This article is for you if you are new to the automotive industry and getting your feet wet with the terminology!
Below are the top five automotive acronyms commonly used in the Automotive industry:
- DMS or Dealer Management System: A database system is the backbone of a dealership. The DMS system integrates with the dealer’s CRM, Parts and Service Department, Accounting, Sales, Inventory, etc. The DMS is one of the most challenging systems to change or set up in a Dealership.
- IMS or Inventory Management System: A dealership’s IMS and DMS work hand-in-hand. The IMS allows communication on inventory Allocation, production, and shipment from the OEM.
- OEM or Original Equipment Manufacturer: This one may be an essential term out of the entire list of automotive terminology – this is the brand! Toyota, Honda, GMC, Ford, Acura – the list goes on. If you don’t remember any other acronym, remember this one. https://www.investopedia.com/ask/answers/041515/what-original-equipment-manufacturer-oem-automotive-sector.asp
- VDP or Vehicle Description Page: VDP refers to the specific page on your site that provides specific details about that vehicle. Because each car comes with a Vin and Stock number, each vehicle needs its descriptive page.
- VRP/SRP or Vehicle Search Results Page: Much like a search result in Google, a dealership website also has Vehicle results pages listing multiple vehicles depending on your inquiry. Updating these pages to ensure the most relative information is displayed to entice customers to click and learn more about a specific vehicle.
Now let’s discuss some of the crucial marketing acronyms that will aid in your automotive success online:
- CPC AKA Cost-Per-Click: Describes the variable cost it takes to generate a click. For example, Google Adwords is the bid cost for a given keyword or campaign. These metrics are valuable to measure and understand any paid advertising to calculate ROI.
- CTA or Call to Action: The ultimate action you wish your customer to take. These actions can be any number of activities such as a phone call, lead form submissions, or signing up for a newsletter. CTA’s help to create Conversions.
- Conversions: A conversion occurs when a visitor to your website completes a desired goal, such as filling out a form or making a purchase. The percentage of total visitors that convert is called your conversion rate. You will see this metric pop up throughout digital marketing, no matter what industry.
- CTR or Click-Through Rate: is the rate of traffic clicking on a link from a digital ad to your website. You can calculate this rate by taking the number of clicks divided by impressions helps you know if your ads or content are compelling enough to make your customer want to learn more.
- KPI or Key Performance Indicators: KPIs are measured through your website’s Google Analytics. They let you know what is working by showing you what drives traffic to your website. Once these indicators have been identified, you can focus your attention (and budget) on those specific keywords, collateral, artwork, or ads that are working well.
- SEO or Search Engine Optimization: SEO consists of multiple ongoing efforts to get your site a better listing on Google’s search results pages through adding content and backlinks to your website.
- ROI – Return on Investment: this is a KPI measure used to evaluate the efficiency or profitability of your marketing efforts or compare the efficiency of several different marketing avenues. ROI tries to directly measure the return on a particular investment relative to the investment’s cost.
- PPC – Pay-Per-Click: sometimes referred to as SEM, Search Engine Marketing, or Paid advertising, Is the bid network on a search engine like Google. These ads are at the top of most search results pages and use an auction-like bidding strategy to determine who gets get listed and in what order for that specific keyword or keyword Term. Paid advertising can also include Youtube and Display network.
Whether you are an automotive veteran or the new kid on the block, being aggressive with your dealership’s digital marketing is essential to achieving sales success month over month. Please know that being aggressive doesn’t always mean spending more, but being fully educated on what is and isn’t working for your dealership in the digital space and aligning your budget to those KPIs leading to higher returns.
If your dealership has been looking for a digital partner, consider Dealer Authority. Our team holds an average of 11 years in the automotive industry and takes great pride in building custom digital strategies for our clients to provide them with a competitive edge in their market. Let us help you and your marketing team from digital newbies to marketing masterminds.