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Question for Refresh Friday
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Dear Joe,

Every month, millions of car shoppers on national classified sites "cross the bridge" to car dealer's websites. With your new partnership, will you be exploring and leveraging this 'invisible bridge'?

Congrats!
-Uncle Joe
 
Question for Refresh Friday
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Dear Joe,

Vast sums of time and money have been spent on e-commerce for our industry, yet not one solution has caused online shoppers to become online buyers. What are your thoughts?


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Another version of the same question:
Vast sums of money have been spent on e-commerce for our industry, GM's Shop-Click-Drive is a sufficiently robust solution, yet it's ignored! All e-commerce solutions are performing well below expectations. The underlying premise that ALL vendors believe is that consumers so hate car dealers that they'll flock to a no-stinking-car-dealer experience. With the lack of e-commerce performance to date, surely there are missing pieces that prevent online shoppers from becoming online buyers. What are your thoughts?

Congrats!
-Uncle Joe
 
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What are your thoughts?

There can be no true Amazon-like e-commerce abilities as long as negotiation -- and therefore price comparisons -- are the reality.

No One-Price = No E-Commerce.

And, could it possibly be.... consumers really don't want it? People sure like to complain... but maybe it's fun to go look at and test drive cars? Lord knows there are people who love to negotiate! (although I can't imagine that number is growing...).

I really don't know. But I do believe that at least some parts of the existing process are fun for consumers.
 
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...I do believe that at least some parts of the existing process are fun for consumers.


Big John,
I'm asking Joe C short, open-ended questions that'll allow him to speak to any level of detail he'd like.

From my seat, e-commerce doesn't work because ALL OUR WEBSITES SUCK. If our websites were awesome, then, a natural conclusion of weeks of online car shopping would be an online transaction.


  • If our websites are so awesome, then why do customers come in with soooo many questions?
  • If our websites are so awesome, then why don't all customers say "where is the red Kia Soul, stock #144235a?"
  • If our websites are so awesome, then why is negotiated Price discovery still expected by the car shopper?

I had a chat with a dealer last week. He offered a remote sale & free home delivery. The entire transaction is done at the buyers home. Not one customer wanted the service. The service failed because... ALL OUR WEBSITES SUCK ;-)

IMO, Best Buy's amazing story is far more like our industry. High-level strategists in our space who are trying to disrupt, should deep dive the Best Buy experience. And, look to it's bold and brilliant CEO Hubert Joly for his savant-like understanding of consumers.

#Genius
 
  • If our websites are so awesome, then why do customers come in with soooo many questions?
  • If our websites are so awesome, then why don't all customers say "where is the red Kia Soul, stock #144235a?"
  • If our websites are so awesome, then why is negotiated Price discovery still expected by the car shopper?

I gotcha... just don't agree with all of it.

Lemme play Devil's Advocate (and I mean this.... making absolutely no claims to the veracity of these possibilities:

Q: If our websites are so awesome, then why do customers come in with soooo many questions?
A: Because customers are lazy.

But -- there's absolutely no argument that customers arrive at the dealership MUCH more informed and knowledgable than the past.

Q: If our websites are so awesome, then why don't all customers say "where is the red Kia Soul, stock #144235a?
A: Because customers are lazy.

Do customers come-in today and say, "Show me #144235a?" They certainly do. Do ALL customers do anything ALL the time in ANY vertical??

Q: If our websites are so awesome, then why is negotiated Price discovery still expected by the car shopper?
A: Because there is no such thing as One Price.


When I first got into Sales, I had a (joke) refrain: this business would be great, except for the cars and the customers. LOL! :)
 
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Big John,
I'm asking Joe C short, open-ended questions that'll allow him to speak to any level of detail he'd like.

From my seat, e-commerce doesn't work because ALL OUR WEBSITES SUCK. If our websites were awesome, then, a natural conclusion of weeks of online car shopping would be an online transaction.


IMO, Best Buy's amazing story is far more like our industry. High-level strategists in our space who are trying to disrupt, should deep dive the Best Buy experience. And, look to it's bold and brilliant CEO Hubert Joly for his savant-like understanding of consumers.

#Genius


Joe- I'm following about 20 companies that offer some sort of "digital retailing", as we pilot our Adaptive Digital Retailing platform Grail. Virtually everyone is trying to duplicate the current offline sales process online. There is NOTHING new or different which is why you see very little consumer adoption. When we ran the eBay Motors Finance Center years ago virtually every deal we did was digital retailing. The buyer and seller were rarely in the same location and we did everything electronically. PDF contracts prior to the current eDocs platform of today.

If you've never actually done digital retailing, it's very hard to create something that actually changes the current offline practice.

More later ...........

-Tarry
 
Tarry, I've always been a fan of DIN, I've not seen your Grail solution yet, I'm sure it'll be very interesting to see.

I am a fan of Digital Retailing (DR) as a concept. When it works, DR is the natural conclusion of an online shopping experience.

Observation: DR marketplace penetration is well below estimates.
Thesis: DR's marketplace penetration is dependent on a shopper that is fully ready to buy.
Summary: Digital Retailing's under-performance is OUR 'canary in the coal mine'.​

Too many insiders know cars in great detail and don't appreciate how f~cking complex a decision this is. My pal John Q understandably concludes shoppers are lazy. I believe shoppers are selfish and they'll make the best effort they can muster but at some point, ALL SHOPPERS hit the wall *link*. Weeks into the research, they come to realize they NEED to see the dealer to bring an end to this mind-numbing research.

This is why DR hasn't disrupted and why DR's weakness is the doorway into a giant opportunity.


-Uncle Joe


*I'm not talking about Carvana's or Ebay's impact that serves 0.00314% of the marketplace
 
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I would love to know how that went down with DealerFire, as I believe DealerInspire had a significant crossover, including co-founder coming from DealerFire.

Dealer Fire you don't really hear much from anymore. They're tech is pretty stale, maybe they spent a lot of unnecessary time on integration work, I don't know. They've been standing still from an outsiders perspective, though. VinSolutions as well. Once these companies get acquired by a publicly traded company, they need to be very careful about what they talk about online. Dealer Inspire had some pretty strong themes, their chat/AI product is pretty good, AFAIK they still lack a finance piece, but I think a CRM is going to be a trip down the rabbit hole without much of a reward. CRM's in this business are extremely competitive and they work well; there's not much more to squeeze out of them IMO.

There's still more work to be done in terms of merchandising product better. Search on mobile is atrocious across the board. A lot of the SEO text there for optimizations is useless to end users. IMO it needs to go. Lead forms are still pretty lousy, long forms even worse. There's a lot of room for innovation IMO and I think spending resources on a YACRM (Yet Another CRM) is wasteful.

I hate to be a pessimist but I think this was the plan all along. Grow like a weed and sell. That'd be great if they can stick around and still innovate, but every Silicon Valley success story I read the opposite happens. More lip service than action. Public companies need to grow by acquisitions, founders are muzzled then pursue something else, and it's more about operations and selling what you have now.
 
Vast sums of time and money have been spent on e-commerce for our industry, yet not one solution has caused online shoppers to become online buyers. What are your thoughts?

I think it's pretty obvious no one wants to buy a car online. There's too much risk.

Vendors need to stop talking about eCommerce and embrace digital service design (https://nextconf.eu/2012/08/what-is-digital-service-design).

That's what people want.

Vendors you can thank me later. Get to work ;)
 
Once these companies get acquired by a publicly traded company, they need to be very careful about what they talk about online.

That is true aside from the part that neither Dealer Fire nor VinSolutions were acquired by publicly traded companies. Having been a part of a company that was acquired by Dealertrack (public) and then Cox Automotive (private) I can assure you there are differences! In the examples you bring up, though, I would argue it is less about public appearances and more about a whole lot of acquisitions of varying types of softwares happening quickly. If your core competence is say inventory, and you buy a CRM company, you're going to need to learn the psychology of a dealership. Psychology is a lot different than economics (inventory). And then there are management changes resulting from the original creators leaving or being demoted. Without the founders leading the charge, the tactics are shifted without knowledge of the tactics that made it successful in the first place.

CRM's in this business are extremely competitive and they work well; there's not much more to squeeze out of them IMO.

Automotive CRMs are staler than bread that was baked 20 years ago. The large DMS systems are even worse. Holy shit are we in need of some newcomers to both these areas.

Would you agree that when a technology is originally coded its core is married to the time period it was coded? Philosophies are difficult to change even though snippets of code can be modernized. AutoBase is a good example of a solution that was destroyed by time. It was built as a sales person babysitting tool (I'm simplifying) in a time before the Internet. Moving from closet servers to a cloud-like database might still not be achieved in some of their clients' stores. Some dealers claim it takes 15 clicks to add an attachment to an email. They deserve one of the biggest WTFs this industry can throw! And that is probably why Dominion is going to be changing their CRM direction soon :sssh:

DealerSocket's Blackbird is a bomb. I have yet to hear from a dealer; one not provided by DealerSocket's sales team, who thinks they moved forward.

So that makes VinSoutions the next newest tech on the block, of the systems with over 1,000 clients. Ummmm. Yeah.

If I recall correctly, DealerSocket came to market around 2003. VinSolutions CRM was around 2002. Don't quote me on those dates though. But whether I'm off by even 5 years those dates ain't even in this decade.

Oh no, Chris, CRMs are antiquated and bloated on old technology (think of Microsoft being handcuffed to Windows XP). Something needs to come along and knock them all on their asses. And then I hope something modernizes DMSs because we're still living on 1980s philosophies there. Those slime balls are HURTING the industry just to maintain their market dominance. That's just evil.