Strategic Marketing in Tense Situations: Capturing vs. Generating Demand
In the current automobile market, the demand for vehicles, both new and secondhand, cannot really be disputed. With no indication that consumers are slacking off, many dealers have had consecutive months of record-breaking sales. It’s crucial that marketing initiatives change with the times, even if your dealership and its sales staff are still having a great year. When marketing expenditures are better adjusted to satisfy customers at every stage of their journey rather than abandoned or forgotten during periods of strong demand, continued success can only be sustained.
Simply put, there is a greater demand than supply for new cars. The introduction of vaccines has given consumers peace of mind, relocation or vacation has increased demand for larger vehicles, interest in EV models is growing, and those summertime incentives are quite alluring to individuals who spent the previous year indoors and off the road. There are countless angles to take, but the fundamental truth is that demand is high and inventory is leaving the warehouse quickly.
So why do you still invest? We can’t afford to promote right now, numerous dealerships and companies declared it barely a year ago. The most astute dealers, though, said that “We can’t afford to not advertise wisely right now.”
In a difficult market, SimpSocial’s partners who maintained their advertising budgets recovered more quickly and experienced a decline in CPLs and CPCs while frightened and bewildered rivals reduced their spending. Here is what we know about the market and the proportional marketing reactions that can be used right now, with the philosophy of spending to capture demand rather than to create demand.
How to Deliver on Demand in 3 Ways
Consumers are waiting weeks or even months for the automobile they want after realizing the exorbitant prices. Give on-site content first priority, especially for models that are hard to come by. Users will look elsewhere to shop if your SEO company doesn’t track or optimize for manufacturer and model keywords.
By fast-flipping inventory to keep up with sales, retailers continue to demonstrate their high level of adaptability to the current climate. Maintain the life of your paid search marketing efforts. Invest these monies in fixed ops keywords and encourage customers to visit the service department as inventory for models with little to no volume declines.
Maximize the use of sales incentives in advertising content, but exercise tact when doing so. Make sure the copy feels natural so that readers won’t even notice it’s an advertisement. Customers expect to be sold to, therefore increasing click-through rates requires adopting “why-buys” and bold tactics like asking questions, mentioning pricing points, and showing inventory count. The objectives are clicks and brand name recall. Make sure to specify the start and end dates accurately when using GMB posts as another fantastic, cost-free approach to prominently display incentives in your online marketplace.
Continue to make use of low-cost channels like Facebook or Local Campaign Ads to support buy-back and trade-in opportunities as you adapt your strategies to meet this demand. Local campaigns are popular and only cost $4.50 per conversion! Low CPMs are a result of competitors leaving Facebook. Include content about reasons to purchase incentives that aims to increase your used inventory.
A Lack of Inventory Doesn’t Have to Cause Panic
Take this as a warning if your dealership is considering cutting back on marketing due to limited inventory. Consumers in the millennial and Generation Z market are starting their purchase cycles quickly, and switching between brands is more common than ever. Your dealership can keep up with the needs of the day while remaining lean by having a website that is keyword-optimized and pay-per-click ads that are properly funded.
Want to know more? For a free website assessment and budget analysis of your digital marketing efforts, get in touch with our sales team.
Sources:
CNBC: Why demand for new autos is surpassing supply and why this is terrible for consumers but advantageous for investors by JD Power Despite low inventory, April new-vehicle sales will set a record, and consumers will spend more on new cars than ever before. April, Should I Be Concerned About the Shortage of New Cars?
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