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Autotrader.com Annual Sales Meeting 2009 - Another Side of AutoTrader?

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Guest Post by David Metter

david_metter.jpgI know that many of us have taken shots at Autotrader.com in the past. Heck, I have even taken a few whacks at them myself...while they probably deserved it.  But too many times, when a company does something good, you never hear about it. That’s why I wanted to take time to give you my review of this year’s Autotrader.com national sales meeting.

Very rarely does an automotive vendor allow a group of their customers to join along in the celebration of their sales staff, rollout of new products and initiatives, and just some general “letting off some steam”. When I was asked to attend, I jumped at the chance. I have had the opportunity to attend a few other in-market national sales meetings in the past and came away with great information that helped our dealerships get out in front of the curve. I figured that this one would be no different. What surprised me was the compassion that was shown towards their dealer customers across the country.

Autotrader.com has had the reputation of being the dealer’s enemy. There are numerous stories regarding rate increases and we have all heard about their national AutoTrader sales blitzes. I have always shared these stories with AT.com’s upper management team, including Chip Perry.  Last year, Chip pulled me aside and told me that there were changes that were being made to move away from their old way of selling and managing their customers. As the year went on, I started to see these changes take effect. There were layers removed in the upper management chain. One key addition was the insertion of Alan Smith over all of the sales operations.  Alan had managed the customer support center prior to taking on this new role. Coincidentally, at about the same time, they seemed to get rid of some bad apples within their sales organization. This past fall AutoTrader.com held a dealer advisory meeting which included some of the largest and most progressive dealerships and  dealer groups in the country. They listened while we discussed our issues and successes. I knew they were listening because their entire national sales meeting was built around those earlier discussions.

From the kickoff to the finale, the message was clear. Their customers come first. Conversations around consulting with their dealers, adding value, and get this...no rate increases until at least 2nd quarter 2010. Now, some of you might make jokes about this but I haven’t had another vendor put that type of thing in writing...ever. Their sales compensation plan was changed to reward their team for retaining their customers and building relationships within the dealerships.

With other vendor meetings in the past, I have been asked to deliver a keynote or sit on a panel. In an interesting twist, AutoTrader.com asked me to help facilitate 3 training sessions around good SEO/SEM practices. Even more interesting, the first class started at 8am on day 2. Now unless you are Amish, nobody attends a meeting in Vegas at 8am, including me, (I am still a little mad about that) but I was pleasantly surprised that the room was completely full and the questions that were asked in the first session were as strong as the second and third.  The salespeople attended these classes because they wanted to learn how to help their customers with their business. They are not selling SEO and SEM. In fact, I challenged them to do some homework on their dealership customers and scan their websites for best/worst practices. I can’t count how many people came up to me over the following 2 days to discuss what they had found...and they were in Vegas! Now granted, we were in a bar discussing this topic but that means that they took the time to get online and dig into their customers business practices.

The 3 day meeting ended with their annual sales award banquet. I had a chance to mingle with many of the executives from the company as well as sit at dinner with Bill Templeton, Lloyd Hecht, Dan Crowe and two of their Major Account Managers David Palmer and Lee Herndon. Nothing was funnier than watching the executive team from AutoTrader.com dancing on the stage as the band was finishing a set. I am still trying to figure out what music Roger Hildebrandt was listening to because it sure wasn’t the same music that was playing.

Usually in these types of events they serve a fancy multi-course meal but instead we received a thick cheeseburger and French fries. I will admit that the cheeseburger was great and an even greater message was sent. The evening ended with their annual awards. The most pleasant surprise was how they graded the award winners. Not only did they take annual sales numbers into account but customer retention and feedback as well as community involvement weighed into the decision.

Be careful before you start calling me an Autotrader.com shill or jokingly ask me to stay in my new vacation house in Atlanta. There are few in our industry that is more critical of vendors than me. Just ask anyone who has been escorted out our corporate office.  I understand that a good vendor partner is not built in a day but I definitely like the direction that this vendor is moving. Some battleships can’t turn quickly in the ocean. Let’s just give them some time...and maybe a second chance.

About the Aurthor: David Metter is the CMO for
MileOne/Atlantic Automotive
 
Thanks for your post David. I know it seems as if when AutoTrader.com is mentioned here on DealerRefresh, little positiveness comes out of it. I've heard mentioned through out the industry that DealerRefresh is sorta known as the "Anti-AutoTrader website" but that has never been the intention. When you're the big man on campus, you no doubt get more scrutiny and have less room for mess ups without it being noticed. And no doubt AT has made some mistakes and it's obvious that there was some lack of effective leadership throughout the organization.

One thing I have always kept in mind (and this goes for a lot of businesses), when a company grows as fast as AutoTrader.com has (and in a relativity new vertical) mistakes will be made, decisions are made with no examples to compare to. Look at Amazon; on the consumer surface they seem snug but on the logistics side, not always so.

I've personally always been successful using AutoTrader.com, while also knowing that you have to work the system to the max in order to do so. Hearing that there will be NO price increases until 2010 is positive news, as long as they don't make up for it in 2010. :)

As you mentioned, "Some battleships can’t turn quickly in the ocean. Let’s just give them some time...and maybe a second chance". Only time will tell and If they don't walk the walk, I'm sure we will all hear about it.
 
Good to hear that the winds of change are blowing at Autotrader but, frankly, I'll believe it when I see it. For years they have taken advantage of dealers and many of us have been left jaded. I have a great relationship with cars.com. I know many that feel good about their relationship with Cars.com. They are very supportive and their rates are reasonable.

With that said, its encouraging to hear that the new leadership is desirous for change.
 
In Response to Andrew Wright

Cars.com? Come on man when is the last time they told you they were not going to raise the rates? 14 million viewers per month vs 8 or 9 million. I am dealer that users both and I like what I see with ATC.
 
Very interesting post. I think that all of us on the vendor partner side have a common goal this year. Projections are that it is going to be a rocky ride for the industry and those of us that are truly partners need to step up to the plate and help our dealers any way that we can. I know that readers of DR know the importance of online marketing in '09, but not all ISMs and GMs read DR. We feel the burden to educate on changing consumer habits and believe that our ability to help our dealers in this regard may be the difference between some of our dealers writing paychecks or resumes.

Bob, what dealership do you work for exactly? Pardon my skepticism, but on the heels of such a favorable post for autotrader.com, these jabs seem a little, opportunistic. I'm sure your cars.com rep would be happy to talk to you about monthly searches on our partnership sites as well as our main site and engagement metrics which are really more important then viewers per month. Here is my personal email address if you want to take it offline. [email protected]
 
Thanks for spreading the positive message David. I had the pleasuure of meeting you in Vegas and I have to say that the best part of our meeting this year was having the input from the dealers. Chip even gave you guys the opportunity to lay it on the line and point out the problems with ATC and it's reps, but you all took the highroad. Thanks again for your contributions to our training and I hope the company brings more dealers next year, maybe even some that aren't as successful with their advertising on ATC....now that would be something. A couple of nay sayers in a room with 1000 ATC sales reps. They could put that on TV.
 
I am glad to see this new approach from ATC. Dealers in my market are truly starting to notice the changes and appreciate them again. I can’t tell you how many conversations I have had with dealers saying to me “I’m considering cutting out Autotrader.” I always advise my dealer partners against this. I ask them instead to hold all of their providers to a higher standard and to align their ad spend with what is actually generating the most traffic. Their feedback is usually along the lines of “I do understand that AT works but their service and rates are terrible” We all know that for years Dealers have relied on traditional media at a much higher cost and very little in the way of metrics. The difference was the presence of the reps. Traditional media reps are not spread as thin and understand that there is a direct correlation between perceived service and the number of interactions with the dealer. In 2009 Cars and ATC will be focusing on building stronger relationships within the dealership and becoming true partners to their dealers. Those of you that have seen the latest Synovate study understand that online efforts deliver four times more traffic through your front doors than traditional media.

Quite often one question that seems to surface is “Who’s better ATC or Cars?” I like to answer this question by asking “Why wouldn’t you want both?” If they both have close to a $200 million dollar advertising campaign(designed to drive traffic to your inventory), both are recognized as industry leaders, both provide quality reps and service, both have an acceptable ROI, and both deliver different in market car buyers. I ask again “Why wouldn’t you want the advantages of having both?” If you were selling an online department store product would you only want traffic from Wal-mart.com or would you also like the customer base from Target.com? Bravo to ATC for wanting to provide their dealer partners with a higher level of service! If you are a truly consultative sales rep then you understand that your dealer’s online success with both Cars.com and Autotrader.com is in your best interest. Let’s work together in 2009 to provide our mutual dealer partners with the level of service the DESERVE and assist them in transitioning their dollars from traditional media to more effective online solutions.