Anyone familiar with the retail automobile sector knows that in the current economic context, dealership profitability can be transitory. In that context, while dealership revenues are continually increasing, so are expenses.
That being said, one should acknowledge that the profit margin for new auto dealerships has been hovering around 2% in recent years making it a relatively low-margin business. In comparison, businesses such as accountancy, real estate, and dentistry, to name a few, typically have profit margins of more than 15%.
True, the retail automobile landscape has shifted dramatically since the recession. However, dealership profitability does not have to vanish as quickly as the fragrance of a new car leaving the lot. Here are four approaches to consider when you’re looking for ways to increase your dealership’s profitability in the coming years.
Offer A Digital Solution To Prospective Customers
In today’s digital world, there’s an easier way to make customers feel good about buying from your dealership— by offering them a digital solution to buying cars from your business.
Nowadays, when many dealerships are already selling some of their inventory online, believe it or not, many are still hesitant to make the leap. The biggest reason for this is that it’s difficult to know if it’ll work for your dealership. There are so many options available, and each one has its pros and cons.
However, when customers walk into showrooms they usually have done their research online before coming into the showroom, they have seen the prices, looked at all of the options, etc. For that reason, having a platform as an alternative to on-site car shopping is revolutionary, and many car dealerships are utilizing it in 2022.
However, it’s important to pick a good and reputable platform to utilize, such as TAQ auto, so that you can offer your customers a seamless digital car retailing experience.
Obtain Trust With The Help Of Customer Reviews
Buying your first car can be nerve-wracking, and for that reason, you want to make sure you’re making the best selection possible, so you conduct extensive research. Customer reviews are one of the most crucial considerations in a customer’s choice to buy a car — or anything else for that matter.
Customer reviews are the most economical and cost-effective technique when it comes to car marketing. These reviews must be positive, and they must appear in as many locations as possible. Positive customer evaluations that shed light on your organization can inspire trust in following customers in a manner that few other marketing initiatives can, from your social media channels and your website to Yelp and Google.
Invest In An SEO Automotive Marketing Strategy
Furthermore, you must be prepared to invest in search engine optimization to rank as high as possible on Google result pages. Because crawlers must perceive your website as an industry authority or expert, this may take some time.
As a result, make use of a keyword planning tool to assist you to determine the terms that customers are most likely to look for. You should concentrate on keywords with low difficulty and a high volume. As a general rule, ranking for high-volume keywords is more challenging, which is why you should opt for low-difficulty keywords.
You may start your SEO automotive marketing campaign once you’ve compiled a list of relevant keywords. This should include integrating these keywords into your web content as well as starting to write blog entries that address some of the most prevalent consumer inquiries about your company and the reason they should do business with your dealership or repair shop.
Because 95 percent of auto buyers go online for information, including answers to their concerns and questions, the correct content can play a key role in attracting traffic and encouraging conversions.
Appearing In Google Local Search Results
While organic search is a terrific approach to appear in the SERPs, there are other options available. In fact, because the majority of your consumers will be local, you should concentrate on appearing in local Google search results.
When a specific type of business, such as a car dealership or repair shop, is searched on Google, a map with the top local businesses is frequently displayed at the top of the results page. You want to be in this category of companies since they receive approximately 32% of all clicks.
You must first claim and build your Google Business profile to get there. Make sure your business’s keywords, as well as your city and/or state, are included in this profile.
The auto sales industry is constantly changing, and those who sell for a living must be willing to change with it if they want to succeed at work. Car sales in particular are an ever-changing landscape, with shifting market trends and new technology coming out each year. However, if you are willing to put in the effort and take advantage of available resources, then you will be able to increase your car sales performance in the years to come.