February 2008 VOLUME 3 ISSUE 2  
Selling Cars Down by the Bay: You don't usually think of Virginia as a hotbed of vehicle sales activity, but in the backyard of the largest Naval Base in the country the competition heats up. Social Networks Explode on the Internet: MySpace and FaceBook have gotten a lot of attention, but how do auto dealers leverage this excitement? Sell Warranties without Dissing the Car: How to you tell a customer their new car has potential mechanical issues so a service contract is a good idea? Wholesale auctions move online: Are online auctions ever going to replace traditional auctions? Find out what a Ford dealer in Michigan has to say on the subject.


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Sean V. Bradley of Dealer Synergy answers this month's question for AutoUSA readers. (www.dealersynergy.com)

How can dealers use videos to drive traffic to their sites?

With over 70% of the population now on high speed Internet connections video has been a great way to reach consumers on the web. Dealers have started to use videos on their websites, but only in rudimentary ways. We are working with dealers to show them ways to draw more traffic to the dealership. We do this by positioning their videos so the search engines can find them and then allow the dealer to use compelling video content to promote their services.

VSEO is Search Engine Optimization that maximizes video content on the search engines. There is a science to sales and communication. If you want to captivate, intrigue, excite and transfer energy to a prospect the best way to do it is through visual perception and body language. Simple text does not work. If you are listed on search engines with old school SEO and no video, no motion, no transference of energy, you are simply working with a 7% communication medium.

Try to imagine creating myriad of videos at your dealership. And I am not talking about a major investment in video technology. A simple trip to Best Buy to get a digital video camera, a tripod and a lapel microphone is all you need, all under $450. Now you have the tools to create video content and testimonials for anything and everything! Here are some video content suggestions.
  • Testimonials of your happy customers telling how wonderful you and your dealership are, telling everyone how much money you saved them, explaining how you got them approved and no one else could, how you actually delivered their vehicle to their home or office, how they were searching and searching for the car of their dreams and you happened to find it for them! You get the picture?
  • The Unique Value Package "Why should prospects buy from you?" Explain in detail your differentiator.
  • Videos of your team. Create videos introductions of all of the managers and sales people at the dealership. They can introduce themselves talk about their personal and professional experience and share info that will help build rapport with your prospective customers.
  • Tell them about your dealership. Speak about the history, accomplishments, awards, community involvement and local sponsorships. Speak about anything that tells a story and puts a personal face on your store.
( Read More )


Do you have a question for our Experts? Send it to lylesJ@autosua.com


Selling cars down by the bay!
Alex Snyder | Checkered Flag

The Hampton Roads area of Virginia along the Chesapeake Bay encompasses historic Williamsburg, the bustling Navy port of Norfolk, and the growing Newport News area. The Checkered Flag dealerships have ten franchises in the Virginia Beach market area. Alex Snyder oversees the sales and technology team handling the Internet activities at all the stores in the group.

AutoUSA: Can you tell me a little bit about your dealership and your background in the industry?

Alex: Checkered Flag has roots going back to the mid 1800's. It is a family-owned and operated business stemming from over 150 years of retail operations in Hampton Roads, Virginia which included running a furniture and department store. The entry into automotive retailing began in 1964 with the British imports. We grew the brand offerings when opportunities presented themselves until the present day. Our current franchises include Honda, Toyota, Scion, BMW, MINI, Hyundai, VW, Audi, Porsche, Jaguar, smart, and a used car super center called Drivers World.

As the grandson of the founder I have worked here in various capacities since 5th grade. In 2002 I entered the eCommerce side of the industry as an Internet Sales Coordinator at Checkered Flag Honda. After learning the ropes and experiencing the opportunities and challenges of Internet sales, I was promoted to Director of eCommerce for the entire auto group in 2004. Since that time our "track-able" eCommerce vehicle sales have grown to be over 25% of total vehicle sales month in and month out, and that percentage is still growing.

AutoUSA: What is the size and structure of your Internet Department?

Alex: Currently the Checkered Flag Customer Care Center (Internet Department) houses 9 individuals in a centralized environment. Construction will be completed on a new facility this coming March that will provide 22 seats for the ever-advancing Internet efforts and a 4-person IT department.

AutoUSA: How competitive is your marketplace?

Alex: Our market has a population of over 1 million people with our extended marketing; we often draw customers within 100 miles of our location. With the world's largest naval base and the Virginia Beach tourist destination we bring in another 1 million visitors a year. Visitors often check with us to see if they can get a better deal than they may find in their home town. And it goes without saying that we compete with some very strong dealerships in our own market for the attention of auto shoppers.

AutoUSA: What do you do that is different from your competition?

Alex: Customers take it for granted they will get a good price so Checkered Flag has put the focus on customer service. Our stores regularly compete for the honor of being number one in CSI for the nation year after year for their respective nameplates. From a brand equity position, there is a lot of name recognition that comes with over 44 years in the marketplace and we capitalize on that at every opportunity we get. We've also had the ability to experiment with newer online technologies and try out some things that turned out to be quick fads in the market. As an eCommerce Director I've had the pleasure of being able to dig for gold on the frontier instead of having to fight disease and Indians on the trail.

AutoUSA: Do you use third party lead providers?

Alex: We try not to rely on third-party traffic generation or leads, as we prefer to invest in some of our own efforts, but there are some diamonds in the rough. During my tenure in automotive eCommerce, the first few years were all about trying every lead provider to see which works best, and the last few years have been all about scaling back to the ones that work for us. We've continually purchased leads from AutoUSA for six years, so I think that says enough about them right there! They provide a quality product and good service.

AutoUSA: What do you do to create a great customer experience?

Alex: In the traditional business sense, we have quite a few value-added programs ranging from free goodies (products and services) to special presentations in our showrooms. Online, we have been able to participate in ventures that allow the customer to take care of the harder parts of the car buying process before coming into the showroom. We've also launched some ventures to make Checkered Flag more transparent, so customers feel more comfortable working with us. One of these is called Make My Deal, a 24/7 program on our website. While these are important programs we recognize we need great employees to offer a great customer experience. We make extra efforts to recruit, train and keep good employees in our stores, and they in turn keep our customers very happy.

Visit the Checkered Flag website at http://www.checkeredflag.com



Web Selling & Marketing
Internet News Developments of Significance to Dealer Management

Exploding Growth of Social Networks Can Help Auto Dealers:

In our fast paced hi-tech world consumers are looking to leverage relationships for many reasons. Recently Microsoft Corporation invested $240 million for less than a 2 percent stake in Facebook.com, a popular social networking site targeted towards the college market. The investment boosted the value of Facebook to $15 billion dollars. As these communities grow, they start to share their experiences and recommendations on everything from the latest music and television programs to what auto dealer or car sales person you should work with on your next purchase. It will be interesting to see how car dealers adapt to this new opportunity. (
Read More)

Sell Warranties without Dissing the Car:

Extended service contracts are best sellers at most auto dealership finance and insurance departments, but selling them can be tricky. First, the car salesperson touts the quality of a vehicle. Then, the F&I manager tells the same customer a purchased extended service agreement covers repairs. Are you sending mixed messages? How do you sell around this? (
Read More)

Tall Tales And Truths From The Online Wholesale Marketplace:

Used cars are the lifeblood of many dealerships and acquiring the right vehicles is still more of an art than a science. Traditional wholesale auctions are the lifeblood of our industry but recently technology and a dearth of off lease units coming back to the manufacturers has created more channels for dealerships to buy used vehicles for their stores. But how safe are online auctions? We have all heard horror stories about the condition of a unit posted for sale and how drastically different it is once delivered to the buyers lot. Read how Al Long Ford in Warren, Michigan had navigated these new waters. (
Read More)

This newsletter is published as a combined news, editorial, and market research enewsletter by Automotive Information Network, Inc. and AutoUSA. The content is intended to be for informational, educational, and promotional purposes only.

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