GLASSER FLORA - Digital Dealer
Transcription
GLASSER FLORA - Digital Dealer
August 2011 Dino Flora BOB GLASSER Internet Manager DINO FLORA Support Services Manager JM Lexus page 20 Bob Glasser Advertising: QR Codes are Here to Stay page 8 11th Digital Dealer Conference & Exposition: SNEAK PREVIEW: “Your Best Bet For Success!” page 12 T ABLE OF CONTENTS AUGUST 2011 PRESIDENT AND CEO MICHAEL ROSCOE FEATURES Digital Dealer Cover Story 20 Bob Glasser, Internet Manager Dino Flora, Support Services Manager JM Lexus Digital Dealer Vendor Profile 24 Not Just Dealer Chat: Contact At Once! Provides Instant Engagement … Everywhere Car Shoppers Browse PUBLISHER GREG NOONAN 607-264-3359 [email protected] EDITOR MAUREEN CONDON [email protected] CONTENT EDITOR MARIA BURKEL [email protected] DIRECTOR OF INTERACTIVE MEDIA ARNOLD TIJERINA [email protected] COLUMNS Internet Sales 6 Seize the Pent-up Demand Tom Mohr Advertising 8 QR Codes are Here to Stay George Nenni 11th Digital Dealer Conference & Exposition 12 SNEAK PREVIEW: “Your Best Bet For Success!” Digital Marketing 16 Digital Marketing Independence – Can Dealers do it all Themselves? Steve Stauning ART DIRECTOR JOE BIRCH PRODUCTION MANAGER ELIZABETH BIRCH PRINT PRODUCTION NICK THOMAS COVER DESIGN JOE BIRCH COVER PHOTOS DAVID CIRCULATION SUBSCRIPTION RICH JARRETT 314-432-7511 [email protected] NATIONAL ADVERTISING SALES [email protected] 607-264-3359 Web Sites 18 Content Strategy and SEO: The ‘King’ Needs a Plan Ryan Pryor Business Development 28 Why and How to Expand your BDC/Internet Sales Department’s Profitability Glynn Rodean DEPARTMENTS 4 Tech News Dealer magazine makes every attempt to ensure the accuracy of all published works. However it cannot be held responsible for opinions expressed or facts supplied herein. Nothing may be reproduced in whole or in part without written permission from the publisher. All rights reserved. The publisher encourages you to submit suggestions. Submitted materials become the property of Horizon Communications, Inc. and will not be returned. 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A PUBLICATION OF DD 2 August 2011 DigitalDealer-magazine.com D IGITAL Dealer TECH NEWS AudienceScience accelerates brand advertising for automotive industry AudienceScience, a global online advertising technology company, announced their unique Automotive Vertical Solution, representing one of several audience segmenting products that deliver industry-specific, tailored approaches to drive marketing success in definitive markets requiring specific solutions. Recognizing the unique digital marketing and data needs of every industry, these vertical solutions apply a strategic audience data-driven approach to drill down into key decision-making processes and consumer experience. The AudienceScience Solution for Automotive will enable auto manufacturers and dealers to extrapolate and share industryspecific successes, sophisticated insights, best practices and specialized reports. It is geared to help industry marketers identify, understand and target crucial “in-market” car shoppers. www.audiencescience.com/ AutoUSA launches ShowPro, an incentive program for dealers proven to turn Internet leads into “shows” AutoUSA announced the launch of ShowPro, powered by HookLogic, an incentive product for auto dealers that is proven to increase incremental sales by turning more Internet leads into “shows.” ShowPro allows dealers to offer a financial incentive to inmarket customers, motivating them to visit the dealer’s showroom. ShowPro also provides dealers with territorial exclusivity, ensuring no competitive dealers will be offering the same incentive products to their independent Internet leads. “ShowPro targets customers with the right message at the right time, driving more store visits and turning a greater percentage of leads into sales,” said Phil DuPree, president of AutoUSA. “It’s a great way for dealers to leverage the value of the leads they’re already receiving.” ShowPro works like this: when a customer is looking at specific inventory on a dealership’s web site, a form appears offering them a selection of gift cards upon a visit to the dealer’s showroom. The incentive will also be offered through the 100+ auto research and DD 4 August 2011 shopping web sites that AutoUSA is partnered with. When a customer enters information and submits a lead through an independent web site, they will be e-mailed a coupon code they can bring to the dealership and present to a salesperson. The salesperson enters the code into a simple web interface and a gift card will be mailed to the customer. www.AutoUSADealers.com Dealer.com expands Vermont office, projects new hires Dealer.com, the global leader in online marketing solutions for the automotive industry, unveiled a 70,000-square foot addition to its current office space, bringing the total office size to 135,000-square feet. The expansion is located adjacent to the company’s current headquarters in Burlington. The new building includes a host of noteworthy features for the company’s growing workforce of about 500 employees. With a spacious open-air environment, warehousestyle high ceilings and an open floor plan, the office will maintain a similar look and feel as the company’s current space. The building opening signifies the continued growth of Dealer.com, which saw a 60 percent revenue increase in 2010, in spite of the recession. “In addition to supporting the economic development of Vermont, this major expansion will provide Dealer.com with the potential to grow our team by nearly 300 people over the next few years, and provide our customers with even more innovative products and quality service,” said Mark Bonfigli, CEO of Dealer.com. “And, in true Dealer.com fashion, we’ve put our own creative touches on the new building, which means bold, unconventional and fun.” www.dealer.com PSCars.com licenses tools to enhance dealer web sites and better showcase stores to sell more effectively to online buyers PSCars.com announced that it is now licensing three core components of its online vehicle shopping technologies to help dealers offer more compelling features for online shoppers on their own dealership web sites. DigitalDealer-magazine.com “When we’ve shared our technologies with dealers, we inevitably hear the same question: ‘Can I get this for my web site?’” says Dan Kodsi, PSCars.com CEO. “Our decision to license these tools provides an answer to meet this market need.” A key component of the market need is dealer realization that their web sites are more informational than transactional in nature— particularly when it comes to selling cars. According to Mike Pitre, dealer principal at Carleton Ford, PSCars.com has taken his site to a whole new level of interaction and the dealership has enjoyed a substantial increase in business; “I’m so pleased that Turbo Marketing Solutions introduced us to PSCars.com. With our new web site and the PSCars.com tools, shoppers are able to research and configure any vehicle they want, negotiate price and terms with us, all without leaving our site; it has opened up doors that were not previously available to us. We are a smaller dealership, selling around 300 new and used vehicles a year. Now, all of a sudden, we have the presence of a giant online; the metropolitan auto buyer views us as big as anyone else and business is booming.” www.pscars.com STAR releases its 2011 XML and DTS repository and transport guidelines Standards for Technology in Automotive Retail (STAR), a global information technology (IT) standards body for retail automotive and related industries, has released a new major version of its transport specifications. The STAR 2011 XML and DTS repository continues to be actively modified and developed by the membership. Enhancements to Business Object Documents (BOD) were made in the areas of service, parts, warranty, and vehicle business transactions. Additionally, two new BODs were implemented, a Customer Information BOD to provide customer information data synchronization between dealers and manufacturers, and a Service Plan Information BOD that provides all available service plans, with prices, for a vehicle. The most relevant modifications were continued to P-DD30 D IGITAL Dealer INTERNET SALES Tom Mohr Seize the Pent-up Demand I t’s been a long hot summer. Especially for Japanese-branded dealers with earthquake-driven inventory constraints that have stunted sales opportunity during some of the most critical months of the year. And all dealers have weathered the effects of a troubled economy. So what’s next? Simple arithmetic may finally be working in the dealer’s favor. Due to the prolonged recession, the average age of vehicles on the road has risen to a staggering 9.9 years. Scrappage rates have exceeded sales rates in recent periods, a trend that obviously can’t continue. And now with four months of strangled inventory driving up prices, consumers have just spent another third of a year largely sitting on the sidelines. All of this can mean only one thing: pent up demand. Barring some unexpected catastrophe, there is every reason to expect that September and October in particular should be strong sales months. The key, of course, is for you to take full advantage of it. So, how do you ensure that when the feeding frenzy begins, they eat at your banquet? It all starts with your lead management process. Leads are the lifeblood of Internet sales. Each lead is precious. And the arrival of a lead is the moment of truth. The consumer behind that lead has sent it to three to four other dealers. You need to have in place a structure, staffing level, technology and plan to ensure the following: • A multi-vehicle price quote sent back to the customer in 10 minutes. • That quote should include both new and used alternatives, with full vehicle information, all updated incentives and the contact information of the salesperson. • The first phone call to the customer, held within 20 minutes of lead arrival (every time). • If the customer is contacted, a thoughtfully scripted call, referencing the price quote and leading towards an appointment. • If the customer is not immediately reached, a 14-day follow-up process, mixing in email and phone follow-up. To reliably deliver this experience, lead after lead, time after time, takes careful planning. If you receive less than 100 leads a month, you need everyone from the receptionist to the GSM in on the minute-by-minute task of achieving these outcomes. In fact, if you have less than 100 leads a month, one of your biggest priorities is to drive up close rate on those leads to north of 10%, so you can afford to buy more leads (either by improved dealer web site SEO, SEM or third party lead buys). Because only after you have leads in the 250+ range are you in a position to reliably deliver on one key piece to the puzzle: the first phone call within 20 minutes. At that level of leads, you can probably hire one or two appointment setters to support a twoperson Internet sales team. It gets better as you grow. A reliable 20 minute phone call is best achieved with a seven day a week, 10 hour a day BDC working in support of an Internet sales team. But, such a team only becomes feasible when lead volume approaches 500 leads a month. The point is this: you need to sell your way to higher lead volume. You need the cash flow from increased sales to pay for lead volume growth, which in turn drives higher sales, which in turn allows you to build out a BDC, which can reliably reach the customer within 20 minutes of lead arrival every time. This is the hard-won virtuous cycle: the more sales you can drive from your leads, the more you can pay for more leads, and the more you’re in a position to convert those additional leads into sales. So, as you prepare to seize your unfair share of the sales in September and October, start with your lead management process. With a powerful process, you will be in position to win big. Tom Mohr is CEO of ResponseLogix, and has worked closely with auto dealers for 25 years. Prior to ResponseLogix, Mohr was president of Knight Ridder Digital, where he was on the board of Cars.com. Tom can be reached at: [email protected]. For more articles, blogs and daily news visit us at www.Dealermagazine.com. DD 6 August 2011 DigitalDealer-magazine.com D IGITAL Dealer Advertising George Nenni QR Codes are Here to Stay I will admit, some of my more progressive colleagues at Dominion recognized the importance of QR codes far earlier than I. Nevertheless, I’ve become an advocate of this remarkable digital marketing tool and how it can help automotive dealers. Why do I find them so remarkable and useful for automotive marketing? Before Quick Response or QR codes, retailers used one-dimensional UPS codes to track merchandising within stores. With the introduction of QR codes, retailers, manufacturers and especially automotive dealers are using two-dimensional bar codes to transmit data, execute trackable calls-toaction and digitally engage consumers. QR codes are able to transmit data or “smart, actionable information” that initiates a digital call to action for the user on the smart phone. With a simple click, QR codes can open a calendar event, call a phone number, launch a web browser and so much more. QR codes can instantly add a digitally engaging element to your direct mail or advertising piece. Lately, I have noticed brilliant marketers using QR codes to initiate calendar events for upcoming dealership grand openings or web events. Best Call George of all, QR codes are 100% tractable calls-toaction. Now what smart marketer wouldn’t love an easy call to action for mobile consumers DD 8 August 2011 that is 100% tractable? What can you do with a QR code? The simple answer is anything. QR codes are only both one-dimensional and two-dimensional barcodes scans increased in late 2010. It is becoming more apparent that the use of QR codes is quickly moving beyond the early adopter phase. Driving the consumer usage of QR codes is the fact that free apps are available, or in some cases pre-installed, on all smart phone devices. How can you engage your car shoppers with QR codes? Some savvy dealers are already maximizing their usage of QR codes throughout their marketing strategy. For example, apply a QR code to a window label to provide detailed information about a used vehicle. Add a QR code to a showroom sign Follow Us on Twitter limited by your marketing imagination. Like I mentioned, they make print pieces, like print advertisements, banners or vehicle brochures, become interactive. With QR codes, your dealership can connect multiple channel touchpoints, like print + mobile + web. Keep in mind that automotive marketers have labeled printed pieces with web site addresses, e-mails and phone numbers for more than 15 years. The QR code simplifies this by eliminating the time-consuming and error-filled task of typing long web address into the little keyboard on a smart phone. Instead, consumers simply click. By customizing each QR code to a specific call to action, dealers can utilize unique web URLs for tracking purposes and return on investment measurements. Typing a long web URL is a thing of the past. Today, we know consumers would not take the time to type www.dominiondealersolutions.com/ junepromotion/serviceflyer, even if it was to receive a truly exceptional promotion. Are QR codes a fad? Compete.com reported in the fall of 2010 that 28% of smart phone users had previously scanned a QR code. With one in four mobile shoppers engaging in the use of QR codes, industry experts predict the adoption rate to continue to climb. Another study by ScanLife stated that DigitalDealer-magazine.com Like Us on Facebook to encourage consumers to “like” you on Facebook or “follow” you on Twitter. Attach a QR code to a print ad for consumers to take advantage of the latest coupon in your service department. Launch a video, share customer reviews, call to schedule a test drive – and the list goes on and on. Once you become aware of these codes, you will be more aware of them in your community. I now seem to see them everywhere. On a recent spring break trip to Washington, DC, I saw more QR codes than I had seen anywhere...on mass transit, buses, subways, even a QR code in the Smithsonian to download an app to help with the museum tour. continued to P-DD27 Content supplied by 360 Marketing Partners DD 10 August 2011 DigitalDealer-magazine.com Content supplied by 360 Marketing Partners DigitalDealer-magazine.com August 2011 DD 11 W E I V E R P K SNEA “Your Best Bet For Success!” 11th Digital Dealer Conference & Exposition Features Leading Automotive Dealers, Industry Experts, Peer Networking, 80+ Workshops, and 90+ Exhibitors October 5-7 in Las Vegas Leading automotive dealers and industry experts on digital technology for automotive dealerships will share their expertise and best practices on the latest digital tools for sales and marketing, fixed operations, F&I, and pre-owned departments at the 11th Digital Dealer Conference & Exposition, October 5-7, at The Mirage in Las Vegas, NV. The Conference features over 80 workshops, over 90 exhibitors, and peer networking roundtables. More than 1,000 dealership owners, general managers, Internet directors, e-commerce managers, BDC managers, CRM managers, pre-owned managers, F&I managers and fixed operations managers attended the 10th Digital Dealer DD 12 August 2011 DigitalDealer-magazine.com Conference in April in Orlando. Even more automotive retail professionals from dealerships nationwide are expected to attend this October – to learn about the latest digital tools, technologies, processes, best practices, applications and solutions to boost sales, improve operations and increase dealership ROI. Learning how to sell and service more vehicles more profitably is the reason over 1,000 dealers and managers will descend upon Las Vegas for the 11th Digital Dealer Conference & Exposition. Attendees can participate in Peer Networking Roundtables with others from similar-sized dealerships and operations to discuss best practices and help solve each others’ greatest challenges. Leading dealers, industry thought leaders, and expert consultants and trainers will cover a compelling range of topics in the 80-plus sessions. Here is just a sampling of the lineup: • Listen Up Kool-Aid Drinkers! How to utilize technology, strategy, structure, and process to increase your ROI. Presenter: Nicki Allen, operations, Classic Chrysler Jeep Dodge Ram Mazda. She is one of the premier new generation dealers. Her social site, Grinding Gears with Nicki, has gained national prominence and she is a mainstay at her Mazda and Chrysler NADA 20 groups. • Your Web Identity is at Risk. Discover the 20 most important ways to protect your dealership’s online identity. Presenters: April Rain is the digital development and training supervisor at Cuneo Advertising. She consults and trains dealerships on sales processes, time management, marketing strategies and technologies implementation. Richard Herod III is GM at the Saint Paul Auto Group. During his 15 years there, his roles have included: sales consultant, general sales manager, business development center manager, Internet director and now general manager. • Helping Dealers Bridge the Gap between Retail and Wholesale Sales. How to maximize the Internet for increased profits and efficiency while minimizing risk. Presenter: Ed Berkowitz is vice president, Open Auction at OPENLANE. He is responsible for driving solutions to improve the online buying and selling experience. • Stand-alone Service Web Sites. Why you need one and how to build one. Presenter: Jeff Clark, DealerOn Inc., VP of Sales & Business Development. He oversees the sales and business development initiatives for DealerOn. • Creating the ‘Apple Store Experience’ in Dealerships. A look at how a technology-enhanced sales process creates an engaging customer experience that makes your dealership unforgettable. Presenters: Jim Hughes, Strategy & Business Development/co-founder of IntellaCar, has been a successful entrepreneur, winning awards and delivering the “wow” for well-known brands for over 30 years. Bruce Polkes, Marketing, Technology & Operations/ co-founder of IntellaCar has a keen sense for technology and over 25 years of world-class marketing experience. • Match Media Spend with Audience Consumption to Increase Returns. Dealers need timely empirical data that shows how people actually consume media today so they can more efficiently allocate marketing dollars and maximize reach and frequency to their target audiences. Presenter: Jim Dykstra – Comcast Spotlight – Automotive Lead. As a third generation automotive industry executive, Dykstra has hands on strategic and tactical experience working for dealerships, manufacturers, and digital auto companies. • Optimize your Digital Marketing Strategy with Call Tracking Analytics. Track your online marketing campaigns with dynamically created phone numbers and determine where to spend your advertising budget. Presenters: Ryan Pryor is director of the Search and Analytics Team at Dealerskins, where he is responsible for managing the SEO/SEM strategy and implementation for Dealerskins’ clients. Joe High is a general manager with Dealerskins, a Dominion Dealer Solutions company. • Merchandizzle. To market your inventory profitably, you’ve got to add more sizzle to the steak, yo! Presenters: Joe Webb is the founder of DealerKnows Consulting, an automotive Internet sales training firm specializing in advancing dealers through both on-site and virtual consulting. Timmy D. James is founder of Tim James Consulting. He is a leading automotive digital marketing expert and a well-respected industry trainer, and the former director of sales with HomeNet Automotive. • Social Service Marketing: The Next Frontier for Driving Retention. Learn how digital and social strategies can integrate with your traditional marketing to retain service customers. Presenter: Gary Kalk is president and CEO of Dealer-FX, a leader in automotive retail marketing, providing consulting services, marketing and brand effectiveness programs, as well as integrated service retention tools to both dealers and OEMs throughout North America. • 288 Mind-blowing Internet Marketing Stats and the Marketing Plan You Can’t Afford Not to Use. Learn what inbound marketing is, how to do it, and why it’s vital for your continued success. Presenter: Chad Polk, CEO of AutoRevo, with over a decade of automotive Internet marketing experience. DigitalDealer-magazine.com August 2011 DD 13 • Double your Internet Department’s Profit in 2012. Online strategies that are proven to sell more cars for higher margins. Presenters: Amir Rezvani oversees the client results team for DealerOn. Rezvani co-founded DealerOn in 2002 with his partners to help auto dealers increase the effectiveness of their online marketing efforts. Jeff Kershner is the director, New Media for the Younger Automotive Group. • Increasing Sales through Database Mining and Equity-based Marketing. A practical, handson session on how dealerships should mine their customer database to drive qualified traffic and increase customer retention, sales, and market share. Presenter: Allen Levenson is VP Sales & Marketing for Prospect Vision, a 1 0-year old company that helps hundreds of dealerships mine their customer database and drive sales and customer retention and whose clients include AutoNation, Penske, and many others. • What Exactly is a Lead Today? Why ‘1.0’ selling is required in a 2.0 world. Presenter: Ken Potter is vice president, Sales, of CarsDirect. com and oversees all automotive dealer products, dealer sales, and dealer support for the leading Internet car buying service. • eBay Motors – Operational Blueprint. eBay Motors will be releasing its new 150-page operational blueprint at Digital Dealer Conference & Exposition. This class will teach dealers how to use the A-Z manual. Presenter: Clayton Stanfield, senior manager of Dealer Training at eBay Motor for four years. He oversees all training and industry outreach programs for eBay Motors. • Social Media ~ Reputation Management and Online Profile Management. Managing one’s online reputation is complex, but essential; learn the ins and outs of this essential aspect of social media marketing. Presenter: Nannette Staropoli, president and CEO of MARKIT Group, a brand marketing firm dedicated to helping companies increase revenue and brand awareness through strategic development and execution of traditional and web based marketing. This is just a small sampling of sessions. You can read more about these and additional presenters and their sessions online at www.DigitalDealerConference.com. What attendees say: Many dealer principals, presidents and vice presidents, and GMs said the 10th Digital Dealer Conference & Exposition was a real eye-opener to all the ways digital technology could help them improve dealership operations and practices. DD 14 August 2011 DigitalDealer-magazine.com Mike Eckler, president, Richmond Car & Truck Center, in Richmond, KY, felt that the conference was “Invaluable in bringing us up to date with e-commerce, CRM, many of our best practices, and meeting folks from across the country with the same issues and desire we have.” “The conference is a good way to keep up with the fast-paced changes in our digital needs,” says Steve Roe, general manager at Roe Motors, in Grants Pass, OR. Todd Matt, dealer, Bonner Springs Ford, in Olathe, KS, stated, “It was a little overwhelming. This was the first one I had attended and I realized I have a lot of work to do in this area. I will be better prepared for the next conference. There was tons of useful information.” Internet directors, BDC managers, and e-commerce directors from all regions of the country were equally enthusiastic. Here’s just a sampling of their comments: Tanisha Hope, Internet/BDC manager, at Massey Yardley Dodge Chrysler Jeep, in Plantation, FL, says, “This conference opened up to us some things we could improve and implement. We did one small implementation when I returned with immediate results. Average BDC sales is 35 per month – and we did 52 sales last month! We have four other things I learned at the conference that we plan to try.” “The Digital Dealer Conference continues to be our dealership group’s university for best practices, new technology and trend tracking,” says Russell Blackstone, e-Commerce Director at Hewlett VW, in Austin, TX. “By meeting our peers at roundtable and networking sessions and attending presentations by the best dealer practitioners in the industry, we can stay current and ahead of our competition. We are also able to save a large amount of time and money by evaluating vendors during the conference. We take this golden opportunity twice a year to sharpen our saw and learn from the very, very best in the business.” From New England to California and everywhere in between, attendees agreed that being exposed to fresh ideas was a universal experience. “I brought back many great ideas to implement,” said Scott Sartorio, e-commerce manager, Fenton Family Dealerships, Swanzey, NH. Greg Coleman, director business development, at the Oxmoor Auto Group in Louisville, KY, agreed, noting that the conference was, “...the best three days any dealership can invest in for a successful year.” “It’s great to get out and meet new people in the industry, share ideas, and learn new ones,” noted Chad Priest, Internet director at Infiniti of Mission Viejo, in Mission Viejo, CA. E-commerce and Internet managers enthusiastically stated that the conference gave them not only fresh ideas and strategies, but very practical sales and marketing tactics to be implemented at their dealerships. John Douglass, e-commerce manager at McGrath Lexus of Chicago, IL said, “It is always refreshing to see the latest trends, technology, and ideas. I sincerely hope to implement the new ideas in the immediate future without too much pushback and most certainly will attend the next conference.” and motivated to take my dealerships’ e-commerce and marketing efforts to the next level.” Robert F. Purdy III, Internet sales director at Jim Burke Automotive Group, in Birmingham, AL, noted: “We always come away with something valuable to the bottom line to implement. Every dealership should take a long hard look at being represented at this conference!” To register for the 11th Digital Dealer Conference & Exposition at The Mirage in Las Vegas, NV, October 5-7, visit: www. DigitalDealerConference.com. Chris K. Bryant, director of e-business at Superior Auto Group, in Conway, AR said the conference was a “great place to ‘borrow’ ideas.” David Maroulis, sales manager, Bob Johnson Chevy, in Rochester, NY, agreed, citing social networking ideas as the best take-aways from the conference. “We learned many fresh ideas that are in the process of being implemented in our dealership. It was a very invaluable experience!” says Laura Polakiewicz, Internet sales manager at Royal Chevrolet, in Bridgewater, NJ. Newcomers to the industry, like Allison Carpio, digital commerce & marketing specialist at Roseville VW, in Roseville, CA, also praised the conference for the fresh ideas and inspiration it offered: “As a marketing professional who is fairly new to the automotive industry, attending the Digital Dealer Conference was one of the most beneficial and educational experiences so far in my current career position. Not only was I able to exchange ideas with bright individuals, but I took away valuable tactics to ensure the success of my dealerships. In fact, we’ve already executed one of these tactics and it’s shown positive results! I left the conference feeling more inspired DigitalDealer-magazine.com August 2011 DD 15 D IGITAL Dealer Digital Marketing Steve Stauning Digital Marketing Independence – Can Dealers do it all Themselves? T he growth of technology and particularly the Internet has made it possible for small and medium-sized businesses (SMBs), like car dealers, to accomplish much of their marketing and advertising without outside assistance. For example, every dealer should be able to edit and update their Google Places page all by themselves. The guy who manages the donut shop up the street can do it, why can’t you? There should be no need to pay someone like me, on a regular basis to manage this very easy, intuitive and infrequent activity. Google and Facebook (and any company wishing to become a scintilla as successful as these online giants), know that in order to get broad adoption of their services by the majority of businesses, they need to make everything mind-numbingly simple or their market penetration (and their revenues) will suffer. Great examples of the do-it-yourself digital marketing trends that actually benefit SMBs are Facebook Ads and Google Boost. While dealers may want help setting up these services initially, they really don’t need anyone outside of their organizations to manage the day-today requirements. But, what about more complex digital marketing tasks or actions where a dealer is at the mercy of a third party? Specifically, what about lead acquisition activities that require dealers to use a third-party company’s products? From advertising on major classified web sites to buying sales leads, there are some activities that (by their very nature) dealers cannot do for themselves. Having to rely on a third party, for some reason, makes many dealers angry. Whether it is the cost (though this seems strange given the more expensive advertising that digital marketing replaces) or just the fact that they cannot generate this traffic on their own, some dealers flat out hate any vendor they “must use.” ‘Dump all the third parties… except me’ Dealers love to hear that they can do this whole Internet thing without AutoTrader. DD 16 August 2011 com, Cars.com or independent Internet leads (AKA: third party leads). To make matters worse, there are popular writers and speakers in the industry that further this passion for self-reliance when they tell dealers that great SEO, SEM and a strong social media strategy is all you need – and dealers eat it up. Unfortunately, for dealers wishing to become 100% self-sufficient, this advice is not only wrong, it’s irresponsible. Not surprisingly, those who spout this babble have something to sell to dealers. Something, they say, that will help dealers eliminate those pesky third parties (except, of course, the third party selling you the one thing you need to get rid of all the others). I’ll write this clearly so no one misunderstands my position: Dealers who want to be successful with their Internet sales efforts cannot do so without casting a very wide net. Among other things, this means you cannot generate enough first-party leads to rid yourself of effective outside sources. Some in-market consumers will never visit AutoTrader or Cars.com, but a whole lot more will never visit your web site, regardless of how much you spend on social media, SEO and SEM. Not buying third-party leads? Your competitors thank you. Moreover, when a dealer refuses to work with any specific lead source, that dealer is giving his competitors an advantage. For example, if a dealer refuses to advertise on a web site that aggregates inventory from many other dealers, that dealer is granting the remaining dealers on the site a competitive advantage by his absence. Regardless of what some of the “experts” say, dealers cannot spend enough money on Google or write enough SEO content to attract the traffic that flows to certain web sites. Sites like Edmunds.com, KBB.com, Cars.com, Autobytel.com, UsedCars.com and hundreds of others all enjoy traffic that will never, ever visit a dealer’s web site. Additionally, even if all in-market consumers visited every available DigitalDealer-magazine.com automotive web site (including yours), there is no guarantee that any one of these sites is going to generate a sales lead from any particular prospect. Only by forgoing your efforts at 100% self-sufficiency and casting the widest net possible can you expect to gain the maximum advantage online. But, um, you sell first-party leads, don’t you? Whenever I am in front of a group of dealers and deliver a strategy that advocates they stop the self-reliance kick, I am generally reminded by at least one person in the crowd that my own business is focused on the concept of driving first-party leads for dealers (SEO, SEM, lead-generating web site parasites, automated specials, etc.), and I am asked questions like “Why are you advocating against the things you sell?” and “Have you changed your beliefs or your product offerings?” The short answer is that I’ve changed neither of these – but I do have a mirror and three sons; and I have to look each one in the face every day. In other words, I would prefer to give sound advice based on what really drives success for dealers, rather than change my message to benefit only my offerings. (There are too many vendors in the automotive space doing that already.) Make no mistake about it, dealers should do everything they can to increase their first-party leads. In fact, this should be a primary goal for the lead acquisition side of your business. But, and here’s the kicker, you cannot stop there if you want to be truly successful. (Regardless of what self-serving message some search engine optimization company is telling you.) This reminds me of two recent examples I encountered in the market recently. The ‘drop third parties and use the savings to advertise with us’ sales pitch continued to P-DD29 D IGITAL Dealer WEB SITES Ryan Pryor Content Strategy and SEO: The ‘King’ Needs a Plan I n the “Content is King and the Search Engine Knows It” article in the July 2011 issue of Digital Dealer magazine, Joe High discussed the importance of having solid content on your web site, and the variety of ways that it helps your dealership, your customers, and the search engines. Content is so much more than simply the words on a page, or even the images. It’s about the message you present as a whole. And as far as customers and search engines are concerned, the entirety of your content matters. So, let’s build on the “content is king” concept and consider engaging with a comprehensive content strategy. Did you plan on being in the publication business? Probably not. But now you are. So, what is content? Joe touched on this in his article. Content is everything containing your brand, offline and online, but let’s just stick with the web site portion for now. There are so many elements of content on your web site. In fact, it’s all content. It’s not just the words, it’s the buttons, the ads, the inventory, the “who we are” sections, the community pages, the blog pages, the links (inbound and outbound), the meta copy (and other supporting code), the sitemap, the graphics, the navigation, and the part most people call “content” - the page copy. A solid content strategy should include: • A comprehensive list of all of your content locations • An assignment of responsibilities for creating and maintaining content • A schedule for content review and update When it’s time to make an update to your web site, you need to carefully consider several DD 18 August 2011 key factors. How will the changes affect the user’s experience? Can users easily find what they are looking for on your site and in your new or used inventory? Did you update your web site coupons and specials to reflect those running on other online sites? For example, let’s say you ran a special only on Facebook and advertised it on your web site. When you pulled the special off of your Facebook page, did you remember to also remove the link on your web site? Forgetting to update an advertisement’s link to your site can mean people end up on a page full of irrelevant or out-of-date information; and that can mean frustrated potential customers. Those are the ones you’ll lose fast. You may contact your web site provider when it’s time to make updates to your web site, but you’ll need to keep all the other online media in mind at all times, as well. One medium should not be modified without consideration to all the other media. Someone in the dealership, perhaps your Internet sales manager or e-commerce director, needs to be responsible for the maintenance and oversight of all of your content. This content comprises your complete automotive digital marketing strategy and therefore can’t be taken seriously enough. To keep up with the speed of the digital world, you have to have a plan. Not just a weekly or monthly plan, but a far stretching and flexible one. Something agreed upon by everyone involved with your content that identifies where areas and types of content exist, what they contain, who’s responsible for them, and when they need to be updated or removed, etc. That means you need your Internet sales directors, general managers, dealer principal, office personnel, marketing firms, advertising providers, web site providers, and inventory streams all on the same page. You may not readily recognize that as soon as your web site goes live, it’s a living, breathing thing that has to be fed. But, as one of the nation’s top content strategists, Kristina Halvorson, put it, “The moment you launch a DigitalDealer-magazine.com web site, you’re a publisher. The moment you begin a blog, send an e-mail, participate in social media, build a widget, even show up in search engine results... you’re a publisher,” (Content Strategy for the Web, p.21). Did you plan on being in the publication business? Probably not. But now you are. Much like traditional print or television media, there are web site platforms from which to promote your vehicles, communicate with your community, voice your opinions and concerns, and put your overall brand message out into the public eye. The only differences between now and the days of print are that it all occurs a lot faster, and across a lot more locations. As Joe put it, you should make sure you’re educating, engaging, and updating your content, to get the most out of it. Now that you’ve got a solid content strategy in place, you are set to serve your customers, pique search engine interest, and present your brand in all places. Ryan Pryor is director of the search and analytics team at Dealerskins where he is responsible for managing the SEO/SEM strategy and implementation for Dealerskins’ customers. He has experience managing organic and paid search and analytics for a variety of industries including automotive web sites, home and automobile warranties, restaurant supply and healthcare products, as well as a number of local and national clients and lead generation companies. You can reach Ryan at: rpryor@ dealer-communications.com. For more articles, blogs and daily news visit us at www.Dealermagazine.com. Participate in the Digital Dealer Excellence Awards Competition! ® Dealer Communications, the leading multi-media information source for the automotive retail industry, is co-sponsoring a new award series – The Digital Dealer® Excellence Awards -- to recognize automotive dealers, managers and their web site providers for exceptional performance of the web sites they design, host, and support. Recognition will be based upon independent, unbiased analytics of dealers’ web sites performed by Dataium, Inc., co-sponsor of the awards and the leading data utility company providing business intelligence through the aggregation and analysis of consumer activity across the Internet. There will be awards for the best performance in each of the following 12 categories, as well as the top award for best overall performance among all categories: • Best Performance: Unique Visitor to Auto Shopper Conversion • Best Performance: Leads per Auto Shopper • Best Performance: Leads per Inventory Search • Best Performance: VINS Searched per Auto Shopper • Best Performance: % of Auto Shoppers Returning (% of Be Backs) • Best Performance: Average Time on Site per Auto Shopper • Best Performance: Lowest User Bounce Rate • Best Performance: Greatest Share of Leads among Web Site Visitors • Best Performance: Leads per Page Views • Best Performance: Lowest Time to Lead Submission • Best Performance: Lead Volume • Best Performance: Inventory Search Volume Dealer Communications invites automotive dealers nationwide to enter the competition by registering their web sites at www.visicogn.com/dd. There is no entry fee and registration is quick and easy. Each dealership that enters the competition will receive Dataium’s VisiCogn® INSITE application (Basic version) at NO COST for one year -- a $1,200 value. Dataium will automatically analyze data from this application in order to evaluate each dealer’s web site performance. For more information about INSITE visit www.visicogn.com. Dataium, LLC is the largest aggregator of Internet automotive shopping activity. The company collects, analyzes, and indexes 10s of millions of online automotive shopping events each week. The company supports cutting edge data collection and reporting technology; VisiCogn® Collection Utility, VisiCogn® Knowledge Center, VisiCogn® INSITE, and is also known for its ASI index. For more information, visit www.dataium.com, email: [email protected], or call 877-896-DATA (3282). This competition is the first of its kind and is completely objective based on statistics. The first award recipients will be announced at the 11th Digital Dealer Conference & Exposition in October, and after that, awards will be announced twice annually at the conference each spring and fall. COVER STORY Dino Flora Bob Glasser BOB GLASSER Internet Manager DINO FLORA Support Services Manager JM Lexus What truly distinguishes JM Lexus? • The nine-hole putting green for customers on the rooftop of the service center? • The fact that JM Lexus is the largest volume Lexus dealer in the world, and has been since 1992? • That its parent company, JM Family Enterprises, Inc., ranks 16th on FORTUNE magazine’s list of the “100 Best Companies to Work For” in America? • That JM Lexus is within the top 25 dealerships nationwide in Internet sales, with 2,223 Internet sales units in 2010? •O r, all of the above? Bob Glasser, Internet manager, and Dino Flora, support services manager, say that’s all good, but what really distinguishes the dealership is the entire “JM Lexus experience” its customers enjoy. Bob and Dino described that unique experience and outlined what it takes to deliver it in a recent interview with Digital Dealer magazine. DD 20 August 2011 DigitalDealer-magazine.com First of all, Bob and Dino, how did each of you get into the car business? Bob: I had been a leader with a 100-year-old home improvement company that was swallowed up by another company and I wasn’t needed after a while. My efforts to find work in that area ran into a wall. So, I responded to newspaper ad for someone who had attributes I thought I had and the job turned out to be a car salesman’s. It wasn’t JM Lexus; I wish it had been. It was a Lincoln Mercury store in South Dade County. I was there until Hurricane Andrew blew it away in 1992. Then I switched to a nearby Mercury dealer, was there for a year, and then got a call from the original store: They were going to rebuild. ‘Did I want to come back as a manager?’ I did. After two years, I was recruited back to the store I had gravitated to after the storm. From there, I retired. After a year and a half of retirement, I was so sick of being retired, I went back to work at a competing local Lexus store, got involved in their Internet activities and then was recruited by JM Lexus in 2006. I’ve been here four and a half years as Internet director. We have two Internet departments: current staffing is nine for the new car Internet sales department and nine for the pre-owned. Dino: I’m a computer guy. I had a web posting and design company and managed a boat financing web site. I did well with that, but in 2001, with the stock market bubble, things went south for me. I was reading Fortune magazine in May 2003 and saw that JM Family was one of the best places to work in South Florida. So I jumped on Monster. com and saw JM Family had a job opening. I applied and was hired in June 2003 as desktop support guy for all the computer systems and I’ve been here ever since. In 2007, I became the support services manager. I have a staff of four IT people – programmers, project managers and desktop support people. Let’s talk about the unique JM Lexus experience. Bob: Our customers expect the best, so we are dedicated to providing that across the board, but we also like to go above and beyond that with unexpected amenities. For instance, we recently finished building a nine-hole putting green on the top of the service center. Jim Dunn, our vice president and general manager, came up with the idea of the putting green and our Fixed Operations Director Brad Schafer led the effort to get it done. Our customers who are golf enthusiasts can now improve their game while getting their cars serviced. Another amenity we offer – if our customers want to work instead of relaxing while they are here – is the availability of PCs and iPads in our guest lounge. Dino: For service customers who just want to kick back and relax, we also offer massage chairs, sandwiches, and coffee and danish. For customers buying a car who prefer to be in and out of the dealership quickly, we have a “Ready Upon Arrival Program” that allows our customers to hone in on a car on the web, call and talk to a sales rep, negotiate a deal and make an appointment for delivery. Much of the detail work is done over the phone and via fax and we guarantee that when they come to the dealership, they will only need to be here 30 minutes to buy the car and drive off with it. (Incidentally, JM Lexus also treats its associates to a unique workplace experience – providing on-site medical services, a gym, a hair salon, a massage parlor, and two cafeterias!) Bob: One of the things we do best to provide a superior experience for our customers is respond to leads quickly and effectively. We cater to our customers; product specialists – who fully understand all our products, who can answer all questions knowledgably, and who can tell the customer what is in stock in the store – respond to all our leads. Whether it be a walk-in customer, a web site customer – what we call the virtual front door customer – or a phone customer, we want our customers to know that their needs are our first priority. Dino: That’s one of the reasons we’re getting our arms wrapped around mobile shopping for our customers – to provide the very latest in customer convenience. If you pull up www.jm-lexus.com on your phone, it redirects you to our mobile friendly web site. We’re just finishing up our iPhone, Blackberry and Android apps. There are a lot of companies that you can buy a canned app from, but we wanted to make sure we were providing an app worthy of being on our customers’ phones, so we decided to create our own iPhone app. It ended up being very cost-effective. Now, our customers and prospects can search our inventory, look at basic information about any of our departments – including our lifetime warranty and tire programs – and schedule service with us all on their phones. Then they can call on direct numbers to any one of our departments. It’s extremely convenient. magazines. I attend meetings among other Lexus Internet people. We exchange a lot of notes. Dino: I also attend a ton of podcasts and participate in many forums, some automotive social media, and I read tons of newsletters. How do you get your Internet sales leads? Bob: We have a number of different web sites, including our own, that host our preowned and new car inventory. We get 50% of our leads from our JM Lexus web site, another 15% from Cars.com, and another 12 % from AutoTrader.com. The rest come from other recognized third party lead providers: Kelley Blue Book, Vehix, Dealix, Carsoup.com, Automotive.com, MotorTrend.com, eBay – so there’s quite a variety of sources. And, we get some preowned referrals from the manufacturer. We also have Black Book online on our web site as a courtesy to our customers, so they can get an idea about what their car is worth, and we get leads from that as well. We also get phone leads and we get Live Chat off of Cars.com. All these leads feed into our CRM, VinSolutions. The Internet Lead Management (ILM) piece of our VinSolutions CRM is used by all our Internet salespeople. What is your biggest challenge? Bob: Internet sales is continuously changing. You never get there. There are always new things to try: new sources for leads, new spins on processes, new technology that permits different approaches. It never stands still and it’s never dull. It’s a continuous learning process. How do you handle distribution of your sales leads? Dino: Anybody that’s ready to take a lead from our CRM takes it on a first come, first serve basis. We don’t use the round-robin approach. If we were to round-robin it off sequentially to the next salesperson, he/she might not be ready to take the lead. Once a saleperson takes a lead, that triggers a scheduled follow-up. So, we can be sure the customer is taken care of as fast as possible. Bob and I have developed a formalized schedule that we think is the most effective way to follow up with customers to make sure they get the proper information based on what they are looking for. How do you keep up with that? Bob: Both Dino and I attend the Digital Dealer Conferences, and we read many publications, both inside and outside the industry, including Dealer and Digital Dealer Bob: Many lead providers send the lead to multiple dealers, so our approach is when a lead comes in, we’ve entered a competition and the clock starts ticking. We want to be the first to respond, with the best response. DigitalDealer-magazine.com August 2011 DD 21 appropriate notes go into the system and either an e-mail or call occurs daily until contact is made. How many days do you follow up? Bob: We go out 120 days because 65% of our new car sales business is leasing. A lot of our customers start getting notification anywhere from three to six months prior to their lease being due. When they first get that notification, they jump on the Internet, start looking at cars and maybe fill out an e-mail to get information. Then they sit on it, until their car lease is actually due. How is your CRM working for you? The dealership boasts a nine-hole putting green on the Bob: VinSolutions does top of the service center. “Our customers who are golf a great job for us with enthusiasts can now improve their game while getting the Internet follow-up their cars serviced,” says Glasser. process and schedules. It also allows us to do other There are no auto responders in our things in-house that we process. Whoever claims the lead, sends the traditionally used to have to outsource. appropriate response – an e-mail, saying: I’ll call. Then, they pick up the phone and make For instance, we’re taking pictures of our the call. own cars now. We used to outsource that for both new and used cars. We also used to Our average response time –with an e-mail outsource the lease termination process. Now, or phone call – is under 10 minutes. With our with VinSolutions, we do that in-house too response e-mail, the customer gets a virtual and that saves us money. interactive brochure in the form of a link and while they are looking at it, their phone How do you handle SEM and SEO? Dino: Cobalt (now owned by ADP) is our will ring and it will be one of my sales reps Lexus-provided web site company. Cobalt talking to them. manages most of the SEM for us and also Dino: Any time a lead comes in and it isn’t does some SEO. picked up within 30 minutes, it is open to any department. For instance, if a lead comes We also do a lot of the SEO in-house. It’s into the new car department and no one all about good content. If you have that, you’ll can take it for 30 minutes, it can be taken get a lot of clicks. That’s where we do our best by someone in the used car department and on our Lexus web site. vice versa. We’re also increasing our SEO by pushing When we first contact a lead, we set up the out custom-made videos. We have a couple next contact – whether it’s going to be one of college interns that help create “how to” day, two days, or three days and the CRM videos. We also do the standard photowill tickle the salesperson at that point. If stitched videos with voiceover to promote no contact is made within that time, then all our vehicles. When these videos are tagged DD 22 August 2011 DigitalDealer-magazine.com right and are of good quality, they show up in searches. We have a YouTube.com Channel and we are also looking at video syndication with TubeMogul, which will provide us great SEO value. Bob: We also rely heavily on PR to increase our SEO. We really benefit from the services of two public relations professionals – Christie Caliendo and Michael Esposito – and their tech support team from our parent company, JM Family. They write many of our press releases and their hard work increases our SEO. In the past, we only did press releases on traditional, hard-core news and sent those to the business wires. Now we find softer news – such as the dealership’s charity work, or our achievements in making the dealership an environmentally friendly business operation, or our very latest customer amenities – and we work those into press releases, so we can get our name out there as much as possible. Dino: We post these press releases on a lot of free online PR sites and we make sure we work the key words and meta-tags into the releases that will help us with SEO. The Internet has allowed us to maximize the impact of this type of soft news. For instance, we just put up a nine-hole putting green on what had been dead space on the roof that covers up the service drive. We had the grand opening in March and had Channel 7 news here and we got a lot of great press and that is helping with SEO. How do you use social media and has that affected your SEO? Bob: We have a Facebook Fan Page where we post information about our charity work and the events we host every weekend at the dealership, and that helps our SEO. We use GOSO, a social media brand management platform, to help us create a strategy to manage not only Facebook, but YouTube.com and Twitter as well, and we use GOSO’s Buzz Monitor tool to monitor our results. It’s all about creating a buzz online. Dino: We are finding that having a strong social media presence is starting to very favorably impact SEO on Google and Bing. Let’s say, you and I are friends on Twitter and Facebook. If I buy a car at JM Lexus and tweet about the car or the dealership, or I share that information on Facebook, then you search on Google or Bing for that type of car or our dealership, Google and Bing will show you that your friend just posted this tweet about JM Lexus. Monitor to monitor what people are saying about us on the Internet. And, people who “like” us on our Facebook Fan Page and post about us are starting to have an impact on SEO. We are trying to get those people who “like” us to also post about JM Lexus on their own Facebook and Twitter pages. Bob: Many automotive web sites, like Cars. com, AutoTrader.com, etc., are also getting into the reputation business, setting up tabs on their web sites where consumers can submit reviews as they do on DealerRater. com. So, it’s come full circle: the site the consumer started their search on is where they can now come back and report on their experience. When a customer buys a car, do you ask them immediately to write about their experiences online? Dino: We haven’t gone that far yet. Right now we’re looking into strategies around how to do that. For instance, we’re looking at an iPad app that allows people to take a survey that is formatted like a golf scorecard. At the end of the survey, there’s a path for them to post or tweet about their experience at our service center. We’re hoping that the customers using our courtesy iPads in our guest lounge will take the survey and then use this app to post or tweet favorably. Overall, how do you handle online reputation management? Bob: We are on DealerRater.com and we’ve learned how to manage our presence there. We stand pretty tall compared to other Lexus dealers in our area. We have 139 reviews and we’re rated overall 4.9 out of a maximum of 5 for customer service, quality of work, friendliness, overall experience and price. Dino: As part of our scheduled CRM follow-up, we send sold customers an e-mail welcoming them to the JM Lexus family and saying we hope that if they enjoyed their experience that they’ll share that on DealerRater.com. So we get a lot of people posting to DealerRater.com. There are so many different places that people can post about JM Lexus that it’s impossible to actively monitor them by going from site to site. You have to set up some tools to do that. So, we use Google Alerts, SocialMention Alerts, and GOSO’s Buzz If we find anyone who hasn’t had a great experience here, we respond to them. If it was a sales or service or body shop issue, we’ll go to that manager and show them what was written and have them write a response. Dino: Actually, all of those reviews – whether it’s DealerRater.com, Edmunds. com, Yahoo, Yelp, etc., are all being pulled into Google Places, which is also something that does really well for us. We get a lot of traffic out of Google Places. How are you optimizing your exposure with Google Places? Dino: Most of the time when someone goes to Google Places, it’s to get directions to JM Lexus. I have optimized our description, tags, photos, and videos, and that has done wonders. For instance, I changed one of the phone numbers once for the pre-owned store and the person who answers that number called me a half hour later, asking why she was suddenly getting “40 million phone calls.” So, it works. A lot of people are using Google Places on their phones. They’ll go to the map program, put in JM Lexus and call the number that comes up straight from there. So it’s important to pay attention to Google Places. How are all these online marketing efforts paying off in terms of the dealership’s bottom line? Bob: For 2010, we were in the top 25 dealerships nationwide for Internet Sales. Our new and used Internet Sales Units were 2,223. That’s a 527-unit increase over 2009. Of that number -- 2,223 – approximately 65% represents new cars and 35% used cars. Dino: Our Internet sales leads to sales conversion ratio was in the low 20% for 2010. We are typically in the high teens. JM Lexus has been the number one volume Lexus dealer in the world since 1992. Bob: JM Lexus a very exciting place to work. I commute 62 miles round trip to each day just to work here. I’ve worked in many car stores and there isn’t another one like this. It’s a true family. I can’t wait to get to work in the morning. If someone looked at our operation, what they would see is everyone is a team player. Dino and I work closely together. No one individual is responsible for our success – everyone at the dealership contributes to achieving the common good. Dino: I feel the same way. My typical day here is about squeezing 12 to 14 hours of work into eight or nine hours. It’s hectic, but I love to do it. It’s the culture here. I can stand up and be really proud of being on staff here. Bob: We are all proud of our teamwork at the dealership. We’re proud of the charity work the dealership has done in our community, and we are particularly proud of being awarded the 2008 Broward County Commissioners’ Emerald Award Certificate for our environmental efforts. In that year, the dealership recycled: 50,040 pounds of shredded paper; 303,360 pounds of used tires; 64,623 pounds of miscellaneous metals; 41,980 pounds of aluminum, cardboard, glass and plastic; 2,124 pounds of electronic waste; 60,206 gallons of used oil; 3,429 lead-acid batteries; and 6,425 pounds of lead wheel weights. But most of all, we are proud of giving our customers the highest level of service. Dino: We’ve been a Lexus Elite dealer since 1995 and that is Lexus’ highest standard for customer service and satisfaction. Bob and Dino: We never rest on our laurels. We’re always looking for ways to do it better. [email protected] [email protected] DigitalDealer-magazine.com August 2011 DD 23 D IGITAL Dealer VENDOR PROFILE Not Just Dealer Chat: Contact At Once! Provides Instant Engagement…Everywhere Car Shoppers Browse When visitors to Kuni BMW’s web site began clicking on the dealership’s chat invites in 2010, many shoppers were surprised at what they found. The replies weren’t from computer-generated messages with no one behind them. Or, even from anonymous call-center employees who knew nothing of Kuni BMW’s inventory. Rather, the replies came—instantly—from the actual Beaverton, OR sales associates pictured in the pop-up invitations. “Our customers were like, ‘Oh, you’re actually there,” says Jole McMurdie, Kuni BMW’s e-commerce director. “They were pleasantly surprised, and I could see why. When I click on my bank’s online chat invitations, which has some model pictured, I often don’t get a reply. With Contact At Once!, our customers were getting immediate interaction with real people—without exposing their personal information.” • It had to be really easy to set up and use, as associates didn’t want to waste time learning new technologies. • It had to be cost effective, as the tighter market was forcing more due diligence on marketing costs. DD 24 August 2011 DigitalDealer-magazine.com • It had to increase lead volume and offer measurable chat-related results. McMurdie came across several online chat providers in her search, but she says Contact At Once! was not only the easiest to use, and cost substantially less than what Kuni BMW was paying for advertising, it also was the only solution compatible with third-party sites. That meant salespeople could engage shoppers looking at Kuni BMW vehicles on Cars.com, CarsDirect.com, CarSoup.com, Craigslist and Facebook. The following year, Contact At Once! became the sole chat provider for AutoTrader.com, which attracts more than 15 million unique visitors every month. For someone in charge of managing a dealer’s web site, McMurdie says she also found value in Contact At Once!’s analytics tool, which automatically tracks all chat-related metrics. In addition, her service and parts department was interested in Contact At Once!’s ability to help existing customers get answers to quick questions without having to call or come in. “Now, there are so many ways you can connect with people in addition to phone, e-mail and text,” McMurdie says. “We just wanted With the help of John Hanger, now CEO, Hayes developed the Contact At Once! technology, applied for a patent for the real-time presence feature, and reached out to auto manufacturers and online automotive classified providers. Then came evangelizing the benefits of chat. With most online shoppers performing research at work, Hanger says, dealers were missing key engagement opportunities because these potential customers were unable to talk on the phone during job hours. Chat, he explains, started offering dealers a more discreet way to build rapport with these prospects without them getting turned off by filling out intrusive forms or picking up phones. Then, the economic downturn hit. Hanger says the more challenging marketplace encouraged dealers to look even more seriously at chat, as they were forced to make changes to their marketing strategies. Making the case for Contact At Once! even stronger was its unique third-party compatibility. In March, Contact At Once! became the chat provider for AutoTrader.com. When an AutoTrader user is looking at a car being sold by a dealership connected with Contact At Once!, a chat window pops up. Only available associates are shown, allowing for instant engagement. to be as accessible as we possibly could. Now, we’re discovering that customers who are engaged with us early on the buying process are substantially more apt to take the trip to our showroom floor.” Bringing online chat to new levels Even when Atlanta-based Contact At Once! was established in 2005, chat was hardly a novel technology. It had been mainstream since at least AOL’s dominance in the mid 1990s. But what was novel was what Contact At Once! co-founder Marc F. Hayes did with chat for the auto industry. Hayes, now executive vice president, who left an 18-year career at CEO John Hanger, whose 20 years of technology leadership IT consultancy Accenture as a CRM expert to start Contact At Once!, spans companies including Flamenco Networks, Atlas Commerce, Mercator and SCT/Adage Systems. saw four trends that paved the way for the industry’s first complete auto-dealer-chat solution: “Other chat solutions can work on dealerships’ web sites but are • More than 90 percent of car buyers started the purchase process with a visit to a third-party auto site, and yet they weren’t being incompatible with classified sites such as Cars.com and AutoTrader. com, where most shoppers visit first,” Hanger says. “We’re getting engaged. • While online chat did exist for sales, it was mostly dedicated to dealers in front of anyone looking at their inventory, including the most popular web sites where shoppers commonly start their searches, prevent shopping-cart desertion. • Very few auto dealers had chat on their web sites, and it was with just one easy-to-use chat solution.” operated by outsourced call centers—not the dealers themselves. “Chat helps dealers sell more cars even though few have dedicated • Existing chat solutions did not offer the ability to determine staff to answer the chats, thanks to the presence-aware features of our whether a particular person was actually there. service. Some of our dealers really wanted to maximize the benefits, DigitalDealer-magazine.com August 2011 DD 25 D IGITAL Dealer VENDOR PROFILE 16.8 percent of dealers evangelized, 83.2 percent to go Contact At Once!’s biggest challenge is getting dealers to embrace new technologies. However, due to the company’s recent integration with AutoTrader.com, experts see more aggressive adoption of dealer chat in the near future. “Given AutoTrader.com’s status as one of the most popular automotive websites, we believe this move will likely accelerate overall dealer chat adoption,” DealerChatMarketShare.com says. “After all—if a dealer is using chat to handle customer inquiries from sites like AutoTrader.com, why not begin using chat on one’s own web site as well?” The Contact At Once! dealer interface offers intuitive chat analysis. though.” Hanger says. That is why the company began offering “rollover” functionality where fully-trained call-center employees in Houston—not India or the Phillipines—answer inquiries during off or busy hours. “Most of our competition outsources all interaction,” Hanger says. “We offer automatic connectivity with dealers and outsourced interaction.” But having full connectivity in the modern world mandates mobility, Hanger says. In addition to building chat capability for common smartphones, Contact At Once!’s iPad app, introduced in 2010, offered dealers the ability to engage prospects in real-time chat, map their locations, see which Google search terms were used, and view relevant Carfax histories—in the office, or on the go. With the combination of market conditions and technological advances, industry-wide adoption of chat increased. DD 26 August 2011 DigitalDealer-magazine.com To help make this adoption even easier, the company plans ongoing technology upgrades, including building out its mobile offerings with more apps on different platforms. The company also plans on further touting the benefits of chat. Sometimes, however, the data speaks for itself: • Industry-wide, consumer-to-dealer chat conversions skyrocketed to 1.9 million in 2010, according to internal data. • Typical Contact At Once! customers interact with at least 25 percent more shoppers daily. • Typical customers see 50 percent of chats resulting in received contact information. • Typical dealers experience 20 percent to 25 percent close rates with chat, which is similar to close rates for phone leads. Sometimes, Contact At Once! reps only have to get one concept across to a dealer. “One thing dealers often ask us is, ‘It only costs me $199 a month to get my face and name to appear on every listing on all these web sites, and all I have to do is be accessible?’ ” Hanger says. “After that, we often don’t have to say another word.” To learn more, visit www.autodealerchat.com or www.contactatonce.com. Advertising, Nenni, continued from P-DD8 The QR code is hard to beat. It takes mere seconds to scan, yet saves an enormous amount of time and keystrokes for the user. I now carry a QR code of my contact information, so fellow smart phone users can simply scan the card and instantly have my contact information in their phone. I’ve been amazed at the recent proliferation of QR codes in the Sunday circular; typically with calls to action such as discount offers and sweepstakes. I even saw a picture of Danica Patrick’s NASCAR racecar with a QR code on the hood! As I mentioned, the possibilities with QR codes are limitless. Start test driving your dealership’s use of QR codes today. I can’t wait to hear your results. Feel free to contact me with your ideas and unique applications. I promise you’ll begin to see results immediately. With QR codes, your dealership can connect multiple channel touchpoints, like print + mobile + web. George Nenni is the vice president and general manager of the website and inventory divisions of Dominion Dealer Solutions. George began his automotive career with Dealer Specialties, a company of Dominion Dealer Solutions in 1993. Over the years, he held every job in that company, from photographer to graphic designer and sales to general manager, before moving up to Dominion Dealer Solutions. George’s tenacity and dedication ensured that Dealer Specialties would evolve into a national software and services oriented organization. Today, George's work at Dominion Dealer Solutions includes Dealer Specialties, Dealerskins, Cross-Sell, DataOne, Datacube and SelectQu. He continues to integrate and deliver powerful technologies and services for the automotive industry. You can reach George at: [email protected]. For more articles, blogs and daily news visit us at www.Dealermagazine.com. DigitalDealer-magazine.com August 2011 DD 27 D IGITAL Dealer BUSINESS DEVELOPMENT Glynn Rodean Why and How to Expand your BDC/Internet Sales Department’s Profitability O ver the last few years, BDCs went from absolutely “nailing it” to becoming a ghost town or shutting down. Might I suggest several significant reasons for re-opening and/or expanding your BDC? First, let’s abandon the stereotype of a BDC just being a room of people making phone calls and leaving voicemails. Obviously, a BDC is much more than that; it must be efficient, prepared and progressive. What I mean by progressive is, it must include real live chat with a professional yet non-confrontational business card drop down and friendly, anonymous greeting. Required fields are a huge turn off. Just think for a moment of the fact that the average American has four or more e-mail addresses. Which do you think they give us? Statistics show that mid to late morning and early afternoon are the most intensive periods of live chat traffic. Why? Because they are at work! They can look as though they are working, typing away while we set appointments, capture all necessary data and differentiate ourselves. They don’t want to or can’t call or send e-mails from work, but they can appear busy, while completely captivated by our conversations. When, not if, we break through the anonymity, we must make note of essential situational needs analysis and rapport based observations. To include, but not be limited to the customer’s personality type, smart phone or cell phone; etc. So we are consistent in our common communication. The use of smart phones is indispensible for the most successful centralized, virtual and hybrid BDCs. How quickly do you respond to a text vs. an e-mail? Quickly, right? So do prospective customers. So, with proper training, your people can get their attention by sending a picture of the representative or manager they are to see. Sending them a photo will lower their anxiety and raise your appointment to show ratio by giving them a (smiling) face with a name, the easiest directions and their DD 28 August 2011 confirmation number and time. Why a confirmation number? To activate it with their driver’s license upon arrival, meet managers early and give the rep time to prepare for the demo. This ensures presentations lead to demos 87% more often. Remember, the number one fear in our business is pulling up to group of sales reps ready to pounce. Having an appointment with someone specific gives them a feeling of importance and “protection” from the “door birds.” Suggestions: Train communication, influence, persuasion and selling skills, not just scripts or rebuttals. Answer your active live chat in five seconds or less. Respond to e-mails sensibly in five minutes or less and call them! I refer to this as my “Self Barometer” technique. By this I mean gauge each type of e-mail, voicemail, text, etc., by how we would respond. We then have an idea of how they will resonate with our customers. If you call for information having a preconceived notion of an industry such as ours, how do you feel when you are met with generic, scripted and insincere sounding responses? Do you read e-mails that are long or “put them off until later?” How do you feel when your questions are deflected, or even worse, when your call is not returned? Reliance on scripts, just marking activities off as complete or using canned, bogus and irrelevant e-mails is seen in a different light. Why? Because people forget half of what we say or do, but they never forget how we made them feel! • Appointment blinders: with business development appointments that show, sell and refer, it is all about selling the show! Sell the show with your differentiating “Information Day,” the sizzle and the subconscious techniques that have people commit to show. This is done by presenting a hypothetical scenario or question without the old school front lobe “yes” questions. Make them think about it, answer and watch the follow through increase every time they do it better. • Specific time appointments, not just: 15/45 after the hour. If someone is asking for 4:00, try “I’m checking my manager’s appointment schedule and he/she has a 4:10 available.” Have them write it down and then confirm via text. They may forget to bring the confirmation number they wrote down, but they are most likely to have their cell phone with them. • A rating system and protection period: Have a customer care “advocate” they don’t meet in person and follow up with your customers. We can drive “be backs,” gain referrals, ensure service and have a preview of your CSI. Start with the last 90 days and go back from there. Pay plans are different, but I urge you to consider paying for production of shows. That means kept appointments and not paying business development or customer care representatives on sales; they will not cherry pick and will shed light their strongest and weakest points. In the end, it’s your choice. Here are some things I strongly suggest to improve your BDC: Glynn Rodean is president and CEO of New Vision Sales Inc. [email protected]. • Headsets to avoid workers comp issues, listen in (live) features and the same 100% TO policy as on the sales floor. The worst conversation we can have when developing business is “Why they didn’t schedule an appointment!” This goes for sales, service, call backs, leads and follow up. For more articles, blogs and daily news visit us at www.Dealermagazine.com. DigitalDealer-magazine.com Digital Marketing, Stauning, continued from P-DD16 I saw a presentation provided to a client from a never-before-heard-of pay-per-click company (that will remain nameless) detailing why you should spend $6,000 per month with them instead of AutoTrader or Cars.com. While their desire to capture the dealers’ dollars is understandable, and the results they claim are admirable, their approach is maddening. Why must everything be an “either/or” proposition? Why must every new digital marketing source try to poach existing digital marketing dollars? (Especially when the new vendor has absolutely no idea whether the older sources provide ROI or not.) In the study David Kain and I released in April, we detailed how the most successful Internet dealers cast a very wide net by employing the maximum number of digital marketing sources. The bottom line is that you cannot reach the pinnacle of your Internet sales potential by generating 100% of your sales leads by yourself (or even with the help of this brand new PPC company). My advice to the client who received this pitch and anyone sitting in front of a new digital marketing source who tells you to dump Cars.com, AutoTrader or other thirdparty provider in favor of their product (before they even know if these existing sources are providing critical branding and/or driving sales for you) is to keep them out of your wallet and show them the door. The “what dealers don’t know won’t hurt them” approach In the second example, I was contacted by a company providing SEO services to a singlepoint dealer for – brace yourself – $7,000 per month. This company bragged to me that the customer was so happy with their services that they even took them golfing when they visited with the dealer. Ouch! I took this to mean that the dealer is paying more than I could ever imagine for SEO and also paying for golf? Wow, that must be some great SEO. I won’t comment on the quality of the services this company is providing, because SEO can be quite subjective, but I will say that there is a price for “perfect SEO,” and for virtually every dealer out there, that price is too high. Even if you could be on the top for all relevant keywords, this does not mean you will get all of the clicks. In fact, in a 2010 study from the data analytics company Chitika, being in the top spot on Google only got you about a third of all clicks. That’s a big number, continued to P-DD30 DigitalDealer-magazine.com August 2011 DD 29 Digital Marketing, Stauning, continued from P-DD29 Tech News, continued from P-DD4 of course, but it’s not 100%. Using that $7,000 a little creatively – like paying a content writer to place SEO text on your website and using the rest for pay-perclick and Google Boost ads – could probably drive more in-market visitors for this dealer and deliver long-term SEO benefits. (You see, when you control the SEO, you keep the content, and your SEO goodwill does not go away when you fire your SEO company or change web site providers.) made to the Vehicle Remarketing, Repair Order, and Retail Delivery Reporting BODs. Vehicle Remarketing now supports boats, yachts, and ATVs. Repair Order now allows manufacturers to keep dealerships updated on the service history of vehicles serviced at multiple dealerships, which will streamline communications between manufacturers and dealers. Finally, Retail Delivery Reporting will aide communications of sales leads and campaign information for dealers while providing data for trending and analytics purposes. www.starstandard.org Okay, but let’s agree that my marketing dollars should be spent 100% online… Along with the desire for self-sufficiency, there is a growing belief among many dealers that all they need is digital marketing to make connections with consumers today. In this regard, many of them are completely abandoning traditional offline channels like newspaper, television and radio in lieu of spending more money online. I wrote a blog post on www.dealer-magazine.com about the fallacy of this move for dealers who operate in areas served by community newspapers (you can read that post at: http://bit.ly/jalr9z). Suffice it to say that so much of your online success is driven by the offline branding you’ve been delivering over the years that to completely abandon this largely un-measureable activity will likely harm your brand in the long term. If you still believe that all you need is online marketing consider the case of Dave Smith Motors, the largest Internet dealer in the world. Dave Smith Motors of tiny Kellogg, Idaho advertises on Sirius Satellite Radio. While radio was once just a local medium, Dave Smith Motors is going national with these ads. Clearly, they understand that offline marketing is a critical part of an overall marketing strategy (and a strategy that you cannot execute without Advertiser.............................. pg # Autobase....................................27 outside help). Additionally, local coupon giants Groupon and LivingSocial are regular buyers of television advertising, even though their services are 100% Internet-based and their go-to-market strategies are founded on social media and referrals. This begs the question: If these online titans (who owe their very existence to social media and viral marketing) are buyers of television advertising, what do they know that you don’t? It’s time to bring in some third parties to help you sort all of this out, and it’s time to stop trying to do it all yourself. And the moral of this story is...? The idea that even aided by technology and employing a large, intelligent and technically proficient staff you can eliminate third parties is ludicrous. (The industry’s largest dealer groups use plenty of third parties to help them grow their Internet sales, despite employing very large e-commerce teams in some cases.) Sure, there are plenty of digital and offline marketing activities that you can control internally – and many of these make perfect sense to keep in house – but the fact remains that the most successful dealers use an extremely wide variety of sources. Moreover, for successful dealers, all of these sources are valuable and provide a great return on investment. The secret these dealers know above all else is clear: Control what you can control (like process and the customer experience), measure everything you can measure (dumping ineffective sources quickly), and treat your third-party vendors like the subject matter experts they are (instead of the pariahs you or that SEO vendor have made them out to be). Good selling! Steve Stauning is the founder of pladoogle, LLC, a leading ecommerce solutions firm. Prior to pladoogle, Steve has served in various automotive ecommerce leadership roles, including as the Asbury Automotive Group’s (NYSE: ABG) director of ecommerce, the director of the Web Solutions division of the Reynolds & Reynolds Company, and as general manager for Dealer Web Services at Dealer Specialties. sstauning@ dealer-communications.com. Dealer.com.................................17 DealerPeak (Widestorm)............6 Dominion Dealer Solutions......29 IMN.............................................15 DD 30 August 2011 For more articles, blogs and daily news visit us at www.Dealermagazine.com. DigitalDealer-magazine.com Two industry firsts from izmocars izmocars, the leading business solutions provider for the automotive industry announced that its vehicle photography division, izmostudio (www.izmostudio.com), a leading provider of digital photography for automotive web sites, has achieved two industry firsts: 1) Color-correct, trim-level interior and exterior vehicle images for all online platforms and 2) Super-sharp, highresolution vehicle animations (including 360° exterior and interior “spins” with touchable “hot spots” and colorization) that work with Apple’s iPhone and iPad. Until now, no other provider in the auto industry has been able to harness the unique interactive, visual power of Apple’s mobile devices or to achieve this level of color/trim image accuracy across all online platforms. Prior to this new izmostudio release, the challenge of matching vehicle photos exactly to consumer search specifications had been a profound and long-standing problem in online vehicle shopping. Consumers raise their hand on an automaker, dealership, or third party automotive web site to see a specific vehicle by configuring their search parameters down to the trim and color, but the images shown in the search results page generally did not match the parameters of their request, leading to a frustrating online shopping process that could result in brand defection or an incomplete shopping transaction. With the new izmostudio images, the vehicle images that come back are the colorcorrect (i.e. not a random shade of blue but the actual automaker shade of blue for that make/model) and trim-correct for both the vehicle’s exterior and interior, ensuring that search results and vehicle detail pages make more sense and match consumer expectations. www.izmocars.com