Measure and Evaluate Will Always Drive More Dealership Traffic

Since advertising is not a science, there is no formula or equation to insure its success.  But, you can measure certain elements that will help you determine your advertising’s effectiveness.

Here are the five items you should track.

1. CUSTOMERS

Track how many customers are shopping your dealership, who they are and why they came in today.  In addition, track how customers are shopping. i.e. drive-by, internet, radio, TV or billboard.

2. MARKETING COST

Determine your Cost per Unit (CPU) by dividing your total advertising expenditure for the month by the number of units sold.

Total Ad Dollars Spent for Month = CPU Number of Units Sold

3. REVENUE

Determine your Average Gross by dividing your front end and back end grosses by the number of units sold.

(Front End Gross + Back End Gross)  = Average Gross Number of Units Sold

4. TRANSITION

Determine your Demo Index by dividing your total number of customers by the number of demos.

Total Number of Customers  = Demo Index

Number of Demos

(1 is perfect. The higher the number, the worse the performance.)

5. SALES

Determine your Sales Index by dividing total number of write-ups by the number of deliveries.

Total Number of Write-ups = Demo Index

Deliveries

(1 is perfect. The higher the number, the worse the performance.)

With these five measurements you can effectively evaluate the performance of your sales drivers and make any necessary adjustments.

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