Remember the last time you were relying on Retail Delivery Registration (or RDR) to hit your monthly targets?
Every Q4 dealers face a harsh reality – the sales targets add up from previous months. Dealers often have to turn to RDR as they barely hit yearly sales targets.
With the growing demand of sales targets from the OEM, not to mention mid-month target change at times, how do you keep up in this volatile landscape?
RDR does not seem like a problem in Q1 since we have months ahead to make up for the quarterly targets. However, we are simply pushing the problem forward and continuing the vicious cycle. This habit felt by many dealers causes many issues: unrealistic targets, lack of motivation from sales team, loss of profit by way of heavy discounts not to mention the warranty lost from cars being registered and not burning gas.
Here’s what dealers can do better.
Have a solid plan to hit goals on a quarterly basis
From my years of experience working in the Automotive industry, I noticed a curious trend. Dealers have their sales targets in mind, but most lack a solid game plan on how to achieve them. They see an increase in purchases during some seasons but experience downtime during others. Therefore, Q4 often becomes the slowest time with the biggest targets.
Instead of reactively add more cars to your targets every quarter, plan your quarterly targets. If you aim to sell 1000 a year, it’s reasonable to plan on selling 400 cars in Q3 and 200 cars in Q4. Once you break up a yearly goal into small, achievable targets, you will have a realistic sales forecast in place. Then, you can tailor your marketing accordingly and ramp up your campaigns strategically depending on the number of buyers in the market and your marketing budgets.
Increase your marketing efficiency
It’s no secret that digital marketing and Automotive industry go hand in hand. Dealers are generally aware that 97% of people looking to purchase, repair, or customize a car start their journey online. Most marketing managers that I worked with have solid marketing budgets but their traffic quality could be higher. Their problem is not the lack of resources but wasting these resources on disinterested buyers.
To capitalize on your budget, you should focus on targeting your bottom-of-the-funnel buyers – people who connect with your inventory with the intent of purchasing it.
About 35-45% of your online traffic are potential buyers. By shopping your inventory, they show purchase intent on specific vehicles. There’s no point in marketing to the majority of your online traffic since they aren’t yet finalizing a purchase of a vehicle. If you market to them, you may get similar result but you’ll spend twice the money.
How can sMedia help your quarterly targets?
sMedia has developed a unique targeting solution. We put your ads only in front of people who browse your cars with the intent to purchase during the sales quarter.
Getting your ads in front of engaged buyers is of utmost importance, since we want to ensure they will choose your dealership to visit. So we focus your marketing budgets on prospects in the market who are likely to buy a car right now. With precise targeting, we increase your ad efficiency, reduce your RDR’s and ensure you’re on top of your end-of-year goals.
How do we make it happen? Our technology analyzes hundreds of the behavioral indicators of your buyers such as click patterns, searches, VDP interest, and condenses them into Engaged Prospect Metric. It shows how many serious buyers you have on your website at any given time. This year, our Engaged Prospect Metric helped Canadian Mercedes-Benz dealer to increase ad performance by 736%, without additional budgets.
There’s a buyer for every car on the lot – sMedia can help you spot and attract yours.
Book some time with me to see how you can meet quarterly targets by matching cars on your lot to people who are actually shopping for them.