Insights Insight 01

01Network - segmentation

One dealer network. Different priorities. Different people.

A dealer network can look like one organisation from the centre. Look at it through the lens of a specific commercial priority and a very different picture emerges.

Sherbet InsightsPhil O’BrienAugust 20265 min read

The retailers that need attention on aftersales may not be the ones that need attention on customer experience. The teams that can influence a model launch are different from those that can move used-car performance. Even within the same retailer, the people who matter change with the objective.

That sounds obvious when you say it.

Yet network activity is still often designed as though the dealer network were a single audience: the same campaign everywhere, the same incentive for everybody, total participation measured at the end.

There is a more useful way to look at it.

Start with the priority, not the network

Imagine a manufacturer with a large retailer network.

If the objective is to improve an aftersales measure, perhaps 30 retailers are already performing exceptionally well. Another group is close to target. A smaller number may account for a disproportionate share of the opportunity.

Now change the priority to customer experience.

The picture changes.

Change it again to a new model launch, used-car performance or an accessory push.

It changes again.

The network hasn’t changed. The people and places most capable of moving the priority have.

That distinction matters because it changes the starting question.

Instead of asking, How do we engage the network?, ask:

What are we trying to move, and who can influence it?

The network isn’t the audience

A dealer network is an organisational structure. An audience is the particular group of people whose actions can influence a particular outcome.

Sometimes that audience may be broad. Sometimes it may be remarkably precise.

A model launch could require activity across multiple markets and hundreds of retailers, but different roles may need to do different things.

An aftersales priority might be concentrated among a particular set of retailers, service teams or advisers.

A customer-experience objective may require attention in an entirely different part of the same network.

The important point is that the commercial priority should define the audience, rather than the size of the network defining the activity.

That allows the programme to be much more relevant to the people receiving it.

And relevance matters.

If every priority is treated as equally important to everybody, people quickly learn that much of what reaches them isn’t really intended for them. Targeting creates the opposite effect: the activity somebody sees has a reason to be there.

Performance tells you where to look

Most automotive organisations already have significant amounts of performance data.

The opportunity is to use that data not only to describe what has happened, but to help decide where to act.

A retailer’s performance in isolation tells you something. Its performance relative to the wider network tells you considerably more.

That whole-network view can reveal where an objective is already being achieved, where progress is being made and where additional focus could have the greatest value.

The picture can then become more precise.

  • Which markets?
  • Which regions?
  • Which retailers?
  • Which roles?
  • Which people?

The appropriate level will vary according to the programme and the available data, but the principle remains the same:

Use the network to find the opportunity, then aim the activity at the people who can move it.

People move the number

Dealer performance is usually expressed in numbers: sales, retention, service measures, reviews, conversion, accessories, finance penetration and dozens of other KPIs.

But numbers don’t change themselves.

People change what they do.

  • A salesperson gives a new model more attention.
  • A service adviser has a different conversation with a customer.
  • A retailer team follows up more consistently.
  • A manager gives a particular commercial priority greater focus.

Enough individual actions, repeated across a network, eventually become movement in the number.

This is why incentive and recognition programmes work best when the starting point isn’t simply “What should we reward?”

The better question is:

“What do we want people to do differently?”

Reward may be part of the answer. So may recognition, communication, competition, progress, visibility or simply giving a commercial priority enough prominence to change what somebody does that day.

The incentive is a mechanism. The behaviour is the objective.

Measure the response, not just participation

Targeting is only half the opportunity.

Once activity is running, the response creates another layer of information.

  • Who participated?
  • Where did behaviour change?
  • Which retailers moved?
  • Which audiences responded most strongly?
  • Where did relatively little change?

Looking at the response across the wider network helps the programme team understand where activity is working and where more focus may be needed.

That makes the programme dynamic.

The original targeting decision doesn’t have to remain the targeting decision forever. As the network responds, the focus can change with it.

The next priority redraws the map

This is where an enduring programme becomes particularly powerful.

The organisational network may remain broadly the same, but each commercial priority creates a new view of it.

Imagine the same retailer network plotted four times.

  • Model launchone pattern lights up.
  • Aftersalesanother.
  • Customer experienceanother.
  • Used carsanother again.

Same network. Four priorities.

Model launch

Aftersales

Customer experience

Used cars

An illustrative automotive retailer network of four regions, forty-eight retailers and twenty-four people, drawn four times. The structure is identical in every view; only the highlighted audience changes. Model launch reaches 24 of the 48 retailers and 11 of the 24 people. Aftersales reaches 13 of the 48 retailers and 7 of the 24 people. Customer experience reaches 16 of the 48 retailers and 9 of the 24 people. Used cars reaches 9 of the 48 retailers and 5 of the 24 people.

Same network. Four priorities. Four different audiences. Illustrative network, not a client deployment.

Some retailers and people will appear repeatedly. Others will matter enormously to one objective and hardly at all to another.

That is not a complication to be removed.

It is useful information.

It means the programme can become more precise as priorities change rather than treating the whole network as one permanent audience.

From network engagement to network action

“Dealer engagement” is often used as shorthand for what manufacturers want from their networks.

But engagement by itself isn’t much of a commercial objective.

A person can log in, read something, click something or participate in an incentive without changing the outcome that mattered in the first place.

The more useful objective is action.

Start with the commercial priority. Identify where the opportunity sits. Understand which people can influence it. Give them a reason to act. Measure the response. Then use what you learn to decide where to focus next.

The result is a programme that can move with the business rather than a series of disconnected campaigns aimed at the same list of people.

One dealer network doesn’t mean one audience.

Different priorities require different people.

And seeing that difference is where much of the opportunity begins.

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