In today’s automotive market, dealerships grapple with rising inventory ages and fluctuating consumer behavior. Eric Mercado, Executive Vice President of Force Marketing, sheds light on how predictive marketing revolutionizes dealership strategies, enabling targeted outreach and improving customer retention. In today’s episode of Inside Automotive, he shares insights into common challenges dealers face, innovative marketing tools at their disposal, and how data-driven decisions can lead to increased sales and efficiency.
Key Takeaways
1. Dealerships are increasingly concerned about aging inventory as they experience higher floor plan expenses. According to Mercado, the standard strategy involves utilizing predictive marketing to target specific vehicles that need more visibility. By adopting a “sniper rifle” approach to marketing, dealers can effectively draw attention to these vehicles, ultimately boosting sales turn rates.
2. Additionally, Mercado emphasizes the need for dealers to identify prospects who are in a favorable buying position, especially those without negative equity. As consumers hold onto their vehicles longer due to inflated prices from the past few years, identifying potential buyers who can trade-in or purchase vehicles becomes crucial for maintaining sales momentum.
3. Integrating first-party data, artificial intelligence (AI), and machine learning is central to modern marketing strategies. Mercado explains how these tools can identify “buyer quality scores,” helping dealers pinpoint customers more likely to convert. This data-driven approach allows for personalized marketing that directs prospects to specific vehicles, particularly those that need to move quickly.
4. Many dealers view advertising as a necessary expense rather than an investment. Mercado advocates for a shift in mindset, highlighting how granular targeting and clear attribution reporting can demonstrate the value of marketing spend. When dealers can trace customer engagement and sales back to specific campaigns, they’re more likely to recognize advertising as a vital component of their growth strategy.
5. Overall, Mercado notes the importance of synergy between the marketing and sales teams. Both teams must work collaboratively to ensure marketing strategies align with sales goals. Effective communication about what works and what doesn’t can foster a more productive relationship, allowing both teams to adapt and refine their approaches based on real-time data and market conditions.
"Most dealers look at advertising as an expense and not an investment. And when you can get really granular with who you’re targeting, why you’re targeting, what your expectations are, and then see it as material attribution reporting, it helps to hear our outcome goal was this, and we hit it." – Eric Mercado.
