01 November 2019
Going to NADA 2019? Please visit FrogData at NADA 2019 Booth #2041S - Data Analytics to watch the Dealership of the Future in Action.
No matter where your dealership operates, two of its most important and obvious goals will be
to gain more sales and rake in more money.
are numerous ways to go about doing this, in this article, we’ll be telling you
about one of the most effective ways. And the fact that it’s also
hugely profitable is an added benefit.
talking about is the 2% rule.
The 2% rule is mostly about converting traffic that’s
already on your auto dealer website. The visitors on your website, referred to
as traffic, can be broken down broadly into organic and paid traffic. Organic
traffic consists of those who ventured to your auto dealer website by
themselves, and paid traffic consists of those who were directed to your
dealership website by re-targeting campaigns, PPC campaigns, social media ads,
and so on.
the 2% Rule
The 2% rule says that any additional 2% in conversion of
engaged visitors results in more cars being sold than a 20% increase in
quality website traffic. For instance, if your auto dealer website has 10,000
visitors monthly, 200 of them (2% of 10,000) become leads for you. If you get
2,000 more unique visitors monthly, making a total of 12,000, you will have only 240 new leads.
However, if the 2% conversion rate rises to 4% for the
same 10,000 unique monthly visitors, the number of leads your auto dealer
website generates changes from 200 to 400. This difference is massive and your
sales team gets the opportunity to close far more deals than they would if the
rate was just 2%.
We all know that it takes money to drive more visitors to
your website, and a good amount of it as well. In order to get an additional
2,000 visitors to your website, it would cost your auto dealership about
$6,000, assuming $3 cost-per-click.
On the other hand, increasing the
conversion ratio by 2% should only cost around $1,000.
Paid visitors convert at a much lower rate than organic
traffic does. There is also the concept of highly engaged visitors, who usually
become paying customers and buy their new vehicle within 30 days.
Auto dealerships these days need to use a combination of
technology and tactics in order to identify who these people are, and then
interact with them to push through deals that have a high likelihood of
success.For more information on increasing conversion
and to know how izmoauto can support your dealership, Contact Us.