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What is the Key Ingredient for a Successful Dealership Website? by Mitch Lipon

kurbain

Rust & Dust
Jun 23, 2010
27
0
First Name
Katie

What is the key ingredient that goes into a successful dealership website? SEO? Design? Ease of use? Given the time, I’m sure we could come up with a very long list of “ingredients†that could be argued as the most important. I’m sure if we conducted a poll the results would be quite telling. On the flip-side of that coin is the argument that no single “ingredient†is most important, but rather it’s the proper “recipe†of ingredients, carefully crafted and considered for each application that truly makes the difference. I, and others that fall into this camp would support the notion that only a finely designed site, supporting a well-crafted Brand, tailored to the given audience, with content rich organic terms, and just maybe a few secret ingredients added by your given provider, would be expected to perform as desired.​


The question is; Is it really that simple? And the next question is; Can you really expect your website to stand on its own and perform? It seems only logical, that if it is true that, no single “ingredient†is the most important to your site, it should stand to reason that, no site, all alone, can be expected to return the optimum desired results! I would again argue that it is a great site, combined with a well orchestrated Social Media program, proper customer communication, just the right amount of advertising, and a commitment to community involvement that will ultimately reward a dealership with the website results they truly desire. Think about it. If your customers only hear from you when you want to sell them something...why would you be the person they would automatically turn to when they want to buy? What’s stopping them from Googling “car dealerships, My Town†vs. Googling “Your Dealership Nameâ€? Which result would you prefer they get? Most importantly, which customer will yield the highest margin? Ultimately, which will result in the website performance standards you really want?​


Gone are the days where dealership marketing was as simple as newspaper, TV, and radio. As tempting as it may be, we have not simply moved to the days where an “awesome website†is the answer either. The buying public can find information everywhere. They DEMAND to be talked to and moreover, they DEMAND to be listened to. A proper marketing solution cannot be achieved with a single silver-bullet “ingredientâ€. Your website will not stand the test alone. The challenge comes in fine-tuning just the right recipe for your market, for your community.​

We’d love to hear your ideas. Your recipes. What has your dealership done to push your website performance over the top?
 
You can buy a car anywhere. Customers are getting to know that the internet keeps dealers honest. Shoppers are interested in the relationship they'll enter into if they give you their biz. Every dealer on the planet thinks they're unique, FEW find a way to communicate it via their web site.

A short list of dealers that have figured out how to punch that "I'm different" message into their site.
Auction Direct Used Car Superstore - The Best Used Cars For Sale - Visit Us Today | New York Used Cars | Raleigh Used Cars | Jacksonville Used Cars
Suzuki of Wichita | Kansas | New cars and used cars | #1 US Dealership
Acton Toyota Littleton MA Serving Boston | Used Toyota For Sale Massachusetts
Used Cars Pennsylvania, Philadelphia, New Jersey - CARSENSE - Used BMW, Honda, Nissan, Ford & More
CAR LEASING CHEAP LEASE CARS SALES CAR LEASING CHEAP CONTRACT HIRE DEALS <--Wah! Chinese Capitalist Swine! ;-)
Welcome to cityauto.com
Mercedes-Benz of Austin Texas New Used Car Dealer Certified Pre-Owned
Virginia Beach Car Dealers | Auto Dealers in Virginia Beach, Norfolk Virginia
Park Place Texas Auto Dealers in Dallas | Mercedes-Benz, Lexus, Porsche & Luxury Vehicles in Dallas, Ft. Worth, Bedford, Grapevine & Plano

Video really helps in this dept.
Wyler Group, Tim Jennings, Alex Jefferson of Proctor Honda, The Acton Guys (again)
 
You can buy a car anywhere. Customers are getting to know that the internet keeps dealers honest. Shoppers are interested in the relationship they'll enter into if they give you their biz. Every dealer on the planet thinks they're unique, FEW find a way to communicate it via their web site.

A short list of dealers that have figured out how to punch that "I'm different" message into their site.
Auction Direct Used Car Superstore - The Best Used Cars For Sale - Visit Us Today | New York Used Cars | Raleigh Used Cars | Jacksonville Used Cars
Suzuki of Wichita | Kansas | New cars and used cars | #1 US Dealership
Acton Toyota Littleton MA Serving Boston | Used Toyota For Sale Massachusetts
Used Cars Pennsylvania, Philadelphia, New Jersey - CARSENSE - Used BMW, Honda, Nissan, Ford & More
CAR LEASING CHEAP LEASE CARS SALES CAR LEASING CHEAP CONTRACT HIRE DEALS <--Wah! Chinese Capitalist Swine! ;-)
Welcome to cityauto.com
Mercedes-Benz of Austin Texas New Used Car Dealer Certified Pre-Owned
Virginia Beach Car Dealers | Auto Dealers in Virginia Beach, Norfolk Virginia
Park Place Texas Auto Dealers in Dallas | Mercedes-Benz, Lexus, Porsche & Luxury Vehicles in Dallas, Ft. Worth, Bedford, Grapevine & Plano

Video really helps in this dept.
Wyler Group, Tim Jennings, Alex Jefferson of Proctor Honda, The Acton Guys (again)


Thanks for the recognition as always Uncle Joe......the hard part is creating the REAL LIFE customer experience that we pride ourselves on providing. The matching online part is work of course, but find a website provider (like we did with Dealer.com) that allow the ease of building pages, adding video or graphics and then motivate the creative people we all have on staff to want to be part of creating a great digital footprint (to many ISM's think they're all alone in this mission, are afraid to share credit or knowledge or just don't have the leadership skills to motivate everyone who's support they need).

It only takes a consistent commitment from a great group of people and support from the GM to make it all happen!;)
 
The original post said, "I would again argue that it is a great site, combined with a well orchestrated Social Media program, proper customer communication, just the right amount of advertising, and a commitment to community involvement that will ultimately reward a dealership with the website results they truly desire."

I'd argue that a basic ingredient for used car success was left out: The right cars at the right price, merchandised with lots of great photos and compelling comments. Almost all of the metrics in the graphic are affected by this "basic ingredient" including Pageviews. Pages/Visit, Time on Site, etc.

Craig and Joe understand this and do great jobs with their sites in this area. Every dealer on Joe's list does this as well (except the wonderful Ling - Funny engaging comments, yes. Lots of great vehicle photos, not so much). Attracting people to bad content, even when it's wrapped in a pretty website, doesn't make for success.

This may seem obvious, and it is to Joe Pistell and Craig Belowski, but I've seen too many dealers pay a website company to design a great site, or pay Autotrader.com good money for Premium Listings, only to be disappointed with the results. It wasn't the site's fault or AutoTrader.com's fault. If any site is loaded with overpriced cars that few consumers are looking to buy, it will fail.
 
Ed - you make a good point. You do have to have your cars displayed appropriately and easy to find (that is part of a "Great Website", no doubt about it). However, price is all depending on your dealer. Obviously you cannot be way over priced - but - what if you could create such a great reputation that you were not selling on having the Lowest price?

And Joe, this idea applies to your comment too -- one goal might be to not only sell more cars, but to sell each one at a higher margin. If your customers love you, they won't have an issue with you having a higher price than a nearby competitor they don't like, because they know & trust you. Of course there are some people who will always want the lowest price no matter what, but in a big purchase like this they want to feel comfortable with who they are buying from and are willing in most cases to pay a little bit more for that experience.

I actually know of a dealer that is very successful and they don't sell at the best price at all, they don't even advertise their prices. They have a reputation, they are liked by their community and their customers and for that they are rewarded.
 
I never intended my original response to be seen as a commercial for my company. My only intention was to join in and help engender a general conversation on how richness of content has a significant role in any sites success. I apologize in advance for this post, as I know it veers even closer to hucksterism.

Your response really hits home, on many points, with what my company tries to help dealers accomplish. It also reinforces much of what I learned working with dealers and dealer groups during ten years with AutoTrader.com.


I agree with your comment “one goal might be to not only sell more cars, but to sell each one at a higher margin” completely. However it’s very hard to this without knowing the exact Supply/Demand ratio for each specific vehicle. When a dealer is stocking short-supply / high demand cars this becomes easy and even natural. As an example, let’s look at the recent conversations revolving around the upcoming Chevy Volt. Even before its release, some dealers are asking huge premiums for this car. Simply because it’s in short-supply and high-demand, it’s commanding massive premiums and will still fly off the shelves.


The sad fact is that pre-owned cars have become, in many ways, a commodity just like new cars. Is it possible for a dealer to build such a strong reputation that they can command higher prices and margins than a competitor with a crappy reputation? I think the answer is yes, of course it is! Is it possible to for a dealer to build such a dominating reputation that they can command higher prices and margins against every single other dealer in their market? I think this is extraordinarily rare.


You said “…in a big purchase like this they want to feel comfortable with who they are buying from and are willing in most cases to pay a little bit more for that experience.” I agree, but now the question becomes “how much is a little more?” I’ve seen dealers price cars 10% higher than their competition. On a $20,000 purchase this is $2,000. This is not on a specific, beautifully clean, one-owner short-supply / high-demand car – this is across the board on a 100 vehicle inventory. Top this off with a high Average Market Days Supply (there’s an over-supply of the same car on every dealers lot with limited interest on that vehicle from consumers) and all the reputation in the world isn’t going to create a quick turn and a high gross. I believe a dealer would need an impeccable reputation to even demand and get a 1 or 2 point premium on an inventory with a middling Supply / Demand ratio. If their inventory is wrong, I think it would be very had to achieve that.


As for the dealership that doesn’t list any prices, I think they are part of a dying breed. I wish them well, but really think the transparency of the internet has changed the pre-owned market to the point that very few retail customers will even shop a dealer online that doesn’t post pricing. I have a feeling that more and more of this dealer’s customers are going to be lost to the transparent competitive market that is the internet.


When you discuss “not selling on having the Lowest price” I’m also in firm agreement with you. But I do think a dealer really needs to know the Market Days Supply on each specific vehicle down to trim and options. There are some cars with low Market Days Supply where you can be in the middle of the pack on price and still see a quick turn. Other cars, the over-supplied, low-demand, cars are the ones where you need to start pretty aggressive on price and be ready to drop even more. Dealers with the right data have every advantage in the world today.


Finally Katie, I know your company sells an integrated, comprehensive approach to online marketing combining web presence, SEO-SEM, Social Media, email and more. I’m not trying to take away from that or hijack your thread. Dale Pollak’s latest book, Velocity 2.0 Paint, Pixels & Profitability is about his revelation that the right car, bought right and priced right is not enough for success. He conducted an in-depth analysis on 100 dealers to find out what they were doing right on the internet. Marketing vehicles correctly is crucial, as is marketing your dealership, thru all the avenues that you espouse.


Dale also believes, as I do, that without setting the right conditions for success – again the right car, bought right and priced right – no amount of money or marketing savvy will be able to help you dig out of that hole. The best combination for success combines the kind services that your company offers with the kind of services and market data that my company offers. At that point a dealer would know exactly where his vehicles are positioned as far as price and demand. He would also being doing a great job reaching his customers with an integrated comprehensive marketing program. Success is hard to achieve without doing both.
 
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Ed, here's my take.

There are many doors to a dealership. I think you'd agree that working the AutoTrader/Cars audience with intelligent pricing (via vAuto) is but one door.

The end game is to open as many doors to your home web site as possible where competitive analysis is not easy and you can really work "your story". Other doorways to a store are:

  • Social Media Marketing (FB, Blogging, Videos, etc)
  • Google/Yahoo Pay Per Click
  • TV/Radio Broadcast
  • NewsPrint (Newspaper, catalogues, flyers, etc)
  • Direct Mail
  • Referral Marketing
  • Cold Calling (ooooo... way old school)
  • SEO
  • MicroSites
IMO, people are everywhere and everyone drives and everyone HAS to replace their car sometime. Not everyone is an "efficient shopper". I'd LOVE to see an indepth study on the car shopper of 2010. We base a bunch of decisions base on assumptions because of the lack of data. Someone should commission this.
 
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Ed, here's my take.

There are many doors to a dealership. I think you'd agree that working the AutoTrader/Cars audience with intelligent pricing (via vAuto) is but one door.

The end game is to open as many doors to your home web site as possible where competitive analysis is not easy and you can really work "your story". Other doorways to a store....

:iagree:

Joe,
  1. Of course I agree with you (I almost always do!)
  2. Wow - was I in writing mood yesterday or what? (it was overcast and a little cold - not a good day to be outside)
  3. When we can get our customer outside of the competitive ATC/Cars.com world (and we should try to get as many possible that way), many, if not almost all, will circle back there to "keep us honest". They can do it now with a smart phone on the showroom floor.
Katie's original point was that there is no single, key, ingredient to success. It takes doing a lot of things right all at the same time. I agree with her (and of course you), I just added that, of the lots of things that need to be done right, intelligent pricing and merchandising your vehicles well, definitely need to be the list. And Joe, I'm pretty sure you'll agree with that also. :)
 
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