One of the largest industries in the world, the automotive industry, is changing fast. The automotive industry has also transitioned online, making marketing strategies increasingly complex. However, proven solutions exist to tackle these challenges effectively. However, marketing for the automotive industry became tougher and boosting automotive marketing ROI is even more complicated.
Don’t worry, we have the perfect solution for you. In this blog, we’ll discuss the strategies that will increase your automotive lead generation for car dealerships and will take your business to the top of the automotive industry.
What is Automotive Marketing ROI?
ROI automotive or Return On Investment is a useful metric for tracking the profitability of your automotive marketing campaign. As the name suggests, Automotive marketing ROI is used to measure whether your marketing campaign generates successful results or not.
This metric, denoted as a percentage, gives clear data that affect key decision-making processes.
Importance of Accelerating Your Automotive Marketing ROI
The main goal of automotive marketing is to form a connection between car dealerships and potential customers. And with the advent of the digital era, consumers have shifted online.
So, a robust marketing strategy is a necessity for every car dealership. However, just investing in a digital marketing strategy isn’t enough. Going down the automotive purchase funnel is also important. Without measuring the return, you won’t be able to maximize your strategy.
Thus, measuring automotive marketing ROI is important because:
1. Budget allocations: Car dealership marketing ROI helps identify which channels and campaigns are profitable. This will help you to adjust your budget accordingly.
2. Channel optimization: Automotive ROI highlights what drives the most sales.
Remember to check ROI data to get the most insights continuously. But, automotive marketers often find it challenging to develop strategies that drive results. Let us look at key strategies to improve automotive marketing ROI.
Best Automotive Marketing ROI Strategies: 6 Ways to Increase ROI
With countless marketing strategies available, it becomes difficult to choose the right one for your car dealership. Let’s look at strategies that will maximize automotive marketing ROI.
1. Invest in an SEO-optimized dealer website
Your website is your identity. The first thing that buyers notice is whether your website provides relevant information. Therefore, it is crucial to maintain an SEO-optimized website.
No matter how good of a dealership you are, users will not take you seriously if your website isn’t user-optimized. Therefore, there are certain parameters your website must maintain. They are:
- Faster loading time
- Secured connection
- Unique domain name
- Uniform design
How to do this?
The best way is to hire an automotive SEO team who will help you optimize your website and rank on the SERP.
Why is this the most important?
The answer is that all your automotive digital marketing activities redirect back to your website. In the upcoming sections, we’ll see how having an optimized website boosts car dealership marketing ROI.
2. PPC
PPC stands for Pay-Per-Click. This is a digital marketing tool, where you have to pay a fee every time someone clicks on your ads. Google Ads are one of the most popular PPC available.
How does PPC maximize ROI automotive?
PPC directly provides you with potential leads. For PPC to work, you need to:
Step 1: PPC keyword research
Find out relevant keywords as per your industry and ad type.
Step 2: Bid on relevant keywords
Bidding on keywords tells Google to run your ads when people search for said keywords.
Step 3: improve your quality score
Quality score refers to how relevant your advertisement is to your keyword.
Step 4: Landing page
This is where your website optimization comes into play. Without an optimized landing page, you won’t convert the leads into sales. This leads to losses.
For example; let’s say you invest 5 dollars per click in an ad. If your landing page convinces the user to purchase $500, then you gain profit.
3. Measure KPIs
KPIs or Key Performance Indicators are factors that affect the performance of a car dealership’s marketing ROI. Keeping track of KPIs over time helps to improve automotive marketing ROI.
Let’s explore major KPIs for automotive marketing ROI:
- Cost Per Acquisition (CPA): CPA, as the name suggests, refers to how much it costs to acquire a lead. This can be calculated with a simple formula: CPA= Total campaign cost/ Total leads.
The ideal CPA for maximum ROI in automotive marketing is one-third of Customer Lifetime value (CLV).
- Conversion rates: Written as a percentage, conversion rates or CVR measure the number of users taking the desired action. In simple terms, this KPI indicates how many leads ‘convert’ into sales.
You can measure conversion rates by channel or device. Having both these metrics will help you determine which channel and device is giving you the best results and adjust your budget accordingly. You can also invest in automotive partnership marketing with Spyne.
4. Reviews
Claiming Google Business and being mindful of reviews are the keys to automotive marketing ROI. Why?
Most people google a business and check reviews first. Apart from investing in marketing, guaranteeing customer satisfaction is important. So, regularly check feedback and address any issues that customers are facing.
The automotive industry runs on trust; positive reviews help users gain trust and thus convert to sales and help in automotive customer retention.
5. Social Media Marketing
Automotive social media marketing can make you you and might not be a significant factor in breaking you, but it can affect you because it can fail to take off. It might wave your potential customers and amazing social engagement goodbye. You should think about engagement in new ways.
Whether it is vehicle highlights, dealership shoutouts, user reviews, or even UGC, the most important thing is to streamline your processes. Create content that is relevant to your customers.
Remember that marketing about your dealership should be present where your shoppers are or when they are thinking about getting that brand-new vehicle. You can mix advertising, marketing, and UGC and you might just be able to forge connections and build a digital presence.
Here are some quick tips that you can incorporate into your automotive social media marketing strategies:
- Make short-form content that is highly-watchable and highly shareable so that you can reach a larger audience.
- Invest more in user-generated content and automotive influencer marketing and incorporate it into your dealership sales because that is some of the most engaging content you can provide.
6. SEO
Everybody knows that you need SEO to rank so you can top your shopper’s query results. This is one of the most essential automotive product marketing strategies. It might require some investment, but it will all be worth it in the long run. Managing your search experience might take time, tools, expertise, and an up-to-date understanding of an ever-evolving automotive industry.
Like many investments, SEO takes time to mature in value and make itself feel. But it is still worth it. Let us give you some tips to enhance your SEO ROI.
- Get straight to the top of the SERP results with instant-loading AMP pages.
- You need to remember that the page load speed is a ranking factor. Get your website a speed boost.
- Consider taking the help of the video SEO because YouTube has its own search, and it can help you rank with the Google SERP.
How to Track Automotive ROI?
Perhaps one of the biggest obstacles professionals faces is tracking automotive ROI. Return On Investment is dynamic and often hard to track. However, it is not impossible.
By following best practices of the industry, you can easily track car dealership marketing ROI:
Set clear goals: A rule of thumb in the marketing niche is to set a clear goal. This helps you define what your profit should look like. Additionally, you can compare the return against set goals and improve your strategies.
Use tools: It is impossible to track every single metric by yourself. Therefore, utilize marketing tools. Using tools will give you accurate numbers and prevent loss of data.
A simple formula to calculate ROI automotive is deducting the marketing cost from the sales growth and dividing it by the marketing cost. Yet, there are other more intricate ways to calculate automotive marketing ROI. This formula will give you the basic idea which you can further dive upon.
What is the Best Automotive ROI for a Used Car Dealership?
A good ROI automotive in any used car dealership business is usually between 10% to 20%. It depends on factors such as the business model or the market conditions. However, a positive ROI is considered above 5%, and anything above 10% is considered strong.
You need to remember that the average ROI in the automotive industry can vary but we use 10% as the standard for comparison. Because the automotive businesses are different, they may have different acceptable ROI ranges. For instance, a car dealership can be seen to aim for a higher ROI than a small car repair shop. Economic conditions and competition levels can also influence a business’s ROI significantly.
Some factors affecting a car dealership’s automotive ROI can be their investment cost, which is the initial capital invested to start the business, their profit margin, the percentage of revenue that translates to the net profit, the asset turnover, and the operational efficiency.
How Spyne Can Help in Boosting Automotive ROI?
Spyne is a valuable asset for automotive dealerships and can help boost Automotive ROI. Let’s explore why:
1. Content marketing
Spyne helps dealerships with automotive content marketing. We facilitate content management, scheduling, and analytics. It can also help in automotive email marketing.
2. Vehicle description pages
It creates comprehensive vehicle description pages supported with image storage services and user-friendly search. These pages can help you gain more visibility of the SERP results while enhancing the traffic to your dealership page.
3. Website builder
Managing online presence has never been this easy. With Spyne’s automotive website builder, you can create responsive mobile websites that ensure a seamless experience for users. Creating an optimized website can help you with automotive lead generation for car dealership thus maximizing the ROI.
4. CRM Software
Our automotive CRM software will help your dealership monitor customer interaction and conduct post-sale follow-ups with the customers. It will help gather data and convert leads for increased sales and customer satisfaction, promoting a greater return on investment.
Conclusion
Maximizing your automotive marketing ROI and using automotive marketing software requires a mix of strategic planning, data-driven decisions, and innovative tools like Spyne. By investing in SEO-optimized websites, leveraging PPC campaigns, tracking KPIs, and incorporating customer reviews, you can achieve measurable results and stay ahead of the competition.
To take your marketing efforts to the next level, adopt these proven strategies today. Need expert guidance or insights tailored to your business? Contact us now, and explore our blog for more tips and trends in automotive digital marketing!
  
