01. The Challenge
For AutoEdge Motors, a car dealership offering a variety of vehicles, the challenge was to run Facebook ad campaigns that effectively targeted and converted diverse customer segments—ranging from Buy Here Pay Here (BHPH) customers with limited financial options to prime and super prime customers seeking premium service. AutoEdge wanted to reduce its cost per sale while ensuring that every dollar of its $6,000 monthly marketing budget was spent wisely.
Key Issues:
- Targeting distinct customer groups with tailored messages.
- Generating high-quality leads without overspending.
- Managing an efficient cost per sale while maintaining a strong pipeline of potential buyers.
02. The Solution
To meet these goals, AutoEdge Motors implemented a segmented Facebook advertising strategy, designed to speak directly to each audience group and optimize ad performance based on real-time data.
Key Elements:
- Tailored Ad Campaigns
- BHPH Customers: Ads focused on offering solutions to people with limited credit options, emphasizing flexible financing and high approval rates. These ads also made it clear that a down payment was necessary, setting the right expectations upfront.
- Subprime Customers: Messaging for this group reassured potential buyers that even with lower credit scores, AutoEdge could help them get behind the wheel. Ads highlighted affordable financing options while keeping the focus on specific vehicle benefits.
- Prime and Super Prime Customers: For these customers, ads showcased premium services like low-interest rates and home delivery, aiming to make the car-buying process as smooth and hassle-free as possible.
- Precise Audience Targeting:
- For BHPH and subprime customers, broad targeting helped reach more individuals, while dynamic ad creatives tested various formats to determine what resonated best.
- For prime and super prime customers, lookalike audiences were generated from existing high-value clients, allowing AutoEdge to attract more qualified leads similar to their best customers.
- Lead Capture and Automation:
- Custom Facebook lead forms were used to pre-qualify leads based on their responses, filtering out low-quality leads. This approach ensured that only serious buyers were forwarded to the sales team.
- Automated text messaging followed every form submission, quickly engaging leads and guiding them toward booking appointments, significantly increasing engagement and reducing no-shows.
- Engaging Ad Creatives:
- AutoEdge used visually compelling ads with high-quality images and catalog ads, showcasing their inventory with detailed information like price, mileage, and features. This helped engage both budget-conscious buyers and high-end shoppers.
03. The Result
The Facebook ad campaigns for AutoEdge Motors were a resounding success, demonstrating the power of precise targeting and well-crafted messaging. With a monthly ad budget of $6,000, the dealership achieved remarkable results:
- Average Cost per Sale: $250, a highly competitive figure in the automotive industry, allowing the dealership to maximize its budget and efficiently convert leads into sales.
- Total Sales Generated: Over 24 vehicle sales per month directly attributed to Facebook ads, thanks to a cost-effective approach that brought in quality leads.
- Lead Quality Improvement: The tailored lead forms filtered out unqualified leads, ensuring that sales reps only worked with serious buyers. This resulted in a high conversion rate and less wasted time.
- Enhanced Engagement: Automated follow-ups with leads helped maintain a strong pipeline of interested buyers, reducing lead decay and increasing overall sales appointments.
By leveraging a combination of targeted ad copy, dynamic creatives, and automated processes, AutoEdge Motors successfully navigated the complexities of Facebook advertising and consistently delivered strong returns on its marketing investment.
