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TrueCar Scam on Dealerships - Transparency For ALL?

...or you could look at it like.. the better the deals consumers see, the more cars they buy. The more cars consumers buy, the higher the market share for the OEM and then more inventory can be sold to the dealer.... and back to the beginning. Just another perspective. 

I don't know what a franchise agreement says so I don't know what they can and can't do with the data. Data these days gets thrown through so many routes, there's no telling which data waypoint is "sharing" it..

TrueCar Scam on Dealerships - Transparency For ALL?

Dear "Guess a Lot",

Wouldn't any OEM reselling a Dealers financial transaction data to a 3rd party create franchise violations, or at least franchise litigations "(read: class action & expensive)

Would not an OEM realize that reselling this data would not increase market share? (when all OEMs are on TrueCar, then no market share leverage exists)

TrueCar Scam on Dealerships - Transparency For ALL?

Ok, then I want you to produce a list of vendors that have dealer transaction data. You write:

"Dealers have been sending their transactional and inventory data to 3rd parties for YEARS. This isn’t some new phenomenon that’s all of a sudden appearing. Everyone wants to single out TrueCar when, in fact, TrueCar is only ONE OF MANY companies that have their data"

I want you to list the MANY names of vendors that have dealers transactional data. You offered one "has been" company, Autotropolis that disappeared long ago.

TrueCar Scam on Dealerships - Transparency For ALL?

From what Ive been told, HomeNet terminated its relationship with TrueCar awhile ago (I think post-AutoTrader-sale) so their software isn't even in IOL Pro anymore so they can't be getting any info from HomeNet. I dont know any more than that. I stopped working for HomeNet in Oct. 2010.

ZMOT is the Stupidest, Most Brilliant Idea Ever!

Eric,

I think this completely over-complicates ZMOT.

A lot of advertising / marketing concepts are developed by advertisers, not marketers. For example, Proctor & Gamble's advertising budget is larger than any single global agency. A lot of what we use today comes from companies like them - not marketers.

Take reach and frequency for example - it was not developed by an advertising agency - but a global marketer. The 'moment of truth' concept was created by Google. It was a pre-existing concept.

A global marketer developed a concept called the first moment of truth and the second moment of truth. A consumer is stimulated (not necessarily advertising), then goes to the store and interacts with the product (could be packaging like orange juice or an experience like buying a car), then purchases the product and uses it. The 'first moment of truth' concept was simply confirmation that the initial interaction with a product or service was influential - not just whether the product or service was actually effective of well received.

The ZMOT concept is that the Internet, either research or social, is a new step in the process and and has an effect on the purchase process. 

IT'S THAT SIMPLE.

What's revolutionary or BS is how influential the moment of truth is. I would assume vAuto assumes that it is. My clients who use vAuto have drastic sales improvements when they use the tool - because they become more effective at pricing their vehicles compared to others online.

AGAIN, ITS THAT SIMPLE. There's another step of the process now and depending on your industry IT CAN BE VERY INFLUENTIAL. There's a lot of research done on this (not just a concept grown to sell ads) where they hook biometric sensors up to people and measure their temps, pulses and brainwaves as they shop online and dig deep into the process.

If you read more into it, you're missing the forrest for the trees.

ZMOT is the Stupidest, Most Brilliant Idea Ever!

Eric, I'm not anti-ZMOT at all. I do think it is a little too simplistic.

As to stimulus, volumes of work have been published on the subject. Being a little factitious here but, did either ad stimulate you into a dealership? Or is it more likely that you filed away the positive thoughts you had for these cars to maybe be pulled out after you have self-identified a need for a new car? I'm asking if these external ad messages were enough to put you in-market for a vehicle. If they did you'd be the exception to the rule.

ZMOT is the Stupidest, Most Brilliant Idea Ever!

Ed, 

I thought for a moment you were channeling Larry with this article's title...I'm still a bit confused why the sudden rash of anti-ZMOT sentiment.

As for ZMOT NOT creating stimulus - I disagree with that, here's 2 examples. I saw a print ad, yes - a print ad for the new Ford Explorer. That caught my eye for whatever reason and since then, I am very interested in getting one of the new models. Also, my wife leaps out of her seat whenever the new Mercedes ads run - she loves them and that created stimulus. 

If we already knew that the average automotive shopper can be exposed to over 18 potential channels and contemplate an average of 3.8 vehicles before purchase, then why are we calling ZMOT ridiculous? Use these channels, exploit them, saturate them - do whatever you need to do to get your brand, your story & your customer's experiences out there so that is can influence other people in your markets.

Sure, the argument is made that ZMOT doesn't factor intent. Big deal. Get your message out there every single day and you'll just become a machine.

This is simply a pretty way of describing the concept; Google is great at doing that: Come up with a sticky acronym, dress it up with pretty colors and make the content available to everyone in the universe via a free eBook. 

I do agree 100% Ed, if anything, ZMOT should be used as a tool to create the onboarding needed at the staff level to ensure the experience and process don't misfire. Doing so will simply create even more ZMOT opportunities. 

You Have an Evil Customer Sabotaging Your Dealership

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There is one customer who seems to have purchased from almost every dealership in the country. He is a master of disguises – sometimes he’s the nicest, little old lady and the next day he could be a first time car buyer. It is amazing how much this guy gets around but even more amazing is the ongoing damage he causes:

  • Preventing your other customers from receiving your email messages because he’s convinced email providers like AOL and Hotmail that you’re not a reputable company.
  • Over-inflating the amount of customers you have with email addresses by 10% or more.

Who is this guy and why does he have such an impact?

He has a few aliases, two popular ones are: “Does Not Have” and “Would Not Give.” You can probably look him up in your database right now by doing an email search for “DNH” or “WNG” and you’ll find tons of returns for:


But sometimes he’s a little sneakier and you’ll find him under:


The possibilities are really endless.

What is really happening is your employee is asking a customer what their email address is and when the customer declines, your employee inputs in the bad email address to get credit for asking - not realizing that a bad email is much worse than no email.

While some 3rd party vendors sending your emails will do a data hygiene audit to remove these bad addresses, I’m guessing the email broadcasts coming from your dealership do not.

When you send a dealership email broadcast with a high bounce rate due to bad email addresses, the email providers (Yahoo, Gmail, AOL) take note of that and use it as one of their determining factors in whether your email message gets delivered to your customer’s inbox, spam folder, or blocked entirely.

Send enough dealership email broadcasts with high bounce rates and soon you’ll find yourself with a bad sender reputation and your deliverability rate to all of your customers can suffer.

Additionally, most 3rd party vendors sending email on your behalf, base some of their pricing on the number of emails in your list. If you’re paying to send to [email protected] then you’re raising your price unnecessarily.

What can you do?

  1. Educate your employees on the problems with entering false email addresses. If they need to enter something to show they asked, then enter “declined” without the .com extension. By not including “.com” in the field most email programs won’t import that address so you’ll avoid the bad send. (If the email field requires a “.com” then enter nothing.)
  2. Clean-up your database to remove bad emails. You won't have emails for your entire database so it may not be as large of a project as you think.
  3. Develop a confirmation email process to validate new emails that are entered.
  4. If your customers are receiving a benefit for signing up for your email notifications, email that benefit. So rather than hand them a $5 service coupon for joining your list, email them that coupon.

Online marketing options seem to change daily but basic marketing principles still hold true – collect accurate data on your customers so you can market to your base... which is almost always more profitable than the cost to find and convert a new prospect.

Has the master of disguises visited your dealership?

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