Why A Multi-Automotive Dealerships Franchise Struggled with Profitable Conversions?
Insightful Case Studies Automotive Dealerships
These Automotive Dealerships used two main sources to drive traffic: Google PPC & Facebook Marketing. Though they successfully drove traffic, the overall cost per conversion was not where it should have been. How did we help?
We began with a strategy to learn more about their internal process. We started by automotive dealerships investigating the “lead” or prospect’s experience after inquiring via the ad. During the process, we located several inconsistencies. Most prominent was the fact that although the staff was very prompt in contacting the new prospect, their follow-up process lacked several key components and usually did not extend past a few days.
We found that the average lead converted from the first contact alone was less than 3%. Given that automotive dealerships were also understaffed, we devised a re-marketing strategy that would help get the abandoned shoppers back.
Our strategy further incorporated an end-user experience based on the location on the website the person visited, and then placed a dollar value on that visit. For instance, we determined that a person who called in was more eager to get immediate questions to an answer, but wasn’t assigned a high value because they were either price shopping or collecting data. In contrast, people who filled out the contact form showed more intent on actually buying a vehicle. We also learned those same buyers were more inclined to do their due diligence. This allowed us to establish a proper bid strategy for re-marketing.
We also created a Dynamic Marketing approach that gave automotive dealerships more information about the vehicle to determine if that was the car they wanted to inquire about. As a result, inquiry rates were lowered and conversions were raised.
Finally, we examined conversions as related to the Ad Group Level of Keywords. We found many of the high-value keywords were not leading to conversions, resulting in wasted ad dollars spent. We devised a strategy that would allow us to find broad keywords that would drive conversion. After careful examination, we found an additional 1800 Keywords. The result, was 45% increase in buyer intent and an overall increase in ROI of 380%.
Case Studies Automotive Dealerships
Q&A: Why Did a Multi-Automotive Dealerships Franchise Struggle with Profitable Conversions?
Why was the automotive dealership struggling to turn leads into profitable sales?
The biggest issue was a disconnect between lead generation and conversion. While the automotive dealerships may have attracted a high volume of inquiries, they likely weren’t engaging potential buyers effectively. Poor follow-ups, lack of personalized communication, and outdated sales tactics can all lead to missed opportunities.
Could marketing have played a role in the poor conversion rates?
Absolutely. If the automotive dealerships’ marketing efforts weren’t targeted or optimized, they may have been attracting the wrong audience—people who were just browsing rather than serious buyers. Additionally, inconsistent branding, weak online presence, or generic messaging can make it difficult to stand out in a competitive market.
How does the customer experience impact conversions?
A lot! If the buying process feels complicated, pushy, or impersonal, customers are more likely to walk away. Modern car buyers expect convenience, transparency, and a seamless experience, from online browsing to final purchase. If a dealership fails to meet these expectations, it loses sales to competitors that do.
What could the automotive dealerships have done differently?
To boost profitable conversions, the franchise needed a smarter, more customer-focused approach. This includes leveraging data to understand buyer behavior, improving lead nurturing with automated follow-ups, offering competitive financing options, and streamlining the purchasing process. Consistency in marketing, better sales training, and a strong digital presence could have also made a big difference.
Can the dealership turn things around?
Absolutely! Struggling with conversions isn’t a permanent failure—it’s a sign that adjustments are needed. By refining their strategies, embracing technology, and prioritizing customer relationships, even the most challenged dealership can increase conversions and profitability.
