Solving the SEO-Induced Margin Erosion Problem
This session, originally presented by C-4 Analytics on the Digital Dealer platform, addresses a critical profit-limiting problem: the direct linkage between weak SEO and eroded gross margins. Dealers are taking monthly drubbings because their digital presence is not organized around what matters most to car buyers.
The challenge is that Google abhors a vacuum. While Google wants to show you on page one, most dealers bury the information customers need, allowing competitors (near, far, and third-party) to swoop in and set the terms of the sale.
How Margin Erosion Happens
Margin erosion starts when your dealership's website is not organized around the Google Buying Moments.
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The Prospect Finds a Lower Price (The Ghost): The low-funnel prospect research is focused on deals, offers, and rebates. When the dealer has not organized their site around the moments, the prospect is influenced by more easily findable, lower pricing from a competitor.
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Negotiating Against a Ghost: The prospect is inclined to start their negotiation with that low competitor number, poisoning the negotiation before it even starts. The local dealer (who is not ranking well) starts on the back foot, and margins suffer.
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The Loss: Whether the customer is stolen by a local rival or a distant low-baller, the dealership loses. If the distant competitor's low number is poisoned in the prospect's mind, they will not buy at your higher price.
The Fix: Repairing the Digital Foundation
The solution requires rebuilding your SEO and digital presence around the Google Buying Moments. This is an undertaking that will take time, effort, and resources.
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1. Claiming the Basics: You must be present in organic search. Claim and maintain all local listings (DealerRater, Super Pages, etc.). Google relies on these sources to confirm who you are and where you are, helping you rank higher.
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2. Ending Templated Content: Do not use duplicate or keyword-stuffed text. Rewrite your About Us, Why Buy, and Why Service content to be unique and relevant to your local market.
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3. Build Conversion Paths: Move past VDP views as the primary call to action. Create landing pages with multiple offers (Claim Special, Trade Appraisal, etc.) to cater to shoppers at every stage (Day 87 vs. Day 47) of the buying cycle.
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4. Demand Alignment: Ask your SEO provider to reorganize around the Google Moments. If they are unwilling to align your presence with what matters most to buyers, ask them why the Tier 1 sites are so well aligned.
Conclusion
You have to control the things in your own local market. The impact of this is that not only will you get more leads and phone calls, but margins will be better because when you give people the information they are looking for, they reward you by becoming customers at a greater rate.
Watch the Full Webinar
For a deeper dive into these topics and to hear directly from Rob Stoesser, Vice President of Sales, watch the full webinar below.