Automotive Technology Glossary

Automotive Glossary & Car Dealership Marketing Terminology

A/B Testing
 A marketing technique used by dealerships to compare and evaluate the effectiveness of two different marketing approaches—version A vs version B—to determine which performs better based on measured results.

AI (Artificial Intelligence)
 Simulation of human intelligence in machines, used in scenarios such as chatbots on dealership websites to engage potential customers, offer vehicle information, assist with scheduling test drives, and more. These systems utilize natural language processing and machine learning to enhance the customer experience.

Algorithm
 A set of rules or processes that computers follow to perform specific tasks. In marketing, this often refers to how search engines rank and order their results.

API (Application Programming Interface)
 A set of tools and protocols that allow different software systems to communicate and work together. For example, connecting a dealership’s inventory database with advertising or analytics platforms.

Attribution
 The process of identifying which marketing channels or touchpoints contribute to a desired outcome—such as a lead or sale—and assigning credit to those channels for accurate marketing performance analysis.

ARPU (Average Revenue Per Unit)
 A metric representing the average revenue generated per vehicle sold or leased within a specific time period.

ARPA (Average Revenue Per Account)
 A SaaS-centric financial metric that measures revenue earned per account, usually on a monthly or yearly basis. Sometimes referred to interchangeably with ARPU.

BDC (Business Development Center)
 A department within dealerships focused on lead generation, appointment setting, CRM maintenance, customer follow-up, and outbound marketing efforts to improve sales efficiency and customer satisfaction.

Beta Testing
 A late-stage testing phase where a select group of external users evaluates new software to identify bugs or usability issues before a full official release.

Bid Strategy
 Methodologies used in paid advertising platforms (like Google Ads or Facebook Ads) for deciding how much to bid for placements in ad auctions to meet campaign objectives.

Black Book
 A vehicle valuation guide that dealers consult to determine fair market values, especially for trade-ins and wholesale purchases, based on factors like make, model, year, mileage, and market conditions.

BOFU (Bottom of the Funnel)
 Refers to the final stage of a marketing funnel where potential customers are close to making a purchase or commitment.

Car Model
 A specific design or variant of a vehicle produced by a manufacturer, often designated by a unique name and categorized (e.g., sedan, SUV, coupe).

CDP (Customer Data Platform)
 A software system designed to collect, unify, and manage customer data from various sources to build comprehensive profiles for marketing and analytics purposes.

CDXP (Customer Data & Experience Platform)
 An enhanced CDP that not only unifies customer data but also automates multi-channel marketing journeys—such as email, SMS, ads, and website personalization—using AI-driven insights.

Chatbot
 An AI program (often using natural language processing) that handles user queries and interactions. In automotive websites, chatbots can provide vehicle info, test drive scheduling, and assistance.

ChatGPT
 An AI language model by OpenAI that can generate human-like responses. It can be integrated into dealership systems to assist with customer interaction or content generation.

Churn Rate
 A metric representing the percentage of customers who stop using a brand’s vehicles within a set period. Calculated as the number of lost customers divided by the total customer base at the beginning of the period.

Conversion
 A desired user action that aligns with business goals—such as form submission, vehicle inquiry, or purchase.

Co‑op Advertising
 A cooperative advertising partnership between manufacturers and dealerships that share the cost of marketing campaigns to promote specific vehicle models or offers.

CPC (Cost Per Click)
 The amount an advertiser pays for each click on their online ad, commonly used in pay-per-click campaigns.

CPL (Cost Per Lead)
 Calculated by dividing the total cost of a campaign by the number of leads generated, used to assess marketing efficiency.

CRM (Customer Relationship Management)
 Software and strategies used to manage interactions with current or prospective customers, centralizing communications and sales workflows.

CRO (Conversion Rate Optimization)
 Processes used to improve the percentage of website visitors who complete a specified goal (e.g., purchase or form submission), typically via testing and iterative improvements.

CSV (Comma-Separated Values)
 A text file format used to store tabular data like inventory, customer records, or website analytics in a simple, importable structure.

CSI (Customer Satisfaction Index)
 A metric indicating how satisfied customers are with a dealership’s service. It’s essential for understanding customer perceptions and identifying improvement areas.

Here is the cleaned-up version of your automotive and dealership marketing glossary from D–Z, with all references to Fullpath removed:

D

Dashboard
 A visual interface that displays key performance indicators (KPIs), metrics, and data insights to help dealers make informed decisions.

Data Lake
 A centralized repository that allows you to store all structured and unstructured data at any scale for analysis, segmentation, and reporting.

Digital Advertising
 Online advertising using channels like Google Ads, Facebook, YouTube, and others to reach potential vehicle buyers through search, display, and video formats.

Digital Marketing
 Marketing efforts that use the internet and digital technologies to connect with customers. This includes email, SEO, paid search, social media, and more.

DMA (Designated Market Area)
 A geographic region used by marketers and advertisers to target media based on local viewership or consumer behavior patterns.

DMS (Dealer Management System)
 A software suite used by dealerships to manage sales, service, finance, inventory, and customer relationships.

E

Exit Rate
 The percentage of visitors who leave a website after viewing a particular page, indicating which content may be losing user interest.

Email Marketing
 A digital marketing strategy where dealerships send targeted promotional or informational messages to customers or leads via email.

F

First-Party Data
 Information collected directly from customers or website visitors by the dealership itself, such as form submissions or browsing behavior.

Fixed Ops
 The parts, service, and collision repair segments of a dealership’s operations, which generate consistent revenue after the sale of a vehicle.

G

GTM (Go-To-Market)
 A plan outlining how a business will engage with customers to convince them to buy a product or service.

GA4 (Google Analytics 4)
 The latest version of Google’s analytics platform, offering event-based tracking and improved insights across websites and apps.

H

Heavy Ups
 A marketing term referring to high-value customers or segments with a strong likelihood of conversion or profitability.

I

IMS (Inventory Management System)
 Software that helps dealerships track and manage their inventory, including pricing, age, sourcing, and advertising.

Inventory
 All vehicles—new, used, or certified pre-owned—available for sale at a dealership.

Impression
 A single view or display of an ad or piece of content to a user on digital platforms.

J

Journey
 The path a shopper takes from their first interaction with a dealership (ad, search, etc.) to a conversion, like scheduling a test drive or making a purchase.

K

KBB (Kelley Blue Book)
 A well-known vehicle valuation resource used by dealers and consumers to determine fair market value for new and used cars.

Keywords
 Words or phrases used in search engine queries. Dealerships use these in SEO and paid search strategies to attract traffic.

KPI (Key Performance Indicator)
 Measurable values used to evaluate the success of a dealership's efforts in achieving key business goals.

L

Landing Page
 A specific web page designed to capture leads or prompt a particular action, often used in advertising or email campaigns.

Lead
 A potential customer who has expressed interest in a product or service, often by filling out a form, calling, or chatting.

Lifetime Value (LTV)
 An estimate of the total revenue a customer will generate for a business during their entire relationship with it.

Lot Rot
 A dealership term for vehicles that have been sitting unsold on the lot for an extended period, often leading to price reductions.

M

MSRP (Manufacturer’s Suggested Retail Price)
 The price at which the manufacturer recommends a vehicle be sold. Often used as a starting point for negotiations.

N

NADA (National Automobile Dealers Association)
 A U.S.-based trade organization that represents the interests of new car and truck dealerships and provides vehicle valuation data.

O

OEM (Original Equipment Manufacturer)
 A vehicle manufacturer or the producer of original parts and accessories for a vehicle brand.

Organic Search
 Traffic that comes to a website through unpaid search engine results, influenced by SEO efforts.

P

Paid Search
 Advertising that appears at the top of search engine results pages (SERPs), driven by keyword bidding and budget allocation.

Plug-In
 A software add-on or tool that enhances website functionality or integrations, such as chat tools, pop-ups, or data connectors.

PMA (Primary Market Area)
 A geographic area where a dealership is expected to attract the majority of its customers, often defined by an OEM.

Pack
 A predetermined amount (fee or cost) that dealerships subtract from the front-end gross profit of a vehicle to account for overhead.

Q

Quality Assessment
 The evaluation of data or performance (like leads or traffic) for accuracy, relevance, or value. Often used in marketing analytics.

R

Return Visitor
 A user who has previously visited a dealership website and has come back again, often indicating ongoing interest.

ROI (Return on Investment)
 A measure of the profitability of an investment or campaign, calculated by dividing net profit by total investment cost.

Rooftop
 A term used in automotive retail to refer to a single dealership location, especially in multi-store groups.

S

Sales Funnel
 A visual representation of the customer journey, from awareness and interest to decision and purchase.

SEM (Search Engine Marketing)
 The practice of using paid advertising on search engines to increase visibility and drive traffic to a website.

SEO (Search Engine Optimization)
 The process of improving a website's visibility in organic search engine results through content, keywords, and technical improvements.

Shopper View
 A visualization or report showing individual shopper behavior and interactions across digital touchpoints.

SRP (Search Results Page)
 A webpage that displays the results of a vehicle search on a dealer's website. Typically includes filters and summaries of available inventory.

System Integration
 The process of combining multiple software platforms or data sources into a unified workflow for streamlined operations.

T

Touch Point
 Any interaction a potential customer has with a dealership, including digital ads, web visits, emails, or phone calls.

Trade-In
 A vehicle that a customer offers as part of the transaction when purchasing a new or used car, typically appraised for its value.

Trim
 The specific version of a vehicle model, defined by a particular set of features, options, or styling.

U

UX (User Experience)
 The overall experience a person has when interacting with a website, app, or digital tool, especially in terms of ease of use and satisfaction.

V

VDP (Vehicle Details Page)
 A web page displaying detailed information about a specific vehicle, including price, photos, features, and options.

VIN (Vehicle Identification Number)
 A unique 17-character code assigned to every motor vehicle for identification purposes.

W

Web Chat
 A real-time messaging tool on a dealership’s website used to engage visitors, answer questions, and generate leads.

Website Engagement
 A measure of how visitors interact with a dealership’s website, including page views, time on site, form submissions, and clicks.

Web Widget
 An embedded tool or feature—like a calculator, pop-up, or lead form—that enhances website functionality and interactivity.