In the world of evolving technology and AI-powered everything, it should be no shock that RV dealership values are shifting with the trends. Today, more than ever before, intangible assets such as customer experience or digital marketing efforts are affecting dealership valuations. Causing RV dealers across the US are realigning and strategizing for future dealership buy-sell transactions.
If you’re an RV dealership owner, in the position of selling your business, or a buyer looking to buy a business with added value, this is the guide for you. Here, we’ll cover all the latest digital marketing and customer experience trends affecting RV dealership values. From why it matters to simple strategies to implement, we’ll dive deep into driving profitability online.
Keep reading for a dealership advisor’s take on how digital marketing and customer experience can boost your dealership’s valuation.
The Evolving Dealership Valuation Landscape
Historically, RV dealership values focused primarily on financial performance and tangible assets. However, as the digital and online world expands, so does its effect on RV dealership valuations. In today’s landscape, buyers are increasingly interested in a dealership’s digital footprint and customer satisfaction metrics. This shows an overall shift to valuing the direct correlation to sustainable profitability and growth potential.
How Digital Marketing & Customer Experience Impact Dealership Valuation
Buyers are more savvy than ever and look beyond traditional valuation metrics, like inventory levels, real estate, or financial performance. They’re increasingly examining a dealership’s digital marketing capabilities and customer experience reputation as growth potential and future performance indicators.
These modern value drivers reflect a dealership’s ability to acquire new customers efficiently and build meaningful, long-lasting relationships to generate sustainable revenue streams. So, before we discuss the strategies we recommend implementing, let’s better understand how these factors impact worth and influence valuation.
How Digital Marketing Impacts Value
Bolstering our dealership’s digital marketing presence helps demonstrate it’s ability to:
- Build a recognizable brand
- Generate consistent leads with lower acquisition costs
- Seamlessly adapt to changing consumer shopping preferences
- Decrease dependency on third-party lead providers
All in all, digital marketing leads straight to revenue, which is a highly desirable trait for future buyers and sellers looking to maximize value.
How Customer Experience Impacts Value
On the flip side, investing in the customer experience also impacts value as it translates to:
- Improved customer loyalty and retention = repeat business.
- Higher CSI scores, which manufacturers increasingly tied to incentives
- Stronger referral networks and positive word-of-mouth
- Better online reputation and reviews
- Reduced marketing costs through customer loyalty
Because customers are the primary source for generating revenue, they, too, are highly valued in the evolving landscape of dealership valuations.
Top 5 Strategies to Consider Implementing for Improved Valuations
As an RV dealership owner, you’re an expert in your field, not digital marketing or customer experience. To help, we’ve compiled the latest trends across the digital marketing and customer experience sectors that can be easily implemented to increase RV dealership values.
1. Develop a Digital Marketing Infrastructure
Investing in a digital marketing partner or digital marketing stack will improve your online presence and lead generation exponentially. These stacks typically include:
- An optimized website, that’s routinely updates
- An SEO strategy
- Paid search campaigns
- Social media presence and paid campaigns
To ensure you’re getting value, document processes, performance metrics, and ROI, especially to demonstrate the value of these assets to future potential buyers.
2. Improve Customer Data Management
A sophisticated CRM system tracks the complete customer journey and proves to buyers that a process is in place to nurture crucial relationships for repeat revenue. Many systems also incorporate service modules demonstrating retention in additional streams and upsell opportunities. Together, these are valuable assets in the current state of acquisition discussions.
3. Implement Reputation Management
Of course, it’s not just relationships you need to nurture and maintain, but reputation as well. Strong reputation management systems show buyers you have processes that ensure positive reinforcement for online searches and traffic. To do so, start by streamlining the acts of soliciting, monitoring, and responding to customer reviews across various platforms.
4. Create a Seamless Omnichannel Experience
Let’s face it. Much of the retail experience will continue to involve both online and in-store experiences. In today’s day and age, many customer journeys begin online and complete the sale in-store, so creating a seamless transition is crucial. This, again, ensures smooth revenue generation for the buyers and impresses consumers with forward-thinking and adaptable service.
5. Invest in Training and Culture Development
Last but not least, in sales, your people or team often seal the deal and win the repeat buy. So, increasingly, between online support and in-person touch, RV dealerships are investing in training that develops the culture that the consumer desires. A documented, replicable culture of excellent customer care represents a transferable asset that increases dealership value.
The Final Word: Dealership Advisors for Valuation Support
As you’ve learned today, the factors affecting valuation are ever-evolving. So, if you’re considering a dealership buy-sell transaction in the near future, it’s never too early to begin working with a dealership advisor. Implementing these strategies is just the start – dealership advisors help you navigate the current market and maximize valuation across departments.
With years of experience in dealership buy-sell transactions, RVBS helps owners maximize their valuation and seamlessly navigate the selling or buying process. To start, reach out to our expert team now and begin discussing your dealership’s future.
Before you go, keep learning more about the current state of the RV dealership buy-sell space, with RVBS’ dealership news. Check out our complete collection of resources here, and while you’re there be sure to sign up for the RVBS newsletter to stay up to day with all the latest.
Roger L. Nuttall served as President of Camping World, Inc. from January 2011. Prior to that, he was the Chief Operating Officer of FreedomRoads, LLC from January 2009 to January 2011, and the Executive Vice President and Chief Financial Officer of FreedomRoads, LLC from November 2003 to December 2015. From 1981 to 1983, Mr. Nuttall was a partner at McKay, Nuttall, and Reid, an accounting and consulting firm. Before that, he held various staff and management positions at Grant Thornton LLP from 1974 to 1981. From 1983 to 2003, Mr. Nuttall served as Chief Financial Officer and board member of Blaine Jensen & Sons, Inc., a multi-dealership RV company. He received a B.A. from Weber State University.
Mike has almost 30 years’ experience in the Recreational Vehicle (RV) Industry and provides advisory and consulting services to clients within that industry.
Scott Degnan is the Partner and Co-founder of RV Business Solutions and President of Degnan Management Group, Inc., a consulting firm.
Dom Bookman is the Chief Operating Officer and Investor Relations lead at RV Business Solutions. With 12 years of experience in the tech industry, Dom is a serial entrepreneur specializing in business development, marketing, and growth strategies for leading brands. He has successfully piloted startups and facilitated multiple exits for early-stage companies.