Comments on: Dealer Website Trade-in Tools; is it KBB Leaddriver OR Black Book Online?

By: Gary May (IM@CS)

Gary May (IM@CS) — Wed, 24 Dec 2008 04:48:51 +0000

Jeff,

Not to circumvent your initial question/intent for discussion, but dealers need to own the lead rather than just provide a value. That is why I recommend GetAutoAppraise to dealerships. Aside from that, GAP allows you to admin the tool, trending with the market for values, separate truck and car, allow you to cook in coupons/incentives that are unique to the store and more.

vAuto and FirstLook seem to augment any value tool very well (as pointed out above by a number of comments) but I believe the primary purpose of your question was to look at the effectiveness of a B-to-C tool rather than B-to-B.

GetAutoAppraise has my vote. Keep up the great work on DealerRefresh.

By: Edward Shaffer

Edward Shaffer — Sun, 21 Dec 2008 14:31:57 +0000

Coming into this conversation a little late, but had to put in my 2 cents…

We started with KBB Lead Driver and switched to BB Activator about two months later. I never discuss closing ratios without knowing the scrubbing method, but we are very happy with the BB results in our stores.

Logistically, BB is superior in delivering leads to our system efficiently…i.e. New Leads and Used Leads to different inboxes…KBB did not have a way to distinguish between the two.

The BB training and follow up system is far superior, IMHO. They have visited several times, provided email templates and phone scripts and KBB provided no supprt whatsoever.

From a consumer standpoint, having a trade evaluation tool that provides immediate, automatic values is vastly superior to a “Value My Trade” form on the site…same as having real time online appointment scheduling for service is superior to having the customer send in a “I hope I can get this appointment” email and have to wait for a reply.

As to the discussion around the name recognition…our pre-owned managers use Black Book to establish trade value…having the same information online offers both relevancy and transparency – both essential building blocks of relationship selling. It matters not that the consumer is more familiar with the KBB brand name.

Thanks to all for your comments and contributions – I have several really good ideas percolating after reading the comment stream – that’s why I love Dealer Refresh!

By: Pete

Pete — Sun, 21 Dec 2008 02:13:38 +0000

All great tools but real time trading will be the next innovation on the dealer level.

It all starts somewhere but if someone where to ask you what steam locomotive train your traveling with or did you get my Western Union telegraph…you would probably give a big huh?

I personally believe that they are both are coming to an end as lead generation applications. Cost cutting or combined attrition.

I thought I heard that KBB is going to have more current valuations available but the fact is that they are not an accurate measuring tool in real time. Nobody buys a week old paper and submits an order for a stock purchase based on those historical figures. Zero use on a dealer level breakin down the p and l of a deal because I know of none that has made a deal based solely on using KBB or like kind without checking auctions.

You have to say what they are. A “I don’t want to be screwed over by the dealer” tools said the consumer to themselves. How long can that business model survive.

Also, the unfortunate thing is that a great amount of money is being structured to bail out on the manufacturer level( I support it ) but not to incubate innovation on the provider level,the dealers themselves.

The factories need to create their own system of KBB and BB in to a nationwide network to wholesale trade their own products.

I am going to end here, too many thoughts and I have to get out downtown in the Windy City to do some Christmas shopping or it’s a handshake with a bow on it and I’ll have some really pissed off nephews and nieces not to mention my girl.

Seasons Greetings to all and D-R.

By: Stan Sher

Stan Sher — Sat, 20 Dec 2008 18:12:48 +0000

I never really had much experience using these tools. To me it is a third party lead source. This is great supplement your leads.

By: Drew Lancashire

Drew Lancashire — Sat, 20 Dec 2008 00:11:37 +0000

Are we talking about appraisal tools or lead drivers? Used both before but you may want to check out another one by vAuto. Their Appraisal tool seems to work with an awful lot of relevant pricing data.

By: Mike Elmore

Mike Elmore — Fri, 19 Dec 2008 23:03:20 +0000

I’ve been using KBB’s “Lead Driver” for almost 2 years now and have had great success with the leads it has generated and now with the “true” trade-in value’s being updated weekly it has really put a qualifier on our deal process. Out here in the West, I’m not convenienced Black Book is accepted as KBB, but all in all, Lead Driver has more than paid for itself and if I had a wish to enhance the feature, it would be to have the exterior color and VIN of the trade part of the required fields.

By: Rob

Rob — Fri, 19 Dec 2008 20:34:30 +0000

Forgive the rant I feel coming on but at this point in the comments I think it will be relevant on several fronts.
Delivering a trade value to a customer through one of these tools is a means to an end…..the end result being to acquire contact information from someone who is very interested in purchasing a car. As Jay said earlier, it’s about establishing credibility through transparency (the new buzz word) as one who is willing to provide the information necessary to assist the customer in making a comfortable, educated decision. These tools are customizable allowing the dealership to capture as much or as little information as they desire prior to providing the value number. Some gear towards requiring as much information as possible thinking they want to acquire the “serious customer” who is willing to provide detailed information. Others, me included, lean towards requiring less information prior to delivering the value making it easier for the customer to move forward, gaining the greatest number of opportunities and letting salesmanship do the rest. After all, that is the intent of the product, not to just deliver a value, but to open the door to conversation with a new customer. The big thing to remember is although the customer has received a value that is not where you want your conversation to begin when following up by phone. If you do, the conversation will invariably end up in a discussion over what the trade allowance will be…and that’s not the point. The point is to establishing trust, confidence and value with the customer…trade allowance portion of the conversation should come much later in the interaction. The objective is to sell a car, not a trade value. The conversation should begin with the benefits of purchasing through your dealership (your Value Proposition)and establishing the wants and needs of the customer with the goal of setting an appt. for the customer to visit the dealership.That’s’ where the greatest chance of success lies, not in trying yo agree over the phone what a trade may be worth.
Let me address the generic trade value form versus a “branded tool”. In my experience the generic trade value form does more harm than good. If the customer perceives the value they have been given was generated by the dealership (and we all know that it never meets their expectations) they then point the finger at the dealership as the one not giving them enough for the trade. It puts the onus on the dealership as the “bad guy” and could possibly cause the customer to be defensive or even resistant to conversation. The values provided by the respected “branded” tools are independent, objective,3rd party values that take the onus off the dealership yet still begin to “mentally condition” the customer as to the real value of the vehicle. It’s much the same as what happens in the dealership. It’s not the value that causes so much trouble. The value is the value (of course taking into consideration regional and resource differences).It’ the presentation of the value to the customer that causes so much trouble. Think about it. In the course of our needs analysis with the customer we discover there is a trade. Once settled on a car and negotiations begin we get detailed trade information to prepare for an appraisal. (A great question to ask after acquiring the information and prior to leaving the your desk is, courtesy of Car Fax and a great word track,: “Oh…by the way ..before my manager runs a CarFax report is there anything else we should know about this vehicle”?. If there is anything else to give up they will rather than risk being embarrassed later. After being given the number by the desk it’s often presented to the customer with something like “ (Customer name ) , based on the selling price of (MSRP or retail pre-owned price here) for your new car, we’re able to allow you ( ACV here ) for your trade leaving just a difference of ( net sales price here ). This again puts the onus back on your dealership as it insinuates that your dealership has determined the trade value when in fact the value was derived by using a combination of resources rather than one person at your dealerships opinion. The insinuation may initiate a bit of an adversarial relationship. Now it’s game on and at some point someone is going to feel as if they have won and someone will feel as if they lost …not a mutually satisfying way to begin a relationship with a new customer.
As mentioned earlier, much can be done to improve the delivery of the trade value information to the customer and the “mental conditioning” all starts as soon as you find the customer is interested in trading in their current vehicle.
I learned these word tracks years ago from Tom Vann of Team Hillsdale Chrysler and have seen them work time and time again to produce great results.
Try this, it works:
Upon becoming aware that there will be a trade …
“(Customer name), we handle trades a bit differently here to allow you the greatest trade allowance. I think you’ll like it. Would you mind if I shared it with you?
“To fully grasp the market value of any vehicle at any given time we rely on 4-5 different sources, one of them being you since you are most familiar. Since I find most of my customers focus is to save time and make a comfortable, educated decision we help do the legwork so you don’t have to”.
“The values we gather come from:
1. You
2. Several independent sources to see who has the most interest
3. Our own valuation expert
4. Trusted 3rd party resources like Kelley Blue Book”. ( instruct them to use the “Rate the Condition “ report on kbb.com and evaluate the car as if they were going to buy it)
“The easiest way is to start by seeing your car and you driving the new one during the evaluation. Based on the total feedback we’re able to find the most that anyone will be willing to pay for a particular vehicle at any given time. Customers appreciate receiving top dollar and the ease of getting it. We find this method to be very fair to all parties since all opinions are considered including yours”.
Now, when the trade value is presented,it is much easier to justify as giving them the “best of all worlds” rather than being held responsible as the bearer of bad news( in most cases since the trade value rarely matches the customer’s expectations).
Sorry about the rant…just thought this would be helpful information to share ..hope you feel the same way!

By: Nick Adams

Nick Adams — Fri, 19 Dec 2008 20:09:26 +0000

Some of the key features to Black Book Activator GPS are these:

Video enhanced.

Black Book gets their information from being in 50+ auctions each week. Physically in the lanes.

These figures are updated DAILY!!! That’s fresh data.

Activatior is used on 26 OEM sites.

Many financial institutions use Black Book as their preferred valuation source.

Activator always gives the consumer a range, not a set figure. That range is rough to average. This sets the consumers expectations at a reasonable level.

With Activator the consumer can actually set an appointment to come into your dealership. Black Book will follow up with a phone call to your store to confirm that you received this appointment.

Black Book also has a follow up system. They will stay in touch with every opportunity on your behalf for 100 days!!! This will help keep these opportunities from falling through the cracks.

Black Book supplies monthly reports to show you the monthly results.

Black Book also offers training and support. Field staff that will visit your store and help train your people, free webinars, online training, available call scripts and e-mail templates for you to use.

Black Book will also show you additional ways of using the product outside of just your website.

You can call Black Book Online at 866.451.6200 and get an appointment with the rep in your area. It’s worth a listen.

By: Andy

Andy — Fri, 19 Dec 2008 19:39:41 +0000

I think the only additional comment I have is the lead generation a trade-in tool provides. The numbers regarding monthly leads from our trade-in tool are similar to those John Hayden experienced… in the short term.

The value we receive from the trade-in tool far outweighs the immediate “benefit” of moving metal over the curb. Yes, moving metal is what we get paid for, but moving the same customer’s vehicles metal over the curb for the rest of their life is what makes our job easier and easier.

The trade-in tool has EXPONENTIALLY helped our dealerships sell to customers that are more than 30 days out from purchasing a vehicle because we can continue marketing to them.

By: Kim Clouse

Kim Clouse — Fri, 19 Dec 2008 18:42:01 +0000

I have been using Blackbook Online as well.
I disabled the avatar but it still works great. I think these are 2 reputable companies with similar products. KBB is the Trusted Source but Blacbook is the little thing the Dealers hide from you if you are a customer. They are both good.