Posts Tagged ‘Digital Dealer’

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Location, Location, Location

Thursday, April 23rd, 2009

Location is considered king in the world of real estate. If you feel the auto industry is tough, try real estate. My wife is a realtor, but unlike others, she is thriving because she understands the need to market homes digitally and through several online portals. (You wonder who gave her those ideas?) In the dealership realm, surprisingly, location is also key. However, It is not where your dealership is located that matters most, but the location of your digital advertising.

Those of you reading Digital Dealer magazine are already on the path of online profitability. Those of you taking workshops, seminars, webinars, and attending conferences are achieving significant Internet sales. Those of you staying abreast of market trends, new technological solutions, and your own internal metrics are taking the right steps. All dealers have web sites. They have their inventory listed online. Most are dedicating budgets to third-party leads, SEO, SEM, and other digital marketing tactics. These dealers have taken the next step in becoming more than a dealership with an Internet department, but an Internet dealer. The problem arises when dealers are dedicating their budgets to online initiatives everywhere. Vendors can provide one good reason to be advertising on their site, but online saturation in this market is an impossibility.

Digital display ads are the most common form of online advertising. You find these as banner ads, skyscraper ads, leaderboards, and those aggravating pop-up boxes. These can contain text, graphic images, interactive material, or multi-media rich content. These online ads are very similar to any other newspaper or billboard ad, except a digital ad’s effectiveness can be tracked. You cannot click on a billboard. That form of advertising is simply for brand/dealer recognition. However, dealers don’t need location/brand recognition unless they are a new dealership or have recently relocated. If you’ve been in the same location for 25 years, you don’t need dealer awareness. In today’s market, you need to be present and available to shoppers while they are on the Internet researching, regardless of their place in the sales funnel. The primary goal of a digital ad, as we know, is to get the attention of online visitors and have them click onto your ad thereby linking them to your web site. Obviously, these online ads can deliver traffic to your site. Much like a realtor placing an “Open House” sign at an intersection, pointing you in the direction of the home, the digital ad offers the “driver” the same opportunity. Those who are prompted by the sign to visit the open house/web site would be considered a “click-through.” There is no use for a realtor, or for a dealer owner, to post a sign advertising a location unless the end result drives someone to see you.

Dealers must tighten the notches on their budgetary belts and realize they cannot be everywhere. Take a close look at your digital ads and determine if they are getting the impressions and the click-throughs for the money. It takes a little, simple math.

For example, at my former dealership, we briefly ran skyscraper ads running on the web site of a local radio station. Impressions were enormous, but the click rate was minimal. Considering it was not an industry-related site, I shouldn’t have expectations that the web visitors clicking to the web site were very far down the sales funnel. If you receive 100 clicks on your ad and your web site converts, say, 5 percent of every visitor to a lead, you can expect to receive five leads. If your dealership has a good closing ratio of your own web site leads, call it 20 percent, anticipate to realistically sell one car. Continue to drill. Does your average gross profit from one Internet sale equal the cost of your digital ad on a site? If you aren’t seeing the return on investment, rethink the need to be on the site. Is it a good location? “Breaking even” doesn’t pay the bills. You may want to pack up and set up your digital shop elsewhere.

Many use their gut instincts when determining where to have the ads placed online, while others use logic. I contacted my ad exec-extraordinaire for my former dealer and asked her the first step in deciding where to place a dealership’s digital advertising. Beth Hoover, account manager for Pinnacle Advertising and Marketing, said, “Advertising web banners on specific sites, based on behavioral targeting or something as broad as visitor demographics is our first recommendation. During and at the close of each campaign, reviewing click throughs and impressions can help determine the ROI. Is it really worth it? I believe the success of any campaign requires many components, including the creative, the idea behind the creative, banner placement (leaderboard, skyscrapers, etc.), number of visitors clicking on the site, time spent on the site, the question “are you there when the customer is looking?” and lastly, common sense. In other words, if you own a Lexus dealership, posting web banners on the local watering hole might not be the best way to spend your dough.”

Beth touched on behavioral targeting and visitor demographics that are becoming more of a focus now more than ever. An ad’s location is becoming a science. The top Internet marketers and advertising agencies are taking their responsibilities seriously by geo-targeting (delivering different digital content based on the geographical location/cultural market) the dealer’s potential customer base. It is essentially niche-marketing based on specific geo-locations of your anticipated customer base. The understanding of that location, not just of the digital advertising campaigns, but of the online shoppers as well, is imperative.

When it is time to review your ad budgets and allocate new or existing dollars to different opportunities, realize that the location of your digital ads will predicate the success of the ad dollars. Simple math determines the ROI. If a site wants your advertisements, but the ad’s success on the site cannot be tracked, only justified, don’t move into their neighborhood. You won’t be happy living there. Instead, do some research on that area that is best for you. Make sure you are going to like your neighbors and the home will fit your financial needs. Unlike most real estate ventures of late, buying land on a web site should show dealers a quick profit. So focus your efforts on the three most important aspects to your digital advertising. Location, location, location.

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Snake Oil Online?

Thursday, January 29th, 2009

With so many vendors available to your dealership, it becomes difficult separating the worthy from the not-so-worthy.What vendor is right for you during these trying times is one of the more difficult questions to ask. Some dealerships are even creating Vendor Relations Manager positions just to have one person dedicated to fielding endless calls, sitting through sales pitches and managing the plethora of companies pounding on your dealer door.Someone must determine what, actually, is worth your time?

For those of you who know me or have read my columns, you know that in my articles I share my own experiences, opinions, musings and struggles.What I write is never meant to be an indictment on any one individual or service, just my own perspective.(With a preface like this to an article, I know many of you are saying “Uh-oh…who is he going to tick off?”That’s not the case.)I just want people to remain focused on their own interests and not let the interests of others affect their own judgment.This is near an impossible feat in the world of vehicle sales, but I’ll type on.

Many of us are attending NADA in New Orleans this month. We’ve visited the recent Digital Dealer Conferences and walked through the vast exhibit halls.The NADA Convention, much like the DD conference, is filled to the brim with worthy programs, services, and products trying to earn your business.All of these vendors can add one new dimension, for the most part, to your sales or fixed ops needs.However, I ask again, what is worth your time?

At my previous dealer, I fielded the incoming calls from all new sales vendors looking to promote their wares.I’d sit through countless presentations of their services and create my own analyses that I’d share with the owner and general management.Over the past few years, the amount of internet-focused programs seems to have tripled, as have the calls and showroom visits from their representatives.With the internet-based programs, though, many seem to be targeting such a small segment of your business that, while the service may yield more sales, the overall impact is minimal.

When I would meet with a vendor representative, I would always ask how many sales they would expect us to generate from adding their service.On several occasions, the reps’ answers to this question were “Even if you sell three cars, the program pays for itself.”I despise this answer.I believe every vendor’s program is, at the very least, valuable enough to sell three cars.Selling three more cars, though, is not a dealer’s goal.Three more cars sold in this economic climate will not make or break a dealer.Dealerships should focus on forming partnerships with vendors that will sell them thirty (not three) additional vehicles.I equate those representatives whose intent is to sell in their product for the promise of three sales to new-age snake oil salesmen. (Pardon the gender-specific title).

There are programs out there that can help your dealership move 30 or more vehicles a month.

  • Forward-thinking website providers
  • Proven SEO/SEM companies
  • State-of-the-art CRM solutions
  • Customer retention programs
  • Inventory listing sites
  • Big-name lead providers
  • And lead scoring companies (to name a few).

These types of online services can play a significant role in your store’s survival.The other online vendors offer amazing tools that will help you shift your dealership’s culture online as well, but likely wouldn’t have the same influence on sales as the others.Let’s face it.Dealers are cutting back their spending.Even the dealerships leading the game know they cannot be involved with every opportunity.We must evaluate what vendors we will succeed with and are whether we are willing to back the vendors we choose with our own optimal effort.(It is a two-way street).As a dealer, you must work for your vendor as much as they work for you.As a vendor, you must ensure your product is capable of delivering great successes consistently for clients.If your product, program, or service is hit or miss in its success rate, it may be time to go back to the drawing board and develop an initiative that all dealers covet.Easier said than done, I’m sure, but belief in your product is not always enough.

So when walking through the exhibit halls at the NADA Convention (or any other conference for that matter), keep in mind that your goal should be to find a vendor willing to help you grow your business by leaps and bounds – not baby steps.Don’t be marveled by the miracle medicine being pitched.Be pragmatic.While online initiatives remain the way to go in today’s marketplace, realize they don’t all cure what ails you.

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The Negotiation

Monday, December 8th, 2008

This is what happens when an internet-researched client meets the stereotypical car salesperson. When someone appears overmatched and under-trained, it only looks bad on the dealership. Sales Professionals must dedicate themselves to understanding how to overcome online objections. This is a DealerKnows specialty.

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Will Your Internet Department Sink or Swim?

Saturday, October 4th, 2008

An Internet Sales Professional should be a life raft.You can stop an internet customer from drowning in a pool of builds, specs, and prices.You can save them from visiting one salesperson-flooded dealership after another.

 

Now ask yourself…are you a life raft or are you an anchor?

 

A life raft will answer a question quickly and, more importantly, competently.

An anchor will attempt to drag the customer into the store by giving them either as little information as possible or by flooding them with prices.A life raft offers quality answers after the initial email and gives customers realistic expectations and fair offers.An anchor promises the imminent arrival of a vehicle they have little chance of obtaining.

 

One thing that an Internet Sales Professional (ISP) can be sure of is the internet-savvy consumer knows a price waits for them right around the corner; one website away.More and more, customers demand to have all their questions answered… and sooner rather than later.Vague answers are no longer adequate bait to lure today’s consumer.
 

 

Save them from vague answers, repeated urges to visit, and automated follow-up responses.If you want to be competitive, you have to answer their questions on the first email.Please notice… “email”.Don’t be the person that calls them immediately, even if it is under the veil of “Did you receive the information I sent you?”They are sitting at their computer with their inbox open!They know you did not send anything!You can always call later; but you can’t change a bad first impression.Send a personalized email first.

 

Internet Sales Professionals have the opportunity to separate themselves from the typical salespeople on the dealer floor.These are the very people the consumer fears and want to avoid speaking to in the first place.And let’s face it, we ISP’s are all just glorified sales reps with good word tracks, better organizational skills, and fast fingers.However, customers have higher expectations of us.Johnny Car-Buyer doesn’t want to believe he is talking to a Sales Rep that can type.Nor does he want to be conversing with a technician from a computer store.He wants to believe he is speaking to a knowledgeable friend that is looking out for his best interest.Johnny needs a life raft.

 

Any ISP worth their weight in leads will tell you that directing an internet customer to act is just as easy as a walk-in customer.We all have the same job duties.We all are fighting toward one goal.“Get the customer in.”How we go about this and how we view our job description, though, is what separates you from the next ISP a few miles away.How do you direct an internet customer, you ask?Your first email will rarely spur someone to hop into their car, drive to see you, and drive off with the exact vehicle quoted.Not anymore.A few years ago this was a little more common, but people want all of the information nowadays.They don’t do this solely by collecting prices.Internet customers ask follow up questions.It is how you respond to these questions that determines your worth as an Internet Professional.

Build trust by moving the internet customer one step at a time.Build the relationship, connect with the customer, and move them toward you.This is how you differentiate yourself from other ISP’s and endear the customer to you.Customers want to be guided on their car-buying process.Replying to customers’ questions will give you the opportunity to direct them to the dealership. If handled correctly, you can guide them straight to your lot.You don’t need to light a fire under them in the first email.You simply need to give them reasons over time to see you.It is a process.

 

Some dealers operate by inundating their internet leads with mass amounts of information, whether it was requested or not.This is called the “Info Anchor”.The anchor drowns the customer with builds, specs, and prices, hoping to look like they are being upfront with their information, but, in reality, just trying to save themselves time from following up.You don’t need to purchase ALL of the leads possible. You simply be more thorough with your leads so your closing ratio increases.

 

Like everyone else, I shop my competition.Their initial emails with amazingly low price quotes, attached list of all features and options (and even discounted warranty prices!) are absurd.Even though they are not being vague, they are supplying the customer with too much  information:The Info Anchor. However, try to ask them a follow up question and wait for a response.Continue to wait.Take a nap.Take a trip.Take a coma.You will keep waiting because they hardly ever answer follow ups.They give it their one shot and they’re done.That is when Life Raft (me – and not just because of my size) floats in and saves them.I keep them headed toward land by answering any remaining questions they have.I don’t make their vehicle purchase seem like a too-good-to-be true mirage, but a tangible and reachable goal. An overflow of information will simply numb them from realizing the difference between a fair deal and a nit-picky deal.You will just send them shopping.Doing this is creating your own worst enemy.

Here is my request to all ISP’s.This is what I am asking you to do.
1) Do not give the lowest possible price for a vehicle.Offer a competitive price that reflects the value their vehicle deserves.You are selling something of value.You are selling a motor vehicle that will be carrying their most important commodity – their family.

2) Don’t offer to beat everyone’s deal.You will only send them scavenging for quotes.In latter emails, simply tell them you will stay competitive with other offers.

3) Build value in what you do.Buying a vehicle can be a painful process.You are saving a customer from going through a potentially-frustrating and painstaking process of visiting an endless number of dealerships to get the same questions answered.

4) Tell them the truth.It is a lot easier to remember what you have said to them in the past.

If a customer feels that you have saved them time, energy, and a little money…you have already become their life raft.You have become a real Internet Sales Professional and you have earned the sale.

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Amazing Grace

Saturday, October 4th, 2008

Sing it with me – “I once was lost, but now am found. Was blind, but now, I see.” This is the truth – except the being blind part. Attending the 2007 Digital Dealer Conference “…saved a wretch like me.”

You will not learn anything in the article – not much at least. There is no structure to this piece like my typical articles – just a stream of consciousness and writing from the heart. This is my personal story about my time at the most recent Digital Dealer Conference in Las Vegas. A thank-you note, if you will, to those that had a profound impact on me. Later in the article, I will tell you some of what I learned, but first, I need to get something off my chest.

I have always been a confident guy. I believe in myself, that I am good at what I do, and am an upcoming expert in an evolving field. My past articles have been calls for action to change the culture of Internet car sales. I say often, “I don’t claim to know everything, but I claim to be right about everything I know.” However, on the way to the conference, I began doubting myself. I felt empty. That my search for increased knowledge and enlightenment would go unfound. I was in a rut; I just didn’t realize it until now.

Maybe I expected more from myself after college than being in car sales. Not trying to demean the industry where I make my living, but admit it. It’s not the sexiest and coolest of responses to the questions asked at every barbecue. “What do you do?” Your answer almost brands you as a “bad person” in some social circles. But I’m not a bad person. Never have been. As a matter of fact, I have been told one of my biggest flaws is that I try to please too many people. I try to motivate others, make people laugh. I consider myself a comedian, a storyteller. I’ve been involved in improv and sketch comedy in Chicago for years to back up these claims. I am extremely passionate and extremely opinionated – a big man with bigger ideas and the biggest of hopes and dreams. Somewhere, though, sometime recently, I must have lost that passion for our industry. After four and a half years, the monotonous multi-tasking of an ISM’s daily work had taken some of my spirit away. The Digital Dealer Conference gave it back.

My dealership is not filled with monsters. We have good people selling and servicing vehicles. Our management team is friendly, though not exactly Internet-oriented. Ownership is supportive. We are an atypical dealership compared to others, I believe. At the conference, though, I met truly fascinating people with a genuine care for others’ ideas. Some became friends. These are people I hope to be associated with for a long time.

I will namedrop some and conceal the identity of others. I had the opportunity to rub elbows with leaders in the field – people I was excited about meeting and speakers that gave me far more to think about and focus on than I had ever imagined. Jim Ziegler, the keynote speaker, was impressive, but I was also pleased to find myself sitting next to our very own Sandi Jerome (whom I had never even met until that point) and was able to attend her informative seminar just afterward. Clayton Stanfield overwhelmed me with his comprehensive understanding of the bigger picture of Internet sales. Jared Hamilton and Trevor Hill spoke about ISMs being groomed for a GM position. If only everyone realized the business sense of this. Stephen M. Stauning gave ideas for negotiating with vendors that opened my eyes. However, it was another speaker, Craig Criswell, that said one of the more memorable quotes regarding the topic of vendors. It wasn’t during his seminar (which I believe to be one of the strongest). It was over dinner one night. I had the opportunity to “talk shop” with Craig and the amazing gentlemen from ILead Control (more on them later). As if talking to a vendor and pointing with the authority of a professor and the knowledge, experience, frustration, and resolve in his voice of someone who has fought in the Internet trenches, he said, “The vendors’ job is to make us money! It is not our job to make them money.” Even though it makes perfect sense, I had never heard it stated so clearly. I was in and among my peers and mentors. Craig had been successful in the Internet field before I even had a driver’s license. (Sorry, Craig, that’s not a shot, it’s a compliment.) It was an amazing opportunity to share my ideas and ideals with those people.

The vendors were impressive. To see products and services ahead of their time instills a passion for the industry I have never had. I see the light farther down the tunnel and know I’m heading in the right direction. I actually know what I want to do with my career. Suzanne from 5Square was a delight, Jason from Dealix, Dan from VinSolutions, the crew with BZ Results – all with great ideas and products. There were too many vendors to mention.

I’m saving the best for last. I want to thank Bill Hilbun and Steve Norby of ILead Control. It is so refreshing to spend time with likeminded individuals of such high moral character as these two men. To know people like this still exist in our industry makes me feel better about my choice in careers. I want them to know how truly grateful and overwhelmed I am by their support and friendship.

You just don’t go for the seminars, but the opportunity to spend time with others like you – others with the same concerns, triumphs, work ethics and goals. This article is for everyone. To the fun and crazy Internet director from So Cal who, while partying, decided to get a tattoo. To the spunky ISMs from Colorado for the long, strange night of karaoke support. To the ISM downstate from my dealership that admitted mystery shopping me after reading a past article and complimenting all of my content and my follow-up effort. I wasn’t mad I was mystery shopped, I was flattered. You know who you are. I definitely hope to see you all again.

I leave feeling fulfilled – for the first time in a long time. I’m passionate again. I see the future of Internet car sales and it excites me. It will always be evolving, always changing and growing – much like life I suppose.

Hopefully, you can read and understand what the Digital Dealer Conference has done for me. It’s given me a new outlook and new ideas. If this article motivates just one of you to attend the next conference and you gain half of the pride and enjoyment in our industry that I have found again, this rambling, inarticulate story has done its job.

You may think I’m crazy. I’m actually rejuvenated. The Fall 2007 Digital Dealer Conference in Las Vegas – I went to the desert, but came home refreshed. What are the odds?

Thank you for allowing me to share my experience with you. I hope to see you at the next conference and, in the meantime, I wish you all success.

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