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Dan's Blog Archive
Deb's Blog
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Internet Advertising vs Traditional Advertising Direct Mail Advertising - What it Teaches Isolate the Components in Your Ads and Determine What works for Your Dealership How Advertising Laws Are Established What is Your Unique Selling Proposition? Content Remains King - Internet or No Internet
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Isolate
the Components in Your Ads and Determine What Works for Your
Dealership Perform surgery on your advertising by examining which ads pull better than others, and eliminating elements that don’t perform well. Here is a checklist of simple questions and tracking principles that will help you determine what is working for your dealership. In this way you can evaluate what caused one ad to pull better than another.
1. Did you record the page
number the ad appeared on, the basic premise of the ad, the
headline, what action did you ask for?
2. What incentive did you
offer to induce a response?
3. Did the ad include a
prominent reference to your USP (unique selling
proposition)?
4. Did you compare the
results, the profit, the traffic, against other ads?
5. How much did a lead or
prospect cost?
6. How much did it cost per
sale?
7. How many sales did you
generate?
8. How many prospects
converted to later into sales?
9.How many first time buyers
bought again?
10.Did you up sell, or cross
sell them?
11.Did you test different
prices?
Dissect & Justify your
Advertising
Do everything you can to
justify the dollars you are spending on advertising.
Example - Let's say that the average new customer brings you
an average profit of $1,000 on the first sale. This same
customer repurchases 1 time every six years, and you make
$2,000 gross profit on each sale after the first, and the
average patronage life is twelve years. Every new customer
is potentially worth $5,000. I arrived at the $5,000 by
adding the $1,000 initial profit, to the 2 additional
purchases for the next twelve years. This does not include
all the incremental parts, accessories, etc. the customer
will purchase from you over the lifetime of the customer:
If your customer is
potentially worth $5,000+, and it cost you $100 to land
them, then every $100 is worth $5,000+. You might consider
increasing your ad budget to produce more $100 cost
customers.
If you have a modest budget,
you could still easily justify spending 100% of the profits
on the first sale - since every $1,000 (first sale's average
profit) you spend to acquire a customer means $4,000+
throughout the lifetime of that same customer: Most of your
competitors do not realize what a customer is worth.
During a recession, dealers
cut their marketing budget thinking they are losing money on
a sale, if they judge by their initial sale profits only.
You can take advantage of the fact that they don’t
understand the value of a customer, and adjust your budget
accordingly to gain market share. If you continue to
advertise as they pull back, you will end up gaining their
customers. This is a share of market they will never get
back, if you do a good job of keeping them.
Daniel Ball
DP Ball Advertising
440-285-8164 or 888-273-7763
email dan @ dpballadvertising.com
(Stats from RVDA, Average
purchase per RV owner)
Copyright ©2011 DP Ball Advertising
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Send the Right Message with Your Online Advertising and Know Who You Are Targeting Credibility on the Web: How to Build Trust What You Say Determines Who You Get Can You Really Judge Website Pages by Their Titles? Seach Engines do
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::: direct response :::
message from
dan ::: representation :::
integrity in marketing :::
pay-off now advertising ::: |
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Dan Ball has 25 years of experience in RV Dealership Advertising.
His company, D.P. Ball Advertising, specializes in developing very
strong, aggressive advertising concepts and benefit rich messages
that generate an immediate consumer response.