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Posts with national auto dealer tag.
Misunderstanding the Misunderstood (A Post-NADA Perspective)

Too often, we mix messages. We misconstrue. We miscount. And most often, decisions based off those actions lead to more of the same. There is a lot of “data” out there: actionable, validated, accurate data, and damaging, paralyzing, inaccurate “data”.

 

Last year IM@CS was fortunate to be involved with a Mercedes-Benz project around lead management and one of the talking points (not from us or our partners) showed the average customer in 2013 submitted a lead to 1.3 dealers. Not only has this been invalidated by at least a half-dozen companies, in speaking with the dealers themselves, the empirical data disputed that. The data. “Data” brought in by (maybe) well-intentioned parties however far from accurate, very far for allowing a proper action plan and light years from having the dealers make sense of it.

 

Too often, the OEMs, and admittedly dealers, are lit up by flashy bids, mesmerizing proposals and the all-too-famous “we also have contracts with Competitor A and Competitor B” line or the notorious “we built the space/were first to launch this” verbal flatulence.

 

Another case in point: Last year General Motors rolled out an initiative for BDC build-out for it’s nearly 4,000 franchises. Good intentions, a little late on the “action bandwagon” (we spoke with GM about his in 2008 and 2009) aimed at mitigating the massive amount of lost sales due to lackluster lead response and follow up (read: all OEMs fall in to this bracket and have subsequently gone at solutions the wrong way). Enter two vendors for those dealers. Yes, two. Two vendors for build out and support of thousands of dealers’ BDCs. Then, the co-op curse, leading most dealers, due to “cost”, to not hire companies that can scale better, are more experienced (in real life, not on paper).

 

It’s time to stop misunderstanding the misunderstood! Who are the misunderstood? The agile, more up-to-date, active, often smaller guys and gals who prove themselves daily, weekly and monthly.  The misunderstood are the companies with great services, not great advertising and magazine cover shots. The misunderstood are the ones who deliver faithfully without contracts or gouging (why would a dealer ever sign a contract for services that must be measured?).

 

There is a prominent Internet/Marketing Director from the Midwest who, a couple months ago, posted on their Facebook page that their group was firing their existing trainer, and looking for a more progressive company that didn’t have an OEM contract. Why? Why? Why? Simply put, the services provided, as do most of the OEMs and the companies they endorse, couldn’t deliver for today’s market regardless of that company’s data!

 

The misunderstood are so titled due to the lack of willingness of dealers to get way from comfortable and, simply put, sell and service more cars. Its not your word tracks, it’s not your phone call scoring. It’s not your trainer that has to repeat him/herself each and every month and bring in nearly-duplicate reports. IF you don’t understand how something works, stops paying for someone to do it. Understand it.. Even if you find a partner to leverage, you’d better understand it.

 

The industry, by and large, still can’t respond to a lead effectively, completely and with a reason to buy in under a day.  We’re starting the 21st year of the Automotive Internet. You don’t need to know ode, you absolutely must understand why having a responsive website is a must. You don’t need to know how Facebook changes their algorithms, you absolutely must understand targeting das and dark posts. You don’t need to how Google leverages directories and local citations to leverage local search, you absolutely must understand how and where to update your information, links and phone numbers.

 

Best Practices: Professional Insight, Powerful Results

 

What’s Not Coming In 2014: The Anti-Prediction

2013 brought us so much change that we thought it would be best to provide you with a non-prediction, non-forecast, non-reflective perspective…just to throw you off (and get a few more reads). Cut to the chase right now? Naw…let's tease you a bit:

So we still live in a world hell-bent on immediate gratification. The perfect report. Flawless analytics. Immediate results. Impeccable product. Amazing customer service. And all for less than last year. Or last week…and our clients' clients want that, too.

Our challenges remain the same as they were over 13 years ago when the Auto Industry beckoned to me, selling cars to customers "over the Internet". Customers want a seamless, enjoyable experience that allows them to receive value, benefit and satisfaction. From consideration to contact to confirmation to courting to contract. We seem to fail at the essential points: reaching then, setting appointments and storing/sorting data.

Better websites and SEO and SEM and social media and reputation management, better products and marketing and incentives all show the glaring deficiencies we have as an industry when it still takes about 24 hours to get back to a "lead", make actual contact less than 40% of the time and sell under 10% (really under 8%) of them…

So our prediction is nothing will change; nothing more than a tick on the needle of progress. Oh sure, more dealers will do a "better job", their OEM and vendor suits will tell them so. Yes, for the most part the pie will shift its slices however it won't grow like it should.

More consolidation of vendors will happen. Manufacturers will continue roll out and/or mandate mediocre programs while not selling more cars or knowing how to actually measure a thing. Some of 2013's stars will fade while others will receive the spotlight. "Of course, that's the cyclical ways of commerce" you say…we say bull hooey.

2014 is the 20th year of the Automotive Internet, however over half of the market is still waking up to their year one. This is not meant to piss on anyone's parade, however it is a wake up call to the still-asleep-at-the-wheel. Those clinging to their manipulated audits while flying the flappy arm blow up man or building-sized animal, swearing that 3,000 people came in with their direct mail piece…

You can buy the new adaptive thingy. Roll out the chat-to-dance app. Boost your presence with the social-speed transmission. Serve mobile burritos to your clients. Then wrap it all up with some pay-per-view ultimate fighting service sauce. Or not change a thing and sell and maintain just about what you did in 2013. Why go through a business existence like this?

We need real education and investment. Not "training" and "cost". Curiosity killed the cat. And fear is the lengthened shadow of ignorance. So what will you do to support success before the next snake oil rep comes in with the "must have" toy or NADA party pass if you sign up?

2014 will not change a thing. Your customers will, if you allow them. Your OEM will not change a thing. Your service manager will, if you allow them. Your inventory will not change a thing. Your new actions will, if you allow them.

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Note: we've been quiet for a long, long time here on our blog. The "experiment" is done and we'll be more active again. So if you'd like to see a subject covered, let us know here, on Twitter, Facebook or by contacting us directly (310) 377-6481 or info at imacsweb.com.

A lot is in store for IM@CS in 2014 and we'd love to have you along for the ride. Not making it to NADA? Set up an assessment meeting with Gary, JD or Evelyn (for our Canadian friends), we are honoring 2013 pricing until January 15…

Thank you for reading (and participating on) our blog as we start year six of doing so for the Automotive Industry's superstars: the dealers.