Each year, dealerships pour hundreds of thousands of dollars into automotive marketing strategies in the form of television advertisements, organic search marketing, banner ads, and more.
The typical franchised dealership spends $554,292 on advertising each year, allocating over 90 percent of their budget to car sales, which are responsible for less than 52 percent of a dealership’s overall revenue.
These expensive marketing strategies advertise to broad audiences, gambling on their ability to reach customers who are planning to purchase a vehicle or seeking service.
Many dealership advertising efforts are inefficient and costly, but with the right technology, they don’t have to be.
Re-Thinking Automotive Marketing
The average cost of an automotive lead is over $205. That’s over $205 just to market to an individual who might be interested in buying your car.
But what if your dealership could increase revenue while reducing ad spend?
47 percent of dealership gross profits are attributable to dealership service, not car sales. Yet advisors find that service department marketing only makes up 10 percent of the average dealership’s advertising budget.
While vehicle sales fluctuate, all vehicles require consistent maintenance. This makes service departments a reliable source of revenue, and investing in maintenance marketing can produce significant results.
What if you had an app that enabled you to reach your customers directly and remind them when service is due? When installed in consumer vehicles and activated by the driver at purchase, Elo GPS with CarRx runs automotive diagnostic scans, recommends vehicle maintenance, and enables users to schedule maintenance at your dealership right from their phone. Making vehicle maintenance easy for your customers and you.
Instead of spending over $205 to target potential customers, your dealership can target and market to current customers who you know are in need of service.
This is a mutually beneficial automotive marketing strategy, providing functional convenience and connectivity to the customer and consistent business to your service department.
In addition to vehicle diagnostics, drivers also have access to smart alerts, real-time location tracking, theft protection, 24/7 vehicle recovery assistance, and more. In turn, dealerships benefit from consistent return service.
Get Started with Elo GPS and CarRx
Elo GPS with CarRx enables your dealership to place real value at your customer’s fingertips while maintaining a direct connection to your customer’s vehicle. Whether it’s a faulty fuel line or an oil change, keep your valued customers coming back to you for their service needs.
Schedule a demo today to get started with a more effective automotive marketing strategy.