I am the first one to offer that I am not always fond of relating specific automotive examples to other industries. Understanding that while it is essential to think about things from various perspectives; certain processes and elements are automotive specific. One thing, though, that we can learn from other industries is the explanation of the “process.” Namely, what is involved when it comes to purchasing a vehicle. Think about it, we sell cars every day, but people do not purchase them daily. So while we understand - in our sleep - what it takes to purchase a car, not all of our customers do. That said, we already know how stressful buying a car can be, so if there is anything we can do to make it easier, then we should do it! Of course, making sure it is mutually beneficial for the dealership. 

Here are some of the top reasons to explain the buying process online! 

Customers Often Do Not Know What they Need to Bring When it Comes Time to Purchasing A Car: 

We have all been there; that is the customer agrees to purchase a vehicle from us, but they do not have their pay stubs, credit application, key fobs, bank statements (if needed), pay off, insurance card or anything else needed to make the purchase. In which case, the customer has to spend that much more time at the dealership to make the deal happen. Or worse, schedule a time to come back into the dealership, which can in some cases lessen the chances of their returning. 

To avoid this issue, dealers could easily create a quick video (no more than a few minutes) to outline “things to bring on your visit,” which would offer the above items. In doing so, the customer not only understands the everyday things to bring, but it can also save them time at the dealership. There is nothing worse than being held up in F&I because the customer does not have their insurance card, or is otherwise missing important documents. Not to mention, if that customer is held up it only means that the next customer to hit the box is going to be delayed. And it is no secret that the customers ‘experience’ often lessens when they are made to wait too long before signing. This is not by any means to offer that you explain everything in the video, either. Instead, it is a means of offering the customer ways to save time making for a better, smoother experience at the dealership. 

If the Customer Has A General Idea of What to Expect they Are Often More at Ease: 

This reminds me of what it is like to buy a house; there is a lot of information that is required, but a lot of it is similar; proof of income, insurance (home), bank statements, credit application, etc. So while this might seem to be common sense, we have to remember - as I mentioned above - the customer is not in the market every day, and might not otherwise really know what to bring. Given that we know how stressful it can be just buying a car imagine what it might feel like to gather up a bunch of documents without knowing what you really need? And let's be honest, how many customers come in with everything - I mean everything, including having already added the VIN to their insurance - when coming in to meet with you? Very Few! And from my experience, this happens more often for pre-owned vehicles where the customer is purchasing out of state. That said if we took the time to explain which documents are most commonly required to purchase a car the customer will be at ease. Better yet, if the customer is not anxious and or worrying about s/he needs to purchase a car, they can spend that time and energy focusing on what is most important; finding the car, they are about to purchase! 

If the Customer is Willing to Bring All of their Information for their Appointment Chances Are they Are Ready to Purchase. Most Customers Do Not Visit the Dealership for the Sake It. 

When I first started in the industry, I was always told “tell the customer as little as possible, and just get them into the store,” which looking back - that only caused for multiple issues. Everything from the customer having to make multiple visits, not purchasing, or having expectations on being able to purchase a car that was not within their budget. Of course, simply telling a customer what documents to bring in is not going to change that all, either. What it can do, however, is offer a glimpse into where they are in regards to making the decision. In that, a customer who is willing to bring in the common documents is usually ready to go. In turn, allowing you to focus on ensuring that you are finding them the right vehicle - to which you can - in many cases - glide through the sales process. 

Bottom Line: there is nothing more frustrating than not knowing what you need to bring or what is otherwise expected when purchasing a vehicle. And while there are some blog posts here and there that offer “what to bring” from other customers perspectives, that is not always what is also needed for each customer that happens to stumble across the blog when searching "what is needed to purchase a vehicle." Given that some customers, as we know, might require various other documents. So if your dealer were to step up and offer the customer things that can offer them a better experience, it could also have a positive impact. An experience that can influence their decision to purchase from you. 

Do you offer a video to explain to the customer how the car buying process works? If so, have you seen any positive impact? If not, what is holding you back from creating a video for your website? 
 

Year after year we attend conferences coming back with great ideas. Ideas - that if they were implemented - could have a significant impact on your dealerships bottom line. However, more often than not, those new innovative ideas do not come to fruition. Whether that is the GM or Owner not offering their staff the ideas; or not providing your team the ability to execute the ideas. Either way, for the new ideas to come to fruition some things have to be considered: 

Bring the Business Development Manager or Your General Sales Manager 

For those who have BDC’s - you most likely have a BDC Manager; someone that is usually responsible for the websites, marketing, CRM and vendor relationships. I know first hand how valuable these conferences are. However, it took sometime before the dealer was willing to invest the time and money in allowing me to attend the conferences or workshops. Where previously, the owner would come back offering new ideas and or suggestions. The problem, though, was that I did not otherwise have access to these vendors in a meaningful or significant way. Not to mention, by the time I was given the ideas and suggestions trying to round up the decision makers was not an easy task, and no one wanted to champion the efforts. Noting that for there to be a significant shift to occur in the way we approach digital marketing or internal processes,  both your leaders and influencers have to be onboard.

That said, the ideas where there but never executed. Until finally, I was able to attend the conferences interacting directly with the vendors and owner. It was like an entirely new world was unleashed; the idea that I was not the only one struggling with the same issues. As a result of attending with the owner, we were able to create action plans - having already committed to making the decision when we returned. Having that foundation - groundwork - built was invaluable. Not to mention, it is much easier to make decisions and changes when you are out of the day to day operations; allowing you to focus on a smart growth plan. 

Do Not Tackle Everything at Once. Pick One thing to Make the Change On. 

It is easy to sit in a room and make several decisions, but we have to look beyond the change, itself understanding that it will be a cultural change, it affects the way KPI’s are measured, and most importantly, it takes a ‘champion’ to see that these changes are executed. That said, instead of tackling everything at once choose one thing that you know you can improve on. Looking back, one of the things we knew that needed to be tackled was online reviews. We were not consistent in the reviews we got; there could be one month we got five or six, and other months that we did not get any at all. Knowing how much your online reputation plays in the prospective customer making their decisions we knew that had to change. 

At one of the conferences we attended, we were able not just to conceptualize the change, but more importantly - we actualized the change. The following Monday we got back, we got with the managers first; explaining the new process on online reviews. To which they got with their staff. Three months later, we had an additional 125 positive reviews, and when I left, we had over 1,600 positive reviews and won Dealer of the year for the last five years running. This is not to say it will work for everyone. What it is saying, however, is take the time to invest in your dealers champion - whether that is your BDC Manager or one of your sales managers. In doing so, not only will it boost their morale, but it can and will have a positive impact on your dealership. Looking back to my last career, it was the conferences that pushed me to think differently and actualize results. 

How do you approach change? Do you invest in your dealers champion? 
 

Every day your vehicle goes without a photo online, you could be losing revenue. Getting the photos online, however, is easier said than done. There are several inventory management tools on the market; though, many dealers still do it the old way. That is taking the photos on a camera (or cell phone), loading them to the computer, to then loading them onto the unit. This is a very lengthy and time-consuming process! To avoid the delay, here are some of the top things to consider when loading photos online!

Stop Wasting Time With Manually Loading Photos Online. Time is Money. There is An App For That.

Long gone are the days of taking the photos on a camera to then have to load them onto the computer; to then finally loading it up to the vehicle. One of the most significant disadvantages of doing it this way is that it can be easy to mix up the photos. Wherein, you are not saving the photo on the camera as the stock number. This means that when you are going to load them onto the website, you have to click through each vehicle to then figure out which stock number they belong too. This can easily take five extra minutes. If you have twelve or so vehicles to photo that could be as much as an hour wasted! Instead, many of today's inventory management tools have a photo app. One that enables you to load the stock list. In which case, whoever is taking the photos can click into the app, select the stock number, and load the photos. This can save a lot of time; time that can be used to do other tasks. Such as moving vehicles, or better yet merchandising the inventory!

Have a Process. Consistency is Key for Success.

Have you ever browsed a dealers site and the vehicles all have different sorts of photos or various orders? Best practice would be to have a set process; one where your inventory manager is taking consistent photos. That is ensuring that they photo each angle of the vehicle; and for vehicles with specific features, make sure to capture those add ons, such as Navigation, Back-Up Camera, Sunroof, Spoiler, Rims, etc. Anything that makes the unit stand out. In doing so, it can make it much easier for the customer to see if the vehicle has the features they are hoping for!

Bottom Line: anything your dealer can do to save time, do it! That hour or so a day is five hours a week, which is just three hours shy of an entire day lost to wasted time - time that can be used to merchandise inventory, or moving vehicles!

How do you handle your inventory photos? Do you still have your inventory manager taking photos and loading them to a computer?

As we know, emails are still relevant in the way we approach corresponding with our customers. So as we continue to evolve as an industry so do our customers with regards to how they approach the buying process. One of the key elements that still needs much revision, however, is your stores auto emails. That is making sure that you are aware of all of the emails that are being sent to the customer; everything from lead submission emails, survey reminders, OEM auto emails, service reminders, etc. 

Beyond knowing which emails are in circulation, we have to review the results from each auto email - asking ourselves, does the email interrupt the customer's experience? For example, there is nothing more frustrating for a customer to receive an automated email from the sales manager asking “if they have been assisted, and when are they buying” if the sales manager has already spoken to the customer and or the deal is already in the works. Not all will agree with this sentiment; however, there is no need to send additional emails if the customer is already being assisted. This issue is not always an easy fix; however as many CRM’s are very limited to how the work-flow is managed. 

Once you have revised the list of emails that are in circulation, it is best to review the content in the email — taking the time to review the success of each email to then edit/revise the content to increase results. 

Here is the last article on the topic! 

When is the last time you reviewed and or revised your automated emails? 

There several ways to communicate with your customer with everything from texting, calling, emailing, web chat, and FaceBook messenger. All of which are great tools and can be highly effective on the dealer level. With that said, however, the way we approach these communication tools ought to vary. In that, the way we respond via text message or Facebook messenger is different than of website chat. Here are the top things to consider when handling correspondence on the various platform. 

While We Pick Up Our Phones More than Two Hundred Times A Day - We Do Not Always Respond to A text Immediately. Stop texting or Facebook Messaging “Are You Still With Me?” 

If you are like me, we cannot always immediately respond to a text message or a Facebook Message immediately. It might be a few minutes, which is the great thing about texting and using Facebook messaging, no? It gives us the ability to respond to our messages on our own time. So when you are texting or Facebook messaging a customer, the last thing we want to do is say “Are You Still With Me.” Doing so could cause some frustration on the customer's end as they would likely have called the store or chatted on the dealership website if they wanted to have an immediate dialogue. 

Top Things to Consider With Website Chat. How to Keep the Customer Engaged. 

With there being key differences in webchat versus other forms of messaging it is important to note that if the customer is chatting on your dealership website than we need to cognizant that the customer most likely wants their questions answered in real time. That said, there is nothing more frustrating than a customer who is asking a question to then have their question ignored as you are messaging back. Here is a prime example of this key issue. 

Dealer: Thanks for choosing (dealer), how can I assist you? 

(make sure to check and see if the customer has already asked a question before sending this response. It is frustrating to have to repeat the same question, especially if you are on a mobile device trying to chat, which can be quite the task).

Customer: What is the price of the new (model)?

Dealer: We have great prices. Are you available to come in now for a test drive? 

Customer: I need to know the sale price of the new (model) before I come into the dealership

Dealer: The best way to get secure the best deal is to come in and work with my manager, they will give you a great deal. 

You might not think this is common, but it is quite common. So as a customer, do you think they are going to respond well to this chat? Probably not. The pricing is online, albeit - it is not always straight forward as many dealers include rebates and incentives that are otherwise not available to anyone. That said, if the customer is asking for the sale price, give it to them! At which point, you should be asking - “is this the only make and model you were considering? If not, I have some other similar options that could potentially save you more money” or “were you hoping just to purchase this vehicle, or did you have a trade?” Asking these questions can spark dialogue, which offers a more meaningful conversation that can turn into an appointment. 

Top Things to Avoid When Messaging the Customer on FaceBook Messanger. Facebook Messanger Offers a Richer Media Experience than of SMS Messaging. How to Capture the Customers Interest. 

Have you ever chatted with someone, and they ask “what is your name?” to which you say, “ugh, it is on the chat?” - this happens far more than you would think. The other thing to avoid is immediately asking “can I get your email address?” if you are messaging the customer on Facebook, do you think you are going to have better luck with email? The answer is most likely, no. The customer using their Facebook messenger - who picks their phone up hundreds of times (if not thousands of times a day) - is far more likely to look at their Facebook messages than to check their email. It is also no secret that Facebook messaging offers a rich multimedia experience. One where the user can effortlessly send photos, videos, etc. to their friends along with those memes and GIF’s we all love to send. So before we hit that ‘send’ button take a moment to think about how the user interacts with the platform, and avoid asking questions that are not relevant to the situation. 

Bottom Line: before you hit the ‘send’ button on the Facebook messaging app or text message, take a minute and think about how you respond to messages. With the notion that (as mentioned above) we do not always immediately respond to the message in real time. This is not to say, of course, that we should not respond at all, either. In fact, if some time has passed, it is best to give the customer a call unless they have stated otherwise. As we know, calling the customer is one of the most effective means of building a rapport - one that assists you in selling the dealership. 

Do You Text and Facebook Message the Same Way You Chat? Have You Had Great Success With Facebook Messaging? 
 

Same Specials. New Month. Seems like we live in a repetitious cycle when it comes to approaching putting specials online. Where we sometimes would rather stick with what we are comfortable doing than taking a chance and doing something new. I previously wrote about upselling online taking the time to put some video content on your specials page. The idea that while you do not have to offer a video that shows the customer how to repair their vehicle (as that defeats the entire purpose, no?), but you can put together a 30-45 second video that explains the importance of the repair; such as bad brakes, balded tires, etc. Providing the customer a visual reminder as to why they should change their tires, etc. It is no secret that people tend to engage more with visual graphics than text. 

Have you amped up your specials page? If so, what changes if any have you seen in your appointments or upselling? 

Are Your Specials Hurting Your Goals? 

Have you ever gone online to search one of your cars for a customer? One they saw one a third party site and thought to yourself just how confusing we can make the process? The idea that we have more than five to six ways to obtain information. Everything from get e-price, get quote, call now, text now, chat now, confirm availability, to schedule a test drive? I have never seen so many options to obtain information on one, single, item. Think about it, on most of the major retail sites - albeit, I am cognizant that is not a vehicle - they do not have several means of asking your question. Instead, they have a thoughtfully laid out page that enables the customer to add it to the cart, call or chat with their customer service. As much as we try to be ahead of the times when it comes to digital retailing, there is still some room for improvement on clarity for the customer.  

Here are two things to consider to gain clarity on your website. 

Vehicle Display Page. Also Known as Your Conversion. 

Instead of trying to convert the customer from several call to actions take the time to review which ones are working. For example, if you were to look at and review your lead sources, you can outline where the traffic is coming from. If you are not getting any traffic from specific call to actions than perhaps it is time to declutter your vehicle display page. One of the best ways, however, to review the reporting is to look at roughly one to two years worth of conversion. If the call to action has not converted any traffic than it is time to get rid of it. 

But not so fast, it is not uncommon for a dealer to still leave the call to action on their site for the fear that a customer might convert. Yet, by simply offering fewer choices already gives the customer more clarity. That is a more precise process on what the next steps are. But if the customer has to choose from more than five options to get an answer, it can be very confusing. Especially if when they do convert on the website their questions are not answered based on the call to action they chose. How many times has the customer gone onto your dealer website and chosen “get quote now,” and when the dealership calls them they do not give them a quote. Instead, they tell them what? “Well, to get the best quote you have to come into the dealership.” While there is some merit to that - i.e., if it is a new car we need their zip code, etc. - the bottom line is the fact that the customer does not always believe that the dealer is honest with them. It goes back to the point of when a customer asks a question - a question that you offered them to ask mind you - then you need to answer it! 

So What is the Best Method of Conversion? 

This is not to offer that there are only one or two methods that are best to convert a customer off your website. However, what this does offer is that it is best to review where your customers are coming from. In doing so, it not only creates clarity for the customer but it also offers an easier buying process online. That said, if chat is a hot call to action for your dealership, keep it! Just take the time to make sure that the chat option is integrated correctly. There is nothing more frustrating than the chat feature covering up the vehicle display page or worse, popping up every few minutes. Lastly, remember - if you are offering the customer the opportunity to ask a question - with the CTA - then make sure you are answering their questions. 

Bottom Line: The easier is it is to get the information they are looking for the better your customer's experience will be at the dealership. Think about it - as mentioned above - it can be overwhelming to have so many options to ask a question. What is worse, though, is that more often than not when a customer does choose one of the many call to actions their questions are not answered. Whether that is the lead not being sourced correctly in the CRM, or the sales consultant (or BDC for those that have one) does not take the time to read the lead. All of which can create frustration on the customer's end. So instead of cluttering your vehicle display page take a minute and review the data. Once you have reviewed, the data have a meeting with your vendors to clean up your site to gain a better sense of clarity! 

How do you handle clarity when it comes to call to actions? Do you leave a call to action on your vehicle display page if it does not get any traffic? If so, why? 

While we might understand the value in why buy messaging, there are often small disconnects between the why buy message and how it is executed on the dealer level. In that, many dealers have a why buy message, yet their staff is either not aware of and or does not know it off the top of their head. This can not only create confusion on the dealer level but can also cause for the customer to become disenchanted.

More importantly, though, what is a why buy message? Has it changed? Both are good questions. A why buy message is not just a literal message we recite to our customer or have presented on our websites and external marketing. The why buy message is an integral part of your dealers overall branding. Everything from the way your dealer approaches the sales process to how you interact with the customer. So instead of focusing on a one point message, here are some statements and suggestions to better align your why buy message with your customer base.

What Does It Mean to Be A Customer at Your Dealership? Stop Looking Past One of Your Most Valuable Why Buy Messaging Assets - Dealer Reviews!

There are a lot of slogans dealers use to state why a customer should buy from their dealership, no? But we have to ask ourselves, is one statement enough to convince a customer to purchase a vehicle with us? Knowing that a vehicle purchase is most commonly the second most expensive item they purchase? That said, the message has to be more than a catchy slogan, or a paragraph that touts your accomplishments. One of the ways to present your dealer in a meaningful, relevant way is to use your reviews!

A customer review is invaluable to your dealers why buy messaging and branding; however, we have to keep in mind if the review is older than 90 days than the customer might not find as much value in it. Versus a review that was done a week or a few days ago. Yet so many dealers do not even ask their customers for a review, which is only costing them business! To avoid this issue, and use your customers voices to your advantage the sales consultants needs to ask for the review. Asking for the review should be a part of the sales process. That is asking the customer - at the time of delivery - to complete a review. It is also a way to make sure the customer had a positive experience. For example, if the customer were to say no - then you know you have an issue to address, which can also have a positive impact on your dealers CSI score!

Use Your Dealer Reviews in Your Email Marketing and Showroom Floor!

There is nothing wrong with promoting your customer's reviews. If you have a positive brand image, use it! Some of the best ways to take advantage of those hard-earned reviews are to use them in your email correspondence. This is especially true when you are responding to a third party lead. A lead where the customer has not yet necessarily chosen your dealership. So by sending them your positive reviews, it can help set you apart when it comes to your competition. This is not to say or offer that it will work every time. However, a dealer who has several positive reviews has a stronger shot at selling the customer their vehicle.

Another effective way to incorporate your why buy messaging into your dealer is to have pop (point of sale) marketing on the sales floor. Perhaps printing out on a tabletop tri-fold the last three to five reviews. This way the reviews are not obnoxiously standing out, but rest assure the customer will take notice. And if you have won customer service awards then make sure to have them displayed, proudly, in your showroom. This can often be a great ice breaker if your customer is starting to show some concern with their purchase. You can easily reassure them that they have made the right decision by working with you.

Bottom Line: why buy messaging is certainly not limited to the above. However, even if you only adopt one of the two ideas it can set you apart. And for those who are struggling to collect reviews from your customers you have to spend time working with the sales consultants. Both explaining and encouraging them to ask for the review. You can even - with many CRM’s - set up an email that goes out once the lead is marked sold. The email does not have to be too long, either - get to the point, and ask for the review! Once your sales consultants start to get two to three reviews, it will catch on.

What does your why buy messaging look like? Have you used reviews to encourage your customers to purchase with you?

We spend a lot of time reviewing ways to improve the customer's experience whether that is through surveys, studies, or reading endless reports. However, the one thing we tend not to discuss is the redesigning of the customer's experience. That is, instead of layering in small changes why not redesign the experience? One of the most significant changes in the automotive industry regarding the customer's experience in the last few years is the “digital retailing” sector. However, as we know - the digital evolution, itself, is not enough to change the customer's entire experience. In which case, there still seems to be a disconnect in what we are changing versus what the customer actually wants. That said, there is a conversation to be had - one that discusses some of the following topics.

Simply Saying You are Transparent Does Not Cut It. It is an Overused Ambiguous Word. 

It has been one of the biggest buzzwords in the auto industry for some time and in many cases still is, but what are we exactly being transparent about? There still might be some confusion as to what the customer wants transparency on. Such as the process of purchasing a vehicle, trade-in process, to the way in which a car is priced. So the question is, simply, are we ignoring the customer's actual request for transparency? Or do we on the dealer level have a different definition of transparency that we use to enhance their experience? 

In today's market, customers want answers. Think about it, with all of the apps and sites out there that give customers their credit history, rates, etc. they have more information than of what they are accustomed to, which does not mean that we can not make a profit. So the question is what are we actually transparent about? Some of the common statements are: we have low pricing, we do not play pricing games, we have OEM certified technicians, we care about our customers, to we have good reviews. All of which is great! There is nothing better than a good review; however, even when reading the reviews - those that are good - the customer still states that the dealer was “honest, straight forward, low pricing, but it still took three hours to purchase a vehicle” or “we are so happy we ended at (dealership). We visited multiple dealerships before making the purchase.” That says there is still a disconnect in how a dealer translates transparency. 

Instead of Talking About Transparency Let’s Focus on Being Consistent. Let’s Make the Buying Process Smoother. 

Perhaps five to six years ago dealers could get away with crazy pricing rules or other various fees. But things, as we know, have changed; especially for new vehicle sales. The OEM’s are much tighter when it comes to what a dealer can price their vehicles at as well as how the pricing structure works. That said, it is time to move past the word transparency, and look at changing the customer's experience online. To do so, here are two key elements to consider: 

The Process 

Many of us forget the nuances of purchasing a car because we live and breath the dealer world. So much so, that we spend more time defining transparency than actually taking the time to approach one of the most crucial aspects of purchasing a car; the process. I have yet to see a dealer create a video that explains the buying process. Wherein, it would be a short one minute to two-minute video that highlights how to buy a car. This is especially important for the younger generations who have not yet purchased their first vehicle. I can tell you first hand how many times I have dealt with customers who had not yet bought a car. They are often excited, but nervous. If we took the time - in the beginning, while they are doing their research -  and put them at ease by explaining the process, it could pay off for the dealership! Not to mention, it will save the customer several hours of their personal time as they do not have to go through the motions at the dealership, again, with another sales consultant who happens to have a very different sales process than of the one in which the customer initially spoke with. It is not a fun situation. 

Vehicle Display Page. Less is More. 

It is a known fact that the fewer options we have, the easier it is to make a selection. Yet more often than not dealers will have several call to actions on their vehicle display pages. So much so that it can become overwhelming for the customer to choose which one best meets their needs. And let us not forget that a customer is not very likely to select the “lead form fill,” and write a paragraph. Instead, they will perhaps choose “get quote,” which does not show in the CRM as “get quote,” where the sales consultant will call them and the customer has to repeat what they just asked; “get quote.” 

This breakpoint can cause for frustration on the customer's end; this example is “transparency” issues. Namely, the customer expects a response/answer that corresponds to what they are asking. It would be like me saying “is the car blue or grey?” and the answer was “what color are you looking for?” - It does not make sense, no? Avoiding this breakpoint in the customer's experience can have a profound impact on their perception. The better the customer's perception is of the dealer the better chance you have to close the customer. 

Bottom Line: instead of focusing on a word that gets lost in translation it is best to focus on actionable, attainable items that will enhance the customer's experience before they call into the dealership or make their visit. Remembering that just like us, we want answers to our questions. There is nothing more frustrating than asking a question and not getting a straight answer. Lastly, it never hurts to take a moment in the morning - before things get busy - and review your own website. Take a minute to put yourself in your customer's shoes as if it were your first time visiting the dealership, and ask yourself “does this make sense. Is the website missing anything? Does it have too much?” if you are asking yourself these questions it will help you make the necessary enhancements.

Once you have reviewed the website write down a list of things you would like to change at which point have one of your managers complete the same exercise. You can then compare your notes and make time to speak with your vendors. 

What does transparency mean to you? How do you enhance your customer's experience? 

December is the busiest time of the year for the auto industry, which can make or break your year. This is also the perfect time to review your annual marketing budget. However, more often than not a dealer does not review their budget until mid-January, or worse just once monthly. If you do not have a plan of action in place to review quarterly results, it can make it that much harder to make the right business decisions for the year ahead. Not to mention, with the talks of there being a recession it is all the more reason to have an effective, proactive marketing plan in place. Here are some of the top things to consider when reviewing your marketing budget.

Review A List of All of Your Vendors. Do Not Look At the Results Individually. Consistency is Key to Understanding What Your True ROI is For the Year.

It is easy to look at one or two reports and make a decision; however, that is not the best way to make a decision when it comes to using the vendor. The other familiar dealer approach is calling in the GSM or Sales Manager who does not use the product, asking their opinion, which also might not be the best approach to reviewing the vendor. Instead, one of the ways to combat this issue is to survey the dealership. That is asking the employees if they have even heard of the product or if they use it. If they are not using it, then there is a breakdown with your management that needs to be addressed.

As for reviewing the ROI, it is best to look at the dealer's annual performance, which can get tricky when it comes to lead attribution. By that I mean, a customer might have converted off of a few third party sites, but in the CRM it attributed the sale to the last source the customer converted from. That said, there are ways to review the various lead sources the customer converted from seeing what the most common duplicate sources are.

It is also nothing for a dealer to switch a contract with a vendor monthly, which can make it quite difficult to track a true ROI on the vendor. That is not to say that it is not a bad idea to cut a vendor. The reason for cutting the vendor, however, should be more than “we just do not think it is a good idea to continue to work with them because we are not getting enough leads” But this tends to be the case on the dealer level. Instead, take the time to review the reporting they offer. Take that reporting and match it against your CRM. In doing so, you will see the following: 

Duplicate Lead Sources: It is not uncommon for the vendor to say that you had “x” amount of phone calls and “x” amount of internet leads (as mentioned above). I will never forget the time where my last GM thought I was ‘deleting’ leads because they were not showing as ‘individual’ leads in the CRM. I had to explain that while both the phone call and Internet lead were in fact in the CRM - the customer had previously converted off of our website. That said, the lead that received credit was the latest lead, which happened to be an inbound phone call from a third party site.

The lead did still show the customer converting multiple times with the inbound phone call being the last lead reported. That said, when reviewing the vendors report they were correct in regards to the fact that one of their leads did sell. However, when looking at the CRM globally, you have to take considering how many sources contributed to the sale. Once you start to compile all of the sources (many CRM’s have a report for this) you can start to pull trend reports on how many ‘duplicate’ not just sold, but what source was duplicate, and did the customer already have an appointment booked on the original source. If that is the case, the last lead might not carry as much weight. But on the flipside, if the customer had not otherwise made an appointment or contacted the dealership then perhaps the lead is more valuable than it was first thought. That being said, you cannot simply look at vendor reports without comparing them to the CRM.
 

Empower Your Marketing & BDC Manager. Why Have a Marketing or BDC Manager if they Cannot Make Decisions? 

This is not saying that they have free reign on all aspects of the budget. However, if the Marketing or BDC Manager does not have a say or ability to make a decision then what is the purpose of their position? If there is a budget in place, and a list of the vendors they are working with then let them work with it. It is equally important for the GSM to work with the marketing and BDC Manager. By working together on the marketing budget the GSM can review their annual goals, monthly goals and what marketing they need to boost their sales. Otherwise, what usually happens is the GM looks at very high-level reporting - not having all of the details in hand - making decisions that can have a negative impact that was otherwise not thought of during their review. 

Bottom Line: it sounds best to push the marketing plan to the next month (January) because that is what is the norm, but at the end of the day by starting delayed it can wreak havoc. Causing the marketing plan to be a month to month decision. Moreover, while that might seem to work in the long run it is harder to be proactive; as much of the decisions made on a month to month basis are reactive. Reactive decisions to not allow you to look and review the full picture. Not to mention, waiting until the end of January to review the next years budget means that you will not have a plan in place until mid-February, which is right before the March rush. Whereas had you planned in December - you will be prepared for March allowing you to focus on stronger marketing in January and February which are historically slower months.

When do you plan your marketing budgets? Do you allow your Marketing or BDC Manager to be apart of the discussion? If not, how do you empower them to improve their efforts besides telling them to book more appointments?