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Future of CRM
- By john.quinn
- CRM, ILM, Chat, Desking, Emails, Phone, SMS
- 40 Replies
You really have to chuckle when you step back and really see the silos through which these systems were built.
So it came to pass that God created the Internet Lead... (LOL). and 100 of these leads would hit the sales department every month. And if you were really good, you could close 15 of them. DMS has absolutely zero provision for managing this type of interaction/communication... so Lead Management and automotive's own version of CRM is born, basically so we can sell 15 cars a month...
Meanwhile, 100 people every day are calling the Service department -- and 90 of them "close." So many phone calls that we have to make a choice: answer the phone OR take care of the people in front of me. Rough.
But Service/Fixed wasn't sexy... so it came to pass that still, today, the telephone predominately serves as the path of least resistance to gain entrance to the Service Department.
Nuts
So it came to pass that God created the Internet Lead... (LOL). and 100 of these leads would hit the sales department every month. And if you were really good, you could close 15 of them. DMS has absolutely zero provision for managing this type of interaction/communication... so Lead Management and automotive's own version of CRM is born, basically so we can sell 15 cars a month...
Meanwhile, 100 people every day are calling the Service department -- and 90 of them "close." So many phone calls that we have to make a choice: answer the phone OR take care of the people in front of me. Rough.
But Service/Fixed wasn't sexy... so it came to pass that still, today, the telephone predominately serves as the path of least resistance to gain entrance to the Service Department.
Nuts
Future of CRM
- CRM, ILM, Chat, Desking, Emails, Phone, SMS
- 40 Replies
john.quinn said:
↑
100% a great idea, that last.
As a fairly decent end user I've found that none of the big name CRM companies have the full package when it comes to the full customer experience. e-Leads is starting to work with it but it's so rudimentary as to not be fully useful. On the other side, a company like AutoAlert should have thought about expanding in to the CRM market years ago. That type of full scale system that would be created, along with adding a chat and and phone monitoring system (or as you mentioned customer interfaces right online), would streamline the user experience, streamline the costs, and reduce the number of vendors a store has to deal with (and I don't know of any dealership that wouldn't like reducing vendor count). Then integrate an accounting system in to that? It would be the Mona Lisa of systems and would control the market in short order. But no one wants to take the risk because they are afraid o screwing up a good thing.
Many many years ago, in the mid-90's, Reynolds actually started to build a system with that in mind (CRM, desk, finance, and accounting all in one) but they botched the programming (I was there: it was one of the most amazing screw-ups of all time) and lost a ton of money before they scaraped the whole thing, and they haven't really taken any more risks since then.
They all have paid for systems which are cash cows that no one wants to mess around with, although I will give Dealersocket credit in that their new Bluebird (Blackbird? Not sure) does take a radical departure from their previous system. But it's still mired in old thinking of what a CRM should be.
It will be a startup that makes it happen, not any of the established players.
↑
I respectively have to disagree here... are there actually CRM's who DO NOT have the basic features mentioned above today?
Building features is easy! Building features that streamline existing, sometime intricate processes is a completely different story.
Features that do not seamlessly integrate with the accounting system are quickly tossed-aside. Features that add to an already cluttered desktop are quickly discarded.
I have a small bit of experience in this arena -- here's another truth: talk to 10 dealers about their 10 absolute MUST HAVE features, and you will certainly end-up with a list of 100 features. And these 100 different features will have to work for 100 different processes.... and you start to get the most basic inkling of why the marketplace is so differentiated -- absolutely no such thing as One Size Fits All.
Now... build something so that your customers are using the same set of tools as your staff... my ears perk-up a bit
Click to expand...
100% a great idea, that last.
As a fairly decent end user I've found that none of the big name CRM companies have the full package when it comes to the full customer experience. e-Leads is starting to work with it but it's so rudimentary as to not be fully useful. On the other side, a company like AutoAlert should have thought about expanding in to the CRM market years ago. That type of full scale system that would be created, along with adding a chat and and phone monitoring system (or as you mentioned customer interfaces right online), would streamline the user experience, streamline the costs, and reduce the number of vendors a store has to deal with (and I don't know of any dealership that wouldn't like reducing vendor count). Then integrate an accounting system in to that? It would be the Mona Lisa of systems and would control the market in short order. But no one wants to take the risk because they are afraid o screwing up a good thing.
Many many years ago, in the mid-90's, Reynolds actually started to build a system with that in mind (CRM, desk, finance, and accounting all in one) but they botched the programming (I was there: it was one of the most amazing screw-ups of all time) and lost a ton of money before they scaraped the whole thing, and they haven't really taken any more risks since then.
They all have paid for systems which are cash cows that no one wants to mess around with, although I will give Dealersocket credit in that their new Bluebird (Blackbird? Not sure) does take a radical departure from their previous system. But it's still mired in old thinking of what a CRM should be.
It will be a startup that makes it happen, not any of the established players.
Future of CRM
- By jscole86
- CRM, ILM, Chat, Desking, Emails, Phone, SMS
- 40 Replies
Last time 
@Alex Snyder wrote some blog posts on crm related stuff, a new crm popped up not too long after. What's taking so long Alex...? haha
@Alex Snyder wrote some blog posts on crm related stuff, a new crm popped up not too long after. What's taking so long Alex...? hahaFuture of CRM
- By john.quinn
- CRM, ILM, Chat, Desking, Emails, Phone, SMS
- 40 Replies
Baron Ringler said:
↑
I respectively have to disagree here... are there actually CRM's who DO NOT have the basic features mentioned above today?
Building features is easy! Building features that streamline existing, sometime intricate processes is a completely different story.
Features that do not seamlessly integrate with the accounting system are quickly tossed-aside. Features that add to an already cluttered desktop are quickly discarded.
I have a small bit of experience in this arena -- here's another truth: talk to 10 dealers about their 10 absolute MUST HAVE features, and you will certainly end-up with a list of 100 features. And these 100 different features will have to work for 100 different processes.... and you start to get the most basic inkling of why the marketplace is so differentiated -- absolutely no such thing as One Size Fits All.
Now... build something so that your customers are using the same set of tools as your staff... my ears perk-up a bit
↑
I respectively have to disagree here... are there actually CRM's who DO NOT have the basic features mentioned above today?
Building features is easy! Building features that streamline existing, sometime intricate processes is a completely different story.
Features that do not seamlessly integrate with the accounting system are quickly tossed-aside. Features that add to an already cluttered desktop are quickly discarded.
I have a small bit of experience in this arena -- here's another truth: talk to 10 dealers about their 10 absolute MUST HAVE features, and you will certainly end-up with a list of 100 features. And these 100 different features will have to work for 100 different processes.... and you start to get the most basic inkling of why the marketplace is so differentiated -- absolutely no such thing as One Size Fits All.
Now... build something so that your customers are using the same set of tools as your staff... my ears perk-up a bit
3rd Party Classifieds Battle to Win-the-Click
One of the questions I receive most often from dealers is whether or not they are overpaying for their third-party classifieds. The dealers overall agree that third-party classified sites (*TPCs) are a foundational element in a successful digital marketing strategy, however they are concerned as the pricing has continued to climb over the years. It seems to be a love/hate relationship.
The TPC space is currently experiencing a significant disruption, as CarGurus is capturing market share from the other two established players, or at the very least applying significant downward price pressure. Cars.com and Autotrader have responded with innovations and changes designed to combat the new CarGurus pressure, but as I advise dealers, let the numbers and results speak for themselves...
Each month, as I sit down with dealers and discuss their results from the big three TPCs, we discuss the many success metrics available. There is of course the reporting available in each of the TPCs’ dealer consoles. However, we also look at Google Analytics referral data, including Multi-Channel Funnel assisted conversions. I help dealers calculate cost per VDP (vehicle detail page), cost per lead, and other important ratios.
One of the most overlooked ratios is the VDP-to-SRP ratio for each of the TPCs. This is the ratio that shows how often a dealer “wins the click” from the SRP (search results page) to the VDP. These ratios vary from month to month throughout the year by dealership, and most importantly by each TPC.
There are many different elements that can affect this for dealers, including effective merchandising, competitive pricing, and scarcity of specific makes and models. By studying the VDP-to-SRP ratio, you can find many interesting data points and come to a number of conclusions. For instance, when dealers downgrade a package with one of the TPCs, receiving less spotlight or featured ads, their VDP-to-SRP ratio will go up, often doubling the prior number. On a side note, while these dealers will see a drop in the raw number of VDPs, the actual number of leads (email, phone, chat) typically only decreases slightly.
My conclusion is that since these featured ads do not follow the consumers search parameters, the shopper simply scrolls past and doesn’t click on the VDP. I know that is my behavior, since I know these listings don’t match my search criteria. That is why I educate dealers to measure ROI performance indices for the TPCs, including cost per VDP and cost per lead to be sure they are spending their limited marketing dollars wisely.
There is also a sharp difference across the board for VDP to SRP ratios for the big three TPCs. Autotrader and Cars.com are typically the same, around 1.5 to 2.0. CarGurus on the other hand is much lower, around 0.5 to 1.0. Opinions may vary, but my conclusion is that their dealer ratings, and “deal ratings” (i.e. good deal, great deal) cause shoppers to be choosier on clicking on VDPs.
Here is a look at the big 3 TPC SRPs:
CarGurus' SRP (above) has 15 vehicles per page, and as mentioned contain both dealer ratings and deal ratings. Not a bad SRP, but would be better with indicators on multiple photos, videos, etc.
Autotrader's SRP (above) has 25 vehicles per page. They recently changed their SRP pages and eliminated many elements in the process. Autotrader removed the ability to list multiple prices (i.e. MRSP, and discounted price). They also removed the indicator of multiple photos, and transmission. I’m not sure if they are trying to drive more VDPs by forcing the consumer to click through, or perhaps trying to speed up the pages. Either way the ATC SRP is my least favorite, from both a consumer and dealer perspective.
Cars.com's SRP (above) has 50 listings per page, and is by far the most consumer-friendly and dealer-friendly. They display multiple prices, multi-photo indicator, transmission included, as well as a clear call-to-action.
In the end, the TPCs serve two masters, both creating a great shopping experience and driving results for the dealers paying for the listings. Helping dealers get their cars in front of the consumer is only the beginning. I feel the TPCs need to help the dealers “win the click” if their vehicle is a better fit for the shopper. By putting better information on the SRP, they both help the consumer speed up the shopping process and help the dealer deliver the right vehicle to that consumer.
In my opinion, forcing consumers to click through to the VDP for needed details will only frustrate those shoppers in the long run.
What do you think? Comment and Join the conversation over in our dealer forums!
The TPC space is currently experiencing a significant disruption, as CarGurus is capturing market share from the other two established players, or at the very least applying significant downward price pressure. Cars.com and Autotrader have responded with innovations and changes designed to combat the new CarGurus pressure, but as I advise dealers, let the numbers and results speak for themselves...
Each month, as I sit down with dealers and discuss their results from the big three TPCs, we discuss the many success metrics available. There is of course the reporting available in each of the TPCs’ dealer consoles. However, we also look at Google Analytics referral data, including Multi-Channel Funnel assisted conversions. I help dealers calculate cost per VDP (vehicle detail page), cost per lead, and other important ratios.
One of the most overlooked ratios is the VDP-to-SRP ratio for each of the TPCs. This is the ratio that shows how often a dealer “wins the click” from the SRP (search results page) to the VDP. These ratios vary from month to month throughout the year by dealership, and most importantly by each TPC.
There are many different elements that can affect this for dealers, including effective merchandising, competitive pricing, and scarcity of specific makes and models. By studying the VDP-to-SRP ratio, you can find many interesting data points and come to a number of conclusions. For instance, when dealers downgrade a package with one of the TPCs, receiving less spotlight or featured ads, their VDP-to-SRP ratio will go up, often doubling the prior number. On a side note, while these dealers will see a drop in the raw number of VDPs, the actual number of leads (email, phone, chat) typically only decreases slightly.
My conclusion is that since these featured ads do not follow the consumers search parameters, the shopper simply scrolls past and doesn’t click on the VDP. I know that is my behavior, since I know these listings don’t match my search criteria. That is why I educate dealers to measure ROI performance indices for the TPCs, including cost per VDP and cost per lead to be sure they are spending their limited marketing dollars wisely.
There is also a sharp difference across the board for VDP to SRP ratios for the big three TPCs. Autotrader and Cars.com are typically the same, around 1.5 to 2.0. CarGurus on the other hand is much lower, around 0.5 to 1.0. Opinions may vary, but my conclusion is that their dealer ratings, and “deal ratings” (i.e. good deal, great deal) cause shoppers to be choosier on clicking on VDPs.
Here is a look at the big 3 TPC SRPs:
CarGurus' SRP (above) has 15 vehicles per page, and as mentioned contain both dealer ratings and deal ratings. Not a bad SRP, but would be better with indicators on multiple photos, videos, etc.
Autotrader's SRP (above) has 25 vehicles per page. They recently changed their SRP pages and eliminated many elements in the process. Autotrader removed the ability to list multiple prices (i.e. MRSP, and discounted price). They also removed the indicator of multiple photos, and transmission. I’m not sure if they are trying to drive more VDPs by forcing the consumer to click through, or perhaps trying to speed up the pages. Either way the ATC SRP is my least favorite, from both a consumer and dealer perspective.
Cars.com's SRP (above) has 50 listings per page, and is by far the most consumer-friendly and dealer-friendly. They display multiple prices, multi-photo indicator, transmission included, as well as a clear call-to-action.
In the end, the TPCs serve two masters, both creating a great shopping experience and driving results for the dealers paying for the listings. Helping dealers get their cars in front of the consumer is only the beginning. I feel the TPCs need to help the dealers “win the click” if their vehicle is a better fit for the shopper. By putting better information on the SRP, they both help the consumer speed up the shopping process and help the dealer deliver the right vehicle to that consumer.
In my opinion, forcing consumers to click through to the VDP for needed details will only frustrate those shoppers in the long run.
What do you think? Comment and Join the conversation over in our dealer forums!
4-Point Checklist Before You Send Your Next Video
- By johncolban
WE'VE LAID OUT ALL OF THE ESSENTIALS FOR YOU!
Don't press record without scanning through these four pillars of making a successful video. The biggest mistake salesmen, (and women), make in sending videos is focusing on just one or two of the categories below. If you're someone who's looking to reach full potential in using video to sell cars, you'll master ALL four areas. Start today, and see what a difference it makes!
Technical
- Are you recording in landscape mode?
- Make sure your orientation setting isn't locked.
- Set your first name frame appropriately, This will be the video thumbnail.
Personalization
- Do you know your customers purchase history?
- Do you know your customers name?
- Did they ask to see anything specific? If so be prepared to show that first.
Vehicle
- Do you know the vehicles history– Previous owners, accidents, etc.?
- Do you know what features you will be highlighting?
- Are you prepared with at least to switch vehiclesTo mentioned
Sales
- What can you mention that allows your customer to visualize themselves owning the car
- Do you have a mental checklist you run through before sending a video?
- Be prepared with a specific Call To Action.
Sound off in the comments!
(To download and save this checklist, click here.)
Address the Problem: Stop Making Panic Decisions
- Off Topic & Everything Else
- 0 Replies
Though I rarely have time to go to such things today, family reunions are a great place to hear stories about your relatives, some of which reach legendary status. As it so happens, one of my distant cousins was a Naval Aviator who got to fly the real star of Top Gun, the Grumman F-14 Tomcat. However, unlike other stories you might hear about heroics over the Persian Gulf or going supersonic during an airshow, my cousin did quite the opposite. He dumped a $38 million aircraft into the ocean.
Although I wasn’t in the Navy, one can easily imagine that it’s a complicated feat to launch a 60,000 pound aircraft off of the moving deck of a nuclear-powered aircraft carrier. It takes the coordinated effort of thousands of people, not just the pilots and the sailors on the deck. All of these people have processes and procedures that must be followed to the letter to ensure that personnel doesn’t get hurt, machinery doesn’t get damaged, resources don’t get squandered, and that support can reliably be delivered to fellow service people when in need. These actions grew out of much planning, iterative design, with careful trial and error, all measured with the keenest eye to detail, not a knee-jerk reaction.
As the reality of a slower market is setting-in across automotive showrooms throughout North America, panic decisions are starting to take place at a rapid pace. Instead of trusting in the people, partners, and processes that have worked for years, multiple issues are being addressed at once, with little thought given to how many small and interactive variables are being disrupted.
Sure, if you pushed every key on a pipe organ at the exact same time, a C major chord would be playing, but how the hell would you know? It would sound like noise. It’s like selling off your entire investment portfolio because one stock isn’t performing well, or turning off every switch in an airliner cockpit to extinguish the reading lamp at seat 21C, or burning your house to the ground because it’s messy, or euthanizing the family dog because she has fleas. Thank God we haven’t nuked California to get rid of the Kardashians.
Don’t get me wrong, nuking California might be worth it to get rid of the Kardashians…
All joking aside, it is always a good time to start evaluating assets when things slow down. The operative words here are start and evaluate. When we start, it automatically implies that there is a stop. It doesn’t necessarily have to be a complete stop. It can be a finite interval such as a race lap where the clock stops, yet we keep going on for the next lap. It can be a certain day on the calendar where there is a tomorrow. It could be as simple as from open to close of business. We need to pick a timeframe to base our measurements on. It’s always best to compare year-over-year to smooth out natural seasonal fluctuations (more on that in a second). If the game goes on forever, who wins?
When it comes to evaluating, the first question to yourself should be what can I measure? The very next question should be how can I repeatedly measure it in an accurate way? If you’re not asking yourself that question, everything is left to interpretation. Metrics, like how many outbound calls per car sale, per month, seem like a simple thing to measure. However, does that number take into account calls made from cell phones, home phones, and unlogged office calls? How does that mix change on a month-to-month basis? If the answer is “I don’t know,” then you can’t repeatedly measure it in an accurate way. Sometimes a true yardstick isn’t available, but it doesn’t mean you can’t craft your own. If it’s higher or lower on your scale, then you know, providing you use that scale the same way every single time.
On a final note, stay grounded in reality. I just checked a few minutes ago to verify that we’re not living in a communist country. The answer is not quite yet. There are market forces that exist that will impact your business, no matter how much manpower, inventory, and money you throw at a problem. Accept it or go crazy. You pick.
Let’s take a deeper dive into this. Whether you are a Hyundai dealership or a Toyota dealership, the bread and butter vehicles you’ve depended on are not as dependable as they once were. The mid-sized car market is circling the drain right now, despite the advertising, incentives, personnel, site doodads, machine learning, and Google tools that are available.
For the purposes of demonstration, I chose the Camry, which has been the best selling car in the US for the better part of 25 years, and the middle of the pack Hyundai Sonata as an analog for the best of the rest. The graph to the left not only demonstrates a “whoa-Nelly” decline over the past three years, but also demonstrates wild gyrations from month to month. For the math nerds, the +/- on the Camry is a whopping 4,801.85 units, while the Sonata’s is a jaw-dropping 5,112.71 units. In other words, it’s normal for your sales volume to fluctuate as much as 14.85% for the Camry, and a mind-boggling 40.75% for the Sonata. Maybe instead of quadrupling down on resources to prop up a struggling segment of your market, those resources could be allocated in acquiring vehicles that customers are interested in. Like new or used TRUCKS. If Ford can make the decision to reduce its reliance on certain vehicles, so can any dealership.
Data Source: GoodCarBadCar.net, DealerKnows
If the Hitchhiker’s Guide to the Galaxy (along with every safety class we’ve ever taken) has taught us one thing, it’s not to panic. When we panic, we tend to make irrational decisions. That’s why our military and first responders train continuously. They take a breath to measure the situation, recall their training, and act accordingly. They don’t bust out the defibrillator for a fractured leg or launch a ballistic missile over a border encroachment. They take a deliberate and incremental approach to addressing the situation at hand while minimizing the risks of further intensifying the problem. If you make a panic decision by scrapping everything you know, and by changing everything at once, you double your risk of both making it worse and not understanding how to achieve repeatable success.
In the case of my cousin, it all boiled down to a switch not being properly activated so that his fuel level was correctly displayed. Upon takeoff, the fuel gauge read zero, which forced the decision to immediately diagnose the problem, or save his and his copilot’s life. After they were fished out of the water, it was later determined that the crew did check all of the right boxes, and all of the procedures were followed to the letter. My cousin didn’t trust in the system. It cost him his wings.
Although I wasn’t in the Navy, one can easily imagine that it’s a complicated feat to launch a 60,000 pound aircraft off of the moving deck of a nuclear-powered aircraft carrier. It takes the coordinated effort of thousands of people, not just the pilots and the sailors on the deck. All of these people have processes and procedures that must be followed to the letter to ensure that personnel doesn’t get hurt, machinery doesn’t get damaged, resources don’t get squandered, and that support can reliably be delivered to fellow service people when in need. These actions grew out of much planning, iterative design, with careful trial and error, all measured with the keenest eye to detail, not a knee-jerk reaction.
As the reality of a slower market is setting-in across automotive showrooms throughout North America, panic decisions are starting to take place at a rapid pace. Instead of trusting in the people, partners, and processes that have worked for years, multiple issues are being addressed at once, with little thought given to how many small and interactive variables are being disrupted.
Sure, if you pushed every key on a pipe organ at the exact same time, a C major chord would be playing, but how the hell would you know? It would sound like noise. It’s like selling off your entire investment portfolio because one stock isn’t performing well, or turning off every switch in an airliner cockpit to extinguish the reading lamp at seat 21C, or burning your house to the ground because it’s messy, or euthanizing the family dog because she has fleas. Thank God we haven’t nuked California to get rid of the Kardashians.
Don’t get me wrong, nuking California might be worth it to get rid of the Kardashians…
All joking aside, it is always a good time to start evaluating assets when things slow down. The operative words here are start and evaluate. When we start, it automatically implies that there is a stop. It doesn’t necessarily have to be a complete stop. It can be a finite interval such as a race lap where the clock stops, yet we keep going on for the next lap. It can be a certain day on the calendar where there is a tomorrow. It could be as simple as from open to close of business. We need to pick a timeframe to base our measurements on. It’s always best to compare year-over-year to smooth out natural seasonal fluctuations (more on that in a second). If the game goes on forever, who wins?
When it comes to evaluating, the first question to yourself should be what can I measure? The very next question should be how can I repeatedly measure it in an accurate way? If you’re not asking yourself that question, everything is left to interpretation. Metrics, like how many outbound calls per car sale, per month, seem like a simple thing to measure. However, does that number take into account calls made from cell phones, home phones, and unlogged office calls? How does that mix change on a month-to-month basis? If the answer is “I don’t know,” then you can’t repeatedly measure it in an accurate way. Sometimes a true yardstick isn’t available, but it doesn’t mean you can’t craft your own. If it’s higher or lower on your scale, then you know, providing you use that scale the same way every single time.
On a final note, stay grounded in reality. I just checked a few minutes ago to verify that we’re not living in a communist country. The answer is not quite yet. There are market forces that exist that will impact your business, no matter how much manpower, inventory, and money you throw at a problem. Accept it or go crazy. You pick.
Let’s take a deeper dive into this. Whether you are a Hyundai dealership or a Toyota dealership, the bread and butter vehicles you’ve depended on are not as dependable as they once were. The mid-sized car market is circling the drain right now, despite the advertising, incentives, personnel, site doodads, machine learning, and Google tools that are available.For the purposes of demonstration, I chose the Camry, which has been the best selling car in the US for the better part of 25 years, and the middle of the pack Hyundai Sonata as an analog for the best of the rest. The graph to the left not only demonstrates a “whoa-Nelly” decline over the past three years, but also demonstrates wild gyrations from month to month. For the math nerds, the +/- on the Camry is a whopping 4,801.85 units, while the Sonata’s is a jaw-dropping 5,112.71 units. In other words, it’s normal for your sales volume to fluctuate as much as 14.85% for the Camry, and a mind-boggling 40.75% for the Sonata. Maybe instead of quadrupling down on resources to prop up a struggling segment of your market, those resources could be allocated in acquiring vehicles that customers are interested in. Like new or used TRUCKS. If Ford can make the decision to reduce its reliance on certain vehicles, so can any dealership.
Data Source: GoodCarBadCar.net, DealerKnows
If the Hitchhiker’s Guide to the Galaxy (along with every safety class we’ve ever taken) has taught us one thing, it’s not to panic. When we panic, we tend to make irrational decisions. That’s why our military and first responders train continuously. They take a breath to measure the situation, recall their training, and act accordingly. They don’t bust out the defibrillator for a fractured leg or launch a ballistic missile over a border encroachment. They take a deliberate and incremental approach to addressing the situation at hand while minimizing the risks of further intensifying the problem. If you make a panic decision by scrapping everything you know, and by changing everything at once, you double your risk of both making it worse and not understanding how to achieve repeatable success.
In the case of my cousin, it all boiled down to a switch not being properly activated so that his fuel level was correctly displayed. Upon takeoff, the fuel gauge read zero, which forced the decision to immediately diagnose the problem, or save his and his copilot’s life. After they were fished out of the water, it was later determined that the crew did check all of the right boxes, and all of the procedures were followed to the letter. My cousin didn’t trust in the system. It cost him his wings.
NADA: Internet Advertising tops 50%, TV & Radio Lose
I carefully navigated the NADA website, clicking the button to download one of my favorite semi-annual automotive industry reports.
I had heard the 2017 results were finally available, and I was anxious to dive into the data. I double-clicked to open the report, quickly scrolling to the “Advertising Expenditures” section. And then…my jaw dropped.
I’m not sure why I was so surprised, perhaps it was just affirmation of what I saw starting in the late 1990s: The birth of the internet advertising segment for automobile dealers.
For the past 20-plus years, I’ve relied on the “NADA DATA” report. If you haven’t used this resource in the past, you definitely should. It is extremely detailed, reliable (NADA, of course!), and gives you solid summary of the prior year’s results for the automotive industry. Click here for free downloads from the NADA site: rdnada | Generations Digital
Here is the stat that dropped my jaw...
The percentage of total advertising spend for internet media jumped from 33.6% to 55.4%!
That’s right, Internet as a media segment is now 55.4% of retail dealerships annual advertising budget, or $26,750 per month. I know what you’re saying, didn’t this happen a long time ago? According to NADA, it has never even been close to 50%.
Here is a look at both 2016 and 2015:
In 2016, internet advertising was 33.6% of the dealership’s budgeted advertising, or $16,458 per month. In 2015, NADA reported that dealers only spent $12,047 per month, or 27.8% of their total advertising budget.
So, what caused this 62.5% jump, over $10,000 per month, from 2016 to 2017 for internet advertising?
Perhaps it is a change in the way NADA is tabulating this information? Could it be the many additional fees that are now included to run OEM or other campaigns? I would argue the reason is that we have finally reached the tipping point where dealership advertising dollars have largely shifted from traditional media to digital.
This stat is even more remarkable given that the overall annual advertising budget for dealers actually shrank by over $8,000. Which media segments lost ground with this new advertising mix?
The biggest hit was to television, which lost a whopping $55,330 in annual advertising spend, over 9 full percentage points. Radio was next, with $32,577 in lost annual revenue per dealership, or nearly 5 ½ percentage points. Newspapers, who have already lost their dominance in the segment, lost an additional $11,579 in annual advertising spend for dealers, which is nearly 2 percentage points.
This shift in spending has been needed over the years in order to make sure dealer advertising spending more closely aligns with consumer time spent in media, and now the numbers are starting to line up.
The message here, as traditional advertising spending continues to shrink and dealers are spending increasing amounts on digital marketing, is that they need to inspect these investments.
Dealerships should closely monitor and compare key success metrics for third-party classified sites and measure what they are paying for. Dealers also need to inspect paid search, social and other traffic-driving campaigns to their website using Google Analytics, to hold agencies accountable for results.
I had heard the 2017 results were finally available, and I was anxious to dive into the data. I double-clicked to open the report, quickly scrolling to the “Advertising Expenditures” section. And then…my jaw dropped.
I’m not sure why I was so surprised, perhaps it was just affirmation of what I saw starting in the late 1990s: The birth of the internet advertising segment for automobile dealers.
For the past 20-plus years, I’ve relied on the “NADA DATA” report. If you haven’t used this resource in the past, you definitely should. It is extremely detailed, reliable (NADA, of course!), and gives you solid summary of the prior year’s results for the automotive industry. Click here for free downloads from the NADA site: rdnada | Generations Digital
Here is the stat that dropped my jaw...
The percentage of total advertising spend for internet media jumped from 33.6% to 55.4%!
That’s right, Internet as a media segment is now 55.4% of retail dealerships annual advertising budget, or $26,750 per month. I know what you’re saying, didn’t this happen a long time ago? According to NADA, it has never even been close to 50%.
Here is a look at both 2016 and 2015:
In 2016, internet advertising was 33.6% of the dealership’s budgeted advertising, or $16,458 per month. In 2015, NADA reported that dealers only spent $12,047 per month, or 27.8% of their total advertising budget.
So, what caused this 62.5% jump, over $10,000 per month, from 2016 to 2017 for internet advertising?
Perhaps it is a change in the way NADA is tabulating this information? Could it be the many additional fees that are now included to run OEM or other campaigns? I would argue the reason is that we have finally reached the tipping point where dealership advertising dollars have largely shifted from traditional media to digital.
This stat is even more remarkable given that the overall annual advertising budget for dealers actually shrank by over $8,000. Which media segments lost ground with this new advertising mix?
The biggest hit was to television, which lost a whopping $55,330 in annual advertising spend, over 9 full percentage points. Radio was next, with $32,577 in lost annual revenue per dealership, or nearly 5 ½ percentage points. Newspapers, who have already lost their dominance in the segment, lost an additional $11,579 in annual advertising spend for dealers, which is nearly 2 percentage points.
This shift in spending has been needed over the years in order to make sure dealer advertising spending more closely aligns with consumer time spent in media, and now the numbers are starting to line up.
The message here, as traditional advertising spending continues to shrink and dealers are spending increasing amounts on digital marketing, is that they need to inspect these investments.
Dealerships should closely monitor and compare key success metrics for third-party classified sites and measure what they are paying for. Dealers also need to inspect paid search, social and other traffic-driving campaigns to their website using Google Analytics, to hold agencies accountable for results.
Digital Dealer 24 Review with Kevin Frye #DD24
- By kevinfrye
It's Five AM on Monday morning when I get up. Between the cat meowing to be fed and the dog whining to go out, it's time to start the day. It has been a long, cold winter, but it's April, it can't be that chilly outside, right? Wait, GREAT GLOBAL WARMING! I just looked out the window and there is SNOW on my truck? It's time for me to get on a plane and head as far south as I can go in search of warmth and sunshine. Digital Dealer 24 in Orlando, here I come!
Digital Dealer 24 at the Orlando Convention Center
Orlando, home of the adult Disneyland... Wait, am I getting confused with Las Vegas? Maybe, though after multiple WestPac tours with the US Navy, I think that might be found in either Thailand or the Phillipines. I was excited to return to Orlando which has hosted the east coast Digital Dealer show many times. All prior conferences had been hosted at the Rosen Shingle resort, while DD24 was going to be located at the Orlando Convention Center. How did that work out?
Early auto eCommerce pioneer Nick Cybela continues to lead with Flowfound
Listen up you young whipper-snappers! If you ask me, I liked when Digital Dealer was located at the Rosen Shingle. Why? Everyone was at the same hotel/venue for the conference, and at any point in the day, you could see most of your friends in the industry. It was an easy walk to the sessions, keynotes, exhibition hall, or to several restaurants and bars in the evening, all without the hassle of traveling outside of the resort. Maybe it's my age, but I enjoy that convenience.
Convenient covered walk from the hotel to DD24 each day
Did that make the Orlando Convention Center a bad location? Absolutely not. There were multiple hotels that attendees could stay at, and most were within walking distance to the convention center. I stayed at the Hyatt and there were covered, moving walkways between the hotel and the conference. It took about 20 minutes for the trip, but that gave me some time to have some coffee and prepare for the day.
Julie was unable to join me at DD24, but she did spoil Kate Frost during her last Wyler visit
Yes, I found some of that Florida sunshine on Monday afternoon where my great friend Kate Frost joined me as we caught up on some Wyler business, and then we spent the rest of the afternoon solving world problems like hunger, border security, and more. Did I everr share that the best part of this industry is the people you meet?
Badge pickup for Digital Dealer 24 was simple - no long lines!
Hooray! I failed to pick up my DD24 badge on Monday and dreaded the long lines that were always prevalent for those folks picking up their badges on the first day of the conference. Great news, this was the smoothest badge pickup yet. There were greeters pointing you to multiple computer screens where you entered either your last name or badge number, and a couple minutes later it was printed up and being handed to you. No lines, little wait, friendly service - well done!
Preaching about auto subscription at DD24
Subscribe and Drive with Wyler FastLane! Day one, first session of Digital Dealer 24 started with my session on "Everything You Need to Know about Auto Subscription". This is certainly a topic near and dear to my heart as the Jeff Wyler Automotive Family recently launched the first auto subscription service in our market, Wyler FastLane. With Wyler FastLane, subscribers have one monthly payment that includes access to an entire fleet of cars. That payment also includes their auto insurance, maintenance, service, and taxes. The big question I looked to address as I talked about auto subscription services like ours and others offered by the OEMs and more was "WHY?"
Matt Murray and Bryce Forbush with Podium
The average car buyer today is tied into a long term finance or lease term and is locked into one car, one that fits many of their needs, but not all of their needs. With auto subscription, we can provide an affordable and flexible mobility solution that allows the subscriber to have the perfect car for every occasion without a long term commitment. There are few players involved this early into the auto subscription market, and each of us is approaching the business model a bit differently. We all have one common factor - we are looking to test, refine, and perfect a sustainable business model that provides an exceptional experience for our customers, while giving us a profitable model that allows us to grow.
Subi Ghosh and Ali Amirrezvani at the DD cocktail hour
How is auto subscription being received by our customers? Our subscribers LOVE the service. The common theme among them is simple - auto subscription makes driving FUN again. They have no worries about having the right car or getting it into the shop to be serviced. In fact, it is like having a new car every couple of weeks as they flip into their next car which is clean, detailed, and has a full tank of gas. Unfortunately, the biggest resistance we have seen is from other dealers and vendors.
I was saddened to hear that R Lee Ermey passed away April 15th. Here he is at DD11
Fake News! Fake News! There were another 3 sessions that talked about auto subscription and other services that I chose to sit in and attend. One of these focused on how to "defend" your dealership from these new solutions. Is "defending" the right answer during this time of disruption in our market? In a time where our customers are demanding a better experience from us, should we be resisting new, better consumer-facing solutions? I was also discouraged to hear some of the "facts" about auto subscription that were completely wrong. One example - we "force" subscribers to switch every couple of weeks to ensure they are never in a car more than 28 days, and "most" subscribers start exchanging cars but then choose to stay in the same vehicle for years and therefore the subscription model makes no sense.
Real facts - our subscribers CHOOSE to exchange their vehicles ~2.5 times per month on average and they have no desire to be locked into one car for five plus years. I can understand a lack of understanding as we launch new solutions, but I am frustrated when folks distort the truth about how they actually work. If we want to improve as an industry, we must be progressive and open-minded as we test new solutions.
Christi Olson with Microsoft
As my English teacher rolls over in her grave... "Write like humans speak" was the advice given by Christi Olson, head of evangelism with Microsoft, as she talked about "Unchatted Territory: Trends and Tips for Driving Traffic through Voice Search". I remember writing "like I spoke" for my English homework in high school and let's just say that was not warmly received by my teacher, Ms. Beadle, at Walnut Grove High School (for the very few who got that, you ARE old!).
Well, dammit, I was right! Or perhaps, I was a voice SEO guru well before my time. As voice search is growing exponentially, it is important that you update your websites with voice search friendly content, while working to have featured snippets of the information being searched for. Hint: Early birds will get the worm in this key area.
Who is this "Chris Bro-man" and his Men in Automotive movement?
"They may take our lives, but they will never take our freedom!" Was this a quote from William Wallace of Braveheart fame when I entered the exhibit hall? Why no, this was from the incredibly inspiring Chris Bro-man of Men in Automotive.
His message was that the Women in Automotive movement will not be met without resistance from the traditionally male-dominated auto industry. Men, we must arise and fight! (Editorial note: Christy Roman - you should NEVER have trusted me to hold onto your Digital Dealer badge the night before). Ah, the joys of Photoshop. Sorry Christy, I could not resist - and may I share that Christy and the Women in Automotive team hosted a wonderful reception the previous night. And from myself and so many others, we support Women in Automotive - and don't forget they have their next conference coming up June 24-26 in Orlando.
Loved the huge projected advertisements when you entered exhibit hall
HELLO... Hello... hello... ECHO... Echo... echo... Did I share that the Orlando Convention center is huge? Without question it is a first class facility, however the sheer size seemed to dwarf the size of DD24. Let me share first that one of the key strengths of Digital Dealer is the tremendous amount of educational sessions, as well as the multiple skill levels available in each educational category. However, I feel that this is almost diluting the conference.
What do I mean?
It seems that there are so many sessions that there are many that have few attendees, and even when we entered exhibit hall, it almost seemed that it had less exhibitors due to the large size of the hall. Would it make sense to scale back how many sessions are available? Is it just me? I would love your feedback.
Great to see early auto digital pioneer Joe Pistell and his daughter Katie Gridley
What's new pussycat? Meow! So my 20 year old son bought a record player and is now buying vinyl and guess what one of the first albums he buys is? Yep, Tom Jones Greatest Hits. Hence this brilliant segue into "what's new" in exhibit hall (did I mention that my writing style was not very popular with my English teachers???). I found most of my value at Digital Dealer 24 in exhibit hall, and let me share my top picks...
Visiting Sean Brown with Fair with Ceren Isildak, and Alex Jefferson
Fair? Life is not FAIR! Love him or hate him, Scott Painter of TrueCar fame has raised up to one Billion (yes, that's a capital B) in debt and equity funding for Fair, a car leasing app that should be getting your attention. I encouraged folks to visit this booth during my session as Fair is raising the bar to meet higher consumer expectations with a simple app that allows consumers to get instantly pre-qualified to acquire a vehicle with no long-term commitments. Once your are pre-approved, Fair acquires the car from the dealership it belongs to (that's right, our inventory that we have agreed to list and at a price which we are willing to accept from Fair). Consumers can return the car at any point with 5 days notice, and then Fair gives the dealer first choice to buy the car back.
Simply put - Fair is looking to provide an affordable and flexible mobility solution which is more consumer facing. Hmmm, wasn't that the same thing I shared about auto subscription? I suppose that is also why I talked about Fair during my session. Lots of folks were stopping by Fair and learning more as this continues to expand into more markets across the country.
Alex Miles with VinChain, the only blockchain exhibitor at DD24
Please! Would someone just give me some attention... Let's just say that there was one exhibitor that nobody was paying attention to, though they might have been the one which should have made everyone think. Last year I spoke about disruption in our industry, and one of the areas that I specifically talked about was blockchain. I ventured a guess on how this could directly impact automotive and my thoughts were vehicle history.
Ladies and gentlemen - let me introduce Vinchain, the first blockchain solution I have seen at a Digital Dealer conference. Vinchain is looking to leverage vehicle history information by monetizing the data in your car. This makes a lot of sense as acquiring the vehicle data and building the database will be the biggest barrier to entry into this market. Without getting into a huge debate about who owns the data, Vinchain looks to install a device into the OVD port of your vehicle which would then transmit your driving data back to them. This can then be used for marketing solutions and much more.
Ironically, this booth was right across from CarFax. I asked Alex Miles if CarFax had any idea what he was doing and the answer was "no". Wake up folks - you should be watching this area closely.
Chris Hill continues to excel with OverTake Digital Marketing with a great show at DD24
Did you hear the carnival barker crying "Free wifi! Free popcorn! We have cable TV!" Of course, free amenities like this bring cars to a screeching stop and hordes of crazed customers pouring into your showroom for these exclusive benefits that cannot be found anywhere else. I did find one brilliant solution, Spacee, that should enhance your showroom experience. Please check out this video demonstrating Space Spatial Experiences.
Think of it this way, this is a deviceless mixed reality solution that you can provide in your showroom that not only further educates your customer on the benefits of the vehicle you are trying to sell, it also provides that much desired "wow" factor that they will likely share on social media. We have been creating and testing augmented reality tools to enhance the showroom experience at the Jeff Wyler Automotive Family and I can share this highly impressed me.
Jon and Brent Williams with SnapCell
Hey Alex, meet me at the SnapChat booth... When Alex finally found me, he made sure to let me know that I was at the SnapCell booth (doh!). There are now multiple video solutions for dealers to choose from in providing a simple and high quality tool for sending video from our sales reps to our customers. SnapCell is providing a solution which will not only leverage SMS technology, but will also integrate with some CRM tools like VinSolutions. Well done!
Patrick Min and Azarias Reda with Carma
Is there a lot of competition for auto subscription software? "Not much" said Clutch. Watch out folks, I had a great conversation with Azarias Reda and Patrick Min of Carma. They are looking to enter this innovative market with their competing solution. Best of luck to both of them (and well done to Azarias who entered the tech panel competition).
With Jeff Clark as he joins the team at Activengage, Todd Smith and celebrating Jennifer Sanford's birthday
Moved by Millennial Money... Matt Cragin, Director of Corporate Strategy for Fair, talked about the emerging new car ownership models in his session "Defend Your Dealership - Understand the Powerful Forces that are Fighting for your Customers' Mobility Dollars". Matt shared some great examples as each generation has moved the market with the sheer amount of dollars they bring to the table. Guess who is the fastest growing segment of your customer base? That would be the millennials, and the sheer amount of their dollars will change our market with their spending power.
I was a bit disappointed as the facts shared about auto subscription were not accurate, and further, I was confused by what I felt was a mixed message. It seemed like the only new car ownership model that was not threatening dealerships was Fair, while any others should be "defended" against. As for me? I choose to be open minded to all, including Fair, doesn't that sound fair?
Look who just ran the Spartan Race? Meet your warriors Yago Paramo and Joe Gillespie (missing Brian Pasch who also ran with them)
And the best session takeaway was... This one belongs to Kelly McNearney, senior strategist on Automotive Retail Google. While Kelly talked about last click attribution in her session "Beyond the Last Click", Kelly shared that Google has activated Store Visit Conversions. If you are spending a lot of money on Google AdWords (which most of you are), you definitely need to look for this. You will need to have your Google My Business pages linked to Adwords, and ensure you have location extensions turned on. If you go to Adwords and go to conversions, all conversions, there should now be a column for store conversions. If there is no data showing, you are not eligible at this time.
Enjoying the Blue Martini reception c/o DealerOn with Ilana Zur of AutoLeadStar and Brian Rydell
This is very powerful. Every dealer wants to track actual store visits from their digital marketing efforts. While this is not perfect, Google has a lot of data that allows them to track the customer from your Adwords marketing directly to your dealership. Think about it. The customer might check into your dealership's GMB page when they arrive. Or more likely, they have their phone reporting its geo-location back to Google. The bottom line is that this data is slowly becoming more available to dealers and we can start to get a better picture of direct results.
On a side note, the Google presentation also won the best analogy contest with their "hangover" story as it relates to last click attribution. While you may have had a beer, then some wine, followed by a martini, and then a tequila shot, why is it that the last thing you drank got all of the credit for that hangover? Wow, that explains so much from previous Digital Dealer evenings...
Jeff Wyler dinner at Rocco's Tacos
Margaritas and mayhem or 5 Star Steakhouse solitude? Team Wyler chose Rocco's Tacos where we enjoyed pitchers of margaritas, some great Mexican food, and we were joined by Kate Frost and Alex Jefferson. After a great dinner, we were off to see Karaoke with Joe Webb and Arnold Tijerina. For many, the pitchers of liquid courage gave new belief that their voices were only surpassed by Celine Dion or Whitney Houston.
In full disclosure, some of these folks can really sing - and I was certainly intimidated to compete with that talent. And while there were many great performances, my hat goes off to Mat Koenig who dominated with "Get By with a Little Help from my Friends". Mat, if you would have done the John Belushi version, I would have replaced this entire review with a glowing approval of your performance.
Joe Webb welcomes Shaun Raines to the DealerKnows team at DD24
I started Wednesday morning with a great session on online merchandising. Yes, this has been a topic of discussion and study for a long time and guess what - it is still relevant. Unfortunately I could not stay the entire session as I was taking part in a panel in keynote hall with "The Future of Automotive Retail".
Mark Tewart put together a great panel to discuss some of the most relevant issues that we as dealers face in today's market. Here is the one word summary of this entire panel - people. Regardless of the technology solutions we are leveraging for our future and the disruptive third parties entering our industry, the bottom line is that our future success hinges on people. By that, I mean how we treat our people, and how we treat our customers. Is it any coincidence that the most successful companies today excel at being consumer facing?
First class panel with Frank Lopes, Donald Hall, JC Baker, Mark Tewart (missing Erich Gail)
What's the key to a successful keynote? While Digital Dealer brought in some great keynote speakers, the sessions did not appear to be well attended, and I cannot figure this out. The Disney keynote on Wednesday afternoon took place in a room that was less than half full. The following morning was better attended, but this is likely because they were also serving breakfast.
Kudos to Dan Waldschmidt who lead the Thursday morning session. He brought an immense amount of energy to his presentation and spent the entire time roaming the tables where people were listening (and eating). Dan shared his million dollar idea that helped his success. Each day, he looks at his calendar from the previous day and then sends a personal follow-up email to each person he interacted with. Time spent is about fifteen minutes, but the return is enormous in the long run.
CJ Depasquale and Erin Williams - 2 faves at DD24
Russell Lemmer talked about "The Connected Fleet" where he shared that loaners are the third largest expense for most dealers. While meeting with one of largest venture capital firms in the nation, he walked away with a valuable nugget of advice. Companies that reduce friction tend to add value. Hmmm, if you could do that, could you find success? Russell then shared how better managing your fleet with digital solutions could not only reduce friction, but also save you a lot of money while creating better satisfied customers. Win!
Great job by Frank Lopes who took on the tall task of being the emcee of DD24
Closing remarks... When I entered exhibit hall, Cox Automotive dominated with the largest booth right at the entrance. When I looked at VinSolutions, I recognized one person. That evening, at Karaoke, I realized that I did not recognize half of the people. Is this bad? Of course not - but it is an indication that there is a new, large amount of talent entering our industry every year. The challenge for me is how I can give back to this industry that has given so much to me and my family. Perhaps better worded, how can WE give back to those that are rising behind us?
Disruption in our industry should not be feared, it should be viewed as an opportunity to grow and become better. Just as many of us that were the early pioneers in automotive eCommerce were helped and encouraged by those who worked before us, we need to empower our next generation. Women in Automotive is doing a great job with young women starting in automotive, and Digital Dealer continues to be a platform which empowers all participants in the automotive industry.
Super fun dinner with Ceren Isildak, Melissa Green, Alex Jefferson, Megan Mulhall, and Kenny Calhoun
Did I mention that Digital Dealer 25 will be back at The Mirage in Las Vegas? Mark your calendars for October 16th - 18th. Great seeing everyone in Orlando and I look forward to seeing you this fall. And let me close with this great pic of Mat and Shaun...
Shaun Raines and Mat Koenig say farewell until DD25
Login to view embedded media View: https://www.youtube.com/watch?v=DCH20ODLI6Y
If you have a question for Kevin or anyone from the DR Community that attended Digital Dealer 24, head over to the forums and ask away - we put together a designated thread just for this... A Review of Digital Dealer 24 by Kevin Frye
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Be sure to check out some of Kevin's previous Digital Dealer reviews from the archives:
ENJOY!!
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Digital Dealer 24 at the Orlando Convention Center
Orlando, home of the adult Disneyland... Wait, am I getting confused with Las Vegas? Maybe, though after multiple WestPac tours with the US Navy, I think that might be found in either Thailand or the Phillipines. I was excited to return to Orlando which has hosted the east coast Digital Dealer show many times. All prior conferences had been hosted at the Rosen Shingle resort, while DD24 was going to be located at the Orlando Convention Center. How did that work out?
Early auto eCommerce pioneer Nick Cybela continues to lead with Flowfound
Listen up you young whipper-snappers! If you ask me, I liked when Digital Dealer was located at the Rosen Shingle. Why? Everyone was at the same hotel/venue for the conference, and at any point in the day, you could see most of your friends in the industry. It was an easy walk to the sessions, keynotes, exhibition hall, or to several restaurants and bars in the evening, all without the hassle of traveling outside of the resort. Maybe it's my age, but I enjoy that convenience.
Convenient covered walk from the hotel to DD24 each day
Did that make the Orlando Convention Center a bad location? Absolutely not. There were multiple hotels that attendees could stay at, and most were within walking distance to the convention center. I stayed at the Hyatt and there were covered, moving walkways between the hotel and the conference. It took about 20 minutes for the trip, but that gave me some time to have some coffee and prepare for the day.
Julie was unable to join me at DD24, but she did spoil Kate Frost during her last Wyler visit
Yes, I found some of that Florida sunshine on Monday afternoon where my great friend Kate Frost joined me as we caught up on some Wyler business, and then we spent the rest of the afternoon solving world problems like hunger, border security, and more. Did I everr share that the best part of this industry is the people you meet?
Badge pickup for Digital Dealer 24 was simple - no long lines!
Hooray! I failed to pick up my DD24 badge on Monday and dreaded the long lines that were always prevalent for those folks picking up their badges on the first day of the conference. Great news, this was the smoothest badge pickup yet. There were greeters pointing you to multiple computer screens where you entered either your last name or badge number, and a couple minutes later it was printed up and being handed to you. No lines, little wait, friendly service - well done!
Preaching about auto subscription at DD24
Subscribe and Drive with Wyler FastLane! Day one, first session of Digital Dealer 24 started with my session on "Everything You Need to Know about Auto Subscription". This is certainly a topic near and dear to my heart as the Jeff Wyler Automotive Family recently launched the first auto subscription service in our market, Wyler FastLane. With Wyler FastLane, subscribers have one monthly payment that includes access to an entire fleet of cars. That payment also includes their auto insurance, maintenance, service, and taxes. The big question I looked to address as I talked about auto subscription services like ours and others offered by the OEMs and more was "WHY?"
Matt Murray and Bryce Forbush with Podium
The average car buyer today is tied into a long term finance or lease term and is locked into one car, one that fits many of their needs, but not all of their needs. With auto subscription, we can provide an affordable and flexible mobility solution that allows the subscriber to have the perfect car for every occasion without a long term commitment. There are few players involved this early into the auto subscription market, and each of us is approaching the business model a bit differently. We all have one common factor - we are looking to test, refine, and perfect a sustainable business model that provides an exceptional experience for our customers, while giving us a profitable model that allows us to grow.
Subi Ghosh and Ali Amirrezvani at the DD cocktail hour
How is auto subscription being received by our customers? Our subscribers LOVE the service. The common theme among them is simple - auto subscription makes driving FUN again. They have no worries about having the right car or getting it into the shop to be serviced. In fact, it is like having a new car every couple of weeks as they flip into their next car which is clean, detailed, and has a full tank of gas. Unfortunately, the biggest resistance we have seen is from other dealers and vendors.
I was saddened to hear that R Lee Ermey passed away April 15th. Here he is at DD11
Fake News! Fake News! There were another 3 sessions that talked about auto subscription and other services that I chose to sit in and attend. One of these focused on how to "defend" your dealership from these new solutions. Is "defending" the right answer during this time of disruption in our market? In a time where our customers are demanding a better experience from us, should we be resisting new, better consumer-facing solutions? I was also discouraged to hear some of the "facts" about auto subscription that were completely wrong. One example - we "force" subscribers to switch every couple of weeks to ensure they are never in a car more than 28 days, and "most" subscribers start exchanging cars but then choose to stay in the same vehicle for years and therefore the subscription model makes no sense.
Real facts - our subscribers CHOOSE to exchange their vehicles ~2.5 times per month on average and they have no desire to be locked into one car for five plus years. I can understand a lack of understanding as we launch new solutions, but I am frustrated when folks distort the truth about how they actually work. If we want to improve as an industry, we must be progressive and open-minded as we test new solutions.
Christi Olson with Microsoft
As my English teacher rolls over in her grave... "Write like humans speak" was the advice given by Christi Olson, head of evangelism with Microsoft, as she talked about "Unchatted Territory: Trends and Tips for Driving Traffic through Voice Search". I remember writing "like I spoke" for my English homework in high school and let's just say that was not warmly received by my teacher, Ms. Beadle, at Walnut Grove High School (for the very few who got that, you ARE old!).
Well, dammit, I was right! Or perhaps, I was a voice SEO guru well before my time. As voice search is growing exponentially, it is important that you update your websites with voice search friendly content, while working to have featured snippets of the information being searched for. Hint: Early birds will get the worm in this key area.
Who is this "Chris Bro-man" and his Men in Automotive movement?
"They may take our lives, but they will never take our freedom!" Was this a quote from William Wallace of Braveheart fame when I entered the exhibit hall? Why no, this was from the incredibly inspiring Chris Bro-man of Men in Automotive.
His message was that the Women in Automotive movement will not be met without resistance from the traditionally male-dominated auto industry. Men, we must arise and fight! (Editorial note: Christy Roman - you should NEVER have trusted me to hold onto your Digital Dealer badge the night before). Ah, the joys of Photoshop. Sorry Christy, I could not resist - and may I share that Christy and the Women in Automotive team hosted a wonderful reception the previous night. And from myself and so many others, we support Women in Automotive - and don't forget they have their next conference coming up June 24-26 in Orlando.
Loved the huge projected advertisements when you entered exhibit hall
HELLO... Hello... hello... ECHO... Echo... echo... Did I share that the Orlando Convention center is huge? Without question it is a first class facility, however the sheer size seemed to dwarf the size of DD24. Let me share first that one of the key strengths of Digital Dealer is the tremendous amount of educational sessions, as well as the multiple skill levels available in each educational category. However, I feel that this is almost diluting the conference.
What do I mean?
It seems that there are so many sessions that there are many that have few attendees, and even when we entered exhibit hall, it almost seemed that it had less exhibitors due to the large size of the hall. Would it make sense to scale back how many sessions are available? Is it just me? I would love your feedback.
Great to see early auto digital pioneer Joe Pistell and his daughter Katie Gridley
What's new pussycat? Meow! So my 20 year old son bought a record player and is now buying vinyl and guess what one of the first albums he buys is? Yep, Tom Jones Greatest Hits. Hence this brilliant segue into "what's new" in exhibit hall (did I mention that my writing style was not very popular with my English teachers???). I found most of my value at Digital Dealer 24 in exhibit hall, and let me share my top picks...
Visiting Sean Brown with Fair with Ceren Isildak, and Alex Jefferson
Fair? Life is not FAIR! Love him or hate him, Scott Painter of TrueCar fame has raised up to one Billion (yes, that's a capital B) in debt and equity funding for Fair, a car leasing app that should be getting your attention. I encouraged folks to visit this booth during my session as Fair is raising the bar to meet higher consumer expectations with a simple app that allows consumers to get instantly pre-qualified to acquire a vehicle with no long-term commitments. Once your are pre-approved, Fair acquires the car from the dealership it belongs to (that's right, our inventory that we have agreed to list and at a price which we are willing to accept from Fair). Consumers can return the car at any point with 5 days notice, and then Fair gives the dealer first choice to buy the car back.
Simply put - Fair is looking to provide an affordable and flexible mobility solution which is more consumer facing. Hmmm, wasn't that the same thing I shared about auto subscription? I suppose that is also why I talked about Fair during my session. Lots of folks were stopping by Fair and learning more as this continues to expand into more markets across the country.
Alex Miles with VinChain, the only blockchain exhibitor at DD24
Please! Would someone just give me some attention... Let's just say that there was one exhibitor that nobody was paying attention to, though they might have been the one which should have made everyone think. Last year I spoke about disruption in our industry, and one of the areas that I specifically talked about was blockchain. I ventured a guess on how this could directly impact automotive and my thoughts were vehicle history.
Ladies and gentlemen - let me introduce Vinchain, the first blockchain solution I have seen at a Digital Dealer conference. Vinchain is looking to leverage vehicle history information by monetizing the data in your car. This makes a lot of sense as acquiring the vehicle data and building the database will be the biggest barrier to entry into this market. Without getting into a huge debate about who owns the data, Vinchain looks to install a device into the OVD port of your vehicle which would then transmit your driving data back to them. This can then be used for marketing solutions and much more.
Ironically, this booth was right across from CarFax. I asked Alex Miles if CarFax had any idea what he was doing and the answer was "no". Wake up folks - you should be watching this area closely.
Chris Hill continues to excel with OverTake Digital Marketing with a great show at DD24
Did you hear the carnival barker crying "Free wifi! Free popcorn! We have cable TV!" Of course, free amenities like this bring cars to a screeching stop and hordes of crazed customers pouring into your showroom for these exclusive benefits that cannot be found anywhere else. I did find one brilliant solution, Spacee, that should enhance your showroom experience. Please check out this video demonstrating Space Spatial Experiences.
Think of it this way, this is a deviceless mixed reality solution that you can provide in your showroom that not only further educates your customer on the benefits of the vehicle you are trying to sell, it also provides that much desired "wow" factor that they will likely share on social media. We have been creating and testing augmented reality tools to enhance the showroom experience at the Jeff Wyler Automotive Family and I can share this highly impressed me.
Jon and Brent Williams with SnapCell
Hey Alex, meet me at the SnapChat booth... When Alex finally found me, he made sure to let me know that I was at the SnapCell booth (doh!). There are now multiple video solutions for dealers to choose from in providing a simple and high quality tool for sending video from our sales reps to our customers. SnapCell is providing a solution which will not only leverage SMS technology, but will also integrate with some CRM tools like VinSolutions. Well done!
Patrick Min and Azarias Reda with Carma
Is there a lot of competition for auto subscription software? "Not much" said Clutch. Watch out folks, I had a great conversation with Azarias Reda and Patrick Min of Carma. They are looking to enter this innovative market with their competing solution. Best of luck to both of them (and well done to Azarias who entered the tech panel competition).
With Jeff Clark as he joins the team at Activengage, Todd Smith and celebrating Jennifer Sanford's birthday
Moved by Millennial Money... Matt Cragin, Director of Corporate Strategy for Fair, talked about the emerging new car ownership models in his session "Defend Your Dealership - Understand the Powerful Forces that are Fighting for your Customers' Mobility Dollars". Matt shared some great examples as each generation has moved the market with the sheer amount of dollars they bring to the table. Guess who is the fastest growing segment of your customer base? That would be the millennials, and the sheer amount of their dollars will change our market with their spending power.
I was a bit disappointed as the facts shared about auto subscription were not accurate, and further, I was confused by what I felt was a mixed message. It seemed like the only new car ownership model that was not threatening dealerships was Fair, while any others should be "defended" against. As for me? I choose to be open minded to all, including Fair, doesn't that sound fair?
Look who just ran the Spartan Race? Meet your warriors Yago Paramo and Joe Gillespie (missing Brian Pasch who also ran with them)
And the best session takeaway was... This one belongs to Kelly McNearney, senior strategist on Automotive Retail Google. While Kelly talked about last click attribution in her session "Beyond the Last Click", Kelly shared that Google has activated Store Visit Conversions. If you are spending a lot of money on Google AdWords (which most of you are), you definitely need to look for this. You will need to have your Google My Business pages linked to Adwords, and ensure you have location extensions turned on. If you go to Adwords and go to conversions, all conversions, there should now be a column for store conversions. If there is no data showing, you are not eligible at this time.
Enjoying the Blue Martini reception c/o DealerOn with Ilana Zur of AutoLeadStar and Brian Rydell
This is very powerful. Every dealer wants to track actual store visits from their digital marketing efforts. While this is not perfect, Google has a lot of data that allows them to track the customer from your Adwords marketing directly to your dealership. Think about it. The customer might check into your dealership's GMB page when they arrive. Or more likely, they have their phone reporting its geo-location back to Google. The bottom line is that this data is slowly becoming more available to dealers and we can start to get a better picture of direct results.
On a side note, the Google presentation also won the best analogy contest with their "hangover" story as it relates to last click attribution. While you may have had a beer, then some wine, followed by a martini, and then a tequila shot, why is it that the last thing you drank got all of the credit for that hangover? Wow, that explains so much from previous Digital Dealer evenings...
Jeff Wyler dinner at Rocco's Tacos
Margaritas and mayhem or 5 Star Steakhouse solitude? Team Wyler chose Rocco's Tacos where we enjoyed pitchers of margaritas, some great Mexican food, and we were joined by Kate Frost and Alex Jefferson. After a great dinner, we were off to see Karaoke with Joe Webb and Arnold Tijerina. For many, the pitchers of liquid courage gave new belief that their voices were only surpassed by Celine Dion or Whitney Houston.
In full disclosure, some of these folks can really sing - and I was certainly intimidated to compete with that talent. And while there were many great performances, my hat goes off to Mat Koenig who dominated with "Get By with a Little Help from my Friends". Mat, if you would have done the John Belushi version, I would have replaced this entire review with a glowing approval of your performance.
Joe Webb welcomes Shaun Raines to the DealerKnows team at DD24
I started Wednesday morning with a great session on online merchandising. Yes, this has been a topic of discussion and study for a long time and guess what - it is still relevant. Unfortunately I could not stay the entire session as I was taking part in a panel in keynote hall with "The Future of Automotive Retail".
Mark Tewart put together a great panel to discuss some of the most relevant issues that we as dealers face in today's market. Here is the one word summary of this entire panel - people. Regardless of the technology solutions we are leveraging for our future and the disruptive third parties entering our industry, the bottom line is that our future success hinges on people. By that, I mean how we treat our people, and how we treat our customers. Is it any coincidence that the most successful companies today excel at being consumer facing?
First class panel with Frank Lopes, Donald Hall, JC Baker, Mark Tewart (missing Erich Gail)
What's the key to a successful keynote? While Digital Dealer brought in some great keynote speakers, the sessions did not appear to be well attended, and I cannot figure this out. The Disney keynote on Wednesday afternoon took place in a room that was less than half full. The following morning was better attended, but this is likely because they were also serving breakfast.
Kudos to Dan Waldschmidt who lead the Thursday morning session. He brought an immense amount of energy to his presentation and spent the entire time roaming the tables where people were listening (and eating). Dan shared his million dollar idea that helped his success. Each day, he looks at his calendar from the previous day and then sends a personal follow-up email to each person he interacted with. Time spent is about fifteen minutes, but the return is enormous in the long run.
CJ Depasquale and Erin Williams - 2 faves at DD24
Russell Lemmer talked about "The Connected Fleet" where he shared that loaners are the third largest expense for most dealers. While meeting with one of largest venture capital firms in the nation, he walked away with a valuable nugget of advice. Companies that reduce friction tend to add value. Hmmm, if you could do that, could you find success? Russell then shared how better managing your fleet with digital solutions could not only reduce friction, but also save you a lot of money while creating better satisfied customers. Win!
Great job by Frank Lopes who took on the tall task of being the emcee of DD24
Closing remarks... When I entered exhibit hall, Cox Automotive dominated with the largest booth right at the entrance. When I looked at VinSolutions, I recognized one person. That evening, at Karaoke, I realized that I did not recognize half of the people. Is this bad? Of course not - but it is an indication that there is a new, large amount of talent entering our industry every year. The challenge for me is how I can give back to this industry that has given so much to me and my family. Perhaps better worded, how can WE give back to those that are rising behind us?
Disruption in our industry should not be feared, it should be viewed as an opportunity to grow and become better. Just as many of us that were the early pioneers in automotive eCommerce were helped and encouraged by those who worked before us, we need to empower our next generation. Women in Automotive is doing a great job with young women starting in automotive, and Digital Dealer continues to be a platform which empowers all participants in the automotive industry.
Super fun dinner with Ceren Isildak, Melissa Green, Alex Jefferson, Megan Mulhall, and Kenny Calhoun
Did I mention that Digital Dealer 25 will be back at The Mirage in Las Vegas? Mark your calendars for October 16th - 18th. Great seeing everyone in Orlando and I look forward to seeing you this fall. And let me close with this great pic of Mat and Shaun...
Shaun Raines and Mat Koenig say farewell until DD25
Login to view embedded media View: https://www.youtube.com/watch?v=DCH20ODLI6Y
If you have a question for Kevin or anyone from the DR Community that attended Digital Dealer 24, head over to the forums and ask away - we put together a designated thread just for this... A Review of Digital Dealer 24 by Kevin Frye
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Be sure to check out some of Kevin's previous Digital Dealer reviews from the archives:
- Digital Dealer 23 Review with Kevin Frye #DD23
- Digital Dealer 22 Review with Kevin Frye #DD22
- Digital Dealer 21 Review with Kevin Frye #DD21
- Digital Dealer 19 Review with Kevin Frye #DD19
- Digital Dealer 18 Review with Kevin Frye #DD18
- Digital Dealer 17 Review with Kevin Frye #DD17
- Digital Dealer 16 Review with Kevin Frye #DD16
- Digital Dealer 15 Review with Kevin Frye #DD15
ENJOY!!
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