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Driving Sales - Building Budgets Around Today's Millennial
- 1. #DSES Building a Budget in the World of Millennials Dave Spannhake Founder & CEO, Reunion Marketing
- 2. #DSES MILLENNIALS HAVE SET THE TRENDS INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS MILLENNIAL CONSUMERS MANUFACTURER ADOPTION MAINSTREAM TRENDS DIGITAL SKEPTICS MARKETING ONLY TRADITIONAL
- 3. #DSES MILLENNIALS HAVE SET THE TRENDS ;) ;P ;*
- 4. #DSES THE CURRENT AUTOMOTIVE LANDSCAPE • 17.6 million sold new units in 2016 All-time high, surpassing 17.5 in 2015 • United States population – 323.1 million 5.4% of the population bought a new car last year • The average month then sees 0.45% of the population is purchasing a new vehicle
- 5. #DSES THE AVERAGE DEALER MARKETING SPEND
- 6. #DSES GROSS MARGINS CONTINUE TO DROP 2016 NADA STUDY $630 IS THE AVERAGE COST TO MARKET EVERY SOLD VEHICLE ACROSS THE COUNTRY OUR OPPORTUNITY IS TO INCREASE SALES WHILE CUTTING THE MARKETING COSTS PER CAR SOLD
- 7. #DSES WE ALL KNOW THE TREND
- 8. #DSES THE DECISION TO BUY HAPPENS ONLINE
- 9. #DSES DIGITAL CONSUMPTION NOW OUTPACES ALL OTHER MEDIA
- 10. #DSES THE QUESTION: TRADITION OR DIGITAL?
- 12. #DSES THINK DOMINATING INTENT AND STIMULATING INTEREST.
- 13. #DSES BUILD YOUR BUDGET AROUND THE LOWEST HANGING FRUIT AND UP
- 14. #DSES BEST PRACTICES TO BUILD A BUDGET Example Sales Goal – 150 units Marketing Cost Per Car Sold Goal - $250 Marketing Budget 150 x $250 = $37,500 Set marketing costs per car sold goals and set sales goals Multiply the two – there’s your budget Build your budget then dominating intent, moving up that funnel, then stimulating interest among your most likely audiences and geographies
- 15. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $37,500 Remaining Marketing Budget
- 16. #DSES FIRST: DRIVE WEBSITE TRAFFIC There are no competitors on your website, where you have the opportunity to be the sole influencer. If the manufacturer mandates a site that doesn’t work, spend the money on a second site. This is the channel at the bottom of the intent funnel where people are very likely to be in-market to buy. Allocate budget to help it convert and create shoppers!
- 17. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $34,000 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - $2,000 • Website Conversion Add-ons - - $1,500
- 18. #DSES IT STARTS WITH MARKET RESEARCH Tools You Can Use » Google AdWords Keyword Planner » MOZ » SEM Rush » SpyFu » Answerthepublic.com
- 19. #DSES BUILD CONTENT AROUND THOSE SEARCHES
- 20. #DSES SEO CREATES SEARCH ENGINE VISIBILITY META-TAGS QUALITY CONTENT STRUCTURED DATA PAGESPEED NO DUPLICATE CONTENT URL STRUCTUREDIRECTORY OPTIMIZATIONMOBILE FRIENDLY PHOTOS | ALT TEXTLINK BUILDING
- 21. #DSES SEO IS NOT DEAD. YOU JUST NEED TO DO IT RIGHT.
- 22. #DSES THESE RESULTS ARE ATTAINABLE
- 23. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $32,000 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - $2,000 • Website Conversion Add-ons - - $1,500 • Search Engine Optimization - - - $2,000
- 24. #DSES USE PAID SEARCH FOR NOW BUYERS
- 25. #DSES BE SURE YOUR CAMPAIGNS ARE HIGH QUALITY
- 26. #DSES WHY IS QUALITY SCORE IMPORTANT?
- 27. #DSES BE SURE TO KEEP IN MIND THESE ASPECTS OF PPC ANALYTICS INTEGRATION COST PER LEAD COMPELLING UNIQUE AD COPY AD EXTENSIONS QUALITY SCORES NEGATIVE KEYWORDS IMPRESSION SHARE GEO
- 28. #DSES QUESTIONS TO ASK YOURSELF Do you own your AdWords account? What do your quality score metrics look like? Is your agency taking a commission on your spend? How do your ads look and influence customers compared to your competition?
- 29. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $25,000 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - $2,000 • Website Conversion Add-ons - - $1,500 • Search Engine Optimization - - - $2,000 • Paid Search – Google/Bing - - - $7,000
- 30. #DSES MEASURE YOUR SUCCESS WITH
- 31. #DSES INTEGRATE RESOURCES AND USE THE DATA BEHAVIOR REPORTS LANDING PAGES, PAGE SPEED, EVENTS, & MORE CONVERSION REPORTS GOALS & ATTRIBUTION SET UP GOALS CREATE FILTERS INTEGRATE WITH SEARCH CONSOLE INTEGRATE WITH ADWORDS USE GTM AND SET UP EVENT TRACKING CREATE RETARGETING AUDIENCES ENABLE DEMOGRAPHICS TRAFFIC ACQUISITION REPORTS SOURCE/MEDIUM REPORT ADWORDS REPORTS CAMPAIGNS REPORTS AUDIENCE REPORTS DEMOGRAPHICS, GEOGRAPHY, DEVICES, & MORE
- 32. #DSES INTEGRATE RESOURCES AND USE THE DATA SEARCH WIDGET ON HOMEPAGE CLEANING UP THE NAVIGATION CLICK-TO-CALL ON SRPS & VDPS REMEMBER THE PURPOSE: DRIVE SHOPPERS TO NEW & USED SRPS AND SCHEDULE SERVICE ENSURE AN EASY TO USE SEARCH FILTER DON’T OVERDO IT! LESS CLUTTER
- 34. #DSES MORE WEBSITE LESSONS TO KEEP IN MIND Your Homepage is Meant to Drive People Deeper Into the Site • Navigation & Inventory Search Widget - 79% of total clicks • Homepage Banners – 6% of total clicks • First three homepage banners – 91% of banner clicks Remember to look at your analytics in terms of shoppers and not total sessions • this can be heavily polluted and paint the wrong picture and often does. How many dealers are only ever looking at their site on their desktop computers? • Remember that the majority of traffic now is coming in on mobile so be looking there too! Meet Your Staff Page is almost always in the top ten page visits • People want to see who they will be working with so look professional
- 36. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $24,500 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - $2,000 • Website Conversion Add-ons - - $1,500 • Search Engine Optimization - - - $2,000 • Paid Search – Google/Bing - - - $7,000 • Display (only retargeting) - - - - - $500
- 38. #DSES MEASURING THIRD PARTY SUCCESS KPIS to Measure • Merchandising!! • Amount Spent • Cost Per Vehicle Viewed • Cost Per Lead • Percentage of Inventory Viewed
- 39. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $18,500 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - - $2,000 • Website Conversion Add-ons - - - $1,500 • Search Engine Optimization - - - $2,000 • Paid Search – Google/Bing - - - $7,000 • Display (only retargeting) - - - - - - $500 • Third Party Sites - - - - - - - - $6,000
- 40. #DSES DOMINATE INTENT, THEN STIMULATE INTEREST
- 41. #DSES WHERE ARE YOU SELLING CARS? WAKE COUNTY RALEIGH
- 42. #DSES WHERE ARE YOU SELLING CARS? RALEIGH WAKE COUNTY
- 43. #DSES HOW FACEBOOK HAS SHIFTED Facebook does not show every post a business creates and instead dealerships rarely gain visibility this way 65 million businesses post 1.5 times a day to reach just 2 percent of Facebook’s audience With 2 percent of the people who “like” your dealership see what you are posting that would mean if you have 10,000 likes, only 200 people would see your post In 2016, organic reach declined 52% from January to June» » » »
- 45. #DSES QUIT WASTING MONEY ON ORGANIC Paid posts allow you to truly reach your targeted audience and stimulate interest! Organic posts no longer reach an audience large enough to justify costs for most dealerships.
- 46. #DSES LEVERAGE PAID SOCIAL MEDIA ADVERTISING TARGET SPECIFIC AUDIENCES • Customer Database • Max & In-Market Prospects, 90 to 180 Days to Buy • Target Model-Specific Owners • Geography • Demographics • Income Levels • Retargeting Ads • So, so, so much more • And definitely NOT Page Likes
- 48. #DSES TEST AND OPTIMIZE. TEST AND OPTIMIZE. RALEIGH WAKE COUNTY AUDIENCES DEMOGRAPHICS MESSAGINGLANDING PAGES CREATIVE & DESIGN AD SCHEDULES … AND AGAIN, SO MUCH MORE!
- 49. #DSES WHYARE YOU WE AS AN INDUSTRY NOT CAPITALIZING ON THIS?
- 50. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $14,500 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - - $2,000 • Website Conversion Add-ons - - - $1,500 • Search Engine Optimization - - - $2,000 • Paid Search – Google/Bing - - - $7,000 • Display (only retargeting) - - - - - - $500 • Third Party Sites - - - - - - - - - - - - $6,000 STIMULUS CHANNELS • Social Media – Facebook - - - $4,000
- 51. #DSES EMAIL & DIRECT MAIL – LEVERAGE CUSTOMER DATA The opportunity here is with your customer database. There are far cheaper channels to stimulate market interest or conquest, focus on the likeliest opportunities Remember that open rates on email campaigns are typically around 15% - most of your emails don’t get through and emails not sent to your database drive site traffic, but incredibly low shopping behavior and site engagement Direct mail is the highest cost channel in terms of CPM – it can be effective to people with expiring leases and those nearing the end of their finance terms but again, there are more cost effective channels to stimulate interest without that intent data
- 52. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $11,000 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - - $2,000 • Website Conversion Add-ons - - - $1,500 • Search Engine Optimization - - - $2,000 • Paid Search – Google/Bing - - - $7,000 • Display (only retargeting) - - - - - - $500 • Third Party Sites - - - - - - - - - - - - $6,000 STIMULUS CHANNELS • Social Media – Facebook - - - $4,000 • Email & Direct Mail - - - - - - - $3,500
- 54. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $4,000 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - - $2,000 • Website Conversion Add-ons - - - $1,500 • Search Engine Optimization - - - $2,000 • Paid Search – Google/Bing - - - $7,000 • Display (only retargeting) - - - - - - $500 • Third Party Sites - - - - - - - - - - - - $6,000 STIMULUS CHANNELS • Social Media – Facebook - - - - $4,000 • Email & Direct Mail - - - - - - - - $3,500 • Other Programmatic Stimulus - $7,000
- 55. #DSES TRADITIONAL MEDIA KPIs TO KNOW WAKE COUNTY Tier 1 and Tier 2 advertising are often the vast majority of stimulus marketing spends in most markets. How much awareness and stimulus are you creating with your spends? REACH – what percentage of your target audience are you getting your messaging to? FREQUENCY – how many times are you getting that message in front of them during the media cycle? CPM – what is the average cost it takes to get in front of every 1,000 people (this is a good comparison for all media types)
- 56. #DSES IS YOUR TRADITIONAL MEDIA MAKING AN IMPACT? RALEIGH WAKE COUNTY With the average person seeing more than 10,000 ads a month and noticing more than 4,500 ads what kind of frequency does your messaging need to have to make an impact?
- 57. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $4,000 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - - $2,000 • Website Conversion Add-ons - - - $1,500 • Search Engine Optimization - - - $2,000 • Paid Search – Google/Bing - - - $7,000 • Display (only retargeting) - - - - - - $500 • Third Party Sites - - - - - - - - - - - - $6,000 STIMULUS CHANNELS • Social Media – Facebook - - - - $4,000 • Email & Direct Mail - - - - - - - - $3,500 • Other Programmatic Stimulus - $7,000 • Traditional Media - - - - - - - - - - NONE
- 58. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $0 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - - - $2,000 • Website Conversion Add-ons - - - $1,500 • Search Engine Optimization - - - $2,000 • Paid Search – Google/Bing - - - $7,000 • Display (only retargeting) - - - - - - $500 • Third Party Sites - - - - - - - - - - - - $6,000 STIMULUS CHANNELS • Social Media – Facebook - - - - $4,000 • Email & Direct Mail - - - - - - - - $3,500 • Other Programmatic Stimulus - $7,000 • Traditional Media - - - - - - - - - - NONE • Oher – Events/Production/Etc - $4,000
- 59. #DSES BUILDING THE BUDGET 150 x $250 = $37,500 marketing cost per car sold Marketing BudgetUnits $0 Remaining Marketing Budget INTENT CHANNELS • Highly Converting Site - - - - - - $2,000 • Website Conversion Add-ons - $1,500 • Search Engine Optimization - - $2,000 • Paid Search – Google/Bing - - $7,000 • Display (only retargeting) - - - - $500 • Third Party Sites - - - - - - - - - - $6,000 STIMULUS CHANNELS • Social Media – Facebook - - - - $4,000 • Email & Direct Mail - - - - - - - - $3,500 • Other Programmatic Stimulus - $7,000 • Traditional Media - - - - - - - - - - NONE • Oher – Events/Production/Etc - $4,000
- 60. #DSES BEST PRACTICES TO BUILD A BUDGET
- 61. #DSES HOW MUCH OF YOUR BUDGET IS ALLOCATED TO DOMINATE INTENT? RALEIGH WAKE COUNTY
- 62. #DSES UNDERSTAND THE KPIs AND PURPOSE FOR EACH MARKETING CHANNEL
- 64. #DSES CONSIDER THIS… RALEIGH WAKE COUNTY Target 10,000 people with direct mail = A. $10,000 Target 10,000 people with Facebook = B. $80 - $100
- 65. #DSES CONSIDER THIS… RALEIGH WAKE COUNTY Spend $5,000 on Radio in medium-sized metro = A. 1.5 frequency Spend $5,000 on AdWords in medium-sized metro = B. 1,000 to 2,000 “Now Buyers”
- 66. #DSES CONSIDER THIS… RALEIGH WAKE COUNTY Spend $30,000 to $50,000 on High Funnel broadcast advertising for stimulus A. Worrying about a secondary site that costs between $1,000 and $2,000 when the manufacturer’s website does not perform but others convert twice as effectively B.
- 67. #DSES CONSIDER THIS… RALEIGH WAKE COUNTY There’s a lot of conversation about how VDPs are a metric that doesn’t matter. A. VDPs by definition are people looking at your inventory – the sole purpose of what your marketing efforts are meant to do! Of course it matters! B.
- 68. #DSES CONSIDER THIS… RALEIGH WAKE COUNTY Learning a ton of actionable strategies at Driving Sales and Leave A. Going back to the dealership and not executing on The Opportunities B. Fired Up
- 69. #DSES Thank You! Dave Spannhake Reunion Marketing CEO & Founder dave@reunionmarketing.com