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The Test Drive Conundrum - Has It Changed?

Interesting post. From a consumer perspective, I feel most comfortable with #3 because I don't negotiate as well with someone I have any real connection with (if I don't know you, I don't care as much if you make an extra $500). However, it's true... Test Drive #1 makes me feel cared about :). There's nothing as intimate as announcing, "Hold on, Joe, I gotta check out her 0 to 60," or "Put down your coffee, Joe, we're gonna find out about her 60 to 0," as I slam on the brakes. After one of my test drives (which I do in several models), I know, deep in my heart, you deserve that extra $500.

The Test Drive Conundrum - Has It Changed?

Depending on your particular state and how the law has advanced, you could limit the scope of recovery of damages if the customer decides that option #3 includes a test drive of 1000 miles to another state or a fender bender. The dealership's insurance policy may also preclude covering losses that occur on test drives that fall into option #3. And, by looking at the customer's insurance card, how can the employee know with certainty that the customer has sufficient insurance to cover an accident, or if his or her policy covers accidents in another vehicle altogether?

Around the NYC area, there is a serious problem with staged accidents. Option #3 would increase a dealership's vulnerability to this kind of fraud.

Joe, I wish your article would have expressed the benefits to the salesperson to accompany the customer on the ride. With proper training, sales people will see the test drive as value added and can easily overcome a customer's request for option #3. The internet has strengthened the argument in favor of sales people accompanying a test drive. Contrary to popular belief, just because a customer spends a few hours looking at a computer screen they do not become experts on a product. Take an internet customer and ask them to walk though the operation of SYNC or MYFORD/MYLINCOLN Touch on a Ford vehicle to see what I mean.

The reasons for not using option #3 as a dealership's preferred test drive policy far outweigh the possible benefits.

The Test Drive Conundrum - Has It Changed?

Interesting then that the entire gate for getting #3 is sales process. I guess my questions now are:
1. Is giving the customer what they want on a test drive more or less important to dealers than controlling the entire sales process?
2. Is there another time during the sales process that you can convey value in the vehicle, the salesperson, and the dealership?

The Test Drive Conundrum - Has It Changed?

This is a great post regarding test drives.

The issue regarding test drives that we have discovered in tracking over 5 million UPS is that it is not done. We know on average that the test drive only happens 56% of the time. So almost more important than how this 56% gets handled is what about the other 44%?

In my opinion the test drive is two fold.
1. to build value in the vehicle (which if done properly will build gross)
2. to build rapport and value in the sales person and dealership.

So my question is how much business is being missed when test drives are not done effectively or not done at all?

The Test Drive Conundrum - Has It Changed?

Great post, Joe. As someone who hasn't sold cars before, I can only comment from a consumer perspective that I greatly prefer #3. On a test drive, I want to see if I can build a relationship with the car I might be spending thousands on later today and driving for the next 5 years, not the salesperson. My relationship with the salesperson, as nice and great as they might be, will likely only last a cumulative 5 hours through the lifetime of the vehicle at most.

I also want my wife sitting next to me in the passenger seat because it's important to me that she's comfortable in the car in the spot that she'd normally sit in.

Is there a legal/insurance reason why option 3 isn't done more often or is it just the sales reasons listed above? Every time I ask to do it that way, the salesperson looks at me like a deer in headlights and has to disappear for 15 minutes to ask permission from the GM.

Blueprint Series: CRM revisited

Uncle Joe stated "4-6 years ago, SEO and CRM were rather new to the world"
This is precisely why I asked Alex to revisit this topic. So, with today's CRM what are the strenghths and what are the weaknesses? For instance, back in the day it was server vs web-based. What's the niche today? Integration with DMS? Who has the best Fixed Ops solution?

Blueprint Series: CRM revisited

Hi ya JC!

UI issue = Dealer purchase error?
Well... kinda. That's like saying SEO issue = Dealer Purchase Error. There's some product evolution goin' on here. 4-6 years ago, SEO and CRM were rather new to the world and only the most progressive dealers knew of SEO and knew of CRM's usability problems.

The dealer forms a partnership with the vendor. The vendor understands they must evolve their platform or lose the client at the contracts end.

Next, Dealers are not experienced in buying technical tools. Most dealers do not have an in-house player that has technical knowledge, business knowledge and knows how to get a car over the curb. I've seen web vendors show off SEO skills by ranking #1 for ridiculous low volume car search terms. The unknowing dealer sees the #1 rank and therefore assumes that lots of free traffic will come from this vendors "secret formula".

Hell, DR ranks #1 for: social media rainbows fairies unicorns :)
Should DR be making dealer websites? hahaha

I believe there is a BIG opportunity for independent consultants in our industry because now more than ever, DEALERS NEED SKILLED ADVICE.

Blueprint Series: CRM revisited

Crmsalesguy and Uncle Joe both have touched on what seems to be a struggle for most. But, is utilization % really a UI issue or a training issue? If it's a UI issue I must question how much homework was done prior to making the decision to partner with the vendor. How to buy a CRM | Part 1: Introduction – DealerRefresh. If your situation is training then this opens up a myriad of questions such as middle mgmt buy-in, dealership implementation, vendor support and ofcourse dealership approach to accountability which Uncle Joe broke down in the typical Uncle joe fashion. Nice job Joe!

Blueprint Series: CRM revisited

CRMsalesguy nailed it. Word to the DR community, if building a CRM was easy, then... where is it?

Building a CRM that ALL users like is very very difficult. Another way to say it is building CRM for one store is easy. The design challenge comes from 10000 managers that need a custom CRM solution that works for them.

CRM product managers, please find a way to HIDE THE HORSEPOWER behind an ultra-simple design.

One way is to hire OUTSIDE players (3rd party User Interface(UI) consultants and independent CRM consultants) to go out into the field to record and SCORE your current UI. SilverBack is a great way to use video at the dealership level to bring back user research Silverback 3. Silverback will help you see what reps & managers use, don't use and don't understand. Find ways to bury complexity, yet, make it accessible for power users. A real design cluster F*! Another way is to gather data is to fly all the CRM consultants to a summit, put them in a focus group and pay them to tear your UI up.

More Data Points:
CRM product managers, Score yourselves! Design a usability test!
#1). How long does it train a NEW HIRE on how to use CRM?
#2). How long before the rep masters his daily tasks?
It's should be 30 minutes & few followups and master it in one to two days.

More Data Points:
Create a test to give to current reps & managers that already have been "trained" and have them perform tasks from simple to complex to gauge their understanding of the UI (are we helping them get the job done?).

Let these results drive your design.
The UI should be intuitive.
The UI should be intuitive.
The UI should be intuitive.
The UI should be intuitive.

Anything else = FAIL.

If you find UI bottlenecks (aka confusion), see vAUTO. They have looked at each and every touch point and added little hyper-linked "question marks" that contain great info on that helps the user move forward (hello REYREY! Anyone home!??!)

Also, If your dealers are using 10% of the CRM's potential and they don't call your support, you need to fill that hole too. The managers need for you to supply a personal CRM genius to help them as needed, but, they don't call (because they don't know how to ask the right question!). Pay/reward this CRM genius based on the on the dealers depth of use. See CallRevu's brilliant staffing model. Also, see Cars.com dealer relations model. My Cars.com gal calls me each and every week & I never need her, but if I do, I've got her name burned in my head (Jen!).

Blueprint Series: CRM revisited

As a % of total product use, I'm interested to hear feedback on the "explosive growth in technology".
Just because there is more on the menu, can a store really do more with it? Is your answer the same as the Dealers?
What % of your CRM product do you think your store really utilizes? Not just you as an individual, but your store as a total.
Does your store get today out of the product what they forecast at time of purchase?
Have you been through multiple CRM launches because someone wanted new functionality when they didn't even use 1/3 of what you had?
If you'd had to use your 1st CRM offering (with included upgrades) for the last 10 yrs, would you be better off because you'd be such a better user than your shiny new toy that "does it all?"

Blueprint Series: CRM revisited

The reason I asked Alex Snyder to revisit this topic(The CRM Arena)is due to the explosive growth in technology not to mention the numerous vendors that have seemed to have whithered away. Why is this? Though technology has improved have we inturn improved our utilization? If so, how? What are voids in the CRM arena today? Fixed ops? Video? DMS integration? Inventory Module? Desking? Currently I use VinSolutions and love the tool. In the past was a avid iMagic user and was also involved with implementing what was then FireSocket commonly known as DealerSocket at Pinnacle Nissan/Infiniti for Vantuyl. Is the answer a holistic platform integrating website, CRM/ILM and inventory module? Kevin Frye seems to think so and I must say he made some very valid points in his session at DD10. So I say to the entire DealerRefresh Community. Let the games begin!!

Blueprint Series: CRM revisited

I just want my CRM to be easy to use, i'd like to see folders to organize the leads perhaps? I have an internet / bdc department and i'd like to see better reporting for them. I see constant conflict with sales and management, using the system. The CRM is only as good as the data you put into it. I am a huge fan of CRM.

Blueprint Series: CRM revisited

I think that a CRM vendor should be flexible and work with a dealer's other vendors to integrate where possible. So that when a salesperson get a key from the key machine that activity is logged and attached to the record of that customer. Many of the more progressive companies out there will share data so we are trying to choose vendors that fit that model.

Digital Dealer 10 Review with Kevin Frye - #DD10

Great write-up Kevin as well as a SPECTACULAR job speaking at your event. It was engaging and very informative.
I agree with Brian - It is great to see the Dealer community embracing education and he is one of pioneers in helping to educate Dealers.
@Joe - I don't know about that. If you look reeeeeeeeeaaaaal close you will see a slight crack in the lense of the camera of the pictures im in. LOL

Digital Dealer 10 Review with Kevin Frye - #DD10

You did not attend Digital Dealer 10?

What kind of Jackwagon, Mamby Pamby are you?
As only the infamous R. Lee Ermey “The Gunny” could scream, Digital Dealer 10 in Orlando was a lot of fun, with great presentations, multiple vendors with useful products for the industry, and of course lots of networking and after-hours entertainment. Many thanks to Blackbook for bringing in R. Lee Ermey to their booth. I had to share with the Gunny that I never forgot the welcoming words from my Drill Instructor many years back – “Your heart may belong to Jesus, but your ass belongs to me!”

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Getting a bone-crushing handshake from the Gunny…. Kevin Frye and R. Lee Ermey

I actually arrived early this year to attend the VinSolutions Dealer Advisory Board. We had 40 dealerships on the board to discuss pressing issues and challenges within the industry. It took no more than 5 minutes for a huge debate to break out regarding how dealers felt about social media (more on that later), and while there were many differences of opinion on various issues, I learned quite a bit.

This was a very impressive event, where Vin was really working to get dealers’ input on where they could improve – that says a lot for this organization. Many thanks to the entire VinSolutions team for this great event and for their hospitality.

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The Website Wizards at VinSolutions – Kendall Billman and Patti Glaspy

I left the VinSolutions Dealer Advisory Board to moderate a roundtable on Tuesday morning for the start of Digital Dealer 10 in sunny Orlando. There was a huge, packed room of dealers who wanted to talk to others and learn how to become better. I must share first, a big thanks to Maria Burkel at Dealer Communications who went the extra mile to make sure the moderators were organized and prepared to run a smooth event. I had a full table of folks who were full of questions, such as “Do you work leads with a BDC or with your sales reps?”, “Is it better to dealership have live chat that you handle yourself or should you outsource your live chat?”, “What type of pay plan do you have in place for your people?”, and much more. I think you could have gone all day with just the roundtable portion! The best part of this kickoff session is that dealers can meet other dealers and swap business cards, and have some networking connections before things really get started.

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Digital Dealer 10 Roundtable Attendees Eager to Learn!

In my best Blazing Saddles accent – “I don’t need no stinking projector!”
For my first session, I attended Tim Jenning’s YouTube Video Walk around presentation. I knew Tim was good, but wow, a presentation about YouTube without video? All kidding aside, there were some technical difficulties in the beginning (no Internet) but Tim worked like a pro around them, and shared how he used YouTube videos to encourage his shoppers to “Get off the mouse and get out of the house”. I liked how he shared that folks can brand themselves with the videos to prevent being skated, while building up a following as the “Video Guy” at their local dealership. Tim encouraged participants to utilize a great tool called Jing that allows you to take a picture or make a short video of what you are doing on your computer monitor. When you get the same question over and over again on the phone from folks at your dealership asking how to change their password, upload their videos, etc, why not make a short walk-through video that you can email them? Visit Jing to learn how.

Next, I presented on “Likes or Links – Which One Stinks, and Why Social Media is BS”. Wow, I used to think that the subjects of politics and religion should be avoided as they are controversial, but Social Media should be on that list as well, as there was a full house, and not everyone agreed with me... Since I was selling nothing and had nothing to lose, I spent some time sharing what the Jeff Wyler Automotive Family has learned across the last 3-4 years with our social media efforts, and where we are looking for future success. Simply put, Facebook “likes” look to be the new links of the future, along with Tweets, and more, as the search engines are indexing the social media sites heavily as they look for the personal endorsements that help them serve up relevant results. Our social media efforts have shifted to embrace that, and you can see some of the integration we have completed with the search engines by looking at our Cincinnati New and Used Cars website portal (lol – another great SEO effort, now don’t forget to go to the bottom of the page and click on the Facebook Like button!). I have to be honest, I still feel like a rookie with this speaking thing, but I want to thank Joe Webb for helping me (congrats on your new baby Joe!), as well as a shout-out to Shaun Raines, who gave me the courage to go out on a limb and share my Navy “giving experience” video. I hope that everyone found the information I shared useful, and for the vendors I aggravated by calling “BS”, sorry…

That Boston Bean is a Speaking Machine...
Chris Fousek was packing the house with his presentation “Travel the Road to the Internet Sale”. I had strongly encouraged Kevin Gordon and Nick Williams of the Jim Pattison Group in Canada to attend this session as they were working on their workflows and processes on how to work an Internet lead. Who better to learn from than the master, Chris Fousek. Chris mapped out the road from Internet lead to sale, while sharing how to build rapport, get the appointment, stay off price, and build value so that you will ultimately win the sale. Great job Chris!

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Jim Bell, Arnold Tijerina, April Rain, and Kevin Gordon

Well, Davey Jones and the Monkees may be believers, but I am still cynical…
The first general session was “The Role of Independent Internet Leads: How progressive dealers are driving true ROI from their Internet operations. David Kain and Steve Stauning shared a lot of great data on lead providers and ROI from several dealerships, and how they were using a mix of lead providers and tools to drive profits for their organizations. Where I differ is in regard to third party leads. In my humble opinion, TRUE ROI is measured when you also take into account the cost of labor for working your leads, hence my cynicism with someone who claims great returns with these leads. Wow, I know I can ignite a firestorm with this statement, but that is the nature of my personality. If you are nice, perhaps I will write on this subject in more detail later…

Drinks are on the house!
Well not exactly, drinks were on Team Velocity, Tier10 Marketing, Car-Mercial and CallRevu at the opening meet and greet appetizers and cocktails as the exhibit hall opened. I had a great time meeting up with old friends while meeting new ones as well. I always spend my first exhibit hall visit taking the time to talk with our established vendor partners, such as DealerRater. Chip Grueter flew his own plane down with the DealerRater crew to setup their booth, while also taking the time to entertain their clients. Sounds like Chip is a great pilot, though Heather thinks the flight could have been smoother… After enjoying a few drinks with both dealers and vendors, it was time to eat…

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The Proctor Honda and Acura Group joins Paul Rini, GM of Jeff Wyler Florence Buick GMC

Big Brother is Watching…
Everyone always wants to know about the “word on the street”, and what the buzz is about. For me, the biggest difference at this conference was the shift in who was attending. I saw a significant increase in how many dealer principals and General Managers attended with their folks who handle eCommerce and all things Internet. This included myself and Alex Jefferson, and I also saw several competing dealer principals in our market. When I think back to the earliest conferences, I remember that some of the biggest challenges facing the attendees (mostly Internet managers) were getting their GM’s and owners to understand the importance of the Internet and our market, and how to get their support. Now, I am seeing that our owners and GMs’ are taking an active role in learning about and supporting our eCommerce efforts. With that in mind, I expect to see continued growth for the Digital Dealer conferences in the future. And btw, I had a great dinner with one of my Dealer Principals and GMs that night, where we had a great conversation about what we were learning at the conference, and how we could become better when we returned.

The work never ends…
Some of the best networking takes place “after-hours”, and I met several of my great friends poolside at the Rosen Shingle. I had a great time talking with Mike Roscoe as well as Rich Lucy with Courtesy Chevrolet, both of whom are outspoken and keep me on my toes. Mike shared with me his support of embracing speakers that have different views and opinions on some of our biggest challenges today – and I support him. Yes, I know there were some issues with some prior speakers not being at this current conference. Regarding this “Pink Elephant in the room” for several - I can say that I truly desire for all speakers to be present, and I hope that any differences can be resolved, because it would benefit all dealership attendees. On a side note, I have to share that Mike’s team setup a first-class event with the Rosen Shingle. When I was in the exhibit hall, I was constantly being asked if I wanted an appetizer, and if I set down a plate or glass, it was immediately picked up, and when I presented, there was someone there to greet me, setup my laptop and audio, and more – Wow! Many thanks Mike! And if I can go out on a limb and be a peace-maker, I hope that we can see Brian in the near future…

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With Mike Roscoe and Rich Lucy – I hope to see Rich speak at a future DD event!

It don’t matter how late you drink, you better be up early and ready to think…
Despite the best efforts of several to “keep the man down” and fill me up with various drinks, I was up early and ready to go, though I felt bad for Tanesha White who was next to me early that morning while I was sweating out 5 miles on the treadmill, ouch! The morning began with breakfast and networking of course, and I learned about perhaps the strangest product I have seen at Digital Dealer. I met Kathleen Eymann with ClimateClean, a company dedicated to reducing and eliminating and greenhouse gases. What if, when you bought a car, you could buy carbon credits that would offset the emissions from your purchased vehicle? That’s right, now there is a place you can do that. I suppose there might be a few F&I guys that might want to try this as a gross builder, but I am unsure. Some buyers might be angry as they disagree with Global Warming, etc, but on the other hand, there are others who are trying to be as earth-friendly as they can. If your dealership wants to be lean, mean, and Green, this might be something to look into.

What the hell do you know?
Well, I guess I don’t know a lot, so I attended the general session “What you Thought You Knew about Online Car Shoppers”, lead by Larry Bruce, and with a panel including Jason Ezell and Kendall Billman. There was an extensive amount of data shared on over 4 million in - market shoppers and their behavior across a 6 month period. With almost 70% of your shoppers starting at the search engines, I walked away feeling that the majority of my efforts should focus on where my customers are going, and that means having a great organic search presence, along with a superb Google Local places listing, as well as a good performing SEM strategy. Kind of falls in line with “setting your priorities” that I shared in my presentation about social media…

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Nick Williams of the Jim Pattison Group and Friends

Rub a dub dub – time for some grub – and business!
Thanks to Cars.com and AutoAlert for hosting lunch in the exhibit hall, where I tried to learn about some of the new things available. Clickmotive was featuring their new QR code tool for dealerships, which when combined with a simple printer, allows you to quickly create a QR code sticker unique to each vehicle on your lot, so that your shoppers can learn about the vehicle from their mobile phone even if your sales rep is not present. Of course, I think the greater value lies in having a sales rep with a smart phone at the car that scans the QR code for the customer and shares that info with them – great! Cars.com was talking about the integration of their new Dealer Reviews feature. I spent some time with PSCars.com that is looking to be the new “practical system”, which allows dealers to attract Internet car buyers and then share information with them securely online. Per all of the folks at the exhibit hall, don’t get mad at me, but I was just not seeing anything that was really getting me excited. Is that bad? No – as there were a large presence of vendors with tools that are needed by dealers who were attending, and were able to get the info they needed at one location, while having their peers present to ask what they thought about various services and products.

Aw shucks, we are one big happy family…
That’s right, we might fight a lot here on DealerRefresh, but ultimately we are one big happy family. How do I know? As we have rookie presenters speak at the Digital Dealer conferences, who is sitting in the front row? Look at the picture below and you will see just some of the folks sitting in the front row for Alex Jefferson’s first ever speaking event at Digital Dealer, along with seasoned pro Jerry Thibeau presenting “Dealer 3.0 Cheat Sheet”. Great job to both Alex and Jerry, who really engaged the audience with some on the spot, live phone call mystery shops.
Jeff-Kershner-and-Su-Lin-Jasicki-and-Chris-Fousek.jpgJeff Kershner, Su-Lin Jasicki, and Chris Fousek Showing their Support for Alex and Jerry

If content is King, then this review is very SEO friendly…
OK, I better start wrapping this up. I attended several other great sessions, including AJ Maida firing up the crowd about social media, Dennis Colome (VP of Sales & Marketing with eXteresAuto) talking about dramatic changes with the search engines (GREAT job using props and giveaways Dennis, very useful and well-polished presentation), and the very last presentation for me on the very last day – Bryan Armstrong, the “average car guy”, sharing some of his innovative marketing and management techniques to take the dealerships he has worked with to the top with eCommerce. While Bryan shared that this would be his first and last time speaking, I disagree, we want him back. Lots of fun, and lots of great ideas. I think you need to email Bryan about his pay plan ideas at bryanthecarguy@gmail.com – and tell him he is great while you are at it.

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Bryan Armstrong – the “average car guy”….

Deep down, all dealers are scavengers…
Great job to Arnold Tijerina who setup the first-ever mobile scavenger hunt using SCVNGR. And what a great way to teach dealers at the same time how to use at tool like SCVNGR or 4Square to build excitement and business for your dealership. I expect to see Arnold on TMZ.com in the near future after all of these mobile phone pics of him…

As my friends in AC/DC say – Have a drink on me!
Many thanks to all of the vendors who entertained at this conference. There were great gatherings hosted by VinSolutions, Blackbook, ResponseLogix, Homenet, Jerry Thibeau and Phone Ninjas (thanks for the great dinner Jerry!), Unity Works, Dealix, and many more! It is hard to pick and choose as there are so many great events to attend. I spent the final night with my good friend Todd Smith who entertained at The Blue Martini with his ActivEngage crew. I was able to meet several of the great people at ActivEngage that I work with, including the lovely Kira Banks, as well as many more of my friends (though I am still angry at the DealerRater Crew and Tanesha White who laughed hysterically as I was drug onto the dance floor by someone who was attempting to actively engage me – you owe me!)

Survey Says! Another successful conference!
Digital Dealer continues to grow in both attendance and importance. It is a MUST for me in continuous training and especially in the Jeff Wyler’s efforts to lead in our markets. What do you do with that huge pile of notes you bring back from Digital Dealer? Get a big cup of coffee, sit down, and start entering all of the great ideas you got into your Microsoft Outlook as tasks. It keeps me busy for months to come. I look forward to seeing all of you in Vegas on October 5-7 for Digital Dealer 11!

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Q&A with Mike McFall, President of Black Book Online

Joe, I am thrilled that our initial concept has inspired such creative thinking. We hope lots of innnovation in credit process will result and that others will folllow your lead in heping us extend this basic idea into even more value to dealers and transparancy for customers.

We are really intrigued by the idea of pre selecting inventory based on the score. As you note, this is the next logical step. We also like the trade in link as a next step because it creates a super lead with the information delers need to engage customers.

Providing a link to interest rates is a big idea but we found some concern in our initial testing about protecting F&I margins so we deferred on this for a while. Linking to incentivised rates, credit repair services and leveraging credit score in a BDC environment are also natrual extensions.

I promise that you will be hearing more from us very soon about the ideas you have suggested and some other very interesting enhancements.

Finally, i would challenge you and otehrs to think about how this idea might be used in social media. Do you see it as a friendly and empowering way to engage customers in that context?

Thanks for the input!

Q&A with Mike McFall, President of Black Book Online

You can get a score without creating a lead at our demo site if you like. www.BlackBookCreditScore.com We have about a dozen dealers in the pilot, one of the best is Mike Maher of Weber Chevrolet in Missouri. He is seeing more than a lead a day using Credit Activator. Here is his comment.

“Dealership sales managers need to make the best use of their time and resources, which is why we often rely on leads. But, they have to be the right leads,” Maher said. “By using this new product, we have received 65 leads and sold 6 cars to date. It helps us by directing us to the right car buyers. This is a great product for your internet department’s tool box.”

Q&A with Mike McFall, President of Black Book Online

Very nice approach as I read the Q&A... This will not just prepare the customer but as you mentioned prepare the sales consultant with helping them with the proper vehicle / lending based on their estimated score.

Great stuff and looking forward to seeing its success & dealer responses!

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