How Can I Create & Approach A Branding Partnership To Sell Advertising For My Vehicle Lease/Rent Subscription Model?

How Can I Create & Approach A Branding Partnership To Sell Advertising For My Vehicle Lease/Rent Subscription Model?

  

Vehicle Subscriptions In the most basic case, vehicle subscriptions revolve around the idea of temporary ownership of a common mobility service where customers have access to a vehicle every month. Vehicle subscription programs seem to be ideal for the average customer, who is expected to want to avoid the cumbersome process of owning, renting or leasing a car. In addition to being more flexible, subscription programs for vehicles are perceived as more cost-effective than traditional car rentals, rentals or direct purchases. [Sources: 13] 

    

Car rental companies can retain their existing customers and attract more business by providing additional customer service services such as roadside assistance, vehicle replacement and more. By using marketing efforts you can make your customers understand that your rental car service is better than your competitors. [Sources: 10] 

    

Many car rental portals are central marketplaces in which the services of different car rental companies can be compared to each other to help customers make an informed decision. Car rental companies are often set up by local businesses, municipalities, car companies and customers to meet in one place. Most of them offer services for different types of vehicles. [Sources: 10] 

    

A uniform brand identity to promote your business makes you look professional and helps you win new customers. Once your target customers and brand identity are under your belt, you can begin building the core marketing components of your small business, including your website, blog, email tools, conversion tools and social media accounts. [Sources: 1] 

    

Marketing plays an important role in the success of any rental car company, but only if they take the right marketing approach and implement it well. In addition to researching your target customers before starting the company, you also need to create the basis for a strong brand identity. Brand building is about convincing customers to believe in your product or service and to buy it. [Sources: 1, 10, 12] 

    

The direct-to-consumer business model is based on a brand or company's direct access to its end customer. Since the company is able to tap its customers without intermediaries, this model works in favour of the company itself. Unlike the business-consumer model (B2C), which is sold directly to individual customers, the consumer-business model (C2B) offers users services through the company, such as customer reviews, influencer marketing, etc. [Sources: 6, 9] 

    

While the majority of users receive free services, only a small percentage of these users become paying customers through the marketing and distribution funnel. The growth of online companies and advertising models has led to a distribution of sales costs, whereby the turnover from advertising is generated by the division of the company offering the service or digital property on which the advertising appears. [Sources: 6, 8] 

    

Subscription services offer their customers a new car that is less than a year old. This means the ability to sell or lease a new or used car via a subscription enables dealers to sell more of the same customers and reach a whole new customer base. [Sources: 2, 4] 

    

Leasing is one of the best ways to package and market a soft service offering, especially as manufacturers begin to rely more on short-term leasing programs to reduce inventory spikes in new and used cars. [Sources: 3] 

    

In order for this business to work, additional capabilities need to be developed and deepened, such as customer-specific offers that transcend a particular car model, customer-benefit-oriented pricing and fleet management. Manufacturers must set up their own subscription service and learn from customer feedback to make it a profitable business. Shared ownership between dealers and manufacturers could make unbundled second-hand car dealerships more plausible than existing franchisors. [Sources: 3, 4] 

    

Subscription services aim to be a system that integrates the asset management of vehicles used in different modes of mobility (subscription, rental, car sharing, etc.). More efficient operation reduces the cost of stopping a car, and these lower costs are passed on to the customer. [Sources: 4] 

    

Many consumers either want to buy or lease a new or used car, or they want to abolish the car altogether and choose a subscription model. Many potential customers do their calculator and decide to forgo their subscription, which turns out to be cheaper than traditional car ownership. [Sources: 2, 4] 

    

In the digital age, where the existence of retailers is under threat and car buying is migrating to online platforms and small boutiques, it is an opportunity to upgrade an archaic business model. Car manufacturers want to expand their participation in the life cycle and value chain of customers in order to improve profitability and expand a stagnant market. The aim of automobile manufacturers, sensing the opportunity to create a new source of revenue for their cars through their own subscription programs, is to tap into the Product-as-a-Service (XAAS) model to capture the lion's share of their "mobility needs" without being limited to one-off sales. [Sources: 3, 13] 

    

In response, car manufacturers are getting serious about marketing and addressing the weaknesses of their traditional distribution channels for franchises and dealers. Subscription models are changing the focus to align products and customer service with customer needs in an ongoing, dynamic relationship. [Sources: 2, 3] 

    

It is a way of generating dealer income and, at the same time, creating value by listening to customers, learning from their experiences and using these insights to sell them a car. Vehicle on Demand is the national car rental company we know best, but it is more of a loyalty program. China's Ycloset takes a different approach, using a subscription rental model that gives customers free or free access to a range of garments and accessories. [Sources: 2, 5] 

    

The company’s value promise delivers value through various elements such as novelty, performance, customization, the completion of tasks, design, brand status, price, cost reduction, risk mitigation, accessibility, convenience and ease of use. [Sources: 7] 

    

    

        

    

##### Sources #####

    

[0]: https://www.cbinsights.com/research/fashion-tech-future-trends/

    

[1]: https://blog.hubspot.com/sales/how-to-start-a-business

    

[2]: https://www.coxautoinc.com/learning-center/transportation-mobility-white-paper/

    

[3]: https://www.strategy-business.com/article/10102

    

[4]: https://www.oliverwyman.com/our-expertise/insights/2019/jun/automotive-manager-2019/sales/a-car-without-the-commitment.html

    

[5]: https://www.mckinsey.com/industries/retail/our-insights/the-end-of-ownership-for-fashion-products

    

[6]: https://fourweekmba.com/what-is-a-business-model/

    

[7]: https://en.wikipedia.org/wiki/Business_Model_Canvas

    

[8]: https://www.investopedia.com/ask/answers/010915/how-does-revenue-sharing-work-practice.asp

    

[9]: https://www.businessnewsdaily.com/5000-what-is-b2b.html

    

[10]: https://fleetroot.com/blog/how-to-effectively-market-your-car-rental-business/

    

[11]: https://bombbomb.com/blog/email-templates-car-sales-professionals/

    

[12]: https://courses.lumenlearning.com/wmopen-introbusiness/chapter/product-marketing/

    

[13]: https://www.forbes.com/sites/sarwantsingh/2018/07/30/your-next-car-could-be-a-flexible-subscription-model/

    

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