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It's a Jeep thing, you won't understand

Owning a Jeep is straight-up fun!  Taking the top off, hitting the trails/mud/sand/snow, making the truck dirty because that's how it should be, or giving the secret sign to other Jeep owners as you pass are all parts of Jeep ownership.  I come from the family at Checkered Flag Motor Car Corp where we don't carry Jeep, but I've always wished we did.  In fact, I snuck a 1974 CJ5 with a nasty V8 on 35"s behind my grandfather's back (he doesn't like anyone in the family driving a car Checkered Flag doesn't carry new) when I was 20 years old.  I loved that thing, except I could never get the electrical system working right.  Anyway, granddad found out and I got rid of it for a lifted Tacoma.  It was cool, but not nearly as fun on the Hatteras beaches in North Carolina.  I do love Jeep, and still do today.  But due to the immense respect I have for my grandfather, today, I haven't looked at one since I got busted with the CJ5.

Why did I put that story in writing?  Well, ask any Jeep owner about Jeep and they're going to tell you a story.  There aren't many cars that carry that kind of connection with their drivers.  The best part is Jeep knows this.

Have you been to Jeep.com lately? If you haven't, go there and simply follow the top navigation.  First thing you'll probably notice is it isn't overloaded with stuff.  There are all the tools you need to become a Jeep owner and all the tools you need once you become a Jeep owner.  It is a very simple concept.

  • Make sure you put your zip code in and either use the "Build My Own" link or under "Shopping Tools" >> "Search New Inventory".  You'll be taken to the dealer's website on the model of your choosing.  Now that's relevancy.
  • Current incentives are clearly laid-out, with no need to re-enter a zip code, and also shows you your local dealers.  It is all about getting the shopper to the point where they can make a purchase.
  • I also like that they offer the customer the ability to purchase an extended warranty as well (Shopping Tools >> Service Contracts), or look up details on his/her current plan.  That is a very nice convenience.
  • The owners section isn't as flashy, but it definitely gets you to the things you'd want to look at or buy as a Jeep owner.  You can even check for recalls on your Jeep.
  • It is simple.

Are there things I don't like?  Of course.  I don't like websites that launch links in new windows, and Jeep.com does this in a few places, but there aren't many....not enough for me to get upset anyway.  And with some more digging I could pull out a few more minor things, but those things would pale in comparison to the greater goods Jeep.com does.

Besides, nobody is perfect.

Summary:

I want to praise Jeep for building a website that speaks to its visitor.  I have no idea what the bounce rate is but I bet it is one of the lowest in the industry.  They have made a site that also moves a customer from the informational stage to the purchase stage with ease by pointing shoppers back to the dealers quickly.  I certainly don't get the impression that there is a Tier 2 middleman clogging up the consumer process by trying to track leads - it is purely built for the right reasons.  I say fantastic job Jeep!  You win my award for the best OEM website.  Are some other manufacturers listening?

P.S.  I know the other Chrysler brands are on identical platforms, but like I said earlier I'm a huge Jeep fan.

P.P.S.  Yes, the Chrysler Group does force dealers to use 1 website vendor for their websites.  That is not the point of this article.  You can read my take on that here:  OEM policies on Dealership Websites; which, was written when I was still a dealer.

The Evolution of an Automotive Customer

Larry writes:

"2. They are most likely to be come the orbitz of the car business. A presenter of data with no action monitizable action that can come from the data presented. Just a ad site. "

Orbitz Larry?

Ya, I'd agree with that. CarGuru is in the order flow just like Orbitz. I am aok with that, but I've been looking for a game changer to show up and rock our world. Our industry is ripe for the PriceLine.com business model. If he twists the knobs just right and moves his model more towards PriceLine and if it resonates with the dealerships upper management, lookout.

Also, If Larry S and the team can figure it out, Look at the riches that await! Compare the company size of Orbitz vs Priceline

Orbitz (OWW) Business Valued at $641mill

PriceLine.com (PCLN) Business valued at:$16BILLION

Wheres the business headed (aka "what do the customers like")?

Don't think it can happen? Business leaders force change. Managers manage. Just a few years ago PCLN was about the same financial size as OWW PCLN Price Analysis | YCharts

IMO, I maybe running down the wrong alley, but I do know. Radical change is NOT coming from AT and Cars.com. Langley S and his crew are the first A Team I've seen show up in our space.

Food for thought

Muli-year chart of Orbitz
http://www.google.com/finance?chdnp=1&chdd=1&...

Multi-year chart of PriceLine
http://www.google.com/finance?chdnp=0&chdd=0&...

The Evolution of an Automotive Customer

Larry,

You write:

"1. They are just a vunerable as AT and Cars if the dealer body ever figures out they can compete with them in search."

I'll ask you this Larry. In long tail SERPs, Can you show me a dealer in any important market that can compete with the big 3? Lets call an "important market" as one with an MSA >500k pop.

I'd LOVE to see a dealer that has made the cut. Actually, its the vendors responsibility to craft a game plan to make this happen (the SEO plan needs to be "holistic" for it to work).

Now with CarGurus.com filling out the local long tail SERPs better than any dealer/vendor I've ever seen, there is even less reason for Google to "toss the switch" to give local dealers more priority.

Like I wrote in my review of CarGurus.com, IMO, it requires the Google brain trust to decide that Local Car Dealers provide a better search experience than does the Aggragators.

IMO, google will goto 7packs for long tail serps and leave the organics to the aggregators.

The Evolution of an Automotive Customer

Larry,

CarGurus is a lead wholesaler. It leverages its awesome SEO work and strong call to action VDP work to resell its lead traffic to the extensive sales network of Cars.com and Dealix et al.

That CarGurus.com CEO Langley Steinert is not a 'one trip pony'. His business model and the TripAdvisor are radically different.

Gee... He built the ultimate Business Rater site, why not replicate it in our space?

Roll with me on this. Take a minute and consider the structure of TripAdvisor in the Hotels market and how a similar could be used in the automobile retailer biz. Langley S. saw the money and clearly saw the opportunity in the classified ad/lead generating side. I find that very interesting... very revealing.

Anyhoo...

The Evolution of an Automotive Customer

Intersting site Joe sorry I missed that post. I love thier business model: "Car & AT you go get all the listing we'll aggrogate the data and display it in a way that makes sense to the customer then sell the lead back to the dealer.

Problems:

1. They are just a vunerable as AT and Cars if the dealer body ever figures out they can compete with them in search.

2. They are most likely to be come the orbitz of the car business. A presenter of data with no action monitizable action that can come from the data presented. Just a ad site.

To make any site like this work there has to be a compelling reason for the customer to want to go through this site as oppsoed to just going direct to the dealer.

Neat site though.

The Evolution of an Automotive Customer

@alex, I know what you mean and I agree with you on that aspect. A value package is not supposed to be free oil changes or tires for life. It just needs to be a unique reason why people should choose you over anyone else. Your value package can have things that will not cut into your gross. For instance, if your dealership has a play area or starbucks coffee, you can add that. If your dealership has a cafeteria, you can use that. Remember, you want to be different from everyone else but also a little better.

I was recently consulting a store that had a video game area setup. That is great to let customers know of. Let the customers feel like buying a car is more convenient for them.

The Evolution of an Automotive Customer

Larry, you know this, but he's my $0.02.

Cars and AT are 2 titans locked in battle, yet both are winners and both are fat and happy with the slice-of-the-pie they got.

Result: Don't rock the boat.

It's a great setup for an upstart with attitude: http://www.dealerrefresh.com/look-out-autotrader-...

Problem with that upstart is it's business plan. The plan recognizes Car Dealers are NOT self-serve, they need their hand held. You need sales reps on the ground selling the program to produce more profits. Simply presenting inventory and waiting for dealers to sign-up wont work (see google adwords).

damn... can I ramble of what? So sorry. Somebody uplug me.

The Evolution of an Automotive Customer

While I'm rambling...

IMO, "The shopping process" steps that a shopper makes are similar in all high ticket sales.

This also highlights the shopping opportunity that AutoTrader.com and Cars.com should exploit. Currently, AT and Cars is suffering from a gigantically bad reputation, based specifically on poor visibility.

Should the CEO at either company (AT or Cars.com) dare to open this gateway to the dealers home site, then the flood gates would open and the we'd all "see the light"! ;-)

Understandably, neither CEO wants to do this for fear they loose traffic themselves. BUT, what they'll gain is their first chance to raise rates in years.

Mr Perry or Mr Golub, if you entertain this idea (of linking to dealers sites), to boost your value, you may want to link to a dealer landing page 1st, make it newspaper like with a monthly sales theme, allow the dealer to display a video, present a link to the dealers site AND present an exclusive offer that requires an opt-in. ( put your marketing guys headed in this direction: http://www.google.com/search?hl=&q=best+squee... )

Please send royalty checks payable to:

Uncle Joe's "I Want to Live on an Island Again" Fund

The Evolution of an Automotive Customer

If you want to know where price priority is, my instincts are telling me it depends on what Internet Property the shopper's visiting AND remember the Dealer's Brand has weight!

Example: Kayak.com vs JetBlue.com

The shopping process:

1. Plan Purchase (research)

2. Shop on Aggregator sites (like kayak.com)

3. Drill down to best priced choices

==This is where brand pops==

If I see my favorite brand AND my favorite brand is anywhere near 'the best price zone' I'll leave the Aggregator and goto the Brand's site and get the brands optimum web experience.

!!Dealer's MUST not offer the same content found on Aggregators !! Juice up the 'value added' goodies and if your on your game, it'll be interactive (like JBLU's "big a** seat" selector)

If your not sure how to communicate brand, or, what a killer brand message looks like, see: http://forum.dealerrefresh.com/f43/what-key-ingre...

The Evolution of an Automotive Customer

@Jeff

I know that surveys surely can be manuipulated to say pretty much what ever you want. That's why we deciced just to film a large sampling of customers as they search for a car and dealer online and look for commonalities in their behavior. This makes for a much more clean and objective case study. We are posting all of the videos to allow others to veiw and draw their own conclusions from thier observations of the behavior.

The Evolution of an Automotive Customer

@Jeff I don't know if I would call it a carrot or about it being #7 on the list, I can tell you this. We are analyzing the results of a large joint MBU and UserTesting.com study where we have filmed over 100 users as they search for a vehicle online.

I am 1/3 of the way through the analysis and the numbers so far are that in 60% of the cases prices was one of the deciding factors for the customer to choose and contact that dealer, but it was never the only factor.

Will present all the findings at #DD9 and will be posting a summery and all of the videos on the MicrositesByU.com blog.

The Evolution of an Automotive Customer

I'm going to have to continue the Stan quoting. I agree with both Jerry and Jeff and want to point out another thing:

"Also, don’t forget to sell them on a value package proposition. If you build value, reasonable consumer will ultimatley buy from you."

Stan, don't let your dealers sell you on bad ideas buddy. Read this: http://www.dealerrefresh.com/dealership-value-add...

The Evolution of an Automotive Customer

I still think it is all about getting people on the phone. When it comes to email, the national email open rate is somewhere about 11%, which means that people ignore about 89% of their emails. Can you blame them? All of the useless spam and junk that hits our email everyday can get very annoying. Email is good to try to get a customer engaged and if used properly it will help get the customer on the phone.

When it comes to pricing we need to remember that only about 20-25% of customers are solely motivated on price. However, people still use price as a barrier. This scares off a lot of untrained or improperly trained people in the business which leads them to give away gross. The important thing to do is to look at the big picture and find out what is really the reason why they want to buy a vehicle. Also, don't forget to sell them on a value package proposition. If you build value, reasonable consumer will ultimatley buy from you.

The bottom line is that you need to separate yourself from the competition. If five dealers in one area are doing the same thing, do something different to peak the customer's curiousity. At that point, you will succeed.

The Evolution of an Automotive Customer

I couldn't agree with you more. I have made it my mission to train my internet sales team to be able to use the word "no".Selling the appointment and not the price/car/etc is huge. Too much information keeps customers away and gives them a reason to never visit. A well worded way of telling someone that they need to visit the showroom to get all the information they want is way more powerful than giving up that information right away.

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