You’re browsing the latest edition of an automotive dealer based magazine and the headline reads – How we Tripled Our Online Sales or How DealerABC’s Process Helped Sell More Cars. You think to yourself, “oh, this might be a good read”, something from an actual Internet Sales Manager that’s doing the daily grind like we are and not just another article from the CEO of a vendor.

So you’re reading this article and by the time you get to the third paragraph you quickly realize it’s just another one of those bull shit plugs for BZ Results.

Truthfully, I’m getting real tired of this. How many articles can a magazine have that is nothing more then a hidden advertisement for BZ Results? I thought ADP would have help put an end to this crap.

Sorry to voice off like this but I just get tired of it and I think it’s really doing no service to us reading these magazines.

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Sara Maudlin wrote a great article for Dealer Marketing Magazine – “Keeping & Growing The Dealership’s Customer Base”

The article touches on several different avenues of Customer Relations Management. From CRM Vendors, to CRM in the service bay, DMS integration, Process and commitment from upper management.

Towards the end of the article, she goes on to mention the growing use of informal user groups and blogs such as DealerRefesh and MercedesCRM.com. I guess actually I got 2 plugs. Thanks Sara!

It’s a great article if your in the CRM end of the business and we ALL ARE!

Click here to read Sara’s Article

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Lately, reading the dealer magazines has been nothing short of annoying. I swear every article is about Search Engine Marketing (SEM).

I took this quote from an article in the recent issue of Dealer Marketing Magazine, “There’s a reason why so many vendors are actively promoting Search Engine Marketing to dealers – J.D Power and Associates reports that in 2005, 90 percent of all Internet new vehicle shoppers used a search engine.”

I believe there’s another reason it’s so highly promoted; it’s an easy and quick way of playing the dealer out of money. The magazines are shoving search engine marketing down your throat every opportunity they get. I’m NOT saying SEM isn’t important; however, you need to have some understanding of SEM before you get into the game and sign your dealer up with a vendor.

It’s too easy to be sold on search engine marketing if you don’t understand it. I’ll sometimes play dumb when an SEM vendor calls just to hear their pitch. I can’t tell you how many times they use tricks to try and show me how my competition is found when the consumer does a search with our dealer name and town in it.

Many of these vendors will assure you they are going to get you top placement in the Search Engine results (in the paid listings of course). You should be aware, though, that showing up at the top of the paid listing does not result in higher conversion on your website. It might help your CTR (click-through rate) but that doesn’t mean you are getting a targeted audience. An SEM vendor can quickly blow through your ad budget by spending $2.00-$3.00 or even more per click to get you top placement. But again, are you targeting the right customer; and even more, are you targeting the customer that is in the right phase of their purchasing process? Many people click on the first thing they see regardless of whether or not it’s relevant. Or they think that if it’s at the top it must be what they are looking for. A large majority of consumers using Search Engines don’t know how they work nor do they know the difference between natural and paid placement. The next time your parents are on Google or Yahoo, ask them which ads are paid and which ones are free. I bet you get the deer in the headlights look!

SO, before you sign up with a vendor, here are some very important elements I think you should consider before choosing a search engine marketing vendor for your dealership.

1.  Which other local or competitive dealers are using the same vendor?
You might want to be careful here. If you’re using the same vendor that your competition is using, this could give that vendor the ability to drive up the Cost Per Click for some generic keywords. I have also seen some vendors use the same descriptive text for two different dealers.

2.   What is the message/copy they are using in the description area of your ad?
This copy is just as important as the page on which you are landing your consumer and the message needs to be consistent with the landing page. If your ad reads “Price Quote on a 2006 Mercedes C230 Sport Sedan,” I recommend landing that customer on a Quick Quote form for a Mercedes C230, not the Home page. If you decide to use a company that another dealer in your area is using, be sure they don’t use the same copy in your ads that they are using in the other dealers’ ads.

3.  Where are they sending your consumer traffic? Are they sending all of your customers to the Home Page, specific pages within your site or do they provide you with exclusive landing pages?
If you’re a customer looking for a Honda Accord V6, and you click on an ad for Honda Accord, would you rather be taken to a dealer’s Home Page or a page that has relevant information regarding the Honda Accord, such as Honda Accord inventory and/or a Get More Information or Pricing? Statistics show that landing your customer on a page for the specific content they are searching for will result in higher conversion.

4.  Are the pages to which your vendors are sending your consumers converting (are the consumers filling out a contact form or calling the phone number on that page)?
If your pages are not converting, this could mean several things. To list a few;
1. You’re not targeting the right audience with your ads.
2. Your page is not relevant to the ad or to what the customer is searching for.
3. The page on which you are landing your customers is not built for effective conversion.

5.   If the vendor builds specific landing pages, do they “Brand” your dealer in the page or are they making your dealer anonymous?
I believe in branding your dealer on your landing pages. If you’re going to land your customers on anonymous pages (not knowing they are dealing directly with your dealer), I have found that you’re almost forced to use some type of price persuasive call to action to convince your customer to give up their information, making your page and dealer all about price and not having the opportunity to make some money (this is what the lead providers do for us). This leads to number 6.

6.  What is the overall message or call to action they are using to persuade the consumer to give up their information?
Is price your primary focus? Maybe you’re a volume dealer and it doesn’t matter. But maybe you’re a dealer that still likes to make some profit on the front end and you want to convey a different message other than price to persuade the consumer to deal and buy from you. Price Quote is the easy way; why do you think all the 3rd party lead companies use this form of call to action? We all know, though, “Price Quote” does not always provide the highest sales conversion!

7.  Will your website vendor work with the SEM vendor you’re choosing? – Very Important!!
Some websites do not have the ability to place the necessary code in your web pages for tracking and analytics purposes. Ask your potential vendor about the difficulty of adding their tracking code to your website.

8.    Does your vendor provide statistical reports?
If your vendor cannot produce reports for you…look elsewhere. Here are a few things you want to look for;

• CTR (Click through rate) for every Ad Listing and the text that is being used in that ad (the title and description).
• Position of your ad when it was clicked on and if a conversion took place
• What you are spending per click for each keyword and keyword phrase
• Conversion rates for each keyword or phrase
• Day of the week click. Are you customers clicking more during the weekend or the weekdays? Optimize your budget accordingly.
• A list of other dealers who are showing up for the same keywords.

I have had vendors in the past who didn’t want share this information with me because they were afraid that I would use the keywords that they had “optimized” for my dealer and learn how to do it myself. Whatever. I dropped them like a brick. (I’ll keep that vendor’s name to myself.)

So be careful before signing up with an SEO vendor. Do your homework so you can hold them accountable and be sure to get your reports on a monthly basis.

Sign up with a vendor that is going to work WITH you and not just for you. And get involved! You wouldn’t send that $5K newspaper ad to the printers without approving it would you?

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Could you tell me about Dealix? What do you like about them? What do you not like about them? You say good things about AutoUSA. Are there others you like? And why? Thank you for being there for us buddy!

-M Curry

M. Curry,

Thanks for your feedback. I often wonder how many people are out there visiting my site. So when I get an email from someone such as yourself, I know what I have here is helping others, and that’s what is all about.

I don’t endorse ANY 3rd party lead vendors. I think you need to test them all to see which ones work best for your dealership. I have found that demographics, the make of cars you’re selling and your cliental can have a huge effect on which 3rd party lead vendors can send you the most qualified customers.

For example; I was at a Subaru dealer and was buying leads from Jumpstart. We were closing an average 20% of the leads each month. So when I accepted the position here at the Benz dealer, I brought Jumpstart on board right away. I was really disappointed to fine that the quality of leads I was now getting from Jumpstart were nowhere near what I was getting for the Subaru dealer.

One thing you have to do before you can blame a 3rd Party lead vendor is to be honest with yourself; are you maximizing every lead? Are you calling that customer as soon as the lead comes in? Are you making the number of phone calls and emails it takes to get the customer to interact with you? You do have to be fair if you’re going to hold the vendor liable.

Something else to consider; are you not only tracking the cost per lead, cost per sale but also the overall ROI of that lead source. Maybe your only closing 5-6% of a vendors leads but you’re getting a higher average gross from that customer.

Returning to your question, “Could you tell me about Dealix”. I’m sure you are aware that Dealix is now owned by The Cobalt Group and they do more in-house SEO then the other vendor. They have several sites (invoicedealers.com) they use to generate leads. One that is strong in the search engines right now is their www.dealernet.com. If you scroll to the bottom of the homepage you will see it’s owned by The Cobalt Group. Dealernet.com is doing what many sites are, converting 1 consumer into several leads by funneling the customer into a process to get a “price quote” for more then one vehicle (and sometimes as many as 6, automotive.com is guilty of this). You can see evidence of this in the photo below.

Another irritating factor, these websites encourage the customer to apply for financing, extended warranties and insurance; taking away the dealers opportunity to make money in the F&I department.

Something that I have tried to do in the past, but with no luck, before signing up with a lead vendor, ask to get a copy of each and every website they are buying their leads from. Many of these lead vendors are buying leads from:

• carpricesecrets.com (a personal favorite)
• carsbelowinvoice.com
• whypaysticker.com
• newcarinsider
• localcarprices.com

and several other websites. It’s your decision to decide if you think these websites are producing valuable leads. For me..No..but again, the demographics for the vehicles I sell can be different then yours. I’m sure these websites produce a decent lead for volume dealers with a good second chance credit department.

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I was thinking about the Dealer Summit I attended last year; particularly about a speaker from one of the larger 3rd Party Lead providers who spoke regarding 3rd Party Leads and how they still have a place in the dealer marketing process. I agree that 3rd Party Leads to do have a place in a dealers marketing process, but I myself have been cutting back on the providers with whom I deal with and have repositioned my budget, distributing it into different avenues in an effort to get more qualified customers.

I remember asking this speaker, “Why will 3rd Party Lead vendors not disclose from WHERE the lead ORIGINATES (except for the occasional Edmunds lead)?”

Did the lead come from Edmunds or KBB?
If so, I know I have an informed customer who is potentially getting quotes from a variety of dealers. The key point here is that the customer is most likely very informed about the product and could be shopping other vehicles as well. What’s the angle I need to work this customer?

Did the lead come from CarPriceSecrets.com or Carsunderinvoice.com?
Now I know I could have a dealer distruster or just a price shopper and I have to change my selling process and how I interact with this customer via email and phone.

Maybe the lead came from Car and Driver or MotorTrend.com?
Now I’m possibly dealing with an enthusiast and again can change the wording in my emails and initial phone conversation, allowing me the advantage in dealing with this customer’s personality.

What about leads from WomenMotorists.com?
Here is another great example of where you could change your follow-up process and how you interact with the customer.

I was told the reason this specific 3rd Party Lead Provider did not disclose this information to the dealer was due to the possibility of the dealer cherry-picking the leads and not giving all of the leads the same attention they deserve. Though I can somewhat agree, I wasn’t thrilled with that answer. Personally, I think one reason is because they don’t want the dealer to see that the majority of their leads are coming from these inferior price-driven websites.

What do you think?

Would it be beneficial to know exactly what websites your leads are originating from?

Post your comments here.

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