Mercedes de la Torre May 18, 2023

Subprime Auto Loans: How Digital Marketing Can Help Car Dealerships Reach More Customers

According to the Federal Reserve Board, subprime borrowers are more likely to use online sources for loan research and less likely to use traditional bank branches than prime borrowers. This is where a well-designed digital marketing strategy can come into play.

In our experience working with car dealerships, we encountered a common challenge: the high cost of acquiring subprime auto leads. Many dealerships were investing substantial amounts without seeing the desired returns. However, through our expertise in digital marketing, we were able to rise to this challenge and achieve impressive results.

Despite the prevailing industry trend of Cost Per Click (CPC) exceeding $15, we managed to provide our clients with high-quality leads at a fraction of the cost they previously paid. How did we achieve this? Allow me to guide you through six simple steps that transformed our clients’ digital marketing campaigns.

1. Understanding the target audience.

This is a critical step because we must direct our efforts (both technical and economical) toward users who are most likely to convert. This approach not only maximizes our chances of generating high-quality leads but also makes it easier for them to interact with our ads.

2. Conducting competitor analysis.

Understanding our competitors’ strengths, weaknesses, and tactics is crucial. This knowledge allows us to differentiate ourselves and develop a strategy that differentiates us. By leveraging this information, we can create a unique value proposition that resonates with our target audience and drives conversions.

3. Performing keyword research.

Understanding what your target audience is searching for is the first step in conducting keyword research. Tools like Semrush, Keyword Planner, and Google Trends are valuable resources in this process. Using these tools, we can gain insights into the search volume and identify high-value keywords to target in our Google advertising campaigns. Additionally, this research can support our SEO efforts, ensuring that our content aligns with the search intent of our target audience.

4. Building attractive assets.

All of the previously mentioned efforts will be in vain if we fail to generate engaging content that resonates with our potential customers. To achieve this, it’s important to be flexible in our approach and to take risks. The key to success lies in experimenting with different types of content and analyzing which ones resonate the most with our target audience. By conducting these tests, we can refine our content strategy and create assets that truly capture the attention and interest of our customers.

5. Using a combination of platforms.

One of the aspects I find most exciting is the willingness to explore and experiment with new platforms, which can be a key driver of success. Remarketing is one such possibility. Just to give an example, by targeting users who have visited our landing page from a Google source but not converted, we can show them ads on Facebook, providing a valuable opportunity to re-engage with these potential customers.

6. Using measurement tools.

As a digital marketer, I believe that data analysis and measurement are essential components of any successful digital marketing strategy. What I find as the most rewarding part of my job is seeing measurable and excellent results. Without the proper measurement tools, it would be impossible to accurately evaluate the success of a campaign. Therefore, we can make informed decisions on the next steps based on the insights derived from the measurement tools.

In conclusion, using digital marketing strategies can be a game-changer for car dealerships targeting subprime borrowers. By strategically leveraging data-driven insights and implementing the six steps outlined above, we notably increased our clients’ conversion rate (CR). Moreover, our efforts resulted in a substantial 24% decrease in cost per click (CPC), significantly reducing cost per lead (CPL). This remarkable outcome highlights the effectiveness of our approach in driving better campaign performance and cost efficiency for our clients.

At Performante, we understand the unique challenges that car dealerships face when trying to reach subprime borrowers. That’s why we specialize in developing tailored digital marketing strategies that maximize conversions and minimize costs. If you’re interested in learning more about how we can help your dealership reach more subprime customers, contact us today to schedule a consultation.

If you want to learn more about how digital marketing can transform your dealership's lead-generation efforts, check out our article on why it's time to stop buying car dealer leads and invest in digital marketing.

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