Small business advertising for
independent and franchise dealerships who spend thousands of dollars every month on digital marketing.
It is nearly impossible not to have pay-per- click (PPC) campaigns, search engine optimization (SEO)
techniques, and social media pages to promote new and pre-owned inventory. As managers and sales
teams seek the best sales lead software that will provide them with the greatest ROI, they often confuse
quantity over quality. In addition, too much emphasis is placed on the CRM to gauge how well a
vendor sources potential car buyer contact details. With all of the competition within the automotive
industry, it is understandable that this is the approach. There are, however, much more lucrative
Too often, managers are swayed by marketers who promise large numbers of new users and leads. While it is tempting to agree to a vendor that will generate 1,750 new users a month, the question that begs to be asked is whether this traffic will result in a digital lead or a visit to the store itself. One way to measure this is by utilizing an external, unbiased tracking system which shows metrics and a side- by-side comparison of all vendors. The program, for example, that promises 1,750 new users, but has a bounce rate of 82%, when the average is 23%, should raise a red flag. On the other hand, a program that only brings 150 new users but has a 17% bounce rate is clearly doing something right for the store. The trap that so many managers fall into is that they use their CRM as a means to keep track of their leads and calculate profit. CRMs, or customer relationship management software, were built to assist salespeople in organizing their follow-ups. That means that another method of discovering ROI must be used. Even though the source of leads is often included in customer information, the reports only show how successful a salesperson is. If the leads they are receiving are irrelevant for whatever reason time and time again, it may not be their fault that they are unable to sign purchase and lease agreements. The problem, too often, lies in the quality of the leads they are receiving.
Looking back at the vendor who brings 1,750 clicks to a landing page, an 82% bounce rate means that only 12% of users are filling out a lead form. This implies that the majority of the traffic they are generating to this particular page is irrelevant, likely because they are not behaviorally and geographically targeting the population surrounding the dealership. A third-party lead provider does not do this either so that the contact information they have is incorrect, incomplete, or just irrelevant. The other major problem with this methodology is that the same customer information is sold to multiple sources. Rather than decreasing competition, they are raising it because now several sales people at different locations are trying to reach the same person.
The solution is to focus on first-generation leads. By having exclusive access to potential customer contact details, sales staff will be able to spend their time on test drives rather than sifting through piles of dead ends. Coupling these leads with a proper tracking system, there is no reason for dealerships not to flourish.