One of the first questions that is asked of us when engaging a dealership is “what is the R.O.I. of (fill in the blank)?” Well our friends, from leads to software, to websites and PPC, the question that is being asked is wrong. If you ask what is the R.O.I. of a product, let me ask you what is the R.O.I. of air?
Well, it’s noting if you don’t use it.
Over the past seven years, we have proven over and over a multiple R.O.I. on all digital aspects compared to before we arrived. And remember, that is usually with no or little vendor changes. Why is this? Because there is no return of investment without education, understanding and utilization.
Dealerships usually buy due to fear or loss, standardization or acceptance of a product, or a unique opportunity (first-in-market). Rarely are those opportunities truly vetted out. While we are not saying to stop before purchasing a product or service that has market penetration because there is a compelling otherwise to do so, we are advocating full assessment prior to signing.
Take lead providers, for example. While most have taken a (B.S.) marketing position and away from you buying leads, most dealers have more “opportunities” in their ILM/CRM than they know how to handle. Buying more leads? Usually you drop your R.O.I.
Also, return on investment is calculated improperly. Is it closer to income and expense or profit and loss? Yes. Until you are properly educated, coached and assessed regularly, there is no R.O.I. because the assumptions are in the wrong place. Show me a dealer closing 10% of their leads, add another provider and, after six months, you will have a dealer with a higher cost structure closing 10% of their leads. Insanity.
Spoiler alert: do the math, work it and get results. For every new website, software, marketing tool and process, you must back it up with hard-core training (no matter how much that word sucks) and sustainment. That is how our average client that buys in fully to our processes and business rules doubles results in less than a year.
Recently we have heard about more catastrophic website or software installs than ever before. What’s the R.O.I. on a vendor search, pitches, proposal and negotiations, set-up fees, months frustratingly lost followed a switch back to the previous or another new provider?
Stop talking about R.O.I. until you spend more on your personnel, education, accountability, scoring, bonuses (not get-it-done spiffs, by the way) and intra-staff support. That’s when you get return.
Until then, you can continue to buy based off of “your competitor is using this and they’ll eat your lunch” or “only 5 more cars sold with our biz-bang-boom and you’re in profit!” or any other snake oil sales job you fall for.
Oh…and one more thing to consider. Results occur top-down with an true ownership, understanding perspective. Not bottom-up make this work garbage. So take that pill and swallow it…
Best Practices: Professional Insight, Powerful Results