You’re doing it wrong – there is only one way to measure marketing success

It’s not traffic
It’s not leads
It’s not even sales, at least not the way you think of them.

Market Share/Market Performance: two ways of saying the same thing.

When demand for vehicles and demand for your brand in your market area are down substantially, you cannot expect to sell more cars!  But what share of those sold in your area that you manage to capture is the ONLY measurement that means anything – especially when you’re measuring the effectiveness of your marketing efforts.

I’m gonna go over this for the hundredth time:  In May, 10,000 vehicles are sold in a 20 mile radius of your store.  That 10,000 represents 100% of the market.  You sell 200 cars that month.  Your market share is 2%.  Okay?

The next month in June, 15,000 cars are sold in that same area.  You sell 240.  Do you think your marketing was effective?  No it was not!  You lost your share.  (do the math, 240 divided by 15,000 = 1.3%). Somebody else is selling to your share.

The next month in July, only 7,000 vehicles are sold in the 20 mile radius of your store.  You sell 190. Do you realize that you did something right or do you fire your marketing partners?

By the way, 190 out of 7,000 is a 2.7% market share – that’s quite an improvement.  If you do think so, 2% of 7,000 is 140 vehicles sold.  50 additional vehicles IS your gain, your incremental growth.

We are in the business of selling market performance.  We’ve performed for our clients to the tune of 15, 20 or more vehicles per month based on market performance (see above) while with us as opposed when they weren’t with us.  At $2,400 per copy front and back-end, that’s $48,000 in profit extra per month (at 20) with us as opposed to without us.

Too often they will shrug this off because they want something else (more traffic, more leads, more something) and we continue to measure their market performance after they leave us and…they’re still down 20 or so cars per month based on market share/performance.

Everything else is irrelevant. If you’re measuring the success or effectiveness of your marketing on anything other than your market performance, stop it.

Advertisements

About dealerite

National affiliations of professionals who are engaged in changing the culture of the automobile retail business. Key focuses currently include Compliance, Behavioral Marketing and Phone Skills.
This entry was posted in Auto Dealer Solutions, Dealerite Blog and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s