Everything from professional sports teams to retail stores to news organizations are using analytics to gather data, measure performance, and make decisions that will influence their bottom line. Even Netflix uses analytics to determine which movies it will drop into the queue of a given subscriber.
A car dealership shouldn’t be any different. In fact, the nature of a car dealership’s business should place it at the forefront of analytics use. Here are just a few ways that analytics can help your car dealership.
Are You Making the Most of Your Dealership’s Data?
Get a detailed measurement of your online marketing efforts.
Analytics can be used to see a page-by-page breakdown of how your online listings are performing. Which listings are generating the most traffic? What details are online shoppers most interested in? Analytics can answer these questions to help you shape your online marketing efforts accordingly.
Learn which models in your inventory are performing — and which ones aren’t.
Different models sell better in different markets and car dealerships can use analytics to identify which models are moving off their lot and which ones are taking up valuable space. This information can be used to invest in the right kind of inventory for your dealership’s demographic.
Calculate the impact of discounting on your bottom line.
Discounting can help you sell a car, but at what expense to your bottom line? An analytical report can pinpoint which types of discounts are beneficial and which ones are leaving your profit margin in the dust.
Improve your time to market.
The right analytics can track the average time it takes for a vehicle to get online and help dealerships better manage their inventory.
Know your cost per click.
Dealerships can use analytics to find out the average number of Vehicle Details Pages viewed as it correlates to the number of leads generated to help you better understand your true cost per click and how you should allocate your online investments.
Get Analytics from MAXDigital
MAXDigital provides powerful analytics to help car dealerships optimize their online marketing and merchandising efforts to maximize sales and profit margins. Schedule a demonstration today to see how our analytics platform can change the way you do business.
The automotive retail business has changed a lot in recent years. People don’t shop for cars the same way they did a few years ago, and dealerships don’t sell cars the same way (or at least they shouldn’t). Dealers have also changed how they make business decisions, too.
You and your sales managers probably spend a lot of time considering your inventory turnover. You’re looking at annual inventory turn, quarterly, monthly. Maybe even on a smaller timescale than that, and this goes for your new and used vehicle inventory.
And when you look at inventory turnover, you’re comparing it to your bottom line and you’re probably wondering “Does this add up?”
Right now, ask yourself instead: “How should I calculate my inventory turnover ratio?”
How to Find Your Inventory Turnover Ratio
Given that it’s expressed as a ratio, finding your inventory turnover is a matter of doing some basic math. You’re dividing one number into another, the Cost of Goods Sold by your Average Inventory.
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Now you would need to do some additional math to get the values for those variables. To find your Cost of Goods Sold, just add up the total value of all the inventory you moved in the given period.
To find your average inventory, total up the number of cars in your inventory at the beginning of the period and the number of cars in your inventory at the end of the period and divide those by 2.
Cost of Goods Sold = (Beginning Inventory + Ending Inventory) / 2
This is how you can change the timescale for the turnover you’re looking at, be it weekly, monthly, quarterly, and so on.
Some dealers also like to consider their Days Sales of Inventory, or the number of days it takes to sell a given inventory. The formula for that is as follows:
Days Sales of Inventory = (Average Inventory / Cost of Goods Sold) x 365
Days Sales of Inventory = 365 / Inventory Turnover Ratio
If you’re interested in these numbers, as any car dealer should be, it means you’re concerned about how efficient you and your sales managers are at managing your inventory. Are you stocking as many cars as you should be? Are you overstocking?
These are the right questions to be asking, and if you have the right tools, you should come to the right answer even faster.
Inventory Management Is More Efficient with MAXDigital
We use calculators because they’re easy. You can do math in your head no problem, but when you can punch some numbers into a calculator and get the answer instantly, that frees up your brain for more analytical thinking. It’s just a way of reducing friction.
MAXDigital’s Inventory Management Platform does the same thing for your inventory. Sure, you could commit those equations to memory, but you’re better off using that mental real estate for more important details.
Our software does all the calculations for you. We’ll give you inventory turnover ratio in an instant, over whatever period you need. And then we go a step further.
The MAXDigital Inventory Management Platform also offers you sophisticated stocking and appraisal tools so you know what cars to buy and at what price. You can streamline your internal processes, improve your inventory turnover, and maximize your gross profits.
If that’s not enough, we also offer you tracking tools that will help you assess your performance on the group level and by individual store. Our detailed online analytics also keep you on top of that all important digital performance – the key to surviving in today’s auto retail market.
Does this sound like something you want to learn more about? We’re happy to fill you in on all the details. Get in touch with MAXDigital today to schedule a product demonstration about any of our solutions. We’re looking forward to hearing from you.
In the meantime, good luck crunching those numbers.
There’s no shortage of things to see and do in the city of New Orleans. And if you just happen to be there during the NADA Convention and Expo in January of 2017, one of those things is to stop by the MAXDigital booth.
MAXDigital, an industry leader in helping car dealerships optimize their online presence in order to maximize sales, will be well-represented during the annual convention put on by the National Automobile Dealers’ Association.
New Orleans is known for its Super Bowls, and the MAXDigital sports bar will be open for business where visitors can have a drink and take in the action on more than 10 TV’s. While you’re there, go ahead and fill out a survey and be entered to win a $250 gift card.
Better yet, complete a live MAXDigital product demonstration and receive a $100 Visa gift card just for doing so. Plus, you’ll be entered in a drawing to win a framed autographed jersey from Hall of Fame quarterbacks Joe Montana, Dan Marino or John Elway.
We’ll also be hosting a pop-a-shot tournament with prizes for the highest scores from each day.
About the Convention
The four-day convention and expo, tabbed the “Auto Industry Event of the Year,” runs from Jan. 26-29 at the New Orleans Ernest N. Morial Convention Center. Automotive dealers in attendance will have the opportunity to network with major automotive manufacturers, share ideas, learn about new insights and trends in the industry, listen to keynote speakers and participate in workshops. You’ll also have the opportunity to connect with vendors like MAXDigital who are reshaping and redefining the way cars are bought and sold.
In addition to acquiring a wealth of knowledge and meeting other important people in the industry, there will also be time for fun with the NADA100 Carnival. On Jan. 26 at Mardi Gras World, NADA will be celebrating its 100th anniversary with live music including Foreigner and New Orleans jazz musicians along with cuisine from some of New Orleans’ most famous establishments.
Register for the NADA Convention and Expo now and do New Orleans MAXDigital style!
The holiday season is the biggest time of year for retailers and the automotive industry shouldn’t be excluded. The end of the year is a busy time for dealerships as they rush for yearly sales goals and quotas, and the current year’s inventory needs to be moved to make room for next year’s models. These factors have led December to be a prime car shopping time for consumers.
So how can dealerships take advantage of the holiday rush? Here are five ideas for automotive marketing for the holiday season that will bring the holiday shopping rush to your showroom.
How to Make Your Automotive Merchandising More Festive
Put Some Holiday Spirit in Your Dealership
Your dealership should always be a warm and inviting place for customers, and this is especially true during the holiday season. Don’t just string up a couple lights and call it a day. Get the biggest tree you can find, set up a train that moves throughout the showroom, and pass out free hot cocoa. Bestowing the spirit of the holidays on your customers will bring out their spirit of shopping.
Get Interactive on Social Media
The Holidays are a great time to be interactive on social media. Have some fun by holding a contest for the ugliest Christmas sweater or funniest family holiday photo. Give some concert tickets — perhaps Trans-Siberian Orchestra — for the winner.
Send a Holiday Card
Holiday cards are a perfect opportunity for some direct mail marketing. Put together a card featuring your staff and some inventory and toss in a coupon for a service.
Run a 12 Days of Giving Sale
Run a 12-day sale with each day offering a different type of incentive for a different vehicle on your lot. Start small and gradually build up to a blockbuster sale on the 12th day.
Have a Toy Drive
Hold a toy drive at your dealership and offer an incentive to anyone who brings in a toy, such as a discounted service or increased trade-in value.
Schedule a Demo
It’s the season of giving, so how about a bonus idea? No matter the time of year, you can always schedule a demonstration to see how MAXDigital can enhance your automotive marketing efforts and optimize your sales.
A vehicle details page (VDP) is the page on your website that provides specific information about a particular vehicle in your inventory. And it’s also the most important page on your website.
Visitors to your website will land on a vehicle details page after clicking through from an inventory search. For example, if a visitor uses your search criteria to look for used Toyota Corollas from model years 2008-2013, they will be presented with a list of vehicles in your inventory that match that criteria. Clicking on any of the results will then take the visitor to the vehicle details page, which will offer up in-depth information about that particular car.
Some of the items to optimize your VDP include:
- Photos of the vehicle
- Pricing details along with any discounts or incentives and a payment calculator
- A description of the vehicle that details the mileage, drivetrain, engine, transmission, fuel efficiency, and features
- Safety ratings and features
- Information on any options, packages, accessories and warranties
- Links to similar vehicles in your inventory
Why a VDP is Important
Your vehicle details pages are critical to your business because visitors to these pages are lower in the sales funnel and more serious about making a purchase. They have already narrowed down their search criteria and are now zeroing in on specific cars in your inventory — and likely that of your competitors.
The VDP has shown to be a proven indicator of sales activity. Research suggests that an increase of just 0.14 VDP views per customer can lead to a 62% boost in conversion rate. In other words, a poor VDP will likely cause a website visitor to be a “one-and-done,” leaving your site after experiencing an unsatisfactory VDP. But a visitor that enjoys a positive user experience with one of your VDPs is more likely to click another, thereby drastically increasing the chances of a conversion.
How to Make Your VDP Work for You
MAXDigital turns browsers into buyers through the implementation of better vehicle details pages. Our VDP’s go beyond the basics to include:
- CARFAX® vehicle history reports
- Market pricing and trade-in value data
- Ratings provided by Dealer Rater
- Unique branding
- Mobile optimization
You can even use your smartphone to take pictures of inventory the second it rolls onto the lot, upload it to your listing and have it instantly distributed to over 300 websites including Autotrader and Cars.com.
Schedule a demonstration with one of our team members today to see what a vehicle details page could look like on your website and what sales should look like on your lot.
It’s one thing to hear the creator of a product sing its praises, but it’s another when the glowing reviews come from your peers. At MAXDigital, we believe wholeheartedly in our products, but also understand that you might want to hear from the actual dealerships that we work with.
Change is happening at BMW of Palm Springs. John Donaghy joined the BMW of Palm Springs team as the new Center Operator — and he is positively raving about the results seen from MAXDigital’s Marketing and Sales Platform at his previous dealership in Fresno.
Consumer behavior is changing. Potential customers show up to your dealership armed with hours of online research, and they’re ready to battle it out over prices. To compensate, many dealers unnecessarily discount prices just to make a sale.
But it doesn’t have to be this way. Take the MAXDigital self-assessment.
This 5-minute quiz can give you the insight you need into how you can do more to Stop the Drop.
Once your assessment is complete, contact us to learn more about our solutions. If you’d like to see first hand what MAXDigital can do, schedule a free product demonstration. We look forward to working with you and transforming your business.
Haggling. It’s an age-old process every dealership is intimately familiar with. But why do customers feel like every visit to the lot will be a battle? It’s a sad and simple truth: they’ve lost trust in car salespeople.
While that may be hard to hear, there are steps you can take to make your customers more comfortable — and ultimately increase your bottom line.
It’s time to learn the ins and outs of the digital customer’s car-buying process.
Co-op programs have a reputation in the automotive industry — and it’s not always clearly understood. Too often when we ask someone how a co-op works, they respond: A manufacturer gives a dealership free money to increase their advertising budget.
In reality, it’s not that simple. The money supplied by manufacturers for co-op advertising often comes with guidelines because, by definition, a co-op is a cooperative society, business, or enterprise. Basically, when a dealership opts to enter into a co-op with an OEM, all advertising efforts become a joint enterprise with benefits to both parties.
Find out how co-op programs can actually benefit your dealership when used effectively.
Sports are exciting, they bring people together, and provide a sense of belonging. This community-centric, positive atmosphere is what almost every dealer strives to bring to their dealership.
How can you use sports to build even more trust with your customers?
In today’s technology-driven world, customers usually begin by shopping on your website, follow through to your listings, and eventually end up in your dealership’s showroom. What if once that customer arrived, they saw a jersey signed by their favorite athlete displayed on the wall? It can potentially push your sale over the goal line.
Find out more about how you can score points with your customers by winning a framed, autographed jersey for your showroom.