more important to jump onto when dealing in fast and fun toys not typically considered essential to most households.

If your company doesn’t already have a consumer incentive package in which to attract first time buyers or tempt back loyal customers, there has never been a better time to offer customers a little more – a little something extra.

People like being rewarded, particularly when their every spending decision now counts. Highlighting this fact is the rise in the amount of transactions in 2008 carried though with a credit or debit card that offer added bonuses beyond the convenience of not carrying cash. According to Vesdia, a provider of loyalty marketing services, in their report called Extra rewards set to drive 2008 holiday sales, “savvy consumers are increasingly aware of the special offers available to them and intend to patronize merchants that can help maximize their spending power.” Vesdia has reported “a sharp increase in consumer spending during the past nine months for shoppers who use cards that offer additional rewards [such as Aeroplan rewards, Air Miles, and Petro Points].”

A points system may not be as effective for larger, less frequent transactions. So, the powersports industry has had to think beyond rewards system that give away too much up front. Some incentives are too large for smaller dealers who can’t afford to throw away money. Fortunately, other strategies exist, and they all follow the general rules of marketing and are based on that old saying David Carleton, a marketing specialist and CEO of Power Sport Success, quotes: “Business goes where business is invited, and stays where it is appreciated.”

On his website and with his various other marketing tools, Carleton offers up-to-date marketing advice for even the smallest of dealers. He says it’s all about maintaining regular public relations with your existing customers, and turning first time buyers into loyal clients.

“The recent economic slowdown has brought increased competition to the ATV industry. And with that, dealers across North America have described their sales as ‘flat.’ Powersports dealers should be looking for low cost, high impact marketing activities to drive business to their stores,” Carleton says.

If times are too tough, it is fine to start out small. People can pick up on honest efforts. There are cost-effective ways in which you can increase your incentive packages. Simple strategies like learning more about your existing customers will give insight on what type of demographics your incentives can better target, and will also help you cater special promotions towards those already in a database.

Database marketing is “one of the most effective and cost-efficient ways to add profits to the bottom line,” Carleton says. He suggests dealerships collect customer data at the point of sale to build a customer database, and with the information, they can start “creating targeted offers for specific customer groups,” or other promotional pitches like sending out special birthday promotions or service reminders. The dentists are using the post office, and so can powersports dealers. Showing your customers that you care is the simplest way to give them the incentive to come back.

Some dealerships can afford to cut prices back. For example, at Apex Powersports in Conneticut, US, they use the seasonal sale incentive to attract spikes of customers all at once. It’s called the ATV Season To Ride Sales Event, where customers are offered various rebates on seasonal clearance sales, “available for a limited time.”

But, routinely shaving off hundreds of dollars in profit may not sound tempting or even feasible to smaller dealers. Why not try a lottery style incentive? Giving customers eligibility into a draw for a larger prize is a simple way to give away without giving too much. At Western Powersports in Langley, BC, people are encouraged sign up for an electronic newsletter via their website. Anyone who subscribes is eligible for a free dinner draw. Or, instead of taking a large sum off of the ticket price, you can add discounted service packages, offer free extended warranties, or give away a free gas card. These moves will be a small investment towards having a customer willing to come up with the initial sales figure for the bike.

If space allows, borrow at tip from both Wesern Powersports and Revoluzione in Calgary, AB, who offer the storage of street bikes during winter months, a tempting offer for any would-be customers living in group housing. Revoluzione also has free 30 minute demos in which a driver will take customers out to show them the bells and whistles of the Monster 696 or Multistrada 11005. Or, customers can opt to rent a Ducati bike for the day. Offering up models for a rental fee could help bring more consistent revenue, and act as a hidden incentive towards future purchases. Any favour offered to a consumer is viewed as an added incentive for patronage.

Marq Smith, owner of Western Powersports, believes in customer incentives and relations before advertising.“Billboards and advertising in general is tough to do without spending a lot,” Smith says. “Generally it is a waste of money.” The best thing you can do is establish a good reputation by word of mouth, Smith says. “I know a lot of people say this but it is absolutely true, especially these days.”

The Internet helps with this. Smith says it’s a good idea to get messages out to customers via email, particularly to follow-up and find out if a recent buyer is happy. But, quality customer service is “one thing you don’t get when you use the Internet to make purchases,” says Smith. Online dealers “will sell you a jacket but they are not concerned whether or not it fits.” So encouraging customers to show up to your store will best satisfy everyone involved.

When it comes to attracting customers, it’s the usual, “service the heck out of people,” Smith says with a laugh. “We make sure they’re happy throughout the entire process. We try hard,” he adds. Western Powersports offer up better servicing packages in the winter months, when people are more inclined to stow their bike and forget about it until the spring. Smith also suggests that during these slow months right after Christmas, dealers go beyond simply selling units, and begin selling accessories.

Biedas dealership in Fenwick, Ontario, can offer more than just accessories and units for sale. Biedas has an entire playground for customers. Jeff Sewell, parts manager of Biedas, says having surrounding amenities like a manmade lake, an ATV test track, and a paved oval track for the new Spyders and gokarts help Biedas encourage first time buyers. Customers have free range to test out anything they have their eye on. A no pressure sales approach such as encouraging people to “go try everyone else and then come try ours” helps customers feel at ease about making the right choice. Biedas is also involved with the community to showcase their products in city parades as well as hire people with disabilities to pitch in on the weekends.

In more general terms, Biedas offers extended three year bumper-tobumper warranty of most purchases, onsite bank financing, and a training course to help buyers brush up on safety skills. Some courses are primarily for kids who are just starting out. Kids complete the course ending with a test, and can receive certification to enjoy their new toy. Having these types of services available for families can help expand your reach.

In all of these efforts to offer incentives, don’t forget the simplest way to stay competitive these days. Although not a direct transaction incentive, a welldesigned website can often be enough incentive for the right potential buyer. People may not be making many direct orders online just yet, but they are shopping around and comparing prices via Internet. An up-to-date and easy to navigate website that successfully shows off products and current deals be helpful in holding a would-be customer’s attention. It could be what gets them into your store in the first place. Vesdia reports that, “while online merchandising is important, and online shopping appeals to a large segment of the population, more consumers appear to be conducting research online and then making their purchases at bricksand- mortar stores that offer better prices and reward incentives.”

So, use technology to your advantage and bring curious customers forward, and try one or more of these added incentives to keep their attention. CPT