CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
As more and more topics of OEM mandates and co-op programs arise in the automotive forums, I want to ask all of you what would take place in a real scenario.
My stance on the topic is neutral.
There are plenty of providers that exist to help automotive dealers with products and services. Let’s use the following two products for the hypothetical. Websites as the mandate and Paid Search as the Co-Op.
Here is the scenario:
Two Chrysler dealers just outside of Coppell, TX. Dealer 1 in business since 1989 and dealer 2 a more modern dealership built in 2001. Both are run by large organizations and have over 400 new Chryslers in stock.
Dealer 1: OEM mandate website and using that same provider at the top tier for OEM co-op dollars.
Dealer 2: Using a smaller company that utilizes responsive website technology. Also, using a different company to manage paid search.
(and, let’s say the smaller digital marketing company is a reputable outfit known as an industry leader.)
Dealers 1 & 2 use the same lead providers and their budgets are comparable.
Specifically, should the dealer that uses non co-op’d dollars and a non-mandated website see better results than using the OEM preferred programs?
I'm Phil Swartz. "May the Swartz be with you..."