Steven Ewing’s “Weighed Advantage†program separates Smyrna, Georgia-based Wade Ford Inc. (No. 5 on the BE Auto Dealers list with $264.4 million in revenues) from competitors. New auto buyers receive free paintless dent repairs, key replacement, and a Wade Ford personal assistant cell phone app. If a customer finds a better deal for the same car in the same color, Wade Ford’s low-price guarantee pays them the difference plus $500. CEO Ewing says he knows the tactics are working because he monitors everything from showroom traffic to percentage of closed deals. “Since we’ve implemented this process, our closing ratio has increased by about 25%,†he says.
The retooled, post-bankruptcy General Motors continues to set a new pace: In March, sales for the manufacturer were up 12% year over year, selling more than 231,000 vehicles in the U.S. that included 100,000 cars and crossovers that achieve an EPA-estimated 30 mpg highway rating or better. The electric hybrid Chevrolet Volt has been the notable standout, posting record domestic and international sales. The model provided a significant sales jolt to GM dealers, like our 2012 Auto Dealer of the Year Bill Perkins Automotive Group (No. 12 on the BE Auto Dealers list with $118.3 million in revenues).
There is a strong case to be made for auto manufacturers to rebuild the number of minority dealers, says Marc Bland, head of diversity and inclusion at Polk, a global automotive market intelligence firm. For one, ethnic markets are outperforming the industry. From 2010 to 2011, new-vehicle registrations by individual customers who bought from dealers grew 14% in the combined African American, Asian, and Hispanic market. The overall market increased 12.6%. “Seven out of every 100 vehicles sold go to African Americans,†Bland says, “and it has been shown that minorities tend to look for and reach out to minority dealers when they are accessible.â€
Advertising Agencies: New Strategies in the Digital Age
African American advertising agencies still search for the right formula to snare accounts and grow business. Although the be group realized nearly 18% revenue growth, conditions in the sector remain rough (be did not choose an Agency of the Year this year). As the economy recovers, corporate dollars remain tight and selective. Competition for the multicultural market grows in ferocity as small boutiques battle general-market giants.
And digital technology and social media have forced firms to rethink operations and services. “It’s a big challenge,†asserts Carol H. Williams, CEO of Emeryville, California-based Carol H. Williams Advertising Inc. (No. 6 on the BE Advertising Agencies list with $18 million in revenues). “Clients are really working to evolve both their philosophical understanding of marketing and their methods to get a handle on the dynamics of content and context in a social media world.â€
Williams also says agencies must adopt new approaches to campaign development. “As the advertising industry continues to consolidate accounts and services, it’s imperative that we address the cultural paradox created by always-on, access-on-demand media. Fresh approaches that are inherently cultural are called for to identify key commonalities as well as the nuances that make campaigns really connect,†she asserts. “Right now, we see a lot of mass market agencies struggling to tack on multicultural to their accounts, with very mixed results. It puts more pressure on agencies that specialize in a given culture to develop compelling, nuanced strategy–pressure I welcome.â€
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