Multi-vendor reports are a pain, right?
If you sit down and look at all the reports that you get from multiple vendors, the total sales they take credit for exceeds the total sales you had in that time period.
So, what’s happening?
ROI (return on investment) with marketing and advertising is difficult to track. Unless you have customer who tells you what prompted them to show up at your showroom, you have no idea if it was the newspaper, the billboard, the radio ads, or the text messages that prompted them to come in.
Here are some of the things you need to do track your marketing ROI:
The last contact gets the credit – You can look at the billboard and the radio ad as branding if the last thing to get some in the door was an email they got that morning. When you track ROI, whatever the customer recalls seeing last is the vendor/outlet that gets the credit.
Talk to your vendors – Sit down with each of your vendors and let them know that you’re changing how you track their success. You’ll be looking at only giving credit if the customer recalls their particular outlet. If the outdoor signage company doesn’t get any credit in a month, they might not be around the next month. These might be hard conversations, but in the end, you’ll be a lot happier and making more money from your marketing and advertising dollars.
Track what you can – Some things, like Facebook ads, text messages, and emails can all be tracked right though your CRM. If someone got a message on Sunday afternoon and they show up on Tuesday morning, you can attribute that sale to the latest message.
Ask the customers – This is a shocking idea, but it’s important. “What brings you in today? Did you get a text message from us or see an ad?” Most customers don’t mind you asking. If they don’t remember, you can move on. It’s important to ask the customer what they remember and to track it.
Add tracking – Have you ever noticed those TV ads that say to text a word to their number? Did you ever notice that the word changes? That’s tracking. If I want to know if overnight Saturday ads, which are cheap on TV, are really working, run an ad that has tracking built in. The same for a newspaper ad. Include a texting number and have a special word in the ad. Use a word that’s easy to remember, not some strange code only you understand. When you get those messages, you’ll know exactly where they come from. Even a billboard or a bus stop bench can have a special code that says, “Text TRUCK to 12345 to get a special financing offer.” You’ll know precisely where the customer came from and what they responded to.
The days of “tens of thousand people a day drive past it” are gone. There are far too many ways to track exactly who saw what and when and what they did about it to accept the old idea that eyeballs on ad justifies its price.
Don’t bother with newspaper ads that aren’t trackable. As we noted above, it’s not hard to put tracking into these advertisements, but you need to plan ahead and do it well.
If there are multiple vendors under a single contract, simply assign them a portion of the sale each. If there are four vendors under a single contract and you can’t figure out which one helped make a sale, they get ¼ of a sale each.
At the end of the month, add up each source to figure out where you’re getting the best ROI. The number of sales credits should be less than your total sales for the month. If it’s more than your sales, someone is getting credit they shouldn’t.
This process might take time, but it’s worth it. Eventually, you can narrow down where your sales are coming from and invest more money there. This increases your ROI and reduces your cost per sale. And isn’t that the goal of all advertising? A great ROI?
From the Silent Generation (1924 to 1942) to the Millennials(1981 to 1996), there are a lot of people who have very different ways of communicating.
The Silent Generation can remember party lines and payphones. The Millennials have always had cell phones and can barely remember flip phones.
So how can you market to all of these generations with one simple communication channel? Texting or SMS.
Text messaging is the number one way to communicate on cell phones.
They’re Already Here
With almost everyone who owns a cellphone using it to text, it should make sense that texting is a great way to sell cars. More than that, they’re already using their phones and tablets to research cars. “More than half (53%) of automotive internet shoppers use a mobile device in their quest for automotive information.”3
With more than half of auto shoppers already using mobile devices and all of them texting, it’s time for auto dealerships to start using text messages to sell cars.
If you’re not sure what’s going on with your customers, look in the repair waiting area, look around Wal-mart, take a walk in a park. Everyone is looking at their phones, young and old.
How to Make Texting Work for You
There are a few steps you should take before you start using texting for your dealership.
Get a sales floor cell phone. This is the number you will publish online and in your print ads.
Your sales team will take over your text messaging if you let them. This will present a whole bunch of problems for you. First, you won’t have access to those numbers later to market to. Second, you have no idea what was said by any salesperson to a customer. Third, if they’re busy, the text will go unanswered.
Remember: Over 95% of texts are read and most of those within five minutes. (If you don’t believe those statistics, consider your own phone use). People expect a quick response from texting. Be sure they get it.
You will want to get your messages onto a computer screen where they’re easier to manage. There are a lot of services available that will let you send and receive messages on your computer. Both Android and iOS have free applications that will do it right from your texting app. Most other applications will let you send bulk text messages to market your dealership. Again, over 95% of text messages get read. There is no other way of contacting your customers that’s more effective.
Have the computer application where someone can watch it, on the manager’s computer, or the receptionist’s, or on a shift phone that someone is assigned to carry around every shift.
Build a text marketing strategy
Using an online service to send bulk messages, create a text marketing strategy. Look to use those text messages to promote specials on the lot or to remind customers when it’s time for an oil change.
You can increase your brand loyalty through text messages by being consistent, not texting too often, and giving good information that everyone can use.
Be sure that any incoming texts are responded to quickly, within five minutes, and that your outgoing texts are professional and informative. Keep it short and don’t hard sell via text. Through text messages is not the time to start asking a thousand questions and doing the “Come down and we’ll show you,” tactic. Be cool and responsive. That’s what people who text are expecting and need.
Text messaging as a superpower
Text marketing has not been adopted by many dealerships, in spite of the number of people using it and how easy it is.
If your dealership starts doing text marketing, you have a good chance of dominating your area and building a whole new group of loyal customers.
The world of selling vehicles has changed a lot.
The classic car salesman (and they were mostly men) waited for the customer to hit the lot. The customer usually arrived because they knew the make of the car or the dealdehip was the “best one in town.”
As soon as a toe crossed the line, the salesman would ask the question, “How are you today?” Oddly, everyone knew that he didn’t care. It was a formality that really meant, “How fast can I get you into a car and earn a commission?”
That’s all changed. Today, the buyer is in charge. The world is different and sales people are finding that they need to adapt.
Recently, we sat down with one of our long-time clients, Oliver. He discussed why he was using SimpSocial and how it affected his business.
SS: Why did you choose to use SimpSocial?
O: Well, I realized that everyone around me was using social media. My kids, my grandkids, my sales people – everyone is social media all the time. I asked my adult daughter how often she went on Facebook and she told me that she looked at it about five times a day. That convinced me that I needed to look at using social media to promote sales.
SS: How did you decide to use SimpSocial?
O: When I started, I had no idea what to do. I gathered my sales team, a group of younger men and women, and asked them what they thought. I don’t really use Facebook or Twitter or any of those other platforms, but I know that they all did. “What do you think we should do?” I asked.
They told me that we should do social media advertising, then use text messaging and emails to develop a relationship with the lead.
One of my salespeople, Kelly, showed me some messages she got from a competitor. They were interesting.
SS: Then you started looking for the right service?
O: I asked my sales manager to bring me some recommendations. He came to me with three different companies. We chose SimpSocial because it was the right price, the right services, and is oriented specifically to auto dealers.
We looked at a couple of other companies, but they didn’t specialize in what we do. I’m sure they can do a fine job, but I don’t want to have to explain our goals and priorities. SimpSocial was the answer.
SS: And how has it been?
O: Great! SimpSocial created Facebook Lead Generation ads for us and linked them to the CRM. They helped set up a communication system that pretty much runs itself. My sales manager assigned someone, Kelly, in fact, to keep track of leads and sales.
The leads we get have been very productive. Kelly tracks leads from the time they first fill out a form to the time they buy a car or truck. We’ve been well into the 30% success rate and that’s just in six months. I’m told there are leads that might not pan out for a year or so, but that they’re moving through the sales process and will buy.
Since I don’t have to pay per lead and I don’t pay someone to sit and make calls all day long, it’s a great return on investment.
SS: What do you say to dealers who are thinking about their advertising and sales?
O: I would say, look at social media. Everyone is doing it. I’m an old guy and it’s not my thing, but it doesn’t have to be. The best part about hitting SimpSocial is that I didn’t have to learn to do anything but read a screen on the CRM. I can see what the lead has been doing, what they clicked on, and if they’re active.
Once in while, I just open the CRM and make a couple of [one calls. All I do is introduce myself.
SS: How has it affected your advertising budget?
O: Honestly we’ve gone ahead and cut out most of the ads that we used to do. No one buys the paper, the phone book is a thing of the past, and billboards were never all that great for us. SimpSocial and my team have turned this new technology into a really great tool for our dealership.
I’ll tell you the truth. I was dragged kicking and screaming to this idea. I know I make it sound like I was relaxed and happy about it, but in reality, it was something I resisted until my daughter convinced me that it was probably the easiest way to reach people.
Like I said, I’m not young, so these ideas are not foreign to me, but I’m glad I listened to her and to my team.
The sales funnel for vehicles has changed. One of the most significant changes is that potential car buyers are entering the funnel earlier.
Today’s car owner enters the sales funnel even when they’re not ready to buy, just yet. For example, when someone goes to a website to find out how much their car is worth, they might be told they’re upside down with their loan.
Of course, as soon as they enter their contact information, it gets sold to a car dealership. Now they’re suddenly getting emails from all of the dealers in the area trying to get them to buy a car or truck.
The buyer’s response is, “I’m just looking.” This gets exhausting. Many dealers stop contacting the lead because they’re not getting immediate results.
Too often, dealerships are only committed to the short term. They’ll only keep contacting someone if they’re likely to buy in the next couple of months. With the leads entering the funnel much sooner than ever before, lots of leads are being lost to a short attention span.
There are a number of ways to make a long lead work for you.
Email – Email is a great way to stay in touch with people. Make sure that your email addresses their issues and concerns. If you create an email series that’s geared toward people who are “just looking,” you can answer their questions and nurture their business.
Emails that address issues like, “How to deal with a vehicle you’re underwater with,” and “Can I buy a new car owing a balance?” will go a long way to helping people make up their minds and move forward with a purchase.
Text messaging – Texting is one of the most powerful ways to stay in touch with people. Over 90% of texts get read. That means that you can count on people to see them and react.
Your texts can direct them to articles that interest them, great financing deals, or even special vehicles that they might be interested in. You can host a “No Pressure” event where they can come to your dealsherhip, look at vehicles, and get their questions answered, without being pressured to buy a vehicle right away.
The best way to stand out from the crowd is to forge a relationship, not just a chance to sell a vehicle. So often, dealerships and sales people are so hungry for the sale they forget what it’s like to be on the other side and feeling pressured to make a decision now!
What about the immediate sales? How will you survive?
This idea doesn’t mean that you should give up what you’re doing now to make sales and pay the bills. This nurturing concept is in addition to your current strategies.
After about 6 to 12 months, you’ll suddenly find yourself with a bunch of customers who have been reading your messages for a while.
Yes. Absolutely.
The emails can contain longer content and help people to learn about buying a new vehicle. Text messages are invites to special events or just a touch base to talk about whatever is on their minds.
The key is to build a relationship. Become the organization that your leads think of when they consider buying a vehicle.
The only leads you should get rid of are the ones that tell you not to contact them again. Otherwise, every lead is a lead that you need to stay in touch with. This includes people who just bought a car or tell you they’re just looking.
Every lead you get, no matter how you get it, is worth money because it cost you money. Don’t give up one someone just because they’re not ready to buy a car today.
Use the tools that you have to contact them and they’ll reward you by becoming a customer instead of a lead.
There are a lot of sources for leads that auto dealerships can tap into. From third party websites to lead generation companies to Google advertising to email lists, everyone is trying to sell you “leads” that you can sell to.
The biggest concern: can you make money with those leads? What is your return on investment?
You can look at a lot of statistics, like cost per lead, the number of leads, the quality of the leads, the clickthrough rate of your marketing efforts, and on and on. The real issue is ROI – how much did you make for what you spent?
Third Party Auto Sales Sites
For a while, the third party sites had control over the entire auto sales market. You couldn’t search for a car or even a car part without suddenly getting an ad from a third-party auto sales site.
That has relaxed a little as Google has realized that they aren’t doing the thousands of dealerships any favors by giving every search response to four or five third party sites. Facebook never had this problem since their ad service is much more geographically-based.
Lead Generating Ads on Facebook for Dealerships
“Lots of people want to hear from your business, but filling out forms can be difficult on mobile. Facebook lead ads makes the lead generation process easy. People can simply tap your ad and a form pops up—it’s already pre-populated with their Facebook contact information and ready to be sent directly to you.” – https://www.facebook.com/business/ads/lead-ads
That’s the most powerful explanation that you can give for what makes Facebook lead generating ads so powerful. Since Facebook already has a user’s email address and probably their phone number, their ads can fill out a contact form for them.
The ad shows up in the user’s newsfeed. As they scroll through pictures from their friend’s birthday party and funny cat memes, there, in the middle, is a photo of a gorgeous car or truck. You can include the price, the monthly payment, and anything else that you want.
When the user clicks the ad, it will take them to prefilled contact form. One more push of a button and a message is sent to your dealerships that someone is interested in that vehicle.
This is a radical change from Google ads that require that you build a form, a landing page, or that you send them to your website. Everything is just two clicks away and you have a new lead.
Because you only pay per lead, not per view, it can be a very low cost per sale. You’re only going to hear from people who are really interested in buying a car.
A Little Too Good
There is a problem with these ads when they’re well-designed and well-placed: dealerships get overwhelmed with too many leads.
That might sound like a fantasy, but there have been a number of dealerships that have found that the volume of leads exceeds their capacity to contact and handle everyone. In that case, you can dial back the amount your spending, thus the number of leads you get in a day or you can simply bring in some new staff to help.
Not a Saturated Market
Unlike Google ads, the Facebook lead generating advertisements aren’t saturated with dealerships. It has been a slow move among dealerships that are used to getting leads the old-fashioned ways, whether that’s newspaper ads or through Google, the new Yellow Pages.
The idea that a social media website can generate quality leads organically is a bit hard for many advertising managers at dealerships to grasp. That’s good. That means that if you use these ads, and you’re among the first in your area, you’re going to end up with a lot of leads that your competitors are still sitting on Google looking for.
Advertise where people are
There are no billboards on the tops of mountains or the bottom of the ocean. Why not? There’s no one there. You want to put your ads where everyone is and where they go all the time.
69% of US adults are on Facebook. – https://www.pewresearch.org/fact-tank/2019/05/16/facts-about-americans-and-facebook/
That means that nearly 70% of everyone you meet has a Facebook profile and everyone is checking it every day. That’s why you want to be advertising on Facebook.
Using lead generation ads on Facebook for auto sales is a match made in heaven. Facebook even has a whole page dedicated to success stories of auto industry businesses and Facebook ads: https://www.facebook.com/business/success?categories[0]=automotive&categories[1]=lead-ads#
Make Facebook lead gen ads a major part of your business and you’ll see it grow fast.