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CARFAX - What Are You Thinking?

I just want to point a few things out for CarFax. Dealers certainly could tell a customer "we factored the CarFax price adjustment into the price of the car", but for dealers using vAuto, FirstLook, or AAX this might not be true.

1. CarFax - did you factor-in how dealers price used vehicles today?

A dealer that uses a pricing tool, like one of the 3 I mentioned above, probably does not have access to this "CarFax pricing adjustment" yet. I have to assume CarFax is working with these companies to integrate this pricing feature. If not, then dealers who use pricing tools should seriously consider whether they retain a partnership with CarFax.

2. CarFax - did you consider the arguments dealers are going to have?

There are going to be arguments for and against CarFax's latest move, but at the end of the day dealers will have to gauge whether CarFax is just a well-branded synonym for "Used Car History Report" in each market. If the dealer's sales staff is strong they have the ability to work with or around CarFax. If a dealer has confidence in his sales staff then they're going to have to internally discuss switching to a cheaper alternative than CarFax. Before this move, this internal discussion was not as rampant.

3. CarFax - who are your customers?

If you make more money off the monthly bills dealers send you, then why didn't you give dealers more of a heads-up before launching this product?

4. CarFax - where are these values coming from?

How can a dealer be against or for your new pricing feature without knowing how to explain it? Are dealers supposed to take the stance of "because CarFax says so"? Consumers and dealers deserve to know where these values are derived.

5. CarFax - Why?

I guess this one doesn't matter as much as the other questions. But why did you get into this game? Many of us are scratching our heads right now. The question doesn't really matter because you've done it and now we all have to figure out whether we're going to stand by your decision.

My advice
Speak up quick. Speak up now. Don't let another website tarnish your "great new feature". Publicly respond ASAP!

CARFAX - What Are You Thinking?

Nick and Mike,

Very interesting discussion brewing here. The fact is that some companies can market to the end user and hold those in the middle hostage for revenue. Carfax has done an excellent job of marketing to the consumer, "don't buy a used car without it," this is just another extension of that effort.

This isn't new or exclusive to the automotive industry. Think real estate appraisals to get a loan, legal proceedings requiring a lawyer, federal govt mandates on nearly everything, BBB certification, college education hiring requirements to get a job, all of these industries have an equivalency to this end user marketing practice.

Pay Carfax less for using their logo to advertise, but they will get your money if your customer demands the service in order to do business with you.

CARFAX - What Are You Thinking?

WHY do we keep working with vendors who claim to "work for us" when in fact they're just figuring out how to SCREW us? In what other industry would any company in their right mind pay someone to tell customers why they should pay less for their products?

This isn't just for CarFax... this is for every lead provider, and hell, every media outlet in the industry.

CARFAX - What Are You Thinking?

The worst part is no one can explain how they arrived at the value.

We considered making the switch from AutoCheck to CarFax. But we were hesitant because it's almost as if CarFax is a household name when it comes to used cars. We also had a rash of erroneous AutoCheck history reports that took a considerable amount of time to resolve.

CARFAX - What Are You Thinking?

I first started seeing this on our dealer side of CarFax months ago and asked our rep about it and even then all he could tell us was that it's something that we are working on and the customer won't be able to see it. Ok... well that's great unless we want the customer to see it.

After several tweets and blog posts tonight I went on my website and pulled it up...sure enough a 1 owner car with low miles on it shows a -$140 on the CarFax report....

Is CarFax trying to be the next KBB or NADA? CarFax doesn't even disclose how they come up with their figures....

Guess the phones are going to be hot tomorrow!

Contact At Once! and Cobalt Partner for Dealer Chat

Contact At Once! and Cobalt Partner to Extend Cobalt’s Digital Marketing Platform with Dealer Chat

Atlanta, GA and Seattle, WA – April 27, 2010 – Contact At Once!, LLC, the leading provider of dealer chat software that moves online lookers into live conversations with car dealerships, announced today a partnership with Cobalt, the leading provider of digital marketing solutions to the retail automotive industry, to offer an integrated version of ContactAtOnce! dealer chat software with Cobalt’s dealer website solutions. Dealers adding ContactAtOnce! to their Cobalt digital marketing platform will be able to support more shoppers natural communications preferences, increasing total sales opportunities generated by their advertising investments. With this partnership Cobalt results reporting will now include chat-based opportunities as it does email leads, phone leads and walk-in intent.

More than three quarters of all shoppers use the Internet before visiting a dealer, leveraging a rapidly expanding portfolio of communications methods and devices. Research confirms that shoppers will engage more with dealers that support the type of communications methods they prefer, increasing total sales opportunities. This solution takes dealer chat technology to a new level by making it easy for dealer sales personnel to use, personalizing it for consumers with real images of dealership staff, and eliminating the need for expensive, less effective external call centers through “presence aware” smart technology that knows when dealership personnel are ready and able to chat.

Dealers have the expectation that their partners should report on the business return from the dealer’s investments in that partner. Unlike the superficial integration that typically exists when chat software is added to dealer websites, ContactAtOnce! is integrated into Cobalt’s digital marketing platform to optimize the conversion of online car shoppers into leads and to consolidate lead measurement and reporting. This allows Cobalt to discuss the total performance of a dealer’s digital marketing effort regardless of consumer contact method.

“ContactAtOnce! chat encourages online shoppers to connect and converse with our dealerships,” said Wayne Ussery, Director of Internet Marketing for the Jim Ellis Auto Dealerships that include Chevrolet, Buick-GMC, Volkswagen, Hyundai, Saab, Mazda, Mitsubishi, Audi and Porsche franchises. “Many of our stores receive 50 or more chat requests each month.” The Jim Ellis Automotive Group ranked #8 in the most recent “Ward’s e-Dealer 100” list of the top performing dealerships as measured by Internet sales.

“We’re thrilled that an industry leader like Cobalt recognized the advanced capabilities of Contact At Once! and chose us as a partner,” said John Hanger, President and CEO. “This is the first partnership of its kind for Cobalt,” said Chris Reed, Cobalt’s Chief Marketing Officer. “This type of partnership provides our customers with the flexibility and choice they desire to optimize the performance of their digital marketing without sacrificing the integrated performance reporting and service delivery they value from Cobalt.”

The integrated ContactatOnce! solution is available immediately. Cobalt customers should contact their Cobalt Sales representative or Contact At Once! to request a presentation. Information on the solution can be found at www.cobalt.com/marketplace.

About Contact At Once!, LLC:
Contact At Once!, LLC is the leading provider of dealer chat software and internet marketing tools for automotive sales, apartment leasing, and other industries where consumers conduct research online before visiting a dealership or office. The ContactAtOnce! service increases the conversion of website visitors into live conversations with sales people by utilizing a suite of technologies such as presence, IM/chat, VoIP telephony, video chat and text messaging, resulting in increased revenue and a better return on marketing expenditures. ContactAtOnce! is the only solution with features specifically for vertical search websites and over 40 such sites, along with thousands of merchant businesses, are using it today. Find out more at www.contactatonce.com.

About Cobalt
Cobalt is North America's leading provider of digital marketing solutions to the automotive industry. For more than fifteen years, Cobalt's mission has been to help automobile dealers and manufacturers increase their retailing effectiveness and profitability through cutting-edge digital marketing platforms, solutions and advertising. Cobalt currently provides marketing services to nearly half of the automotive dealerships in the United States as well as automotive dealers in Canada and Mexico. Cobalt's digital marketing services are endorsed by two-thirds of the world's major automotive manufacturers.

“Hassle-Free” Car-Buying Experience Is Most Important

Great article, thanks for sharing it.

Working with a lot of independent dealers, I have seen this repeatedly. Note the great testimonials from customers at some of the better independent stores, like Automotive Avenues in Denver.

See y'all at NIADA - doing a panel on social media with Keith Whann, Phil Zellinger and others.

“Hassle-Free” Car-Buying Experience Is Most Important

Fascinating poll results. The key now is being able to interpret and discern the findings in order for dealers to respond appropriately.

For example, What does the consumer mean -- specifically -- when s/he wants a "hassle-free" shopping environment? For me, the real question therefore posed by this one particular poll result is this: How can the dealer "lengthen" its traditional "one-close sale" showroom encounter with the consumer into an honest-to-goodness relationship established before and strengthened during the showroom visit that suffuses the consumer with trust and confidence?

Another for example, What does the consumer mean -- specifically -- when s/he wants a "Honesty and integrity at every step of the buying process?” For me, the real question therefore posed by this one particular poll result is this: How can the dealer contribute "actionable insight and value" to the consumer's buying decision over and beyond what s/he has accumulated already for his/her online research?

If a dealer provides rare insight, if a dealer converts consumer online research into actionable understanding, then I think the dealer will have created for the consumer a "hassle-free" shopping experience -- an extraordinary one!

Lastly, BTW, not surprised to see that "low price" ranked correspondingly low in the poll...

“Hassle-Free” Car-Buying Experience Is Most Important

DealerRater Reveals “Hassle-Free” Car-Buying Experience Most Important in Latest Poll

Waltham, MA (April 26, 2010) – DealerRater, the nation’s premier car dealer review Web site, surveyed a sample of 5,530 reviewers on which of six factors ranked highest in their car purchase decision. The poll choices included hassle-free shopping, low price, prompt attention, location of dealer, service promise and dealer reputation. Respondents were also given the choice to select “other” and share a factor of their own not included in our list.

“Nearly half of the respondents made it clear that both a relaxed car-buying experience and working with a dealer with a stellar reputation are tops on their wish lists,” noted Chip Grueter, president of DealerRater. “These top two criteria fit perfectly into the overall mission of DealerRater, which is to provide an efficient point of entry for customers through free classified vehicle leads and give dealers tools to effectively manage their online reputation.”

Based on the poll results, the most important factor to consumers in their car-buying decision is a “hassle-free” shopping experience, a response given by 30% of the poll respondents. Dealerships who can effectively streamline the car purchase process, apply just the right amount of pressure while allowing customers to feel that they are in control, and provide a seamless path from start to finish are clearly advantaged and in demand.

The next most popular factor, according to nearly 20% of the poll respondents, was dealer reputation. DealerRater allows customers to post their reviews of car dealerships to its website, effectively helping to inform other users who are reading the reviews as part of a purchase decision. DealerRater provides tools for dealers to manage their reputation through its Certified Dealer program. Reputation management has become one of the most critical components of effective online marketing, and the poll results clearly reinforce this.

Low prices (15% of respondents), prompt attention (10% of respondents), service promise (6% of respondents), and dealer location (3% of respondents) rounded out the poll responses that offered a specific factor. Approximately 16% of those surveyed, however, chose the “Other” option and specifically mentioned one or more factors that weren’t named in the poll. “Honesty and integrity at every step of the buying process” was the response of one such respondent, a sentiment echoed by a number of others. Another noted that “the knowledgeable and expertise of the sales staff is very important.”

About DealerRater
DealerRater was founded in 2002 as the first car dealer review Web site worldwide. DealerRater is committed to providing a central collection point for informative reviews. The site currently features more than 24,000 US and International car dealers and more than 100,000 user reviews. DealerRater provides the opportunity for users to search for car dealerships, read current reviews, write their own review, and find car deals – all for free. Car dealers are rated on the criteria of customer service, quality of work, friendliness, price and overall experience. DealerRater users also have the option to recommend the dealer to other users and provide a descriptive review. Web site users and car dealerships may post free auto classified ads. DealerRater visitors may request vehicle quotes and Certified Dealers receive free vehicle leads.

About Chip Grueter
Chip Grueter is the president of DealerRater. Mr. Grueter founded the company in 2002 as a way for Web site users to share their sales and service experiences at automotive dealerships with other Web site users. Mr. Grueter holds a Bachelor of Arts degree from Boston College. Mr. Grueter’s favorite dealership customer service perk is free vehicle loaners.

For DealerRater information or to interview Chip Grueter, please contact Michelle Oldershaw at 800.266.9455 or visit www.DealerRater.com.

Client~ConneXion – New DealerRefresh Ad Sponsor

DealerRefresh welcomes new sponsor – Client~ConneXion

clientconnecX_sm.jpgClient~ConneXion knows how important web traffic is to your dealership website. They also know it’s even more important to “Stop the Shop” to those same website visitors. That’s the philosophy that they’ve built their business on.

Their Live Web Chat Application truly “UPs”every Web Visitor!

It’s like having a greeter on your website just waiting to help the next customer. And the customers appreciate the immediate attention and service.

Not only do they automatically greet every visitor, they also hand you a crystal ball into your customer’s shop. By delivering the Behavioral Analytics to every visitor, Client~ConneXion dealers are able Co-Navigate with their customers, and are tuned in to where they came from and what they are shopping for before ever speaking to them. Their Onsite Accountability Training program assists both Sales and Service staff to stay in front of their customers. The Live Web Chat Application allows your dealership the ability to assist your customers live, when the iron is hot.

Client~ConneXion also offers the SFE Procurement Program, an After-Hours Lead Response Solution geared to the GM dealers OneSource leads Standards for Excellence program.

About Client~ConneXion

Client~ConneXion is a software solution firm based out of Dallas, TX that specializes in providing a Live Web Chat Application that pro-actively engages and “UP’s” every web visitor for auto dealers throughout the country. Client~ConneXion Founder, Timothy Michael, feels that “consumers expect instant attention and by accommodating their need for a quick response, it typically stops the shop and we’re happy to provide that solution through the SFE Procurement Program or via the Live Web Chat. Instant contact and response is what we’ve built our business on.”

For more information visit www.ClientConneXion.com

Please Note: Our sponsors are important to us, and we hope to advertise products and services that we feel would be relevant to the community, however sponsors are not "endorsements" of dealerrefresh. As with any purchase, always do your research and comparisons. Find out if Advertising on DealerRefresh.com works for your company.

Are you underpaid? Need a raise?

We're trying to gauge what the average Internet Sales Manager or Director is making across the country.  Answer the poll on the DealerRefresh forums:  http://forum.dealerrefresh.com/f40/pay-internet-sales-manager-director-903.html

Poll results as of April 28th at 3:33 PM EST.

Screen-shot-2010-04-28-at-3.30.05-PM.png

This could be your opportunity to show your boss that you're under-valued.  Regardless of where you fall in the current poll, the more people who answer it the more accurate the numbers become.

Thank you for taking the time!

Kevin Frye's Annual Digital Dealer Conference Review

As I worked the exhibition hall, I asked many of these same vendors what they thought about the huge emphasis on “How are we going to get on-board with all of these social networking sites, and how are we going to sell cars there?” Truth is, many of them don’t even believe that social networking sites are the place to “sell cars”, but they are only delivering what dealers want.

This is not just the case for auto dealers and cars, it's the same for most businesses. I recently met with a group of business colleagues with varying business backgrounds. As we discussed social media their sentiment was similar. How do you keep up with all the different flavors of social media and still run a business profitably?

The truth be told, some businesses are a great fit for social media while others are not. Some forms of social media might be right for one business, while not for another. Social media has become one size fits all. You can't put a square peg in a round hole...this is essentially what we are try to tell businesses to do.

Once we can get past the hype of social media we can start having some real conversations on profitable implementation.

Kevin Frye's Annual Digital Dealer Conference Review

Thanks for the recap Kevin, you had a lot of great points but forgot to mention anything about CallSource.com! That's ok I'm not taking it personally, it must have just been an oversight. We can provide you & your fellow dealers with the ability to track, capture, chart, record & organize inbound sales calls in real time. CallSource, the true inventor & driving force in the Call Measurement & Monitoring world, is uniquely positioned to deliver superior value, support & business expertise to today's organizations. With CallSource, you now have the ability to NEVER lose a potential sale because of a "bad call" again with DEAL SAVER! Thanks for talking with me yesterday and referring me to Jim Simon, I hope that wasn't your way of blowing me off though...hmmm, now you got me worried! :)

Hope to talk again soon!

Thanks Kevin!

CJ DePasquale

Kevin Frye's Annual Digital Dealer Conference Review

I wish I could have been there to learn about all the new products and services coming out. Truth is, transparency is key and I agree with Eric from DealerFire.com, 2010 is going to be the year dealerships maximize their websites and processes. Look forward to the next conference and being there.

Kevin Frye's Annual Digital Dealer Conference Review

Kevin - great review as always! I guess you've now locked me into that Social Media article. I wasn't going to do it after writing the Social Media Etiquette for Vendors article.

Good to see you at the conference, along with everyone else. I'm looking forward to the next conference.

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