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Dealer Branded Consumer Mobile Apps – Necessity or a Nuisance?

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I recall 15 years ago having conversations with dealers regarding the importance and necessity of deploying a dealer branded website. Today, dealers are now battling that same argument around the deployment of a dealer branded consumer mobile website / application.

Are dealer branded consumer apps a necessity or a nuisance?

Importance of mobile

With over 4.5 billion mobile subscribers in the US alone, dealers would have a hard time finding an argument against the importance of deploying a mobile strategy. As a key touch point that connects consumers to businesses, dealers need to consider that deploying a dealer branded consumer mobile app in their dealership is not only a necessity but also a cost effective way of increasing customer loyalty and ultimately driving repeat business.

Why are consumer apps important?

Nielsen Ratings reports that 44 percent of mobile subscribers in the US use smart phone technology. Of those, 71 percent own either an Android or iPhone device. Moreover, for the first time ever, mobile app usage in the US has surpassed desktop and mobile web consumption. Consumers are spending more time within mobile apps than ever before – nearly 2,555 minutes more per year. This is a clear statement to all dealers to get in the game. Be active. Stay connected to your customers. Be mobile.

Why will consumers use dealer branded apps?

Consumer trends show us that businesses continue to compete for consumer mindshare and ultimately, space on their smart phone. In fact, iPhone users download an average of 40 new apps each year, Android users download 25 and Blackberry users download 14 annually, respectively.

The top downloaded apps across all operating systems include: Facebook, Pandora, the Weather Channel, and Google maps. This is not surprising since consumers are interested in not only downloading but spending time in applications that are user-friendly and help make their life easier.

What dealers should look for when deploying a consumer app?

If mobile is important and consumers are actively using mobile apps, then it is clearly a necessity for each dealer to consider the best way to deploy this technology within their dealership.

Recent industry examples have helped to define what dealers should look for in a consumer mobile app. Ultimately, dealers should select a provider that can offer both convenient and on-demand channels of communication for their customers. Dealers should select a mobile app that includes not only a smart phone vehicle information application, but a two-way communication channel between dealer and consumer.

Today, relevant consumer mobile apps involve making information that used to be stuffed into the glove box available at a consumer’s fingertips. This information includes: general vehicle information, vehicle operations, maintenance and even warranty details. Connecting to real-time smart phone critical functionality, such as Google Maps, camera or QR scanners, help make the application necessary for daily use.

More advanced mobile apps include the ability to calculate loan payments, schedule maintenance appointments and evaluate vehicle trade-in values. For dealers this is a win-win. Imagine the ability to not only maintain real estate on a consumer’s mobile device but also track that usage. This will provide the ability to know if a consumer is shopping for a new vehicle.

Call to action

The time is now to start investigating how consumer mobile app technology fits into your marketing strategy and customer lifecycle management process.

What do you think - are dealer branded consumer apps a necessity or a nuisance?

TrueCar Launches Pro-Industry Product Changes - Can We Trust This?

I think it's a colossal waste of time and resources. I am the internet manager at my store. After TrueCar launched it's TV campaign the number of leads became overwhelming. Most of them were from out of state and many people said they were just "playing around" after they saw the commercial. TrueCar stated they made changes to alleviate that problem, but I never noticed any noteworthy reduction. There is only one other subscribing dealer in town out of a total of 5 of my brand in my city. Anytime a price change was made we knew who did it since there are only 2 of us. It became a slippery slope of ugly, no profit deals just to get our name to pop up on top. My salespeople earn $100 for a mini deal. It made me sick to pay TrueCar $300 for doing nothing. I suggested to my principal that we cancel with them and begin advertising that "we will beat your TrueCar price" and not pay them a dime. Jerry is right, it is an erosion of profit. Companies like TrueCar have made profit a dirty word. Almost every customer that comes in with a certificate thinks that the number they were given is now the starting point for negotiation. They tell me that they've show it to other (non-participating) dealers and were told they would beat it. Of course they will since they don't have to pay $300.

I'm glad to see them scrambling and floundering. I hope my principal does not invite them back after they settle their case in Ohio.

TrueCar Launches Pro-Industry Product Changes - Can We Trust This?

As long as customers are able to see what others are paying for vehicles, this not a good product for dealers. Those on the program are paying a company to help reduce profit. I could care less about the brokering or data issues, for me it's always been about eroding profit.

Is Your Dealers SEO Strategy Ethical & Long Term?

Google has been de-emphasizing link quantity in their algorithm for almost a year now. They now focus on quality and authority of links.  You should be seeing a drop in those other companies who participate in link building schemes, UNLESS they employ other strategies that hold SEO rankings.  Content posted often (doesn't even have to be good content), relevant search terminology that matches closely with consumer entered terms, etc will influence the ranking more than links.  Now the Google+ is becoming a big factor, link building is just another black hat option that has seen its better days.

Is Your Dealers SEO Strategy Ethical & Long Term?

What a great article! It's not very often we see anyone talk about the ethical and moral fibers of current SEO practices like this. This article sticks out in so many ways. The linking portion of this article is becoming even more clear with Google's clear motivations to target low quality and paid links. Thank you for sharing this with the Automotive community. "The days of set-it-and-forget-it website solutions are over." - Absolutely amazing!

Is Your Dealers SEO Strategy Ethical & Long Term?

I agree, this situation has completely gone out of hand, and the auto industry learns this from the auto service industry, take for example the auto dealer software search, the first 3 pages are all the same compay with diferent names, I know because I have tried to buy, and later realize I am talking to the same salesrep. After three pages of junk I found what I was looking for in leasemaster, they only have one item show up, they are 100% diferent than all the other and mention auto dealer software all over the page but they rank on the fourth page, I checked yahoo. yahoo had them on the first page until Bing bought them out, now they show up on the second page, just in case they get lost forever the page is Auto Dealer-FreeDemo-Software $299.00New Used Car Boat RV ComputerProg Try looking for auto dealer software vs auto dealer computer pragrams and explain the diference!

Is Your Dealers SEO Strategy Ethical & Long Term?

@Kyle Suss Kyle, I'm not an idiot, I know meta keywords are no longer a factor, I have been in this business for a long time now, probably way longer than you. The problem with these types of sites, is that there were 50 other domain names with all the same content, just different domain name, and they were all showing up in page 1 serps, and most of them still do except for the ones that are deindexed. Luckily, with a little hard work, I was able to get our main site (not our landing pages) to show up #1 in about a year. I do not believe in link building after seeing plenty of other sites that get top ranking without having links pointing to their sites. I believe providing rich content will do you better than buying sketchy links that based from Google will hurt you in the long run.

Is Your Dealers SEO Strategy Ethical & Long Term?

@xstortionist Hmm you're right. What a sketch website. I can only imagine that the keyword rich domain is a big factor on this. Like you said, I don't see any links pointing here. They have, however, had the domain for about 2 years longer than you've had yours, which can build some authority.

Keep in mind that meta keywords aren't useful at all anymore:

Login to view embedded media View: http://www.youtube.com/watch?v=jK7IPbnmvVU

Is Your Dealers SEO Strategy Ethical & Long Term?

@Kyle Suss we own saddlebag-inserts dot com to match their domain, but still no luck with out performing, I figure domain registration has authority over our domain name. But these guys had like 50 other domain names doing the same thing, luckily I contacted google made a complaint a large number of those domain names were deindexed.

Is Your Dealers SEO Strategy Ethical & Long Term?

@Kyle Suss I can show you a site right now that is a competitor of one of my clients, that has no baclinks, and no content and the site ranks #1 and #2 for many keywords. The site has meta data and a HUGE image screenshot of their homepage that clicks through to their main website. Riddle me that please.

Is Your Dealers SEO Strategy Ethical & Long Term?

@xstortionist I believe they spend the money because it still works.

Case in point, the #1 rated used car store in my area buys tons of links. They opened another store that popped up on page 1 for these queries in a matter of about 2 weeks.

They don't buy the links because they expect people to actually find them on those directories/sites. They buy the links because they are still valuable in small niches.

Most auto dealerships don't spend a lot of time building links. Therefore, if you take the time to buy links from some crappy directory, then you have X amount more links than your competitor. Google doesn't have much else to judge the rank since building links isn't too high of a priority, so the site with the most (albeit low quality) links will prevail.

Throw a site with lots of natural, reputable links into the mix though, and I believe you will have a different scenario. That's the hard part thuogh ;)

Is Your Dealers SEO Strategy Ethical & Long Term?

@Kyle Suss I agree that the older demographic is going to link to your site naturally. I just don't understand why people are willing to throw away so much money on people building links that really have no relevance. Lets say your site has 10,000 backlinks pointing to it, out of those 10,000 links how many of those domain names are showing up as a referral in your analytics reports?

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