On the latest episode of Kain and Co., host David Kain, president of Kain Automotive, explains how to make plans for digital marketing strategy as you head into a new quarter and the new year. 2020 and 2021 have presented many challenges for everyone to have to work through. Kain says to look at the fundamentals and KPIs when it comes to your marketing, processes, and tactics.
Kain says for you to cover the expenses of the operations, you need to be able to get your money back. There’s a lot of elements in making your marketing come along. He says if you spend a dollar, you should be making five dollars back to cover the cost.
Take a look at the overall leads expenditure. Those must come back into the gross, that you’re looking at. Kain says, look at the cost, gross, and close rate. Sometimes, you just need to cut to the chase.
When the marketing companies come to you, Kain says, you should turn your spreadsheet around and show them how you are growing them. He says you got to generate the very best possible opportunity for the lowest possible cost. 100% of your opportunities will come from your marketing but your results are going to come from your process and tactics.
The number one process metric Kain says he looks at is the engagement rate. A lot of times people are just stopping the clock and aren’t helping the guest. Your engagement rate needs to be around 70 to 80%. If you’re doing a great job with your communication tools, including emails and messaging, you’re going to have a high engagement rate.
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You then want to have a high appointment rate. The appointment can be at their house, work, or dealership. The confirmation process must be in there because that’s how you get the appointment show rate. Once they show, then you have a high close rate. Those are the key performing indicators of success.
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