How Will Dealerships Increase Profits in 2022?
We are all familiar with the state of the auto industry at the moment: from chip shortages to the ongoing COVID-19 pandemic and increased demand from consumers, it’s been a weird time. However, this is the perfect time to decide how you’re going to increase profits in 2022 for your auto dealership. The number one way to increase profits for your dealership is to partner with TECOBI. TECOBI is the Automotive SaaS Software solution that helps you not only connect with leads, but follow up with them until they are ready to buy a car. (And sometimes that follow-up process takes a lot longer than you may think.) If you’re ready to make too much money in 2022, let’s talk about some real ways to increase your car dealer profits.
How to Increase Car Dealer Profits in 2022
The key to increasing car dealer profits this year is to improve your recruitment and retention strategies. How are you getting your clients? Are you using old-school tactics like billboards along the highway and cold-calling? It’s time to update those tactics to modern automotive marketing solutions that really work.
And how long is your typical follow-up window right now? Keep reading to find out how long, on average, it took most leads to buy a car. (Hint: we have found that most dealerships simply don’t have the bandwidth to keep contacting leads for as long as it takes for most to buy a vehicle. Don’t worry. We’re going to fix that for you.
Car Dealer Profit Margin
The car dealer profit margin is expected to increase even more in 2022 due to high demand. Customers already know that paying over sticker is the new normal (at least for now.) Many dealerships already broke records with their profits last year. According to data from the 2021 Kerrigan Dealer Survey, 94% of car dealers expect their profits to continue in 2022, and 79% expect them to rise even more.
So, if you’re looking to increase profits this year, it’s not about finding ways to make more money per car. It’s about obtaining more of those customers who are looking to purchase a car and making sure you are the one to sell it to them. Here’s the bottom line: if you want to get more profits this year, you need to find more customers and retain more customers. TECOBI is the best software to help you do both of those things.
Recruitment and Retention Strategies for Car Dealerships
If you want to get your piece of the profit pie in 2022, you will need to up your recruitment and retention strategies. Luckily, the team at TECOBI knows exactly how to help your dealership sell more cars this year.
How to Recruit New Car Leads
When it comes to recruiting new car leads, you need to play offense: not defense. TECOBI casts a wide net to recruit new leads for your dealership on social media with our innovative and effective Facebook and Instagram ads. (Yes, our Facebook ads really work.) With more than $30 million ad spend on social media ads for our client dealerships so far, we’re not just guessing. We have an arsenal of data that helps us understand conversion patterns and how to generate ads that convert.
Here’s a secret: they work because they allow us to capture leads’ contact information if they auto-fill a simple and easy form. This tells us that the lead is at least somewhat interested in buying a new car at some point in the future. At TECOBI, we are able to use texting as the primary form of communication with leads. Now, we have their contact information and are able to contact them and place them at the appropriate part of our sales funnel.
How to Retain New Car Leads
TECOBI follows up with the leads we recruit for your dealership. We are able to follow up en masse with thousands of leads at a time. Yet, customers think they are getting a personal text message from someone on the sales team at your dealership. Our texts are not spammy and do not contain a link. No one thinks our texts are from a robot.
Our revolutionary lead follow-up software helps auto dealerships stay in touch with leads until they are actually ready to buy a car. Our software organizes, prioritizes, and automates the follow-up process so that you can focus on buyers who are ready to purchase and nurture the leads who need more time.
Speaking of needing more time: Our data shows that leads average 42 days between initial contact and vehicle purchase. That’s right: out of 150,000 vehicles sold, 73% were sold after 42 days. We have found that many dealerships abandon leads after about a month, simply due to lack of manpower.
We use text message, teamwork, and artificial intelligence together to extend the follow-up window. With our long-term follow-up strategy, you will never lose a sale. AND we reduce the human overhead that is usually needed to properly follow up with hundreds or thousands of leads for the amount of time necessary.
TECOBI also gives you clients a better car-buying experience. If you want to compete with these new car sellers like Carvana and Vroom, this is very important. We give customers the opportunity to connect with your dealership via text message without disrupting their daily patterns and routines.
Once dealerships start using our follow-up strategies, they never want to go back to the old ways again. No more sales teams sitting in front of a useless CRM and completing mundane tasks or constantly picking up a landline phone to cold-call leads.
Increase Profits for Your Dealership in 2022 With TECOBI
Don’t get left in the dust by your competition this year. If you want to make more profits for your dealership in 2022 (who doesn’t?) you need TECOBI. We will help you engage with more customers, set more appointments, and ultimately, sell more cars. Schedule your TECOBI demo and check out our enterprise pricing plans today.