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The New Playing Field at the Dealership - Are You Playing?

That are good thing like as at this time Cobalt was putting on regional "training sessions" for their Volkswagen dealers. I attended several. Training those days consisted around NOT calling the customer and communicating by email until the customer will be listed as a success story and best practice in the publishing and fashion industry for years to come. I wish you all well and much success in your future endeavors.
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The New Playing Field at the Dealership - Are You Playing?

It was the best of times, it was the worst of times…

Actually it was 1996.

A few memories:

  • Yasser Arafat is re-elected president of the Palestinian Authority.
  • The Nintendo 64 video game system is released in Japan.
  • Dolly the sheep, the first mammal to be successfully cloned from an adult cell, is born at the Roslin Institute in Midlothian, Scotland.
  • The O.J. Simpson civil trial begins in Santa Monica, California.
  • General Motors EV1 (the first electric car to go into mass production) is launched.

Last and definitely least, ‘Yours Truly’ started selling Honda’s in Wilkes-Barre, Pennsylvania.

Turns out, it was a very interesting time to enter the car business. I was hired into and taught the “old ways” of selling cars. Back then, going to the dealership was the best way to get information about cars. Just like going to the library..

[highlight color="#E8E8E8" font="black"] li·brar·y [lahy-brer-ee, -bruh-ree, -bree]

noun, plural li·brar·ies.

a place set apart to contain books, periodicals, and other material for reading, viewing, listening, study, or reference, as a room, set of rooms, or building where books may be read or borrowed[/highlight]

...was the best way to research a given topic.

Our challenges included how to set an appointment for a Phone Up without divulging price and how to handle “THOSE PEOPLE” who dared walk through the door armed with the latest edition of Consumer Reports (remember the magazine version?).

A few technology-forward people with disposable income actually had a PC at their house: dialing-up America Online to enter Cyberspace and Surf the Internet. Some cool stuff there… I can actually still hear that computer buzzerbouncebeepscreech in my head. At the dealership, we had some phone connections to the manufacturers to transmit our green screen data. Big Shots.

But within a year of my start date, we were approached by a new company called Auto-by-Tel. They promised to deliver qualified leads from cyberspace to the dealership for a price – by Fax -- as long as we (the dealer) agreed to provide a no-hassle experience to the buyer.

We the dealer defined “no hassle.”

We jumped on-board. Before too long, because I had received a lap-top computer for Christmas and was therefore the defacto computer genius in the dealership, I quickly ascended to the moniker of Internet Manager. On a semi-serious note, I am kinda proud to be one of the country’s first Internet Sales Managers. Not so noteworthy was the fact that our first Internet Sales Process consisted of me passing-by the fax machine once or twice a week to grab our ‘leads.’ I would then call them to tell them to come-in to get a price.

That’s the truth – any of you around ’96 to ’98 probably have a similar story. We would to hear more about in the comments below.

One nice thing about working for a group with a bunch of OEM’s was that as the Internet Manager, I was afforded the opportunity to attend virtually every OEM training on the topic for years. As fast as everything was evolving, there was a training session, an instructional gathering, a roundtable almost every month. I remember Microsoft CarPoint offering regional training sessions on how to work with “Internet Leads.” And there was a TON of trial and error. Much error. More error than trial it seemed. It was a GREAT time to learn and experiment.   It was cool to make it up as you went along.

But here we are, 17 years later. If you’ve paid attention, you’ve learned. You’ve evolved. You’ve improved. And if you haven’t – chances are you have a child getting set to run your business that knows exactly what I’m about to describe.

The Game Has Changed. Or at least, we play it on a different field.

It’s ironic how much the OEM’s are currently concentrating on your infrastructure façade. Because your front door is no longer attached to your building with that signage you are required to purchase and install. Let’s face it: the customers that come to the dealership for information are most-certainly a dying breed.

In the old school, our entire process was set-up to compel shoppers (people who came to the dealership to browse, look, peruse, etc) to buy NOW. Everything we were taught revolved around how to turn Floor Ups into a buyer - NOW. We didn’t envision a time where we, as the Sales Professionals, would cease to be the authority on the product and therefore have virtually no ability to control the conversation and process. We were taught and have been left with a process that no longer applies to the marketplace.

We didn’t see it coming. But it’s here. How will you adapt?

Try this line of thought:

Where is your front door?  Where do people “walk in” to your dealership today?

Answer: Your website. Whether you speak to them or not, they are there.

Where is the Meet and Greet occurring?

Answer: Your CRM.

Your focus has always been on Floor Traffic; managers manage what they can see – on the floor, on the lot, in the booth. If we agree that our Website is the new Floor, and that our Process is managed in CRM, as long as we can “see” what is happening in CRM, we can really blend the “old” with the “new” without all this bugaboo and fear of new process and technology – without all this fear of change.

Visibility is the key. Managers sit in glass offices and in raised towers for a reason – so they can see what’s going-on and manage behaviors accordingly! Seeing is the first step – we have to be able to see so we can react. But how do we track? What do we measure?

Does our traditional Road to the Sale still apply?

No. And yes. Yes and no.

Is there a road to the sale? Of course! Does it start when a customer physically comes to the dealership?  (Where is your front door again?).

Why are you still concerned with marking a checkbox that says “Took a Test Drive?” Realistically – why else do customers come to the store anymore?

Don’t like that last statement? Let me ask you this: How often, when a BDC Agent or a Salesperson sets an appointment that shows as scheduled does that customer not buy a car?  If you are like me and most of the dealers with whom I speak, your answer is “Not Often!”  Of course not – done right, people who actually come to your store are ready to buy a car. Knowing this, what should we as managers be concerned with when evaluating our opportunity for the first time?

Should we be checking-off the ‘Meet N Greet’ box or would it be more useful to already know the customer has been on your website and that she’s been in contact with a salesperson?  answer in the comments below

Is it more pertinent today to know that the person in front of you has had a full Features and Benefits walk-around or that this person in front of you was a Set and Confirmed appointment?

Right now, is it more important to know if the customer has actually physically been here or if, while they were here, they had a test drive?

It’s hard to argue that today we play the game on a different field. It’s only natural that the tools and strategies that we use to manage and measure this game evolve. I mean, there’s a reason they no longer wear leather helmets in the NFL, right?

Challenge yourself and your people to think outside the box and re-evaluate what is important in today’s automotive landscape. Think Big Picture, and think small details:

  • What do you need to SEE to really know your dealership?
  • What do you need to MEASURE and TRACK to put yourself in the best position to earn your customers’ business?

Provide your comments and answers below the post

It’s hard to let go of the assumptions under which you were indoctrinated to the business. But when you do, and you adopt the new tools of the trade, you just might find yourself 1st and Goal from the one, ready to score.

Welcome to the New Playing Field!

Also - if you too have a fun dealer story around 1996 - 99, please share in the comments below!

Contest! Contest! FREE Driving Sales Summit Tickets Up For Grabs #DSES

That post are about it like as non-profit, organization, sanctuary, rehabilitation and training center for the horse. Hundreds of horses have been saved, trained, housed, or re homed by the equine charity in the last five years. We are also helping to raise funds to restore best practice in the publishing and fashion industry for years to come. 
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11th Reason to Attend #DSES - Driving Sales Executive Summit

Aaron Wirtz gives us the breakdown on his breakout!

Login to view embedded media View: https://www.youtube.com/watch?v=qMuwBOzfwiU


A fairly standard preview of Aaron Wirtz's Breakout section at the 2013 Driving Sales Executive Summit, entitled "Befriending the Lonely Community Manager."

Top 10 Reasons to attend DrivingSales Executive Summit

In this post we are under stand about it  understand is that there is no direct path to online consumer sales. Consumers desire to broadcast and share their lives, and their web behaviors therefore strike out on a non linear path to purchase. The whole concept of social commerce is now realizing that every platform and network is a potential lead for an online sale. 
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An Extreme Close-Up on Your Digital Channels. Schaaaawinggggg!

Jon, loved the article and the Wayne's World references. We need more of you!
You hit the nail on the head for me in a few key areas. Numbers 3+4 especially.
In the auto industry it's tough to show that ever important "ROI" for dealerships. Your points in 3+4 go hand in hand with each other. As with the "Rock & Roll Dream Machine", sure it did not sell you a car that day, but will those people remember you're dealership next week, month, or year from now when you go to buy a new vehicle?
Expectations need to be set with the customer from the beginning when jumping into the wild west of digital advertising. If they are a customer who is looking for a "tangible", maybe they aren't ready for digital advertising. Or maybe it hasn't been explained to them in the right fashion. In order for a campaign to have success, goals and expectations must be measured and discussed. Nothing like a customer steaming mad after spending 10k on a campaign expecting the dealership to be full day in and day out because of a banner or ad they were running online. 
Thanks for the great article and info Jon, look forward to reading more from you.

An Extreme Close-Up on Your Digital Channels. Schaaaawinggggg!

Love the article and the writing style Jon, great job! As digital marketing attribution gains more traction, I think  you will find a lot more dealers that understand what you are sharing, especially when they look at the entire "digital conversation" before that final click that takes the shopper to the dealer's website.

An Extreme Close-Up on Your Digital Channels. Schaaaawinggggg!

Some people think they’re rock stars when it comes to digital marketing, and I’ll admit--- I’ve met a handful of them over the last several years. But sometimes people who think they have digital figured out need to dig a little deeper before they attempt to play that riff on stage solo in front of Pippa Middleton. Schaaawinggggg! (Don’t ask – she just has a great name.)

Hey--- let’s hang with the rocker analogy--- effective digital marketing is like putting together a great rock show; you want to have a strong percussionist, a talented bassist, a charismatic lead guitarist, and somebody on keys or rhythm guitar. They all have to play well together and link harmonically.

As I’m sure you’ve guessed by now, the same is true for an effective, multi-channel digital marketing effort. It’s not enough to do one or two things well. You have to be an expert at all the instruments and make sure they’re all in tune with one another in order to make sweet marketing music.

Look at some questions and comments I regularly hear from dealers and managers:

  1. Why should I spend money on Paid Search when I almost always appear first in organic results?
  2. I think you guys bid too high for PPC (Pay-Per-Click) placement.
  3. The cost of digital outweighs my ROI.
  4. I want more website traffic, and Company X says they can deliver that.

At first glance, these may seem like sound reasons for cutting or realigning automotive digital ad spend. But before you give away your backstage passes for Alice Cooper, let’s explore these topics in a little more detail to see why you can't judge each channel as if it were a solo artist.

Game On!

1. Why should I spend money on Paid Search when I almost always appear first in organic results?



Ex-squeeze me?

The reason you should continue to engage in paid search campaigns even though you're at the top organically is this: there are a finite number of positions on any search engine results page (SERP), and you want to occupy as many of those slots as possible. Every space, paid and organic, that you fill keeps your competition at bay. If you’re there, they can’t be!

(Insert guitar riff – waaaaoooooiiin!)

2. I think you guys bid too high for PPC placement.

Three things about PPC and bidding:

  • First, if you’re appearing where you want to be, then you’re bidding correctly.
  • Secondly, you only pay if they click your ad. If you’re indeed showing up at or near the top organically, Research from GroupM UK and Nielsen tells us that searchers choose an organic result 94% of the time. Why bother showing up in the paid search listings if they’re rarely clicked? Your appearance there will help you monopolize the SERP, increasing your mind share with searchers and your chances that your organic listing will get clicked--- all at no additional cost to you.
  • Third, if you feel you’re paying too much in PPC, perhaps you should examine your keyword choices and consider moving away from short-tail in favor of long-tail keywords. For example, “GMC Washington state” is going to be a lot more expensive than “Downtown GMC sales Tacoma.”

(Insert guitar riff – (rrrrrraaaaoooinnn!)

3. The cost of digital outweighs my ROI...

...not.

Advertising is, and always has been, an expenditure. Digital spend is much more trackable than traditional spend. But if you’re demanding a specific return on that spend, you’re probably going to struggle to prove it. Of course, the billboard you’re paying for doesn’t really show any ROI either. Neither do your TV spots or, for that matter, your newspaper ads.



When you listen to the open to Welcome to the Jungle, it’s hard to know if it’s Axl’s screaming vocals, Slash’s screaming guitar or Duff’s mesmerizing baseline that sends chills up and down your spine. And if you can pinpoint one instrument & artist--- would they sound the same without the rest of the band?

Digital ad spend spread across all the digital channels in your band should, at its core, deliver quality traffic to your website and to your dealership.

(Insert guitar riff – chittachittachittawaaam!)

4. I want more website traffic, and Company X says they can deliver that.

Speaking of traffic, effective digital marketing doesn’t exist in a vacuum. Company X may indeed be able to deliver more website traffic for you, but what will the quality of that traffic be? It’s great to bring unique visitors, but if that doesn’t convert to inventory views, Hours & Directions page visits and contact opportunities, you’re wasting your money. Think quantity? Yes. But think quality too.



A friend of mine told me how he came to understand the difference between traffic and quality traffic. His dealership partnered with a rock radio station in his community by offering them the use of what they termed their “Rock & Roll Dream Machine,” a customized van provided by the dealership for a period of time. In return, the station gave them multiple radio spots to fill.

Well, the station made a big deal on air about the day they were going to pick up the van and even slated a local rock band to play on site that day. The gist of the story is, on van delivery day, the place was a madhouse! There were people everywhere with so many tattoos and piercings that, to paraphrase Dennis Miller, it looked like half the audience fell down the stairs carrying tackle boxes.

The unfortunate part? They didn’t sell a single vehicle. Half of the sales staff was hunkered down in their offices to guard their stuff from being stolen.

Presto! Traffic! Just not necessarily the type that buys.

(Insert guitar riff – (woooahh-ubbaubba-trik!)



Remember--- effective digital marketing is about performing well across multiple channels. So don’t try to be a one hit wonder when you could be the Aerosmith of digital marketing.

Do you have a front man in your marketing band? Or do all your channels take center stage?

Party on...

And hear more from a dealer who plays all the right notes in his multichannel messaging in our upcoming webinar...


Featured Webinar

Master Your Marketing Mix - How Auburn Volkswagen Increased Sales by 40%

Thursday September 12, 2013
8:30am PT | 11:30am ET


MultiChannel is a buzzword. But how do you turn it into action? Auburn Volkswagen’s General Manager & Principal Matthew Welch will reveal exact steps for incorporating MultiChannel marketing into your dealership in this informative webinar.

Register Now

Should Dealership Map Views Be Counted as a Conversion?

As car buyers continue to change along with rapidly changing technology, vendors and dealers alike are left to scratch their heads and wondering why lead submissions are down.  While map view are certainly a way to gauge behavior in and of itself a map view is NOT a lead and therefore cannot be counted as a conversion.

Is This the Beginning of the End for TrueCar

I agree with everything said in this article. We have been with True Car for many years. Write offs were a breeze up until the past few months. Now they are being incredibly difficult. They fight me with every possible reason they can think of. Recently I had one write off denied because they claimed THEIR inquiry led to the sale, of course it couldn't be our own website and communication with the customer...
We do have good sales from them but we also write off about 60%. I'm glad to see other dealers are at the same rate when I was told we were higher than almost all dealers.
After them pulling the "our inquiry led to the sale" a few months back, I requested the terms, conditions, or policy that showed this. They couldn't not provide one but supposedly were in the works of making a Write Off Policy. I never would have guessed it would be a NO write off policy!!
They also threw in a PHONE lead, something new they were trying at the time without any warning to the dealer. I talked to my rep and it was supposed to be written off. This was back in April. Maybe we are a bit stubborn but it's still sitting on our statement with them trying to push us to pay it when told not to.
I do not like the direction True Car is going and we will be a dealer that pulls out if they actually push this No write off policy through. Our money can be better spent!

Is This the Beginning of the End for TrueCar

We had same scenario here. We just canceled them yesterday.  I think the reason they are doing this is because their partners probably think Truecars is getting the money and just not paying them their share, like maybe they doubt their reporting on these matters. Or the partners simply told them that THEY still wanted paid even if Truecars wrote it off. Either way it doesn't matter to us. We don't have a dog in that fight if there is one. We just simply are not going to pay for leads where we have had previous engagement with the customer. And what's this crap about them not sending us leads? Say what? So if that were the case, those --- whatever they want to call them --- should close at 100% right? Give me a break!

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