CPA vs Branding When Advertising on FB
Transcript
Kelly : From a dealership standpoint, because we have a lot of dealers who actually watch this podcast, we have over 20,000 followers now, let’s talk about something like cost per acquisition. I’ve run some really big Facebook campaigns, one of them I had a $79,000 month budget, which is pretty good. And we’re obviously really concerned with cost per acquisition, on average, what can what can a dealer expect?n
nBob : I honestly couldn’t tell you if you have to understand, like, people use us differently, or at least execute, which is the most important aspect you’re referring to right? So you know, you’ll have a deal or I mean, especially today the dealers don’t really realize the importance of their brand. We’re going to be launching a dealer loyalty study, which also has a brand loyalty study. And listen, dealer loyalty is still at an all time low. Right? So for every car they sell, they might not get that, get that person back. n
nSo they’ve learned and price is not is not an issue right now. Like there are no cars, especially as we talk about new and use, they’re at, you know, the highest premium they’ve ever been. Right? So we’re not selling price. If you’re selling price, you’re actually just negotiating with yourself trying to not make as much money. So then what becomes the differentiator? Right? Well, it’s the buying process. It’s the experience and all the data shows like this is what’s going to be coming out here in the next year or two. I mean, I’ve been talking about it for two years, but it’s finally going to start to come out that consumers in the auto business now care more about the experience than the price and in fact, price ranked seventh in our study on on what the customer service was number one, and you know, inside and outside of auto retail. n
nIf you do research on that, you’ll see that yeah, people are willing to pay a premium for customer service for the experience. But in our world, and listen, I sold cars in the 90s when I was in store, we were so trained on that 30 Day acquisition, gotta get gotta hit my number, 30 days, 30 days 30 to 30. Now, the OEMs played a role in that and obviously the Floor Plan played a role in that like there’s a lot of variables that played a role in it. But as we start to focus on why buy, dealers are starting to see that they don’t have to negotiate with themselves on price, and they’re gonna be able to hold their gross longer because it’s all about customer service and experience.n
nBob : I honestly couldn’t tell you if you have to understand, like, people use us differently, or at least execute, which is the most important aspect you’re referring to right? So you know, you’ll have a deal or I mean, especially today the dealers don’t really realize the importance of their brand. We’re going to be launching a dealer loyalty study, which also has a brand loyalty study. And listen, dealer loyalty is still at an all time low. Right? So for every car they sell, they might not get that, get that person back. n
nSo they’ve learned and price is not is not an issue right now. Like there are no cars, especially as we talk about new and use, they’re at, you know, the highest premium they’ve ever been. Right? So we’re not selling price. If you’re selling price, you’re actually just negotiating with yourself trying to not make as much money. So then what becomes the differentiator? Right? Well, it’s the buying process. It’s the experience and all the data shows like this is what’s going to be coming out here in the next year or two. I mean, I’ve been talking about it for two years, but it’s finally going to start to come out that consumers in the auto business now care more about the experience than the price and in fact, price ranked seventh in our study on on what the customer service was number one, and you know, inside and outside of auto retail. n
nIf you do research on that, you’ll see that yeah, people are willing to pay a premium for customer service for the experience. But in our world, and listen, I sold cars in the 90s when I was in store, we were so trained on that 30 Day acquisition, gotta get gotta hit my number, 30 days, 30 days 30 to 30. Now, the OEMs played a role in that and obviously the Floor Plan played a role in that like there’s a lot of variables that played a role in it. But as we start to focus on why buy, dealers are starting to see that they don’t have to negotiate with themselves on price, and they’re gonna be able to hold their gross longer because it’s all about customer service and experience.n