Tesla’s Marketing Strategy
How much is your marketing budget?
2-5% of a company’s sales revenue is the recommended marketing budget for an average company.
Well, there is nothing “average” about Tesla, not even its marketing strategy.
Did you also know that the world’s most valuable car company has a zero-marketing budget?
Hard to believe, but that’s Tesla’s reality. It can be your reality too if you get to understand how Tesla does it.
Tesla’s Take on Advertising
Tesla’s outspoken CEO Elon Musk has in the past expressed his dislike for advertising on Twitter. According to Musk, advertising is a waste of resources.
That’s why Tesla has no plans (yet) of spending on marketing. Instead, the company has invested in a superior product and excellent customer experience.
Wouldn’t you also want to buy a product because it is a good product that you need/want rather than have the seller breathing down on your neck? Tesla understands being pushy with sales can irritate their potential customer and finds ways to bring customers to them rather than go after them.
Those same customers are the ones who go out there and tell their friends what a great product and service Tesla is offering. If that has worked for Tesla in the past, then obviously, there is no need for advertising.
But you would not opt for advertising either if over 50M people out there are already eager to see/hear what you have for them. That is how big Musk’s following on Twitter is. If you know how hard it is to catch people’s attention on social media, then you understand the value of that number.
Tesla’s Marketing Strategy
Tesla is all about Being Authentic Tesla, brand recognition is purely organic, thanks to social media. Unlike in most companies, Elon Musk is not your typical CEO. He does not shy away from social media and does not filter what he puts there. Most people can relate to him on a personal level because of the authenticity he brings out.
Do you have a query, a concern, or a suggestion for Tesla? You don’t need to look for the PR or marketing guys because the CEO has got you.
When you are authentic, people easily relate with you, and you don’t have to struggle to win their attention.
Offers Seamless Customer Experience
Just how easy is it to interact with your brand end-to-end? If your website is slow and crowded, you are already blocking out very many potential customers.
For Tesla, buying a car is as easy as ordering anything else online and having it delivered; easy, simple. You can have your vehicle delivered without having to talk to anyone throughout the entire process. Tesla owns the customer experience end-to-end because they handle the whole transaction themselves. Customers are, therefore, assured of quality and consistency.
Unlike other brands, Tesla has eliminated third-party dealers from the transaction. When you decide to shop for a Tesla, what you see is what you get. That includes the prices. There are no back-and-forth negotiations on the price. So, whenever you need to get yourself a Tesla, you deal with Tesla themselves and not some middle man somewhere. That means as a customer, you will enjoy lower prices as Tesla benefits from the higher margins.
Tesla Believes their Customers are their best Marketers
Customers want to be associated with good things. After serving their customers with a great product and giving them an unforgettable customer experience in the process, Tesla can relax and wait for those clients to do the rest for them. It’s called Word-Of-Mouth Marketing (WOMM).
Tesla knows the value of WOMM because that is how the most successful car company has managed to thrive with a zero-marketing budget.
Why does WOMM work so well for Tesla?
That’s because people trust recommendations from people that they trust like friends, compared to what brands try to push down their throats.
So why spend on advertising when your customers are more than willing to do the advertising for you?
Tesla Pays Attention to the Community
Whatever business you are in, if you pay more attention to promoting your products than giving back to your community, that won’t get you very far. Take advantage of times like these during the current pandemic, to connect with the community. Consequently, you will be creating an opportunity to build passion and loyalty for your brand.
In 2017, Tesla reached out to the community by donating solar panels to low-income households. Elon Musk is also a big giver to charities.
How About A social and Charismatic CEO?
When you think “Tesla”, Elon Musk cannot be too far behind. He is a big force behind the brand.
Tesla’s CEO will not conform to the societal definition of a CEO.
Sometimes this has costed him financially and reputation-wise, his charisma is all Tesla’s brand needed to grow.
There is, however, no denying it, Musk’s charisma has promoted the Tesla brand and grown its popularity in leaps and bounds.
Consistency With its Mission
Tesla’s mission is to accelerate the world’s transition to sustainable energy.
Tesla wants to rid the world of its oil addiction by offering a product that people want and can afford to own.
Tesla’s mission is a strong one and very relatable to its customers. They want to be part of what Tesla wants to achieve in the end.
The Big Picture
Successful companies today are chatting their own path in terms of marketing strategies. You can’t bury your head in the sand and continue to do things the same way you have in the past.
Observing and learning what big brands like Tesla are doing will help you open your mind and come up with your own winning tesla marketing strategy.