The automotive industry is in flux and may be experiencing even more upheaval over the next six months. Small businesses like auto dealerships need to keep up with those changes by measuring and adapting to what they see. Marketing KPIs (key performance indicators) are one way to gauge whether your dealership is on the right track.
KPIs help measure how effective your marketing efforts are. You can ensure that your dealership stays competitive and improves its bottom line by tracking the correct KPIs. So, which KPIs should auto dealerships be monitoring in 2022? Here are some of the most important ones.
1. Website traffic
Your website is still one of your most essential marketing tools. It’s where potential customers go to learn about your dealership and the vehicles you sell. That’s why it’s vital to track how much traffic your website is getting and, more importantly, where the audience is going.
There are several ways to do this. Google Analytics is a free tool that can give you detailed insights into your website traffic. Pay attention to the overall volume of traffic and the sources of that traffic. Are potential customers finding your site through search engines or social media? Are they responding to your paid ads, or are you getting better performance from your SEO and blogs?
And although you may think the homepage is most important for traffic, it’s pages like your build and price, inventory search, and request for quotes, that are most important.
2. Lead conversion rate
Generating leads is only half the battle. You also need to convert those leads into customers. That’s why it’s crucial to track your lead conversion rate.
A high lead conversion rate is a good sign that your marketing is effective. On the other hand, a low lead conversion rate could mean that you need to work on making your site more user-friendly or that you need to offer more enticing incentives for visitors to fill out your forms.
If numbers have dropped after a redesign, then it’s a sign that you need to do a user survey to figure out what has happened.
A lousy redesign or user experience issue are just a few of the problems users may negatively affect a lead conversion rate. Several factors can influence your lead conversion rate, from slow website performance to lack of response to requests. First, make sure you’re tracking the right KPIs to identify any areas that need improvement.
3. Cost per lead
Another important KPI for auto dealerships is the cost per lead. This metric measures how much it costs you to generate a single lead. To calculate it, divide your total marketing budget by the number of leads you generated. A low cost per lead is ideal, as it means that your marketing is very efficient. If your cost per lead is high, though, don’t despair. There are always ways to improve it.
4. Customer satisfaction
Keeping your customers happy should be a top priority. That’s why it’s important to track customer satisfaction levels. There are several ways to do this, but one of the simplest is to send out surveys after each purchase or service.
Ask your customers how likely they are to recommend your dealership to their friends or family members. A high percentage of customers who say they would recommend you is a good sign that they’re happy with your dealership and had a positive experience.
Pay attention to the overall satisfaction levels and areas where customers are unhappy. Then, take steps to address those issues personally and quickly.
5. Marketing ROI
Tracking your marketing ROI is essential to make sure your marketing efforts are paying off. There are many ways to calculate your ROI, but one of the simplest is to divide your total marketing spend by your total sales.
For example, if you spent $10,000 on marketing last month and generated $100,000 in sales, your ROI would be 10%. Keep track of your ROI over time and adjust your marketing budget accordingly.
You can ensure that your auto dealership is on the right track by monitoring these KPIs. Pay attention to any changes or fluctuations so you can take steps to improve your performance.
Did you enjoy this article from Steve Mitchell? Read other articles on CBT News here. Please share your thoughts, comments, or questions regarding this topic by submitting a letter to the editor here, or connect with us at firstname.lastname@example.org.