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The Evolution of an Automotive Customer

@Jeff, we are just using the Flip share software that is installed on the camera. I have found that if you do a quick demo (setup a test lead, hit stopwatch when it arrives in CRM, go outside and do a quick clip of the car and sales rep, go inside and send it, stop the watch...) and the sales rep sees how quick and simple you can send it, then the idea is quickly embraced...

The Evolution of an Automotive Customer

Jerry -

I sort of agree with your evolution concept, although I think that the internet is far more interactive than just "words" - I really like the Flip Video and HallMark Cards ideas.

My BHAG is to decipher WHY the prospect who contacts me via an internet lead CHOSE to do that rather than the alternatives??? If we all agree that roughly 20% of the traffic will actually fill out a form to submit a lead...can we then figure out if they are somehow unique? If they are unique, can we construct the proper response which will gain the best engagement ratio???

Great topic - thanks for the stimulation!

The Evolution of an Automotive Customer

@Larry - agreed, email is for many the preferred method of communication, and you can see that with your website analytics. Most of these folks are shopping during work hours today and likely don't want to be heard on the phone with a car dealer when they are supposed to be working...

Flip is working great. Of course, there are always issues with some email domains (especially work domains that can have extensive filters) - BUT - this can also be used as the opportunity to speak on the phone when letting them know you sent them a short video.

Love the ecard idea Larry - creative idea that makes a lot of sense!

The Evolution of an Automotive Customer

Woa.. a hallmark card. Thats slick! Got to revisit JibJab too!

One of my rules to email sales sanity, is to ALWAYS lead with a good question that can spark a dialogue and test your shoppers commitment to the process (see Alex's http://www.dealerrefresh.com/moving-company-lead-...

Smoking out the noise and getting the dialogue rolling is not easy. Its easy to become an "information appliance" for the shopper. Flipping the tables and becoming the "Tour Guide" takes effort and skills.

Selling the appointment and not the car is the quickest path to the sale and has the highest ROI, but, you've got to build that rapport (read: qualify) before they trust you to cross the bridge.

IMO, the opening question, building rapport and selling the appointment are where its at!

The Evolution of an Automotive Customer

Kevin I would go so far as to say they hide behind email, that's just the most convienient way for some people to commuicate or in some cases just what they prefer.

In anycase you're right any successful dealer will have work on and improve skills in all forms of communication.

Flip video is an interesting concept. Have you had any trouble wiht blocked emails with attached video, we ran into that in 2004 with a video email program at AIM. Curious to see if one email one video gets thru.

All another great tactic that works really well for us when responding by email is to send the response back with a Hallmark free ecard http://www.hallmark.com/product/ecards/miss-you

They ALWAYS get opened and you're memorable when we started useing this our customer engagment went up over 300%

hope that helps

The Evolution of an Automotive Customer

Nice article Jerry, and good thread. Note that our desired priority of communication is the opposite of what most modern prospects want (we want showroom ups, prospects want to hide behind their email). Why? The modern day consumer does not want to experience the traditional high pressure sales-tactics and lack of information they had in the past when negotiating.

The pendulum has shifted, and control has moved with it to the consumer, who has much greater knowledge and can choose how they interact with us. Future dealers will be unsuccessful if they sit on their thumbs, and still wait for and only focus on their showroom ups. Successful dealers will learn and master how to work with prospects in every mode of communication.

On a side note - you can integrate voice inflection and facial expressions with an email lead - use Flip video! Photos and video allow you to personalize yourself and build value in the Internet lead process.

Look forward to seeing you in Vegas at DD9 Jerry... Kevin

The Evolution of an Automotive Customer

I don't disagree with what your saying Larry.

If it's an Internet lead and I can reach the customer on the phone, I will then increases my chances of overcoming any price objections I may face while on the phone. In an e-mail I won't ever hear from them again if they don't like what I have to say. Obviously when the customer visits the dealership it becomes a whole new ballgame.

These are the points I was trying to make with my article.

The Evolution of an Automotive Customer

Understanding customer behavior is paramount. Basically Jerry is just conveying how important it is to recognize the path in which customers are communicating with you. If you don't possess the skill set to interact properly in each stage you are missing business. In other words stop short cutting and become a Master at all facets of the game. Great post Jerry!! BTW Shawn Morse and I have been spreading major rumors about you. Larry take some time and revisit the post I think you've overlooked a thing or two.

The Evolution of an Automotive Customer

What I am saying is don't do the mexican hat dance arround the price. Just put it out there in your response right up front. Hell at motortrends we just put it on the website and it is what it is.

Then follow up like you would, any normal up. Then sell what you can do to make the buying process more cofortable for the cusotmer.

Money Back Guarantee

Home Delivery

Free scheduled maintainence

Use trade in values as a competitive advantage

Do these things but don't skirt arround the price. That is the number one killer of conversion, appointment and sale.

The Evolution of an Automotive Customer

Barry Wrote: "I agree with Larry, the key is to understand what motivates a prospect to become a customer."

Barry,

I always tell salespeople that when they start thinking like a customer and understanding the customer from a different perspective, it does make it easier to associate with the customer and earn their business.

With an Internet lead you're only "words" on a computer screen. With the phone you have "words & tones." In person you have all the behavioral cues that make a salesperson good. They are: words, tones, gesture, posture & facial expressions.

Where do you think you have the best chance of establishing a personalized relationship with a customer? Obviously in person. If you can advance a customer from one stage to the next, you're progressing in the right direction. Now that's what I mean when I talk about evolving.

The Evolution of an Automotive Customer

I agree with everything you said. I work in an internet office working emails and phone calls. The phone calls are by far the most productive. Emails do take a lot of time to follow up and the response to them is very small. When they send a phone number with the email, I call them and the response is as good or better than the phone calls coming in. Good article!

The Evolution of an Automotive Customer

"The lowest form of customer evolution is the Internet"

Huh?

That's a pretty broad generalization, especially given the extent to which rapport can be developed online prior to phone, and prior to the store. Customers continue to shop for a salesperson, whether on the website, email, chat, phone, or the in-store, these are all just different elements of a continuum of communication. You screw up any one of those up and the result is the same.

If discount is the only tool in your kit, it doesn't matter where you give the gross away, it's still gone. But used strategically, price (not discount) is an important tool that can help prospects develop rapport with right sales person. Good thing, because that online relationship can be the difference, the connection that helps one re-engage lost customers after a poor in-store experiences.

I agree with Larry, the key is to understand what motivates a prospect to become a customer. And that's the missing ingredient, the thing that handcuffs many dealerships; price is just a symptom of the underlying failure, not the cause.

The Evolution of an Automotive Customer

Jerry first you assume this is an evolutionary process you control, you don't. These are channels you must give the customer, and you want engagement from you site however you can get it.

There are ways with good site design to get more of the type of engagement you want, but to get that engagement you will address price, you rail aginst that but you will lose.

Dealers that post pricing aren't commoditizing the business they undersand that's what customers want and we want the customers.

The dealers that optimize their sites and give customers what they want & invest in good communication skills & follow up w/ a price positioning strategy are the real winners.

Like it or not... It is what it is.

The Evolution of an Automotive Customer

customer_contact_evolution.jpgPeople generally don’t just wake up in the morning and say, “I think I am going to buy a car today.” Sure most of us would love a new car right now, but without a need or compelling event we continue to drive the car we have. Something has to happen to trigger that buying emotion. For some people that buying emotion comes and goes as quickly as a 30 second advertisement; for others it could be a year of planning and research.

When that urge does arrive, people can choose to interact with us in one of four ways, by e-mail, chat, a phone call or in person at the dealership. Thus I like to call these four contact points “the stages of a customer’s evolution.”

The lowest form of customer evolution is the Internet, we’re just a bunch words on a computer screen to one another, and unfortunately our industry does not employ a whole lot of wordsmith’s out there. Those of you just giving out prices are not even selling the value of your product or dealership! And we wonder why our industry has become so commoditized. Experts will tell you an Internet lead can often take several months to close. The problem, most of the people in our business are looking for instant gratification. Why should a salesperson follow-up with somebody for months when they can probably just look out the window and find a buyer sooner than later? Now I don’t like this anymore than you do, but this is reality. Without a rock solid follow-up process and people willing to execute, your dealership is missing opportunities.

A chat session takes us to the next step of our evolution process. Unlike an e-mail which can consume days of back and forth conversation, a chat session allows us to accomplish a lot more in a shorter time frame. According to Todd Smith, President of Active Engage, the average chat session generally last about 9 minutes. If done properly it can lead to a phone conversation where it becomes much easier to schedule the appointment.

The phone call, our next to last step in the evolution process allows us to use words and voice inflections, making it easier to secure a visit to the dealership in the form of an appointment. I can tell you from years of personal experience, it’s lot easier to paint a mental picture and build a relationship on the phone than it is to do so in an e-mail or chat session. The phone is the bridge that will help you appoint more Internet and chat customers to your dealership.

As you probably guessed, the final stage of evolution is when the customer makes the decision to visit your dealership. Now we have the ability to use all of our behavioral cues; words, tones, gesture, posture and facial expressions. This is a much more personal experience for you and the customer, and will provide you with best opportunity to earn your customer’s business.

I decided to write this article after recently observing a well recognized trainer providing his phone-up theories during an online training session hosted by a nationally recognized lead provider. This trainer, who will remain nameless, suggested that instead of giving out information on the phone, the salesperson should get the customer’s e-mail, and then e-mail that information to the customer. I couldn’t disagree with this more! You’re going backwards when you choose to employ this methodology. What if the customer does not agree with the information provided in the e-mail? On the phone we can at least try and validate our information, or overcome any objections we might face. No to mention we’re still required to phone that customer after sending the e-mail in an effort to try and secure an appointment. Getting a customer on the phone a second time can be a very difficult process. In my professional opinion, we need to make the most of that initial phone call and provide the customer with the requested information in order to try and secure the appointment. I emphasize “requested” since many salespeople go above and beyond the call of duty and provide way too much information, thus they de-motivate the customer from visiting their dealership.

In the first three phases of evolution we’re trying to sell an appointment, not a vehicle! Sell the vehicle in your showroom and you’ll close more deals.

With fewer and fewer customers visiting showrooms these days, you had better learn how to master the first three stages of evolution, that’s if you want your fair share of customers visiting your showroom.

I plan to write a follow-up to this article in the next few weeks, but first, I would like to hear your thoughts on this matter?

Third Party Lead Sources Compliment Automotive SEO Strategies

Rob

Excellent commentary and it reinforces the point of the article. Dealers need to be more aware of the marketing processes that are available to them and to test and measure each one.

I am glad that you are starting dialogue with new vendor sources because some of the names you mention are coming on strong in organic search. The SEO designer behind CarGurus.com, who I do not know, should be commended.

Since you are practitioner of Automotive SEO, it is good to hear from another peer about the need for balance.

Third Party Lead Sources Compliment Automotive SEO Strategies

Every aspect of a dealer’s business plan should be a balanced attack. Third party lead providers are not the enemy; many of them are the best vendor partners I have. I have had a very long relationship with Cars.com (New Leads Plus), and Dealix, mostly due to the above and beyond customer service that I have consistently enjoyed as well as the R.O.I. for their leads. I have worked with every third party lead provider over the years and have chosen the ones that work best for my stores.

Many have heard me use the term “Third Party Para-Sites”. To clarify I am referring to the third party sites that I have NOT chosen to represent my dealership and host my inventory, but they are doing so anyway. These sites make their way into search results where my dealers site would be a much a better choice for the consumer. Who else better to tell your story and welcome the car shopper in than the dealers own site. It only makes sense to keep page one as pure as possible.

When Brian warns that your page one results are under attack, he is correct, but don’t be too quick to identify the enemy. Have you checked your Google analytics referring sites lately? Floridacarsales.com is a site that is hosted by a marketing company called MM4. The site has every used car listed in the state and offers free car listings to anyone. These sites are most likely in your state. I have seen californiacarsales.com and several others. This site is mainly a Google ad site and does link ever car listed back to the dealer’s web site. We have been averaging 50 – 60 click throughs a month for the past few months from this site. Don’t bother trying to contact them, it is pointless.

Sites like these as well as other lead collector sites that are used by some of the big third party providers may not be who you want to represent you. Think for a moment about a time when you tried to find a product online and ended up on some bargain basement site. Well your customers end up on sites like that every day. They can see your inventory, and if you use an overlay your dealer name and logo is displayed. The problem is that the phone number as well as other information may be incorrect. Is that where you want your customers getting their first impression?
I encourage every person that is charged with the oversight of their dealers lead providers to call them and ask them to tell you what sites your cars are being exported to. You may be very surprised at what you find. Then decide for yourself if you want your cars to be shown there. I have recently had very productive conversations with the CEO of CarGURU and a director from Vast.

Understanding how they work really is more important than what has become the status quo for dealers for the past ten years. The “just get my inventory out there” mentality can hurt you in the end. You cannot imagine the twisted web that is your inventory. Yes, most of us that are on the ground at the dealer level have way more important things to do than chase our inventory down the rabbit hole, but know this; there are companies out there that are counting on that.

Third Party Lead Sources Compliment Automotive SEO Strategies

As an outspoken advocate for digital marketing education for car dealers, I often find myself captivated by the continuously changing landscape the search marketing offers.  As fast as I can learn, test, and communicate a current idea, there always seems to be something new on the horizon.

I can’t imagine how car dealers feel when they attend bi-annual automotive conferences, like Digital Dealer and DrivingSales Executive Summit, where the emerging market trends and technology tend to spin their heads.

As much as I love new concepts, strategies and opportunities, there will always be some basics that help dealers succeed online.   So before the fall conference season fills our heads with new ideas to test, let’s get back to a few basics.

SEO-origins-third-parties.gifThird Party Lead Collectors Are Automotive SEO Pioneers

Readers often associate me with Automotive SEO and my passionate appeal for dealers to understand the power of content publishing, microsites, and link building.   I have been blessed to serve the industry and have been rewarded by encouragement from dealers across the country.

Along the way, some have concluded from my teaching style that I am not an advocate for third party lead collectors and third party automotive advertising websites.   In fact, that characterization could not be farther from the truth.

All digital marketing products should be evaluated by dealers on their own merits based on the estimated Return on Investment (ROI) to the dealership.  Dealers that I work with have done their best to track and measure the benefits of third party leads and advertising and have found them to work efficiently.

I am often asked to lend assistance in determining which lead source and platforms dealers should invest in and what I have found is that dealers results in each market can vary so one vendor may not be a universal solution nationwide.

The best third party lead collection models are the ultimate testimony to the power of Automotive Search Engine Optimization (SEO).   I tip my hat to the websites that appear on Google Page One for broad popular searches like “used cars,” “cars for sale,” “sell my car,” and “cheap used cars.”   I’m building sites to join the superstar ranks but those that had the foresight years ago to build sites are being rewarded today.

Many of the most powerful lead collection websites today are successful because they built their business on the basic foundations of SEO: good content, strong data structures, and strong inbound linking strategies.  Many of these websites have great designs that appeal to consumers and in the end provide value to dealers.

Other less powerful but visible sites cast a negative shadow on the industry as they are poorly designed, filled with Google Adsense ads, and step over the line of using a car dealers name to promote their competitors cars.

The good and bad websites exist because they all are making model based on the fact the most car dealers do not engage in digital marketing strategies that are based on SEO.

With that said, if car dealers find that purchasing third party leads have a strong ROI, why would they stop that channel when they add local Automotive SEO strategies to their budgets?  The answer is they don’t.  I don’t encourage them to do so because any strategy that is add to their bottom line is a good one.

The Role of Third Party Lead Collectors

I advocate that car dealers should establish a budget for content publishing to allow them to show on Page One for the local search phrases that are attainable with a minimal investment. I have encouraged larger dealer groups to hire and train internal fulltime content writers. The additional content on their websites will improve their local search visibility and can also be leveraged on their blogs, press releases, and social media sites.



Content as a service will be in demand in 2011. I’ll be there to offer it to dealers to help them achieve greater local search visibility.

In essence, my philosophy is to empower dealers to create locally owned digital marketing assets that can appear on Page One for localized search phrases.  In general, the industry has not trained, encouraged, or mentored content writing as a skill set needed at the dealership level.  That must change.

When I encourage dealers to push third party lead collectors off Google Page One for a search on their dealership name or for local searches that they can control, it should not be assumed that third parties are not important to a dealer’s larger success. In fact, third party sources will always be a pathway for dealers to attain leads for broad phrases that dealers will never get directly.

Third Party lead collection websites and advertising platforms function in similar ways as Google Adwords.  Dealers use Adwords to appear at the top of search results for broad phrases that they cannot expect to achieve organically.    A Chevrolet dealer in Chicago may choose to purchase the phrase “2010 Chevrolet Silverado” since he does not expect his local website to be on Page One for that national search phrase.

In a similar way, third party lead generation and advertising websites like www.usedcars.com, www.automotive.com, www.edmunds.com, and www.mototrend.com appear on Google Page One for broad searches without the need for Adwords because of their outstanding Automotive SEO scorecard and brand awareness.

The best third party automotive websites are candidates for the Automotive SEO Hall of Fame.  That gives me an idea for an award J.

Jumping To A Wrong Conclusion

With that perspective, you can see how local Automotive SEO strategies and third party lead collectors can work together to benefit a dealership overall success.  Localized SEO strategies will attract a cross-section of ready to buy consumers and lead collectors will capture an additional segment that tend to use broad search phrases.

Encouraging dealers to test and evaluate the best sources for third party leads may seem to some readers as a change in position for me.  Reflecting on the potential causes of that ill formed conclusion, it would seem that my passionate appeal for car dealers to wake up and be more active in their digital marketing success has been translated as an attack on third parties.   This is not true.

I have encouraged dealers to be content publishers to achieve a degree of independence from third parties.  I want dealers to cultivate content to achieve visibility for popular local search phrases.   Today most car dealers are doing little in terms on content publishing, yet they complain about diminishing direct consumer leads.

Dealers are getting pushed off of Google Page One for common searches on their brand name, city and the cars that they sell.  This is not because third-party lead collectors or advertising platforms are mean-spirited; they are just taking advantage of a business opportunity that was open because of dealer inaction to participate in the search-marketing world.

Without direct knowledge, dealers have left their OEM brand and local PMA wide open for third parties to redirect and collect leads. I have been educating dealers on the website platforms that will best support local search dominance and the tools and services they need to capture broadly searching consumers.  The empowering of dealers in their digital marketing efforts is not implying they can do it alone.

The Best Third Party Leads Are Organic PPC

Because of the size, reputation and traffic generated by popular automotive content-rich websites, like Edmunds.com, third party websites appear for broad searches using year, make and model keywords.  Without the use of a targeted microsite, appearing on Page One for a search on “2010 Acura TL” would not be feasible for a dealer because it lacks a localized keyword to narrow down the search query.

However, third party websites do appear on Page One for broad searches and provide consumers with valuable resources which often result in a lead capture.   These leads might be captured by a dealer’s Pay Per Click (PPC) campaign or they may not.  My point is why not utilize and test both sources, and if both have a strong ROI, invest in both.

The Petri Dish of Leads

What has frustrated car dealers in the past is how these leads are packaged and sold.  What dealers perceive as higher quality lead sources  (i.e. Edmunds.com) are comingled with what dealers consider lower quality sources (i.e. Yakez.com).  There are a handful of large lead consolidation companies that purchase leads from the Automotive SEO giants and resell them to dealers.

I can’t speak about all lead consolidators, but at this past NADA Convention I sat on a panel sponsored by Dealix.  I was asked to represent leads sources generated by direct lead forms on a dealers website.

As part of the panel, which included David Kain, I learned about the Dealix Quality Pledge.  This program gives dealers the power to get credit for any leads that are confirmed to be of poor quality (bad phone number, wrong contact name, or unreachable contact).

This type of program represents a positive change in the third party lead provider industry.  Companies like Dealix want to align their interests with dealers and properly channel consumer leads to the dealer who can make the most out of them.

In this type of model, I find it hard to come up with a reason not to test and invest in third party leads. I have come to this conclusion because the leads are not likely captured by local SEO and can be accretive to sales with a money back guarantee.   Let me state it clearly: I like that model!

Finding The Balance For Automotive Digital Marketing

Successful dealers across the country are fine-tuning their digital advertising investments and attempting to measure ROI.  Dealers who are forward thinking are already planning their digital marketing budgets for 2011.

In the future with an ADF 2.0 specification and better CRM integration, dealers will get closer to measuring that ROI.  This will clear the air on what digital marketing strategies and partners deliver the best return on investment.

Until then, I am convinced that dealers need to test and invest in:

  • Google Adwords
  • Automotive SEO Strategies
  • Third Party Lead Providers
  • Third Party Inventory Advertising Platforms

I will continue to be an advocate for dealers, encouraging them to pick the low hanging fruit that can be garnered with a reasonable effort using powerful local SEO strategies.

However, dealers can not feasibility create their on national and regional automotive advertising network.  This is where dealers need assistance and the choices they have are triple what they had just two years ago.

Automotive SEO investments being made today establish a bright future for cars dealers.  In conjunction with this strategy, dealers must rely on third party sources that have the monopoly on Paid Search and Organic search real estate.  That’s the reality we live in, and I’m Paschionate about that.

If you are interested in learning more about controlling your local search results, sign-up for the DealerRefresh.com webinar that will focus on this very topic.

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