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What is the highest priority for your dealership marketing efforts?
- Thread starter The QR Code Guy
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- May 1, 2005
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- Jeff
Effective Vehicle Merchandising should be the number 1 priority. But to answer from your choices, it would be Improving conversion. Once you have a handle on lead conversion, you to make more calculated decisions on how and when to proceed with the other options.
- Feb 4, 2022
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- David
- May 1, 2005
- 4,607
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- First Name
- Jeff
Yes, our Poll feature is currently not working. Sorry about that. We are working on correcting this issue. However, for some reason the Poll does show up when viewing from the "recent activity" view. I have added it to your original post.
To answer from your choices, I would say Improving conversion. Once you have a handle on lead conversion, you to make more calculated decisions on how and when to proceed with the other options.
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Definitely agree with Jeff on initial focus of increasing conversion rate. If you don't have decent conversion rates, that funnel may never be profitable - even after cost reduction strategies.
That said, it's also important to notice if there's lower hanging fruit available. Eg. it might take a major workflow overhaul to Improve conversions, but there could be an easy option to reduce cost per lead that results in the same net gain. In that case obviously step 1 is the easier option.
Ultimately this is a business and focus is net profit. Unless you're being incentivized on some other business metric, strategies should always be focused on growing that bottom line in the easiest way possible
That said, it's also important to notice if there's lower hanging fruit available. Eg. it might take a major workflow overhaul to Improve conversions, but there could be an easy option to reduce cost per lead that results in the same net gain. In that case obviously step 1 is the easier option.
Ultimately this is a business and focus is net profit. Unless you're being incentivized on some other business metric, strategies should always be focused on growing that bottom line in the easiest way possible
What are the tactics to increasing the conversion rate? Do you work the funnel from the top and shoot for higher quality leads, or work the funnel lower by changing how the leads are worked? Probably some combination I would assume. The worst idea feels like focusing on increasing the lead volume and spending time and money working bad leads, but I'm sure it's done.
- Feb 4, 2022
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When it comes to increasing lead volume, focus on increasing quality leads and stop paying or funneling bad leads. Track lead quality back to source and the sources that generate those bad leads - reduce or eliminate them. Focus on lead sources that bring in better leads. This is the same approach to OLM (online marketing) keywords, and such, Don't spend money blind on lead efforts - that leads to costly waste. Refinement is key.
Sounds like we're on the same page. We're talking about volume of quality leads, not just overall volume to throw resources at to try and convert. Lead quality and conversion rate are hand in hand. Then the question is: how to get quality leads at a lower cost.
BTW, I'm not a dealer. I asked the question to understand better. I have spend a fair amount of time with digital ads and conversion tracking signals on websites though.
For me it comes more efficiency in advertising spend - at a cost per retailed unit. IMO - Target should be $250 per, with a $350 max -- (pre co-op credits)
As mention above - increasing lead count is easy ... focus on quality. I also believe that if you are focusing on just "leads", I think you are missing the boat. Focus on consumer experience that drives people through your front door. That can be after they submit a lead/call, but what if they don't? Could a consumer get the information they need without contacting you prior to coming in?
I have a dealer group in a tech heavy area where an average of only 40% of the people contact the store before coming in (lead or phone call). That means over half of the people just come in to buy a vehicle, without first contacting the store!
As mention above - increasing lead count is easy ... focus on quality. I also believe that if you are focusing on just "leads", I think you are missing the boat. Focus on consumer experience that drives people through your front door. That can be after they submit a lead/call, but what if they don't? Could a consumer get the information they need without contacting you prior to coming in?
I have a dealer group in a tech heavy area where an average of only 40% of the people contact the store before coming in (lead or phone call). That means over half of the people just come in to buy a vehicle, without first contacting the store!
- Feb 4, 2022
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100%!
Car buyers want to remain anonymous, shop on their own terms and when they want information, they want unfettered instant access to everything they need to make a purchasing decision. Your 40% observation is probably on the high side given that 8 or 9 out of 10 people who come to the lot to shop vehicles give the standard "just looking" reply to your sales team when approached. Remember, they WANT to be there... they just dont want to talk to you ... YET.
If they need help, they'll ask. (sometimes).
If someone comes to your store to see the vehicle, and you make a connection, that connection is worth 40 web leads. (or more).
Be open, transparent and welcoming to them - as you said, focus on the experience that "drives them to the front door."
I see dealers who continue to spend $$$$$ on advertising yet have poor inventory levels on their lot. You can sit out and literally watch traffic slow down - look a the lot, and when they see poor selection, they drive on. Having inventory and retailing it well is a key factor in converting foot traffic to actual ON SITE shopping traffic.
Of course, when they get on the lot, they're probably still anonymous so now its 1) sales staff job to "land" the lead or 2) use technology to land the lead while giving them the best shopping experience possible. (disclosure - thats what I do. Dealership engagement).
Give in-market buyers a reason to visit your dealership. Give them a reason to check out your inventory or store. Perhaps it's because you'll give them best $$ on their trade in. Perhaps it's a guarantee. Perhaps its overall pricing or perhaps its simply transparency and honesty.
Quality crushes quantity every day of the week. Audit your marketing - I bet you'll learn a lot.
It's a bummer to see dealers paying good money for bad leads.
