The connection between digital marketing and showroom activity is getting stronger and stronger. In the past, analytics were limited entirely to the online space, but new data — made possible in part by independent analysts like IHS Automotive driven by Polk, and by sales information tracked in CRM – is bridging the gap between online activity, and deals on the floor.
Take this new data from HookLogic, our newest Certified Technology Provider. They’ve studied results for 193 of the dealerships — all in the Dealer.com network — who use their Web2Show feature, an offers and incentives generator that targets web traffic.
The math? Between January 1 and June 30, 2013, HookLogic’s Web2Show generated 29,577 leads for dealerships on the Dealer.com platform through targeted incentives. Of these leads, 9,814 customers, or one in three people, walked into these dealerships to test drive vehicles, a 33% lead-to-show rate. But here’s the really big news: Of these 9,814 customers, 6,320 purchased a vehicle within that six-month period, a 65% show-to-close rate. Considering that J.D. Power studies show that consumers are now visiting less than two dealerships before purchase – a less than 50% show-to-close rate by default – the dealerships using HookLogic have a much greater chance of selling their inventory.
It is impossible to know with certainty that these dealerships would have sold this many cars without HookLogic. But, as the chart proves, these numbers were the indisputable result of Web2Show incentives targeting.
For dealership Internet managers looking for metrics to measure the strength of their marketing efforts, consider your lead-to-show rate before your show-to-close rate. Provide shoppers a reason to see your vehicles, and your sales will be much stronger.