Used Car Dealer
A Used Car Dealer in a small Canadian market with a population of under 150,000 people seeking to add incremental sales in the form of non-prime deals. Inventory of 30-40 units.
The Challenge
1. Inefficient Lead Generation:
The dealer initially invested in third-party lead generation services targeting sub-prime finance clients.
The conversion rate from these leads was alarmingly low, leading to a high cost per customer acquisition.
Additionally, many of the third-party leads were non-serious inquiries, with some leads not even owning the rights to the data, only permitted to use it for a short period of time.
2. High Marketing Costs:
Despite the high spend on third-party leads, the quality of the leads did not justify the cost, making it an unsustainable marketing channel for the dealership.
3. Need for More Effective Lead Generation:
With a relatively small marketing budget of under $3,000 per month, the dealership needed a more cost-effective and reliable source of sub-prime finance leads that could generate consistent results without exceeding their budget.
The Solution
After being introduced to Zymbyo, a lead generation tool tailored for small businesses, the dealership decided to try the platform to improve their lead generation strategy.
Zymbyo's solution included:
Custom Lead Generation Website: Designed specifically for the dealership, branded with their logo and identity, providing a tailored experience for potential customers.
Custom Google Ad Campaigns: Targeted campaigns aimed at generating high-quality leads for sub-prime finance customers.
Performance Reports: Regularly updated, detailed performance reports that allowed the dealer to track and optimize their marketing efforts.
The Results
Lower Cost Per Lead:
The cost per finance lead was reduced to below $70, which was a significant improvement over the third-party lead generation efforts.
Higher Conversion Rate: The dealer was able to achieve a much higher conversion rate, turning more leads into actual sales. This was key in helping the dealership sustain a profitable marketing strategy.
Reliable and Predictable Results: Zymbyo's system provided a reliable stream of leads, allowing the dealership to predictably scale its business with sustainable growth.
Satisfaction with Performance: Despite a limited budget, the dealership has continued to renew its contract with Zymbyo for ten consecutive months, citing the platform as a dependable source of incremental prospects and customers.
Incremental Growth: By successfully tapping into the sub-prime finance market, the dealership was able to increase their sales and grow their customer base without significantly increasing their marketing spend.
Conclusion
The dealership’s experience highlights the importance of choosing the right lead generation tools to align with business goals, especially when dealing with a limited marketing budget. By moving away from third-party leads and adopting a more targeted, in-house solution with Zymbyo, the dealership was able to reduce its cost per lead, improve its conversion rates, and create a sustainable marketing strategy that directly impacted its bottom line. With continued satisfaction and ongoing success, the dealership has found a reliable and effective method of reaching its target customers in the sub-prime finance segment.
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