Is your dealership ready for 2018?
Car dealers understand that their performance last year doesn’t guarantee the same results for the new year. Few dealers we talk to expect the competition to get easier in the year ahead. Here are 3 key to driving online results for 2018.
Traffic is Not King
There are more traffic sources for dealers today than ever. Simply driving traffic to online listings will not provide a competitive advantage in 2018. In fact, most dealers have no problem getting eyeballs to their websites or impressions from third-party vehicle listings. Dealers that focus on traffic end up with inflated marketing budgets, high bounce rates and higher cost per lead. Creating vehicle specific content that actually provides answers to the shopper instead of “boilerplate” descriptions that don’t promote engagement is critical for 2018. For example listings with vehicle descriptions with less than 250 words produce 33% fewer views than listings with 250-400 words.
A key component of converting traffic to a qualified lead is the amount of time spent on a specific vehicle. (Converting means taking some action, like filling out a form, calling the store or visiting the showroom.) The longer a visitor remains on a vehicle listing, the greater likelihood of converting. Vehicle listings that are viewed for under 1 minute have less than a 10% chance of converting. When vehicles are viewed for over 2 minutes dealers have a 4X chance. Duration is a top driver if your goal is to maximize your budget and minimize wasted ad spend. Besides longer descriptions, a good way to increase time on vehicle listings is to use interactive technology that allows a virtual tour. This has been shown to provide a 300% increase.
Waiting for vehicles to be listed online cost dealers $25 per day on average (holding cost). The average time required to list a vehicle (time to market) with photos, description, rebates, and discounts is 7 days. The faster a vehicle can be listed the more profit in the vehicle. When you consider most dealers apply a pricing tool that discounts the vehicle in 30-45 days, the cost of “coming soon” vehicles online can double. Providing robust listing within 24 hours of the VIN being entered into the DMS will drive profits faster than doubling traffic.
Is your dealership going to rise to their expectations or fall to changing online realities in 2018?
AIM Experts is a technology provider that partners with Canadian dealers to create an emotional connection between your vehicles and today’s sophisticated shopper. Our experience shows that dealers who connect emotionally can dramatically improve online results without a comprehensive website redesign. To learn more visit aimexperts.com