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An Open Letter to Mark O'Neil - Chairman and CEO of DealerTrack

Mornin' Alex! You write: "...organic SEO is dying to TV branding?"

In this sentence what I want to say is: "Organic SEO is dying and Traditional Media is it's benefactor". Let me break it down.

Organic SEO is dying.

We all know that searchers click the top listings on the Search Return Pages (SERPs) and we know that Google is constantly adding new SERP products that push the organic results lower and lower. Over time we've seen Google Adwords (paid ads), Google Places(Local Maps) push Organic SEO lower, Now "Google Products" is yet another item that pushes the organic results lower on the page.

Google Adwords is a long tail and a short tail product. Google Local is a short tail product, and now "Google Products" is aimed at longer tail organic SERPs (e.g. year, make, model) A future "Google Products" example would be "2010 Kia Soul for sale" In almost all cases that I've seen, Google hard wires the "Google Products" result to the top of the SERP.

Ok, so how does TV win more revenue as google expands it's SERP products?

Any Automotive business that LIVES on the internet (AutoTrader.com, Cars.com, UsedCars.com, CarGurus.com, etc.) gets traffic from an assortment of sources. Internet Traffic a site can come from TV, Print, Google Paid ads and folks Google'ing the site's name. On top of all that, a portion of a sites traffic is from Organic SEO (Long Tail SERP example: "best price on 2010 Buick Enclave"). As Organic SEO real estate shrinks, so does that Organic SEO traffic.

This will produce a measurable LOSS in business. Traditional Media WINS more share because the loss in Organic SEO traffic needs to be offset.

AutoTrader and Cars business model is fueled by big investments in traditional media, UsedCars and CarGurus is not. Should "Google Products" come to our space, the lower tier players like UsedCars and CarGurus who live (or die) on Organic SEO traffic, will have the most difficult challenges to their business model.

The ridiculously brilliant Chris Dixon* wrote an article that loosely connects to what I am referring to: "SEO is no longer a viable marketing strategy for startups". SEO is no longer a viable marketing strategy for startups

** Chris Dixon: Personal investor in early-stage technology companies, including Skype, Foursquare, Kickstarter, Stack Overflow, TrialPay, DocVerse (acq by GOOG), Invite Media (acq by GOOG), Gerson Lehrman Group, ScanScout, OMGPOP, BillShrink, Panjiva, Knewton, and a handful of other startups that are still in stealth mode.

An Open Letter to Mark O'Neil - Chairman and CEO of DealerTrack

Joe
I may be wrong here but I think Google Products is populated by Google Merchant which use to be Google Base. If you understand the data structure you can upload a file to Google Merchant unless of course your product is Vehicles, Real Estate and a few other large categories. IF you can get a file uploaded to Google Base it will populate the Product search. I will say it is not easy though.

An Open Letter to Mark O'Neil - Chairman and CEO of DealerTrack

If this Google Products concept becomes reality in our space...

BIGGEST WINNERS! PPC specialists like:
Eric Mayhew's Total Control Dominator @ Dealer.com
Duncan Scarry's HayStack2 @ Moore & Scarry

WINNERS! Google Supported Review Sites Like:
Chip Grueter's DealerRater.com

WINNERS! WebSite Vendors:
Another technical service needed by dealers
HomeNet (yet another mission critical inventory feed that web vendors need)

WINNERS! Traditional Media:
Organic SEO is slowly dying. The days of free traffic due to intelligent site design are almost gone. Big 3rd party sites know that TV branding is alive and well and will have to spend more $ to offset the lost organic traffic.

LOSERS:
Organic SEO for Dealers.
Organic SEO for 3rd party sites like AutoTrader, cars.com, usedcars.com, cargurus.com.

An Open Letter to Mark O'Neil - Chairman and CEO of DealerTrack

google_chrome_dealertrack.png

Dear Mark O'Neil,

You are the Chairman and CEO of DealerTrack with a fascinating bio that includes being President of an Auto Dealer Group, you’ve worked at Intel, you co-founded CarMax and you're Director at DealerTire.com. It's quite clear you have a nose for opportunity and with your Harvard MBA, you know how to leverage it.  I hope this information finds its way to your desk.

I would like to present to you comprehensive report of a gigantic opportunity that resides inside one of your existing companies.  It is an undiscovered jewel that's waiting for you to roll it out.  Once you do, your data marketing partner will become Google...Yes Google.

I have better news. Google’s management team needs you and is looking for CHROME.

What is this Google Opportunity and what does this have to do with DealerTrack’s CHROME?  Google has a new  product search feature called Google Products, and it requires extremely detailed product data that CHROME specializes in.  Let’s see how it all fits…

Let’s look at a Google Products example for a Garmin GPS:
google_garmin_search.png

Google is slowly building out it’s Google Products platform. Here is another Google Products example, this time taken from the automobile accessories industry.  See the link for  “Jeep Floor Mats” (Scroll to the bottom and you’ll see the “product attributes” that Google requires to make this work). If you swap out the Jeep Floor mats and insert ANY vehicle for sale (like a NEW 2011 Ford Flex or a USED 2008 Buick Enclave) Wow!

This digital marketing opportunity is not limited to Google.  Here is Yahoo’s example of the same concept:
yahoo_dealertrackdearch.jpg

Bing has it also, but it’s not as fully developed.

WHY CHROME?

I saw this opportunity in 2010 and attempted to fill this void myself.  I've had discussions with Google Products data vendors from other verticals (EdgeNet.com) and have come to the conclusion that it will require an automotive data specialist inside our space to make this happen.  IMO, there are few companies in the automotive space that has what Google needs and I have been working with CHROME data so long, I felt you’d be best suited to it.  This is confirmed by Google’s PR: “Going to the Source to Improve Product Data

When CHROME takes on this new partnership with Google, what kind of nationwide impact am I talking about here?

Let look at the automobile accessories industry for clues to what could happen in our space, let’s look at Audi Q7 accessories and visualize a 2011 Audi Q7 in its place:
audi_google_audi.png

What happens is CHROME creates the attribute map for all automobiles and this information creates a path FROM Google Products to the Google Shopping system, and to the organic search results AND to the Google Adwords (Paid search) results. I’ve uploaded my inventory to Google Shopping and nothing happens because there is no Google Products for automobiles (yet).  My Audi Q7 is highlighted below and it sits there all dressed up and no place to go!
search_google_q7.png

The Google Products is a relatively new feature for Google, and Google’s roll-out is limited to the time consuming connections it makes with vendor attribute specialists.  Google is looking for a solution partner in the automotive manufacturer/dealer space and they don't know you have the key to the attribute vault!

CHROME’s Revenue model? That’s up for exploration.  I believe you'll need to build a new business model for the product as it's a data/advertising product with no peer (in our space).   My research taken from www.Edgenet.com tells me that any retailer that wanted to be visible in the Google Products system needs to “participate” with the data vendors program.  This makes the Google Products vendor the “gatekeeper” for all retailers!  That being said, the Automotive model is completely unlike ecommerce retail so creative exploration will be required.

I do know, once it's launched, it's impact WILL dramatically impact our entire automotive retail internet marketing industry... forever.

Mr. O’Neil, your team’s contact at Google is Mr. Brian Lam, Strategic Partner Manager, Google Product Search.  Mr/ Lam is a new hire (6/2010) and you two need to talk!   The  “Google Products” platform is built around ecommerce, so some joint creative thinking will be needed.  Once you two conquer the details, the impact to consumer, manufacturer and retailer is going to be... epic.

I hope you and Mr. Lam found this report to be the beginning of a new product launch in the automotive retail space.  If I can be of any service to you or your team, please feel free to contact me.

-Joe Pistell

SEO is Evolving ...into our world

A great thought provoking read Alex. Thnx! CarGuru.com is working it: http://bit.ly/lXy9E6 (bottom left column)

Creating Local Social Signals that are high quality must be very difficult for google. Google has their hands full. This is a very complex problem. Off the top of my pointy head...

Metro Demo vs Rual Demos.
I am from a small market, and these social signals are few and far between. I've got no proof, but, not only are small markets... smaller, but I'd bet the Social Signals per capita are lower too.

On top of that, each SIC (industry) has it's "social profile".

Very Social:
--Dinner theaters (SIC:5812)
--Country musical groups (SIC:7929)
--Nightclubs, alcoholic beverage (SIC: 5813)

Not So Social:
--Ceiling installation Contractors (SIC:1742)
--Fur bearing animal production (SIC:0271)
--Construction Sand and Gravel (SIC:0271)

All of the above can be scored and weighted in an algo. It's the webmasters job to build a site that Google can "identify and classify" correctly.

Surely, Google compares it's organic findings against Google Places info (i.e. the business's claimed categories and Google Places Quality Score) and will layer in Social Signals for additional weighting.

Another angle to consider where Google embraces BRANDS as a strong
quality signal. Local Franchised dealers have a big BRAND advantage to work here.

SEO is Evolving ...into our world

Alex, SEO Evolves
2 things,
1. Are we building our own SEO bubble, the constant narrowing of WHO I AM to the Googlelex means I am getting more narrow and more narrow stuff... see TED Talk on this Eli Pariser: Beware online "filter bubbles"

Login to view embedded media View: http://www.ted.com/talks/eli_pariser_beware_online_filter_bubbles.html


and
2. Great study done see Eric Enge article on Searchenginewatch The Role of On-Page SEO Content: Relevance, Not Rankings. http://searchenginewatch.com/3642269
Both stories are eye openers
Torrey Russell;autodealermls.com

SEO is Evolving ...into our world

You are in line with what I have been thinking for quite some time, and also shared at my DD10 presentation... Your statement "Google’s mission in life is to deliver the most relevant results to its users" - is absolutely true, and the explosive growth and utilization of social media has given Google one of the best opportunities they may ever have to integrate "personal recommendations" on what sites would be most relevant to one's search, and significantly improve the traditional "back-linking" model that Google and the other search engines have utilized for years...

SEO is Evolving ...into our world

Reviews can be gamed, but they also carry a penalty in US courts of law. Building a link farm does not carry the same weight of punishment.

No system is ever perfect, and people will always find ways to game a system or "work a payplan." The average person writes these things off as "the costs of doing business." The smart person finds ways to game the game. Google sets the rules of the SEO game, and they're fairly smart.

Keep thinking out loud Brian - I like where your head is at! I also like the advice you're giving.

SEO is Evolving ...into our world

So true Alex.

Google, and others, are busy trying to figure out two things:

* How to rank social content
* How to rank authors of social content (Influence)

This will help solve the "real life" issue you describe above & help reduce the impact of SEO "gamers" - good products & services will eventually have a way to rise above the muck.

SEO is Evolving ...into our world

Alex
I agree with your observations and predictions. Google has to socialize their SERP's to provide more value to their users. The interesting challenge will be how they use Facebook likes or Google Places reviews.

These too can be gamed. We already are seeing services that will post fake reviews or "like: your posts on Facebook for a fee.

Mashable just covered a story on a new startup called Likester and you can read up on this at: Startup Makes Facebook Likes Searchable. The idea of using "likes" to spot trends and popular thought is interesting. Google must be thinking along the same lines.

The beauty of good SEO strategies is that content can be optimized to attract search visibility for a set of keywords, which may not be intuitively connected to the company.

When you compare that to reviews, sites like Google Places, give you five categories to classify the business. There are other places for additional text but for now I see that business directories pigeonhole a business into a limited number of silos.

If Google uses weighted reviews, it could possibly assist the SERP rankings in those chosen categories.

For example, if A Japanese restaurant gets high reviews it would make sense that a local search for Japanese Restaurants might place them at the top of the list, in the future. But would these reviews help when someone searches "Kobe Beef Steakhouse" which is not a category or text that is in the review?

I'm just thinking out loud. In any case, dealers looking to create more relevance to their primary marketing website would be well served if they:

1. Add Social Media Sharing Buttons on all pages.

2. Add compelling content on their website that would attract readers to click the like button on that page to share it on their Facebook Page or to Tweet it out.

3. Actively engage their customers using social media to develop a powerful communication channel which now may also have search optimization benefits.

4. Remember that videos are more apt to be shared on social media channels so start to leverage buying tips, consumer protection advice, customer testimonials, walk-arounds, and human interest stories that help brand your dealership as the "expert" in your town.

When you create good content and compelling videos, the next step is to syndicate that content to increase the chances that it will be found ,shared, and social relevance links created.

SEO is Evolving ...into our world

Hopefully you're reading that title thinking "duh Alex, of course SEO is evolving."  Google changes things in their algorithms so often it is almost a different animal every day. Staying ahead of things is a full time job.  However, you're probably wondering how it crosses into the real world.

SEO-Reputation-Social.gif

No, I don't want to get into the weeds of SEO, but I do want to point-out a very significant change that could drastically change our approach to SEO going forward.

Before I tell you what I'm seeing let's make some assumptions.

  1. When I say "SEO" I'm talking about organic search on Google
  2. Google's mission in life is to deliver the most relevant results to its users
  3. SEO practices, as we define them today, are simply a gaming of Google's algorithms

Those last two points are bigees. Google has been limited by technology and has had to rely on tags, links, and things of that nature to point their spiders in the right direction. He who understands these things, and plays to them, wins the SEO game. The problem here is that it is all a SEO game; it isn't real life. In real life a good product is a good product and when you have a good product people talk about it. When people solely turn to Google, a good product can be trumped by a superior SEO strategy if the inferior product knows how to play the SEO game. A "product" can be a website, it can be your business, it can actually be a product you purchase.

How can Google get around things that game their system?

They can bring the real world into the algorithm. Web 2.0 was all about giving individuals a voice and one of the results of this movement was a broader acceptance of social media. Some sites like twitter and facebook created standards for communication on their platforms that made it very easy for Google to see. Pair that with review sites like Yelp, DealerRater, and all the review engines there is another standard of information that is very simple for Google to crawl. If these social medias and review spots are representative of individuals mimicking "real life word of mouth voting" then Google has a very powerful new addition to their algorithm.  Why has Google's Places with Reviews pages seen such real estate increases in SERPs?

To put this in plain English:

Google is currently experimenting with using social media and reviews to drive search results. Their experimenting is getting deeper and deeper and is looking more and more like it is going to become a very major piece very soon.

Right this minute, the old SEO game is still very much alive. Representatives from Google have even stated that traditional linking still has more weight than social media.  Content and Links still apply.

I just want you to start thinking about how you're going to put more effort into your reputation management strategy as the SEO game (you might want to reread this article) could significantly change in the very near future.

The Test Drive Conundrum - Has It Changed?

All good points, as are Charles' above. I was curious about how consumers aside from me felt about this so I sent this article over to the KBB Market Intelligence team, who posted it as a poll on kbb.com between May 6 and today, May 9.

The results did lean in my favor, but I do understand a little bit better now after reading the responses to this article why it's done the way it's done.

Question: Would you be more likely to test drive a vehicle if you weren't required to ride with a salesperson?

67% Yes, I would prefer to test drive alone
29% No, I don't have any problem test driving with a salesperson
3% Yes, I would rather ride with any dealership staff other than a salesperson

(253 responses)You can see the pie chart posted along with results from some other polls here: http://mediaroom.kbb.com/driver-input

The Test Drive Conundrum - Has It Changed?

@twitter-15780597:disqus,

I would caution any dealer from taking your advice without consulting an attorney. What you are in effect creating is a gender biased policy at your dealership that could run afoul of state and federal laws. If not done properly, your business could be vulnerable to gender discrimination suits. You are less vulnerable if you tell these "creepers" to get off your lot than if you create an employee policy as you outlined.

I am sorry that your wife had such an awful experience. Thank you for sharing this story with the rest of us as we are now challenged to come up with a process that protects ALL of our employees (regardless of gender) while also protecting the dealership and other individuals who may be put in harms way by "throwing" the keys to the wrong person.

The author of this post began by asking which of three test drive options is a procedure at our stores. The OP on this thread asked are there legal reasons why a store wouldn't use test drive #3 as its preferred method. I answered this question directly.

@google-45b444e2f8a19db2e548f40663b4aad8:disqus
had the credited response. Is there a place for unaccompanied test drives? Sure. Are there ways you can create an unaccompanied test drive process that reduces your exposure? Sure, as Mel pointed out.

I don't believe that our only choices to protect our employees are either to create a gender-biased process or to "throw" someone the keys and put countless more people in danger.

The Test Drive Conundrum - Has It Changed?

SideBar: Different Test Drive rules for the sales gals!

My wife sells cars and there are creepers out here. My wife had a creeper break her 4 right turns and refused to comply. He went off and took her to show her "his place". She cued up 911 on her cell, gave him one last warning and he turned around. NOT GOOD.

SALES GALS:

Your pic is on the net. Never ever leave on a Test drive until you CYA (Cover Your Ass). Always trust your instincts. Single adult males of any age are to be considered potential trouble. TELL EVERYONE YOUR LEAVING AND BE VOCAL. Get copies of the drivers lic. Get keys of other car to your manager, bring along a lot guy or send them alone, do what ou have to do to keep yourself out of a bad situation.

Managers,

CYA! If they fall into bad hands, lawyers will descend on you like rain in Seattle. Write special test drive rules for your sales gals.

Mr
Charles Gallaer wrote of the costs and risks of 1,000 mile joy rides. I'd take that expense any day over a EMPLOYER ENFORCED test drive that ends in personal tragedy.

The Test Drive Conundrum - Has It Changed?

Shopper WANTS Test Drive#3, but sometimes a little product knowledge and a joint Test Drive#1 is what the shopper NEEDS.

In my case, We're a #3 store AND we sell used that are NOT cert'd pre-sale. Hmmm... I smell trouble. Great post Joe W!!!

New opportunity to explore! WEBB RADAR UP AND SCANNING!

As a marketing director that's paid by the number of cars we put over the curb, I have to ask myself, If you send the shopper off alone in an un-cert'd used
car, when they return, what skilled followup questions do we ask?

(grr... will my to-do list EVER get smaller??)

The Test Drive Conundrum - Has It Changed?

So, is a test drive the same as a demonstration, or are they different?

I say they’re different.

When salespeople allow themselves to be sold on the belief that they are commodities, they add little or no value to the purchase process. This is what happens when a salesperson allows a customer to drive on their own without any targeted demonstration of the desired features and benefits in action.

Also, even when salespeople do accompany them, many customers leave a dealership without knowing what the vehicle they drove can TRULY do for them. This is largely because in many cases, a customer drives first on the test drive.

If you think about it, the word DEMONSTRATION implies that one party is showing another about something. In the automotive retail world, wouldn’t you agree this should be the salesperson showing the customer something about the vehicle they intend to purchase?

Unless you are MAGICAL at getting your customers to drive a vehicle the way you want them to, the BEST you can hope for is that they will drive the new car like they drive their old one. The worse case is they’ll drive the new car TIMIDLY because they’re not familiar with it. Either way, if they drive first, most customers won’t fully discover the value the vehicle holds before they leave your store.

The successful salesperson differentiates his or herself by providing a remarkable experience, a great part of which is a quality demonstration. The salesperson must first actively discover their customer’s needs and intended usage for the vehicle, then be willing to tailor their demonstration to how each person in their party will be using it.

A quality demonstration is actually more about the customer than it is about the vehicle, salesperson or dealership. Our job is to help our customers clearly picture improved life experience through ownership of our product and an ongoing relationship with us.

Would I allow customers to drive on their own if they ask?

Of course, but only AFTER I've shown them what the car can do and they've signed an assumption of liability.

So drive the car first with them as passengers and show how the vehicle will make their day to day lives better. Then help them try all the things you showed them. Since you know the car better, help your customers round out their intellectual knowledge of it with the visceral understanding a quality demonstration provides.

THAT’S when you’re adding value to the purchase process, when you’re no longer a commodity.

The Test Drive Conundrum - Has It Changed?

Tracking UPS is what we do. Our system identifies the true number of UPS that come on a dealership lot which is typically much higher than the number input into most CRM's. Once you identify the true UP count and you know how many you sold, the formula is simple.

The over 5 million UPS, I referred to are from over 100 dealerships across the country including highline, imports and domestics.

The Test Drive Conundrum - Has It Changed?

Woah woah woah... not going on the test drive with a customer? YOU'RE FIRED!

I believe 90% of the time option 1 should be executed, in the back seat if there's a spouse (if there's kids you get to play with em ;-) ), and you should make the test drive about THE CAR and not about the salesperson/dealership. This is a great time to show off how much better your brakes work than their old ones, how much smoother your suspension is than their older one, and make sure they spend some real time in the car and not just go around the block. Selling Nissans I was all about the test drive! Many customer wouldn't be comfortable doing the things I told them to do on the test drive without me there (like passing cops and honking horns at strangers).

Now, I have the other 10% of the time let customers drive by themselves. You can get a sense of when someone would be better sold if they drove alone, and at times I've insisted they drive alone. Especially if it's a wife/husband.

The Test Drive Conundrum - Has It Changed?

Woah woah woah... not going on the test drive with a customer? YOU'RE FIRED!

I believe 90% of the time option 1 should be executed, in the back seat if there's a spouse (if there's kids you get to play with em ;-) ), and you should make the test drive about THE CAR and not about the salesperson/dealership. This is a great time to show off how much better your brakes work than their old ones, how much smoother your suspension is than their older one, and make sure they spend some real time in the car and not just go around the block. Selling Nissans I was all about the test drive! Many customer wouldn't be comfortable doing the things I told them to do on the test drive without me there (like passing cops and honking horns at strangers).

Now, I have the other 10% of the time let customers drive by themselves. You can get a sense of when someone would be better sold if they drove alone, and at times I've insisted they drive alone. Especially if it's a wife/husband.

The Test Drive Conundrum - Has It Changed?

I think going on the test drive with a customer is one of the most important things you can do. I don't know how many times during a test drive a customer has made a comment about a like or dislike with a vehicle while driving down the road that will make or break the sale.

For example you are driving down the road and the customer makes a comment about the road noise in the vehicle. Now being a professional salesperson you know you are currently driving a a base model and they have less sound deadening, so when you get back you grab the next level up and take them out for another test drive, this time the noise is gone and you are back on the road to the sale.

Now if we had gone with option #3 the customer came back, handed us the keys and all we would know is that the customer has decided this is not the vehicle for them. So I guess my question on #3 would be, how many sales are lost on simple objections that would have been overcome with a salesperson along for the ride?

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