1. Welcome to the digital edition
of Digital Dealer magazine!
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 quickly, 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…
mroscoe@Dealer-Communications.com
Michael Roscoe
Editor-in-Chief
2. January 2010
Internet Sales:
Managing the Phone
Conversation
page 12
Five Powerful Steps to
Chatting with Shoppers
page 14
Technology Trends:
Seeing is Believing
page 22
BDC/CRM:
It’s Not About
JUAN TERAN
the Software Sales Director
page 24 Dewey Automotive
Group
page 18
3. T ABLE OF CONTENTS
JANUARY 2010
PRESIDENT AND CEO
MICHAEL ROSCOE
VICE PRESIDENT AND
FEATURES EDITORIAL DIRECTOR
CLIFF BANKS
cbanks@Dealer-communications.com
Digital Dealer Cover Story 248-351-2620
18 Juan Teran, Sales Director, Dewey Automotive Group EDITOR
LINDA DI PIETRO
COLUMNS ldipietro@Dealer-magazine.com
PUBLISHER
AAISP Notes GREG NOONAN
8 ??? 607-264-3359
gnoonan@Dealer-magazine.com
Cliff Banks
ART DIRECTOR
JOE BIRCH
Internet Sales
PRODUCTION MANAGER
10 The Colonization of Retail ELIZABETH BIRCH
Phil Sura
PRINT PRODUCTION
NICK THOMAS
12 Managing the Phone Conversation COVER DESIGN
Rob Lange JOE BIRCH
COVER STORY PHOTOGRAPHY
14 Five Powerful Steps to Chatting with Shoppers STEVE ALEXANDER
Todd Smith CIRCULATION SUBSCRIPTION
RICH JARRETT
314-432-7511
16 Is your Web Site Giving Car Shoppers What They are rjarrett@Dealer-magazine.com
Looking For? www.Dealer-magazine.com
George Nenni NATIONAL ADVERTISING SALES
adsales@Dealer-magazine.com
Technology Trends 607-264-3359
22 Seeing is Believing Dealer magazine makes every attempt to ensure the
accuracy of all published works. However it cannot be
Sandi Jerome held responsible for opinions expressed or facts supplied
herein. Nothing may be reproduced in whole or in part
without written permission from the publisher. All rights
BDC/CRM reserved. The publisher encourages you to submit sug-
gestions. Submitted materials become the property of
24 It’s Not About the Software Horizon Communications, Inc. and will not be returned.
Send material for publication to 330 Franklin Rd., Suite
135A, PMB 386, Brentwood, TN 37027. The editor re-
Chuck Barker serves the right to edit material; submission of material
constitutes permission to edit and publish that mate-
rial. This publication is designed to provide accurate
and authoritative information in regard to the subject
matter covered. It is presented with the understanding
DEPARTMENTS that the publisher is not engaged in rendering legal,
accounting or other professional service. If legal advice
4 Digital Dealer E-mail or other expert assistance is required, the services of a
competent professional person should be sought. From
6 News a Declaration of Principles jointly adopted by a Commit-
tee of the American Bar Association and a Committee
of Publishers.
A PUBLICATION OF
! " # # $ % & ! ' ( & " % )
DD 2 January 2010 DigitalDealer-magazine.com
4. T ABLE OF CONTENTS
JANUARY 2010
PRESIDENT AND CEO
MICHAEL ROSCOE
VICE PRESIDENT AND
FEATURES EDITORIAL DIRECTOR
CLIFF BANKS
cbanks@Dealer-communications.com
Digital Dealer Cover Story 248-351-2620
18 Juan Teran, Sales Director, Dewey Automotive Group EDITOR
LINDA DI PIETRO
COLUMNS ldipietro@Dealer-magazine.com
PUBLISHER
AAISP Notes GREG NOONAN
8 Embrace the Future 607-264-3359
gnoonan@Dealer-magazine.com
Cliff Banks
ART DIRECTOR
JOE BIRCH
Internet Sales
PRODUCTION MANAGER
10 The Colonization of Retail ELIZABETH BIRCH
Phil Sura
PRINT PRODUCTION
NICK THOMAS
12 Managing the Phone Conversation COVER DESIGN
Rob Lange JOE BIRCH
COVER STORY PHOTOGRAPHY
14 Five Powerful Steps to Chatting with Shoppers STEVE ALEXANDER
Todd Smith CIRCULATION SUBSCRIPTION
RICH JARRETT
314-432-7511
16 Is your Web Site Giving Car Shoppers What They are rjarrett@Dealer-magazine.com
Looking For? www.Dealer-magazine.com
George Nenni NATIONAL ADVERTISING SALES
adsales@Dealer-magazine.com
Technology Trends 607-264-3359
22 Seeing is Believing Dealer magazine makes every attempt to ensure the
accuracy of all published works. However it cannot be
Sandi Jerome held responsible for opinions expressed or facts supplied
herein. Nothing may be reproduced in whole or in part
without written permission from the publisher. All rights
BDC/CRM reserved. The publisher encourages you to submit sug-
gestions. Submitted materials become the property of
24 It’s Not About the Software Horizon Communications, Inc. and will not be returned.
Send material for publication to 330 Franklin Rd., Suite
135A, PMB 386, Brentwood, TN 37027. The editor re-
Chuck Barker serves the right to edit material; submission of material
constitutes permission to edit and publish that mate-
rial. This publication is designed to provide accurate
and authoritative information in regard to the subject
matter covered. It is presented with the understanding
DEPARTMENTS that the publisher is not engaged in rendering legal,
accounting or other professional service. If legal advice
4 Digital Dealer E-mail or other expert assistance is required, the services of a
competent professional person should be sought. From
6 News a Declaration of Principles jointly adopted by a Commit-
tee of the American Bar Association and a Committee
of Publishers.
A PUBLICATION OF
! " # # $ % & ! ' ( & " % )
DD 2 January 2010 DigitalDealer-magazine.com
6. D IGITAL DEALER E-MAIL
Digital Dealer welcomes your letters and after verification will run them
signed or unsigned. Letters may be edited for space and clarity. Send
letters to DDmail@DigitalDealer-magazine.com.
Dear Mr. Sura, dollars going the traditional route that would
Thank you for your articles in Digital Dealer include the following examples: newsprint,
magazine. I find them most informative. 30-second network or cable spots, radio, direct April
2009
I have recently been assigned with revamp- mail or they can embrace an alternative to reach The Te
chnolo
ing the Internet department at our store. We the market with an online strategy. Examples gy Ma
gazin
e for
Deale
rs & M
have a full-time Internet manager and he is would include focusing advertising dollars with Intern
Why D et Sale
anage
rs
o I Nee s:
doing OK. We would like to focus more of AutoTrader, Cars.com, Google ad words, video to
page
10
be on d
Facebo
ok?
our dealership’s potential in Internet. I’ve read strategy (to drive conversion), e-newsletters, a Are yo
‘Consu ur Online Ve
page
12
mer O
ptimiz hicles
a number of your articles and in every one you clear SEO strategy and linking your inventory Techn
Trend ology
ed’?
s:
mention dealerships putting more money into content to any online site that you can (there are Counti
with Teng your Ass
page chnolo
gy
ets
OLK V
Internet advertising. Does this mean advertis- a number of options in every city). The percent- JAECK ER
25
BDC/C
EL
R
You Ca RM:
ing on others’ web sites, and if so, what sites age of dollars spent with the online side divided Fear at nnot Have
page the Sa Fait
me Tim h and
e-C
SONS ommerce
Autom D
otive irector
26
e
have you seen the most success? Any input by total ad dollars will tell you how progressive Group
page 22
you can give would be greatly appreciated. you are. Some dealerships have assigned 80%
Thank you, of their budgets to online strategies. I know of at OF
FICIAL
Jake McDowell least one major group that refuses to spend one otive
of Autom otive
of Autom
Association Professionals
Association Professionals
Internet Sales
Internet Sales line.org
www.AAISPonlin
www.AAISPon
e.org
N
UB O
L I C AT I
P
Internet department dollar on the traditional side. The average dealer
Thomasville Ford that I have met with only allocates 25 to 35%
Thomasville, GA of their budget to this side of the equation. It is Hi Sandi Jerome,
jmcdowell@rose.net still the Wild West when it comes to these online I am catching up on back issues of
strategies, but the key is testing in many areas. Digital Dealer magazine and just read your
Hi Jake, The investment is a fraction compared to the “Counting your Assets” column from April
Thanks for the e-mail. I appreciate your inter- expense on the traditional side. Congratulations 2009’s issue. Could you please share your cash
est in my articles. on being focused on making this shift. flow spreadsheet? We’re constantly going over
Dealers have an opportunity to spend their ad Phil Sura the numbers from all different perspectives;
I’d love to see what you do!
Thanks!
Best regards,
!""#$%%#&%'( Jennifer Moylan
!"#$%&'()'!%*+%",%*-
Controller
Open Road Auto Group
Edison, NJ
jennifer.moylan@openroad.com
Hi Jennifer,
You can get that spreadsheet from my web
site: www.sandijerome.com. Click on the left,
free downloads, and enter download page. Be
sure and save it to your own computer instead
of opening it.
Thanks,
Sandi Jerome
DD 4 January 2010 DigitalDealer-magazine.com
7.
8. D IGITAL DEALER TECH NEWS
22 in Inc. magazine’s 2009 annual ranking of approximately 1.3 million iPhone users
the fastest-growing, privately held companies nationwide tend to use their handheld device
in America. The company’s chairman and more than others to access the Internet. In
founder, Dale Pollak maintains a blog for fact, a recent study found that nearly 85 per-
the discussion of used-car trends at www. cent of iPhone purchasers regularly use their
vAuto introduces the dalepollak.com. www.vAuto.com handheld device to access content on the web.
www.AutoUSA.com
industry’s first and only
used car lifecycle manager
Automotive dealers now have the ability to DealerStar, Inc.
better manage their used vehicle end-to-
end processes with the release of vAuto’s
announces new versions
LifeCycle Manager. of DMS system
vAuto’s LifeCycle Manager provides dealers DealerStar, Inc., has announced two new
with the ability to tightly track all processes
AutoUSA announces versions of its emerging DMS system.
from the moment of acquisition to time of new mobile leads The new ASP version enables dealerships
sale. Working from a central dashboard, deal- program for dealers interested in DealerStar get to know how
ers can drill down car by car to proactively AutoUSA, a leading provider of the highest it works by using the CRM/BDC module,
correct any delays or process gaps. Dealers are quality Internet leads to auto dealers nation- data mining, and data warehousing along
able to examine time through reconditioning, wide, has announced a new mobile leads pro- with reporting features. It has an easy data
time through service, time through generating gram for dealers that uses an iPhone/iPod upload for customer, inventory, repair order,
descriptions and uploading photos as well as Touch application developed by Carperks parts, and accounting data from most exist-
a multitude of additional dealership specific to generate new and used vehicle leads from ing DMS systems.
milestones. on-the-go car buyers. AutoUSA will be After a dealership uploads its data, it can
“With increased pressure on margins, the the exclusive distributor of leads from the create mailings, e-mails, and analysis of
need to manage used vehicle time-to-market Carperks app, which can be downloaded by their data in an easy to use format with
is greater than ever,” said Keith Jezek, vAuto’s iPhone/iPod Touch users for free from the an export to Excel/Word. Initial pricing is
president and CEO. “Our LifeCycle Manager Apple App Store. $285 a month with no long-term contract.
provides a detailed view into a used car’s prog- The Carkperks car buying discount iPhone DealerStar IT is for dealership groups with
ress through many varied processes, all of app allows mobile car shoppers to access, an IT department that want to own the
which are critical to turn and ultimately the search and view car inventory from dealer DealerStar code and install on the dealer-
bottom line.” participants in AutoUSA’s Carperks program. ship’s server. They can start using the CRM/
In addition to LifeCycle Manager, vAuto has It highlights those dealers within the shopper’s BDC and data warehousing features today
introduced a scrolling feed to provide current local market area that are available to provide and customize their DMS system for the
dealership news as well as recent inventory price quotes. future. These two new versions join the
updates to all vAuto users. Having a quick App users can search for a dealership based existing reseller plan where a technology
snapshot of what is taking place and what on the vehicle make(s) and model(s) they company can own the code, private label,
needs immediate attention is another effort are interested in and, where allowed by law, and resell DealerStar to their client base.
to assist dealers in managing in real time. immediately generate digitally formatted According to Vice President Sandi Jerome,
The company’s “Live Market View” technol- discount certificates valued at $100 for the “Our biggest demand for DealerStar has been
ogy currently allows more than 2,000 dealers new vehicle(s) of their choice. Consumers from dealership IT departments that want to
to manage their used-car inventories based on using the app save time and money by quickly make a long-term investment in their own
comprehensive supply-and-demand infor- finding the inventory they want at their local DMS system. They are tired of trying to adapt
mation mined by vAuto for their specific participating dealer. To learn more about the to the existing systems and want to customize
market area. Details on millions of pre-owned Carperks app go to www.carperks.net/mobile their next DMS system.” DealerStar’s open
vehicles are maintained and updated on a or download it here from the iTunes store. database is MySQL and it uses a wizard-like
daily basis within vAuto’s database. The iPhone is packaged with a variety of code generator to create the PHP/Javascript
The nation’s five highest-volume franchised applications or iPhone web apps that make user interface. “Using open source products
dealerships by brand currently use vAuto pric- it a wonderful browsing experience for the not only reduces IT costs for dealerships but
ing, appraisal, stocking, and merchandising user, therefore, applications on iPhone are ensures the life-cycle availability of the DMS
systems. vAuto was recently ranked number growing extremely fast in popularity. The system,” adds Jerome. www.dealerstar.com
DD 6 January 2010 DigitalDealer-magazine.com
9. For Sgt. Poscius,
the battle
continues.
Please join us in honoring our
7
returning heroes, many of
nded
wou rior whom have been wounded in
war mind, body or spirit. We offer
services that ease the burdens
of those injured and help
smooth their transition back
into civilian life.
To learn more about what we
do and how you can help, go to
woundedwarriorproject.org.
The greatest casualty is being forgotten.
MIKE POCIUS
Wounded in Iraq CFC #11425.
Below-knee amputation Wounded Warrior Project is a 501(c)(3) non-profit organization
10. D IGITAL Dealer AAISP NOTES
Cliff Banks
Embrace the Future
T
he other night, I watched the The answer is, I don’t really know. I do guidelines for how your employees are to
Indianapolis Colts defeat the know it’s going to change how we sell and behave online. But the revolution is happen-
Jacksonville Jaguars 35 – 31 – on market our businesses. It’s the “how” I’m not ing, and it’s here to stay.
my Sprint Blackberry Tour phone. sure about. But some of you already are figur- It’s time to embrace the future. Technology
I don’t get the NFL Network, which is the ing out the answer to that question. no longer is to be feared. We can grasp it now
only channel the game was on, with our cable In a couple of years, we’re not going to and use it to our advantage. Let your imagi-
package, but I do on my phone, at no extra be limited by technology. Instead, our only nation run wild on how new technology can
cost. I also have access to numerous other limitation is going to be our imagination. help your business, and help your dealership
shows that I can watch when I want, where As cloud computing (Google it if you don’t sell and service more cars.
I want. Sort of like the OnDemand packages know the term) takes off, marketing online I’m going to engage in a little self-promo-
offered by cable companies. and to mobile devices will be a simple task. tion here. The Digital Dealer Conferences
It’s a novelty right now, but pretty soon, Our service departments will communicate and Expositions held twice a year are great
it’s going to be a way of life for us. I’m not directly with vehicles, automatically setting places to let your imagination run wild.
sure where all this technology is taking us, up appointments based on what the vehicle Listening to some of the top dealers in the
but I do know how we watch TV and how actually needs. country show how they are using technology
consume entertainment and information is Imagine really being able to target the right along with sharing ideas with your peers in
going to be far different in a few years than vehicle to the right consumer at the optimal networking sessions and seeing the latest solu-
it is today. We’re talking maybe two or three time, to the right device. I know it’s an old tions will only get your creative juices going.
years from now. myth we’ve talked about for years, but we I hear constantly from dealers how they’ve
Developments are happening at a break- really will be able to get the right information picked up an idea at the Digital Dealer
neck pace. to the right people at the right time. Conference, took it back to their store and
Comcast is acquiring NBC Universal in We won’t be going online. Rather, we’ll be improved upon it.
the next several months – if the government online all the time. We’ll be connected on the Additionally, this magazine is filled with
allows the deal to happen. A cable provider grid 24/7, just like breathing. ideas and best practices that can help you.
owning a network? That deal alone will open It’s already happening because of Facebook The next several years are going to be excit-
the floodgates to numerous changes in how and Twitter. Many of you tweeted live updates ing. Some of you are going to design new
we consume media. It could mean the end from the last two Digital Dealer Conferences solutions or practices that will revolutionize
of network television as we know it. and Expositions. the industry. Some of you will make more
Comcast might have another deal up its There are dealers who have created social money than you’ve ever dreamed of.
sleeve. Rumors are that it has been in talks media management positions in their stores. I believe the next few years are going to be
with a pretty big company in the automotive These are people who are responsible for the golden age of automotive retail. It’s time
space. That one could break sometime this building a brand for the dealership on to embrace it.
year, and it would be a blockbuster if it does. Facebook, Twitter and other applications.
Meanwhile, Google recently launched its Some of you, though, have banned your
Android phone, and with it, several mind bog- employees from creating Facebook pages out
gling applications. Things Gene Roddenberry of fear of what they may say. It’s the same
of Star Trek fame never envisioned. mentality that proclaimed the Internet was Cliff Banks
So what does watching a football game live a passing phase. You have every right to be Vice President and
on my phone have to do with selling cars? concerned and careful, and even provide Editorial Director
DD 8 January 2010 DigitalDealer-magazine.com
11. List It
Like You Mean It!
SEO Vehicle Display Pages
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content-rich, Search Engine Optimized (SEO) micro-website.
Dynamic, dealer inventory landing pages incorporate search
engine aggressive technology, so more buyers see your Leveraging Inventory
inventory and nd the car they’re looking for.
To Drive Sales
Video Online
Visit
HomeNet’s high quality Video Online can turn static
site-based ads intodynamic visual ads that generate
HomeNet
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877-738-3313
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12. D IGITAL Dealer INTERNET SALES
Phil Sura
The Colonization of Retail
Are the manufacturers attempting to use colonization as a means of
controlling the dealer?
T
he relationship between the manufac- failed with the retail dealer invasion but From a facilities perspective, the dealer lost
turer and the dealer has always been are they attempting to use colonization as the ability to have a building with his/her
a complicated one. Both sides play a a means of taking over and should this be a own personality years ago. Dealers have been
critical role in the partnership. Let’s define concern for retailers? Consider the transition required to build larger or improved structures
the most basic responsibilities. The manufac- over the past 15 years. In the past, retailers on prime acreage or lose the support from the
turer builds the car. The manufacturer is then had control of the dealer brand. The retailer manufacturer. Dealers who wanted the right
responsible for casting a national marketing was able to influence the type of advertising, mix and proper allocation of new inventory,
vision for the brand (Tier I advertising). The amount of money being spent in advertising simply complied with the demands of the
dealer is responsible for selling the car, provid- and the actual message being projected in OEM by investing millions into buildings.
ing service and marketing the brand on a local the local market. Dealers could also choose As profits were shrinking, dealers were pushed
level. Both share in determining how to use if they wanted to be focused on gross average into large magnificent structures worthy of
the Tier II ad dollars. There has been a shift or volume. Galpin Ford, as an example, may being in Architectural Digest. As I have trav-
with some companies like General Motors, elect to give up gross income to maintain its elled to other parts of the world, the concept
for example, to allow a higher investment in status of being the largest Ford dealer in the of the dealer in a $50 million facility with
a digital focus. country. Galpin has the right to market its 1,000 cars in stock doesn’t exist. I know that
Some dealers in the past have been guilty operation as a volume leader. Co-op dollars at least some dealers would gladly give up their
of believing that they could do a better job started to change some of this with the major- new facilities in exchange for their old rent
of advertising the cars, across all tiers. Some ity of the dealers. Dealers who wanted to factor from 10 years ago if they could. Some
dealers have also believed that they could receive additional advertising dollars from the of this was brought on by the dealers who
build a better car if given the opportunity. manufacturer had to follow a specific formula. refused to conform to minimum standards,
An example was the Penske run at Saturn. The dealer ads had to have certain colors and which would clearly affect sales but did the
The manufacturers in the past have tried to font size and include an approved message. expectations go too far?
show that they were better at retailing cars. Then tiered level rebates were introduced. The concept of keeping up with the guy
There have even been full invasions from the The majority of dealers would start each sales across the street has been fueled in part by
manufacturer. An example was the Ford Auto campaign assuming that they would hit the the colonization effect. The goal appeared
Collection in Salt Lake City. Ford purchased top level of sales for the month or quarter. The to vary from manufacturer to manufacturer.
all but two or three dealerships in Salt Lake. financial incentives were too strong to ignore. Some took a McDonald’s approach, not
Ford felt that if they had a monopoly, they As a general manager for a Mazda operation in over the top but all buildings representing
could control prices and drive sales. It may 2003, I can recall the Mazda sales rep explain- a specific brand needed to look the same.
have sounded good on the white board, but ing that if I sold 120 Mazda 6s in two months, The goal was to easily identify the retailer
it didn’t work. I attended a one-day workshop I could make an additional $1,200 per deal. with that specific brand. That was logical.
with the general managers involved with the If I sold 50, I would get $400 and at 49, I Other manufacturers appeared to push lavish
project in Salt Lake City in 2002, just before wouldn’t make anything. With a picture like structures in the community. We could also
Ford abandoned the idea and sold the dealer- this, optimism, greed and lower new car gross spend time discussing the expense require-
ships back to retailers. The project didn’t work averages always follow. Of course, I would sell ments associated with quick lube lanes, light-
because the free market forces were taken out 120 new Mazda 6s, even if I had to buy one ing, signage, restaurants, and theater rooms.
of the equation. The general managers ended myself. The manufacturer had developed an Some of this was also clearly driven by retailers
up fighting each other and they were overly effective tool, which would give the ability for themselves who were interested in projecting
concerned about the remaining independent Detroit, Japan or California to set standards a certain image. Bottom line: some dealers
dealers who did not sell out. Something hap- for the gross average, as well as the models today believe that the facility model required
pened when the balance shifted to one con- being pushed. Only the fools on the retail by some manufacturers in the future will be
trolling force. The competitive edge was lost side elected to pass on these opportunities. We more modest with much smaller inventories
that successful retailers understand. were joining hands with the manufacturers to help reduce expense and make it easier to
As mentioned above, the manufacturers to put up a united fight to gain market share. achieve black ink. The expectation will be to
DD 10 January 2010 DigitalDealer-magazine.com
13. provide a clean and presentable environment, through SEO, SEM, custom video, links to from the past to avoid mistakes and find bal-
but the expectation of size may change. Facebook, and micro sites linked back to the ance with the rights to the dealer web site?
The current trend has been the focus of main site. It is my hope that the dealers will • How do we take the web sites to the next
the dealer’s web site. If we agree that the web have the ability to make choices related to their level but allow the dealer a chance to brand
site is the first impression of the dealership, web sites. I clearly understand that guidelines his or her operation?
this is a major deal. If all web sites are identi- should be implemented. From the manufactur- • How do factors like personality, creativity
cal, how do you brand the identity of the ers’ perspective, some dealers have created an and originality enter into the discussion of
individual operation? How will the retail- embarrassment to the automotive community web sites?
ers compete in the market for the precious after years of screaming, dressing in animal • For the dealer who is capable and willing,
in-market customer? The average consumer costumes or selling the free hotdogs. Other will that dealer be given the opportunity to
visits multiple dealer web sites during the sales dealers have been negligent in keeping their have more latitude with the web site?
process (the number that I continue to hear is sites updated. I still see dealer sites that do not • Should a menu of approved options and
five to six individual sites). If you are one of even enter the basics such as monthly specials. authorized vendors be provided to the retail-
65 competing Nissan dealers in Los Angeles, There is not a major brand in the world ers to allow additional choices?
the web site is the lifeline to survival. If you that allows total independence from the man-
can tell a more compelling story on your web ufacturer. You don’t see the general manager Phil Sura is a VP of the Automotive Division
site than the dealership down the street, you for the local Menards Hardware operation of UnityWorks Media.
will have additional walk-in traffic and more during a 30-second spot taking off his clothes
phone ups (conversion). and telling customers to come in on Saturday If you wish to discuss this article with
Some flexibility is provided by some OEMs, for free hotdogs. In case you have not seen other dealers, or with the author,
but in other cases, the dealers have zero control. this spot, an agency has created an ad where please go to the “Discussion Forums”
If the battle for market share is online, the an actor pretending to be a salesperson takes at www.DigitalDealer-magazine.com
ability to control the look and feel of the web his clothes off to suggest that they are not and enter the “Internet Sales” forum
site should be a major point of discussion. hiding anything from the public. Five key or e-mail him at psura@DigitalDealer-
The web site is a key link to the market. The questions are: magazine.com.
progressive dealers are leveraging their sites • How can dealers and manufacturers learn
The Most Likely
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DigitalDealer-magazine.com January 2010 DD 11
14. D IGITAL Dealer INTERNET SALES
Rob Lange
Managing the Phone Conversation
R
ecently, I wrote an article, “Back to to them – where would you prefer to start?” or risk losing the customer by withholding
Basics,” about the need for salespeople What you will find is that by giving them a information.
to refocus attention on their phone choice and allowing them to control this early Example: “(Customer’s name), in addition to
interactions with customers. After listening to conversation many will openly and comfort- specializing in working with Internet customers,
actual calls, mostly inbound, it was apparent ably engage in conversation. like yourself, and delivering the simplest buying
that this important part of the sales process process, I also have a thorough understanding of
had taken a back seat, costing sales. In my Discovery how to help you enjoy your new vehicle, while
opinion, the inbound call is easier to handle This might be the most important part of saving you money. You’ll get the right car and
than outbound since most customers call after the conversation as you learn the buying moti- should you be considering making monthly
becoming familiar with your web site and online vations of your customer. Clarify the informa- payments I’ll work with you to explore options
inventory. With outbound calls you typically tion they have provided and using open-ended that provide the right terms for you. I recently
speak with customers in varying stages of the questions seek to understand what they hope helped others in a similar situation and they had
shopping process. to accomplish. no idea there was so much flexibility in helping
Handling the phone call properly to secure Example: “I have some basic information them get their car at their budget. I’ll be more
the appointment, leading to the sale, is the here (customer’s name), but so I can better than happy to do the same for you.”
summit of the mountain. There is a big dif- understand could you confirm:
ference between managing the conversation • Review vehicle they have requested informa- Transition to set appointment for
and just being part of one. tion regarding dealership visit
Having a plan and practicing makes it easier • Review possible trade information Of course the desired result is to schedule an
to quickly gain confidence on the phone. I’m • Provide overview of dealership trade pro- appointment for a dealership visit, but provid-
certainly aware that no two calls are alike, cess (if applicable) and how it benefits the ing choices allows the customer to decide and
but again, having a game plan will allow you customer either way you move closer to a sale.
to manage the conversation and engage the • Ask additional open-ended questions Example: “(Customer’s name), to begin
customer. saving you time and money we can move for-
Review and summarize the ward one of two ways:
Start with a warm, professional conversation You can provide me with a bit of detailed
greeting Example: “(Customer’s name), thank you information so I can begin exploring financing
Enthusiasm and personality go a long way in for sharing the information with me. I have options for you.
drawing customers into a conversation. With a much better idea of what you’re hoping to Or we can set aside time for you to visit. I’ll
outbound calls, a good way to “take the curse accomplish. Based on what we discussed, the be waiting for you with specific options or a
off the call” is to introduce yourself, acknowl- way I understand it is…” (Repeat a summary specific car and our time together will provide
edge receipt of their “request for information” of all you learned in the “discovery” process). all the answers so you can decide how you
(calling it a lead immediately implies you will “Is that what we need to accomplish in order might like to proceed.
attempt to sell them, making the customer to move forward?” (Customer’s name), how would you prefer
defensive) and confirm that you responded to to proceed?”
their e-mail. Regardless of whether they have Provide broad, solution-based
seen your e-mail response, it confirms that you information Rob Lange is the national sales training director
acknowledge their preferred method of con- This is where salespeople instinctively tend for Kelley Blue Book.
tact. Next, tell them you are simply following- to sell the car rather than the reason to visit
up to make sure they received your e-mail and the dealership. The likelihood of sale is much If you wish to discuss this article with
you are available to answer questions. higher if the customer visits, of course, there are other dealers, or with the author, please
It’s important you follow-up with this open- exceptions and customers will purchase over go to the “Discussion Forums” at www.
ended question: the phone. Your best bet is to provide broad DigitalDealer-magazine.com and enter
“Some of my customers prefer to tell me options. Again, there will always be excep- the “Internet Sales” forum or e-mail him
what they hope to accomplish, others prefer to tions for the customers who know exactly what at rlange@DigitalDealer-magazine.com.
have me share how we can be of great benefit they want and in these cases you must deliver
DD 12 January 2010 DigitalDealer-magazine.com
16. D IGITAL Dealer INTERNET SALES
Todd Smith
Five Powerful Steps to Chatting
with Shoppers
A
s chat becomes another mainstream b. Specials or rebates and incentives for staff. Set up the system to only allow a chat rep
contact method used on dealership a vehicle? to handle two to three conversations at one
web sites, it will become crucial for c. Price/payments information of the vehicle? time. Build your chat conversation scripts to
dealerships to develop processes to support d. Features and options available on the vehicle? ensure proper handling of each chat. Strive to
this new communication tool. By just submit- e. Service or parts related conversation? build rapport with the shopper before asking
ting a lead or calling a dealership, it is pretty f. General customer service or follow up? for information or to take any actions.
easy to learn which dealerships get “process” Understanding that the chat conversation In conclusion, proactive chat is becoming
as a tool and which stores don’t. is going to go down one of these six paths a fast and powerful way to connect with
The first impression and interaction with a lays out an easy structure for you to develop your shoppers and to take the online sales
dealership online, on the phone or anywhere, a chat script around each conversation path. experience to a new level. Technology now
is such a critical time in the sales process, but 3. Technology: As much as vendors want you offers you a way to not only instantly con-
it is still overlooked by many dealerships. In to believe all chat technology is the same, this nect with the shoppers while they are on
this article we are going to focus on leveraging is like saying every person on Earth is the same your web site, but you can also co-browse
chat to actively engage your shoppers while because we are all human. There are many with the shoppers to give them a complete
creating a great first impression that you can differences in technologies and it is best to rich media experience.
carry into your showroom. educate yourself before you decide what is Dealerships that are leveraging proactive
Here are the five major points that need best for you and your dealership’s needs. A chat correctly are creating a wow factor and
to be addressed: little extra money can afford you an incredible experience for shoppers. Chat offers your
1. Speed: Have you ever picked up the phone amount of functionality. customers access to instant answers instead of
on the last ring just to have an angry cus- 4. Measurement/conversion: Tracking and forcing them through the e-mail gauntlet or
tomer or no customer on the other end? Speed measuring your online chats is a great way requiring the shopper to change the medium
online is a cornerstone of success. We set the to benchmark your performance and help to and call the dealership, in which over 80% of
benchmark at five seconds or less to grab and create a continuous improvement process for salespeople have to call the shopper back with
online chat to deliver our opening message. your dealership online. Statistics that should the information that they requested during
The faster you can engage the shopper with be measured are as follows: the phone call. Chat allows you to deliver the
chat the more effective your conversation will a. How many chats per month as a percentage right information at just the right time, and
become. Dedicate multiple people at your of unique visitors? to create a great first impression for you and
dealership to ensure all hours of the day are b. How many chats converted to a name, the dealership.
being covered to never miss an opportunity e-mail address, or phone number lead by
to chat with a shopper. chat rep? Todd Smith is the president & CEO of
2. Conversational scripts: You have a writ- c. How many chats set an appointment ActivEngage, Inc. He has over 18 years of
ten sales process for showroom ups and I am during the chat conversation by chat rep? retail automotive experience coupled with a
sure you have a phone script lying around d. Average length of chat conversation by rep? passion for technology, which has helped him
the dealership somewhere. If you are suc- e. Average wait time for shopper before they to create real world processes and solutions for
cessful online you probably have a series of were engaged in chat? dealership clients.
e-mail templates too. With chat you need a f. How many missed chats during the month?
script just the same, because after analyzing g. How many chats converted to a sale at If you wish to discuss this article with
over 500,000 chat conversations over the past the dealership? other dealers, or with the author, please
couple of months, a pattern has emerged. 5. Management: Chatting at the dealership go to the “Discussion Forums” at www.
Conversation during a chat take one of the requires discipline and management oversight DigitalDealer-magazine.com and enter
following six paths: to measure and improve performance. Set the “Internet Sales” forum or e-mail him
a. Availability of a specific vehicle? realistic goals and coverage hours for your at tsmith@DigitalDealer-magazine.com.
DD 14 January 2010 DigitalDealer-magazine.com
17.
18. D IGITAL Dealer INTERNET SALES
George Nenni
Is your Web Site Giving Car Shoppers
What They are Looking For?
W “Behavioral targeting
hen shoppers visit your web site, and their success with behavioral targeting.
are they greeted with an experi- The company’s goal was to drive more qual-
ence that is tailor-made to them? ified traffic to the web site so they could works extremely well
You already know that in order to be reach out to people who were looking to
successful, you need to arm yourself with buy specific makes and models of cars. They at the dealership level
dynamic web site design, strong search engine used behavioral data to target their online
optimization campaigns and a slate of tools presence to these consumers and saw a sig- because online car
to help you reach out to car shoppers. Take it nificant increase in the click through rates
to the next level by engaging in some behav- of their online ads and, in turn, more traffic shoppers typically visit
ioral targeting (also referred to as “behavioral to their web site. dealership web sites
marketing”). Behavioral targeting works extremely well
Behavioral targeting is a marketing method at the dealership level because online car specifically to view
that targets consumers based on their behavior shoppers typically visit dealership web sites
on web sites. The technology behind behav- specifically to view available inventory, mean- available inventory…”
ioral targeting looks at what content your site’s ing you will be able to see which cars attract
—George Nenni
visitors are viewing, tracks what they’re doing the most shoppers.
on your web site, and makes adjustments to Since eMarketer’s reports said online
the content to suit the shoppers’ interests. shoppers don’t mind being tracked as long
A good example of behavioral targeting as they’re getting something in return, the methods, and it has steadily become a more
would be the ads that appear on the right ideal way to start your behavioral targeting popular way to target consumers within the
side of Google’s search results pages. When campaigns is to utilize a tool that will follow last few years.
you perform a search in Google, those ads your site visitors’ activities and build a spe- Since its success tends to be stronger in
are relevant to the search terms you used and cial certificate around the vehicles they most more concentrated markets, it is a great mar-
your location. recently viewed. keting avenue to use at the local dealership
Behavioral targeting has become an increas- This type of tool assigns a cookie to each level. By participating in behavioral target-
ingly popular marketing technique in the last shopper to track the user’s activity on your ing, you’ll receive more qualified leads from
few years. In fact, eMarketer found reports web site. The tool then automatically designs a people who are further along in the vehicle
showing that about 70% of Internet users special around the content the visitor recently purchase process.
are interested in seeing targeted online ads. viewed and makes a certificate appear when
Another study said that nearly half would the shopper accesses another part of your site, George Nenni has been with Dominion
rather have ads based on their activity on such as the home page. Enterprises since 1993 and now serves as the vice
web sites in exchange for the ability to view According to a study by ChoiceStream, president and general manager of Dealerskins
free content. 39% of online consumers are more likely to and Dominion Dealer Solutions. He is respon-
A recent JupiterResearch report suggested respond to a coupon that has been tailored sible for Dominion’s web site and inventory
that this type of marketing is often used by to their interests than non-personalized ads. management businesses.
advertisers who have smaller, more focused These customized coupons will grab your
inventories and want to target a specific group shoppers’ attention and make them more If you wish to discuss this article with
of people. That’s why behavioral targeting is interactive with your site. In order to fully cap- other dealers, or with the author, please
an ideal marketing method for the automo- ture their interest, provide a form they can fill go to the “Discussion Forums” at www.
tive industry. out in order to receive additional information. DigitalDealer-magazine.com and enter
JupiterResearch also performed a case Many marketers have accomplished the “Internet Sales” forum or e-mail him
study with a major automotive manufacturer their goals by utilizing behavioral targeting at gnenni@DigitalDealer-magazine.com
DD 16 January 2010 DigitalDealer-magazine.com
20. COVER STORY
Juan Teran
Sales Director
Dewey Automotive Group
DD 18 January 2010 DigitalDealer-magazine.com
21. Juan Teran, the 42-year-old sales director for Dewey Ford and Dewey Dodge Jeep, both located in
rural Ankeny, Iowa, takes his inspiration where he can find it. He freely admits to converting from
a typical “bricks and mortar” car guy to an Internet sales enthusiast after watching his young son
Carlos using his Xbox chat feature to figure out his next move during a fast-moving online game.
He says he knew then that the world had changed and the dealership’s approach to online sales
had to ramp up to meet the challenge. A year of Internet initiatives followed and so did the sales.
Today the Dewey stores’ Internet teams account for 20 percent of overall sales and Teran and his
team are working to increase 2010 sales from 700 to 1,000. We talked with Teran recently about
how they achieved that success and what they plan in the days ahead.
Juan, tell me what first attracted you to Hinds (Internet business manager) and Ford and 7 percent at Dewey Dodge. It
the auto industry. our e-Internet sales managers, Mr. Green, is important to mention that in 2008
After my immigration from Nicaragua in Bruce, David, Andrew, Peter, Jamie, Erin, the number of online sales was only 7
1984 at the age of 16, I finished high school Steph and Sherry. percent. For 2009 the Internet sales team
and enrolled in college the following year. I has been responsible for 20 percent of
worked and went to college at the same time. Give us some background on the company. the overall sales, which translates to 700
With funds running very tight, I answered a Dewey Ford has been in business for over online sales.
car sales ad that seemed promising since it 40 years and has been a pillar of the commu-
offered more income potential than what I nity with a strong reputation for easy dealing How did you manage to improve?
was earning. My intention was to save money and great customer service. The impressive I had an epiphany when I saw my 9-year-
to finish college. As it turned out my educa- thing about Dewey is the fact that there are old son, Carlos, playing his Xbox against
tion is still ongoing in the car business. team members who’ve been with the com- other players around the world. My son was
pany since the beginning. Thanks to every- discussing via chat an attack strategy with
How did you land as sales manager at one’s efforts in sales and service, our parent his friend Patrick and his cousin Scott…all
Dewey Automotive? company, the Ken Garff Automotive Group of them miles away from each other…but
I started selling automobiles in 1987 at out of Utah, was able to expand with the all of them connected on the Internet. The
Hub Chrysler Plymouth South in West acquisition of Dewey Ford in 2007. That’s revelation was this…that if we did not radi-
Allis, Wisconsin. My automotive career also the year I joined Dewey Ford. By August cally change our Internet sales strategy, just
almost came to an end after a couple of 2008 the Dodge Jeep brands were added to like dinosaurs… we would also be extinct.
weeks of wondering how I was to going to the Dewey name and today we sell Chryslers I realized right then, that in the long haul
make a living only on commissions. The as well. we would not survive with brick and mortar
answers came thanks to a Zig Ziglar tape sales initiatives alone, because the world
given to me by my general manager and Was the store using technology smartly today lives, plays, shops and interacts on
Zig’s See You at the Top book, which I when you arrived? the Internet. I shared this realization with
purchased with what I felt were my last I believe technology was being used ade- Dan, our general manager, and we agreed
dollars. After working at Hub South for two quately, but the use of it and the process was that our managers’ buy in was necessary to
years I was recruited by a former manager more BDC style, where leads were handed out change our e-commerce strategy. Together,
to sell cars at Best Ford and Mazda. It was to the sales staff and not directed to a specific we set forth a plan that involved revamping
at Best Ford where I earned the opportunity Internet sales team. our Internet sales process and our brick and
to join the management team. Since then, I mortar culture toward it. We made improve-
have been blessed to have teamed up with Even in this tough market your stores are ments to our web site on a daily basis; we
great partners and mentors in all aspects improving Internet sales. What are your brought in world class Internet trainer
of dealership operations. Today the great- total unit/dollars sales this year versus last? Jennifer Suzuki with e-Dealer Solutions to
est blessing is the sales and management What portion is from online sales? share new ideas with our dedicated Internet
team we have at Dewey Ford and Dewey I am humbled by the effort that every sales managers; we asked our marketing part-
Dodge Chrysler Jeep, which include the team member has put forth to make this a ners at Carrera and Fiorini to host a new web
warriors, as we called them, of the brick and successful year. It gives me great joy to say site and to manage SEO and SEM. From
mortar sales operation – my colleague and that as a team we will have delivered over the onset, even though we stare at cornfields
friend Dan Boettcher (general manager), 3,500 vehicles this year. In comparison to from our dealerships, we are all committed
Chris Glen (Internet sales director) Rob last year, sales are up 8 percent at Dewey to a strategy of continuous improvement to
DigitalDealer-magazine.com January 2010 DD 19
22. ensure our success. The formula was simple:
the right people plus a new process equaled
desired results.
Are you doing anything else to build on
your success?
2009 was a great year and we are excited
about the opportunities that 2010 will bring.
We know that our Internet team will help us
increase sales this year. Our goal is to sell 1,000
vehicles just via the Internet. We know that
in order to accomplish that goal, we must
embrace change so that we can excel as market
leaders. As we speak, we are changing, start-
ing with a series of marketing initiatives at
the regional level. In addition, we are also
visiting with our partners to set in motion
the initiatives that will help us serve and have
a larger national market reach.
“Today the greatest blessing is the sales and management team
we have, which include the warriors, as we called them, of the
How critical are Internet sales at Dewey? brick and mortar sales operation,” says Teran.
The importance of what the Internet sales
department means at Dewey can be sum- keywords for SEM? What’s the marketing mix between tradi-
marized in a simple statement… they are as We are finding key phrases by examining tional and online?
essential as oxygen...they are the difference weblogs for converting key words, by using In 2009, the mix was 70 percent tradi-
that makes us profitable. a little intuition, which sometimes goes a tional and 30 percent online. This data is
long way, and by having discussions with our helping us realize that the dollars spent to
What’s the process for receiving and dis- marketing partners at Carrera. Our experience generate a sales and overall Internet pres-
tributing Internet leads? and their expertise has been a good mix. For ence give us an ROI with components that
All of our Internet leads go through a round phrases that do not rank high organically, we are easier to track and manage…which begs
robin process to our dedicated Internet sales then use PPC. the question… do we flip the ratios? For
managers. a brick and mortar car guy this could be
How do you use e-mail campaigns? a bit frightening, but in this fast chang-
Do you have one or several web sites? We e-mail campaigns throughout the ing environment, it has become a serious
We have four web sites: DeweyFord. month, which mirror the messages we have consideration.
com, DeweyDodgeChryslerJeep.com, on traditional media. We utilize our CRM for
DeweyDodgeJeep.net. We also have client collection of specific target vehicles we Are you big in the social networking arena?
DeweyTube.com, which is a hybrid between need for our used car departments. We target This is an area that we encourage our entire
a home page for the other web sites and a clients in equity, we send service reminders sales team to utilize from the comfort of their
social network site. and we also keep in touch with our customers homes. We are careful, however, because of
with e-newsletters. We also borrow the idea the sensitive contents that can be viewed or
What lead-generation tools work best on of sending “teasers” to help us build excite- the language that sometimes gets posted on
your sites? ment before a new product is coming out or those sites. We understand the exponential
We have a high closing ratio with our credit before special events. It is very rewarding to marketing power it has, nevertheless, we
applications and we also do very well with our see customers show up with their invitations thread cautiously in those waters.
Blackbook appraisal tool. and seeing them take delivery of their new or
pre-owned vehicles and thanking us for the What new technology trends are you
How do you use SEO? hassle-free experience. spotting?
Our partners at Carrera and Fiorini help Mobile web sites, software to automati-
us with SEO so that we can drive traffic and What about your marketing expenses? Are cally post updates and load content to social
generate leads to our web sites by ranking they increasing or decreasing? media networks, and software to host dealer’s
high in the search engines for phrases that This year has been about practicing extreme inventory on the social networks might be
surfers use when shopping for cars, service, expense control discipline. Our Internet sales the next big idea. In conversing with our
parts, etc. team has had a tremendous impact in help- partners, we wonder about the future battle
ing us reduce expenses while gaining sales in of the portals…who will win? Google or
How are you finding those ‘better’ comparison to last year. social networks?
DD 20 January 2010 DigitalDealer-magazine.com
23. I do believe that technology is important, but
it’s like the newest set of irons or the newest
and biggest driver in golf, both supposed to
make you a better golfer when the reality is
that if the basics of the swing are messy, the
score at the end of the round will be just
as messy and the game not enjoyable. That
said, I believe that it is our people and our
teamwork, coupled with our Internet sales
process, that has delivered and will continue
to deliver great results, as long as we always
go the extra mile for our customers and for
each other.
What’s your typical work week like and
what do you do to relax outside of work?
For most of our team, we get to see great
“I believe that it is our people and our teamwork, coupled with our Internet sales sunrises and great moonlights over cornfields
process, that has delivered and will continue to deliver great results,” says Teran. from the windows of our showroom on a daily
basis. We reward ourselves by spending time
with the people we love and motivate us to
How does the group manage pre-owned and Chrysler goals, as well as ours, is to have
work hard…our families. For me to relax it’s
inventory? a 60-day inventory across the board…which
as simple as a watching sports, listening to an
We do not stress new over pre-owned sales. we all know…takes a great deal of work...but
up-and-coming musician play the piano, or a
Ideally, we would like to see a one-to-one it is becoming the paramount discipline to
game of chess... and for all of it, I am thankful
ratio. The hard data indicates a 60 percent remain profitable.
to my inspiration and the greatest love of my
used and 40 percent new ratio. Our inventory
life, my son Carlos.
policy is 60 days for used vehicles and there What else – technology or sales philosophy
have been months that we have managed the – sets you apart as a dealer group?
same turn in new Fords. Today both Ford I do not attribute our success to technology. jteran@digitaldealer-magazine.com
DEALERSHIP PARTNERS IN PROFIT:
Dealership name: DMS provider: List any third party
Dewey Ford/Dodge/Chrysler/Jeep Reynolds & Reynolds ites where inventory
is posted:
Web site URLs: BDC software/vendor: AutoTrader.com
Dewey Ford.com Reynolds & Reynolds Cars.com
DeweyDodgeJeep.com CarSoup
DeweyDodgeJeep.net CRM program:
DeweyTube.com Reynolds & Reynolds Vehicle history reports:
Experian Auto Check
Web site provider/hosting: Vehicle video vendors:
Reynolds & Reynolds Dealer Specialties Other vendors not
Dealer.com listed above:
Carrera & Fiorini Vehicle valuation tools: E-Dealer Solutions
BlackBook
Web site vehicle photos Manheim Market Report
taken by:
Dealer Specialties Online lead generators
Dewey Internet Team Members not including the OEM
sources:
Vehicle Marketing: Cars.com
Dealer Specialties
Dealer.com
DigitalDealer-magazine.com January 2010 DD 21
