In traditional dealership advertising – whether it’ radio, TV, newspaper or direct email – GMs usually use one metric to evaluate ROI (return on investment): how many people come through the door.
When dealerships adopt online marketing, they lose focus in vanity metrics that have little to no correlation with sales. Marketers start chasing traffic spikes, bounce rate, time on page, or a number of clicks and hit the wall with advertising campaigns. They target wide segments of unqualified traffic for low engagement at a high cost.
Ad spend becomes a liability rather than an investment.
Vanity Metrics Trap
Think of the last time you examined a marketing report filled with endless data and hundreds of metrics. All of this data is worthless unless you translate it into actionable insight, and convert your customers.
What is the problem with conventional ad metrics?
They have no correlation with sales.
For example, the bounce rate is a classic metric that steers dealers off the course. Based on how many customers engage with only one page
of the website, dealers are quick to judge which strategy is to blame.
Bounce rate example
Imagine that your potential customer has an eye on a particular car. They bookmark its VDP and occasionally check if the car is still in stock – they open the website, glance at the page, close the tab and purchase a car a week later.
On the contrary, imagine a customer came to the homepage and clicked on any other page but never made it to VDP. This visit won’t count as a bounce despite being of low value to the dealership.
Such examples show how some conventional metrics aren’t always reliable.
Finally, you don’t make money off visitors or likes. You make money off engaged customers.
Low engagement at High cost
If you make your ad campaign decisions based on vanity metrics, these campaigns are doomed for low engagement at a high cost. Meanwhile, customer intent data is overlooked.
Let’s look at stats from around shoppers behaviour prior to walking into a dealership.
Only 26% of customers will be willing to fill in a form before buying a vehicle. When dealers
optimize their ad campaigns towards form completions alone, they are attracting roughly a quarter of potential customers.
How to capitalize on implicit customer intent
Imagine a customer walking into your store. By paying attention to a customer’s body language, tone, and inflexion, a salesperson can tell whether or not a customer is interested in buying.
Your website can do the same.
A shopper’s browsing and click patterns give us information regarding their intent. Think of it as digital body language. We call it Engaged Prospect Metric.
The Engaged Prospect Metric shows us how many serious buyers you have on your website at any given time. Our studies have proven these behavioural indicators to be the highest correlated statistic to sales.
If you’re looking to maximize the efficiency of your digital marketing, book a demo of Engaged Prospect metric and bring in-market buyers to your VDP’s.