New data on why it’s so important to get car shoppers to your website’s vehicle detail pages (VDPs) is shifting the focus away from cost-per-click metrics to VDP engagement metrics. The Cobalt Group’s study “9 Million Reasons Why VDP Views Are The Metric That Matters,” reveals that the vehicles on your website that get more VDP views simply sell faster and at a much lower cost to your dealership.
Our back end data reveals similar findings. With the addition of Deeplinking technology that connects consumers from third-party auto research sites directly to their VDPs, dealers turbocharge sales by exposing the right inventory to the right low-funnel shopper who is ready to buy. Deeplinking exposes the following new key metrics that can truly propel you to profitability.
Key Metric 1: Inventory Turn
In a study of 140 dealerships, new vehicles that were not advertised using Deeplinking averaged 126 Days On Lot (DOL). Those sold after receiving Deeplinking averaged just 71 days. The average DOL for all used vehicles sold without Deeplinking during the study was 127 days. With Deeplinking, that number dropped to just 54 days. What’s the secret? With Deeplinking, you are efficiently making the perfect match between the in-market shopper on a third-party site and the vehicle they want that you have in your inventory.
Key Metric 2: New Traffic
A whopping 98 percent of car shoppers simply refuse to fill out lead forms on third-party sites. Deeplinking allows prospective buyers to bypass lead forms and go directly to your VDPs. As a result, an eye-catching 95 percent of visitors generated by Deeplinking have never been to that dealership website before. By comparison, just 81 percent of the traffic generated by Google AdWords is new.
Key Metric 3: Cost-Per-Shopper
Dealers often tout the couple of dollars it costs to drive a visitor using campaigns like AdWords. But the true cost of one shopper with paid search can be in the range of $20. The discrepancy is due to the fact that two out of three ad-clickers may be looking for service or other information, not a vehicle. By comparison, Deeplinking delivers consumers who are hunting down specific new or used vehicle inventory—and the cost-per-shopper is just $3.99. That’s a savings of 80 percent!
Key Metric 4: Time-On-Site
Deeplinking gets your inventory closer to shoppers who are ready to buy. So it makes sense that these shoppers spend twice as much time on the dealership website as those who come via other channels. The more time spent on site, and the more pages viewed, the more likely it is for that consumer to visit your dealership and purchase a vehicle.
Key Metrics 5 & 6: In-House Leads and Cost-Per-Sale
Finally, it all comes down to selling more while keeping your cost-per-sale as low as possible. When you get the right car in front of the right in-market shopper, you get high-quality interactions that come in-house directly from your VDPs. Deeplinking delivers five-times more in-house leads per dollar spent than traditional advertising programs. Couple this with the money you save by turning inventory faster and you’re handily boosting your overall profits. The proof is in the numbers: dealers with an effective Deeplinking strategy see an outstanding average shopper-to-sale ratio of 23 to 1.
By scrutinizing the right numbers, you’ll see that adding Deeplinking to your online marketing strategy is the best way to spend. It’s what speeds turns and turbocharges sales, and at a much lower cost than traditional advertising programs.
Len Short is a founder of Lotlinx, the first deep-linking automotive advertising platform. Short is an online marketing pioneer having headed up marketing at Charles Schwab and AOL. You can reach him at [email protected].
Latest posts by Len Short
- How DeeplinkingTM to Your VDPs Can Turbocharges Your Sales - September 17, 2014
- Today’s Consumers Shop Differently—Dealers Need to Change Too - June 11, 2014