Mike DeCecco’s Dealer.com Blog

We can learn from Non-Automotive Merchandising

December 15th, 2008 by Mike Dececco

Many of us interact with Dealerships on a daily basis and try to convey how best we can help them save money and acquire new business during these difficult times… however, many of us get so technical with dealers that it’s very easy fly over the heads of our audience with techno-babble and statistic after statistic.
I’ve personally found that when attempting to convey complex theories to those that aren’t exposed to them all the time, it helps to remove ourselves from the dealership world and talk about how folks interact with the internet on a daily basis outside of the microcosms they are in every day.
For example, I was working with a dealership the other day and felt that I wasn’t getting through when talking about Inventory Merchandising. It was a dealership that felt convinced that giving little to no information would prompt website visitors to “call”. We all know that those days are long gone, but the mindset still persists out there…
The point is that there’s really no difference between let’s say a digital camera and a vehicle. Sure, the digital camera is much less expensive, but a consumer will find it on the Internet in generally the same way they will a vehicle and the merchandising that revolves around it is essentially the same.
I asked the dealer about what he had recently researched online for purchase and the answer I got was real estate. I thought to myself…. Perfect!
Since I knew he was researching real estate I asked him did he ever call on a property without a list price? The answer I got was yes, he had done that once. Go figure… I then asked him, has he ever inquired about a property without seeing any pictures? No. Has he ever called on a property without getting any information on the condition of the property? No.
I then asked… what’s the difference between that property and a car? If you wouldn’t act on a property with limited information surrounding it, why would someone inquire about your vehicles? Shouldn’t your customers see a fair price online? Shouldn’t they see multiple photos of the car they are interested in? Shouldn’t they be aware of other similar cars that they might want to check out in your inventory? Yes… of course they should.
Just a quick thought that when it comes to positioning our products in our space as vendors I believe we can learn a lot from those outside of automotive. Sometimes taking cues from others can be a great way to expand our ultimate goal, which should always be helping dealers understand why we build our products the way we do and how they can sell more cars and maximize their fixed operations as well when they are used properly.
Thanks!

Choosing your PPC vendor… Will you have Control?

December 9th, 2008 by Mike Dececco

Digital marketing provides your dealership a complete competitive advantage when employed with effective Search Engine Marketing (SEM) strategies. While directing your dealership’s online marketing strategies toward the most effective and profitable website solution, there are a few key questions concerning SEM that you should ask your vendor to ensure digital marketing success.

Google possesses 70% of the market share, which means your SEM strategies must utilize the great advantage Google can offer your SEM, as well as your dealership. More importantly, you need to ask your vendor questions about their pay-per-click programs such as:

* Do I have to commit to a long-term contract?
* How much do I have to spend per month?
* Do I have control over that spend?
* Can I divide my spend throughout different departments such as new and used car sales, service, parts, finance, specials etc.?
* What kind of flexibility do I have to move my spend up and down?

The answer is that you should have control over your spend. Spend is in real time, so your dealership should be able to have total control, whether that’s hour by hour, or minute by minute. You should also be able to track your results, as in phone calls and email submissions, so you can see the leads generated for every dollar you spend. Your dealership should be aware of the profitability and effectiveness of your SEM strategies.

The other feature that is beneficial to your SEM strategy is the ability to have ads written automatically, based on inventory. Every vehicle that comes into stock should produce an automatic ad that goes on Google. This feature is vital, because it connects you, the seller, to potential buyers. Your conversion rate increases, as does your closing rate, because you have the exact vehicle in stock for which the customer is looking, all in real time.

If there’s one thing to remember about SEM, it’s that your dealership should not have to compromise control over spend in order to receive the benefits and features, and in turn leads and sales, that SEM can bring to your online marketing strategies.

Best of luck!

The Difference Between Customer Service and Lip Service

December 5th, 2008 by Mike Dececco

Hi guys:

With all the talk in the space today about what solid customer service really means I thought I would post some thoughts…

At the end of the day, regardless of what industry we’re in, we’re all essentially in the customer service business. So the bottom line is that if we’re not taking care of our customers in the most attentive way possible, a competitor will be more than happy to do it. The Internet marketing game is no different. As you consider entering into a relationship with a provider, you’re going to hear a lot of promises, particularly when it comes to customer service. And unless you’re careful, you’re going to learn a really hard lesson about the difference between full service and lip service.

Profit from experience.
In any business, particularly one as dynamic as Internet marketing, it pays to work with someone who understands what’s happening today and who knows enough to make an educated guess as to what will happen tomorrow. So it stands to reason that the best customer service reps are the ones who understand your business as well, if not better, than you do. Even those who don’t have firsthand knowledge, if they at least know where to go to gain that knowledge they can be of tremendous value to your dealership.

Hold the phone.
When you have a problem, or even a question, who would you rather have answering the phone when you call — someone at an overseas call center or an account manager who works with you on a day-to-day basis and thoroughly understands every facet of your business? Customer service is only effective if the person on the other end of the phone has the knowledge to service the customer. It sounds obvious, but if it’s so obvious why do so many marketing providers outsource their call centers? The answer is that it can be a lot more profitable for the provider. But when you absolutely need help and want to hear a familiar voice on the other end of the line, it doesn’t work for you.

Look for the proactive ingredient.
It’s great to have a customer service rep who specializes in solving problems. But wouldn’t it be better to work with someone with the skills to put out fires before they started burning out of control? That’s exactly what a proactive account rep can do for you. It’s not about predicting the future, it’s about being prepared for it. And no one’s better prepared than someone who understands industry trends and is always watching out for how they may impact you. It’s always a lot easier, and a lot cheaper, to head off problems rather than solve them.

Playing the numbers game.
Think of a pie. If you have six friends over for dinner and want to cut a slice for each, everyone’s going to get a pretty good sized piece. Now imagine that same sized pie with 20 dinner guests. Those slices aren’t going to be nearly as generous. The same rules apply to your account rep’s time. If he or she is servicing 10 accounts, it stands to reason that you’re going to get about 10% of their attention. Now double the number of their accounts, and your share of their attention is reduced to 5%. With that math in mind, it’s at least worth asking your account rep how many accounts he or she will be servicing before you sign anything.

It all comes down to Google.
In an industry dominated by search engines, your account reps have to know the ins and outs of that business. And these days, that means they’d better be Google trained and Google certified. You might hear vague promises about how that doesn’t matter so much or how there are ways around it, but there’s one truth in the search engine business: Google rules. And until that changes, and there’s no reason to believe it will any time in the near future, having the training and certification necessary to run your ad words program and to help you with search engine marketing and optimization is an absolute necessity.

Conversion is the only metric that matters.

July 21st, 2008 by Mike Dececco

When your dealership is in the market to purchase a new web solution, it’s difficult to wade through the sea of differing opinions and sales pitches you will receive. Some vendors offer custom solutions to bring a dealer’s vision to life, while others offer customized template solutions that incorporate proven, time-tested designs.
Which is better for you? Keep in mind there are a number of important factors you should keep in mind when choosing a new vendor. Design, customer service and search engine marketing and optimization capabilities are all critical components to a successful dealer/vendor relationship.
But ultimately, you must never forget the purpose of your web site, which is to convert visitors into leads. If your web site is drawing a large number of visitors every month but only a small percentage are submitting their information or calling you, then there’s a problem. When it comes to your web site, conversion is the only metric that really matters.
Keeping this in mind, it’s important to ask yourself and potential website vendors….where is the proof? If a vendor is promising dramatic performance and results, ask them if they have data or examples from other customers to back up their statements. If the salesperson shies away or changes the subject, it could be a red flag.
Also, it’s important not to assume what will attract customers and increase conversion rates. Websites have been around long enough now for established website vendors to know what works and what doesn’t. Some dealers have a vision they want to bring to life, and many vendors are only too happy to accommodate them. Some website providers insist that a fancy, custom web design will deliver the best results.
But you could have the coolest looking website on the planet, and if that website doesn’t turn as many visitors as possible into selling opportunities for your dealership then what’s the point? It’s critical that decision-making personnel at the dealership are not fooled by flashy designs and pizzazz when choosing a vendor.
A more proven option might be a customized template. Some dealers may think a template is a cookie-cutter solution, but in reality, a customizable template offers a unique, professional image that reinforces the dealer’s brand, all within a time-tested design framework. The point here is not to try and reinvent the wheel, but to simply grease the wheel that you already know works well to make it go faster.
Car dealerships are retail businesses just like any other. If you look at the most successful retail Internet vendors out there—Amazon.com or eBay for instance—you will notice their websites are not designed to “wow” visitors with a nifty appearance. These companies have spent years perfecting websites that produce sales, and dealers could learn a lot from them.
The defining measure of success for any website is conversion. So when choosing a website provider, be sure to get a solid average conversion rate from them. This conversion rate should be compared to every other vendor in the space and should ultimately be the most influential factor in your decision to choose a vendor.