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This post is the fourth in a series of articles exploring our 2016 State of Automotive Marketing report. To bring yourself up to speed, read the first, second, and third posts before delving into this one.
Rather read the entire report in one sitting? No problem. Click the link below!
ROI and Analytics: It’s All About the Margins
With this automotive marketing survey, we wanted to learn not only what sold more cars, but also what sold cars with a better margin for the dealer. To uncover this information, we turned to ROI.
Return on investment (ROI) is a simple calculation that shows whether a dealer made more money than they invested in a particular project or campaign. This investment could be spending on marketing and sales (as we studied in this survey) or spending on other efforts, such as sponsorships, training, staff, etc.
First, we took a look at dealerships’ marketing ROI in 2015 compared to 2014.
HOW DID YOUR STORE’S MARKETING ROI CHANGE IN 2015?
2015 was a strong year, not just for sales but also for increasing ROI.
As you can see below, this growth will result in greater investment in marketing in 2016. Dealerships are beginning to understand that purposeful marketing tactics can streamline processes and increase efficiency overall.
HOW WILL YOUR MARKETING BUDGET CHANGE IN 2016?
Analytics, Analytics, Analytics
In addition to measuring dealerships’ ROI and budget plans, we were curious about how dealers use analytics to gauge the success of their individual marketing tactics.
Analytics are the data gathered that show the results of a particular marketing effort. For the purposes of this survey, we referred to website analytics, such as Google Analytics or built-in analytics tools offered by website providers. These analytics track stats like website visits, number of pages viewed, and where website visitors originated.
Frequency was another important consideration. The majority of dealers we surveyed said they check their website analytics at least three times a week. Those that check this regularly claimed to see higher ROI than those who check two times a week or less.
HOW OFTEN DO YOU CHECK YOUR SOCIAL OR WEBSITE ANALYTICS?
While the majority of auto dealers we surveyed do check their analytics regularly, most fail to then check and document their marketing ROI, which is a very important step in any marketing strategy.
It’s important to monitor your margins regularly so that you know which marketing tactics are worth your time and money — and which ones you should drop.
DO YOU ACTIVELY CHECK AND DOCUMENT YOUR MARKETING ROI?
Analytics and marketing ROI go hand in hand. Dealerships who check their analytics at least three times a week are 3.5 times more likely to see higher ROI than those who do not.
The Numbers Don’t Lie: Tracking Analytics = Higher ROI
We compiled some data from the 2016 State of Automotive Marketing to show you just how important monitoring analytics is for your marketing ROI.
You can see below that very few dealers showed higher ROI when they checked their analytics only two times per week or less. Most simply maintained ROI, while a few even reported lower ROI.
MARKETING ROI FOR DEALERS WHO CHECK ANALYTICS 2 OR LESS TIMES PER WEEK
However, most dealerships who monitored their analytics three or more times per week saw 3.5 times higher ROI.
MARKETING ROI FOR DEALERS WHO CHECK ANALYTICS 3 OR MORE TIMES PER WEEK
We know that creating and implementing a stellar marketing strategy is no easy task, so we asked dealerships which elements in the marketing process challenged them the most.
WHAT IS THE BIGGEST MARKETING CHALLENGE AT YOUR DEALERSHIP?
Not surprisingly, the greatest marketing challenge for dealers was proving ROI, followed by securing budget and targeting.
We understand these challenges can be hard to master on your own — and we’d love to help you out. Request a free Internet marketing assessment from 9 Clouds to learn how you can improve your marketing strategy and implementation.
To learn more about 2016 automotive marketing trends, stayed tuned for our final post. We’ll bring everything full circle, providing direction on where to go and what to do after devouring all this valuable data. This post is a must-read if you’d like to sell cars with better margins.
Get It All
Would you rather read the entire 2016 State of Automotive Marketing report in one sitting? We’ve got you covered. Just fill out the form below to download the full report.