How Toyota Dealerships Can Survive Business Impact of Massive Recall
February 4, 2010
With thousands of Toyota dealerships already struggling amidst
decreased consumer spending and a national credit crunch, Toyota's
massive 2.3 million vehicle recall has store owners nationwide bracing
for financial loss and long-term backlash in the first quarter of
fiscal year 2010.
The recall, which included many of Toyota's top selling models such as Camry and Corolla, has also prompted the manufacturer to halt production until the potentially fatal issue of sticking gas pedals is resolved.
"While Toyota dealers are understandably panicked and bracing for a big hit following the recall, dealers still have a limited window of opportunity to mitigate financial loss in their local stores." says National Automotive Marketing Experts and the authors of Gravitational Marketing: The Science of Attracting Customers, Jimmy Vee and Travis Miller.
According to Miller and Vee, there are five immediate steps dealerships can take to ride out Toyota's PR nightmare and financial storm this year:
- Keep Marketing: It's a natural reaction to halt marketing when things look bad. However, this can open the door for more financial problems according to Miller and Vee. "Dealers that halt marketing create more fear and uncertainty in the mind of the consumer. Instead, it's important to appear active and busy—especially as Ford and GM prepare to step up their advertising campaigns in the near future"
- Become a trusted resource for Toyota owners by creating and disseminating information: "Whether it's in the form of a free report, a toll-free hotline or videos posted on the dealer website, it's critical to give out free information addressing consumer fears and concerns regarding the product," says Miller and Vee.
- Be available for the local press: According to Miller and Vee, "Dealerships should commit to becoming a trusted resource for the press to help the public truly understand the situation, while simultaneously mitigating some of the fear and distrust in the Toyota brand right now."
- Host a "town hall" style seminar at the dealership for owners and residents: As Vee and Miller note, "Open communication is critical in helping consumers feel safe with the brand—and your store—once the issues that prompted the recall are resolved".
- Use social media platforms to communicate and educate your community:
Facebook, Twitter, blogs and video are a great way to open dialogue
and engage consumers on their own turf, according to Miller and Vee.
"Social media is the cheapest, easiest and fastest way for dealers to
stay on top of questions from the community and become a trusted
resource in the face of Toyota's current storm."
