strategy

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

What your Internet Leads Really Want

by : Aimee Romero

From Digital Dealer Magazine – December 2007

Though most of the people who visit your dealership have first researched online, consumers who actually submit leads online are in a league of their own. These people are at a different point in the buying cycle and should be treated accordingly. To successfully turn Internet leads into sales, there are a few things you should know about online consumers and how to get through to them.

Online leads are often submitted early in the buying process

In other words, online consumers are interested in information first, a purchase later. The J.D. Power and Associates 2006 New Autoshopper.com Study indicates a change in the focus of online car shopping in general; consumers are increasingly interested in finding the right car, as opposed to the right price.

Online consumers use the Internet for research. They’re looking for the right car. When they find it, they will buy. Make sure that sale is yours; walk your Internet leads through the process of finding their perfect car. Let them go at their own pace. Be careful not to jump the gun and ask for a sale too quickly. You want to build trust by listening to their criteria, making solid suggestions, and helping them find a car that works for them. If you keep them comfortable, they’re far less likely to buy from another dealer at the last minute.

Give online consumers what they want

According to the J.D. Power and Associates 2006 New Autoshopper.com Study, more shoppers are looking to manufacturer sites for the information they can’t get elsewhere. One way to keep your dealership in step with this growing trend is to make sure your web site’s calls to action aren’t all based on “get a quote” or “take a test drive.” Many online consumers would be more interested in submitting a lead if your dealership offered to answer questions and help them find their dream car.

Follow up with your leads quickly

Internet shoppers are not just looking for information on a specific car, but on many cars. They expect help finding the car that best fits their lifestyle and needs. It’s more important than ever to quickly respond to your leads. Because Internet users are reaching out for information, chances are they’re looking in multiple places. The sooner you respond to them with the information they need, the more likely they are to stick with your dealership. Once you are in communication with your lead, make sure to listen and be helpful. Don’t push the sale.

Ask questions

Online consumers shouldn’t be the only ones digging for information. You should help them by doing the same. It’s in your best interest to listen intently to what your consumers are saying. Use the data your web site has collected in their lead submission. Ask questions that will help you determine not only what your consumers think they want, but also what their lifestyle is like. Do they have a family? Are they buying a car for their teenager? Do they primarily drive in the city? Find out about your consumers and their habits. This will help you offer them qualified help while building trust and increasing their comfort.

While price will always be a large factor in decision-making, according to the J.D. Power and Associates 2005 New AutoShopper.com Study, almost three-fourths of online lead submitters do not consider themselves “highly price sensitive.” This is a dream come true for dealers! It’s not about the bottom line anymore. It’s about the relationships you are building with your customers and satisfying their needs.

When you’re gently leading your online consumers to the car that best fits their lifestyle, requirements and dreams, keep in mind that building this relationship will likely result not only in a car sale, but in a returning customer – and consequently, many sales to come.

http://www.digitaldealer-magazine.com/index.asp?article=1695

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

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

Competing With Manufacturer Websites

There’s no denying it. Across the board, every automobile manufacturer has built an outstanding website full of multimedia, fancy Hollywood-quality production and possibly music by the Rolling Stones. So when winning a customer’s business lies increasingly on your ability to get them to spend some time at your website, how do you compete with that sort or production value?

Simple. You do it with relevance, personalization and interaction — the three things a manufacturer’s site can’t offer.

Relevance — Your site is more relevant to the user because they can actually buy the car from you. And chances are, your dealership is fairly close by. And if your data is strong, they’ll know whether you have the specific car they’re looking for on your lot.

Personalization — People do business with people. And that’s what your website can provide that the manufacturers’ sites never will — a personal connection. You can provide links to email your sales staff, photos of your team, and direct links to the service department.

Interaction — No automobile gets sold without a conversation. And that conversation is increasingly taking place online. Use your web system to start and maintain a conversation with your customers and prospects.

At first, it looks like they have the upper hand… but with the personal, relevant and interactive elements, you’re left holding all the cards.

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

Location, Location, Location

If you were going to build a new physical location for your dealership, the “where” would be as, if not more, important than the “what.” After all if potential customers couldn’t find you, then buying a vehicle from you becomes all but impossible.

Not coincidentally, the same principle applies online. If your customers and prospects can’t find you, you don’t exist. Having a memorable and intuitive web address will help, but the number one thing you need to do is ensure that your site plays nice with the world’s biggest search engines (Google, Yahoo!, Ask.com, MSN, etc.). It is those sites that determine your “location” online. Being near the top of the first page on Google is like having your dealership at the intersection of town’s two main drags — it’s so easy to find that your customers can’t help but come across it from time to time.

Search engines are the maps of the digital landscape. And products like Dealer Impact’s Rank King can use a variety of strategies and tactics to ensure that you grab a piece of prime digital real estate. That’s the “where” of the digital marketing game… and it’s at least as important as the “what.”

D. Jones
Marketing Strategist/Creative Consultant
SmackDabble, LLC

“Top Ten” signs a dealership is not serious about the Internet

10. They have AOL or Hotmail email address.
9. They still have the Field of Dreams mentality (Build it and they will come)
8. The Internet Manager spends more time integrating that new flying airplane on the site than making sure leads get followed up.
7. They switch website providers every year trying to find a site that will sell cars for them.
6. The Internet Department thinks they can take the same number of smoke breaks as everyone else in the dealership.
5. Policies, Procedures, and Accountability don’t pertain to the Internet Department.
4. The newspaper is their primary advertising medium, where the average reader is 55 and the new generation doesn’t even pick it up.
3. They use Cobalt or Reynolds as their primary web solution because they were told to (can you say brainwash).
2. The GM/Owner doesn’t use the Internet so why would anyone else.
1. The dealership has handed over a multi-million dollar profit center to Internet Guru they wouldn’t trust to baby sit their 8 year old daughter.

Brian Cox
President, Dealer Impact Systems
www.dealerimpact.com

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