digital marketing

GM/Cobalt Mandate

If you are a GM dealer, I am sure you have received some pressure from GM or Cobalt to give your domain name to them or forfeit your leads from GM. I have received many calls in regard to this, from customers and non-customers wanting to know what this is all about. Cobalt is a company that likes to strike up relationships with manufacturers and build manufacturer endorsed template web sites. Their goal is to try and standardize the message across all GM dealership sites. The issue is most GM dealerships do not want to integrate a cookie cutter template site with no individual brand. History has proven that these websites do not work. Cobalt created manufacturer endorsed 5 star sites for Chrysler and we can see that almost 99% of these dealerships have created their own website and have a secondary 5 star site linked up to Chrysler.com. GM has decided to try this for GM dealerships and Cobalt is helping with the push. They are trying to strong arm dealerships into using this site as their primary site. One year ago they attempted to do this and to charge the dealerships for it and dealerships just did not bite. Since that did not work they decided to give it away for free. Now they are notifying GM dealerships that they must provide their domain names so the Cobalt site can be set up to point to the compliant site instead of what they already have in place. All the calls I have received are from GM dealerships who are upset and confused. They are very upset and wondering what is going on and what to do, so here is the really simply solution to this whole dilemma.

Simply go register a new domain name, maybe a .net or .web address with your name. Give this domain information to GM/Cobalt and let them set the compliant site up under the new domain. You then have the Cobalt site running in cyberspace and you get the link on the GM website. You can still run your own website with whomever you would like under the original domain name with no changes.

Problem Solved!

Brian Cox
President
Dealer Impact Systems

Planning Is Essential. The Plan Is Worthless.

As we begin a new year, we hope you’ve spent sometime planning for 2008. Specifically, we hope you’ve spent some time putting together a detailed marketing plan for the coming year. Here are a few things to think about as you put that plan together.

Set specific, measurable goals and make certain people are accountable for them.
Determine what tactics will help you most cost effectively accomplish those goals.
Budget appropriately. Remember, marketing is an investment in future returns, not a cost center.
Examine your mix of traditional versus digital marketing spending.
Invest in replacing your direct marketing with electronic marketing to cut costs and increase customer interactivity. This means gathering email addresses.
Push your website to become the center of your sales effort.

Putting you and your team though even a basic marketing planning process will help you learn a lot of things. It will also help to focus you all on the same set of goals. And that’s the most valuable part of the process.

Once you’ve done those things and set your plan into action, remember to constantly check your progress and readjust your goals and tactics. In short, keep planning all year long. Because here’s the thing… unless you do, you’re plan will become worthless. Your marketing plan can’t become something you do once because dozens of unforeseen things can affect how you go to market. For instance, your competition could open a new store or make a major advertising push. Your manufacturer could fall on hard times. One of your new releases could become the “must have” car of the year. Or you may have to respond to a failing (or surging) economy.

All of those things could render your plan useless unless you’re willing to alter your plan and adjust to a new reality by doing some more planning.

That’s why we say that planning is essential, but the plan is useless. Sounds crazy… but it’s true.

D. Jones

Marketing Strategist/Creative Consultant

SmackDabble, LLC

Walk, Don’t Run, To Marketing Success

As you make an aggressive move into 2008, we’d like to remind you of a key maxim of modern marketing, namely that marketing is an iterative process. In other words, it’s not something you do once and sit back and reap the rewards. Marketing is something you do all the time — constantly working and reworking your strategy to adjust to changing market conditions (economy, competition, etc.).

But more important than adjusting to an ever-changing market is adjusting to what you learn. Constant testing of new messages, new tactics, new creative and new media options is the key to driving the high ROI you’re looking for from your marketing.

For tips on using your Dealer Impact digital marketing tools to deliver better ROI, contact your Dealer Impact Representative.

D. Jones
Marketing Strategist/Creative Consultant
SmackDabble, LLC

Dynamic Internet Marketing

From Dealer Marketing Magazine
December 18, 2007

Unlike other forms of advertising, Internet marketing is nearly 100 percent trackable. You not only know what you are getting from your efforts, but you can evaluate and adjust to improve your results. Unfortunately, there are trends that make this space an increasingly difficult place for a dealership to succeed.
1. Internet traffic is increasing which drives up the cost of Internet marketing.
2. The number of your competitors jumping onto the Internet marketing bandwagon is growing, making it more crowded and more expensive to compete.
3. Someone is doing Internet marketing better then you, generating a better ROI that is reinvested into future Internet marketing efforts.
4. Someone is collecting better data from their Internet marketing efforts than you, and gaining more knowledge to use in the future.
Dealers can address these trends, however, by recognizing the value and power of their own customer data. A strong Internet Lead Management (ILM) tool best captures data. The real benefit comes when that ILM tool works hand in hand with a strong customer relationship management (CRM) solution, to close a significantly higher number of Internet leads.
Internet marketing is maturing. Don’t be satisfied by saying, “We have a Website.” Do not confuse having a Website with having a true Internet marketing plan. Dynamic Internet marketing built on customer data is here to stay and will only grow in importance
by Bryan Anderson

How to Personalize the Online Sales Experience

by : John Federman Digital Dealer Magazine
November 2007

Professionals in the automotive industry are known for their knack of engaging customers the minute they walk onto a showroom floor. However, most dealers fail to deliver that same personal touch when it comes to their online presence.

Some dealers have yet to embrace the Internet as a sales channel, while others are hesitant to dedicate full-time resources to managing Internet driven leads. At this year’s annual Vehix Auto Sales Summit in Deer Valley, Utah, one dealer told an industry analyst from the Kelsey Group that,“Some dealers drop everything for that customer that walks in the door, but they won’t answer the phone or pay attention to electronic leads.” However, that auto dealer also noted that, “For people that come in the door the closing percentage is about 16 percent, but with online leads the closing percentage is much higher. These customers are more knowledgeable and more armed to buy a vehicle. If we get back to them right away, it’s a better prospect than a person walking in the door.”

Clearly, dealers that view their web sites as simple brochures, and fail to engage customers as proactively as they would in the showroom, do so at their own peril.

Engaging customers online
Personal service goes a long way with car buyers on the dealer lot. A standout sales professional is usually one that has established such a good buying experience with customers that they are motivated to not only buy another vehicle from him, but also recommend the salesperson to friends and family. These sales professionals remember names, promptly return phone calls and follow up to address customer questions and alert them to service deals or new specials. In short, they anticipate customer needs and deliver on customer requests.

A recent study by J.D. Power and Associates found that online customer satisfaction was highest for those dealers and automotive marketplaces that responded promptly to online inquiries once they’re submitted. “Walk-in and call-in shoppers receive responses in a more timely manner at auto dealerships compared with online shoppers,” said Steve Witten, executive director of marketing/media research at J.D. Power and Associates. “An opportunity exists for dealers to improve the return on their investment in lead services by paying as much attention to online leads as they would to in-person or phone sales leads by responding just as quickly.”

Dealers who haven’t embraced their web site as a customer-focused sales channel are losing their chance to promote potentially lucrative customer relationships. Another J.D. Power study found that consumers that research vehicles online are likely to convert at higher rates than those that don’t. If these online researchers contact a dealer, they’re quite likely hot prospects.

In a world where competitors are just a click away, delays in responding to online leads could make all the difference in closing a sale. Any lag time between online shopping and the visit to the dealership can be expedited simply by enabling potential customers to ask questions and receive answers in a timely fashion.

Proactive conversion solutions
As a compromise, dealers often adopt a minimalist approach that relies on self-service tools like FAQs, low-touch e-mail exchanges and anonymous web forms to provide online customer service. Though these tools certainly have their place on dealer web sites, studies have shown they are less effective in promoting customer satisfaction or generating qualified leads than offering live assistance.

As a result, some of the leading names in the industry have adopted click to call and click to chat technology to engage high-value prospects with a live sales agent online or over the phone. Because not every customer visit merits live assistance, click to call and click to chat both allow dealers to create business rules that dictate which online prospects should be escalated to the phone or chat. For example, customers that have spent several minutes on your site and begin to configure and price a vehicle can be prompted with either click to call or chat, while those that are looking to simply schedule a service appointment are directed to an e-mail form.

Click to call services deployed across key purchasing points on brand web sites for Chrysler, Dodge and Jeep drive sales conversions, with twice as many click to call callers purchasing a vehicle compared to standard inbound callers.

Autobytel, an online only automotive dealer, also implemented a customer service program that quickly connects online patrons with its call center. Using a form to phone solution, Internet browsers simply fill out a quick form, and the online retailer of choice or nearest franchise of that brand is immediately alerted to the customer request and sent a copy of the form. Once alerted, companies can reach out to these prospects and speak with them while they’re still hot. And as it turns out, timing is everything. Since deploying form to phone, Autobytel has increased the volume of qualified leads by 52 percent and doubled the closing rates of Autobytel car dealers.

Click to call offers the power of voice, allowing Internet sales professionals to answer questions while they are fresh in the consumer’s mind. Chat, on the other hand, enables dealerships to handle multiple web visitors at once while still allowing consumers to interact with an agent to answer a few questions.

To use these technologies, customers need only to click a button embedded on a web site and a customer service representative contacts them instantly via their preferred channel – online or offline. While the power of direct customer contact has been documented at length, click to call and live chat solutions leverage real-time web analytics to inform dealers about the customer’s activity the instant a connection is initiated. This sharing of data from the web to phone or chat channels, enables dealers to offer personalized and effective service, as well as insight into potential cross-sell and up-sell opportunities.

Using click to call and click to chat technology extends personal customer service beyond the dealer walls. As online marketing matures, leading companies are focusing on providing a consistent customer experience across all of their sales channels. Soon, a sales agent – regardless of whether he is in a showroom or chat room – will be able to proactively engage customers and kindly say, “May I help you with something?”

http://www.digitaldealer-magazine.com/index.asp?article=1657

Digital Differentiation

Use digital media to set your dealership apart from the crowd.

Look out across your dealership and you’ll see rows and rows of shiny new cars… All with that new car smell, low low financing and a pile of customer cash. All were just washed and are priced to move. There’s just one problem. The Chevys, Hondas, Toyotas and Cadillacs on your lot are the same Chevys, Hondas, Toyotas and Cadillacs that a customer can find down the street at a competing dealership. The vehicles were made in the same factory by the same workers to the same exacting quality standards and are selling for an all but identical price. And we know that a few dollars here and there won’t sway customers as much as we’d like.

So if the product is a commodity, all that’s left to set your dealership apart is the customer experience — how a customer feels during and after interacting with you and your people. And as more and more of that interaction shifts online, so does that portion of the customer experience. And with that comes the opportunity to use digital media to influence and enhance their experience at every stage of the sale.

You can use automatic responders and other email technologies to find and cultivate brand awareness with those customers who aren’t yet in the market. Then, use video and other multimedia to create a user experience on your web site that is unmatched and keeps prospects on your site as long as possible. Once they show some interest in a particular model, entice them by sending a coupon or an eBrochure. Then stay in touch with automated email technology. Are you doing any of these things today?

Using these sorts of digital media tactics allows you to interact more frequently, more effectively, more efficiently and in a more personal way than your traditional methods of phone calls and direct mail. Not to mention that, because of the time and cost associated with staying in touch, traditional methods force you to eventually cut ties. Not the case with digital media because it is not cost dependent. So staying in touch or following up with 10,000 prospects costs virtually the same as a few dozen.

Digital media can help you de-commoditize your undifferentiated product offering in this time where consumers are more fickle than ever. It’s all about the customer experience and increasingly that experience is taking place in cyber space. And because so many of the country’s dealerships have yet to jump on board the digital marketing bandwagon, there’s ample opportunity for those that do to find a true competitive advantage in the battle for brand awareness, customer retention and sales.

D. Jones

Marketing Strategist/Creative Consultant

SmackDabble, LLC

Video Product Tours Yield 35% Increase in Online Sales Conversion

Appeared in Marketing Vox
11/26/07

A SellPoint, Inc. study conducted by Coremetrics found a significant increase in product purchases after online shoppers viewed audio/video tours of products, writes MarketingCharts.

The study analyzed online shopping behaviors to measure the impact SellPoint’s Active Product Tours (APT) on the purchase patterns of online shoppers. Among the findings:
There was a 35 percent increase in the sales conversion rate among shoppers who viewed the tours vs. those who did not.

Shoppers viewing the product tours spent more than 2.5 minutes, on average, engaged in viewing detailed product information about each product viewed.

The Active Product Tours are detailed product presentations featuring audio, video and downloadable sales collateral related to a particular product. Shoppers choose to view them by selecting a “Take a Product Tour” button on the product page.

SellPoint also released the following information:
Last year, online shoppers spent more time viewing APT on Thanksgiving Day than on CyberMonday (208,509 minutes vs. 181,726 minutes).

Based on SellPoint projections, Thanksgiving Day view time will total more than 380,000 minutes vs. nearly 182,000 minutes of view time on Cyber Monday.

About the study: The Coremetrics online shopper study was conducted on the CompU.S.A website, which features SellPoint APT for products from companies such as Canon, Panasonic and Epson. The study was conducted over 30 days and examined more than a million shopping sessions.

http://www.marketingvox.com/archives/2007/11/26/video-product-tours-result-in-35-increase-in-online-sales-conversion/?camp=newsletter&src=mv&type=textlink

eMarketer: online advertising skyrockets

From Digital Dealer
Nov 15, 2007
Volume 2, issue 46

eMarketer foresees U.S. online advertising will more than double as a percentage of total media, rising from only a six percent share of total media in 2006, to a little more than a 12 percent share in 2010. In approximately the same period, online spending will close to triple, rising from $16.9 billion in 2006 to $42 billion in 2011.

According to David Hallerman, a senior analyst at eMarketer, the three milestones which marked this change include:

“First, U.S. Internet ad spending surpassed $5 billion in Q2 2007, the largest sum recorded in any quarter according to research from the Interactive Advertising Bureau and PricewaterhouseCoopers,” says Hallerman. eMarketer projections suggest that in Q4 of this year spending will leap past the $6 billion mark.

“Second, while 69 of the 100 largest U.S. advertisers put smaller budget shares into four traditional media – television, radio, newspapers and magazines – in 2006 than the previous year, 70 of the same group put larger shares into Internet advertising,” continues Hallerman. Furthermore, 58 of those U.S. advertisers both decreased their traditional spending share and increased their Internet share.

“Third, even as the credit crunch pulls ad money off the total media table, the Internet looks to be more resistant to economic turmoil,” asserts Hallerman. “To put the obvious into figures, online advertising contributes more and more to the total ad spending universe every year.” That share will show 7.4 percent this year, approach one in 10 dollars next year, and will probably reach at least 13 percent by the end of 2011.

“Data from both eMarketer and TNS Media Intelligence indicate that 2007 Internet ad spending will be higher than for radio, as reported in August,” declares Hallerman. “That is the first time online ad spending will be greater than for any of the four traditional measured media.” The average ad spend per Internet user is also growing. In fact, 2007 marks the first year that marketers will spend more than $100 to reach each person online. And, by 2011, advertisers will be spending nearly $200 per user.

http://www.imakenews.com/digital1/e_article000951885.cfm?x=bbD1BRj,b4TSprpk

Web Sites Influencing Used Car Buyers

From Digital Dealer
Thursday, November 1, 2007
Issue 44
VOLUME 2 ISSUE 44

Among late-model used-vehicle buyers who use the Internet during the shopping process, Internet use has surpassed all other shopping methods as the source for locating the vehicle a buyer ultimately purchases, according to the J.D. Power and Associates 2007 Used Autoshopper.com Study released late last week.

The study finds that Internet vehicle locators, such as Autotrader.com, CarMax.com, Cars.com and eBay Motors, are increasingly leading consumers to the actual vehicle they buy. In 2007, nearly one in four buyers of late-model used vehicles (23 percent) used an Internet vehicle locator or online classified ad services to find the vehicle they purchased — a 44 percent increase since 2006. In addition, 2007 marks the first year that Internet use surpasses all other shopping methods in locating the vehicle a buyer ultimately purchases. The proportion of used-vehicle buyers who use the Internet in the shopping process and who ultimately found the vehicle they purchased on the Internet is 10 percentage points greater than the number of shoppers who found their vehicle through the second-most-popular method, visiting dealer lots.

“This is just one indication that use of the Internet is now perhaps the most efficient source for shopping for and purchasing late-model used vehicles,” said Jon Osborn, research director at J.D. Power and Associates. “In the past, the majority of used-vehicle automotive Internet users relied on the traditional method of driving around to dealer lots to find the vehicle they ultimately bought. However, as the number of Web sites specializing in the used-vehicle market continues to grow, and the use of video, photos and improved dealer inventory management tools proliferates, we can expect that consumer use of the Internet for used-vehicle shopping and for actually finding a desired vehicle online will continue to increase.”

Consumer-generated automotive content (CGC) is dramatically affecting Internet usage for used-vehicle shopping, as consumers are offering their own experiences and opinions on makes, models and dealerships. With hundreds of sites listing shopping tips, vehicle reviews, pictures and vehicle specifications, CGC is becoming a highly sought-after and trusted source of information for consumers to help determine their buying decisions. The study finds that slightly more than seven in 10 used-vehicle automotive Internet users (72 percent) use CGC on the Internet either while they are shopping for their vehicle or after they purchase it. By far, the most popular types of CGC are consumer ratings and reviews, with two-thirds of used-vehicle automotive Internet users accessing this type of content for automotive information.

“Not only are reviews written by consumers frequently accessed, but also the buyers who use them rate them as the most helpful of all types of consumer-generated content,” said Osborn. “Among used-vehicle automotive Internet users who access consumer-generated ratings and reviews, 94 percent say the information is either ‘somewhat helpful’ or ‘very helpful.’ With this level of utility, CGC is one area that consumers will continue to seek out and may even expect to find on all automotive Web sites.”

The study finds various gender-based differences in used-vehicle shopping trends among automotive Internet users. For example, women not only tend to decide to buy a vehicle earlier in the purchase process than do men (15.9 weeks before the date of purchase compared with 14.1 weeks), but also decide upon the vehicle type and model earlier than do men. In addition, at the beginning of the shopping process, men are much more likely to know the make of vehicle they want than women (49 percent vs. 38 percent), while a much higher proportion of women are initially open to any vehicle that would meet their needs than are men (22 percent vs. 13 percent).

The 2007 Used Autoshopper.com Study is based on responses from 5,476 used-vehicle buyers who purchased pre-owned 2002-2007 model-year vehicles in January and February 2007.

http://www.imakenews.com/digital1/e_article000941164.cfm?x=bbvBGF8,b4TSprpk

E-Mail Takes the Lead in the Digital Marketing Arena

Appeared in: Digital Dealer
Thursday, September 27, 2007
Issue 39
VOLUME 2 ISSUE 39

According to The McKinsey Quarterly, the business journal of the global management-consulting firm McKinsey & Company, chief marketers worldwide use e-mail in their campaigns. In a survey of 311 marketing gurus, McKinsey found that 83 percent utilized e-mail above and beyond the application of display ads, paid search and online video.

When asked about the future of online marketing, respondents thought by 2010 the Web would be an integral part of the first two stages of the buyer decision-marking process: product awareness and information gathering. With this in mind, over one-half of respondents said they planned to increase their e-mail spending in the next three years; however, plans to increase spending could also mean that e-mail would lose some budget to paid search and other tactics.

U.S. Overview
Closer to home on U.S. shores, more than seven in 10 U.S. marketers said that e-mail was one of their online and mobile tactics, according to a Penton Media Custom Research study commissioned by PROMO Magazine.

Top-Line Results:
72.6 percent of U.S. marketers employed e-mail marketing as an integral part of their online/marketing tactics
60.8 percent of U.S. marketers utilized e-mail newsletters as an integral part of their online marketing/tactics

Conclusion:
Over half of all U.S. marketing gurus responding to this survey incorporate and trust e-mail marketing as an effective and declarative digital tool for generating sales.
http://www.imakenews.com/digital1/e_article000914534.cfm?x=bbkdd0s,b4TSprpk