The Myth of The Dealer Web Site Conversion Ratio

[bhoecht]

eBay Motors sells $7B each quarter in cars as of 2005. That should qualify as conversion since it is not leads.

Just because your webite today isn't capable of real ecommerce doesn't mean that isn't what consumers want.

A 2% conversion ratio to an Internet lead means 98% of your visitors didn't like (for whatever reason) what they found at your website.

No website "converts" 100% as the other, simpler industries show.

Good website design with clear navigation, strong calls to action and relevant content are all worthwhile too.

So is having capabilities on your website to make the destination worth the journey to the consumer. As "call or email" is not a path to a better buying experience, 98% give up in frustration today.

Don't believe me? Grab 10 college kids and have them go to your site and ask them if they would use it to buy a car. Then point them to the demo on the Ai-Dealer home page and ask them "If one dealer allowed you to shop that way (completely online) and another did not, would that make a difference to whom you dealt with?" Now ask women buyers. Now as busy working professionals. Now ask all those consumers who have had a bad prior experience with a dealership.

Conversion ratio of what the site has and does today is the tip of the iceburg.

 

[Joe Pistell]

Brian,
You figure out a way to take a tradein... and I mean ALL the way in, then your argument may gain some traction. Trade-ins are why the manufacturers aren't getting rid of dealers.

Hmmm... Let's toy with that.
Once your shoper picks a car, then you help the shopper LIQUIDATE their trade-in at POS (point of sale). EASY! You need to establish a market place to have retail sellers and wholesalers come together.

Ohoh, reality is coming!
Your prospective eCommerce shopper will bail on you once they find the trade-in's ACV (and they're $5,000 upside down).

hahaha...
ahem, sorry about that.
Don't use the ebay model to create parallels on your platform. It still an auction, and you're closer to landsend.com!

sidebar:
After 3 years in this industry and as an outsider looking in...
Gone are the days of a dealer bullying up their customers.
I USE TO FEEL SORRY FOR THE RETAIL CAR BUYER. NOT ANY MORE. THEY ARE SHARKS AND WORK HARD AT MAKING US SWEAT. IO, THE TABLES HAVE TURNED 180*.

The retail carbuyer is upside down and it's our fault! NOT. They ought to teach a class in High School about depreciation in HS. Buyers are mostly un-loyal and will tell you lies and half-truths to get the best deal.

Bitch and moan, whine and complain. These are the sounds of customers in denial. They ALL know that they loose $$ the moment it rolls off the lot. They all know the Banks get their finance monies 1st. Oh! they'll bitch, moan, whine and complain when that mean dealer won't offer them what the "need".

No Brian... hate to say it. "Avoiding Dealer Angst" is not going to fuel your business model.

 

[Wayne Anderson]

Wow...

I hadn't been to DealerRefresh for about 5 months and coming back I noticed that the conversation has heated up considerably, that's great.

Good job Jeff for sticking with this.

This post and the follow-on conversation has struck a MAJOR nerve with me.

My 50,000 foot view is that our Internet vendors and consultants are FAILING US. If I just made a bunch of enemies, I don't care...it's time these guys are called out.

I'm talking mostly about the big guys...Dealerskins, BZ Results...those guys. (I know there are some small shops out there trying hard.)

Why are we as an industry behind the times?

I'm personally sick and tired of our industry lagging from an Internet technology standpoint. Its really our fault as auto Internet professionals for allowing this to go on.

Due to the unique nature of the car industry, we should be leading the way with Internet innovation in some areas.

I've been an Internet Director for 3.5 years for the same group. I taught myself web programming during that time because I didn't want a website with a hodge-podge (sp) collection of features that don't work in harmony.

I feel I'm in the trenches, which our vendors are not and that's the problem. While I try to think up a new process or piece software to push the needle, blaring in my ear is a 12-person call center literally 6 feet away from me. I get to hear hundreds of phone calls from customers. It's tough to concentrate sometimes but I like my unique vantage point. I like developing in the trenches.

Our vendors are not in the trenches. They'll use reports from NADA...or showcase some 'dealer success story' where they take a dealer from nothing to something and claim 1000% results. Please.

Do they realize our customers web habits are changing about every 6 months. Yesterday it was blogs, now its microblogs like Twitter.

Everything on the Internet is changing fast. I know. I have to purchase at least 6 new programming books every 4 - 6 months just to keep up.

I'm still getting calls from vendors pushing SEM as the thing. WHAT! That was 20th century crap.

Our lead providers still charge the same price they did years ago with ZERO innovation.

And we now have an Annual Conference that, quite honestly, is not helping the 'innovation' issue.

But I'm not one to just kick sand and complain...

I've put up a Satisfied Customer Cam on our website. Why am I the only one with this? Where are our vendors?

I'm working on a "Request a Personal Video" feature. Again, shouldn't this be something I'm getting a call from a vendor to purchase?

I'm nobody special, I just care...A LOT!!!!

Do our vendors really care A LOT about innovation or our success? They all will say they do. But isn't talk so cheap?

Are our industry Internet consultants overpaid? Are we really getting the best advice and ideas? How should the auto industry react to Google's OpenSocial or Android initiatives? What can we learn from Facebook, or how will the DataPortability initiative affect us?

These are huge topics on the Internet right now that have and will continue to change how the Internet is consumed buy our lovely Internet customers. And that should be important to us too. Move with our customer, not remain stagnant.

But I bet you won't get a call from some expert auto Internet consultant talking about these things. (unless they just read this)

James - Looking at other industries is a great idea, but there really isn't anything similar to the car industry. The sales transaction is unique. Homes take too long to sell. Art is a strange beast.

Brian - you need to add to your customer 'want' list:

I want to be entertained and have fun.

Sorry to vent. I guess I should get more involved with the conversation here and not let things build up.

 

[Joe Pistell]

Wayne,
Very innovative work. Love your lead harvesting efforts, Internet Coupons that increase with additional participation, just dammm smart. Love the referal push, more smartness! Satisfied customer cam is friggin' brilliant! The "6 more photos avail..." yet another unique approach!

Oh sure there are things I don't care for, but who cares, every market is different and you're rockin over there!

Wayne, You and I are RARE in our industry. Creative Internet Directors are the wave of the future, see my recent rant: http://www.dealerrefresh.com/my_weblog/2008/01/pay-plans-back.html#comment-97404852 Your efforts NAIL my message:

"...if someone were daring, they may find more ROI by out efforting his competition with personalized content and services.

For the sake of argument...
If you sell 200 units per month and you have 2,000 unique visitors per month, that means 1,800 BOUGHT somewhere else.

Mr. General Manager, can you tell me where the dry gun powder lies?..."

We're not alone, our efforts are quietly happening here and there and I am on the look out. See My post "The winds of change are among us, enter in...the Game Changers."

http://www.dealerrefresh.com/my_weblog/2007/10/the-winds-of-ch.html

Wayne, we are rare because your owner is rare. Your owner dares to do things diffferent. He comitts the cash and resourses to FUEL YOUR FIRE. jeremy Franklin is one smart dude, he knows who and how to hire and YOU are an important player on one hellofa killer team! KUDOS!

I am in the middle of a site wide, ground up makeover and I'd love to swap ideas. My site may look prehistoric, but the metrics are off the chart. http://siteanalytics.compete.com/usedcarking.com+jeremyfranklinsuzukiolathe.com/?metric=uv

I am going to retain the essential elements that keep the metrics high and work on improving deeper metrics.

I'd love the opportunity to swap stories and ideas, if you're ok with that flip me an email at joe[dot]pistell[at]usedcarking[dot]com and let's chat.

We Independant Site developement directors need to stick together. It's our effort and attitude that kicks the cookie cutters in the b*tt and bring value to our team.

Hope to hear from you,
Joe

 

[Shaun]

My comments are for Wayne.

First of all... nice job with your customer testimonial videos. It's great to see some progressive guys out there getting it done. Regarding video, I'd be happy to give you some simple ideas about how to complete your "request a personal video" concept. Feel free to contact me through www.dealeradvisor.com if you'd like.

Lastly, why do you think SEM is 20th century? One thing I know is that there are many self proclaimed expert SEM companies knocking on dealers doors. Another thing I've learned through research is that they're not all created equal. SEM is another topic I'd love to chat about if you're interested. Best of luck in all things!

 

[Wayne Anderson]

Joe,

I appreciate your comments. And I agree that the game is changing very quickly...about every 4-6 months.

We may be at 25K+ dealerships in the US now, but that number will drop. The digital divide between dealers is growing too rapidly. Most owners feel they have an Internet strategy and don't want to break what they think is not broke. Their selling cars, but feeling the grind too.

What they don't realize is that their website starts depreciating, like cars, the minute they put it up.

Tech grows old fast. Websites grow old even faster.

I talk alot about the website because I believe it is the heart of the whole system. It's Grand Central Station. (theres a landmark you should know) I want my customers to come back to the website multiple times to complete various tasks. It makes them think they're "buying a car over the Internet." They're not really, I'm just putting them through some hoops to give them that impression.

If a BDC rep can't get the appointment, we give them homework, something to do. I want them to get off the phone and go back to our website to do something instead of going to another dealer.

I track every single click a customer makes. I know what they looked at, when, how often, etc. I even know how many errors they make on forms. That gives me an idea of how upfront this customer is. Did they try to give me 'lkshjdflksdj' for their firstname or a bogus number? Or did they fill out the form straight-up with no errors? All these miniscule details come together to form a profile of the customer and gives my BDC reps an angle of attack.

I score each of my leads coming from the site. I call it the EngageScore. The more a person clicks and the deeper they click, the more points they score. If they start drilling down onto specific vehicles...opening pictures, moving cars to favorites, they'll score even more points. I can then rank order them based on their activity. A higher scoring customer gets more attention from the BDC. If a visitor just hits the site and leaves, we'll still work the lead, but won't put the same effort into it. It gives me a way to divide the work up better.

If they say over the phone their only looking at trucks, we'll look at their Website Activity profile (integrated into our CRM) and see they also looked at cars and suvs too. Hmmm...trucks only? The '70% will switch' rule is alive and well today, at least in the subprime market.

These tactics don't always work, in fact they fail more often than they succeed. But I can push the needle with them, and that's $$$$.

The iPhone was a game changer too. There was nothing on the market like it when it debut. It's UI was sleek. But, now you're seeing touchscreens on other phones. The 'iPhone' effect will directly impact us too. Our car buyers are being introduced to some snazzy tech. Then they go to a dealer site and YUCK.

What you saw on my website and the tactics I've describe here are 2 years old. I have a whole new bag of tricks I'm working on. I'm focused on providing an engaging, fun experience. We, as an industry, desperately need to add the 'fun' factor into the car buying process. It's easier said then done though. I'm still trying to figure it all out. I'm really just shooting from the hip and hoping something sticks. I don't know if something will work until I try it. But it's so important to keep trying - something more owners need to understand. Their Internet strategy should always be a 'beta' version. Stop moving and Internet wave will sink you.

I saw the compete.com page, your traffic is off the charts. How? SEM?

Regards,

Wayne

PS: Sorry for the long posts everybody. I've been out on an island (not literally) for a long time and don't ever get to talk about what I do.

 

[Wayne Anderson]

Shaun,

Thank you too.

I think SEM is crucial. It's just not the 'end-all-be-all.' It's been around awhile. I just get irritated when a consultant calls me pushing it like its the hottest thing. I don't think it is. Besides, shouldn't they already have known that I am doing SEM before they call me? Why can't these guys go out and do a couple searches on Google to know if I'm already out there?

I'm focusing more on organic listings now. That's why I put a blog underneath my flash site. I wanted to add some 'meaty' text for the search engines to munch on. I'm not allowing people to comment yet though. I'm afraid of what I might get. If a deal goes bad, I don't want the customer running to my blog to slam us. And if I were to delete the comment, that might create even more problems. So for now, I'm just putting up a simple blog.

I'm starting to think the Blog is just as important as SEM. Someday, you'll have to have one or you'll seem mysterious in the eyes of the customer. I'm just guessing though.

Regards,

Wayne

 

[Joe Pistell]

Wayne,
As you know, Compete.com's not dead on accurate, I use it for a relative measurement.

Everybody has a unique situation. I am in rural upstate NY with 1,500 used units on the ground. Nearly every make & model is here. So we're the big fish in the small pond. Your market and inventory profile is 180degrees apart from mine, so comparisons are a total waste.

I need help with internal measurements, I can help with SEO.

FYI: A few months ago, I launched this blog as a SEO test bed: http://usedcarqueen.com/ It's not your common blog where someone puffs community service stuff. It's truely a SEO long tail farm. Only a handfull of autos on it, very time intensive, but it's worked beter than my expectations. Too busy with other tasks to take it to the next level.

Toss me an email, I need some help with internal tracking and measurements.

joe

 

[Wayne Anderson]

Joe,

I was just checking out your usedcarqueen.com - I love it. Very nice. I was curious about what kinds of comments you have been getting? Are the customers being cool?

Wayne

 

[Joe Pistell]

Thnx for the compliments Wayne, to me a blog is Search Engine Velcro. Blogs are ideally configured to be SE friendly (in my world THIS is the reason blogs are so prevalent)

So... It's a beta, less than 10 units up there so there isn't enough "size" to have a community magic, and to me honest, the comments are a small part of the game plan.

thnx~
Joe