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GM / Cobalt Flex Site - Extortion?

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joe.webb

joe.webb

UrRefresher
Aug 5, 2010
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Joesph
#1
It has been a long road for GM dealers and their love/hate relationship with Cobalt. Knowing that automotive websites are evolving, Cobalt has retaliated with an upgraded platform called their "Flex" sites. Most dealers are on this new customizable platform, but one of my dealer clients just got the wind knocked out of them with an email from Cobalt. This "upgrade" was meant to make dealers more competitive, but my client who just switched over to the new playform is being told that they only get a 60-day trial on the Flex site until it becomes $699/month more UNLESS they sign up for the GM Digital Marketing Package through Cobalt.

While I value the OEM's attempt to push dealers into more progressive tools, this ultimatum sounds like nothing short of extortion. My client just got through the process of dropping their primary website provider, switching back to Cobalt as their primary, and converting to the Flex site, only to be hit with the fact that they have 45 days left on Flex or they'll either get bumped on the monthly or switch back to the "original" (read: archaic) template platform. I'd love to here from the Refreshers here. Have you received this ultimatum or are you being extorted to go on with the GM Digital Marketing Package? Please...let us know...as they must "opt-out" (haven't even opted-in yet) of the GM Digital Marketing package and Flex site within 45 days. (ridiculous)
 
#2
I can't say it better than you already have, but I agree on all points. While Cobalt has certainly bolstered their product offerings over the past few years to get mostly current with times IMO, their strong relationship with the OEM gives them an upper hand that doesn't really give the client a choice.

No one likes being strong armed even if it truly is mutually beneficial which this is likely the case here; Cobalt makes more money, OEM is happy, Dealer gets better site...

That said, other providers fair much better (again IMO) regarding site design, platform flexibility ( pun intended), inventory, SEO and more and the fact that dealers are forced to not only use the " OEM " sites but are also " bumped " to higher priced package(s) to just stay current with the times it very unfortunate.

I know as someone who has 4 GM and 3 VW stores that are tethered to Cobalt I frequently wish that I could bring my secondary sites into compliance and not be forced by the OEM to use any products in the Cobalt Platform. Sadly that isn't nor will it ever be the case. It's not I don't like them, it's just I have a familiarity and comfort with my local provider that can't be duplicated by larger conglomerate providers. They never like it when I say that to them in meetings but it is the truth, no denying that from where I stand.
 
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#5
Hi Joe...I am part of the team at General Motors that recently launched the new GM Digital Marketing Package to the GM dealers, and wanted to share some additional information about the new package. When we launched the original Digital Marketing Package to our dealers in 2008, we felt it was an excellent solution for our entire dealer network as it provided the dealers with a solid platform to promote their stores and make inventory available to their shoppers. While Cobalt was the supplier of the Digital Marketing Package, this was (and always has been) a GM strategy. We continue to use Cobalt as the provider of our digital solution, as they can provide the network coverage our dealers need to be effective in this space.

Over the last five years, this dealer solution evolved to include mobile websites, display of in-transit inventory, behavioral retargeting, walk around videos, social media enhancements and a whole lot more. As we continued our search for more advanced features for the dealers, we sought their feedback to be sure we centered the changes around their needs. The result is the new "Performance Solution" of the Digital Marketing Package. This new solution includes the flexible website platform that many of our dealers had the chance to pilot this year, along with some new technology that provides consumers with a personalized shopping experience.

As with the original Digital Marketing Package, this program is voluntary for each dealer. As you noted in your post, the Performance Solution does carry a cost to the dealer of $699/month. The ultimate decision on what features/value to include in the new program, and therefore net cost to the dealers, was a joint decision between GM and its dealers. On the dealer’s behalf, GM has negotiated deep discounts for advanced features and the vast majority of dealers feel they are getting great value. When we launched this new package to the dealers on June 10th, we did so with a 60 day "test drive" (free trial). Dealers have the opportunity to opt out at any time to the Base Solution, a no cost package that is similar to the current Digital Marketing Package. We feel the Base Solution is still an effective digital solution, but believe the Performance Solution is really the way to go. Since it is a marketing package, it is also eligible for our in-Market Retail advertising program (aka "co-op"), so dealers can further reduce the cost through their advertising funds using GM Matching funds.

If it helps, I am happy to talk with you further to answer any questions you might have. Thanks for allowing me the chance to provide this additional information.

Bill Taylor
Manager, Dealer Advertising Programs & Dealer Digital Support
General Motors Company



 
#6
Bill,

Great to see cobalt GM and cobalt active on this forum, and there is no doubt that this platform is 100 times better than the old.

Its not about the technology, its not about the value, its not about the chevy and cobalt relationship....Its simply a matter of cobalt setting a bad expectation. The funny thing is I would have never said anything about this if Joe didnt describe how I felt to the tee.

Just out of curiosity how is the pilot coming where it will be a little easier for the consumer to request information? I remember a pilot going with less required info but that seems to have stopped on my page.
 

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#7
Thanks, Victor...I hope we can keep the lines of communication open.

We did conduct a pilot with about 200 dealer websites where we used Request A Quote forms without the customer address, in order to see the effect on bounce rate, etc. We did not see a significant change in the customer behavior, so are going to keep the "full" form for a while. There are a couple of reasons for that--having household info allows better sales matching to the delivery record. Also, e-mail leads are slowly declining while phone calls are rapidly increasing. Obviously, shoppers are favoring their mobile devices, and like the click to call feature. Not to get off topic (well, I guess I already did!), but this move toward more phone calls makes phone skills training at dealerships very important. Take advantage of your Voicestar system to listen to recorded calls--it is a great quality control mechanism.
 
#8
Hello Bill,

I appreciate you reaching out and getting involved in this post. Simply put, I'm not discounting the value that the GM Digital Marketing package brings to their clients. We have a couple dozen clients on the previous Digital Marketing package through GM (and Cobalt), all with varying degrees of success and satisfaction. For the money, the package improves dealers' online performance. I've seen the video introducing the new version of the GM Digital Marketing package in your dealer portal (that our clients give us access to) and I'm excited about the much needed changes.

With that said, my client (and I) are more disappointed with how this required "upsell" was brought to their attention. It has been years that GM dealers have asked Cobalt to be more competitive with website design, SEO, and lead conversion strategies and the "Flex" sites appeared to be Cobalt and GM's long-awaited answers to their needs. While we're a fan of Flex platform compared with the previous templated offerings, the dealers were simply never alerted that it was a "gotta take this to get that" scenario. Many dealers will take the Flex sites willingly, and never notice an upcharge because they're on the Digital Marketing package. However, for those dealers that were simply looking to take advantage of the improved platform, but not sign on for a costly package, they'll be quite disappointed. Whether we, as a consulting agency or not, recommend Cobalt/GM's Digital Marketing package or something else, the end decision is left up to the dealer.

Those dealers looking to squeeze all of the value out of their vendors (specifically, their OEM-required website vendor) for the money are unable to do so without buying into a much more costly package (whether they choose to or not) in this instance. That is my only concern with this package moving forward. It delivers great value to dealers... sure. It is an drastically improved website platform...yes. It is the OEM and its approved provider trying to better their franchise dealers' online presence... of course. It comes at virtually no additional cost to the dealer? Unfortunately, no. It comes at a significant cost. And there is the rub. The pay to play format that is about to be thrust upon dealers attempting to stay competitive is, in itself, an unfortunate event that they will be unable to avoid if they want improved tools.

If you can shed light on the fact as to whether or not a dealer is able to use Cobalt's Flex platform without either a $699 monthly increase or signing on with the much more expensive GM Digital Marketing package, please let me know. I will gladly call you tomorrow to get more details, and I am scheduled to attend one of your Thursday webinars about the enhancements to the DM package through your OEM portal already. In the end, I want my clients to lean on their OEMs to be as technologically advanced (for the money) as humanly possible, but I also want to be their advocate if vendors are over-playing their hands or positions when it comes to forcing in services. I'm sure you understand. You'll hear from me tomorrow. In the meantime, feel free to respond on this forum.



Bill Taylor said:
Hi Joe...I am part of the team at General Motors that recently launched the new GM Digital Marketing Package to the GM dealers, and wanted to share some additional information about the new package. When we launched the original Digital Marketing Package to our dealers in 2008, we felt it was an excellent solution for our entire dealer network as it provided the dealers with a solid platform to promote their stores and make inventory available to their shoppers. While Cobalt was the supplier of the Digital Marketing Package, this was (and always has been) a GM strategy. We continue to use Cobalt as the provider of our digital solution, as they can provide the network coverage our dealers need to be effective in this space.

Over the last five years, this dealer solution evolved to include mobile websites, display of in-transit inventory, behavioral retargeting, walk around videos, social media enhancements and a whole lot more. As we continued our search for more advanced features for the dealers, we sought their feedback to be sure we centered the changes around their needs. The result is the new "Performance Solution" of the Digital Marketing Package. This new solution includes the flexible website platform that many of our dealers had the chance to pilot this year, along with some new technology that provides consumers with a personalized shopping experience.

As with the original Digital Marketing Package, this program is voluntary for each dealer. As you noted in your post, the Performance Solution does carry a cost to the dealer of $699/month. The ultimate decision on what features/value to include in the new program, and therefore net cost to the dealers, was a joint decision between GM and its dealers. On the dealer’s behalf, GM has negotiated deep discounts for advanced features and the vast majority of dealers feel they are getting great value. When we launched this new package to the dealers on June 10th, we did so with a 60 day "test drive" (free trial). Dealers have the opportunity to opt out at any time to the Base Solution, a no cost package that is similar to the current Digital Marketing Package. We feel the Base Solution is still an effective digital solution, but believe the Performance Solution is really the way to go. Since it is a marketing package, it is also eligible for our in-Market Retail advertising program (aka "co-op"), so dealers can further reduce the cost through their advertising funds using GM Matching funds.

If it helps, I am happy to talk with you further to answer any questions you might have. Thanks for allowing me the chance to provide this additional information.

Bill Taylor
Manager, Dealer Advertising Programs & Dealer Digital Support
General Motors Company
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