Upload
social-media-marketing
View
738
Download
0
Embed Size (px)
Citation preview
Managing for Profitability
Ralph EbersoleDirector, Automotive Consulting and Dealer Training
Tracking and Measuring Media Value in the Online Age
Today’s Presenter
• Ralph Ebersole• Director, Automotive
Consulting and Dealer Training, Cars.com
• 30 years automotive industry experience
• Featured speaker at industry conferences
Tracking and Measuring Media Value in the Online Age
Today’s Objectives
• In today’s workshop, we’ll discuss:• Identify what to track and why• Develop a strategy for tracking your
investments• Assess and calculate ROI for various
marketing channels • Compare value across various online
advertising mediums• Determine next steps
Define Your Media Goals
• Identify clear goals for each marketing activity
• Define the metrics associated with each media channel• Branding• Traffic now
Measure ROI for Different Segments
Great Ads Build on Great Process
• Streamline merchandising with an established process for:• Uploading
inventory• Taking and posting
photos• Pricing vehicles• Writing sell copy
Process
Steps to a Sale-Walk-in
• Greeting• Needs Analysis/Manager intro• Brand Value Story• Select the right vehicle• Vehicle presentation• Demo Ride/Trial close• Trade Appraisal• Ask for the sales• Intro to F&I• Delivery /into to service
Steps to an Internet Sale
• Greet the Customer• Open inventory/Needs
Analyses • Obtain name and contact
information• Build Dealership Value• Sell the Appointment• Make Appointment• Confirm Appointment
• Frequency• Reach• Cost per thousand (CPM)• Effective CPM (ECPM)• Use earnings to compare
different types of online ads
• Earnings are the great equalizer
Branding
Traffic Now
• SEM• Cost per sale• Click to site - site to
store - close• Cost per click X site
conversion rate X close ratio
Traffic Now
• Pay per lead• Cost per sale
• Quantity and quality• Cost per lead X close
ratio
Traffic Now
• Virtual Inventory• Listing sites, dealer web
site, etc.• Cost/detailed page view• Five links to the store:
• Phone• Email• Website transfer• Walk-in• Chat or text
Set Media Expectations
• Before you can measure performance, you must define what you want to achieve
• Align objectives with expectations• Communicate program goals within the
store and with your marketing partners
Objective-Based Measurement
• Know what to measure• Traffic, sales, impressions• Quantity, quality
• Measure all of what you are getting and all of what you are spending• All forms of traffic• Ad costs, creative costs, management
costs
Measurement Benefits
• Evaluate marketing channels, vendors• Assess your ability to adjust processes• Optimize advertising budget, campaigns• Achieve greater staff accountability
“You can’t manage what you can’t measure.”
Assess Your Media Mix
• Evaluate online, offline media spend
• Consider the value each medium delivers
Measurement is Only as Good as the Tracking Behind It
Track Sales Metrics
• Vehicle sales• Appointments set /
kept• Gross profit • Cost per vehicle sold• Parts traffic / revenue• Service appointments
/ revenue
Track Campaign Costs
• Agency fees• Staff time and
resources• Media costs
Compare Costs
• Average cost per vehicle sold: $610*• Cost per sale from leads
• Sales from electronic leads• Cost per sale from SEM
• Cost per click X conversion rate X close ratio• Cost per sale from inventory display
• Sales from internet leads, phone, walk-in
* NADA Data, May 2008
Lead Source Composite Data
Inventory Composite Data
Tracking Tools
• Lead Management / CRM
• Phone monitoring, recording, tracking tools
• Post-sale surveys• Ad views, map prints• Website tracking• Third-party reports
Congratulations! You’ve just purchased a new vehicle! Please take this time to help us better reach our future customers by telling us about yourself: Date: _______________________ Did you purchase:
New
Used 1. Please tell us about yourself: Zip Code City 2. Which Website(s) did you visit/shop online for your vehicle before coming to us? (Check as many as
applicable) Cars.com KelleyBlueBook.com MSNAutos.com Manufacturer
Site AutoTrader.com Edmunds.com Dealer Website
Other Sites Visited:
3. Which radio station(s) do you listen to? 1. 6am-10am 10am-3pm 3pm-7pm 7pm-10pm 2. 6am-10am 10am-3pm 3pm-7pm 7pm-10pm 3. 6am-10am 10am-3pm 3pm-7pm 7pm-10pm 4. Which local new channel(s) do you watch? 1. AM Noon 4pm 5pm 6pm 9pm 2. AM Noon 4pm 5pm 6pm 9pm 3. AM Noon 4pm 5pm 6pm 9pm 5. Did you consult the automotive ads in the newspaper before shopping for your vehicle?
Yes
No
Which Newspapers? 6. Which cable network(s) do you watch?
Estimating Walk-in Traffic
• 1 in 3 shoppers on a used-vehicle site will visit your store versus calling or sending an email*
* J.D. Power and Associates, Dealer Satisfaction With Online Buying Services Study, August 2008
Track Results Daily
5 2 1 20% $2200 $2200 $750 $20 $120
Tracking Implementation
• Who will manage the tracking process?• Internal staff (e.g., GM, SM, BDC, ISM)• External agency
• How will metrics be tracked?• How will the information be shared?
• Audience, frequency, format
What to Calculate
• Sales opportunities created• Cost per vehicle sold
• Total and by source• Closing percentage
• Dealership total and by traffic source• Sales gross
• Dealership, source and individual sales rep
Steps to Improve ROI
• Align ad buys with opportunities• Branding• Traffic now
• Rank advertising opportunities for cost effectiveness
• Determine point where cost of additional traffic exceeds its value
Fine-Tune Your Process
• Use measurement data to identify areas in your process that need to be:• Refined• Replaced
Develop Staff
• Use measurement data to:• Evaluate salespeople• Motivate team
members• Improve sales results• Either change the
person—or change the person
Optimize Campaigns
• Improve marketing effectiveness by:• Increasing spend with partners and channels
that drive business results• Eliminating spend with vendors who
repeatedly fall short of expectations• Reallocating spend with partners and
channels that allow you to economize without compromising results
Review
• “You can’t manage what you can’t measure.”
• If it moves track it.• If you track it measure it.• If you measure it—hold your people
accountable • Either change the process or change the
person
Questions & Answers
Thank You & Good Luck