marketing

How to Improve Used-Vehicle Internet Sales

From AutoRemarketing
February 25, 2008
By John Avery

LOUISVILLE, Ky. — We get asked a lot about how to sell more pre-owned vehicles on the Internet. The best way is to make sure that you are doing all you can do to market your vehicles the right way. 

There are a several ways that you can accomplish this, and here are a few basic things that you can do. 

One of the most basic practices that will help you is to make sure that you have good quality photos on each vehicle. 

Prospective customers like to see the details on the vehicle and the condition of the vehicle before they come in. Having photos on your pre-owned vehicles really helps build the trust with your customer and builds value into the vehicle.

The only thing that is worse than not having pictures on the vehicles is having poor photos on your vehicles. Here are a few tips that you can use to improve your online photos: 

—Be mindful of your background. I would suggest using the same background for all of your pictures. It doesn’t take that much more effort to pull the vehicles to a common point to take pictures of it. Some dealerships have actually set up a “studio” to take their pictures.

This is as simple as hanging a curtain in the background so the focus is on the vehicle. You can also take the pictures that will be positioned so that your dealership name is in the background. This will help them remember your dealership name and will keep another dealer from trying to sell your vehicle to their customer. 

—I tried to make sure that the pictures were in the same basic order for each vehicle as well. This will give the customer consistency and will give them a sense that you genuinely care about earning their business. 

—Take your exterior pictures from the corners of the vehicle. Taking these angles gets two sides of the vehicle and shows the customer more than pictures straight on from the back and the front. 

—Take a picture of the odometer, this verifies the information that you have listed with the vehicle. Customers do not like it when they come in and the mileage is a misprint on the Web. 

—Make sure that you have pictures of the seat condition, especially the driver’s seat. This is one of the first things that customers look at because comfort is so important. 

The other big factor is something that most dealerships don’t take the time to bother with. Take the time to write a description for your pre-owned vehicles. It doesn’t need to very elaborate, but having a paragraph about the vehicle does build value into the vehicle and shows the customer that you don’t have anything to hide.  

Here are a few tips that will help you with your descriptions: 

—Make sure that whoever is writing them knows how to write with good grammar and that the spelling is checked and double-checked. 

—The best way to write a description is to write what you think that you would tell a customer if they were in front of you. What qualities of the vehicle would you most want to deliver to your customer? 

Here are a few items that you will want to include in your description: 

—Let them know if the vehicle was a trade-in or not. Also include anything that you learned from the previous owners (i.e., one owner, mostly highway miles, traded for a newer model, needed a larger vehicle, etc.). 

—Let them know about any certifications the vehicle has gone through in your service department. 

—Let them know if there is still a manufacturer’s warranty left on the vehicle or if your dealership has put a warranty on it. 

—Mention any equipment the vehicle has that will add value to the vehicle. 

—I also added a sentence letting them know that we had checked the Carfax history and that they would be eligible for the Carfax money-back guarantee. 

These ideas seem very simple, but many dealerships do not pay attention to these details and will give the customer a reason to eliminate you from their search.

http://www.autoremarketing.com/ar/news/story.html?id=7481

Everything Is Marketing

Chances are when your team sits down to discuss your marketing plan, the conversation centers around newspaper ads, television spots, outdoor boards and your latest radio campaign. Maybe you talk direct mail a little bit and have a quick check on the website. But do you discuss the sign out front? Or the cleanliness of the service department waiting room? How about the dress code of your sales team or the recording on your voice mail system?

Why are those things important? Because every customer communication – everything that sends a message to your customers – is marketing. And all those things send a message. Positive or negative. They can affect the way a customer reacts, remembers and positions your organization in their mind.

So just remember when your look around your dealership… it’s all marketing.

D. Jones
Marketing Strategist/Creative Consultant
SmackDabble, LLC

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

Time to Review

As we countdown the last few days of 2007, it’s an appropriate time to take a look back at your year. How did your marketing perform? Here are a few questions I’d be asking before planning for 2008…

– In what percentage of sales did my website play a prominent role?
– Am I getting the same ROI from TV, radio and newspaper advertising as I did 5 years ago?
– Where is my dealership’s website ranked on Google? Can my customers and prospects easily find me online?
– Is the experience of visiting my website enhanced with video and other multimedia?
– What are my digital marketing goals for 2008?

Based on your answer to the above questions, it’s time to ask yourself this question:

How should I allocate marketing dollars in 2008?

If you’re like most dealerships we know, the percentage of dollars going toward digital efforts (and away from TV, radio and newspaper advertising) will continue to increase until a time when not doing digital marketing would seem just as crazy as canceling your TV buy for 2008.

Best of luck in what is sure to be a fantastic 2008!

D. Jones
Marketing Strategist/Creative Consultant
SmackDabble, LLC

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

What Is Your Key Metric?

If any paradigm shift has dominated marketing thought over the past decade, it is this: If a tactic can’t be measured, it can’t be trusted. It is this sort of thinking that has driven marketers, dealerships and otherwise, to shift their spending away from hard-to-measure mass market tactics like radio and TV and towards more measurable strategies like direct mail and electronic marketing.

But with all this measuring going on, the next question becomes this: What do you measure? What is the key metric that you look at to determine how your marketing is performing?

Do you simply measure leads generated? Or do you only count those leads that are successfully converted into sales? Perhaps you calculate how much each lead costs? Or do you go even deeper… examining how much profit each lead generated?

Use the comments section to tell us what your key marketing metric is.

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

Websites Can’t Create Leads

Your website has never created a single lead. There, I said it. Long lauded as the be all, end all of internet marketing, the website will always remain a limited, albeit powerful tool. Why is that, you ask? Well it’s because your website will always be a reactive marketing tool.

Your website sits out there in cyberspace, all shiny and glowing, whirring with multimedia and powerful data support. But until a consumer comes along, it’s worthless because it can’t go out and find leads. The best your website can hope for is to upgrade leads (turning a warm lead into a hot lead) and capture leads. You still need other tools (search marketing, email marketing, mass advertising, etc.) to drive leads to your site.

So, is your website important? Yes, it can be the most powerful tool in your marketing arsenal. But it can’t function in a vacuum — it’s the most important piece of a complete, integrated digital marketing presence.

D. Jones
Marketing Strategist/Creative Consultant
SmackDabble, LLC