How Dealers Today Leverage Fixed Ops & Digital Advertising for Quicker Recovery - AutoSuccessOnline

How Dealers Today Leverage Fixed Ops & Digital Advertising for Quicker Recovery

Dealers are focusing on making the process of service even easier for customers through enhanced contactless pickup/drop-off.

Many auto dealerships drastically cut back their overall ad spending during the springtime COVID-19 lockdowns as a way to preserve as much of their bottom line as possible. After all, the annual pace of sales fell sharply to 8.47 million in April1. This was a significant drop from the 17.05 million level it was pacing just a few months earlier in January.

However, dealers were one of the earliest segments of business to embrace a message of wide-spread cleanliness and contactless business operations, and this helped its business see quick recoveries by late spring.

This quick response helped dealers gain the confidence and trust of many drivers who still needed to service their vehicles even during the height of the stay-at-home executive orders in many locations throughout the country.

This strategy has paid off considerably, especially as the focus of car sales has turned to maintaining existing vehicles, and the sale of used cars and trucks, which require ongoing and regular intervals of maintenance.

Dealers pivoted their strategies in early summer to shore up their service and repair operations and began shifting digital ad spending over to fixed ops campaigns, as well as focus onsite offers to convert low-funnel service/parts traffic on their websites.

Beginning in May, as dealers ramped up their focus on repair order activity, there was the beginning of an increase in repair orders and service revenue. By June, the numbers continued to increase across the board and dealers focused on making the process of service even easier for customers through enhanced contactless pickup/drop-off.

Leveraging digital channels that place an emphasis on attracting service-interested drivers, we’ve reported a 16.9% increase in dealers’ ad spending on Waze during August. 

Dealers are Realizing the Power of Video

Video has been another vehicle and advertising channel many dealers have increasingly embraced as the pandemic has grown longer. 

In general, consumers find videos more engaging and more popular compared with other forms of advertising content today. The use of video is important for brand storytelling, and in today’s pandemic economy it’s proving to be necessary to increase conversion and exposure, and lead to more successful transactions between dealers and their customers.

By the year 2022, online videos will make up more than 82% of all consumer internet traffic2 — 15 times higher than it was in 2017. Furthermore, it is estimated that today users view more than 1 billion hours of video3 each day on YouTube.

Beyond the level of entertainment and engagement offered by video, dealers have realized it’s a great way to communicate emotional, health-focused and heart-felt messages during the pandemic. It’s more genuine to communicate why and how a dealer cares about its customers and employees through video, more so than any other medium today.

Creating the Right Strategy Heading into Final Months of 2020

This strategy is a big reason why fixed ops have been a driver of revenue for auto dealers this summer, and most likely the remainder of 2020 with the continued emphasis on servicing used vehicles.

Dealers who were progressively focused on taking a proactive approach in changing their operations to cater to the new pandemic customer are seeing pre-pandemic figures in many cases today. These dealers have focused on maximizing service and repair opportunities and promotion through digital advertising channels while making it safe and easy to do business with. This approach creates a winning formula that helps a dealer achieve a lower cost per customer acquisition level, which is the right business strategy that will help them get through 2020. 

Download PureCars’ latest COVID-19 Report for auto dealers.

1: https://www.autonews.com/sales/supply-crunch-still-hampering-sales-recovery
2: https://www.cisco.com/c/en/us/solutions/collateral/executive-perspectives/annual-internet-report/white-paper-c11-741490.html
3: https://www.youtube.com/about/press/

You May Also Like

Transparency Sells More Vehicles

Consumers are demanding a more transparent sales process, so don’t be afraid to give it to them.

According to the 2022 Capital One Car Buying Outlook, 77% of dealers believe that the car-buying process is transparent, but only 26% of consumers believe that. So, what is causing this gap in perception?

Transparency during the car-buying process simply means giving the customer what they want. When a car shopper first contacts a dealership, the first thing they want to know is whether the vehicle is available, what the price is and what their personalized payment is, according to a 2021 study conducted by Marchex and Root & Associates. Next on their list is information about financing and trade-in valuations.

Top 10 Reinsurance Mistakes Dealers Make (and How to Avoid Them), Part 2

Reinsurance company ownership will help you and your family build personal wealth outside the dealership.

Connect to What You Expect

Recon workflow software is designed to bring accountability and organization to this chaotic part of your business.

The Most Powerful Skill in Selling

If you can’t listen to what your customer is saying, how do you really know that you’re solving their needs?

Are You Ready to ROCK in 2023?

It’s time to meet today’s Vehicle Care RockStars, and we are asking you to help get us backstage.

Other Posts

Take Advantage of Super Bowl Viewership to Try New Advertising Strategies for EVs

Interactive CTV ads allow a user to click their remote to set a sales appointment or get a trade-in quote.

Purecars Acquires Customer Data Management Platform, the Autominer

PureCars announced its acquisition of data management platform, The AutoMiner.

The End is NOT Nigh

Car buyers abandon digital tools when the process gets too complex — easy-to-use ecommerce capabilities are essential.

Is the Sky Falling, Chicken Little?

Don’t let anyone fool you into settling for mediocrity in the showroom or online.