Pub. 1 2019-2020 Issue 4

http://wvcar.com 22 WVADA Using Data to Sell Cars T he current U.S. economy is spectacularly unpredictable and is likely to continue that way for a while. But you can still sell successfully. You are just going to have to be more strategic about it. Now is the time to combine your marketing skills with marketing data. Where do you start? Start by continuing to use marketing campaigns. People like to buy products they are familiar with from companies they trust. You don’t want to wait to build a relationship with a potential buy - er if you can start that relationship soon - er, because if you wait, you may never make the sale at all. Since so many people are now working from home and may never go back to commuting again, spend your market - ing dollars on media that has the best chance of reaching people, such as so - cial media and magazines or other direct mail. Until televised sports are being broadcast regularly again, you might want to pull back on television ads. When considering television ads, you should be aware of the following: • The best marketing always works to pro - vide customers with the information they actively want. Just because it is pos - sible to run an ad doesn’t mean you should. People avoid unwanted ads or (worse) are irritated by them. That is not a good marketing strategy. • The COVID-19 shutdown caused me - dia consumption to increase by al - most 60%, but the big beneficiary was streaming video, not traditional programming. Streaming video in - creased (on average) 61%. For adults 18+, the time spent viewing live and time-shifted TV has fallen by 7% in the third quarter of 2019, while time spent watching shows on TV-connected de - vices went up 17% during the same period. Please note, the measurement was taken before the shutdown. • Approximately 91% of all people in the U.S. subscribe to a streaming service. For viewers aged 18-34, the percentage is 96%. Some 30% of all viewers have three or more video streaming services. • The conventional advertising model has calls to action that require viewers to go to a store to spend their money. That approach is now as outdated as a stadium full of cheering fans. Many people have concerns about social distancing, and they are often uncom - fortable in their masks even when they make a point of wearing them. Make it as easy as possible for people to buy online instead of in-person, and ask people to visit your website instead of your store. Marketing costs money, but do what you can to spend marketing money wisely. Then you don’t have to spend as much. The average marketing cost per sale, according to NADA, is $624. Using the right technology can bring that av- erage down. For example, the standard for dealers who use automotiveMaster - mind’s MarketEyeQ is $115. Why does technology make a difference? It enables you to use your resources more effectively by focusing on what you have in stock and using prediction modeling to increase retention sales. It also helps you see major buying trends. Half of the buyers are currently moving to new deal- erships and new brands when they buy. Even if you lose some of your existing customers, you can still increase your customer base if you can convince new customers to buy from you. The data provided by technology can help you sell cars in three ways: • Combine data from major market players such as Carfax, IHS Markit and