CDK encourages ‘smart marketing’
CDK Global is urging automotive retailers to employ integrated ‘smart marketing’ tools to ensure more effective use of digital marketing spend.
A recent survey by CDK found that on average dealers invest 64% of its marketing budget on digital tools, up from 45% just three years ago – with some retailers spending 85%.
Further research found that 90% of UK Dealer Principals believe there will be a decline of up to 25% in the number of automotive retail sites by 2022, making effective digital marketing increasingly important to long-term profitability. Retailers reported their biggest pain points in digital marketing as online advertising, using social media tools, website flexibility and integrating digital tools with legacy systems.
Stuart Miles, MD for UK and Ireland at CDK said, ‘Our research shows that retailers spend anywhere between 0.2 per cent and 1.3 per cent of its turnover on digital marketing, so it’s important to get it right. We are working with retailers to understand the factors that impact the success of their digital marketing. By working together across our industry we will develop solutions that allow retailers to focus on digital marketing in this fast-paced sector and deliver a more connected car ownership experience for consumers.’
To encourage collaboration across the automotive industry, CDK is partnering with dealers, manufacturers and third-party providers to develop solutions based on open technology. This approach aims to ease the pain points around digital marketing, to help retailers develop better connections between online and in-store experiences for customers.