How Dealerships Can Leverage Marketing Technology to Combat Margin Compression

As the automotive industry returns to pre-pandemic sales levels, dealerships are facing new challenges, particularly margin compression. In a highly competitive market, dealerships must find innovative ways to optimize their sales performance while reducing costs.

While dealerships have enjoyed higher markups and quicker sales turnover in recent years, this trend may soon come to an end. As a result, dealerships will need to tighten up on their expenses. However, one major expense that has been overlooked is how much marketing waste their inventory marketing campaigns produce. In fact, data from over 400 dealerships has shown that approximately 80% of dealership marketing spend is wasteful, resulting in a significant drain on profitability.

Fortunately, with the advent of marketing technology such as VIN IQ, dealerships can now calculate how much of their marketing spend went into promoting a particular vehicle. This information can help dealerships make real-time adjustments to limit the spend and exposure of VINs that are starting to contribute to spend waste.

Using VIN IQ, dealerships can improve their marketing performance by reallocating their marketing budget more effectively and reducing marketing spend waste. By determining which vehicles should be promoted and which have already achieved adequate exposure, VIN IQ can also accelerate sales.

In today's competitive automotive market, dealerships must find new ways to boost their sales performance and reduce costs. To learn more about how your dealership can leverage VIN IQ to optimize marketing technology and combat margin compression, contact info@viniq.io.