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Jan 17, 2009

Nice post David, exactly how much kool aid did you drink in Vegas?

Jan 17, 2009

Guest Post by David Metter

I know that many of us have taken shots at Autotrader.com in the past. Heck, I have even taken a few whacks at them myself...while they probably deserved it. But too many times, when a company does something good, you never hear about it. That’s why I wanted to take time to give you my review of this year’s Autotrader.com national sales meeting.

Very rarely does an automotive vendor allow a group of their customers to join along in the celebration of their sales staff, rollout of new products and initiatives, and just some general “letting off some steam”. When I was asked to attend, I jumped at the chance. I have had the opportunity to attend a few other in-market national sales meetings in the past and came away with great information that helped our dealerships get out in front of the curve. I figured that this one would be no different. What surprised me was the compassion that was shown towards their dealer customers across the country.

Autotrader.com has had the reputation of being the dealer’s enemy. There are numerous stories regarding rate increases and we have all heard about their national AutoTrader sales blitzes. I have always shared these stories with AT.com’s upper management team, including Chip Perry. Last year, Chip pulled me aside and told me that there were changes that were being made to move away from their old way of selling and managing their customers. As the year went on, I started to see these changes take effect. There were layers removed in the upper management chain. One key addition was the insertion of Alan Smith over all of the sales operations. Alan had managed the customer support center prior to taking on this new role. Coincidentally, at about the same time, they seemed to get rid of some bad apples within their sales organization. This past fall AutoTrader.com held a dealer advisory meeting which included some of the largest and most progressive dealerships and dealer groups in the country. They listened while we discussed our issues and successes. I knew they were listening because their entire national sales meeting was built around those earlier discussions.

From the kickoff to the finale, the message was clear. Their customers come first. Conversations around consulting with their dealers, adding value, and get this...no rate increases until at least 2nd quarter 2010. Now, some of you might make jokes about this but I haven’t had another vendor put that type of thing in writing...ever. Their sales compensation plan was changed to reward their team for retaining their customers and building relationships within the dealerships.

With other vendor meetings in the past, I have been asked to deliver a keynote or sit on a panel. In an interesting twist, AutoTrader.com asked me to help facilitate 3 training sessions around good SEO/SEM practices. Even more interesting, the first class started at 8am on day 2. Now unless you are Amish, nobody attends a meeting in Vegas at 8am, including me, (I am still a little mad about that) but I was pleasantly surprised that the room was completely full and the questions that were asked in the first session were as strong as the second and third. The salespeople attended these classes because they wanted to learn how to help their customers with their business. They are not selling SEO and SEM. In fact, I challenged them to do some homework on their dealership customers and scan their websites for best/worst practices. I can’t count how many people came up to me over the following 2 days to discuss what they had found...and they were in Vegas! Now granted, we were in a bar discussing this topic but that means that they took the time to get online and dig into their customers business practices.

The 3 day meeting ended with their annual sales award banquet. I had a chance to mingle with many of the executives from the company as well as sit at dinner with Bill Templeton, Lloyd Hecht, Dan Crowe and two of their Major Account Managers David Palmer and Lee Herndon. Nothing was funnier than watching the executive team from AutoTrader.com dancing on the stage as the band was finishing a set. I am still trying to figure out what music Roger Hildebrandt was listening to because it sure wasn’t the same music that was playing.

Usually in these types of events they serve a fancy multi-course meal but instead we received a thick cheeseburger and French fries. I will admit that the cheeseburger was great and an even greater message was sent. The evening ended with their annual awards. The most pleasant surprise was how they graded the award winners. Not only did they take annual sales numbers into account but customer retention and feedback as well as community involvement weighed into the decision.

Be careful before you start calling me an Autotrader.com shill or jokingly ask me to stay in my new vacation house in Atlanta. There are few in our industry that is more critical of vendors than me. Just ask anyone who has been escorted out our corporate office. I understand that a good vendor partner is not built in a day but I definitely like the direction that this vendor is moving. Some battleships can’t turn quickly in the ocean. Let’s just give them some time...and maybe a second chance.

About the Aurthor: David Metter is the CMO for
MileOne/Atlantic Automotive

Sep 23, 2013

Got some value out of this, thanks!

Jan 27, 2009

I have adopted a new philosophy on sending out e-mails. What I had found in the last quarter of 2008 was that the customers I was getting in direct phone contact with were telling me that they were just researching for 3-6 months down the road. It was roughly 1/3 of the people I spoke to. WOW, the rebates and incentives change by then. I signed up with a follow up company and I controll the frequency, and the content of the messages, and when a customer expresses interest it gets forwarded to the top of the que. I also added "Non-Selling" emails to the mix, and have received great responses to them. "That was a great article, thanks for not always trying to sell me something". I usually find a couple articles a month from across the web, and now my 10,000+ database doesnt hate my emails anymore (at least they are opting-out less than before). I am now putting my emails together with video embedded in them - the customers like watching a video instead of having to read it.

Jan 24, 2009

I find that it is not only important to send emails for long term follow up but to proceed with a phone call. It may sound very time consuming but the majority of the calls are just leaving messages. Why not let them here your dealerdhip's name so it is fresh in their minds? There is no way better to personalize the emails than to follow up with the sound of your voice.

tracourt · Jan 23, 2009

If you reaaly want to add the personaL touch to your followup emails, check out www.covideo.com.
I have been a reseller for them for a while now and can tell you, it works!
Contact me for any help I can provide.

philipzelinger · Jan 22, 2009

People over processes! I live by that logic but all it suggests is an order of priority and they are not mutuially exclusive. The use of new "automated" applications that use "matrix" based emails tied to initial vehicle selection and payment and downpayment objections in the initiating vehicle lead for the term prior to selling the vehicle - or even after losing the sale - coupled with service patterns and projected mileage and age for ongoing follow up for service based on the distance from the store, time between services and the type of service the customer returns for provides a logic in email follow up that replicates professional sales practices and follow up for an auto industry that is sorely in need of professional salespeople!

As an example, there is a vendor that creates an automated follow up with regular emails and or letters that integrates with the CRM and DMS to include real time payments based on suggested downpayment, current rebates and interest rates coupled with suggested INSTOCK vehicles that will lower the customers payments until they buy or die. PLUS, they are able to determine if the customer has purchased a vehicle by cross referencing with third party online resources so they can change the message to a service offer.

The ability to automatically suggest solutions including payments and information custom tailored to the customer based on their original objections is as close to artificial intelligence as I have seen in follow up systems and it is available today!

Oh yeah, it can and sholuld be done by your sales staff but, are they? If so, never mind!

Jan 19, 2009

You know, there is nothing wrong with automated follow-up campaigns. It takes on average 7 follow-up emails to instigate a response from people. You should put technology to use by automating this, just be careful of de-personalizing the messages and keep consistent with the reason people might be on a list, which brings up the real dilemma...HOW AND WHY SOMEONE IS ON YOUR LIST.

If someone submits a vehicle inquiry, following up with them automatically with similar vehicles in stock makes sense, as Matt Wilson suggest. Adding them to your newsletter however does not. You can resolve this by including an invitation in your inventory follow-up campaign for the person to opt-in to your newsletter.

With MULTIPLE OPT-IN LISTS, automation is kosher. It's more management and maintenance, but it can also be more fruitful.

Jan 19, 2009

I think that follow up is where the fortune is... but most emails but I send are all hand written. MOST IMPORTANTLY I ask for THEIR BUSINESS... and also remind the customer to ASK FOR ME, providing my hours, my cell phone, my email, always.

Jan 18, 2009

I think it’s important to remember that only 25% to 35% of consumers buy a vehicle during the first 30 day cycle. That leaves roughly 50% of your dealership leads still active and depending on the lead type, the remainder will purchase during that next 30 day cycle. If you are currently receiving 400 leads per month, this means about 100 to 125 of the leads are today or this month buyers. That leaves 200 left that are next month buyers. I threw out 25% of the leads for flakes and whack jobs. If the department closing ratio is 15%, that equals twice as many sales in second 30 day cycle. The biggest challenge is to help salespeople to understand that the main reason a lot of prospects don’t respond is because they aren’t ready to talk to anyone yet and to not yield to temptation and focus solely on the low hanging fruit. In any sales arena, the greatest enemy of a salesperson is Pre-Qualification. Sometimes you have to switch shoes with your customer to really grasp how to effectively create dialog.
One of most valuable tools you have in ecommerce is the ability to track the entire sales process. One statistic most managers fail to monitor is the average sales cycle. What I discovered by tracking sales cycles is the average gross profit on customers that purchased in the second 30 day period averaged $463 dollars more per copy than those people who purchase in the first 30 day cycle.
Being able to determine your customers purchase cycle and building a sales process around this information is critical to success. That brings me to my last point…lead accountability, in this challenged economic climate, maintaining a consistent buy or die process for EVERY LEAD is paramount to success.

Jan 17, 2009

Craig,

I completley agree with you. In a process that is longer than 73 days, the follow up times are so spread out that a sales person will not have a chance to get annoyed because the older the lead the less work you need to do. In fact, since we are in the process of sending out personalized emails instead of templates, it might be an idea to template those 100 day leads. It is no different than taking a new sales person and giving them a list of 1000 old customers and have them cold call them to try to sell them a new car except here we are not cold calling, we are just following up because they contacted us first. Your point is a very valid and excellent one. I have always had my set way of running an internet department and setting up processes because they worked for me. However, I try to take those concepts and differentiate every store that I will work at or will consult. I do not want every store doing the same thing. A 100 day follow up might work best in one store while it might really suck at another store that needs only a 70 day. Also, this is a way of branding and individualizing each store to do things their own way.

Jan 17, 2009

Stan,
I understand that process' can and are set up to prompt follow up.....The task becomes treating every call as one of importance and making each call like it's your first attempt. Customers buy at their own pace for some that may be 1 day for others that may be 101 days. My point is salespeople need to stay on top of leads wihout becoming annoying until those people either say "yes I want to buy" or "leave me alone I already bought"

Jan 16, 2009

Craig,

That is exactly what I am talking about. A process can be set to prompt staff of follow up.

Jan 16, 2009

With the number of leads a typical ISM handles each month, considering they don't all need to be contacted daily.....doesn't it make sense to put people on an action plan then contact when prompted regardless of how long they have been in the system? Why not combine some old school "either they buy or die" follow up with the technology available today?

Jan 15, 2009

Philip,

I think that what you are doing is a great idea. It might trigger a response and help generate more business for other departments in the store. This is very much so GM thinking and I like it.

Alex Jefferson,

I have not a done a process for longer then 73 days. The reason why I mention 90 days is because if I was to go into a store (now present day) to setup plans and procedures, it would only make more sense for a few reasons. The customer buying cycle has changed because of the way our economy is, I believe that customer take longer time to make a deal nowadays and want to wait. We do not want to give up an on possible open opportunities. Some people can be waiting on a promotion or a raise while others are afraid they might lose their jobs so they are holding off and some might still be in the same typical pattern. In many cases if a customer has bought or is not interested they will tell you that, ignore your emails, or ask you to opt them out. This is when you know the lead is dead. A 90 day process of 120 process could be setup depending on the CRM/ILM you are using. There are emails that can be created. I think that automated is sometime effective but I think adding personality to them by adding our own creativity as the person doing the follow up will work better. This all depends on your setup, your product, your location, and the kind of dealership you are in. In terms of email marketing campaigns, I use them throughout the follow up process and way after it is finished. A good email for marketing purposes will do one of many things for you, get you a response to the email, the customer will randomly come into your store asking for you to work a deal, or get you a response that says to opt out (which you clear off your list and move on). Be careful with these emails, follow proper procedure to not go against spam laws and also know that a lot of these emails hit spam folders in people's emails. I would send out a broadcast email once every two weeks while some stores do it monthly or weekly. I like every two weeks because you are not bothering the customer too much while hitting them at the appropriate times. It is great to send them out usually on a Thursday morning to gear up for a huge weekend.

Terry,

I think videos are a pretty cool idea on some of the emails as long as every email offers something different. You bring up a great point and this would be something to use in a follow up plan.

Jan 15, 2009

Not bad - only took 6 responses before someone mentioned video...(GJ Terry)

Put your consumer heats on. What would you want - or expect?

Probably an answer(s) to any questions asked. And, probably something that's going to make you say "Holy crap - look what this dealer sent me - I need to go check them out"!

Write something short & sweet.
Scrap the templates.
Spell-check it.

Jan 15, 2009

Add a little more to your emails by adding a video link of the vehicle(s) they are interested in.

“John, I know it’s been 3 days since I sent you an email, but I was thinking about you when we traded in this beautiful 2007 Toyota FJ Cruser. It’s showcased in the two tone yellow and white over black leather interior. It’s 1 Owner and serviced here at the dealer. I have all the records and have attached the CarFax for you to review.

You can take a virtual video test drive from home by clicking this link: http://www.autodealersvideos.com/cars/11822/ and see all the details ”

Alex Jefferson · Jan 15, 2009

Stan- I'm curious how you integrate what you are doing with this with your long term strategy...meaning 90 days or more. Do you use email marketing campaigns after 60 days to take the place of customized responses? What do you think about the effectiveness. We have done them sporadically by not consistent so we haven't gotten that part of it down to a science yet. What does everyone else think about this?

philipzelinger · Jan 15, 2009

I have learned that service sells cars so after 30 days I start integrating service offers as a "secondary" hook. If they had a trdae that I can service - not limited to my client's brand if his fixed operations is on the job - then I introduce an offer to keep their vehicle in shape pending their trade-in when they are ready so they can preserve it's appraised value and stay safe.

I also include a reassurance that if they already purchased elsewhere - no worries! I apologize for losing their "sale" - congratulate the assumed winner and then offer to keep them as a customer with our "Adopt A Customer" program for future service. I usually attach a tacid condition that they allow us to place our license frame or decal on their car to identify them as a "Preferred Customer" with V.I.P. discounts for service and future sales and referrals since I can afford to lose a sale - but not a customer - or a friend!

After all, what are friends for!

mattwatson81 · Jan 15, 2009

One of the things we offer and recommend is sending similar vehicles to what the customer inquired upon in the emails be sent to them. So 30, 60 days from now when your auto responders go out, the emails will be different every time and show fresh inventory that is similar to what they inquired upon.

Jan 14, 2009

I like this topic, it is awesome. I used to work off those templates like , "Are you still in the market?". They worked well but as times got tougher I got in the habit of getting creative. Instead of having an automated follow up system for my emails, I would create templates similar to what would be sent out in an auto follow up process. These emails would be manually sent out by internet reps simply because I would start to teach them to engage in thinking outside the box and trying out new things. I never did it like Jeff mentions, but it seems like I can learn from Jeff because this is very creative. I am also getting in the habit of adding market statistics on my introductory emails to use as a way of complimenting the customer. Now, in terms of using automated emails...I only suggest it if you are working in a small store where you are the only ISM having to deal with leads, calls, delivering the car, and some managerial duty. Even still a process should be fine tuned to work properly. Perhaps a mix of some automated emails like the ones that go out from upper management and a process of newly typed up ones that are really personalized.

Also, a thing I once did was separate my process for new and used. A new car lead I used to work for 73 days and upto 90 days depending on the product, the store, the crm, and internet department setup. A used car lead should not be worked for more than 30 to 40 days. A used car customer is interested in a vehicle which means they are ready to buy that specific vehicle within a few days, they know there are no others like it. If you are still trying to sell that customer the same car after 30 days, chances are they already bought a similar car somewhere else. What if that specific car was sold to someone else or wholesaled? Now you are wasting your own and the customer's time. Be creative, if that car is gone and you have not sold this customer, start to offer alternatives. Do a morning lot walk and keep an inventory list updated every day.

Jan 14, 2009

We must be creative in our responses, and understand that the customer needs a break from the non personal routine interaction. You have got to think that people want a break from the ordinary. I think these days we all crave it. In your Marketing Message, or email response, (I think) you must break away from the ordinary. Throw away the auto responders. Cut the bull crap replies. People don't want to be fed that crap. I don't think they ever did. I guess some are just glad they got a response, who knows. But in these times if we cannot put together a unique targeted response to a vehicle request, we are not trying. Plain and simple we should just do something else. In all respects, we should, to financially survive, because we won't get the business. One great way to get that response and to find out where the heck you stand is to use humor.

Today I asked someone if they might have fallen off a cliff. And made the statement that - "that was hard to do in Indiana but was just making sure". It opened them right up to a response. It was putting a human touch to something instead of a canned one that deserves no response. You should even put this in the subject line to get it opened. Like, "I'm really worried now, are you OK?" This may seem silly to some. But we are all human beings here. People need to relate to someone and not someone's CRM-ILM crap. Don't get me wrong, there is a place for humor and there are definitely not places for it. You should be able to figure this out.

Breaking things down to looking at where their email is being sent from. Work, home, a business you know something about. A name that seems familiar. Google them. Presume, instead of not thinking or caring. Look at your response twice to see how you might be able to make it just a little bit better. Maybe misspell something to not look prefabbed. There are people who must make perfect templates. they don't sell cars, they make or sell templates.

Just like in face to face selling, there are keywords that will get a response after you have busted down the door and let yourself in. Until you do some busting , there will be no chance for a sale.
Wendell

umer.autojini · Jan 14, 2009

Boy, this seems like lot of work...

We have all shopped competition... 90% don't even do the first call

philipzelinger · Jan 14, 2009

Communication is the key to developing and maitaining any relationship. The application described in the service drive for text messaging updates on the status of a vehicle while it is being repaired is not only a convenience for the consumer but a profit builder for the dealer. In today's consumer driven world suggesting needed service is almost impossible when the customer first pulls up since they are already defensively expecting the "upsell." Many customers drop off their vehicle and continue with work or errands while the requested repairs are being performed and the "down time" of contacting them to get permission to do the work - in many cases even the work that was requested pending an evaluation - costs everyone involved in time, money and inefficiencies.

The text messaging solution offered is a "win-win" application of an accepted communication tool that has yet to achieve its full potential. We are living in a cell phone - PDA - text world that demands instant access to information and this system definitely fits the profile.

bpulseadmin · Jan 14, 2009

LEE, Mass.—Jan. 14, 2008—autoRevenue, an industry leader in delivering a full suite of cost-effective customer contact solutions to auto dealerships across the country, and a division of Dominion Enterprises, announces the release of @utoText™. @utoText™ enables auto dealerships to enhance their customer experience during the service appointment lifecycle through a simple hosted portal. Dealers will have easy access to build a database of opt-in text message subscribers and communicate in real-time to gain approvals for repair orders, send service status updates, notify when a vehicle is ready, and text appointment reminders to customers.

Brice Englert, general manager of @utoRevenue© commented,

“Text is another effective push-medium for auto dealerships to directly communicate with their customers and nearly guarantee an impression of that message. Customer loyalty now is more important than ever and simple, efficient communications will increasingly be demanded by the ever-more-busy consumer. Launching @utoText™ at NADA 2009 is the perfect time for us to showcase our dedication to innovation and enable dealers to revolutionize the way they communicate with customers yet again.”

U.S. consumers have adopted mobile phones and, in-turn, text messaging at a rapid pace. As of December 2007, there were 255.3 million mobile phone subscribers in the U.S. These devices have quickly extended beyond voice communications to mobile computing, thus driving a consumer’s “time on device” to record levels. This advent in technology has allowed consumers to always be online. As a result text messaging provides a direct channel for quick, assured delivery of communications.

Consumers increasingly are embracing commercial text messaging for the convenience - fewer phone interruptions and no chasing voicemail. They can respond instantly to a RO approval request from the service department, allowing quicker turn times on service bays. With 75 percent of all mobile subscribers using text messaging, the opportunity to improve CSI and drive efficiency is available today.

About @utoRevenue:
@utoRevenue™ (www.autorevenue.com), a division of Dominion Enterprises, is based in Lee, Mass. As a first-mover in permission-based email marketing solutions for retail auto dealerships, @utoRevenue has evolved to offer a complete line of marketing services including email, email collection, online appointment scheduling, direct mail, voice messaging, and e-newsletters.

About Dominion Enterprises:
Dominion Enterprises is a leading marketing services company serving the automotive, enthusiast and commercial vehicle, real estate, apartment rental, and employment industries. The company’s businesses provide a comprehensive suite of technology-based marketing solutions including Internet advertising, lead generation, CRM, Web site design and hosting, and data management services. The company has more than 45 market-leading Web sites reaching more than 16.7 million unique visitors, and more than 450 magazines that with a weekly circulation of 4.3 million. Headquartered in Norfolk, Va., the company has 5,400 employees in more than 200 offices nationwide. For more information, visit Dominion Enterprises

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