OEM automotive brand management: Dealership risks and strategies

Original equipment manufacturers (OEMs) in the automotive industry face unique brand management challenges. Instead of direct-to-consumer models, they rely heavily on a network of independently operated dealerships and service centers to interact with customers.

This decentralized structure makes it hard to collect, manage, and centralize customer data. Without a unified approach to data collection and brand oversight, service quality, messaging, and customer experience can be inconsistent—posing automotive brand management risks and potentially hurting an OEM’s reputation.

In an era where customer experience and brand perception are huge differentiators, safeguarding the OEM brand isn’t just a marketing strategy—it’s a business necessity. OEMs must make sure their dealerships and service centers act as reliable brand ambassadors rather than as independent entities with mixed service standards.

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Automotive brand management: The role of dealerships and service centers

How does the decentralized model make it harder for OEMs to protect their brand? There are three top risks:

1. Poor customer experience. Operating independently, dealerships and service centers often have their own approach to customer service, pricing, and post-sales support. This inconsistency can lead to negative customer experiences that, instead of being attributed to the dealership, reflect poorly on the OEM. When a customer buys a vehicle from one dealership and receives poor service at another, they perceive it as a failure of the brand rather than an isolated incident.
2. Fragmented customer data. Data is a valuable asset in the modern automotive industry. However, customer data often remains siloed in the decentralized model. This fragmentation prevents OEMs from having a complete view of the customer journey, making it hard to personalize services and implement effective marketing. Without a centralized data strategy, OEMs miss out on valuable insights that could improve customer experience and drive loyalty.
3. Brand trust issues. A lack of control over dealership and service center operations can lead to branding inconsistencies. From the use of outdated logos to customer service reps failing to adhere to OEM service standards, these small deviations add up and weaken brand trust. In worst-case scenarios, unethical business practices by certain dealerships—such as overpricing, misleading promotions, or inadequate repairs—can harm the OEM’s reputation.

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6 ways OEMs can protect their brand

There are several steps OEMs can take to overcome the challenges and get dealerships and service centers on the same page for better brand management:

1. Standardize customer experience. OEMs should have customer experience guidelines for dealerships and service centers, including protocols for customer interactions, service quality benchmarks, pricing transparency, and the handling of complaints. A structured approach can reduce variability across different locations to improve service delivery.
2. Centralize data management. A robust customer relationship management (CRM) system that integrates dealership and service center data is essential. A centralized database allows OEMs to track customer interactions, understand service histories, and personalize marketing efforts. This data-driven approach boosts customer experience, helps OEMs anticipate customer needs, and improve product development.
3. Dealer training + certification programs. OEMs should invest in comprehensive training programs for dealership and service center staff. By training employees in brand values, customer service expectations, and technical expertise, OEMs can improve service consistency. Certification programs that recognize dealerships for adhering to brand standards encourage compliance.
4. Mystery shopping + audits. Using mystery shoppers and conducting regular quality audits help OEMs monitor dealership and service center performance. By getting insight into how a dealership interacts with customers, service efficiency, and overall compliance with brand guidelines, OEMs can spot gaps and address them. This practice also reinforces accountability across the dealership network.
5. Direct customer engagement. While dealerships serve as intermediaries, OEMs should not rely solely on them for customer engagement. Establishing direct communication channels, such as branded mobile apps, customer service hotlines, and online service booking platforms, can strengthen the OEM-customer relationship. This allows customers to receive accurate brand messaging and support directly from the OEM, reducing reliance on third-party interpretations.
6. Incentive programs for brand compliance. Encouraging dealerships to uphold brand values can be reinforced through incentive programs. OEMs can offer financial incentives, marketing support, and exclusive product access to dealerships that consistently meet brand standards. Rewarding compliance creates a mutually beneficial relationship where both parties are invested in delivering a high-quality customer experience.

Auto brand management: All together now

By implementing standard service protocols, centralizing customer data, investing in dealer training, and maintaining direct customer engagement, OEMs can reduce the risks inherent in the dealership model to strengthen brand trust.

Ultimately, a strong and well-protected brand benefits both the OEM and its dealership network. Customers will associate the brand with reliability and quality, leading to more loyalty, repeat business, and positive word-of-mouth marketing.