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Buying A Car an Infographic and Some Important Stats

Someone should create an info-graphic about the day in the life of an auto salesperson - whether consumers believe it or not, most salespeople I ever met are just trying to earn an honest living, and if customers knew what we know, they would never want our job knowing what we deal with too. How many customers bring the animosity to the dealership as opposed to the car sales guy? And how many of you watch a customer leave the showroom, and everyone looks at each other and says: wow, what a jerk! They were completely unrealistic! We know what is said because we often find the customer a lot more unrealistic than we are. Who created the animosity? How about KBB, Edmunds, and all the other so-called authoritative websites which post article after article about salespeople's tricks and deceptions. We don't ever get a break. I worked in the ISM capacity for 10 years and most  people buy the new car they requested a quote online about, most of the time, maybe a trim level change. Used cars are different, because people make impulsive decisions about the car they like more often than not.  Maybe if car dealers sold cars like selling steaks at a restaurant, we'd be better off. Okay Mr. Customer you can buy the Aged Prime Steak (perfect condition used car highest price), or the Prime Steak (good but obviously you have to buy the tires if you want new ones, not perfect), or Prime Choice (this is like buying from a private buyer at the lower price you saw online - you get what you pay for, this is the one I can sell at the price you want to pay). Take your pick! Obviously you can't go to Ruth-Chris and get an aged prime steak for the price of prime choice - it's an unrealistic request.

Buying A Car an Infographic and Some Important Stats

I agree with you Jeff.  After all of the research done online, consumers come to a store knowing what they want.  What they want and what they end up with are two different things, as there is still no substitute from the "brink and mortar" experience.  
 
On One Price--these stats have dropped from J.D. Power  survey 17 years ago where consumers said they would prefer to go through a root canal than negotiating for a car.   It was in the low 90% range if memory serve me well.  Reversing that conditioning is going to continue to be a challenge.  I think that the trade value enter into this issue, as it's still true that the value of a trade is in the eyes of the appraiser, thus different values at different stores opens the door to negotiate.  I also think there is a substantial number in our industry that don't care to see negation change.

Buying A Car an Infographic and Some Important Stats

I'm curious about the source of this data... 73% want one and ONLY one price??? I wouldn't be surprised to find a half-truth in that... consumers wish they only had to deal with one price. But once they get to the store to do the deal, so many want to negotiate. Even with all the research being done and that research being sold as a benefit. I know a lot of people do want just one price but it's not 73%.
 
And 52% don't know what make or model they're going to buy? I know a lot buy something other than what they intended, but 52% have no clue?
 
I dunno....

6 Reasons Your Dealership Does NOT Need A CRM

Your 6 reasons are exactly what we face everyday in getting dealerships or any company to realize the benefits of a CRM and why its important to have a CRM. However without a "champion" enforcing the process they are doomed to failure. All my successful customers have made using their CRM mandatory, and it's worked. You can't stop bad behavior in any company with any sales force, but you can get your team to be productive if you give them the right training and tools to enable them to do their job well and improve. In every industry's sale department, training, education and management are the driving forces of successful sales numbers and gross. I use a CRM myself and I can tell you I am very successful and it's made my life much easier than it would ever be without one ! Since I can use my CRM from my iphone I'm in it all day everyday. Dealers just need to be more educated before deciding on a CRM if they have a champion and how to enforce it in my opinion.

6 Reasons Your Dealership Does NOT Need A CRM

I have worked with multiple CRMs at a huge automotive group, and have seen all of the issues you talk about - however - I have learned one key thing. Until you get your mid-level managers involved with your CRM tool, you will never see great success. Your sales managers must be "bought-in", and be directly involved with using the CRM each day to then be able to motivate and lead their sales teams to use the tool as well. That means you must be able to show managers how a CRM can help them make more money (seems to always be the case :)...  
 
Will be VERY interesting to see a cloud based DMS (Microsoft) working with a CRM tool in the upcoming years...

Touching Your Customer


Which billboard ad does your customer drive-by and view 50 times per day?


Which newspaper ad do your customers look at 65 times per day?

Which online banner ad does your customer look at 100 times per day?

I’ll bet you don’t have a marketing initiative that touches each one of your customers 50-100 times per day. At the end of this article I’ll share two new marketing channels dealers are using to win first mover advantage with their customers.

Touches

In the world of marketing “touches” matter. That’s why as marketers we’re in the local paper, on facebook, on a billboard, or sponsoring a local charity auction. Good marketers know that building a brand doesn’t happen with one super bowl ad. Marketing takes variety and it takes strategic repetition.

We want to be first in mind when our customer thinks of taking a purchase or service action with a vehicle. Easier said than done. In order to be there when the timing’s right a lot of “reminding” needs to happen weeks, months, or even years before.

In the car business, especially among the same brands, we all sell the same end product. As a result we need to differentiate - build a brand that jumps to a customer’s top of mind when they think of purchasing or servicing a vehicle. This requires a strategic mix of traditional and cutting edge marketing initiatives.

Breaking Through the Noise

remarketing_train.png
An innovative marketer is constantly looking for, and experimenting with, new unique ways to get thier brand message in front of the customer.

Why?

While traditional approaches, such as print advertising or paid search marketing, seem like a safe bet, the truth is these channels are now overcrowded. Overcrowded with marketers who are late to the game. Our messages continue to get lost in the mass of competition trying to do the exact same thing we are.

The true value in many of these channels has already past! Those early-in were able to reap tremendous benefits before effectiveness started to wane with the mass of “me-toos” joining the party. Think of the first marketers who really leveraged Google’s paid search program. Boom! Top spot in multiple categories for pennies on the dollar.

How about those who leveraged Facebook early? You’ve heard the success stories.

“Wait, Ben. Facebook doesn’t work for our dealership”.

Translated: Facebook doesn’t work for our dealership, NOW. Those “early all in” marketers were able to leverage a solid, effective channel before it became overcrowded. To do this, innovative marketers try and make all kinds of mistakes.

Without a doubt, many a dollar was spent poorly “testing, trying, and failing”. The reward, however, for those who find a solid new marketing channel can pay off huge in marketing reach and marketing ROI.

“Ben, are you saying we shouldn’t invest in print or paid search marketing?”

Of course not. A quality marketing strategy has a well-balanced approach. My goal is to stretch you, to get you to experiment, test, try, and fail. You don’t need a massive budget to dip toes in the water. Remember your customer is changing day-by-day – previous marketing channels that were successful are losing their effectiveness.

Marketing Channels to Watch

So what innovative channels should you be experimenting with right now? I’ll share two with you. Retargeting and Smartphone Home Screen Marketing

Retargeting

If you aren’t utilizing retargeting with Google, you are missing a substantial opportunity. Retargeting gives us the ability to touch a qualified customer with a message multiple times per day on multiple websites, no matter where they choose to browse.

See how it works: visit http://automotiontv.com. You’re a quality candidate to me. As a result I happily pay Google for the opportunity to market to you over the next month - all around the web. This is an undercrowded opportunity for your dealership right now. Start a retargeting campaign with Google today.

Smartphone Home Screen Marketing

Your customer has a smartphone. It’s more precious to them than their wallet!

How many times do you look at your smartphone home screen per day? Is it 50? 75? I’d be willing to bet for some of you it’s more than 100 times per day. Smartphone home screen real-estate is some of the most valuable for today’s marketer. There simply isn’t another form of media your customer looks views with this frequency. Have you noticed no matter where you go on your iPhone or Android device, you are constantly prodded to download an app?

Visit USAToday, eBay, or Zappos from your mobile browser. Why are top companies encouraging you to download an app? An app download requires an icon be placed on your home screen. Whether you open that app or not, you’re seeing it on your screen many, many times per day. These “touches” make it much more likely that the next time you’re interested in current events you’ll think of and open the USA Today App. The next time you think of shopping for shoes or that new computer, you’ll open the Zappos or Ebay app. After all it’s one touch away.

If your customer downloads your dealership mobile app early in the sales process, you have created a “lock in” effect. The next time they think of searching inventory or scheduling service they think of you. Not only is an app a multi-touch branding opportunity, it offers one touch convenience for a next step action.

For the cost of mobile app for your dealership, I can't think of few better values “per touch” right now.

What other cost effective ways are you "touching" your customers? 

Dale Pollak VS Google at DSMC

I have been following the Google Cars program closely (with what information is readily available), as I am sure this will be a game-changer. I am willing to tackle your 3 questions Jeff...
 
1) I don't necessarily think this is the end of 3rd party leads, unless Google chose to not allow 3 party sites to utilize SEM to drive traffic. That would not make sense to me as Google is a for-profit company, which is the same reason they are creating google.com/cars - to make money. Make no mistake about it, this is not a "feel-good" project by Google designed to help consumers buy cars, it is a strategic move to make millions of dollars from the automotive industry in return for having their inventory displayed.
 
2) Yes, Google has this right, or should I say "of course". This is Google's platform, and they can decide to use their marketing solution and prioritize it over AutoTrader, Cars.com, or any other provider. Now whether they will do this cheaper than AT or Cars.com is another story. I would believe that Google will charge the most money that the market will bear in return for their services.
 
3) I don't believe that people are not sending leads because they are afraid of solicitation. The proxy model embraced by many providers is built on the assumption that customers do not want to communicate directly with dealers (which is an indirect way of saying "you should not trust car dealers"). If you are watching your key metrics closely, lead counts remain strong and are growing, with phone calls coming back much stronger than email leads as smart phones and "click to call" links are becoming more prevalent and convenient.
 
Thanks for the video clip, and great job to Dale for standing up!

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