Digital dealer magazine february 2009

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Just as you are trying to keep your store(s) on the cutting edge, we are doing the very same thing as we venture into a new frontier in the publishing biz. We can get this digital version in your hands 2-3 weeks faster than the print version, giving you the freshest information possible. You can click on links at the end of each article to email the author of such. And you can click on the ads to link to that advertiser’s website (and you’d REALLY be helping us out by doing just that). It’s quite intuitive…I don’t think that someone who uses the Internet to make a living will have any trouble easily figuring it out. Please let me know what you think about it… [email protected] Welcome to the digital edition of Digital Dealer magazine! Michael Roscoe Editor-in-Chief

Transcript of Digital dealer magazine february 2009

Page 1: Digital dealer magazine   february 2009

Just as you are trying to keep your store(s) on the cutting edge, we are doing the very same thing as we venture into a new frontier in the publishing biz.

We can get this digital version in your hands 2-3 weeks faster than the print version, giving you the freshest information possible. You can click on links at the end of each article to email the author of such. And you can click on the ads to link to that advertiser’s website (and you’d REALLY be helping us out by doing just that).

It’s quite intuitive…I don’t think that someone who uses the Internet to make a living will have any trouble easily figuring it out.

Please let me know what you think about it… [email protected]

Welcome to the digital editionof Digital Dealer magazine!

Michael Roscoe Editor-in-Chief

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The Technology Magazine for Dealers & Managers

February 2009

Association of Automotive

Association of Automotive

Internet Sales Professionals

Internet Sales Professionals

www.AAISPonline.org

www.AAISPonline.org

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FFICIAL

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Association of Automotive

Association of Automotive

Internet Sales Professionals

Internet Sales Professionals

www.AAISPonline.org

www.AAISPonline.orgAssociation of Automotive

Internet Sales Professionals

www.AAISPonline.org

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ANTHONYBARTOLINew and Pre-ownedSales Manager/InternetDirector, Behlmann Buick Pontiac GMC and Pre-owned Carspage 26

ANTHONYBARTOLINew and Pre-ownedSales Manager/InternetDirector, Behlmann Buick Pontiac GMC and Pre-owned Carspage 26

Internet Sales:Redesigning and Refocusing your Approach to the

Market page 12

Your Best Online Presence in 2009

and Beyondpage 14

Technology Trends:A Good DOC Will

Keep you Healthypage 32

BDC/CRM:Measuring Customer

Retention: The Secret Ingredient

page 34

Internet Sales:Redesigning and Refocusing your Approach to the

Market page 12

Your Best Online Presence in 2009

and Beyondpage 14

Technology Trends:A Good DOC Will

Keep you Healthypage 32

BDC/CRM:Measuring Customer

Retention: The Secret Ingredient

page 34

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Page 2

AUTOTRADER GATE

FOLD

THIS WILL BE A

SEPERATE FILE

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HOW CAN WE WORK FOR YOU?At AutoTrader.com, we want to help you succeed. That’s why we

make it our goal to do whatever it takes to help you sell more cars.

You’ll get exposure for your cars and dealership so you can attract

more customers. You will get training to help get the most out of

your investment. And you’ll get innovative products and market

intelligence to give you an edge. And with all this, you’ll also get

a dedicated service team to make it all work for you. To put us to

work for you, just call 888-249-6860 or visit dealers.autotrader.com.

©2009 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license.

68792_AT_AT8-310_Single.indd 1 12/17/08 4:03:40 PM

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FEATURE

Digital Dealer Cover Story26 Anthony Bartoli, New and Pre-owned

Sales Manager/Internet DirectorBehlmann Buick Pontiac GMC and Pre-owned Cars

COLUMNS

AAISP Notes10 How to Endure, Survive and Even

Thrive in Tumultuous TimesMike Roscoe

Internet Sales12 Redesigning and Refocusing your

Approach to the MarketPhil Sura

14 Your Best Online Presence in 2009 and BeyondPeter Batten

16 Be the AuthorityPaige Presley

18 Snake Oil Online?Joe Webb

22 Salvage Sales with the Internet in a Downtime Daryl Sanders

24 What Can SEO and SEM Do For Your Dealership?Elissa Giroux

Technology Trends32 A Good DOC Will Keep you Healthy

Sandi Jerome

BDC/CRM34 Measuring Customer Retention: The Secret Ingredient

Jim Roche

DMS Workshop36 ‘Go Away and Leave Me Alone!’

Paul Gillrie

DEPARTMENTS6 Industry & Tech News8 Digital Dealer E-mail

TABLE OF CONTENTSAssociation of Automotive

Association of Automotive

Internet Sales Professionals

Internet Sales Professionals

www.AAISPonline.org

www.AAISPonline.org

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Association of Automotive

Association of Automotive

Internet Sales Professionals

Internet Sales Professionals

www.AAISPonline.org

www.AAISPonline.orgAssociation of Automotive

Internet Sales Professionals

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A PUBLICATION OF

FEBRUARY 2009

MANAGING EDITORLINDA DI PIETRO

[email protected]

PUBLISHERGREG NOONAN

[email protected]

ART DIRECTORJOE BIRCH

[email protected]

PRODUCTION MANAGERELIZABETH BIRCH

PRINT PRODUCTIONDAVID MANTHEY

DESIGN CONSULTINGPUBLICATION DESIGN, INC.

COVER DESIGNJOE BIRCH

[email protected]

COVER PHOTOGRAPHYYVONNE NIEMANN

CIRCULATION SUBSCRIPTIONRICH JARRETT314-432-7511

[email protected]

NATIONAL ADVERTISING [email protected]

607-264-3359Dealer magazine makes every attempt toensure the accuracy of all published works.However it cannot be held responsible foropinions expressed or facts supplied herein.Nothing may be reproduced in whole or in partwithout written permission from the publisher.All rights reserved. The publisher encouragesyou to submit suggestions. Submitted materialsbecome the property of Horizon Communications,Inc. and will not be returned. Send material forpublication to 330 Franklin Rd., Suite 135A,PMB 386, Brentwood, TN 37027. The editorreserves the right to edit material; submissionof material constitutes permission to edit andpublish that material. This publication isdesigned to provide accurate and authoritativeinformation in regard to the subject mattercovered. It is presented with the understandingthat the publisher is not engaged in renderinglegal, accounting or other professional service.If legal advice or other expert assistance isrequired, the services of a competent profes-sional person should be sought. From aDeclaration of Principles jointly adopted by aCommittee of the American Bar Associationand a Committee of Publishers.

The Technology Magazine for Dealers & Managers

Anthony BartoliBehlmann Buick

Pontiac GMC andPre-owned Cars

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D IGITAL Dealer INDUSTRY & TECH NEWS

vAuto, Carfax unlockprofit for auto dealersA study released today proves that

dealers can maximize profitability byimmediately evaluating cars at trade-in.vAuto and Carfax deliver a powerfultool that dealers are using to identifycars that command a premium price onthe retail market. According to vAuto,dealers consistently price Carfax 1-Owner cars an average of $1,000 morethan cars without the Carfax 1-Ownerdesignation.

“In these tough economic times,dealers need to know which cars andlight trucks can be aggressively mar-keted the second they hit their lots,”said Keith Jezek, president and CEO ofChicago- and Austin-based vAuto.

Consumers prefer cars that have hadonly one previous owner. Using thevAuto tool, dealers can price their vehi-cles at the top of the market. The study,based on more than 3.5 million onlinelistings, also indicates that Carfax 1-Owner cars increase inventory turn.Combined with a higher resale value,Carfax 1-Owner cars maximize adealer’s profit per unit.

“By using vAuto in conjunction withthe Carfax 1-Owner designation, I con-tinue to see an increase in sales as well asan increase in per car gross,” said GaryDuncan, Duncan Automotive Networkof Christiansburg, Virginia.

Previous studies show a minimumsale price lift of $300 for Carfax 1-Owner cars. Carfax has programs inplace to make sure dealers take fulladvantage of their inventory’s profitpotential. www.carfaxonline.com,www.vAuto.com

!

Kelley Blue Book nowreleasing values weekly

Kelley Blue Book is now publishingits used-vehicle values weekly via itsweb-based product KarPower Online.Prior to this, only the Kelley Blue BookTrade-In Values were updated weekly,while other values were published inthe Kelley Blue Book Official Guideevery other month. The Blue BookOfficial Guide also has an updatedpublishing schedule with its frequencymoving from every other month tomonthly. Blue Book Official Guidecustomers received their first monthlyedition in November of 2008.

In addition to striving for greateraccuracy through more frequentupdates, Kelley Blue Book has addedan ‘Auction Value,’ which is what aused vehicle is expected to sell for at awholesale auction. An additionalchange includes a name change for thecompany’s Wholesale Value, a long-standing benchmark for automotivelending, which is now the ‘WholesaleLending Value.’ The WholesaleLending Value will be updated weeklyreflecting the value of a vehicle that hasbeen fully reconditioned, inspected andis frontline ready. Finance companiescan now use Kelley Blue Book’sWholesale Lending Value without anyadditional calculation to mitigate riskand better manage lending portfolios.

Dealers, manufacturers, finance com-panies and others in the automotiveindustry can access all of Kelley BlueBook’s weekly values through a paidsubscription to the company’s Internet-based valuation system, KARPOWEROnline through syndication or via ourservice provider RouteOne and others.

www.kbb.com

!

Dealer.com wins topinternational emerging

media award Dealer.com is a Leader Award winner

in the 2008 Summit Emerging MediaAward (Summit EMA) competition forits work with Checkered Flag Motor CarCorporation, www.checkeredflag.com.The 2008 competition includedapproximately 700 entries from numer-ous countries for which only 12 percentearned recognition. Dealer.com’s workwas recognized in the ConsumerProduct Website category.

Summit EMA award winners areselected for their leading-edge use ofnew and emerging web technologies.Checkered Flag’s Dealer.com web siteincludes the latest in new media tech-nology to keep site visitors engaged andincrease lead submission. The goalwith Checkered Flag’s Dealer.com website was to create a customer-friendlyweb site with one-click navigation andfeature rich content to attract andencourage visitors to shop for carsonline. The site incorporates cutting-edge search marketing, video,consumer reviews, a dealership blog,online credit approval, online servicescheduling and more.

The Summit EMA competition isbased on the premise that advertising isconsistently at the forefront of the tech-nological evolution of communication.Some of this year’s judges included: LisaCharlebois of Ogilvy & Mather,Vanessa DiMauro of Leader Networksand David Snyder of FL2.

www.Dealer.com

!

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Jim Skeans,I have just read your excellent article

in the November 2008 Digital Dealermagazine, “Leverage More Informationfrom your Financial Statement/DOC.”I would appreciate you e-mailing yourcomplete list of favorite ratios with theformulas to me. Thank you.

Best regards,Mark KriegerVice PresidentKrieger AutogroupMuscatine, [email protected]

Hello Mark,Glad you enjoyed the article and thanks

for reading Digital Dealer magazine.The ratios and formulas are included

in the spreadsheet “Key Financial Ratios”available for downloading from the“Free Tools” page on my web site,www.jimskeans.com.

The spreadsheet also illustrates how tolink the elements of the formulas to yourfinancial statement or accounting reportdownload for complete automaton fromyour one-time setup efforts.

While you are there please take a look atthe other management tools, availablefrom our web site for free.

Good luck, Jim Skeans

Hi Sandi Jerome,Great article in the December 2008

Digital Dealer magazine, “DataExtraction – Is it all Over?” I am won-dering if you are at all entertaining theidea of webinars where you could showus the how tos of pushing info. ADP hascoach classes that we can pay for, justwondering with all the information youhave if you would consider that optionfor many digital dealer business issues.

Looking forward to hearing from you.Thank you,Ann PotterController/ITRyan MotorsBuffalo, [email protected]

Hi Ann,Great to hear from you and I've done

some webinars for DealersEdge and

NADA, but none on my own. I'm in theprocess of finding ways to better traindealership staff on DMS systems for ACS,our preferred provider of DealerStar andwebinars are one of the options. If I canfind a good seminar provider, I might addsome specialty classes like data extractionand of course the new popular one, data“pushing.” Thank you for the suggestionand I'll get busy!

Thanks! Sandi Jerome

Daryl Sanders,I enjoyed your article, “10 Strategic E-

mail Rules for Internet Car Shoppers” inthe December 2008 Digital Dealer mag-azine. As a Chrysler/ Jeep/Dodge salesmanager, I frequently have issues withwhat you mentioned: customer pricingeligibility. If at all possible, could youoffer suggestions or even a copy of thequestionnaire that you send prospects? Iwould understand if you are notinclined to disclose your technique, butany help would be appreciated.

Thanks,BJ Holmes General Sales ManagerFalls Chrysler Jeep DodgeCuyahoga Falls, OH

BJ,While I normally advocate an auto

response that introduces the salespersonand store, and then in the next e-mail aquote can be sent, Chrysler, Dodge, andJeep are exceptions to the rule. They haveso many pricing rules and incentives(about an inch- thick document), thatcovers employees, friends, family, acquain-tances, people who once knew someone,and on and on, to quote a price mightcause the dealership to put foot in mouth.

So I advocate four brief questions in theauto response that will help qualify theperson’s eligibility for an advantageousprice. If I don’t hear back from theprospect quickly, then I suggest goingforward with a price quote with quali-fiers in small print assuming certainstipulations.

Daryl Sanders

D IGITAL Dealer E-MAIL

Digital Dealer welcomes your letters andafter verification will run them signed orunsigned. Letters may be edited for spaceand clarity. Send letters [email protected].

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DD 10 February 2009 DigitalDealer-magazine.com

Does the title above pretty muchwrap it up? Is that what youand your store(s) need at this

very moment? The knowledge of howto endure in these tumultuous times?The ability to survive in these tumul-tuous times? And can you imagine…aplan to even thrive in these tumul-tuous times.

The dealerships that will be able toreach these three goals are the ones thatare doing everything they can to accom-plish them. Of course, cost cutting isthe first action that is taken during oneof these cycles. Typically, when times aregood, fat builds up in the form ofexpenses that are not necessary to thesuccess of the business. So finding andcutting the fat is the first, and mostpainless way to bring down expenses.

As I am well aware from being in thepublishing business, advertising is alsoone of the early casualties when we gothrough the slow part of the economiccycle. As the old saying goes, “50percent of my advertising is wasted…Ijust don’t know which half.”

But…this time we have somethingwe’ve never had before. TheInternet…and technology, whichallows you to not only know whatdollars you’re spending arewasted…but which are going to thebest option. There’s tracking and

metrics that traditional advertisingcould never provide. You can defini-tively track ROI.

This current economy is only goingto hasten the move to e-commerce indealerships. Sure, retail automotive hasbeen steadily increasing adoption oftechnologies and processes to market tonew and existing customers…and weknew we would get “there” eventually.But now…it’s a must.

As such, you need to have your bestshot in knowing how to endure, surviveand thrive in these tumultuous times.You need to be in front of your com-petitors in marketing to prospectiveand current customers. You need to dothis in a way that provides ROI. Youneed to find out what the best in thebusiness are doing. You need to knowwhat the top minds believe is the best

way to approach this market. You needto hear from the top consultants andtrainers in the industry. You need to seewhat the leading edge companies haveto offer to give you your best shot.You need…the 6th Digital DealerConference & Exposition.

Every speaker submitting a proposalto speak at the April event has beeninstructed to focus their presentation

specifically on “How to Endure,Survive and Even Thrive inTumultuous Times.” Whatever theirknowledge, whatever their experience,whatever their specific expertise…theywill be presenting it with the focus onhow to endure, survive and even thrivein tumultuous times.

Now more than ever, your atten-dance at this event is critical. It will takeplace at the Mirage in Las Vegas onApril 19-21. There is nothing else youcould possibly do during those 21/2days that will be as valuable to yourbusiness at this time. You need to bethere, and your dealer needs to be there.Check out the web site for details,www.DigitalDealerConference.com.

Mike Roscoe

How to Endure,Survive and

Even Thrive inTumultuous Times

D IIGGIITTAALL DDeeaalleerr AAISP NOTES

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “AAISP” forum or e-mail him at [email protected].

“This current economyis only going to

hasten the move to e-commerce in

dealerships. Now morethan ever, your

attendance at thisevent is critical.”

—Michael Roscoe

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DURING THE ‘80S AND ‘90S, Isupported, consulted and worked witha number of dealerships across a five-state region. That was a period of timewhen the best operations would attractand keep solid sales producers for 20years. I would love to visit with thoseveterans since they possessed keeninsight concerning the auto industry.They were committed to their profes-sion, their customer base, and themanufacturer that they represented.These were the guys who would sell 25to 40 units each month without takinga “fresh customer” unless forced by thesales manager on a busy Saturday.They lived on repeat and referralbusiness. They would pass out busi-ness cards to everyone that they metand they would dare to venture outof the dealership to introduce thelatest models in the field. Manybecame like family to a number oftheir customers because these veter-ans kept written notes (or at leastmental notes) on the following:• Number of kids and their ages (high

school kids needed that first car)• Type of business where they worked • The neighborhood where they lived• The places that they went on vaca-

tion and if the car was used• How the car/ truck was going to be

used (primary use) and the key con-cerns (safety, economy)

• Clubs and organizationsIf you have a family member or an

adopted member in the business, youare committed to that person. Youwould not think of going anywhereelse to purchase your next car. Wehave lost some of that enthusiasm andfocus over the years. Employeeturnover has become a major issue formany operations for a number ofreasons, primarily shrinking margins.Loyalty is very rare and many sales-people simply bounce from store tostore or in and out of the industry. Anumber of the veterans mentionedabove have retired or moved awayfrom the auto industry entirely.

There are exceptions. An example isMichael Cronin, Internet manager forDiamond Auto Group in Worchester,MA. Cronin loves his job and his pro-fession and he can’t contain hisenthusiasm for this industry. He is pas-sionate about studying concepts from

the pros of the past and applying thoseconcepts to the customers of today. Hestill loves to prospect for new cus-tomers everywhere he goes, includingrestaurants. He loves to call andengage with customers in the data-base to prospect and share key pointswith other sales people. A final pointabout Cronin is that he has learnedto take the great sales concepts fromthe past and apply them to the newparadigm that exists with the influ-ence of the Internet.

Many of Internet directors I visitwith today are selling at least at thesame level in their departments whilethe front end of the sales team is suf-fering. Andrew Oxendine is a one-manshow with direct Internet sales but heis still selling 18 to 20 units forMercedes Benz of Alexandria. AndyWarner from Beechmont Ford in

Cincinnati, Ohio just celebrated thebirth of his first son and he is selling90-plus units monthly out of hisInternet team – a record.

Volker Jaeckel is the e-commercedirector for Son’s Auto Group inAtlanta. VJ has been getting greatresults with blogs (2,800 visitors over arecent eight-week period), whichshowcase information about theBMWs. VJ cut the traditional advertis-ing out and is focused on leveragingtechnology and “old fashion Germansales sizzle” to drive sales in his depart-ment. VJ actually got his start inInternet sales in Michigan when noone else wanted to deal with it at hisdealership. Today, VJ is setting recordInternet sales for Son’s Auto Group.

VJ, Andy and Andrew love the

D IIGGIITTAALL DDeeaalleerr INTERNET SALESPhil Sura

“If you started a

new dealership today,

what would you

expect and how would

you operate it?”—Phil Sura

Redesigning andRefocusing your

Approach to the Market

continued on P-DD38

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IT’S 2009; is your dealership web siteready for the new year? A powerfulonline presence can pave the way forincreased leads and sales, so now is thetime to take a close look at what you’reoffering and step up your game. The fol-lowing are some of the best tools and bestpractices to implement today for a stellar2009 and beyond.

Crank down the volume andadd substance

An internal study conducted byChrome Systems found that consumerusage of automotive retail selling sites(including dealership sites, portals, andOEM sites) peaks between 11:00 am and1:00 pm. This means that most con-sumers research and shop for vehicleswhile at work or on their lunch breaks.

Use this knowledge to your advantage.Forgo loud music, time-consumingdownloads, and flashy presentations.Make all rich media optional to “play”.What consumers want is fast, easy-to-access content like build-a-car tools, clearpricing information, detailed options,reviews, fuel economy, and images. Ifyou make the essentials easy to find andview, consumers will keep coming backfor more in-depth research, and are morelikely to submit a lead or visit your store.

Consider specialization More consumers want information

tailored to their individual interests andspecifications. A big consumer concernright now is fuel economy and finding

cars that are easier on the environment.Consider going ‘green’ with a web pagethat highlights your fuel-efficient vehi-cles. Check out the Ron Tonkindealership’s Tonkin Green (www.tonk-ingreen.com) for some ideas.

You can also create specialized searchfunctions to make it easier for consumersto find what they want. The majority ofweb sites currently require consumers toenter a vehicle make, model, and style tostart their search, but many consumersdo not think in these terms. Enable con-sumers to search by body style (coupe,sedan, or convertible), or by features likegas mileage, minimum price, andmaximum price. Check out the NADAGuides web site (www.nadaguides.com)for examples of specialized searches.

Make shopping easierThere are some great new tools that

make it easier than ever for a consumer to

research and buy a vehicle right on yourweb site. Consumers buy vehicles everyday on eBay, why not from your dealer-ship? One company to check out isAi-Dealer (www.ai-dealer.com), providerof complete end-to-end shopping carttechnology for dealerships. MontesiVolkswagen of North Haven, CThttp://nitra.vwdealer.com/montesi/?http:// w w w. a i - d e a l e r . c o m / M o n t e s i -Volkswagen-Shopping-Cart.html iscurrently offering shoppers this tool witheasy step-by-step instructions that makethe process a snap.

Get mobileGet mobile and you’ll reach more con-

sumers. There are more mobile phonesin the United States than there arepeople, and the newest smartphonesoffer powerful web browsing and searchcapabilities. Launch a mobile version ofyour dealership web site and consumerscan find your inventory, review options,and even view vehicle videos, from any-where. Head to www.gumiyo.com formore details on how to get started.

Although we’re experiencing a shakyeconomy, consumer use of the Internet isunlikely to falter. Eighty percent ofserious, in-market vehicle shoppers dotheir research online (2007 Cap Geministudy) and that number is on the rise. Itcan only help your dealership to con-tinue to build your web site. Set the stagenow and reap the benefits in the newyear and beyond.

Peter Batten is general manager forChrome Systems, where his focus is onmaking it easy for web site builders, appli-cation developers, and dealers to presentvehicle information that can be easily usedand acted upon by consumers. In his sixyears with Chrome he has held several posi-tions including: product management,content development, sales, and operations.

Your Best OnlinePresence in 2009

and BeyondTools for attracting more

customers to your online turf

D IIGGIITTAALL DDeeaalleerr INTERNET SALESPeter Batten

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “Internet Sales” forum or e-mail him at [email protected].

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DD 16 February 2009 DigitalDealer-magazine.com

NOW, MORE THAN EVER, it isimportant for your dealership to main-tain the trust of your customers.

With the economy at such a lowpoint, consumers are becoming less con-fident in their purchasing power, andthey are looking for someone to trust.

Geoffrey Ramsey, CEO of eMarketer,said in the report, Digital MarketingNow: Seven Strategies for Surviving theDownturn, “consumers explicitly wantadvertisers to advertise.”

So begin letting your customersknow you are an authority in the autobusiness by making your web site theone-stop shop for vehicle information.

Since the 2008 New Autoshopper.comStudy by J.D. Power and Associatesestablished that the amount of timepotential car buyers spend looking forinformation online is on a steady rise, it’stime to kick your web site into high gear.

Ensure you’re the place auto shoppersknow to go to when looking for factsand figures about vehicles by having theright information on your web site.

Here are a few key items toinclude:

• OEM information: Many peoplego directly to an OEM web site to learnmore about vehicle features and pricinginformation before looking for a localdealership for inventory information.

Save them the time of going to two orthree web sites by providing all of thosespecifications on your site, so whenshoppers have questions about a partic-ular vehicle, they can go directly to yourweb site to see all of the features, pricing

information and whether or not youhave it in stock.

• Dealer/staff opinions: The NewAutoshopper.com Study noted thatdealer ratings and reviews are popularamong auto shoppers. About 38 percentof online auto shoppers use thesereviews as a resource, and 87 percent ofthem believe the information was

helpful during their shopping process.Get your staff together and have

everyone write up what they like anddislike about the vehicles in your inven-tory. While your first priority is to sellthe cars, remember that in order to gainconsumers’ trust, you need to be honest.

• User reviews: The NewAutoshopper.com Study also said thatnearly 70 percent of online car shoppersuse consumer-generated content whilevehicle shopping. In fact, nearly 63percent of those shoppers use this infor-mation as a resource, and 95 percent ofthem believe these reviews are helpful inthe buying process.

Ramsey adds in the previously men-tioned digital marketing report thatconsumers place the most trust in theopinions of friends and family, as well asthose of strangers with experience whentrying to make purchasing decisions.

Draft a list of people who haverecently purchased vehicles from yourdealership and ask them to write a quickreview of the cars they purchased and oftheir experience with your dealership.

• Contact information form: Thisis the single most important thing tohave on your site as it creates a call toaction from your visitors.

These are just a few suggestions thatwill help you become a credible sourceof auto information in and around yourcommunity.

Once you’ve got these down, get a littlecreative and test some other marketingtactics to see how they work for you.

Paige Presley is the marketing analyst/writer for Dealerskins in Nashville, TN.She enjoys mixing her passions for all thingstechnology and for following consumertrends by staying involved in marketresearch for the auto industry.

Be the AuthorityHow the information you put on

your web site can boost your credibility

D IIGGIITTAALL DDeeaalleerr INTERNET SALESPaige Presley

“…consumers are

becoming less

confident in their

purchasing power,

and they are looking

for someone to trust.”—Paige Presley

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “Internet Sales” forum or e-mail her at [email protected].

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YOU HAVE CUSTOMERSAND PROSPECTS.

WE HELP YOU GET A LOT MORE MILEAGE

OUT OF THEM.

Let’s roll.

Innovative e-newsletter solutions.

866-964-6397 imnLoyaltyDriver.com

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WITH SO MANY VENDORSAVAILABLE TO YOUR DEALERSHIP, itbecomes difficult separating the worthyfrom the not so worthy. What vendor isright for you during these trying times isone of the more difficult questions toask. Some dealerships are even creatingvendor relations manager positions justto have one person dedicated to fieldingendless calls, sitting through salespitches and managing the plethora ofcompanies pounding on your dealerdoor. Someone must determine what,actually, is worth your time?

For those of you who know me or haveread my columns, you know that in myarticles I share my own experiences, opin-ions, musings and struggles. What I write isnever meant to be an indictment on anyone individual or service, just my own per-spective. (With a preface like this to anarticle, I know many of you are saying “Uh-oh...who is he going to tick off?” That’s notthe case.) I just want people to remainfocused on their own interests and not letthe interests of others affect their own judg-ment. This is near an impossible feat in theworld of vehicle sales, but I’ll type on.

Many of us are attending NADA inNew Orleans this month. We’ve visitedthe recent Digital Dealer Conferences andwalked through the vast exhibit halls. TheNADA convention, much like the DigitalDealer conference, is filled to the brimwith worthy programs, services, andproducts trying to earn your business. Allof these vendors can add one new dimen-sion, for the most part, to your sales orfixed operations needs. However, I askagain, what is worth your time?

At my previous dealership, I fielded theincoming calls from all new sales vendorslooking to promote their wares. I’d sitthrough countless presentations of theirservices and create my own analyses thatI’d share with the owner and general man-agement. Over the past few years, theamount of Internet-focused programsseems to have tripled, as have the calls andshowroom visits from their representa-

tives. With the Internet-based programs,though, many seem to be targeting such asmall segment of your business that, whilethe service may yield more sales, theoverall impact is minimal.

When I would meet with a vendor rep-resentative, I would always ask how manysales they would expect us to generatefrom adding their service. On severaloccasions, the reps’ answer to this ques-tion was, “Even if you sell three cars, theprogram pays for itself.” I despise thisanswer. I believe every vendor’s programis, at the very least, valuable enough to sellthree cars. Selling three more cars,though, is not a dealer’s goal. Three morecars sold in this economic climate will notmake or break a dealer. Dealershipsshould focus on forming partnershipswith vendors that will sell them 30 (notthree) additional vehicles. I equate thoserepresentatives whose intent is to selltheir product for the promise of threesales to new-age snake oil salesmen.

There are programs out there that canhelp your dealership move 30 or morevehicles a month. • Forward-thinking web site providers• Proven SEO/SEM companies• State-of-the-art CRM solutions• Customer retention programs• Inventory listing sites• Big-name lead providers• Lead scoring companies

These types of online services can play

a significant role in your store’s survival.The other online vendors offer amazingtools that will help you shift your deal-ership’s culture online as well, but maynot have the same influence on sales asthe others.

Let’s face it. Dealers are cutting backtheir spending. Even the dealershipsleading the game know they cannot beinvolved with every opportunity. Wemust evaluate what vendors we willsucceed with, and whether we are willingto back the vendors we choose with ourown optimal effort. It is a two-way street.As a dealer, you must work for yourvendor as much as they work for you. Asa vendor, you must ensure your product iscapable of delivering great successes con-sistently for clients. If your product,program, or service is hit or miss in itssuccess rate, it may be time to go back tothe drawing board and develop an initia-tive that all dealers covet. Easier said thandone, I’m sure, but belief in your productis not always enough.

So when walking through the exhibithalls at the NADA convention (or anyother conference for that matter), keep inmind that your goal should be to find avendor willing to help you grow yourbusiness by leaps and bounds, not babysteps. Don’t be marveled by the miraclemedicine being pitched. Be pragmatic.While online initiatives remain the way togo in today’s marketplace, realize theydon’t all cure what ails you.

Joe Webb is the president of DealerKnows,LLC, specializing in automotive e-commerceconsulting and assisting dealers and vendorswith the advancement of their online efforts,solution successes, and processes throughhands-on training. He has worked in thedealership trenches and now shares hisknowledge of e-commerce, online advertis-ing, and Internet initiatives nationwide.

D IIGGIITTAALL DDeeaalleerr INTERNET SALESJoe Webb

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “Internet Sales” forum or e-mail him at [email protected].

Snake Oil Online?

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THE INTERNET AUTOMOTIVE MAR-KETING CHANNEL CAN BE COMPARED TODEEP-SEA FISHING. With something like1,200 automotive lead gathering sites(not counting dealer web sites), the leadgenerators have packaged “leads” thathave been hooked by seeking a pricequote. These leads are in various stages ofthe buying cycle. For example, a lead gen-erated via spam e-mail, is probably theworst kind of lead there is. It tends togather the curious or the idle, which haveno intention to buy another vehicle.

This “worst kind” is like hooking aminnow; you will never get it to the boat.If you did, you’d throw it back anyway.These kinds of leads could representbetween 10 and 15 percent of all leads.Too many dealers let these minnows dis-courage the use of this selling channel. Butlet’s look on the positive side of the equa-tion. It is generally accepted that 55 out of100 purchased leads will buy a vehicle inthe six- to nine-month time frame.

Let’s get this perspective: To hook alead, the retail dealer must cast a line outinto the web via a zip code purchase.Then, via defined processes, the dealerInternet sales manager begins to reel inwhat is hooked on the line. However,there is a challenge because of the lengthytime frame from getting them hooked togetting them into the boat. But my con-tention during these tough economictimes is that you must be patient. In addi-tion, you should kindly cultivate thoseInternet prospects that are in your leadmanagement tools. Eventually, whenthese prospects feel the freedom to buy,

you’ll be ready to haul in the nets full offish to fry.

So, how do you adjust your in-storeprocesses to succeed in these changingtimes?

1. Make more calls to the leads in yournet. The lead counts are down in allmarkets. This translates into you’ll spendless time working up quotes and sendingfewer e-mails, therefore, you can makemore phone calls. My research shows thatyou’re only talking to about 20 to 25percent of your leads. Consequently, younow have an opportunity to double thatpercentage of leads talked to. Therefore,this effort will greatly increase your onlineengagements to give a clear opportunityto double your sales when these prospectsare ready to buy.

2. Keep track of each lead, don’t let itswim away. After reaching each prospect,don’t let them get lost in the shuffle. The

way to do this is to set up a file system.Put all the talking prospects in the samefile and then review each lead weekly tostay in touch while they are waiting tomake a decision to buy. If an appointmentis made, then move prospects into a “setappointment” file. This file requiresreviewing each of these prospects daily tosee if there is anything needed to movethem forward.

3. Focus on conquest sales to Internetleads. Each phone conversation shouldtake on a more engaging tone. Not thatyou don’t immediately work towardsetting the appointment. But whensensing a client backing off, you need toprovide additional choices to reel them in.Don’t get too anxious to sell that car and

tug too hard. You might lose the fish.While you have them on the “line” takethat opportunity to discover the otherchoices they are considering. Be mindfulthat the generally accepted stats are thatone half of the 55 buyers out of 100 willselect a different kind of vehicle. Learn tofocus on conquest sales in these down-times. Use that opportunity to bring upcomparative products if you can’t reelthem into the boat right away. Prod andpush for their alternative choices, andquickly offer your dealership and yourproduct advantages.

4. Change the bait often. Change e-mail content from price focus to productinformation content. Don’t bug potentialleads with “buy now” pricing e-mails.Most likely this will put them off. This isthe time to focus more on conquest salesand throw out additional productcontent. One of the highest concerns ofthe American public is product safety.Therefore, it is a good idea to build e-mail

Salvage Sales with the Internet in a Downtime

D IIGGIITTAALL DDeeaalleerr INTERNET SALESDaryl Sanders

“Adapt, change, be

positive, find a way,

and work together

among departments…”—Daryl Sanders

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DigitalDealer-magazine.com February 2009 DD 23

content that highlights your product’ssafety message. Imports should promotethe number of their cars built in America.Since environmental issues remain aconcern, every manufacturer should havea “green” message. You should also have agood e-mail content story on the advan-tages of buying from your dealership, andfrom you. Why should you send thesekinds of e-mails? Because, when reeling abuyer into the boat, the hook requiresmore than a price. A successful landingrequires content and relevant informationthat enables a prospect to picture himselfin your car.

5. Keep obstacles away from the view ofthe fish. Talk about financing issues earlierin the process. Don’t spend time frettingor complaining about the finance issuesfacing our industry. It’s best to talk aboutthe elephant in the room; so face financ-ing head on. After sending your e-mailprice quote, the Internet sales managershould get the prospect to fill out a creditapplication right up front. He needs toshow how he can help them in this part of

the purchase. The operative word is ‘how’,not ‘if ’. Every dealership finance depart-ment needs to mentally turn the corner.Don’t rely on the same two or threesources of the past. Utilize every possibil-ity and contact 20 other sources ifnecessary. Just because the rules havechanged does not mean you stick yourhead in the sand. Too often the financedepartment dictates with unreasonablerules and conditions for the Internetprospect. By working in tandem, allowthis prospect to supply you informationbefore they come in. Many financedepartments have blocked potential salesto Internet prospects. In the car businessover the years, I have learned to figure outhow to make the sale first, and then figureout how to make more money.

Maintaining positive attitudes andpreparing the nets is the key to success.Every commercial fisherman repairs therips in the nets before going out to sea tofish. We have a rip in our economy, butsteady yourself and take aim. There aremany fish in the sea. Get prepared. Don’tlet economic stress keep you from throw-

ing out the nets. We must be organizedfor every catch during these changingtimes. It begins with the captain of theboat. Starting with the dealer, everydepartment needs to sit down togetherand find new ways to gather the Internetleads into the boat. Adapt, change, bepositive, find a way, and work togetheramong departments; these are vitalrequirements in today’s market.

Daryl Sanders is the owner of InternetDealer Solutions, Ltd. He has installed hisevolving sales system in over 100 dealerships.He has a business degree in marketing fromOhio State University. As an offensive tackleat OSU, he was an NFL number one draftpick in 1963 for the Detroit Lions.

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “Internet Sales” forum or e-mail him at [email protected].

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IN TODAY’S MARKET, the Internetplays a vital role in connecting dealersto their customers. Dealers who are notweb savvy are falling behind their com-petition, and the reason is simple.Estimates reveal that more than 90percent of consumers begin their searchfor a vehicle online. The vast majoritybegins by entering search terms intoGoogle or other search engines. Makingsure a web site “gets found” should be atop priority for every dealer.

Unfortunately, many companies havejumped onto the Internet and searchmarketing bandwagon. As a result,dealers hear a lot of conflicting informa-tion from multiple sources. What’sright and what’s wrong? What deliversresults and what’s a waste of money?

Search marketing experts are all toofamiliar with dealers’ varying successrates when they attempt to dive intothe world of search engine optimiza-tion (SEO) and search enginemarketing (SEM) without knowing thefacts. To help dealers get it right thefirst time, it’s important to separate thehype from fact.

Search engine optimizationThe advantage to having a well-opti-

mized site is obvious; when consumersenter keywords into Google or anothersearch engine, a dealer’s web site willappear high on the list of results. Butobvious does not equate to simple. Thestrategies vendors use to optimize a site

are diverse, including structural design,updating content and linking.

The ideal solution incorporates amulti-faceted approach, from the waythe web site is initially designed toupdating content according to dealers’goals. In addition, analyzing opportuni-ties in local markets and developingpartnerships with companies benefitdealers in terms of links.

It’s important for dealers to under-stand that they must also takeresponsibility for effective SEO bytaking advantage of back-end tools andkeeping content and inventory fresh, allof which affect how well search enginescan find a site. It’s also important torealize that trends in SEO come and go,and what worked yesterday will notnecessarily work today or tomorrow.New trends such as blogs and social net-working have an impact on a site’s SEO

rankings. Savvy SEO analysts make it apoint to keep informed and implementnew technologies that prove to bepromising.

Search engine marketingThe primary advantage of SEM, or

pay-per-click advertising is that vendorscan set up campaigns that are very tar-geted and specific. If a dealer needs tofocus on moving a particular make ormodel, an ad can be created to attractcustomers looking for that exact makeand model in your area, and then link

them directly to the inventory page.Conversion rates are very high with thistype of ad. Once on your site, con-sumers are a captive audience. Toincrease the effectiveness of SEM, a siteshould be well designed; ensuring thatphone numbers are highly visible onevery page and forms are easy to findand fill out. Customers looking forservice or parts can also be linkeddirectly to those departments’ pages.

Another benefit of SEM is thatresults can be easily tracked, thereforeROI is easily measured.

An unbeatable combinationBoth SEO and SEM are good solu-

tions for attracting customers, but usedtogether their power is multiplied.Statistics show that when both SEOand SEM are combined, the results are

What Can SEO and SEM Do For Your Dealership?

Separating hype from fact

D IIGGIITTAALL DDeeaalleerr INTERNET SALESElissa Giroux

“To increase the

effectiveness of SEM,

a site should be well

designed; ensuring

that phone numbers

are highly visible on

every page and forms

are easy to find

and fill out.”—Elissa Giroux

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far more effective.Here’s an example: If you’re doing

SEO, you want to write descriptivecontent on your site that describesexactly what you offer. If you’re doingSEM, you want to be sure your paid adand link appear if someone is searchingfor specific keywords, i.e. “HondaAccords Atlanta.” But if Google seesthat your site has content about HondaAccords, it will be more likely to matchthe paid search ad with this relevantcontent, and your site will be rankedhigher in the organic rankings.

Conversely, if you’re doing SEM youwant to make sure your web site is welloptimized for the paid search ad to beeffective. And to some extent, it’s a purenumbers game. If you utilize both SEOand SEM, your site will be listed inmore places and it’s more likely that oneof them will be clicked on.

Five steps to creating effectiveSEO/SEM campaigns

Outline goals: Is it really importantto be ranked number one with the key-words that you have in mind? Or, isyour goal to attract more traffic to yoursite and increase conversion rates?Perhaps you want to reduce the cost ofyour leads, or increase closing rates. Allthese goals can be accomplished witheffective SEO and SEM campaigns, butnot necessarily in the way you think. Asavvy Internet marketing provider canhelp you establish goals and then comeup with appropriate strategies to helpyou accomplish them.

Know your vendor’s strategy: Howwill the provider help you accomplishyour goals? This should not be keptsecret. There are many differentmethods and approaches to SEO andSEM, and most vendors use a combina-tion of various kinds. Is your vendorgoing to work with web site architec-ture, navigation and back-endstructure, or will it focus on optimizingweb site content? Your comfort levelwill increase greatly if your provider canexplain their strategies in simple terms,and then back up what they say theywill do with reports that clearly showhow progress is tracked.

Hire experts: Many dealers believethat when it comes to SEM, they cando it themselves. But they really don’thave the expertise and raw data todetermine which keywords are going todeliver traffic to your web site and oncethere, convert that traffic into potential

Questions to Ask Your Search Engine Marketing Provider

Is your provider asking you to signa contract or make some other long-term commitment? If a providerdoesn’t deliver in a reasonable time-frame, you should have the freedomto try other solutions.

How much do you have to spend permonth (what fees are involved)? Someproviders charge management fees,which can drive up your per-lead cost.

Do you have flexibility? You shouldhave the ability to change campaignson the fly in response to market con-ditions or specials that you or acompetitor may be running.

Can you choose when your adsrun? If you know about what hours ordays of the week potential buyers arelooking for cars, you’ll want to beable to turn your campaigns on andoff to ensure you’re running atoptimum times.

Can you track your results? Withmoney tight, it’s important that you beable to track your return on invest-ment. You should know where everyphone call and e-mail submission iscoming from, so you can connect theleads generated for every dollar spent.

Is it easy to use? Even the mostsophisticated technology isn’t goingto do you much good if you can’tfigure out how to use it. Look for asimple user interface.

Is your supporting web site opti-mized for conversions? As importantas your ad campaign is, a high qualityweb site that’s been built to turn visi-tors into leads is the most importantpart of the equation.

Can I divide my spend throughoutdifferent departments such as newand used car sales, service, parts,finance, specials etc.?

Can I control what I spend? Onlyyou should be able to decide howmuch per lead you want to pay.

Is my inventory updated in thesearch engines in real time? Everytime you upload new inventory, adsshould be automatically generatedand posted on Google. This connectsbuyers directly with the inventorythey’re seeking, which increases con-version rates and closing rates.

customers. Unfortunately, many SEMfirms aren’t much better. If you do hirean expert, you want to make sure youknow how much they are spending onvarious keywords, and if they can giveyou reports that track results. A rep-utable provider will have no problemshowing you exactly how they arespending your money. To help withthis sometimes confusing task, see acomplete checklist of questions to ask apotential SEM provider (located in asidebar to this article).

Focus on placement: But not whereyou think. There are a lot of SEM firmsout there that may promise you thenumber one ranking on Google, butthey won’t tell you which keywords theyare going after. What if your topranking is for keywords that no one isusing? Realistically, dealers need tofocus on seeing themselves at the top oflistings for the right terms. Garneringtop placement for “Honda dealerAtlanta” may not deliver the same con-version rates as “2005 Honda AccordAtlanta.” The latter term is more spe-cific and will likely deliver a higherconversion rate.

Be patient: Effective SEO takes time.If a dealer is expecting to see instantresults once a web site has been opti-mized, disappointment is inevitable.Achieving a top ranking is a long-termstrategy and can take months. Onereason is that effective SEO resultsdepend largely on what links you havepointing to your site. When Googleand other engines perform a search,part of what they look for is linkscoming into your site from othersources. Getting these links built uptakes time. A realistic timeframe for asite to show up in SEO rankings rangesfrom a few weeks to several months.SEM on the other hand, can deliverinstant results. If a dealer wants a fastturnaround, a targeted SEM campaignis the medium of choice.

Elissa Giroux is search operationsmanager with Dealer.com.

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “Internet Sales” forum or e-mail her at [email protected].

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D IGITAL Dealer COVER STORY

Anthony BartoliNew and Pre-owned

Sales Manager/Internet DirectorBehlmann Buick Pontiac

GMC and Pre-owned Cars

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Success is part of the Behlmann Buick Pontiac GMC tradition. Through itspartnership with Explorer Vans, the St. Louis, Missouri-based dealership is thepremier van conversion company in America, as well as the St. Louis area’s number one

GM certified pre-owned dealer. It’s also a classic family-owned dealership, founded by Kenand Linda Behlmann in 1972 and now owned and managed by their son, Dan. Today,

Behlmann Buick Pontiac GMC, one of the most successful GM dealerships in the UnitedStates, proudly sells and services Buick, Pontiac, GMC, Chevrolet, Cadillac, Saturn,

Chrysler, Dodge, Jeep, Ford, Toyota, Nissan, Honda, Kia and Lexus.

Anthony Bartoli joined the Behlmann family in 2001, stayed for a few years, left in2005, and then returned in 2007, where he remains today as one of the dealership’s salesmanagers and its Internet director. From the first day he started using the Internet to sell

cars, he’s been in love with both the technology and the process. Although web technologymight be complex, Bartoli believes the sales process for consumers must remain simple.

Read on to learn more about how he and his Internet team consistently bring in 50percent of the sales for this highly successful dealership.

PLEASE TELL ME ABOUT YOUR BACK-GROUND.

Prior to entering the sales industry, Ihad been in the restaurant business man-aging restaurants and even owning myown for some time. After leaving therestaurant business, I became involved inhome alarm dealerships, which were verysuccessful in their time. However, themarket became saturated, resulting in sig-nificant and sudden changes in the alarmindustry market share. So I startedlooking for something else to do in 2001.I had discovered that I had a gift for sales-manship and decided to try out the autosales industry.

In late June 2001 I answered an ad forsalespeople at Behlmann Automotivethrough TK Worldwide. I didn’t knowmuch about cars and was reluctant toenter the auto industry. I thought you hadto have a passion for cars and be some-what of a gear head. However, I knew

someone who worked in the industry andhe seemed to make a very good living.

I was excited about the challenge andwas very successful right from the start. Iwas one of the dealership’s top performersand even earned salesman of the year inmy first year of selling cars. The dealer-ship is a family-owned business and theBehlmann family and managers weregreat to work for. When the Internetmanager quit, I tried to get into theInternet department and was told thatwas no place for a workhorse/closer. Iworked the Internet leads anyway on myown until they found someone to fill theposition a week later. I sold 11 cars ineight days and then went back to strictlyfloor traffic.

Later in February 2005, I was recruitedto manage a Chevy dealership. Whilethere I was given the task of overseeing theone-person Internet department as well.When the Internet person left our store,

he had signed up to attend the firstAAISP conference (Digital Dealer confer-ence now) in the spring of 2006 and wehad to send someone since we had alreadypaid the fee. Reluctantly, I drove down toNashville thinking this was a waste oftime and money for the dealership. Wow,what an amazing experience! Meeting andtalking to people who actually were in theInternet trenches was incredible. What awealth of knowledge. I was constantly onmy laptop when I wasn’t in seminars. Icame back energized and was immedi-ately generating over $2,200 a deal for thestore off Internet sales. The way I thoughtabout sales completely shifted and I had awhole new outlook. I continued to focuson Internet sales from there on out andbelieve that it is the future of the automo-tive business.

Dan Behlmann asked me to return toBehlmann Buick Pontiac GMC in Juneof 2007 as a sales manager and Internet

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unknown factor and a given factor. Thegiven factor is that I can usually addanother 10 percent to what the Internetdid to indicate what was really broughtinto the floor. We’re on over 75 differentsites, so we’re pulling in traffic from a lotof sources.

What tools or lead generators havereally worked on your site to pull inleads?

Our web site is the number one sourcefor our leads. It is as easy as 1-2-3 buttons.First: select your vehicle; second: valueyour trade; and third: finance. Our cus-tomers say that of all the auto web sitesthat they researched, including OEM, oursite is by far the easiest to use.

Dan Behlmann really believes in theInternet and has dedicated a good portionof the advertising budget to drivingpeople to our online dealership. We donot purchase leads at this time. Betweenour web site, GM third-party leads,Autotrader.com and Cars.com, we gener-ate over 100 leads per person per month.

What interactive media resources doyou utilize? Please tell me what servicesthey provide and why you decided togo with them.

Our Dealerskins web site is a great inter-active site for us. We went with Dealerskinsbecause it does an excellent job with a greatprice to value combination.

It wasn’t easy getting our web site towhere it is today. When I first came herewe had a web site built in a basement.They were getting about 500 hits amonth on. When I came here I broughtin Dealerskins and had them do our site.Within a month we were at 2,000 visitors;now our Dealerskins Behlmann.com website has had over 11,000 hits in a singlemonth. We also tried the DealerskinsSEM service. They provide a wide rangeof services and they are all economical,cost-effective solutions.

When I ran a Chevy store and first gotinvolved in the Internet I firmly believed,and still believe, that the process ofbuying on a web site should be as simpleas 1-2-3. One, do your research. Two,value your trade. And three, apply forfinancing. As a result our motto here atBehlmann is the deal on the Internet is aseasy as 1-2-3. We try to drive everyone toBehlmann.com, which is probably ournumber one site that I continually focuson. We have a free Cobalt site. We useAutotrader. We have a special finance sitecalled Easy Auto Credit Help to help cus-tomers get pre-approved.

But our web site has it all: research, aconfigurator, customer testimonials, buildyour own vehicle, and financing applica-tions (for special finance). You can alsovalue your trade using an online appraisalfrom. It’s not a range; we give customersan exact number based on the trade-in

“What sets Behlmann’s apart is our people and our main mission, which is toexceed our customers’ expectations,” says Bartoli.

D IGITAL Dealer COVER STORY

director. I eagerly accepted and nowoversee the whole Internet operation,from monitoring leads on and off hours,maintaining the web site, developingInternet advertising, managing the vehicleinventory, budgeting, managing third-party vendors, etc. I am part of a salesmanagement team with two other man-agers, and we each concentrate ondifferent areas.

How many people work in yourdepartment?

When I returned to Behlmann in June2007, we had one person handling theInternet. In just over one year we havegrown and expanded our Internet salesdivision to include an Internet directorand five Internet managers.

What percentage of your dealership’soverall sales is generated from theInternet?

I can track and account for 67 percentof our traffic generated from the Internet,but that figure is probably closer to 75percent with the floor traffic that goesunlabeled from the various web sites.With our contact management tool, ILMand CRM, we can track leads. During thedelivery part of the sales process, forexample, we actually confirm where theyoriginated. We know what percentage ofrepeat business we get. We always ask thebuyer this final question: “What broughtyou in today?” They might tell us theywere on Behlmann.com orAutotrader.com, MSN Auto, saw the caron GM’s web site, whatever the case maybe. We want to track what percentagewe’re doing from the Internet and wherewe’re spending our ad dollars. There is anunknown element in that a new employeemight forget to extract that key marketinginformation from a new customer. So Ihonestly think our Internet close ratio ishigher than our reports might indicate.Traffic into our store is probably higherthan 75 percent. Month after month,we’re at 50 percent or more in sales, justfrom the Internet team alone.

People come to Behlmann’s for a varietyof reasons, such as the history of the deal-ership; perhaps a car was explained better,the price, perhaps value, our web site,whatever the case may be. The floor guy isprobably not going to tell you it was anInternet deal. To recap, there’s an

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vehicle information they provide. Ofcourse, our web site also lists our currentspecials, information on our teams,including backgrounds and bios.

Do you help design/update your dealer-ship site? For example, update inventory,create specials, add photos, etc.

This is something we do constantly. Asa sales manager I am always watching ourlot and it is not any different with our website. I treat it as another showroom and Iam always monitoring it. I oversee or per-sonally handle the selection of our specialsto ensure that the vehicles are right. Wetake our own pictures. That is anotherthing we do well, and will strive to dobetter as our finances allow it. We usuallyhave anywhere from 12 to 50 photos of avehicle and we also photograph our newvehicles as well. That way, our clients seethe actual color and options of the vehicleinstead of a stock photo.

How do you use e-mail campaigns togenerate leads?

We use several different e-mail cam-paigns to generate leads. We send outdifferent e-mails from time to time andalways try to avoid the spam filters. Wealso try not to over-communicate withour customers. We can’t send out a newmessage every time GM changes anincentive. Instead, our goal is to send outa different e-mail every two months. Wealso run a “buy back” e-mail campaignthat’s been quite successful for us.

Can you give me an example of a suc-cessful e-mail campaign that pulled ina good number of leads?

Sure. One of our Internet managersmodified an e-mail template and created a“We have not talked in a while” messagecampaign that had an incredible responsefrom our client base. This pulled peopleback into the market better than anyother campaign we have done. We stillrun this campaign and it still brings incustomers. It hasn’t grown old yet. I thinkit’s important for ISMs to exchange ideas,such as what e-mail campaigns areworking. I read Digital Dealer magazineevery time it comes out because I’malways looking for new ideas. I wouldexpect that anyone could learn at leasttwo new tips out of every issue. Pick thosetwo tips, apply them and see if it works. I

like to read stories from other Internetsales directors/managers about whatworks and doesn’t work for them. I wasjust amazed when I went to my firstInternet sales and marketing show inNashville. I literally called the generalmanager and told him, “I’m ready tocome home.” He asked if I was disap-pointed in the show. I said, “On thecontrary.” I felt as if we were reinventingthe wheel. I couldn’t wait to get back andstart working the Internet.

If you could keep one tool from yourcurrent interactive tool chest to gener-ate leads, what would it be?

That would be our Behlmann web site.That’s my baby. I work closely with theguys over at Dealerskins, completing thisweb site and getting them on board withmy vision for it. They try to make ithappen for me. That’s my number oneinteractive tool. Are we looking at otherthings? Absolutely. We’re looking attexting, which I think has huge potential.We’re looking at Black Book Online.

I always consult with the team on whatwe implement. From everything I’ve readin these magazines, one of the most treas-ured marketing resources a dealership hasis its newsletter; it’s an ongoing source forleads. So, we’re also working on anewsletter; I believe a newsletter is moneywell spent.

Getting back to texting, I see my kidstexting each other constantly. This has tobe the way of the next generation becauseit’s so easy.

When I was down at the Digital Dealerconference this last October, I texted adealership from my phone and the nextthing I knew someone from the dealershipwas texting me back asking how they couldhelp me, then two minutes later theirinventory was on my phone. That’s prettystrong. The Internet has no boundaries.

I talk to other dealers and ISMs all thetime. They tell me we should be on thisother site or use a certain third-party leadprovider. But, we’re doing pretty well as itis. We don’t buy any leads; we have all theleads we can handle. And you can onlywork so many leads per guy.

Getting back to your question, I’d keepour web site. I should add that once theweb site is intact, the newsletter is up andrunning, and Black Book Online isrunning on our site, then I hope to turn

my attention to mobile marketing andtexting. But my two biggest goals rightnow are to get Black Book Online and tointroduce a newsletter.

Please take me through the processfrom when an Internet lead is received,to how it is eventually closed (via a saleor a long-term prospect).

The lead comes into our VinSolutionsILM and is distributed by a round robinsystem to the five Internet managers.They will send an e-mail and thenattempt to phone the customer. We try toanswer the client’s questions and set anappointment. We are set up to contact thecustomer through the life of that client.Once they buy, they go into a differentcontact cycle for sales and service.

How important is follow-up in closingInternet leads?

I think follow up is the most under-estimated and most crucial part of the lifeof the Internet lead. We have had so manyclients say that either we were the onlyones to respond back or we stayed intouch with them and answered the ques-tions they asked, versus sending out somegeneric auto-response. Right now we’reon two different customer or sales leadsystems or networks. If it comes inthrough the Internet, the floor doesn’thave the information they need; if itcomes in through the floor, the Internetteam may not know about it. Eventuallywe would like to have a single, unifiedview of our customers between theInternet and the sales floor.

There are a lot of new tools in the spacegetting attention – blogs, social net-works, SEO and SEM – do you use anyof them? If so, how have they worked?If not, do you have plans to use any ofthese tools?

We use SEO and it is so important thatyour web site provider gets that right andyou stay on top of it. You have to monitorthat activity and results continually. Weused SEM and we discontinued it becauseit was handled ineffectively. We arelooking at setting that up again. I believeSEM works; I just have to have the rightpeople in place to manage it. Our Internetteam has set up social networks likeMySpace, Facebook, BlackPlanet.com,etc. I have not seen a lot of results from

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DD 30 February 2009 DigitalDealer-magazine.com

thing but now it is video and texting. Wetry to keep our Internet staff trained withthe newest ideas out there by sendingthem to the Digital Dealer conferences. Ihave gone every year myself since springof 2006, and have taken the whole teamto each one. We do online webinars withdifferent people in the industry such asCory Mosley. Vendors have sent in theirpeople to train us as well. We also stay ontop of trends by reading the differentsources available, such as Digital Dealermagazine. As I think I said before, I learnat least two new things from each newissue of the magazine.

As a sales professional, what do youlike most about the Internet?

The Internet offers limitless options onhow and when you can present yourproduct to the consumer. I can communi-cate any time of the day to one of ourclients and send our entire inventory sothat the client can view it on his or herown time and terms. I know that I per-sonally would rather receive an e-mailfrom most people rather than a phonecall. There is an increased reliance on theInternet and electronic communication,such as texting, blogging, e-mail andinstant messaging. This reality gives theInternet professional a huge advantageover the traditional salesperson. We areable to reach out to a mobile customerbase and offer an efficient and low hassleway to shop for a car.

If you could enhance the Internet, howwould you improve it?

The automotive industry, and espe-cially the Internet, changes constantly soit’s hard to tell. A year ago I never thoughtabout texting or receiving inventory onmy cell phone. There’s always somethingnew and it’s sometimes hard to keep up.For example, why is one companymobile-ready and another site providernot? I tell my guys all the time; comparethis to the computer industry. Tomorrowyou’re going to wake up and hear some-thing is new. It used to be auto-responderswere in, now auto-responders are out. Itused to be you had to respond to aninquiry within 48 hours, now you’rebehind the eight ball if you don’t contactthem within seven minutes. We weretalking the other day here at the dealer-ship about how technology changes.Think back to 1982: if you had a cellphone, very few people had them, you

probably had a bag to carry it in. Theywere really big. CDs were just comingout; DVDs weren’t available yet. VCR wasthe way to go; you taped everything.There was no Tivo. Now, who tapes any-thing? And that wasn’t that long ago. Iguess I don’t have one single answer forimproving the Internet because I mighthave to give a different answer next week.

What sets your dealership apart fromothers in the market?

You treat people like you want yourmother-brother-father-sister treated andgive them the answers they ask. We alwaysanswer a customer’s or prospect’s questiononline. If you answer their question, youalready have the winning edge. You don’thave to have the lowest price. Becausehow many dealers are actually answeringcustomer questions?

What sets Behlmann’s apart is ourpeople and our main mission, which is toexceed our customers’ expectations. In therestaurant business we called it the “wowfactor” and I like that analogy. We believein our brand. There is no confusion whenyou believe and stand for the brand; itcomes across to the consumer. Our loca-tion, our history: we have been in businesssince 1971 and in our current locationsince 1991. The Behlmann family is wellknown in the St. Louis area. We are stillthe number one Explorer Conversion Vandealer and people from all over thecountry come to us for their van needs.

From his eye-opening high-energy experi-ence at his first Association of AutomotiveInternet Professionals conference inNashville to his most recent taste of mobilemarketing at the Digital Dealer conferencein Grapevine, Bartoli is in a constant searchto find out more about the Internet. To listento his enthusiasm, it’s obvious there are notenough hours in the day for what he wantsto learn or read or talk about, what he’d liketo test or implement. If he’s not attending aconference, he’s talking with another dealer.And if he’s not talking to other dealers, he’smonitoring the Behlmann web site or theironline leads or the sales room floor.Ultimately, though, it’s clear that what sepa-rates Bartoli and Behlmann from many inthe industry is their family commitment. ToBartoli, taking care of customers is as simpleas 1-2-3, no matter if they’re on your website or in your store.

[email protected]

that yet but it is something that is free andcan’t hurt when done correctly. Anothertool we are planning to use is blogging. Iam looking forward to having that set upin the near future.

What trends in automotive sales areyou noticing and how is your dealer-ship or auto group adapting to thosetrends?

The Internet automotive sales trendsare much like computer and cell phonetechnology. They are constantly changingand evolving. Just when you think youhave one thing mastered, technologyseems to move on. E-mailing was the big

Dealership partners in profit:Dealership name:Behlmann Buick PontiacGMC

Web site URLs:www.behlmann.com

Web site provider/hosting: Dealerskins

Vehicle marketing:VinSolutions

DMS provider: Reynolds & Reynolds

CRM program:Reynolds & Reynolds

Vehicle history reports: Experian Auto Check

Third-party sites whereinventory is posted:AutobytelAutoExtra.comAutoMartAutoTrader.comCar.comCars.comCarsDirect.comeBay MotorsKelley Blue Book

Other vendors:vAuto

Page 33: Digital dealer magazine   february 2009

Do Your Customers Get the Point?Go to www.autopointsite.com

or call 866-348-9717

OWNERSHIP LIFECYCLE MANAGEMENT

“Dahl Ford has increased vehicle sales andservice revenue PLUS reduced our overall expenses using

Ownership Lifecycle Management from Auto Point.We highly recommend it."

Call Auto Point - or call us.

KV Dahl III, GMDahl FordDavenport, IA

Tim ThompsonGeneral Sales Manager

Amy LarsonBDC/Public Relations

Randy OlerParts & Service Director

Dan WichService Department Manager

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DD 32 February 2009 DigitalDealer-magazine.com

EVERYONE GETS SICK FROM TIME TOTIME AND WHEN WE DO, we depend on agood doctor. The same holds true for yourDOC – daily operating control. A goodDOC will help make your dealershiphealthy as long it provides the expenseinformation your managers need to makechanges that affect profit. In addition, itmust be timely and provide an accurateview of how the month will turn out.

Let’s talk about these three elements of agood DOC and how you can make yoursmore valuable. Expenses are one of themost important items to report on yourDOC. Many of you think that expensesare only accurate after the month is com-pleted and all the invoices are posted, butusing your purchase order system can helpfix this problem. First, find all yourexpenses for items under contract likecleaning services and the DMS system.Post the amount per the contract into theaccounts payable account for the month;early in the month instead of when the billcomes in. For example, if your DMS con-tract is $5,300 a month, make that entrynow. Now it will be on tomorrow’s DOC.When the bill comes in next month – notonly does it force you to reconcile to thecontract and investigate differences, butalso your DMS charges will show allmonth long as an expense. Yes, this mightmake your accounts payable account alittle cluttered but if you clearly identify thepostings: “March ‘08 DMS charges percontract,” then it will be easier to reconcile.

Using a strict purchase order systemwill also help. If you require all yourvendors to get a purchase order – espe-cially your advertising agency orproviders, then you'll get invoices to

match and training your accounts payableclerk to post invoices daily will help. It istempting to wait for all the invoices andthe matching statements to post, but weneed to become more of a daily reportingoffice instead of monthly. When yourmanagers see these big expenses appear onthe DOC, then they can question orinvestigate the items. As DMS systemsbecome more GUI, their DOCs areimproving. Some of them enable you toclick on a DOC or MIS line and then seethe detail for that line.

The next element of a healthy DOC isto be timely. Just like taking medicine, if

you wait too long – you won't get theresults you need. The problem with atimely DOC is the car deal delay. Youhave two ways to solve this: either post allcar deals the next day or use the F&IDOC to report sold vehicles. Posting cardeals the day after they are sold meansthat you’ll have a lot of corrections orthings change like the buy rate or costadjustments, but if it is an easy process inyour DMS system, then why not postthem the next day? Start listing all theobjections to this and try to eliminate orminimize so you can become timely. Ifthat is just not possible, then add a memoaccount to post the “deals per F&I” andthen use that number instead of the CUCaccount to multiply your actual grossprofit average times the “deals per F&I”to get an estimated vehicles sales figure.

Finally, your DOC needs to provide anaccurate view of how the month will turnout. Most DOCs or MIS reports ask youhow many days this DOC is through andhow many days in the month. There is areason for this and it is the line or columnthat does a projection. Find that line orcolumn and see how accurate it is. If youwant a simple profit estimator, visit myweb site’s free download page and get myNet Profit Estimator file in Excel(www.sandijerome.com, Free Downloadson the left menu, then Enter DownloadPage). It’s easy to use and my dealer and Iwould bet monthly with it on to see whocould get closest to the number. Just likewhen you go to the doctor, nobody likessurprises – so let’s use these tools to getour dealership healthy.

Sandi Jerome is a former controller, CFO,system administrator, F&I, assistant GM,and fixed operations manager with over 20years experience in the automotive indus-try. She is the owner of Sandi JeromeComputer Consulting.

D IGITAL Dealer TECHNOLOGY TRENDSSandi Jerome

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “Technology” forum or e-mail her at [email protected].

A Good DOC WillKeep you Healthy

“Expenses are one of

the most important

items to report on

your DOC.”—Sandi Jerome

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DD 34 February 2009 DigitalDealer-magazine.com

CUSTOMER RETENTION HAS ALWAYS BEENAND IS MORE SO TODAY, a critical factor ofa dealer’s success. We all know the basicMarketing 101 saying, “It costs 10 timesmore to go out and find a new customerthan it does to retain a customer youalready have.” Well, believe it or not, thereare dealers out there who have ignoredcustomer retention altogether and are nowlearning a very painful lesson.

If you are one of those dealers not doinganything, don’t think for a minute that thedealer down the road doesn’t want yourcustomers. The economy is down andvehicle sales are at a 20-year low.

For you savvy dealers who already havecustomer retention programs in place,there is one golden rule, “Building cus-tomer retention only works if thecustomer benefits from the retentionstrategies.” If you are unsure, ask yourselfthe following questions:• What are your customers’ expectations

and how can you exceed them? • What differentiates your dealership

from other dealerships in the eyes ofyour customers?

• How do your interactions with yourcustomers affect their satisfaction andbuying behavior?So how do you measure your program

is the next question most dealers ask.Indicators of customer retention that canbe easily measured include repeat sales,service visits, and referrals to others. But Ibelieve there is a single metric that iftracked properly, will allow you tomeasure the effectiveness of your cus-

tomer retention program(s) like you neverthought of before.

It doesn’t matter if you are a high-enddealer in Los Angeles, or you are a smallmid-west dealer making double-digitsales. The overall objective of your cus-tomer retention efforts is the same and itis two-fold: 1. If a customer hasn’t been to visit you in

quite some time, you want them to

come visit you, and2. If they currently visit you, you want

them to visit you more often. Simply said, the single metric I am

talking about in measuring customerretention is the average number of visitsper year.

Think about it for a minute. All thingsflow from this key metric: averagenumber of visits per year. Overall revenueincreases if you improve the averagenumber of visits per year. Revenue percustomer increases if you improve theaverage number of visits per year. A con-sumer’s probability of purchasing anothervehicle increases if they visit your dealer-ship more frequently.

So how do you increase average visitsper year? By communicating with yourcustomers throughout the ownership life-cycle, with contextual and timelycommunications delivered in using multi-channel methods. By doing this you willincrease average visits per year for acces-sory sales, service visits and theprobability that they will buy the nextvehicle from you.

It is clear that a dealership’s overallhealth is dependent on its ability to effec-tively retain its existing customers. Myadvice: communicate through the lifecycleand measure average visits per year.

Jim Roche is founder and CEO of AutoPoint. He has been developing and deliveringtechnology products to automotive dealers forover 23 years. Prior to founding Auto Point,Roche was CEO of Ocentrix, Inc., a Seattlestart-up that developed an ASP-based DMSfor dealerships. Roche was also vice presidentof product management for Autobytel, Inc.,president of Carabunga and senior vice presi-dent of operations for Newgen ResultsCorporation. While at Newgen, he was partof the team that oversaw Newgen’s explosivegrowth from zero to 5,000 dealerships and itssuccessful IPO in 1999.

MeasuringCustomerRetention:

The Secret Ingredient

D IIGGIITTAALL DDeeaalleerr BDC/CRMJim Roche

“…the single metric

I am talking about

in measuring customer

retention is the

average number

of visits per year.”—Jim Roche

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “BDC/CRM” forum or e-mail him at [email protected].

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NO ONE CAN BLAME A DEALERWHO FEELS THAT WAY RECENTLY. Certainly,it seems to be the common sentiment.Dealers want to know exactly what isgoing to happen and see things improvebefore they make any decisions. Some areparalyzed, unable to act. Are they thesmart ones or are they missing some greatopportunities?

“Be greedy when others are fearful andfearful when others are greedy.’’ – WarrenBuffet

Since it is our business to help dealerswith technology in their operations, we’vegiven a lot of thought to the actions dealerscan take in these very tumultuous eco-nomic times.

The first instinct is to cutexpenses

Who could disagree? When it comes todealership technology, the most obviousfirst step is to reduce your overall DMScosts and improve your store’s efficiency.Our mission is now, and has always been,to help dealers in this quest. There is nobetter time to take action and reap therewards. In the real world, technology isalways getting cheaper. Right now, a dealerhas more clout than ever before when he isdealing with DMS providers (and otherswho offer dealership technology). Why notseize this leverage that is born of increasedcompetition and a slow economy to spendless and get more for your tech dollar?

Sometimes the path to these savingsrequires some “out of the box” counterin-

tuitive thinking. It’s important to remem-ber that you are not buying a computer.You are contracting for computer services.It’s just like changing to a new cell phoneplan. You can often get a better deal (and afree phone!) if you are proactive. There’salways a better deal for those who ask for itand are ready to make a decision. You maywant to get some professional help to max-imize the savings.

It may be time to start negotiatingWe talk to dealers every day. Everyone is

cutting costs. Some are looking toward thefuture. They realize that increased revenue isthe only long-term solution. They areactively seeking the opportunities and bar-gains that the vagaries of the market areexposing. Some are finding they can acquirethe competition at a fire sale price. Othersare establishing additional profit centers intheir current facilities. Whether they are

buying, selling, contracting or expanding,there are always DMS issues and questions.Often the solution is a simple one; some-times it takes more finesse.

Even in the best of times, no dealer likesinvesting the time and effort it takes tosolve the technology cost-benefit equation.It’s easy to let the very daunting circum-stances in existence today provide all thereasons a dealer needs to procrastinate andavoid thinking about computers and thefuture. Eventually they find they are liter-ally forced to make some decisions.Negotiating “under the gun” is never agood idea. Dealers are finding that the“month-to-month” option that was therefor them in the past no longer exists. Whena temporary arrangement is available, it isoften fraught with dangerous ramifications.In an industry where costs are droppingand in a market where the buyer is incharge, extending the status quo is verylikely the more expensive choice. If yourvendor rep is encouraging you to donothing, it probably means that you arepaying too much and he doesn’t want torock the boat.

It’s time to start negotiating if:• Your DMS hardware and/or software

have become obsolete and need replace-ment. Are you running out of space ormemory? Do complex operations (e.g.month/year-end financial statements)move at glacial speed? Do you need afunction that can’t be added to yourcurrent system? In many cases, you canupdate your system and actually reducecosts. You just need the right strategiesand information.

• You are growing, expanding, and addingfacilities, franchises or new points. Youneed to expand your DMS capabilities to

‘Go Away and Leave Me Alone!’

Have you seen what’s going

on in the auto industry?

D IIGGIITTAALL DDeeaalleerr DMS WORKSHOPPaul Gillrie

“There is no better

time to take action and

reap the rewards.

In the real world,

technology is always

getting cheaper.”—Paul Gillrie

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DigitalDealer-magazine.com February 2009 DD 37

match. You may be asked to assume exist-ing obligations of the selling dealer. Manydealers swallow a poison pill withoutknowing what it is. Know your options soyou can make the right choices.

• Your business is shrinking. You mayhave sold or closed a store. You just can’tkeep paying so much for your technol-ogy. Don’t assume you can’t stay withyour current vendor. DMS vendors arefacing a tough, highly competitivemarket. You may be surprised by aninnovative solution to your problem.Alternatively, it may also be time to seekout a new provider. Know all youroptions and be sure you are getting thebest possible deal.

• Your current contract is coming to anend. Don’t wait until the last minute.You never want to make a decision underpressure. You need time to research, getcompetitive bids and analyze currentexpenses and new options. We used torecommend starting a year before yourcontract expired; now we think 18months is probably better.

• A review of your DMS bills raises someissues. Has the vendor made a modifi-cation to your agreement? Has yourmonthly bill gone up? Do we need to

add services? Reduce services? Are therecharges for items that are no longerused? Should some maintenance becanceled?

• You need a new phone system. You’veheard that new IP telephone systems cansave you money and integrate with yourDMS (and CRM). Is that the right direc-tion? Most dealers find they want toevaluate their options, so they will notregret their choice later.

What negotiating mistakes dodealers generally make?

There are four areas where a poorly negoti-ated deal can fall short of the mark:1. The dealer misses important items thatwill have to be added later – when he hasno leverage and will pay too much.2. The dealer buys items that he doesn’tneed, won’t use or just don’t work. He nev-ertheless pays for them for the next five toseven years. 3. He simply pays too much. How can heget it right when he doesn’t know what theright price is? Often additional costsemerge that were not apparent when thedeal was signed. 4. He agrees to a contract that leaves himexposed. Because he neglects to insist on

important addenda to the standard vendorcontract, he gets some nasty surprises downthe road. Clauses that look innocuousenough now may turn out to be dangerouslater on.

Whether you are evaluating systems,renewing with your current vendor orlooking for the right fit with a new vendor,the key is careful, well-informed considera-tion and execution.

Paul Gillrie is a leading consultant and advo-cate for automobile dealers in their quest toreduce technology expense in their dealerships.He founded The Paul Gillrie Institute in1992 and this scrupulously independentresearch “think tank” now provides dealers andtheir advisors with the most current, accurateanalysis and consumer reports on the technol-ogy issues facing them daily.

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “DMS” forum or e-mail him at [email protected].

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DD 38 February 2009 DigitalDealer-magazine.com

of Internet leads. This specific team hassome very successful operations.

What about you? 1. How are you redesigning your

operation to fit today’s market?

2. How are you refocusing yourteam to adapt to today’s buyer?

3. How are you leveraging theonline space to cut expenses?

4. How are you studying the trendsin other industries to see what hasworked?

5. How are you making certain thatthe salespeople (including the Internetteams) are being trained on the wordtracks that still work today?

6. Are you still passionate about theauto industry or have you lost thatpassion because of the pressures of theeconomy? It shows either way.

7. If you started a new dealershiptoday, what would you expect and howwould you operate it? Why not applythose standards today?

You have a tremendous opportunitytoday to change. If you take the teachingpoints from the sales masters of yester-day and apply them to the new world oftechnology, you will be successful. Evenif the brand that you represent goes outof business, there will certainly be otherOEMs coming into our countrylooking for dealers to represent them.Stay positive, passionate and focusedand you will never lack opportunity.This economic turndown is a seasonthat will pass. It may be another monthor an entire year but it will pass.Redesign and refocus your team today.

Phil Sura is a VP of the AutomotiveDivision of UnityWorks Media.

Internet and they are passionate aboutthe car industry. They saw the oppor-tunity associated with connecting tocustomers differently. The pros of thepast would drive to a construction areato showoff the latest F150 during alunch break. The Internet director oftoday is using a blog or a video of thenew F150 and they are going to thecustomer online. The advantage is thatthe effective Internet managers (newpro) can connect to a larger number ofpeople much faster than the old pro.The old pro could only physicallydrive to one or two job sites each dayto connect with their customers.

This has been the most volatile timefor auto dealers since the 1920s.Projections are that we will lose 2,000to 3,000 dealers through consolidationor simply shutting down points. Mostof the dealers I visit with are goingthrough the process of cutting staff.One group that has not had a layoffand is acquiring dealerships is MileOne. David Metter is recognized asone of the most progressive leaders inthe retail automotive circles when itcomes to adapting to online strategies.His team started to make this transi-tion two years ago. He admits that hedidn’t foresee the major marketdecline, but he saw an opportunity toleverage the Internet with an aggressiveSEO strategy, progressive web sites,and video to cut advertising expenseand sell cars the way that peoplewanted to buy them. Here is a keypoint; 13 percent of the salespeoplewithin the Mile One team are respon-sible for selling 43 percent of the units.The 13 percent represents the Internetdepartments. The turnover rate for theInternet team is 4 percent. Salespeoplewho stay at the same dealershipdevelop the critical relationships withthe customers over time. You can’thave the superstar sales people of thepast if your turnover rate is 100 to 200percent each year (which is the normin the aggressive markets).

Other dealer groups have started tomove aggressively to redesign how theyoperate. One large group in theMidwest requires their entire sales teamto be able to handle any type of lead,including Internet leads. To work atthis operation, you must be able to talkto traditional walk-in customers, takephone ups, and address and stay on top

Advertiser ......................pg #

ActivEngage ......................33

AutoListener......................35

Auto Point ........................31

AutoSoft Intl. ....................37

AutoTrader.com ..................2

AutoUSA............................40

BZ Results/ADP ....................5

cars.com ............................39

DealerPeak (Widestorm) ....8

Dealerspan ........................15

Dominion ....................20-21

eBay Motors ......................7

Homenet............................19

IMN Loyalty Driver............17

Panasonic ............................9

Reynolds & Reynolds ........11

TK Carsites ........................13

VinSolutions ....................23

If you wish to discuss this article withother dealers, or with the author,please go to the “Discussion Forums”at www.DigitalDealer-magazine.comand enter the “Internet Sales” forum or e-mail him at [email protected].

Internet Sales, Sura (continued from P-DD12)

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