Budgeting for 2024? Discover Which Partners Truly Drive Value for Your Dealership
As the automotive industry evolves and we look towards 2024, it’s more important than ever for dealers to adopt innovative strategies to keep their inventory moving efficiently. In this blog, we’ll explore how data-driven marketing can transform your inventory management and set you up for success in the upcoming year.
The Aging Inventory Dilemma
Aging inventory presents a significant financial challenge for dealers. When vehicles sit unsold for extended periods, they don't just occupy valuable lot space – they also eat into profits. Slower sales results in escalating floor plan costs, tying up capital that could otherwise be invested in more profitable activities. Each day a vehicle remains unsold, potential revenue is lost, and the opportunity cost grows. Moreover, dealers often feel compelled to reduce prices on aging inventory in an attempt to encourage sales, further diminishing profit margins. The problem with this approach is that the data shows that price drops do not significantly increase exposure and engagement until vehicle prices are at a point of being so low they truly stand out. Unfortunately this point also usually means all profit is lost too.
For dealers, effectively managing aging inventory is not just a matter of efficiency; it's a critical component of financial health and operational success.
With 2024 on the horizon, dealers must anticipate and adapt to changing consumer behaviors and industry trends. Staying ahead means more than just keeping up with technological advancements; it's about understanding customer preferences and adjusting inventory to align with market demand.
Embracing Innovative Marketing Solutions
Innovative, targeted marketing strategies are essential in addressing aging inventory. By analyzing marketing and engagement data, dealers can focus portions of their marketing efforts on moving inventory that has been gathering dust for too long. While many dealers try to push aging inventory in various ways, the real focus should be on pre-empting the aging problem in the first place.
Efficiently applying marketing dollars directly to the underexposed vehicles before they become an aging burden has shown to drive the engagement necessary to sell these cars sooner, before they need significant price reductions. Mainstream platforms, however, will focus on your most popular vehicles because this drives the highest volume of cheaper clicks, burning through your budget while propping up your campaigns with high level vanity metrics that make you think your marketing is working for you, but in reality, it is working against you.
These typical campaigns leave less popular inventory underexposed and underengaged; prime candidates age without the chance of a sale. The issue is compounded by the fact dealers cannot readily see this in the reporting they have access to today, leaving them unable to address the situation, even if they had the means to do so.
Introducing VIN IQ as a Strategic Partner
VIN IQ emerges as a powerful ally in this landscape. The platform provides in-depth insights into each vehicle's marketing performance, helping dealers make informed decisions about where to focus their marketing efforts and the platform automatically manages the marketing of these vehicles on your behalf, allowing dealers to focus their energy on managing their business..
Leveraging Detailed Analytics with VIN IQ
VIN IQ's detailed vehicle-by-vehicle reporting allows dealers to understand exactly how their marketing efforts are impacting inventory turnover. By connecting Vehicle Details Page (VDP) views and engagement with sales, and showing which of your current campaigns are delivering those views and engagement to each vehicle, VIN IQ helps dealers easily identify which vehicles need more marketing attention.
Smart Integration for Enhanced Exposure
VIN IQ integrates seamlessly with major ad platforms such as Google and Facebook, enabling dealers to target their marketing campaigns more effectively with no media markup. Campaigns are constantly adjusted with inventory based on engagement need so the units that require engagement and exposure to sell actually get it, while your already popular inventory cannot overconsume your marketing dollars and create irrecoverable inefficiencies. This approach ensures that marketing efforts are focused on vehicles that require additional exposure to sell while passing major savings to dealers by avoiding media management fees.
The Advantage of VIN IQ’s Free Marketing Analysis
To help dealers prepare for 2024, VIN IQ offers a complimentary Marketing Analysis. This analysis provides a comprehensive look at your dealership’s marketing performance and identifies opportunities for improvement.
Don’t wait to tackle the challenge of aging inventory. Sign up for VIN IQ’s free Marketing Analysis today and take the first step toward a more profitable and efficient 2024.
