The automotive industry currently faces a unique set of challenges that have left many dealership owners feeling like they are navigating choppy waters.
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Rising interest rates, inventory shortages, and volatile wholesale prices have created an environment of uncertainty and intensified competition.
As an automotive digital marketing company, AutoSweet understands the concerns you may have. We’re here to offer guidance on using digital marketing as a powerful tool to thrive in the current market.
The Current State of the Market
1. High-Interest Rates
Interest rates have been on the rise, impacting consumer financing decisions. As interest rates increase, the overall cost of purchasing a vehicle also goes up, which can deter potential buyers and make it harder for them to qualify for financing.
One bright spot: A recent analysis of Kelley Blue Book data shows that year-over-year price increases for new vehicles have slowed, showing the smallest increase in a decade. That’s good news for consumers who’ve been priced out of purchases in recent years.
2. Inventory Shortage
Supply chain disruptions, production delays, and other factors have led to inventory shortages in the automotive sector over the past few years. Limited stock levels mean customers have fewer choices, which increases demand and potentially leads to longer wait periods or a loss of potential sales. Cox Automotive economists don’t see any sign of this demand waning, especially in the used car market.
3. Volatile Wholesale Prices
The fluctuations in wholesale prices have further complicated matters for dealership owners. Predicting vehicle values and setting competitive pricing has become a challenging task, affecting both profits and customer negotiations.
Leverage Digital Marketing for Success
Digital marketing can alleviate the pain of these challenges for automotive dealerships. Leveraging the power of online platforms and employing the right strategies can help you overcome obstacles and achieve success. Here’s how:
1. Build a Strong Online Presence
In the digital age, having a robust online presence is non-negotiable. Create an engaging and user-friendly website that showcases your inventory, offers transparent pricing, and highlights your unique selling propositions.
2. Search Engine Optimization (SEO)
Optimize your website and content to rank higher on search engine results pages, especially locally. Utilize relevant keywords and location-based optimization to attract customers actively searching for vehicles in your area. Don’t forget that your Google Business Profile as well as your Google star rating works in conjunction with on-page SEO of your website. A good SEO strategy works to improve all three.
3. Embrace Social Media
4. Paid Advertising
Invest in pay-per-click (PPC) advertising to generate immediate traffic and leads affordably. Use well-crafted PPC campaigns that target specific demographics and use Google search to get your inventory products with links to your VDPs. You’ll find the lowest cost per click (CPC) in automotive that helps you maximize your marketing budget.
5. Email Marketing
Build and maintain a database of customer email addresses to nurture leads, send personalized offers, and keep your dealership top-of-mind for future purchases or services. You need the power of first-party audiences that you build and grow over time. Your valuable first-party data includes the unsold prospects in your customer relationship management (CRM) database, your dealer management system (DMS) sales and service customers, and acquired conquest lists.
6. Video Content
Use the power of video to showcase your inventory, give virtual tours of vehicles, and share valuable tips or insights related to the automotive industry. Video content is highly engaging and helps establish trust with potential customers.
7. Data-driven Marketing
Leverage data analytics to understand customer behavior, preferences, and buying patterns. Use this information to tailor your marketing efforts and offer personalized experiences to potential buyers. Measure the ROI that is sales generated from your marketing investments on a per campaign/per channel basis every single month and ensure that you’re getting the best results from every dollar you spend.
8. Online Reviews and Reputation Management
Positive reviews and testimonials play a crucial role in building trust with potential customers. Encourage satisfied buyers to leave reviews and address any negative feedback promptly and professionally. Responding to any positive or negative feedback that reviewers leave is essential to build trust with your prospects who are checking you out.
9. Collaborate with Influencers
Partner with local influencers or automotive enthusiasts who can promote your dealership on their social media channels, reaching a broader audience and lending credibility to your brand.
10. Virtual Showrooms and Test Drives
Offer virtual showrooms and virtual test drive experiences to bridge the gap caused by inventory shortages. Use cutting-edge technology to bring the dealership experience to customers’ screens.
In conclusion, the current state of the automotive market may present numerous challenges, but it also offers an opportunity for your dealership to stand out from the competition through digital marketing.
Embrace the power of the online world, understand your customers’ needs, and tailor your marketing strategies accordingly. By doing so, you can not only survive but thrive in this ever-evolving automotive landscape.
At AutoSweet, we are experts at helping dealerships navigate these challenges and reach success through innovative and data-driven digital marketing solutions. Together, let’s steer your business toward a brighter and more prosperous future.
Interested in a free five-minute consultation with one of our digital marketing consultants? Let us know!
