- Apr 7, 2009
- First Name
Bill,When an established vendor guarantees sales, can we please go through this level of mathematical scrutiny?
You are one of the few ppl in our industry that make me stop what I am doing, close the doors and read what you're saying. I'd like the opportunity to speak to your thoughts.
1st, On DealerRefresh, I do everything in my power to speak from my dealer roots, not from my vendor position. I take great effort in making sure that I never tout a product. My posts here will always reveal this rule I've made for myself. If I break this promise, plz slap me.
Ok, with that horse shit out of the way, why all the 'mathematical scrutiny'? For me, it's all about "yield".
"Yield management is a variable strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource (such as airline seats or hotel room reservations or retail inventory, etc)."
Yuk!! Geek talk!!! Don't give up on me yet! ;-) Plz allow me to explain...
Selling cars is a team sport. Sales are the product of the DP's investment and the management team's efforts. Sales at the end of the month is a simple score of the entire team's productivity*.
How does this 'mathematical scrutiny' of a Digital Retailing (DR) product connect to selling more cars? Looking at relevant stats can give us a high-level look under the hood.
Question #1). Has Michia built something different?
Michia's post was data driven. I saw gaps. Michia filled them :-). Like Ed mentioned, Michia is not introducing DR to the industry, he's #4 or #5 or so, and, like Ed mentioned, I see sales numbers that are common with DR.
Question #2). Does Michia's product help a sales rep have a productive discussion?*
We haven't touched this question yet. Michia hasn't shared a link... yet ;-) IMO, building a DR solution that answers this question is 100x harder than it appears. From my POV, DR's highest ROI is to assist the rep and shopper (as needed). DR can be a great be-back tool and BDC's should be experimenting with ways to get phone ups to commit (especially with used or scare units).
My DR Summary:
Shopping carts are as old as the internet. If shoppers wanted an automotive shopping cart solution, we'd had them a loooong time ago. Look how eBaymotors empowered the shopper, yet failed. Why? Because shoppers find the internet experience as a giant cluster f**k. Shoppers discover quickly that the internet can't help them buy a car, shopper's use the 'net to prepare them for the dealer visit. IOW, the dealer experience is superior to the internet experience (sooo many ppl miss this simple fact of life).
Lastly, Car shopping is web-rooming. IOW, shoppers WANT to buy bricks and mortar (because its better than internet only sales).
"Brick and Mortar Stores are the New Black in ecommerce"
*My TL;DR background:
For me, I was a marketing director for successful 3 store group that sold 6,000 cars a year. I had a $2mill annual budget (~$350 PVR) and a team of 12 to make it happen. The owner was a genius, 2/3rd's of my pay was on deliveries. This pay plan made me see and think on his level. I learned quick... "does it sell cars?" AND I learned that marketing's job was to help a sales rep have a productive discussion, all else is a waste of precious cash.
I oversaw the whole machine, from TV ads, direct mail to 'all things internet'. Then, I'd watch all this marketing work bear fruit... ups would show up. Because I got paid on sales, not ups, marketing was 1/2 of my job. I built & optimized all kinds of sales processes to work the opportunities to get paid.