What KPIs are you using to measure your return on investment?
Quantifying - and proving - your digital marketing return on investment (ROI) is the number one challenge facing online automotive marketers today. Fortunately, nearly everything in digital marketing can be measured.
The real challenge of gaining meaningful insight is knowing what to measure, how to measure it, and why you’re measuring it. The last point bears repeating - why are you measuring it? If you can’t answer that question - and the measurement isn’t going to result in true, actionable business insights - then it’s not worth measuring.
The simple answer to the question “how do I achieve a positive ROI?” is: generate more qualified traffic and convert more customers. Convert more customers and you’ll see increased sales. And, let’s face it - increased sales is the ultimate goal.
But it’s more complex than that. Putting a singular focus on sales as the only true indicator of ROI can skew a decision-making process that should be allowing room for strategies that cultivate growth throughout the entire sales funnel. For example, early brand associations that create greater awareness, increase reach and engagement and, ultimately, drive traffic to your website and showroom.
So, what do you measure? And why? Choosing which key performance indicators (KPIs) to measure requires a thorough understanding of what makes your business tick. What follows is a list of some of the KPIs that Search Optics keeps its lens focused on.
The more leads you bring in, the more potential for sales. But not all leads are created equal. Qualified leads are the consumers who’ve shown interest in you through online behaviors such as comparing vehicles on your site or requesting a quote, rather than those leads who simply visit your page. They’re serious shoppers - more serious than the average lead that comes in - but need attention right now.
Lead Response Time
If you aren’t actively vetting and acting on qualified leads, they’re no good to you. Qualified leads are simultaneously shopping as many as 10 sites in addition to yours and will likely visit just one dealership in person when they’re ready to buy. And it’s not going to be the one that didn’t respond to their inquiry
Increased organic traffic is the gold standard for every digital marketer. There’s an entire industry built around boosting website search rankings and driving traffic through unpaid search results. Boost your dealership’s organic results and traffic with relevant keywords and content that reaches consumers who search for you using terms that make sense to them. The result? Increased reach, traffic, engagement and conversion, and less money spent to achieve it.
Conversion can mean different things to different businesses, but for most auto dealers, conversion means closing a sale. But conversion can also be measured through customer activities such as form submission, phone calls, and dealership visits. Whatever you choose to measure in terms of conversion, this KPI is one of the strongest indicators of ROI and can provide powerful insights into the strength and effectiveness of your digital strategies.
For more about how Search Optics can help your dealership achieve greater ROI, click here.