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What Car Dealers Can Learn from Obama's Campaign

The retail automobile business model has to change. It's a new age in the auto industry and the old school dealer's should have been closed long ago. The umbilical incentive/holdback money cord back to the factory has kept poorly operated dealers in business for way too long. It's time...

Good riddens!

"Analysts have said that U.S. carmakers need to cut U.S. dealerships -- particularly in crowded city markets -- in order to drive more sales through remaining stores and free up funds for advertising and new investment."

What Car Dealers Can Learn from Obama's Campaign

Comparing stats on Obama's site and Mccain's site shows that Obama had double the visits and steady increase throughout the campaign.

Hmmm... guess we don't need to wait till they count Ohio's vote anymore just check the site stats.
Great post Jeff! I actually referenced your article in the Saturday morning sales meeting, it tied in quite nicely with a recent Toyota Signature meeting.

When will Obama be speaking to the DealerRefresh faithful? :)

What Car Dealers Can Learn from Obama's Campaign

Some other big (and probably more impacting) factors to Obama's appointment would be mainstream media in the tank for him along with moveon.org's fund raising.

But your second to last paragraph caught my eye,

"What is your dealers message, what is your dealers brand, are you truly engaging with your customers?"

In my experience this is a big mountain for a lot of dealers and I am stunned at the challenge it presents dealers.

A message of good customer service is not enough for today's market. It's not unique and customers are numb to the promise. Dealers need to dig a bit under the surface to find their true UVP and make BIGGER promises.

This is a key obstacle today.

Another effective use of the things you suggest would be with Pickens Plan which is using Ning as its website and has built a truly "engaged" audience of nearly 1.5 million people in a few short months. Check it out - http://push.pickensplan.com/. I follow Pickens b\c I support the cause and also to learn from their Web 2.0 marketing techniques.

What Car Dealers Can Learn from Obama's Campaign

Something else that dealers could learn from about the Obama campaign is that the brand experience can't end with the close. Around 1 a.m. on Wednesday, November 5, after Obama made his acceptance speech, volunteers working on his campaign received a text message from Obama thanking them for their hard work. Our company prez (we are a PR firm) has worked on many political campaigns and says you never hear from candidates after they win (or lose.) Does it sound eerily familiar ... like customers never hear from their salespeople after the sale?

What Car Dealers Can Learn from Obama's Campaign

Jeff:

Great post. I have been thinking about this all week. How did this guy go from being a community organizer to POTUS in 4 years? Everything you said in this post is true. His campaign was flawlessly executed. They had an incredible understanding of web 2.0 and social media. In fact, whoever ran that aspect of his campaign would make billions on Madison Avenue executing these types of campaigns for corporate America. The one thing Obama had that is not being mentioned (and probably should be investigated) is a TON of money. This guy was raising massive amounts of money which enabled him to invest in the people and resources necessary to execute on this front. Regardless, I am trying to learn from it. It was text book execution of web 2.0 advertising in the 21st century.

ActivEngage Now Offers Multiple Languages for Live Chat on Auto Dealer Websites

activengagelogo.jpg
ActivEngage (www.ActivEngage.com), the automotive industry's premier provider of proactive live chat for dealer websites, today announced the launch of multiple language translation for live chat on auto dealership websites. Now dealers can engage website visitors in their preferred language, without having to employ multi-lingual staff members. The new technology offers dealers a huge competitive advantage through increased personalization for their website visitors' communication preferences. Orlando, Florida (PRWEB) November 4, 2008

ActivEngage, the automotive industry's premier provider of proactive live chat for dealer websites, today announced the launch of multiple language translation for live chat on auto dealership websites. Now dealers can engage website visitors in their preferred language, without having to employ multi-lingual staff members. The new technology offers dealers a huge competitive advantage through increased personalization for their website visitors' communication preferences.

ActivEngage's new service translates live chat text to and from website visitors in real time. When a visitor starts a chat session, ActivEngage detects the visitor's preferred language from their browser settings. The chat operator then asks the visitor if they would like to chat in that language. The expanded service includes the 15 most frequently spoken languages by non-native English speakers in the U.S., including Spanish, French, Russian, Chinese and Korean. In addition, the new service can distinguish between a language as it is spoken in different countries, for example French Canadian versus the French spoken in France, or Spanish as it is spoken in Mexico versus Spain.

Chat operators can enable or disable translation for a portion of the chat session or the entire session, based on the site visitor's preference. Both the original and translated chat text are shown to the visitor and the operator, and the entire chat is stored in the database for future reference. Further, operators can chat with multiple visitors at the same time, using different languages.

"The more personalized communication can be with website visitors, the more successful dealerships will be," commented Todd Smith, ActivEngage co-founder. "

As a company, our focus is to help dealers engage their site visitors by offering the right message at the right time. And now, they can offer this message in the site visitor's language of choice, the language the visitor is most comfortable using. It's an enhanced level of service that lets shoppers know that the dealer caters to the needs and preferences of their visitors, all without having to hire additional staff."

About ActivEngage: (www.ActivEngage.com)
ActivEngage's proprietary business logic was designed in dealerships to meet the needs of sophisticated automotive shoppers. It laser targets each website visitor with the exact right message at the exact right time to get them to take action. The system has been strenuously tested for every type of dealership. It works because the company founders have over 30 years of retail automotive and technology experience, giving ActivEngage a true 360° understanding of the needs of automotive shoppers. Partnering with ActivEngage increases lead generation and offsets the increasing marketing costs associated with the sale of new and pre-owned automobiles. ActivEngage offers three tiers of service to ensure that all website visitors' experiences are enjoyable and uncomplicated, thereby increasing the value of dealership websites through better lead generation.

Web 2.0 Essential for Dealers to Survive Economic Crisis

Thought provoking post, Audrey. I can see 2009 becoming the year of dealer Web 2.0. A surprise may be the use of Web 2.0 inside organizations as differentiated from strict marketing. Use of Web 2.0 internally could positively impact the use of such tools for customer facing activity by training the entire dealer workforce on Web 2.0 concepts and tools.

I agree with you that smart dealers will look at this slow period as the time tackle a new model like Web 2.0.

Web 2.0 Essential for Dealers to Survive Economic Crisis

Hi, Tony: How interesting about your reading the reviews about the space heater and then making your decision. This is absolutely the way consumer purchasing behavior is going. If consumers don't find reviews on a retailer's web site, they google for them elsewhere. By keeping their websites closed off to customer reviews, dealers are not going to prevent customers from putting their opinions online about the vehicles they bought and the service they received. They are simply going to cause customers to find other places on the web to post them. I agree there has to be review of submitted customer comments for senseless ranted and lewd language before they are posted ... and consumers generally understand and accept the necessity of that process. Managing the comments is important in another way, too, because the dealership can post responses to any comments it feels are negative. These responses could be things like, "Thanks for pointing that out to us; we looked into it and took care of it this morning" ... etc, etc, etc. Web 2.0 isn't going away for dealers ... it's just the smart ones will get on board now so they are ahead of the curve for whatever Web 3.0 is going to be.

Web 2.0 Essential for Dealers to Survive Economic Crisis

Allowing customers to have full reign of your site would be a huge step, no doubt about it. After much thought on this idea, and after taking a beating the other day from people on this site in another posting, I decided to investigate this alleged customer phenomenon quoted as, “After the dark economic clouds clear, the sun will be shining on a new era – one in which consumers will be able to spend money, but will only be willing to do so with companies endorsed by “people like me.” Woe betide auto dealers who are not onboard and ready with Web 2.0 then.” I do not know why, but after reading that comment, the hype of Y2K comes to mind. “Never mind that. Let’s be positive!” they say!

Just the other day, after reading this post, I was thinking about purchasing a space heater for my home. In the interest of saving time, I went to the Wal-Mart website to see what they had listed for sale. I found what I was looking for and read the reviews on the product. There were two positive remarks and one negative remark. Satisfied with the positive feedback, I went to Wal-Mart last night and bought the space heater. Did the comments regarding the heater sway my decision? YES, of course they did!

Well heck, maybe it would be great to have customer comments on new or used vehicles on our site. What could be the harm? After all, if the comments are made by real people, everything should be fine - especially if our dealership is customer service orientated.

I figure that there would need to be some checks and balances. For example: requiring any person, wishing to leave a comment, to have their email verified before the comment is posted. I actually tried to leave a comment on Wal-Mart.com and there was a process I had to follow to have my comment posted on the site. Basically, I had to be a real person. I have found this to be the case on most other sites. They will not allow someone without a name and a confirmable e-mail to post on their site. This process prevents people from ranting or making lewd remarks.

Yesterday, I took this whole idea of customer reviews a step further. My dealership group is spread out across a couple of states so we have three website providers. I contacted each of these companies and pitched the idea of adding customer reviews or maybe a question and answer section (like the one on e-Bay). All three venders shot down the idea. The rep at each website provider told me to just use the “News” or “About us” section on my site(s) and put written testimonials with pictures, or video testimonials up. They all treated me as if I was absolutely insane and I thought I was for asking them because I new what the outcome would be…

So guys and gals, if you want this, you are going to have to request these reviews to be built to your sites now! Or, like the author of this post indicated, we may become victims of this Web 2.0 phenomenon - or not…

Web 2.0 Essential for Dealers to Survive Economic Crisis

This is the time when dealers start to separate the strong managers from the weak ones. They realize they waste money on weak ones and let them go. This is also the time to really start embracing the internet because it is the wave. The future is already here, they just need to grap onto it. This is where internet specialists and consultants should really be working to help shape the industry to be eCommerce friendly...

Web 2.0 Essential for Dealers to Survive Economic Crisis

Thank you, Jeff and Ryan, for your kind comments ... Jeff, regarding your point about the current economic crisis ... it's all the more reason for dealers to embrace Web 2.0 now. First off, of course, there is its cost-effectiveness, and that factor alone should speak volumes. Beyond that, economic disruption always forces change. The victors are the ones who innovate so they are ready for the new era. Ryan, your point about building a culture of "customer audience" rather than "vehicle leads" is the perfect way to put it ... and also why I believe that the dealership's web/e-commerce directorship should be a top-level executive function, because the company's web presence cuts across all departments. When you consider it from the standpoint of "customer audience," you realize this audience is comprised of sales customers, service customers, body shop customers, and other audiences, such as potential employees. This is central to the dealership's identity and needs to be advocated at the top. Again, thanks for your comments!

Web 2.0 Essential for Dealers to Survive Economic Crisis

Yes, this is a good topic, but keep in mind that "Web 2.0" is just a temporary label identifying a permanent situation - Interactive Marketing or User Contributed Marketing as Jeff suggests above.

The mountain I see needing to be climbed by dealers is shifting from a culture of "vehicle leads" to "customer audience". With Web 2.0, the objective is to develop an engaged audience, not generate vehicle inquiries. Of course, you are developing this audience for the interest of your business.

For instance, when you hold your next tent event, consider some possible uses for Facebook.

Good stuff Audrey.

Web 2.0 Essential for Dealers to Survive Economic Crisis

Loss of control is not unique to dealerships. Large multinationals (e.g. Coke, WalMart, OEMs) are no longer in complete control of how their brand is represented. Media companies are fighting (and too often, losing) to keep their content from being distributed freely. But these companies are so large that even when they had their heads stuck in the sand, they were forced to confront (or at least manage) the changes in the market due to the Internet and especially Web 2.0. It seems that many dealerships will only address these issues when the monetary losses become too significant to ignore. And by then it may be too late.

Web 2.0 Essential for Dealers to Survive Economic Crisis

It's the lack of control that dealers feel when dealing with an internet customer.

Back in the day, they had control because customers came to the dealership to get all their information. Once inside, control belonged to the dealer.

Most of them are deathly afraid of this new customer.

Audrey you are so correct in that dealers were so ready to take risks until the internet came along. Give them control and they're all in again.

Web 2.0 Essential for Dealers to Survive Economic Crisis

I think that the fear of the unknown has a part in dealers not getting onboard with the whole user generated content craze. Some are afraid of what they may find out about their operations and then to have it on display for everyone to read.

Another problem I see is that many dealers tried to change but didn't have the right people, processes and tools to make it happen. That left them with a bad taste in their mouth so they are reluctant to try again.

Web 2.0 Essential for Dealers to Survive Economic Crisis

Kevin, thank you for your compliment and comments. As you pointed out, ultimately, the market will force this change upon dealers ... what I don't understand is why dealers aren't proactively making the change now. A lot of dealers got to where they are today by taking risks ... but I guess the longer one is in any line of work, it becomes easier to play it safe. In this case, it will be safe now and sorry later ...

Web 2.0 Essential for Dealers to Survive Economic Crisis

This is a fantastic piece - and dead-on. My biggest battle as an eCommerce Director is to get folks within this industry to CHANGE with the market, and embrace it, rather than fight it. The longer folks have worked in this industry, the more stubborn they get in their ways. I cannot imagine a bigger change in the auto-buying market than what is going on now. People are tired of buying cars the "old way", the way we have always sold them. Now, the control has shifted thanks to the internet, and our shoppers wield more power. If they don't like being called over and over, they put you on the do not call list. If they don't like getting 14 emails a day, they mark you as spam. If they are not ready to buy now, they ignore your attempts to contact them until they are ready. If you do not give them a price quote - they just go to the dealer that will. If you won't give them a trade-in appraisal, they just look online and get it themselves. Playing ostrich and burying your head in the sand will not work - and unfortunately many dealers do just that, they try to pretend that if they just ignore these changes they will go away... The dealers that embrace Web 2.0, and work to meet the needs of our customers will win. Our challenge is to put these changes into place at our respective workplaces... Kevin Frye/eCommerce Director/Jeff Wyler Automotive Family

Web 2.0 Essential for Dealers to Survive Economic Crisis

Guest Posting by Audrey Knoth

These days, the most believable voices come from individuals, not what your dealers says about itself.

As one who subscribes to Automotive News daily alerts, I’ve come to expect a several-times-a-day dose of once unthinkable news about the auto industry. There may not have been many tears shed over the collapse of the world’s largest Chevrolet dealer, save for those who depended upon it for their livelihoods. We all feel deeply for them. But the fact a giant could topple so suddenly shows how fast change can come, even in the industry long heralded as America’s largest.

Of course, the economy and business are cyclical. After the bad times, the good times inevitably return. However, my firm has handled public relations for auto dealers for more than 15 years and I believe that the industry is facing a watershed moment. Unless dealers embrace the principles of Web 2.0 now, when prosperity comes back, a lot of those who made it through the downturn won’t survive the upswing.

Accompanying the economic crisis is a crisis in consumer trust. People no longer believe what institutions and organizations tell them. I hardly need to detail why; a glance through the headlines about financial executives publicly vaunting their companies right up until their collapse spells it out clearly. But consumer mistrust is not confined to the financial sector. Think about it: who unabashedly believes what any company or entity says about itself anymore?

These days, the most believable voices come from individuals. The recommendation, criticism, or opinion that matters to each of us now is that of a peer – someone else who is “just like me.” In considering a significant purchase, we want to know what someone else “like me” has to say about the product and the experience of buying it. Consumers routinely Google for these comments prior to opening their wallets. What the company selling that product says falls into the category of “information to consider, but not necessarily believe.”

This shift in consumer attitudes has profound significance for the auto industry, which has grappled with decades of public mistrust, anyway. The car business has been struggling to come to terms with Web 2.0. Most executives continue to fear what consumers would say if they opened their sites to dialogue and customer comments. They figure it’s safer not to engage and so the majority of them don’t.

But what may seem safe now is exactly what will prevent many auto dealers from succeeding when the current crisis is over. After the dark economic clouds clear, the sun will be shining on a new era – one in which consumers will be able to spend money, but will only be willing to do so with companies endorsed by “people like me.” Woe betide auto dealers who are not onboard and ready with Web 2.0 then.

Dealers should use this slow period to invest time, resources, and yes, money, into transforming themselves into Web 2.0 operations. Of course, it’s not just a matter of redesigning the dealership’s web site. It’s also a question of training all staff throughout the organization to walk the walk in terms of truly exceptional customer service that builds relationships.

Dealership principals need to give Web 2.0 a seat at the executive table. For dealers who embrace this, the return of the good times will absolutely be great.
About the Author: Audrey Knoth is the Executive Vice President
for Goldman & Associates Public Relations

To Script or Not to Script - Using phone scripts in your Dealers BDC

I like to use scripts as a guide to pick out phrases and wording. However, I believe in finding out what works best for me through trial and error and go from there. You will never see me with a script in my hand. I might type up things that should be said and give the list to my employees. At the same time we can role play. But I never want them to copy my wording. People need to be original, that is what sells car. Be genuine, be original, and do not be fake. The customer will see it and they will opt to buy from you.

To Script or Not to Script - Using phone scripts in your Dealers BDC

I like for salesmanagers to take the phone calls because they know everything,rebates,rates,etc. i take all the calls in used cars,i know all the cars like my kids because i do all the advertising.i get them in the door and whoever ups them gets the deal.

also all my salespeople post 15 cars a day each on these sites and put their cell phone numbers on them, they get 3 to 7 calls a day each.and it is free!!!!!!!!!yes free!

www.craigslist.com
www.backpage.com
www.kijiji.com
www.topix.com

just to name a few
Good luck all

To Script or Not to Script - Using phone scripts in your Dealers BDC

Mike,

Right on! Good insight, wish this was around 2 years ago. I struggle with the idea of scripts. I gave up on them a little over a year ago. Glad to see that I am not the only one. What tips do you use when you do your roll playing? Most of the dealers I try to learn from are New Car dealers. It's easier to predict the customer situation. I certainly see that the hardest situations are the customers who are the least educated about what options that are available to them. Thanks for the Tips.

Keep them coming! Jeff

To Script or Not to Script - Using phone scripts in your Dealers BDC

Mike....

You're dead on. Scripts are crucial in both ensuring consistency in process and that proven principles are used in successfully moving customers through their purchase cycle.

The challenge is that most dealerships have had access to virtually the same information for years and customers can come away from an interaction with them feeling as if the whole thing was canned and insincere.

Once proven principles have been drilled into those performing the process, it is just as critical that scripts and process be personalized to fit the market, product, store and individual being served.

The challenge comes in ensuring that the effectiveness of process and scripts isn't diluted (mangled) due to a focus on personalization. Repetition and experience are the keys.

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