Great idea on the post Jeff...

Personally, I was not yet in this space 8 years ago but have done my best to catch up on the industry, trends, etc. I would have to agree that there will most likely come a day when there will not be a need for lead aggregators - although I am not sure that day is "just around the corner" just yet. For the management / ownership of maybe a few few thousand dealerships who have taken time to understand the Internet (SEM, auto specific search sites, online newspapers, blogging, etc) and leverage its power; there are thousands more who do not seem to care about understanding the Internet at all. Most seem to consider having visually appealing, flash heavy websites as "doing enough" on the Internet.

There seem to be plenty of tools, vendors, etc. to help dealerships break away from the need to buy leads. The problem is, in a lot of cases, no one at the dealership level really takes time to become educated on the Internet and how to best implement those tools(SEO, PPC, Blogging, RSS, etc.) at their dealership. Until more owners and GM's make this a priority, lead providers will most likely continue to find ways to add to their value proposition; which in quite a few cases still yields higher ROI than some traditional advertising methods.

There is no doubt that you need to watch out for the SEO/SEM companies that are more motivated by immediate income than immediate results. I think everyone will agree that if you receive positive, quantifiable results from any of your vendors, that the money you pay for their services becomes less of an issue.

I understand vendor issues as well as the next guy. I also have a unique take that many don't. I have been in the automotive industry for 22 years as a sales consultant, F&I Manager, Used Car Manager, New Car Manager, and General Sales Manager. I haven't seen it all, but I've seen quite a bit. The uniqueness comes into play in regards to SEO/SEM due to the fact that I am President of one such company, Elite Search Engine Marketing.

I am currently functioning in both roles. One as a General Sales Manager of the 12th ranked Mazda dealership in the nation, Kings Mazda, and also President of my SEO/SEM firm.

Being in the car business, I understand that it is all about results. I fight the negative perception everyday as a vendor. Much like the car business, where there are many dealers looking just to make the sale and not caring about a long term relationship, the same holds true in the SEO/SEM industry. We know that many of these companies will go by the wayside on an almost daily basis, but the damage they cause along the way is sometime irreversible.

My suggestion is to dig deeply into the SEO/SEM companies strategies. Have them spell everything out in writing. Get complete specifics in regards to their methods and philosophies. If you begin to get any type of push back to your questions, you then have your answer, they would not be the vendor to partner with.

If anyone would like additional advice, whether your looking for a new vendor or just want suggestions for your current one, I welcome your questions and feedback.

Remember, do your best possible investigative work up front. Firing a vendor isn't an enjoyable experience and it's also a negative reflection on you, if you were instrumental in making the hiring decision.

Dan

PPC is and will be an important part of my advertising budget for the forseeable future, and it is integral to the success of a website if properly used and administered. One not I have seen made yet is the management fee. One company I was using over a year ago would charge upwards of $500-600 on a $1200-1500 campaign. We would get results, but for that kind of money, I would do it!

I came across a new company in the arena, and have been using them since. Not because of just a low management fee ($150-200 on the same budget), but also because of the reporting tools they provide. The last company simply gave me a spreadsheet with keywords and rates, and showed me how quickly the budget ran out. Now, I can see when PPCs are used, which ones are most common, a mirror website with who's calling, etc.

Just like anything else, these dealers should get more than one perspective or quote when they are looking into SEM/SEO.

Geo targeted adwords also get triggered if you type in a locality in search... I think they call it query parsing... it likely has some wrong data... putting Newburgh, NY in CA.

Brandon- sorry for the late response... didn't see your question.

I don't get them when I query "cadillac" but I do get them for "newburgh cadillac". Maybe a geography issue between the two Orange Counties? Tunstin's in Orange County CA and I think Newburgh is an Orange County NY town. BTW they do also come up for "orange county cadillac".

Mitch,

I just realized you are very local to us. We are located in Rockland County, NY. If you search "cadillac" or "newburgh cadillac" from your NJ location is it coming up? It still is for me.

Mitch,

There is definetly an issue here beyond Google's inaccurate geo-targeting. I have had the geo-targeting inaccuracies in campaigns I have run as well. I did check my IP to ensure it was registered to NY which it was. I also tried the same search in 3 different states. New York, New Jersey & Pennsylvania as they are all close by to here and in my travels. In all of the states the ad showed on 3 different computers/networks with different IP's. For this reason I do not think this campaign is being regionally targeted on broad keywords such as cadillac. Of course something much more complicated could be happening here (this is Google after all) but it just seems like they are not using regional targeting.

Brandon, I have seen this happen several times over (even a dealer in South Carolina sharing my dealership name is a victim) and I think it's a bit one-sided to say that the campaign is being run incorrectly or maliciously. It's certainly possible, but there's another problem at hand which people here should be aware of.

There has been a ton of precedence set for the slight inaccuracy of Google's "geo-targeted" AdWords results... I've seen big-time SEM players like ReachLocal running campaigns that bumped into the issue you're stating, and ReachLocal's campaigns actually have algorithms to maximize top performing keywords. The likelihood of a cross-country dealer result in a local search being a top performing PPC keyword is slim to none, so in cases like these, we have to say that one of three things is occuring:

1. SEM Vendors are sneaking trash keywords into our campaigns to up the click-thrus, and they're lying about having automated programs that maximize top performing keywords (not happening... a couple extra clicks isn't worth the repercussions of fraud and false advertising)

2. The campaign simply isn't geo-targeted (any SEM vendor with half a brain knows how to geo-target so if the ad isn't running as such, it must be an amateur's work)

3. The all-powerful Google might be a bit off in its attempt to localize its paid search results (i.p. addresses ain't miracle workers... Google does a good job but you can't be perfect when you use i.p.'s as your gauge of location)

Having checked out your example though, it's really hard to tell what the issue is. There's obviously a lot of attention to search engine optimization on the site, yet the title of the page- the most important SEO element of them all- simply reads "tunstincadillac.com"... seems like an amateur effort, until you notice that the PPC campaigns have their own tracking codes which is not usually a tactic of an amateur.

Either way, I'd give Tunstin a ring if I were you...

Great point Jake. Integrity goes much further than the promise of a quick buck in my book.

Overseeing a Ford dealership receiving 'Ford Direct' leads, I was amazed at the lead/contact/appt/show/sold ratio. Didn't know at the time how or where Ford found these online shoppers, but the BDC was delivering these customers to the door all day long.

As a grean pea Internet Director, I kept getting these calls from a Dallas Cowboy fan with a classic Texas accent; 'Hi Jeff, Ruanne at Clickmotive here.' We talked more football than SEM... But it was a must as her boss and mine met at a 20 group meeting the prior spring.

Inbetween more Cowboys and Bears talk a year later and her educating me on SEM, she mentioned they were the SEM providers for the Ford Direct leads.

Honestly, I dont have the exact ratio results maninly because the CRM's reporting tool at the time was still under development, but between the BDC and myself we agreed that they were the most qualified leads coming in, with quality customer responses via email and phone.

My guesstimation; close to 70% of the incoming leads showed customer response.

I'm a tough sell and don't promote many company products unless I find them to be 100% quality. Not into gimmicks and promises; but would recommend Clickmotive for SEM all day long. Ask for Ruanne, knowledgeable and pleasant to converse with.

With content relevancy and RSS Marketing there is little need to go the PPC route on keywords and phrases that are consistent with your brands. You should reserve PPC for keywords and phrases not appearing on your sites, i.e. your competing brands.

For instance. a Cadillac dealer should use PPC to target people searching for Lincoln and Mercury. He should use content for his own terms.

With content relevancy and RSS Marketing there is little need to go the PPC route on keywords and phrases that are consistent with your brands. You should reserve PPC for keywords and phrases not appearing on your sites, i.e. your competing brands.

For instance. a Cadillac dealer should use PPC to target people searching for Lincoln and Mercury. He should use content for his own terms.

I have spoken with several companies about SEO and SEM and most all of the reps that I have spoken with have been stumped by at least one, if not all, of the questions that I asked. I have to try like hell to get money for every vendor that I use. I have come to the conclusion that there are hundreds maybe thousands of dealers out there with open checkbooks out there waiting for someone to sell them the "Magic Bean" of Internet Sales. Most of them have absolutely no clue what they are buying, and then are suprised when the get no return on it.

If that dealer is in fact paying an outside company to manage their PPC campaign, it's yet another example of how some companies take advantage of dealers who don't know any better. Some companies are purely interested in getting their share of the dealers money. The better companies have a genuine concern for the dealers success. In my opinion, integrity is much more important than a quick buck, and usually the money follows after a quality reputation is established anyway.

What an excellent blog, I've added your feed to my RSS reader.

People, please! "What can I do to earn your business?" is the "What do I have to do to put you in this car today?" of the new millinium. Set yourself apart! Build value in the product, build value in your dealership, build value in you and then, for goodness sakes GIVE THE GUY A PRICE! If the car is hot, why be afraid? If it's sticker, it's sticker! Defend it with Edmunds TMV, your own market research, prior sales numbers from your own dealership, etc. Know your customer, these are people that don't come in because they don't want the tradition process and time worn lexicon that goes along with it. They want honesty, sincerity, professionalism and, most of all, no BS. You can't treat them the same as the guy that pulls up outside in his 3 year old Caddy and starts looking at window stickers.

I like the Poster board idea.
Each customer is a little different. One thing that is the same is that most of them have heard the taught canned response by now.
Keep it simple and sincere, realize that some want a personal experience and some buy without any emotion. The key is to be able to make both your customers and that is not done by working with them in the same manner.

I agree with others... Build a relationship... Quote a price if that is what he wants... Why would you ever blow a customer off because he is shopping???? What do you think Internet Customers do?

If you look at the direction Internet sales is going, you will see that many websites that supply dealers with New Car Leads are now alowing the customer to choose several dealers.

Internet Sales Managers need to go back to the basics... call/email every lead... Build a relationship, sell themselves, and make sure the car the customer requested meets their needs!!!!!

I had a customer like this the other day, here is how i responded to him;

Me to him..

XXXX,
Cars Direct appear to be on average $4k below sticker. If i can match that price can i earn your business?
Lee

His reponse..

i had hoped we wouldn't have to play this game but please quote me a price that will earn my business..

Me to him;

Tom,

I apologise, i am not trying to play any games, i am simply trying to find out what price i can earn your business at. I want to do my best to earn your business and buy from us. I understand you want the best price you can get as we all do, but by throwing prices out there neither gaurantees that you'll get the best deal, or can i be sure that i am quoting you a price that i can earn your business at.

So that being said, i am willing to sell you the vehicle for $68500 plus tax.

Please let me know if i can earn your business at this price.

Lee

I have an appointment with him this week

Nooooo John! I REALLY do like your idea! I love old school!

The web shopping experience is totally FLAT. The shopper sees "stock shot" after "stock shot" (right down to the perfectly dressed models in canned "lifestyle" shots) YAWN! IMO, the shopper will love the old school, humorous, personal dry eraser board presentation.

For those reps with the time and talent to execute your idea, I think it's a 100% winner! 2 thumbs up!

Joe

Joe,

I like it. Now I see why you called my idea "low-tech", which it certainly is in comparison to yours. That's a sweet idea. Maybe I'm too old school in my thinking.

I really like John Greenleaf's low-tech and personal email. It punches thru the noise and would have my attention for sure!

Here's another punchy custom email idea that has personal appeal, on the same plane as Johns, just a bunch faster to execute.

Incoming Call Scenerio:
(shopper): "I see your ad for a Make/Model, stock#..."

Click to expand...

So let's say our sales rep can't talk the shopper in for a test drive, or, if the unit that the shopper wants is sold and the rep needs to "create a bridge" for further discussions.  Our intrepid sales rep makes an offer to dig thru the inventory and send along some select units that hit the customers "wish list".  Our rep asks for the shoppers email address and goes to work.  He/She'll pick some stock numbers (includes CPO's if he's extra smart), then sends along a personal web tour of the unit(s) the rep thinks will be interesting to the shopper.

The email script sends along a custom message area with a offer to take the tour. Shopper opens their email, see's the personal message from our rep with an invite to click the link:

Example #1).  Stock# Tour

Example #2).  All Avalanches (new and used)

The Shopper's name appears on the top of the web tour page: 

>>>  A Web Tour for Jeff Kerschner  

Click to expand...

I'm no longer on the retail frontlines, so I admire all of the posts. I appreciate Brian's philosophy of sales for the future and I believe that to the degree ISM's line up with what Brian will determine their success moving forward. As a Dealer Support Manager for an automotive marketing firm, one of my daily tasks is as a National Sales Trainer, basically doing speakerphone conference calls for dealers that run our program, training them on how to handle the customers we send once they apply (direct mailers, etc.).

So, although I'm not on the frontlines per se, I am involved quite deeply. But, what do you think of this?

Grinder or not, when the lead comes in, it falls into one of three categories.

1) Simple response by email. This is for the basic question of a lead that did not provide a phone number.

2) Response by phone. Obviously, phone number provided. I personally believe, and teach, that nothing (yet) outperforms the phone, when it comes to getting a prospect into the store. By giving directions, small talk, rapport, write down my name, if you happen to forget my name just ask for the guy with the big red shoes, etc., appointment show rates go through the roof. I digress...

3) THE SPECIAL TREATMENT SURPRISE THAT SETS YOU APART FROM YOUR COMPETITION EACH AND EVERY TIME!!! Requires two basic props: 1. digital camera - better quality helps, doesn't need to be pro. 2. 14X18 dry erase board ($8 WalMart). From the lead (John Doe in Jeff's example) write on the dry erase board "John Doe's NEW MERCEDES!!!" Then take the camera and the dry erase board to the car, pull it out if its buried, take a sexy shot of just the car. Then lean the dry erase board against the wheel, leaving most of the rim visible, and capture a close-up of both the wheel and the board. Do the same two more times, one near the steering wheel showing some of that dash, and the last (may require an assistant to hold) above the rear bumper, showing the decal. Reply to the email with the 4 photos attached, the first (sexy shot) without the board, followed by the three with the customer's name on it. It'll blow him away!

Reply by mentioning any combination of the above posts (I really do like Brian's best) and early on, somewhere in the beginning, be sure to say: I've included 4 pictures of the exact model your looking for. Please download them and let me know what you think.

So, what do you think? Am I NUTS???

Dear valued client,

Pricing is important in your decision to purchase, and I would not expect you to pay more from our dealership than another. This is why we promise that if you can find the same vehicle with the same valued support from another dealer within the 30 day time period of your purchase we will refund you the difference.

We take pride in our quality service operations, we have ____ certified technicians who are OEM trained and certified in making sure that repairs and maintenance are done correctly. We will notify you of your scheduled and recommended maintenance 5 business days before your date by phone, email and snail mail for confirmation by you. If you cannot bring the vehicle in to us notify us within 24 hours and we will send our person to you to pick up the vehicle.

We have a loaner program available for our customer's convenience, as well as a shuttle service. If your vehicle requires overnight or longer service we will provide a loaner for your needs.

We are located conveniently for your needs at_____________. We want you to know that we will be happy to answer any questions you may have before or after you make your purchase and we have a 24-hour hotline that will be available for all our valued clients.

I will also give you my personel contact information so if by chance you have issues of any kind please feel free to contact me.

***The costs of this model can be built into the pricing strategy of the vehicle and service component costing. If this model is done well you will have very few complaints and you will see an increase in quality.

Teresa,
Very Creative, good stuff! KUGW! (Keep Up the Good Work)

Joe

There are key differentiators (aside from "your best price") at every dealership, whether you are selling Mercedes Benz, Kia, Ford, or Ferrari. As we all know, it can be difficult to highlight what makes us, and our stores, different from the competition via emails and phone calls. You can bet, though, that every salesperson (internet or otherwise) who attempts to differentiate his/her store from others will do so by talking about the simple buying process, the service after the sale, VIP programs, etc. How is the customer supposed to recognize an actual difference when we all talk about the same things? Response time? Probably not. I feel that the proposed email from Brian H. is on the right track, but he misses the mark by badgering (for lack of a better word) the customer into answering a series of mundane questions before he is prepared to give the customer a price. What if every store the customer sent his request to responded that way? Do you think he would take the time to answer all of those questions for all 5 or 6 ISM's? Or is it more likely he would go buy a 3-Series?

My point is, brooming the guy is not the answer...neither is barraging him with a battery of questions. Get the guy on the phone. Explain why you are hesitant to get into a bidding war. Ask him if there is anything other than price that is as important to him...listen. If there is, ask him how he is going to determine which dealership satisfies that factor the best. Then invite him in to show him how YOU will...whatever that factor might be! Tell him that at that time, you will be happy to make him the best deal you can, so that he will have all the information he needs to make a decision, not just part (the price part) of it.

Here is another idea: Why not have a "canned" email introduction from your service manager available to send these types of customers? Something like:

Dear Mr. Doe,

I happened across your email request in our system, and I want to take the opportunity to introduce myself. I am the Service Director at MB of... I know pricing is important in your decision, and I would not expect you to buy from our dealership unless you can get a fair price. But I also want you to know that we take pride in our service operations, in fact we have 23 MB certified technicians who are expertly trained in making sure that repairs and maintenance are done expeditiously, cleanly, and correctly...the first time. We have a fleet of MB loaner vehicles available for our customers convenience, as well as a shuttle service. Also, blah blah blah blah blah...I want you to know that I will be happy to answer any questions you may have before or after you make your buying decision, and whether or not you choose to purchase from our dealership. Good luck with your purchase! Let me know if I can help.

Sincerely,

Joe Blow