Cars.com acquires Dealer Inspire

[FrigginBandit]

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.



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

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.

Well said @Alex Snyder and I agree. The best part of all this is two fold, first is the FACT that none of these automotive CRM vendors have any relevant retailer successes in the ranks. I’m not talking about the eComm guy that was fired or the used car manager that used a “book” and his “gut” to appraise trades but an actual tried and true self-made retail success. That being said, how do they know what’s supposed to happen? They know how to desk? NO. They know how to take a turn? NO. The funny part is most store action plans/workflows are written by the failed salesman or the failed manager. Brilliant... the second component at play here is the double negative, the fact they’re clueless is one thing and the fact the industry had already passed them by is the other. But, they are frozen in time and their tech is too. It was obsolete before it was launched. Now, many will say “they’re making millions” and while that’s true, so are my stores. The main difference is most of the “consultsnts,” “guru’s” and “change agents” are self-proclaimed and being able to sell to a dealer is ridiculously easy especially when you use made up words they’ve never heard of. I’m more impressed with SalesForce (publicly traded and doing well - ticker is CRM) than I am with ANY of the current solutions available today.

 

[FrigginBandit]

Here’s an idea, rather than taking advantage of dealers flipping CRM’s annually, go in with a before and an after of actual results and put your money where your mouth is. Make a guarantee. Prove to me you’re different and prove to me you’re better. Results speak louder than anything they can spew.

Now, before any gurus or vendors use their ridiculously insulting “get out of jail free card” and that’s “we can’t force your people to do what we say” I’ll offer you this... Steve Jobs didn’t have to “force” us to learn the iPhone. He designed it because he was an actual telephone user and knew where the breaks were and also thought ahead to where the market was headed. So, rather than blaming the customer, the dealer, for your failed software and backwards vision, just make a better mousetrap that doesn’t prevent people from engaging it and using it. Embrace the business. Embrace how it’s actually practiced.

Here’s how: Hire a strong and hands on general manager from a powerful dealership and listen to him/her vs. the unemployed eComm guy/girl wanting to be a “vendor” because they think it’s better hours and weekends off.

 

[Chris Cachor]

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.

I stand corrected, then. Weren't you leading the design of Dealer.com CRM? Was that tossed after the acquisition? I know the DMS's are ancient but I thought Automotive CRMs were quite competitive. What is exactly stale about them?

That is true aside from the part that neither Dealer Fire nor VinSolutions were acquired by publicly traded companies

My bad, I thought DealerSocket was owned by ADP and for some reason I thought Cox was public.

 

[craigh]

I stand corrected, then. Weren't you leading the design of Dealer.com CRM? Was that tossed after the acquisition? I know the DMS's are ancient but I thought Automotive CRMs were quite competitive. What is exactly stale about them?

Their idea of a "new feature" is adding a Text This Customer button.
Most of them can't export data properly/effectively/reliably (some of this due to RCI/etc compliance)
Most of them offer a terrible email interface for designing emails that look awful to the customer
Most of them don't track the email activity, nor do they allow reporting on it (ie: show me customers that opened the weekend sale email)
Most of them don't offer bulk customer management
Most of them don't allow their APIs to access the important data, so you are strapped to their interfaces instead of integrations

It's not the DMS world by any means, but the CRM world is still a sad state of affairs.
Companies like Salesforce offer a CRM that has incredible flexibility, endless integrations, etc.
Automotive CRMs let you choose which of their $1000+ add-ons you want for the core product, which is basically a database of your customers.

That's not to say they're not competitive, they're just competing years behind where they should be.

 

[Chris Cachor]

Their idea of a "new feature" is adding a Text This Customer button.
Most of them can't export data properly/effectively/reliably (some of this due to RCI/etc compliance)
Most of them offer a terrible email interface for designing emails that look awful to the customer
Most of them don't track the email activity, nor do they allow reporting on it (ie: show me customers that opened the weekend sale email)
Most of them don't offer bulk customer management
Most of them don't allow their APIs to access the important data, so you are strapped to their interfaces instead of integrations

Wow, I was not aware of this, aside from the API part. I remember seeing some tools about 5-7 yrs ago and thought it was pretty robust software. I thought adding in Dealer.com CRM was going to make things even more competitive.

 

[Alex Snyder]

I stand corrected, then. Weren't you leading the design of Dealer.com CRM? Was that tossed after the acquisition? I know the DMS's are ancient but I thought Automotive CRMs were quite competitive. What is exactly stale about them?

I should have mentioned that I wasn't attacking you, in that last post, Chris. I sometimes use other's posts to make a point to future readers. Apologies if it felt like I was singling you out.

And on that note, I also want to say that I don't care where innovation comes from as long as we're all moving forward. If VinSolutions creates something totally new that is very cool as far as I am concerned.

To keep this thread on topic, @joechura announced that they are building a CRM. It isn't like it has been a secret, but I think that little announcement keeps this CRM tangent a little more relevant.

Lastly, yes, I led the design of the Dealer.com CRM that was later named "Dealertrack CRM." It was tossed after Cox acquired Dealertrack on the difference in revenues. VinSolutions had been in the market well over a decade longer, with a dedicated Kansas City office and significantly higher staff count. Even though the Dealertrack CRM had considerably more modern technology, and growing faster than any CRM had at that point, the dollar argument was hard to beat. I understand the decision. I can't say that I agree with it, as it was certainly possible to have two solutions of two different flavors, much like Toyota offers two pickup trucks.... but anyway. I am not bitter, but I do feel like I never completed my own CRM mission. It is a personal fire that is still burning.

 

[craigh]

Wow, I was not aware of this, aside from the API part. I remember seeing some tools about 5-7 yrs ago and thought it was pretty robust software. I thought adding in Dealer.com CRM was going to make things even more competitive.

I thought the same, but once you go from hearing about DealerSocket (and others) to actually using them, you realize how much of it is reality.

 

[joe.pistell]

Aquisition's success rests on the shoulders of the top senior execs of both companies. Ultimately, the CEO of the acquirer is where the magic happens.

Scenario: Rainbows and Unicorns...

@Alex Vetter and @joechura have great energy as leaders & synergy happens! Both businesses build a culture to share & leverage talent and both businesses grow without life-sucking integration prerequisites.​

Scenario: Ohoh... Darth Vader is watching...

DAMN THOSE ACTIVIST INVESTORS. Headline Dec 2017:
Starboard Value Wants to Take the Wheel at Cars.com
*link*​

UPDATE: Headline Jan 2018

Cars.com Inc (CARS) - Starboard Value LP has filed an amended Schedule 13D/A, reporting a 7.00% ownership stake in Cars.com. This is a decrease of 29.29% from their previous filing.
*link*​

Alex Vetter goes Jedi on the Dark Force!

 

[joe.pistell]

regarding e-commerce:

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

Yup. Consumers love risk-less purchases, It's why AMZN Prime is so awesome. It's coming to our space right now.

I call this 'Risk Transfer'.

• Old model: "You bought it, you own it"
• New Model: "You bought it, enjoy it for *x* days to make sure you like it"

Pioneering Dealers are all over it now. In a few yrs, we'll hit a tipping point and everyone will have to jump on board. If you plan on winning in E-commerce, you can't do it without taking on the risk of the sale.


p.s. Wyler's FastLane is the poster child of new-era risk-less car enjoyment

 

[joe.pistell]

How jillions of dollars were spent on e-commerce in a few simple slides.

"Everyone knows, Shoppers hate the car dealer experience"


Not one vendor made a scientific study to validate this 'truth'


Vendors ask... Now that we've built it, where are all the sales?

​

Everywhere I go, I've been warning all, e-commerce won't hit critical mass until it becomes a natural conclusion of a rich & productive car shopping experience*.

This simple yet strategic observation is going to be hard to execute, but, it can be done. And when it happens, look out!



*Currently, shopper concludes the dealership visit is required... because our websites suck