5 Key Metrics for Auto Industry Participants
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To stay competitive, dealers need to understand what data to measure and how to measure it. However, it can be challenging to go through the vast amounts of available information to choose the most important measures to assess performance. By assisting their employees in focusing on those data points necessary for operations, dealers must research and compile a list of key metrics in the auto industry to meet this difficulty.
This article lists five metrics that all dealers should consider when creating and monitoring a new campaign.
5 Key Metrics in the Auto Industry
1. Organic Search Traffic
This auto industry metric measures the percentage of website traffic earned through organic search.
Dealers can attribute traffic moving to the dealer’s site by organic search strategies to the search engine optimization (SEO) strategy. The content will perform well if it is relevant and engaging, and organic traffic is heavy.
These metrics help dealers understand where organic traffic originates and allow them to make changes that produce SEO-rich content, like:
- Percentage of traffic for branded keywords
- Number of lead conversions via organic search
- Percentage of traffic for unbranded keywords
- Number of customer conversions assisted by organic search
2. Digital Marketing ROI
The digital marketing ROI (return on investment) equals the difference between sales growth and marketing investment divided by the marketing investment.
Calculating the return on digital marketing costs is essential to evaluate your monthly and annual success and plan budgets and strategies for future planning periods.
Dealers want to avoid raising spending for a useless marketing strategy that negatively impacts the business. Your return on investment will determine the next course of action, regardless of your company’s marketing strategy.
3. Landing Page Conversion Rate
The landing page conversion rate equals the number of conversions divided by the total page visitors.
No matter how much traffic a landing page receives or how attractive the design is, a landing page that does not produce leads is unnecessary. As such, dealers must closely monitor conversion rates. A high-traffic landing page with a low conversion rate indicates a need to revamp the page.
Dealers can A/B various adjustments to figure out which ones generate the highest conversion rate. Those adjustments might include the following:
- Include compelling written content
- Add value to the CTA’s wording
- Highlight positive reviews and awards
- Cut down submission forms
4. Average Cost-Per-Click
Average cost-per-click (CPC) equals total clicks cost divided by the total number of clicks. This value is based on actual cost-per-click, or the amount dealers pay for a click on any paid ad.
CPC is a crucial digital marketing metric because it provides a straightforward price structure that will enable you to create the most productive and cost-effective campaigns possible.
With the aid of this metric, dealers can also determine how much they typically spend on pay-per-click (PPC) and retargeting.
The goal is gradually to increase the CPC, leading to more successful and cost-effective campaigns.
5. Social Media Traffic and Conversion Rates
Utilizing social media channels can help dealers inform their audience and build recognition and trust. Dealers can use the following key auto industry metrics to show the significance and influence of social media on marketing efforts:
- Traffic volume attributed to social media sources as a percentage
- The number of sales earned through each social media platform
- The number of lead conversions converted through each social media platform
Social media options include, but are not limited to:
Dealers may only leverage some possible outlets (time permitting), but they can prioritize successful channels by analyzing how many leads, clients, and visitors each platform generates.
Interaction levels on social media reflect how well the content and brand resonate with audiences on those platforms and how much trust dealers build with them.
Analyzing Auto Industry Metrics Requires the Right Technology
You can more effectively assess your dealership’s performance and pinpoint areas for development if you monitor each of these key metrics in the auto industry. With so many tools for data collection and monitoring at your disposal, analyzing metrics is one of the most effective ways you can use to increase sales.
However, the proper technology is needed to track these indicators properly. To find the chance to generate more revenue for your dealership, you need a digital solution that offers a complete picture of your business activities.
Contact us today and discover how Affinitiv’s DealerLens can help you find and analyze the auto industry metrics that data optimize your digital marketing campaign.
All | May 02, 2023