The Automotive Market is Back to Normal… and it’s Crazy!
The Automotive Market is Back to Normal… and it’s Crazy!
For anyone who began their automotive retail career after March 2020, all I can say is, “Welcome to Normalville!”
Yes, it seems like every Fresh Up wants to know every detail of the deal before they will even consider taking the test drive.
…like every Phone Up wants to know their exact payment before they will even consider visiting your dealership.
…like every Internet Lead wants a firm value on their trade before they will even consider driving it to your store.
That’s normal! And the sooner you and your team adjust your processes and word tracks to account for this normalcy, the sooner you’ll grow your market share at better-than-market grosses.
But We Need More Leads!
I’m hearing this a lot lately, and for the first time in over a decade, I agree with you. Vehicles for sale are beginning to far outnumber ready buyers. So much so, that even if your team held to strict processes and word tracks, much of your inventory would continue to age. Between high prices and interest rates, too many potential buyers are still sitting on the sidelines.
You see, this post isn’t about the processes or word tracks your team employs when they receive an opportunity, it’s about generating more and better opportunities efficiently and cost-effectively. Because… you really do need more leads.
Digital Marketing Overload
In this quest for more opportunities, too many dealers have decided that posting their inventory on every third-party website and chasing every shiny object dangled in front of them is the answer.
Hint: it’s not.
Today, too many dealers (and OEMs, but that’s a different story) are wasting tens of thousands of dollars every year on expensive and ineffective digital marketing expecting to generate more and better opportunities for their sales teams.
Hint: it’s not working.
Half Your Marketing Budget is Wasted…
… and you can finally figure out which half! There are credible digital marketing agencies driving measurable return on investment for dealers today. They’re not selling you exposure, engagement, or clicks, they’re selling you real leads, calls, and Fresh Ups that you can quantify without the mumbo-jumbo you’re probably hearing on your vendor calls today.
What’s Their Secret Sauce?
Despite what the latest seller of “proprietary A.I. blah, blah” is pitching you, there is no secret sauce to reaching in-market buyers and driving them to your dealership. Shockingly, it comes down to nothing more than a well-managed Google spend (SEM), coupled with a targeted omnichannel Social budget, and some basic Search Engine Optimization (SEO).
I know what you’re thinking. You’re thinking, “Wait, isn’t that what worked ten years ago?” Yes, and the formula hasn’t changed. The great news is that because these channels are measurable, you no longer need to wonder which half of your marketing is working.
Interesting Case Studies
Dealers United recently released some interesting marketing case studies that shed light on just how effective these channels can be in driving real vehicle buyers for dealers. (I’ll try summarizing a couple of those here.)
This Alberta, Canada Chrysler Dodge Jeep Ram dealer was able to use SEO, SEM, and Social to quickly and effectively drive additional leads and calls to their sales teams. Their results were strong with:
- Solid organic search improvement: A 23% increase in organic traffic coupled with a 55% increase in their keyword rankings for Google’s coveted Top 3 spots!
- Dominating paid search growth: A 200%+ increase in Phone Ups and a nearly 140% increase in form leads – and all with an average $8 cost per lead!
- Cost-Effective Omnichannel Social Advertising: How does a $182 cost per unit sold compare to more traditional digital advertising like those third-party sites?
Check out the full case study here: How St. Albert Dodge Fueled More Car Sales with an Automotive Agency
This family-owned Kansas City Ford dealership actually has an automotive retail history dating back over 100 years, yet they needed help with the search efforts – both SEO and SEM. Their solid results included:
- Long-term organic search improvement: A 41% increase in organic traffic that led to 43% more phone calls into the dealership!
- Cost-effective paid search: 947 sales leads in 90 days at a $15 cost per lead in a highly competitive Ford market!
You can check out the full case study here: Rob Sight Ford’s Search Strategy Boosts Results by 40%
No Really, What’s Their Secret Sauce?
As I wrote before, there is no secret sauce to reaching in-market buyers and driving them to your dealership. In fact, getting great results from your SEO, SEM, and Social Media providers isn’t hard, it just takes work.
The work is knowing what’s important and what’s not. The work is not letting your vendors lead you; rather, you lead them.
Ask dumb questions… lots of them. Ask your vendors to repeat anything you don’t 100% understand. Ask them again, though this time, tell them to explain it to you like you’re a five-year-old.
If they can’t easily detail how they’re helping you move metal in a language you and your team can clearly understand, it’s probably time to move on. Because you don’t sell clicks, you sell cars. The same should be true for anyone you trust with your marketing dollars.
Plus, with digital marketing, everything is measurable! Therefore, if the measurements are fuzzy or you feel like you must take their word for it because they’re the “experts,” I can guarantee you you’re wasting half your marketing dollars… and you have no idea which half.
The market is back to normal, and it’s crazy. Of course, this doesn’t mean you should be throwing your money at every vendor who claims they’ve discovered the secret sauce. Just find a digital marketing partner who can deliver a well-managed Google spend, coupled with a targeted omnichannel Social budget, and some basic Search Engine Optimization.
Good selling!
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