A dealer friend of mine told me this week that he felt that there are a lot of interesting options for Internet Marketing these days but that "all snake oil has moved to the Internet". Not surprising that a dealer should feel this way given the approach taken by so many providers of services and products to dealers. It's no different than when I was operating our dealership when every salesperson promoting a product pitched - "This is something you must have to stay competitive and to increase your sales and profits". Your gut tells you this is rarely true and just because it's Internet related and you do not understand it should not make you more susceptible to say yes. In fact, in most cases with Internet marketing the smart thing to say is no.
Things you should say "YES" to:
1. A website that reflects the way you do business offline - Be mindful of how you want to do business online and select a website builder that can meet your objectives. If you take charge of designing this essential element in your Internet Marketing portfolio you'll realize how to manage all the surrounding elements to support your "digital dealership".
2. Manufacturer's free websites- Even though this can be construed as a redundant element in your portfolio if you already have your own independent site it is essential if you hope to benefit from online traffic originating at your manufacturer site. Most manufacturers will not link to independent sites so this is your only method. Even if it costs you a few dollars it is worth it since these prospects would not likely find your dealership otherwise and the closing rate on leads from these sites is usually very high.
3. Manufacturer generated leads - Manufacturer leads are generally the best way to receive leads where the prospect has shown an inclination that the brand you represent is on their tick list. In addition, these leads are usually less expensive than leads you can purchase in the pay per lead marketplace. The rub is that you will likely be limited by the geographical marketplace you represent as that franchises dealer so you will not be able to conquest other markets and would need to utilize other pay per lead services to do so.
4. Online Classified sites - Dealers who hope to generate online interest in their pre-owned vehicles should consider at least one of the major sites that are focused on pre-owned vehicles - Cars.com and AutoTrader. There are other options out there you should also consider including the free Craigslist.com option and eBay but they have some unique nuances you will need to learn to be successful. In any case with Online Classified sites you need a trio of things in place to get good results - Quality photos, unique descriptions and on the market pricing. If you cannot do all three well, you will be wasting your money.
5. eNewsletters- This is a product that I have grown to love over the last few years as I use it each month in my own business. If you have heard me present on Database Marketing then you've heard me say "He/She who has the Database Wins". It's true and one way to ensure you maintain a good profile with your current and future customers is to utilize a low cost/high impact eNewsletter.
6. A quality Lead Management or CRM tool - this tool separates success from run of the mill results in most dealerships and it is important to have a tool that is first rate. The right tool makes the investment in marketing a better value because you are able to more effectively manage your workday, review what activities your prospects respond to and keep in touch long-term.
Things you should say "Maybe" to:
1. Paying for Search Engine Optimization - This is likely a good investment depending on the qualifications and the demonstrated results of the service provider. If your site is designed well and the content is reflective of what you provide to consumers then you are well ahead of the search game. A seasoned optimization specialist can effectively promote your site organically near or at the top of relevant searches, which will increase traffic and drive down lead costs.
2. Search Engine Marketing - I regard Search Engine Marketing as the window compared to the door that Search Engine Optimization provides to your website. If you do a good job with optimization it allows you to more effectively manage a Search Marketing Budget. Be mindful of the fact that if your site does not convert visitors to leads (electronic leads or phone calls) at a substantial rate then money spent on search is not as good of an investment. I recommend you either try search yourself on a small scale to get your feet wet or select a reputable provider (your website builder or an outside party) that provides transparency on their search strategies.
3. Pay per Lead Sites - Most dealers should use a 3rd Party Lead Provider to supplement their lead volume or to grow their market presence. Be mindful of the origins of your selected providers leads and ensure that you control your radius and other variables. This way you can generate high quality leads and increase your sales at a reasonable cost.
4. Online Auction Sites - To run with the big dogs in the online auction arena seems pretty simple at first but factor in the transparency necessary to have an exceptional reputation, the quality of the merchandising, the arrangement of transportation and the management of your ratings and you may find this is a tough market to succeed in. However, for those willing to put in the time to learn how to do it right will see substantial results. My guidance has always been to make this a full-time job for someone on your staff instead of a subset to the tasks the Internet Manager or Used Car Manager is already responsible for.
5. Hiring a company to take your vehicle photos - As much as I prefer to see dealerships snapping their own online inventory photos sometimes it is an overwhelming task. To this end it may be wise to consider an outside company for this and holding them accountable for the same quality you would want if you took the photos on your own. Still…once you have the capacity, I would recommend taking your own photos and ensuring he vehicles are represented exceptionally online.
6. Live Chat, Click to Call and similar - One of these days soon our sites are going to become so interactive it will be as if we are sitting across from our prospects as they shop online. If you have ever engaged in a Chat dialogue while shopping you can imagine what this is like for auto shoppers. Several dealers have the staffing and training to pull this off effectively today while others need to focus on the fundamentals of effective phone calls and emails. Nevertheless, be sure to keep an eye on these options and prepare for the eventuality.
There are several more "Maybe's" but these are the top ones to consider in my opinion.
Things you should say "NO" to:
1. Any form of online advertising without a clear ROI - If the product/service salesperson cannot clearly identify a base level return on investment for their offering then you should turn it down. That is unless you are making an investment in a new idea or some relative needs your charity. Nearly every single marketing action online has a demonstrable return. If the salesperson sitting in front of you cannot show you one for their product - ask for a piece of the company and make the investment or simply say no until a return can be demonstrated.
2. Paying for anything you can do for free or near free for yourself- I've learned from operating my own business and from helping dealers with their marketing that a little reading, Googling and questioning can provide a remarkable education. Of course, the key is time and efficiency and if you determine you can handle those aspects then try to do more yourself.
Certainly you can take issue with any of the suggestions I have made and I welcome that. Please keep in mind that you need to control your own Internet Marketing Operation and the more you determine that you want to manage your own Digital Facilities the better results you'll see.
David Kain
President
KainAutomotive.com
david@kainautomotive.com
866-546-3428
Published by David Kain
Copyright © 2008 Kain Automotive Inc. All rights reserved.
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When it comes to Internet Marketing what are some of the initiatives dealers should consider implementing?