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Cars.com Followup Emails With Other Dealers Inventory

Mr? Thanks Mr. Paramo! Sorry if I didn't word it better, I don't think it has to be the dealers way, just include them in the testing. Looks like Linda said they are and I am glad to see that.


My concerns;

1. Is Cars.com offering too much info to the consumer with so many choices as we saw in Bill's screen shot?
a. Do they know what the funnel mix is, low to high funnel and could they be frustrating the consumer when they just sent a request by serving up so many more choices.

2. Will this type of marketing lead to "here's a better price in your area" marketing - essentially creating a race to the bottom line to be top consideration.

3. Regards to data being shared - are dealers, GM's, GSM's reading every contract, even when a rep says, "its just a price change" - too many dealers haven't and that's where some vendors have changed the rules and ....gotcha!

Ok ok, Eley,

I agree that more dealer involvement will result in less friction, more understanding, and just perhaps a better product.

What I don't know, and that's why I write perhaps, is that people like us--so deeply involved in the business--can sometimes have a good gauge on what consumers really want or expect.

We run tests in our own products and sometimes I prove my own beliefs wrong!

I think we have transitioned into a society with great technology expectations and very self centered, a lot of things are different than what we think. So I think!
 
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Jim Ziegler Has The Cars.com Marketing Strategy All Wrong - Automotive Digital Marketing Professional Community




Before I put my muscle on one side let me say that both contenders, Zig and Brian, have the dealer’s interest in mind when discussing these issues. For this there is no right or wrong but a point of view to make things better. Thank both of them for their efforts.


I try to see what every 3[SUP]rd[/SUP] party site does not just from the POV of their monetary advantage but for what could this do for the customer—the car buyer. In the last few years social media and better Internet systems have changed the way companies shape their programs: What is better for the customer creates more interactions and more interactions create more business. Everything else is almost secondary. Look at all the efforts Microsoft has put on mobile or the Zune, in the end what customer wanted won. Microsoft’s vision had no relevance whatsoever.

Looking at Cars.com inventory display share I can’t find any advantage for Cars.com other than maybe claiming more VDP views in their reports. No further trick here. Pay attention than unlike other cases like for example Autobytel selling the customer info to Get Auto (as it was claimed by a dealer) where one lead source is selling to another lead source, Cars.com is showing another dealer cars to a customer but they also show your cars to the other dealer’s customer. This is not a “customer data selling” but a customer sharing that works both ways for the dealers.

In this case I have to agree with Brian Pash that we shouldn’t lynch the 3[SUP]rd[/SUP] party site without knowing whether this is a good thing or not. A good thing in this case would be that customers don’t feel boxed by a set of results start searches all over again. for example a customer searches for a Ford Mustang and because they see your competitor’s they look at their, come back to your’s, contact both, etc. If Cars.com doesn’t share the inventory maybe the customers, as research shows, will go to other sites to look for more options forcing you to be on every single website there is; hence the old question: why do I have to be on every single 3[SUP]rd[/SUP] party site? Well… maybe you were telling customers to go to other sites to see more options.

We are in the age of transparency and we need to look at things from the customer POV. If they want to look for more cars they will. Your trucks to keep them boxed in our inventory will not work. The easier you make the search for them the more they will use the assets that you pay perhaps allowing you to have to pay for less assets.

You should cancel Cars.com if the ROI is not good but you shouldn’t cancel Cars.com because they are spending money on R&D and looking for better ways to service the public. Cars.com customer is the car buyer, not you. Think about it: If Cars.com makes you happy but you sell no cars, you leave. If Cars.com makes you mad but you sell a lot of cars, you stay.

Let’s work with Cars.com to create a better system and not assume that everything on the vendor side is done by their evil ways to get your money. Maybe this is a wrong move and customer will get confused with so many choices but let’s learn it so we can discard it instead of creating a digital lynching.
 
Cars.com customer is the car buyer
Cars.com may be dependant on the car buyer, but the dealer pays the bills. I've been following this discussion on a couple of forums. I didn't plan to join the discussion on DealerRefresh. In the past, I have been a strong supporter of Cars.com but this really is a game changer. I can no longer recommend them. If I was at a dealership, I would cancel them.

I will have to agree with Jim on this one.

I'm trying to figure out the motivation in this. It might be like the "Make an Offer" button on dealerships websites. It doesn't ever sell vehicles, frustrates the dealership but might increase submissions.

After a customer has shown an interest in a specific vehicle, by submitting a lead, it is absolutely wrong for Cars to send them a list of competitive vehicles. What if the customer immediately visited the dealership and purchased the vehicle? On their return home, they receive a list of cheaper vehicles from Cars. Think that this might bring on a case of buyer's remorse?

Cars is pushing your inventory to TrueCar and other sites. For someone that is vehemently apposed to doing business with TrueCar, you can imagine how much I like this idea. I find it hard to believe that Cars has joined this unholy alliance without some form of compensation.

At the very least, I would be looking at the fine print on the contract.
 
Cars.com may be dependant on the car buyer, but the dealer pays the bills. I've been following this discussion on a couple of forums. I didn't plan to join the discussion on DealerRefresh. In the past, I have been a strong supporter of Cars.com but this really is a game changer. I can no longer recommend them. If I was at a dealership, I would cancel them.

I will have to agree with Jim on this one.

I'm trying to figure out the motivation in this. It might be like the "Make an Offer" button on dealerships websites. It doesn't ever sell vehicles, frustrates the dealership but might increase submissions.

After a customer has shown an interest in a specific vehicle, by submitting a lead, it is absolutely wrong for Cars to send them a list of competitive vehicles. What if the customer immediately visited the dealership and purchased the vehicle? On their return home, they receive a list of cheaper vehicles from Cars. Think that this might bring on a case of buyer's remorse?

Cars is pushing your inventory to TrueCar and other sites. For someone that is vehemently apposed to doing business with TrueCar, you can imagine how much I like this idea. I find it hard to believe that Cars has joined this unholy alliance without some form of compensation.

At the very least, I would be looking at the fine print on the contract.

Doug,

You can't think that Cars.com may be dependent on the car buyer, the car buyer is everything to them.

With car buyers, dealers will use them. Without car buyers, they may agree to all the dealer's requests, and dealers will still leave.

I don't argue whether this is a good approach or not, I argue that the business has changed on how customers perceived things and that a "digital lynching" every time someone tries a new approach s not the way to encourage R&D.
 
Doug,

You can't think that Cars.com may be dependent on the car buyer, the car buyer is everything to them.

With car buyers, dealers will use them. Without car buyers, they may agree to all the dealer's requests, and dealers will still leave.

I don't argue whether this is a good approach or not, I argue that the business has changed on how customers perceived things and that a "digital lynching" every time someone tries a new approach s not the way to encourage R&D.
Yago,

This isn't a "digital lynching". Did you get the memo, with the proposed changes, from Cars? I don't consider Cars decision to push a dealer's inventory to TrueCar and God knows who else minor tweaks. Dealers are evaluating the changes and thinking, "I didn't sign up for this". We are all big boys and girls. Dealerships will evaluate the changes and decide if they want to continue to do business. As a consultant, I'm not going to continue to recommend them.
 
Yago,

This isn't a "digital lynching". Did you get the memo, with the proposed changes, from Cars? I don't consider Cars decision to push a dealer's inventory to TrueCar and God knows who else minor tweaks. Dealers are evaluating the changes and thinking, "I didn't sign up for this". We are all big boys and girls. Dealerships will evaluate the changes and decide if they want to continue to do business. As a consultant, I'm not going to continue to recommend them.

Anytime there is a "cancellation uproar" called by digital marketing leaders without more knowledge of what is happening is a digital lynching.

For what is worth, Cars.com response:

http://dealeradvantage.cars.com/da/2013/04/why-cars-com-engages-shoppers-beyond-the-lead

I have expressed that I don't agree or disagree with what they did until I see the results. But here was also one of mine concerns; we are discouraging vendors from investing in R&D:

From Linda Bartman: "This is a best in-class web-experience popularized by leading sites such as Amazon.com. By constantly testing programs like this, we are able to find ways to bring more value to our partnership. So far, our data shows this campaign has the potential to do that."
 
Yago, Honestly, most dealerships do a poor job of following up with customers which, in part, explains why 58% are returning to the site. Linda Bartman isn't going to state this publically. She sees that data coming from the customers and the studies that continue to come out. Obviously, Cars has to be frustrated by the lack of proper engagement from the dealers. Most dealerships would never be aware that the program exists.

I am still concerned with the timetable on when competitive information is sent to the customer. However, my biggest issue still remains with Cars pushing the dealer's inventory to TrueCar or anyone that I they don't do business with.