If you agree that with every step taken in the consumer auto buying process, dealership net sale profit potentially drops, then read on to build net profit with smart advertising moves.
Tier Zero is a term that describes advertising to consumers “mid-funnel.” It’s the new key to net profit.
I’ve observed with hundreds of dealerships that the most profitable moment to reach buyers is when they are still searching for a “beginning point” to their purchase. Attract more higher-profit consumers higher in the purchase funnel, not lower.
Where are these consumers?
They are all around you. They are current lease return customers. They are people in your service lanes with lucrative potential trades.
They also by the thousands are in the open market, beginning their vehicle search and eventually their dealership search.
They are watching live local TV news and streaming favorite shows. Why not reach them then? You can change their path. You can attract their attention.
Why don’t they just come directly to you? They can. And when they do, they often rate the dealership as one of the most-helpful steps in the buying journey. Most studies show about half of buyers use and value the dealer website when seriously considering a purchase.
Dealers report the highest-grossing sales come directly through their website. From there, they also convert at 50% or better, with grosses that will top the board. Dig into your own data to confirm that.
What’s a way to accomplish this? Allocate part of your ad budget to
live local broadcast TV and streaming video (also called OTT). You can guide your dealership message to the general market for massive immediate scale, while at the same time drilling deeper into key ZIP codes.
Next, develop a message that attracts a “now” buyer, and not merely a shopper.
Show value, convenience, depth of inventory, reviews, simplicity and speed. That’s what the buyers want. But do they know they can get it from you right now? If not, get to work. Tell your unique dealership story to the mass market, attract more direct buyers and watch your net profits grow. (Adam Armbruster, left)
Adam Armbruster is a senior partner in the business growth firm Eckstein, Summers, Armbruster & Company located in Red Bank, NJ. He can be reached at 941-928-7192.