How much does it cost to attract one used car buyer to an auto dealer?

[Kelly Wilson]

Bill. Sharing is caring. This is DealerRefresh. C'mon, SHARE some best practices.

"...I'd be happy to SHOW YOU THREE WAYS how we help dealerships unlock tremendous growth opportunities..."

Well, sharing IS caring here on DR, so here are the 3 biggest takeaways from DDLV last week:

1: SEO (and connected organic business listings) is in the spotlight again. Angie from Google said SEO is going to win the integrated AI search game. Full profiles with up-to-date info, trackable CTAs/links, human for human content, and reduced friction points were the top talking points.

2: Education (for staff and consumers) on processes, product knowledge, offers & communication skills was the foundation of many presentations and pitches. Staff members need to be educated to build value and be the SME (subject matter expert) in the product to rationalize affordability and highlight pain-point resolutions.

3: Reducing friction points (@Alex Snyder are your ears buzzing?) to reduce anxiety, frustrations, and pressure throughout the processes on both sides of the store for clients and staff. Whether if it’s integrating AI to answer phone calls, chats, just extended followup emails or providing pricing (svc, trade, payments) and true appointment setting without gatekeeping, dealers need to “lower the barrier to doing business with [the dealer].” No, not every customer is going to go completely through a trade appraisal or digital retail tool to complete a transaction; however, shoppers are programmed to be wary when information is withheld in this digital age.

All 3 of these tie together well with a modern, customer centric, and holistic marketing strategy where the digital and in-store processes are aligned and customer acquisition costs can be reduced.


Now *insert self promotion here* if you want to talk shop, set up a call with me. I’m hoping to be in the last 2 weeks of my search for an employment partner.

 

[Allentown]

Most dealer's do not have marketing departments. Marketing is a side job of the new car manager, the used car manager especially, the GM, and GSM. Sometimes one guys is more into it than the others and does a little more. Some hire and ad agency to run their website and even will do some tv or a mailer. I've always heard $500 per car as the average. If you under that you are not a better advertiser than someone over it. It's more to do with your sources of customers. If 70% is repeat and referral you maybe at $100 per car, and then inverse you may be at $750 per car. Also one pain about dealers is we like to know what is working and what is not and cut or add shit all the time. But that's the wrong way to look about it in my opinion. If you are good at making online cars ads, (Good at speed to the ad, and quality of photos and description, competitiveness of price (i.e. can appraise a car and sells mostly trades), then be on the big and be all premium or best package. If you aren't good at that stuff, get good and then sign up.

Why are you asking questions about marketing and car dealerships? They are probably the two most conjoined industries I've ever seen.