Eric Miltsch

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Eric Miltsch

Auction Direct USA

Mar 3, 2010

White, male, aging, crooked teeth, messy hair,...Image via Wikipedia

Its great to see the discussions about the different strategies being used to drive traffic and get noticed online; the best laid SEO, SEM and SMO plans won't be able to execute at their full potential if your site lacks key design and usability standards.

Color themes, page layout, content elements...all items that trigger a subconscious response for the visitor within the first couple of seconds of arriving to your site. Since these are items you can control, why would you want to discount the efforts that are going to represent your brand online?

Conventional wisdom says to pack the pages with content and graphics; brochure style page copy, eye-catching graphics and plenty of "stuff that's cool."

Don't fear the white space. Use it to balance the page and direct the viewer's attention where it needs to be. White space lends itself to creating an open, free flowing and comfortable visual experience. Design studies have also demonstrated that white space helps increase the power of suggestion and influence your visitor's decisions.

Each page of your site is created to perform a specific, revenue producing action. Your page design and layout is the cornerstone of your online strategy. Don't underestimate the power of design and the psychological impact of the colors chosen as well.

What type of emotions are your colors creating?

  • Red is commonly used to help trigger a response within a call to action. The contrast helps isolate it from surrounding elements. Be careful not to use colors such as blue or green on a red background to avoid the "floating" text effect. And of course, too much red and the viewer will not only stop - they may just leave.
  • Yellow is often perceived as being calm and sedate, acting almost as a mental brake and slowing the viewer down. Too much yellow and you run the risk of creating a subconscious hint that may create uncertainty.
  • Orange is a great special weapon for the daring. Call to actions featuring orange can really pop when inserted properly so as not to upset the overall balance of the page.
  • Blue is classic confidence and trust. The most commonly heard description of sites using a smart shade of blue is "clean." That type of response encourages visitors and creates positive expectations.
  • Black is tricky when it comes to an automotive site. Heavy framework can also turn visitors away. Softer tones and gradient effects can minimize the intimidation factor and actually help build confidence. Be cautious of the font colors used on a black background as they often disappear or float when the wrong shade is chosen.
  • Green has obviously gained in popularity because of the entire Green Movement and its overall safe connotation. Perfectly balanced green elements can build trust while changing the visitors perception of the site.
  • Web design isn't a "set-it and forget-it" type of activity which ends once the site launches. Continuous tracking, ongoing feedback management and more testing will steer you towards the most effective use of the resources available.

    Failure to maximize your design efforts can ultimately lead to lost visitor actions and poor branding opportunities.

    Eric Miltsch

    Auction Direct USA

    IT | Web Director

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    Eric Miltsch

    Auction Direct USA

    Mar 3, 2010

    The Subservient Chicken
    Image via Wikipedia
    Car Czar. That's got a cool ring to it...who wouldn't want to have "Czar" in their job title?

    Congress is calling for someone to be named "Car Czar" to manage the estimated $7 billion-plus marketing budget allocated to the big three.

    Whoever gains control of this $7 billion advertising windfall will instantly trump Proctor & Gamble and become the nation's single largest advertiser. The problem? Who the hell do you put in this position?

    To start, cross off all the automotive advertising guys. They're among the latest adopters of new marketing solutions and have proven they don't get the cost effective structure of the new media landscape.

    Next, cross off the traditional agencies & Madison Ave. folks. The traditional channel choices are ineffective, expensive and unaccountable.

    Lastly, cross off the politicians and those out of touch with anything A.G. (After Google) Paul Volker is one name being tossed around. Granted, he's an intelligent guy - but still, he's an 81 year old economist who helped Jimmy Carter fight stagflaltion back in the 70's. How in tune can he be with cutting edge automotive advertising/marketing strategies that will help fix one of our key industries? Other considerations: Nancy Pelosi and attorney Kenneth Feinberg. FAIL#1 & FAIL#2.

    The solution? Someone who will cause a massive ripple in the marketing circle. Online channels will need to be used in ways never seen or experienced before. Google, Yahoo & MSN need to be brought into the equation as strategic partners to allow for maximum cost-efficiencies for paid search and the programmers need to be involved to ensure the most relevant information is quickly served to online shoppers. Google's massive inventory of radio, print and TV ad space needs to be utilized and managed - the cost savings can be upwards of 90% depending on the medium and market chosen.

    What else? Mandatory continuing education for the industry. Make them stay on top of the current strategies, technology and the solutions. Doctors, accountants and even members of the IT community are required to maintain current credit standings; no excuse why the auto industry can't become students of the game as well. Great way to weed out the dinosaurs and change public perceptions.

    This can include everything from online strategies to basic website knowledge. (A plethora of training exists, but nobody is forced to attend. And those conducting the current classes have an different motive - they're selling a product.)

    The spending needs to stop. Ford doesn't need to spend $40 million to name a sports stadium. Don't tell me its branding. Its Ford. Who is going to forget the name Ford? They would be better off setting up "Ford Online Shopping Kiosks" in the stadium and let customers interact with them at the game. (Hello Microsoft Surface.)

    So, what's the solution? Here's my short list and even shorter explanations.

  • Snarky interactive agency Crispin Porter + Bogusky. These are the guys who made Subservient Chicken and those cool Burger Kings ads.
  • Me. I love cars, I love the online element of the automobile industry and I love to stir things up. Plus, I won't charge you anywhere close to Madison Ave. rates.(Congress, feel free to contact me with more specific ideas.)
  • You. User generated content in the form of manufacturer, dealer and end-user feedback is the most powerful and trusted information. This is what the public wants to see and hear when they do their online search. And its cheap.
  • What do you think? What would you do as the Car Czar?

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    Auction Direct USA

    IT | Web Director

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    Eric Miltsch

    Auction Direct USA

    Mar 3, 2010

    Henry Ford (ca.Image via WikipediaThis is one of many upcoming posts about the changes occurring in the Automobile industry.

    With all the buzz about change needed within the retail automotive business, there is more happening than people may realize.

    One micro-trend I've noticed: Individuals and organizations reaching out to the public; Twitter is one creative method being used to build confidence, increase communication and simply listen to what consumers have to say.

    The automobile industry needs some serious help. Here's my short list of the Top 11 people you should be following on Twitter. They're doing their part to bring about positive changes needed within the automobile industry.

    • MissMotorMouth | Bright, enthusiastic car fanatic with a passion for making great things happen in the car business.
    • TomWhitejr | Smart retail industry pro; customer focused & committed. You'll learn a thing or two following Tom.
    • BobinOregon | Bob clearly enjoys what he does - helping his customers find what they need; fresh views on the business.
    • PaulRushing | Curious about what's really going on behind the scenes in the car business? Paul will give you an earful...
    • DealerRefresh| Sharp, experienced industry pro clearly in-tune with the dealer community offering great perspective...
    • Teslamotors | Interesting tweets among a select few people; great topics discussed. And, I'm just a huge fan of the car.
    • ScottMonty | Automotive Social Media whiz from Ford. Definitely doing his part. Great all around content.
    • CarandDriver | If you love your car info, this is one of the best ways to stay current with industry news, pictures & videos.
    • MichaelBanovski | Entertaining and talented automotive writer/photographer/journalist.
    • AnneHaynes | Marketing consultant helping dealers be more effective with their online efforts. (Plus, she's really nice)
    • AuctionDirect | Yea, that's me. I'm the online guy for a fast growing retailer; trying to perfect the used car industry.

    Who else can you add to this list?

    The auto business needs major change. Its comforting to know that these people are pushing to make something happen. More are falling in line daily.

    Eric’s Ramblings…

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    Auction Direct USA

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    Eric Miltsch

    Auction Direct USA

    Mar 3, 2010

    How New Media Helped Auction Direct USA Boost Sales 40%
    by Kimberly Smith
    Case study published on 10/28/2008

    Company: Auction Direct USA
    Contact: Eric Miltsch, IT/Web Director for Auction Direct USA
    Location: Victor, NY; Jacksonville, FL; Raleigh, NC
    Industry: Automotive, B2C
    Annual revenue: Confidential
    Number of employees: 300

    Thanks to MarketingProfs.com for the great article. Be sure to sign up for more of their premium content like this! You can follow Ann Handley, Chief Content Officer for MarketingProfs, on Twitter as well.

    While auto dealerships across the nation struggle to survive in the new economy, Auction Direct USA's business is expanding.

    Annual sales are up 40% for the young company that established its first location in Rochester, New York, in 2005. Three years later, that outlet boasts 14% of the area's used car market.

    Stores in Raleigh, North Carolina, and Jacksonville, Florida, were added within the last year, and the Raleigh dealership is already the third largest in the area.

    So how, in a time when high gas and commodity prices have induced consumers to cut back, has the company managed to keep growing, registering record sales in both May and August of this year?

    Would you believe through a low-pressure approach that entails not only setting low prices but also getting to know its customers on a personal level and supplying the information they need to make smart buying decisions, all without the hounding of follow-up sales calls?

    Yes, we are talking about a used-car dealership—but one that has chosen to defy industry practices and built a business around its customers.

    Online media—including social networking sites, mobile Web sites, and a blog—have greatly assisted these efforts, and together with keyword search are credited for close to 75% of this year's growth.

    This case study shows how Eric Miltsch, the company's IT and Web Director, is leveraging these channels to transform the dealer-buyer relationship and drive up sales.

    Challenge

    Auction Direct USA is determined to redefine the used-car retail industry and change consumer perceptions.

    It hopes to do so by offering competitive pricing, eliminating high-pressure sales tactics, providing in-depth information to embed confidence in the consumer's decision-making process, and engaging potential customers in comfortable settings.

    In early 2007, the company's IT/Web director, Eric Miltsch, determined that new media was the next step for both augmenting that strategy and effectively building an online presence.

    With a "go where the people are" approach, he set out to personally connect with potential customers, boost the company's Web traffic, and—ultimately—increase sales.

    Campaign

    Auction Direct USA's online campaign began with optimizing its core Web site to be clean, user-friendly and functionally reliable. Then, beginning in April 2007, the company began launching the following campaign components to direct more traffic to the site.

    A Blog

    With posts about industry news, auto-related videos, car-buying secrets, dealer confessions, maintenance tips, and more, the company blog at WhyBuyUsedCars.com intends to deliver entertainment and value-added content based on the Web's most popular auto-related search results, as opposed to taking an ego-centric approach or solely promoting the company. To increase reach, the blog's feed is automatically pushed out to the company's social-networking profiles (see below).

    Social Networking Sites

    To encourage increased interaction and engagement with current and potential customers on their channels of choice, Auction Direct USA developed profiles on Twitter, Facebook, and MySpace, and started its own social-networking initiative, called TweetandGreet.com.

    Twitter

    Miltsch uses Twitter to generate exposure, inform customers of company events, build authority, and garner feedback, finding that others on Twitter are fairly responsive to his questions and comments. These include inquiries into the types of information users seek out when they're shopping for a car, which Miltsch then uses to augment the company's blog and Web site content, or to confirm whether the content already offered is considered of value.

    He has also posted links to a test market pages and performed A/B testing to monitor responses. To gain additional insight, and further build brand confidence, he has interviewed select followers, the transcripts of which are then posted to the blog and referenced in Tweets.

    Although the company's base of followers has grown mostly organically through the network, traffic is also generated through calls to action at the bottom of each page of the company Web site, as well as through links on TweetandGreet.com and Auction Direct USA's other social-networking profiles.

    TweetandGreet.com

    Miltsch created the tumblr page as a destination for users to share information about themselves through the prism of their love of cars, including their first set of wheels, preferred gadgets, and favorite driving tunes.

    The submission process increases the company's Twitter base by directing users to become followers before answering the list of questions, and submitted profiles are automatically fed into the company's Twitter stream. Since mid-July, when the page was launched, more than 90 user profiles have been posted.

    Facebook & MySpace

    These networking sites provide yet another place for Auction Direct USA to be found, both through company profiles and Miltsch's own personal profiles. He helps the company stay top of mind among friends and acquaintances by frequently updating his profile status, thus maintaining a regular presence in users' minifeeds.

    The company's Facebook page serves up company news, videos, and the latest blog and TweetandGreet posts. It also invites users to get to know the people of Auction Direct USA, and Miltsch uses a casual tone to prompt user interaction.

    For direct contact, a unique email address is supplied (for example: facebook@auctiondirectusa.com) so that the company can run targeted campaigns and continue to differentiate leads.

    Auction Direct USA has also run marketplace and banner ads on Facebook. As is common on the networking site, click-through rates for these campaigns average under 1%; however, they have helped to build recognition through the millions of impressions received.

    Mobile Web Sites

    Given the growing trend in text messaging, Miltsch saw mobile Web sites as another means for changing the way people shop for cars and make contact with the dealership.

    A separate site has been established for each of the company's three stores, the addresses of which have been used in offline promotions, such as radio and TV, thereby providing a quick and easy way for users to obtain vehicle information on the go without a computer, and without the fear of having to speak with a sales representative.

    An E-Newsletter

    Content for the weekly rich-media newsletter caters to user interests, as determined through site activity, and helps drive traffic to both the Web site and the blog. The newsletter has almost 15,000 subscribers and an unsubscribe rate of less than 1%.

    The company also advertises online with search engine keyword buys in its three primary regions and listings on sites such as CarsDirect.com, cars.com, and AutoTrader.com.

    Results

    Auction Direct USA's sales have increased 40% in the past year, and Miltsch contributes almost 75% of that growth to these online efforts.

    Keyword search—the performance of which has been augmented by the company's blog content and consumer insight accrued through other online efforts—has provided the best conversion ratio, with the highest conversion rates coming first from MSN, then Yahoo, and then Google. Direct links from the blog and social-networking sites have the next highest performance ratios.

    The blog, which is read by a few thousand visitors each month, is consistently among the top 10 referrers of traffic to the company Web site. It currently has a 5-7% conversion ratio for click-throughs to the site, and of those visitors, 13-16% are making requests for contact once on the site. The blog is also on its way to becoming a new, independent revenue channel for the company, given the marketing opportunities that are becoming available.

    Facebook is also consistently among the top 10 traffic sources, even though Auction Direct USA's Group only has around 30 members. "It's not a major activity place," said Miltsch. "But the amount of traffic we get from it is incredible, and the conversion rate is above the typical site average."

    The company's Twitter profile, on the other hand, has attracted over 570 followers, more than any other automotive-focused profile on the network. And although its primary purpose is not to drive traffic, the conversion rate for the 5-10 followers who do click through to the Web site each day averages 14%-60% higher than the site average.

    Lessons Learned

    One of the reasons Auction Direct USA's online campaign has been effective in strengthening its brand and driving up sales is because every piece is designed to appeal to the customer's needs. And those needs are not presumed; rather, Miltsch relies on Web site activity, search results, and customer feedback to identify trends, then shapes his communications and content accordingly.

    He also carefully tracks each component and adjusts as needed to optimize results and conserve costs. For example, the company has been able to quickly cut its losses when a new promotion doesn't perform, as was the case with an online newspaper campaign that resulted in zero conversions.

    Furthermore, he ensures that the user's final online destination—i.e., the company Web site—is not only fully functional but also well designed and conducive to the conversion process.

    Related Links

    Auction Direct USA site
    Auction Direct USA blog
    Auction Direct USA Tweet and Greet
    Auction Direct USA Facebook Group

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    Auction Direct USA

    IT | Web Director

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    Eric Miltsch

    Auction Direct USA

    Mar 3, 2010

    Image representing Twitter as depicted in Crun...Image via CrunchBase

    Car dealers are always looking for new ways to reach potential customers and retain existing relationships. Newspaper rates continue to rise while readership and reach are dropping; radio and TV results are difficult to track and expensive when compared to newer alternatives.

    Social media channels offer extremely low cost solutions for visitor communication, sales messages and marketing efforts.

    I'll begin this series with an overview of Twitter and a few short-cuts to help keep things moving efficiently. By now you've probably heard of Twitter, but are still asking yourself "What's the deal?"

    For those of you not familiar with this micro-blogging phenomenon, Twitter combines the functionality of instant messages, text messaging and social networking by letting you send out messages limited to 14O characters.

    Your messages are centered around the basic theme of answering a simple question: "What are you doing?" Before you get started, choose your voice. Decide if you are going to Tweet messages for your dealership, or for yourself. Use your logo for the dealership and a personal photo for your own account.

    Your Twitter communication strategy should be clearly defined. Determine the type of information you want to share with the community. I share relevant automotive industry news, acquire consumer/visitor feedback, post new blogs and even vehicles in our inventory.

    I recommend new users follow others who have established themselves as credible authorities within their respective market segments. These are the people you can learn a lot from. Their products/services may be different, but their efforts, passions and strategies are all valuable lessons. The amount of followers you get, and maintain, will be directly proportionate to the quality of your messages.

    Here's a list of the Twitter resources I'm either currently using or recommend:

  • TwitterFeed.com: This lets you feed your blog, or any other RSS feed, directly to Twitter. Very easy to set-up and a user-friendly control panel.

  • Twittertise.com: This service lets you schedule a tweet for a specific time in the future. Offers stats on the link used in your tweet. Won't let you set up re-occurring messages though.
  • Twellow.com: The Yellow Pages of Twitter. Find people via location, keyword or local searches and follow those of interest.
  • TweepBeep.com & TwitteRel.com: Think Google alerts; select the desired keywords to track and receive email alerts for those terms. TwitteRel lets you select people to follow from the results.
  • TwitPic.com: Upload images to this photo sharing site and have them pushed to your twitter account. They also have a widget that will send and display your most recent image to your used car blog. Upload photos from your cell phone for even greater efficiency.
  • Twitterlator Pro: iPhone users love sending tweets with this...
  • TwitterBerry: BlackBerry users love sending tweet with this...
  • FriendorFollow.com: Keep your followers, and the people you follow, organized by letting you see who isn't following you back
  • Qwitter: This alert service emails you when someone stops following you; not for people who's feelings get hurt easily.
  • Ping.fm: This is one of my favorites. Ping distributes your messages to dozens of social networking sites such as twitter, pounce, facebook. Huge time saver.
  • TweetDeck: Nice desktop app. that lets you organize your network, see direct messages, see replies and even watch other social networks - all in one window VS. the inline column format that twitter uses.
  • Twitter can be an effective weapon among your online arsenal of strategies - it all comes down to how you decide to use it. You'll get out of it what you put into it.

    Part II will talk about additional social media strategies and resources that can help improve your business.

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    Auction Direct USA

    IT | Web Director

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    Eric Miltsch

    Auction Direct USA

    Mar 3, 2010

    Maslow's hierarchy of needs.Image via WikipediaUsed car shoppers all agree that doing your research online is a must. Dealer websites, photos, videos, mileage figures, reviews, CARFAX history reports…they will seek all the major resources. Even turning to friends, family and even the guy down the hall at work who claims to know everything.

    The major difference between all shoppers is how this information is processed and actually absorbed. Many buyers will tell you what they want and how much research they did. But did they?

    Most car buyers eventually buy something that is closer to what they want rather than what they need. I’ve done it. I blame it on Maslow.

    Shoppers need to use the resources available to make the best choice rather than just taking the easy route and selecting the familiar choices. I see a striking similarity in the the choices automotive shoppers make and the decisions voters make. And those choices tend to be based on comfort versus the decision that actually shares their current needs and situation.

    Rational Buyers:

    These are your car geeks. They know everything about the vehicle. Cubic square inches of the engine, drag coefficients and the entire family history of the founder of the company. Their knowledge overtakes their ability to clearly decide when comparing models side by side. Just like voting, they revert to a confused state and may even make the wrong choice.

    Passive Buyers:

    These buyers don’t pay attention to a specific model or even their specs - aside from price. Their decisions are based more on what they remember from an emotional commercial, a memorable event from their youth or even the overbearing influence from an older Rational Buyer. Again, like voters, very little consideration is given to the alternatives. These are the buyers OEM’s love; they like to call it brand loyalty. I call it lazy and close-minded

    Frugal Buyers:

    The Frugal consumer concentrates on one specific item they have justified as the most important item and becomes passionate about that fact. Any additional logical information that could influence their decision is disregarded as false, stupid or even as a conspiracy theory. These are emotional people. Rational thoughts are not an option as these buyers are operating on their own agenda. If the frugal buyer’s hot button is purchasing the vehicle with highest safety rating, any other piece of information will be met with resistance. I also recommend not discussing anything about religion, politics or popular culture as it will not end peacefully.

    Intuitive Buyers:

    These are pleasant buyers who did what they consider to be sufficient enough research. They could sound like a Wikipedia page, but share only enough to appear as if they are being humble about their “knowledge.” Their effort behind the actual research is minimal; they aren’t overly committed to one particular brand - often flip-flopping and not paying attention to all of the information. They may be interested in the safety endorsement from the NHSTB. Or just the economy ratings from FuelEconomy.gov. Once the key information is found, their decision is made based on the perceived endorsement from that group.

    What kind of used car buyer are you?

    [I’m the 1st one.]

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    Auction Direct USA

    IT | Web Director

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    Eric Miltsch

    Auction Direct USA

    Mar 3, 2010

    The AAA logoImage via Wikipedia
    Want to add a little extra value to your customer's buying experience? Have them drive away from your dealership with additional information that makes them feel even more comfortable. Tell them to be sure they have a AAA membership - for that extra protection. A lot of people may not know the benefits available...

    Did you know that an early form of an automotive social network took root in 1902? A bunch of car fanatics got together in Cleveland, OH to create some maps and directions for drivers because they simply didn’t have enough roads available.

    The club quickly rose to over 1000 members and was called the American Automobile Association; demand escalated from there. Over the years they began creating hotel guides, driver safety programs and even acted as an official backer of professional automobile racing, including the Indianapolis 500 up until the 1950’s.

    Everyone is familiar with the typical AAA services such as unlocking your doors and helping with a tow to the garage.

    However, there’s a entire batch of value added services available to AAA club members that most people are not even aware of.

  • Automotive Financial Services: Need help with credit cards, personal loans, certificates of deposit, money market accounts and IRAs?
  • Automotive Scheduling Service: AAA’s AutoManager will keep you current with your oil changes, tire rotation and engine tune-ups. This is a great service that will help keep your automotive housekeeping items in check.
  • Bail Bond Service: Yes - AAA will actually provide a Guaranteed Arrest Bond Certificate. If you have a fine less than 1k, in some states you can use the certificate instead of cash. Additionally, up to a $5,000 bail bond for covered traffic violations may also be available.
  • Body Shops/Repair Service: AAA has done the dirty work of scrutinizing public reviews, consumer reviews and even financial checks to find you the most reputable body shops and repair services in the country. Check out their Diamond Ratings and pick the best from the list.
  • Driver Education & Training Service: This is an extremely valuable service - one that I will look into for my own kids when they start driving: Driver’s Ed classes. Upon passing, your teen driver will get a free one-year Auto Club Dependent Associate Membership. Just as impressive is the Senior Driving courses available to those 55 and older. This is an incredible value as our nations largest demographic group ages.
  • Jump Start Service: Need a jump? No problem. and they don’t stop there. They don’t want to just send you on your way; AAA tests, diagnoses and replaces batteries regardless of your location.
  • Map/Trip Services: I remember using this service when I had to make my first solo road trip and being so impressed with the advances in technology as a 19 year old driver. AAA’s mapping services are similar to other online services. Creating a TripTik allows you to pinpoint gas stations, restaurants, hotels and important travel elements. AAA’s Diamond Rating is at work in the TripTik; showing you ratings for motels, hotels and restaurants to name a few.
  • Prescription Services: On the road and need some drugs? AAA has more than 57,000 pharmacies that participate in it discount programs. Save wherever you can: 15 percent discounts for brand names, 35 percent for generic and for those traveling with pets, the discounts may even apply for them as well. (Be sure to check your club membership to ensure you qualify)
  • Retail Discount Services: Who doesn’t love a discount when shopping? Books, clothes, hotels, amusement parks. AAA can help. Just show them your card and start saving. (You’ll need it for gas.)
  • Travel Services: AAA doesn’t limit you to automotive travel services. Did you know that you can book a cruise with AAA? Do your smart shopping and save more than just on automotive services.
  • Check out AAA’s site for all the facts on the services as some of these are location specific and may depend on your membership status.

    Have an interesting travel or AAA story? Share yours…

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    Auction Direct USA

    IT | Web Director

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    Eric Miltsch

    Auction Direct USA

    Mar 3, 2010

    Interview from WhyBuyUsedCar.com [WBUC]

    Everyone wants the best price on a used car. Up to 80% of used car shoppers are looking for their next deal online; shoppers visit over 10 different car sites before even visiting a dealership. Knowing this, a consumer may ask why car dealers don't try harder to price their inventory more competitively. A new company is shaking up the used car market with the first and only solution to an old problem.

    Only three years old, vAuto is making a strong impact on used car dealers. Their revolutionary system helps dealers price, appraise and stock pre-owned vehicles. The winners? Dealers AND consumers.

    I spoke with vAuto's Chairman and Founder recently, Dale Pollak. His enthusiasm, knowledge and passion for changing the used car industry rings loud and clear.

    WBUC: What was your driving motivation in creating vAuto's used car pricing solution?

    Dale Pollak: I quickly saw the huge disconnect between the way traditional dealers price their vehicles and how consumers compare car prices on the Internet. Most dealers mark up their acquisition costs by $3,000 - $5,000 and place the vehicle on the Internet at that price. Consumers, on the other hand, can (and do) easily sort and search for the best values in the market. This renders the majority of the used cars on the Internet as uncompetitive from the customer's perspective. I saw this as a really big problem and one that needed to be solved...so I created the vAuto solution.

    WBUC: How have dealers responded to vAuto - what's the feedback so far?

    DP: Very positive right from the start; our sales have soared. The next phase will be exciting as dealers begin to see their own sales pick up as a result of working with us.

    WBUC: What was the buzz like at NADA this year in San Fran?

    DP: Our traffic at NADA was over the top; we had standing room only for nearly the entire show. I think dealers have figured out we have something really special to offer.

    WBUC: What opportunities do you feel dealers are missing?

    DP: Although dealers are eager to acquire our tools, they still have significant cultural challenges in using them correctly. Specifically, most dealers want to price their vehicles to make the biggest margin possible rather than to price them to market. It takes a lot of discipline for a dealer to price vehicles to what the market will bear rather than to a higher, pre-determined profit margin. Progressive operations, such as Auction Direct USA serve as important models of how to successfully serve the used car market.

    WBUC: Notice any trends developing within the industry?

    DP: The used car market has become efficient and transparent. In my opinion, dealers must price used vehicles according to the market if they expect to see buyers show up at their door. As more dealers catch on, there will be less negotiation and in many cases, none at all. I therefore believe that whether dealers recognize it or not, negotiation-free selling is in their future.

    Thanks for the comments Dale, keep up the great work!

    Dealers - If you haven't seen it yet, check out their used car pricing solution.

    Consumers - Keep searching for the best used car prices. If Dale has anything to do with it, it'll probably be easier in the near future.

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    Auction Direct USA

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    Auction Direct USA

    Mar 3, 2010

    Graphic representation of a minute fraction of...Image via WikipediaA nimble, constantly evolving online marketing strategy helps keep CarsDirect dealer partner Auction Direct USA on the cutting edge of the Internet – and on top of the competition

    A drive to innovate permeates every department of Auction Direct USA. The Victor, NY-based chain of used car superstores has built a thriving business largely on being different.

    The differences stood out from the first day Auction Direct USA opened its doors in 2005. Specializing in late-model, low-mileage used cars and trucks, the company offers no-haggle prices on every vehicle and a three-day, 500-mile money back satisfaction guarantee. It established an exclusive 85-point quality inspection process, operates certified service departments, and encourages a relaxed atmosphere that emphasizes personalized customer service. Early success allowed Auction Direct USA to open additional stores in Raleigh, N.C. and Jacksonville, Fla. over the next two years. More locations are in the planning stages.

    Further setting Auction Direct USA apart is the way the company approaches and utilizes the Internet to drive sales. From the beginning, management placed a much larger emphasis on Internet marketing operations than a typical dealership, and encouraged innovation by giving the IT team free reign to explore new ways the Internet can be leveraged to bring customers through the door.

    “We use everything we possibly can on the Internet. We use auto channels like CarsDirect, blogs, social networking sites, mobile websites – everything,” says Eric Miltsch, IT/Web Director at Auction Direct USA. “And we have top-quality talent, solid IT infrastructure, and support from management to really make the most of our efforts. A lot of traditional dealerships can’t say that.”

    Listing inventory on CarsDirect’s Used Car Channel is a major component of Auction Direct USA’s online marketing strategy, primarily because the site – which lists more than 1.5 million used vehicles for sale around the country – offers unique features that connect with consumers.

    “The fact that we are designated as a CarsDirect ‘Trusted’ dealer is great benefit for us,” Miltsch says, referring to CarsDirect’s exclusive program in which it certifies dealers that confirm their support for the CarsDirect Used Car Buyer’s Bill of Rights. “It starts things on a positive note by giving customers peace of mind right away.”

    Auction Direct USA staff also take advantage of the ability to upload unlimited photos and videos of each piece of inventory on the CarsDirect Used Car Channel, giving customers as much information as possible about each vehicle. As a result, CarsDirect has consistently been the top referrer of leads to Auction Direct USA. CarsDirect also provides a high click-thru rate to Auction Direct websites.

    “We also consistently see impressive conversion rates from CarsDirect – usually almost double the rates we’re seeing from other similar services,” says Miltsch. “It shows us that CarsDirect attracts targeted traffic made up of consumers that are really finding what they’re looking for.”

    The company also plans to work with CarsDirect to evaluate future advertising opportunities on the newly introduced Internet Brands Automotive Network, a collection of more than 90 leading automotive community websites, including AudiWorld.com, Ford-Trucks.com, and ScionLife.com. Internet Brands – the parent company of CarsDirect – offers a broad range of advertising options across the Automotive Network that connects dealers with buyers targeted by make and model. The ability to target ads so specifically is a natural fit for used dealers like Auction Direct USA who sell a wide cross-section of recent makes and models.

    Auction Direct USA’s success with CarsDirect is part of its aggressive, progressive online marketing program that constantly evolves along with the Internet. In addition to a rich media weekly e-mail newsletter that goes out to customers and prospects, Auction Direct USA dabbles in almost all of the concepts and technology that have collectively come to be known as “Web 2.0.”

    In early 2007, Auction Direct USA launched a blog called WhyBuyUsedCars.com. The blog differs from most dealership blogs by taking a general auto enthusiast focus and featuring postings on industry news, car shopping and maintenance tips, and fun features like the “Cool Whip of the Week.”

    “A lot of car blogs are boring,” says Miltsch. “We think interesting content, humor, and even a little controversy is what attracts readers and keeps them coming back.”

    The blog has been a key brand builder for the company, attracting thousands of readers each month and driving traffic to the main Auction Direct USA website.

    Auction Direct USA also maintains presences on social networking sites including Facebook, MySpace, and Twitter. Keeping active on the sites allows customers to interact with the brand without having to leave their preferred site. Miltsch says the company’s social networking efforts have paid off by keeping customers up to date on company events (primarily via “tweets” on Twitter) and by driving traffic to the site by regularly updating Facebook and MySpace profiles, which keeps Auction Direct USA active on customers’ social networking event feeds.

    “Using these sites has added a truly social aspect to our online efforts,” says Miltsch. “It’s like walking into a never-ending cocktail party and constantly meeting new people and potential customers. They become more than customers; they become friends of the company.”

    Miltsch and his team have taken the extra step of personally interviewing AuctionDirect USA’s Twitter followers to establish brand confidence, drive traffic, and gain further insight on automotive consumer behavior. The company recently introduced TweetandGreet.com, a social networking initiative that allows Auction Direct USA’s Twitter followers to be profiled on TweetandGreet.com by sharing their thoughts on fun car-related topics, such as memories about their first cars and describing their dream cars.

    While the fast-moving nature of the Internet can mean that today’s hot sites and online marketing techniques could soon go the way of dial-up Internet and floppy discs, Miltsch says he’s confident he and his team will adapt as necessary

    “To really be successful with online efforts, you have to have a genuine passion for the Internet and technology. We have that passion, and we’re thrilled we’re able to use it to help the company grow and thrive.”

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    Eric Miltsch

    Auction Direct USA

    IT | Web Director

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    Eric Miltsch

    Auction Direct USA

    Mar 3, 2010

    Interview from WhyBuyUsedCar.com [WBUC]

    CarTango.com

    I see the paradigm shift within the used car industry more and more every day. The consumer behavior and activity is being noticed by new players within the industry - finally.

    CarTango is a unique online venture with an extremely interesting concept: Social matchmaking targeting female automotive customers. The power of Web 2.0 is finally making its way to the automotive sector.

    Talking with Daniel Osborne recently, CEO of CarTango, he enthusiastically shared his thoughts about his company and the industry. Automotive consumers deserve better ways to shop online - CarTango is making great strides by offering online shoppers, especially women, a creative approach to shop for the best used cars available.

    WBUC: What was your driving motivation behind the launch of CarTango?

    D.O: Creating a better car shopping experience for women. What we found is that by enhancing the consumer experience we were also providing dealerships with more opportunities to have better quality connections with buyers. The female demographic has been academically acknowledged by the automotive industry for years, but very little has been done to meet their unique needs. CarTango provides an innovative suite of tools designed around how women shop, and it also provides the industry the right context to connect and engage with them.

    WBUC: How has the concept been received thus far?

    D.O: The reception has been fantastic by both consumers and the industry. The Car Soulmate Survey has been a big hit for consumers. It is the part of our site that is receiving the most traffic. Female consumers are looking for a better shopping experience and car dealerships are looking for better ways to connect with them. We have been very pleased.

    WBUC: What [other] trends do you see developing in the retail car industry?

    D.O: The dealerships like AuctionDirectUSA that are not only adapting to the Internet trends but pioneering creative ways to use it are going to continue to be the most successful dealerships.

    WBUC: What are your thoughts on major 3rd party channels being a little 'late to the party' with regards to not serving the retail customers' true needs?

    D.O: They have positioned themselves as a barrier between consumers and dealerships. Although this position helps make them a significant amount of money, its a disservice to buyers and sellers. Under the current model, at the point where the buyer information is captured and sold to dealerships, the buyers know little or nothing about the dealership, and are often too far from making their buying decision, or even know what car is best suited for them.

    Under the current model, sellers know little or nothing about the buyers and their relevant activities online, including what other vehicles they are looking at and where else they are shopping. This information is incredibly powerful, and is what CarTango provides to dealers.

    WBUC: What else do you see on the horizon for CarTango.com?

    D.O: We will continue to improve the female car shopping experience and create better opportunities for car dealerships to connect with them. The more options we offer to female consumers to help them feel comfortable with the car buying experience, the more qualified the leads will be for dealers. We also plan to ultimately invite private sellers to utilize the site; thus giving women car shoppers more options and giving another seller demographic some competitive advantages that are currently unavailable to them.

    WBUC: Thanks Daniel...Best of luck!

    Be sure to check out CarTango.com and have fun at the dance.

    Eric’s Ramblings

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    Eric Miltsch

    Auction Direct USA

    IT | Web Director

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