One of the benefits of Big Data research in the automotive retail industry, is the direct correlation that Vehicle Detail Page (VDP) views on vehicles have on the velocity by which they sell.
A recent automotive study conducted by Cobalt, clearly shows that vehicles that have more VDP views sell faster. The chart, shown above, tells dealers that cars with more than 30 VDP views, sold on average in 76 days compared to 135 days when they had less than 20 views.
If dealers want to sell more cars, they need to get their inventory VDP’s in front of as many Internet car shoppers as possible.
A strategy that increases VDP views will increase the velocity of cars sold at the dealership. Thus, dealers should be focused on one question:
How do I get more consumers to select and view my Vehicle Detail Pages?
Adjusting Our Focus to VDP Views
Dealers who want to increase VDP views, have to be careful about the costs to drive consumer traffic to their VDP’s. Dealers drive traffic to their website by using traditional media (radio, TV, newspaper), as well as digital marketing strategies (Adwords, Craigslist, Autotrader.com, Cars.com, Social Media).
Dealers normally evaluate their marketing investments in terms of Cost Per Lead (CPL) or Cost Per Sale (CPS) metrics. However, the majority of consumers do not submit a lead or call the dealership before they walk in the showroom. Dealers who focus on VDP trends on their website and VDP trends on third party websites are tracking the shopping behavior of all shoppers; not just the ones that submit a lead.
ROI-BOT reports make it easy to see VDP View trends on a dealership’s website, as shown below:
For this dealer using ROI-BOT software, their marketing investments are increasing VDP views on their own website. In two seconds this dealer could see that they were heading in the right direction!
Since it is easy to see which strategies are increasing VDP views, they can look further into each traffic source to see the costs associated with that traffic. ROI-BOT makes it easy to visually see the costs per VDP view by strategy.
In the graphic below, dealers can easily see which referral sources are generating the highest number of VDP views:
Calculating the Cost Per VDP View
Once you see trends, dealers need to focus on the cost to drive a VDP view!
Google Adwords is one digital advertising strategy used by most dealers. Few dealers receive monthly reports on how well their Adwords campaigns are working to drive consumers to view their inventory. ROI-BOT makes it easy for dealers to see the Cost per VDP View (CVV), so that campaigns can be inspected with a new lens.
Adwords campaigns that are evaluated on a Cost Per Lead (CPL) can be further OPTIMIZED when dealers seek to find ways to lower the Cost per VDP View with their Adwords vendor.
For this dealer, you can see a wide range of VDP view costs starting at $1.67 per VDP view and going as high as $9.72 per VDP view. By looking at Adwords campaigns through this lens, dealers can ask their Adwords vendor to test landing page changes, keyword choices, or ad copy to increase the percentage of clicks that look at Vehicle Detail Pages.
The Rewards When Dealers Focus on VDP Views
Why is a focus on VDP views this important? If dealers can lower the cost per VDP, they can accelerate car sales at a lower cost! The VDP metrics inside of ROI-BOT is just another way our data dashboard makes it easy for car dealers to leverage their vendor data to sell more cars at a lower cost. Dealers can see VDP View costs on their website as well as third party classified advertising websites and referral traffic.
When you are ready to master your data, get your store signed up for ROI-BOT software. There is no easier way to look at all your vendor data to make actionable decisions to reduce cost of sales. If you have questions, please call Carrie Hemphill at 908-601-6475.