Strategies of High-Growth Dealerships
This session, originally presented by C-4 Analytics on the Digital Dealer platform, provides tips for dealers to adjust their digital marketing plans for the second half of 2018. As sales are predicted to cool and competition increases, every dealer must re-evaluate their online strategy.
The underlying challenge is that forces are conspiring to make your job more difficult in 2019. You must leverage advanced strategy to win the attention of the in-market buyer (IMB) in your area.
The Core Problem: The Cooling Market
The market is facing a repeat of historical trends: sales are slowing, competition is increasing, and advertising costs are rising. In response, dealers often receive an instruction from management to "Cut advertising spends to the bone in December and January – we need to save money".
The key to a successful second half is not cutting but strategically focusing investment using data to find the right buyers.
The Solution: Advanced In-Market Targeting
To win, dealers must use advanced techniques and data to put their ads in front of the IMB when and where it matters most, particularly on mobile devices.
1. The Strategy: Mastering the Google Buying Moments
The Google Buying Moments are the foundation of your digital strategy. To increase sales, you must identify where you are in the funnel and move up to target more buyers.
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Own the Bottom: Ensure you are dominating the low-funnel moments (Am I Getting a Deal? and Where Should I Buy It?).
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Move Up-Funnel: The true growth opportunity lies in targeting higher-funnel moments (Which Car is Best? and Is This Car Right For Me?) to generate additional demand. Cost generally goes down as you move up the funnel.
2. The Weapon: OEM and Third-Party Data
High-performing dealers use third-party data from companies like Polk, Experian, and Nielsen to precisely locate the IMB, even when they are not on your website.
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Identify the Perfect Buyer: Data can tell you everything about the IMB: their past purchase history, VINs viewed on third-party sites, location, and credit score.
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Target Competitors: Use OEM reports (Pump-in/Pump-out, Sales by ZIP) to identify which on-brand rivals are stealing your sales and aggressively target their market areas.
The Essential Checklist for Success
To ensure a successful second half, you must align your processes with high-performance standards:
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Sales Process: Ensure every lead is called within 20 minutes and an email is sent immediately after the call.
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Campaigns: Maximize your Quality Score and Impression Share (target 80% or higher).
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Compliance: All mobile ads must be fully built out, and only your mobile site should be used for mobile traffic.
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Transparency: Always pay Google directly and ensure your ad account is connected to your Google Analytics.
This strategic adjustment, leveraging data and firm execution, is the only way to counteract the market forces and finish the year strong.
Conclusion
Successfully navigating the second half of 2018 requires replacing the "cut and coast" mentality with a strategic, data-driven approach. By focusing on advanced IMB targeting, maximizing your Quality Score, and using OEM data to defeat competitors, you can make meaningful changes to your digital plan and finish the year strong.