Best PracticesDealership Marketing

The Future of The Dealership’s Web Presence

Website Predictinon Crystal Ball

When I first joined the auto industry, I was shocked to learn that some dealers had yet to solidify their web presence with a full-featured web site. After all, the Internet is the most utilized research tool in the vehicle purchase process and the easiest way to garner attention toward your vehicles from those who are in the market. Fast forward a few years and we’re now at a point where the vast majority of dealers use a third party website provider to manage their web presence. It was a slowly adopted change that was necessary for the advancement of the industry, but now that all dealers have their own website, what’s the next step?

What will it take to adopt the latest trends and break free from the pack of like- minded web properties?

One Sided Experience

As it stands, the function of the “dealer website” that we’ve all come to know so well is highly one sided. The experience of the vehicle shopper is similar to that of a classified site whereby the content is dominated by specials, promotions, and inventory that the dealer thinks the user will appreciate. We’re guilty of this as well. We tag vehicles as specials that we believe will attract attention in the hopes of generating quality leads, but do users really care what the dealer thinks is important?

Innovation From Netflix

Netflix has an amazing website that tailors the experience to the interests and browsing patterns of each visitor. They do all of this with the help of some fairly robust infrastructure & engineering teams, but the principles remain relevant — give users what they want so they’ll spend more time on your site & come back more frequently to utilize your tool.

Every visit to the Netflix website is different, providing a sense of identity for an individual user that is unmatched on other platforms. Furthermore, Netflix makes use of prediction models to suggest content on the site that will be relevant to an individual user. The more accurate the prediction model, the easier it is for users to find what they’re looking for and the higher the likelihood that they will return in the future.

Application on Dealer Sites

Modern dealer sites are a great tool for taking a selection of inventory and filtering down options to ultimately reach a match that suits the user’s tastes. From a macro perspective though, this process requires a fair amount of work on the user’s behalf before any tangible decision can be made and there is no tool available to bypass this process during a return visit. We can start utilizing modern web technologies to create a new breed of dealer sites – sites that function as more of a smart web app than a standalone classified tool.

Prediction Models

The average dealer does not have the resources available to implement complex prediction algorithms in the same fashion as Netflix. Luckily, there are third party tools and APIs available for developers to utilize these functions without having to invest in the entire infrastructure necessary to predict content. As time goes on, these tools will become increasingly accessible to the forward-thinking dealers – the question is whether or not this is of any priority to website vendors (or dealers for that matter) in the industry and who will make the first move in adopting the technology.

Once implemented, the experience on a dealer site quickly turns toward a user-centered shopping experience similar to that of Amazon where the site is not only a listing of all available inventory, but also a tool for helping the user find what they’re looking for based upon their unique interests.

Favorites

For the first 4 months of 2012, 30% of our web traffic consisted of returning visitors. Many of these visitors will have undoubtedly viewed our inventory and gone through the process of filtering our vehicles multiple times before eventually moving elsewhere. Is it in our best interests to force them through this same monotonous process each time they visit?

User favorites are a current trend being under-utilized in the auto industry. I recently noticed Edmunds.com added a tool for saving vehicles (without requiring registration), but I have yet to see a widespread adoption of this idea across individual dealer sites. When users save vehicles, they have an increased incentive to return to your dealership’s website because they have already shown interest in something and they’ve made it easy to locate. Smart websites like Amazon use this data to offer increased incentives for returning visitors to convert online and increase revenue. With so many dealers being involved in a single shopper’s buying decision, every additional tool counts.

Browsing Activity

Prediction models make use of browsing activity in their algorithms, but when I refer to browsing activity, I’m talking exclusively about tracking the pages that users view via cookies. Keep in mind this doesn’t mean that some webmaster is sitting in a room looking at every single page that you’ve viewed on your computer at 2am. This is merely a method of tracking browsing history in order to create a tool for users to access information that they’ve already seen on your site.

We’re aiming to make the experience on a dealer site as easy and painless as possible, so if I have to go back to a search page and repeatedly input filters to find vehicles, then we’re doing it wrong. Giving users access to vehicles they’ve already viewed is a great way to easily get them back to that vehicle details page to convert and start working with your sales team.

What do you think? Are these features important enough to your dealership/group to implement?

What challenges do we need to overcome as an industry to make it happen?

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    Web Spam Team
  • April 27, 2012
Love your post but please change your bio.
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    DealerPeak
  • April 27, 2012
As a Website / CRM vendor I am very interested to hear feedback on this.  Our website platform has supported these types of "Personalization" features for many years, but we've had limited success in getting dealers excited about this ability.  I suspect it's because there isn't a clear short term ROI that they can sink their teeth into.  Our view is that Personalization is one of the most important aspects to offering a great User Experience on a dealers Website.
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    Kyle Suss
  • April 27, 2012
 @DealerPeak Hello. First question that comes to mind is are you charging extra for these features, or do they come standard with all of your websites?
 
Also something that I believe is important is the target demographic for the website. For a younger audience, these features will soon be a must on a website, but will the 60 year old Chevy Impala buyer care about them? I doubt it.
 
This is the first time I'm hearing of DealerPeak (no insult intended), but I don't see very much in terms of marketing regarding the dealer sites on your own website. I don't want to have to 'request a demo' to see what you offer. Show me why I should get excited about it with well constructed landing pages that appeal to my emotions. Show me photos of the features in use. Show me stats that show how user engagement & time on site increases w/ new tools such as these. 1 website example isn't going to cut it (to get me excited at least).
 
I believe the features themselves are not the only piece to the puzzle -- the implementation is also very important. I notice you have to register to save vehicles on DealerPeak sites (which you don't have to do on Edmunds) and the 'save vehicle' feature is not promoted heavily save for the vehicle detail pages. If you're going to require registration, show me why it's of value to me and promote the tool! I should be seeing a link to "Your Saved Vehicles" on every page of the site in the navigation so I can easily get there on a return visit or so that I know your sites are different if I'm getting there for the first time.
 
Just my .02. Hopefully you found this to be constructive.
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    lgoering
  • April 27, 2012
I have also been a supporter of personalizing the users experience on our group's sites but is it feasible to develop right now with the onset of the "Do Not Track" options being built into all of the major browsers and the W3C, Center For Digital Democracy, Interactive Advertisers Bureau and who knows who else all trying to decide what the correct behavior or response a web site should be to it? 
 
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    Kyle Suss
  • April 27, 2012
 @lgoering Hadn't heard of Do Not Track until now; however, I just read an article that said:
 
"Once finalized, these standards won't be enforced by the W3C. Rather, enforcement would likely involve advertising industry associations, who could require their members to comply with Do Not Track. In addition, any U.S. advertiser that said it complied would be held to account by the FTC, as well as by privacy monitoring organizations, such as TRUSTe--also part of the Tracking Protection working group--and the Better Business Bureau."
 
Doesn't seem like it would really affect a dealership website just yet unless browsers implement something for privacy. If a user opts-out, what exactly would Do Not Track prevent from happening?
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    NetBizCoach
  • April 27, 2012
Nice post Kyle.
 
The key in my mind to getting this kind of tool working as intended would be to allow anonymous user feedback along with extensive A/B testing (which requires the ability to change quickly). Like you mention in your post both dealers and us as vendors have assumed what the customer wants to some degree. Of course there are focus groups and testing involved to come up with these assumptions on the vendor side, but it is within the traditional dealer marketing "box".  
 
To really make a change and evolve the tools we need to take bold steps and let the users honestly tell us what they want.  With this kind of feedback/change loop we may all be surprised as to where the users take us, and it will probably be WAY outside the current "box" we are currently in.
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    lgoering
  • April 27, 2012
 @Kyle Suss  @lgoering From what I understand, the Do Not Track button would prevent the cookies from being stored so there would be no information for your proposed tool to personalize a return visit based up the history from the previous visit(s).  However, at this point, most people do not know about this button existing in their browser settings so unless it becomes more widely known through media coverage, the average user may never use it anyway.  
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    Kyle Suss
  • April 27, 2012
 @lgoering Gotcha. Yeah, I feel like it would have to be more well known to gain traction. That being said, I know a lot of people value their online privacy, so we shall see how this pans out.
 
It is possible to customize site content based upon whether or not a session cookie exists though. So theoretically, these tools can be turned on/off with ease. I don't really see it being an issue.
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    Kyle Suss
  • April 27, 2012
 @NetBizCoach Thanks, Mike. I tried to avoid implying that these tools were the responsibility of the vendors after our previous conversation. I understand the vendor business model is to appeal to dealer wants & expectations, so I think it's important to only offer these items if they are tools that dealers request.
 
We ran some multivariate testing on our website a while back regarding calls to action on our vehicle detail pages. I believe I may have chosen too many variations, but I found that we don't get enough conversions to generate a statistically significant winner in a reasonable amount of time. I think the data you suggest would be much easier to gather if it were done by a vendor with access to a portfolio of dealer sites to test. But then they probably wouldn't want to just hand it over, now would they ;)
 
I agree though -- let's have the users tell us what they want. I imagine different markets will yield different results as well. I'd like to see dealer sites turn into more of a smart 'web app' than an online classified tool, but who cares what I think! Let's ask the people that matter.
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  • M
  • April 27, 2012
Kyle, great post.  I come from a varied background of B2B and major retail B2C, so I get the perspective from both sides.  The "online" experience is all about personalization and personal choice.  We're a small company trying to push through in the auto dealership world, and the tools we produce are all about making the web and purchase experience more personal.  But hand and hand with that is the need of the dealer to understand that a two-way conversation is so much better than a one-way.  It seems the paradigm is still heavily favoring a "push" model albeit on a new communications platform.
 
The cookie issue will hurt re-targeting strategies.  Consumers are wiser to this issue than some would like to believe.  In a proprietary study I worked on for a digital marketing company, consumer who noticed they were being followed immediatly cleared all tracking cookies.  The percentage was over 80%.  But re-targeting and following are still one-way conversations . . .
 
I really appreciate your thinking and understanding that what we do can and should be different than what we had been doing.
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    bwood
  • April 27, 2012
You had mentioned third party tools that can help with website personalization.  Do you have any examples?  I was looking at Reedge.com, they talk about personalized content based on past visits.
 
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    Kyle Suss
  • April 27, 2012
 @bwood I think it really depends on the situation/CMS/etc. In the article, I was referring to something like the Google Prediction API:
 
https://developers.google.com/prediction/
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    JoePistell
  • April 29, 2012
Kyle S!  A brother from a different mother!  We're on the same page and you nailed it!  
 
To expand on you theme,  optimizing a site for lead counts only satisfies the HIPPO. Forget the HIPPO, optimize for the shopper and you'll set your hook deep so they'll keep coming back.
 
WAKE UP HIPPOS!
*Prior to buying from you...
Less than 1% of you buyers sent you a lead 
-vs-
64% of your buyers were at your site a minimum of 3 times
 
More Returning visits = More Sales.
 
Why do we optimize for Leads when filling out a form not that important to the shopper?
#1). Because we can.
#2). Because we're neanderthals in the Internet world.
#3). Because HIPPOs have been paying for ads for generations and can finally SEE ROI (and they want more ROI!)
 
It's time to move our game past lead counts as "the" hall mark of success.
 
 
*http://forum.dealerrefresh.com/f43/uncle-joes-make-over-diary-1683-13.html#post19931
 
We're on the same page Kyle.  You're going to want to watch what I am doing over the next 12 months (you know I'll always be watching you! http://www.suss.net/ ;-)
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    JoePistell
  • April 29, 2012
 @Kyle Suss  At this hour, I am not a fan of Artificial Intelligence (AI) to improve the user experience.  IMO, our sites User Interface (UI) is not satisfying our Users. We need to optimize the User Experience (UX) first, then bring in AI.
 
Example.
I did an audit of chats on my site* and 44% of my site visitors are looking for a "search assistant".  Nearly half of the visitors are looking to create a complex, layered search and can't find the tools needed to make it happen.  This produces a shopper stuck in a cycle of scanning SRPs and trying to avoid clicking into a VDP that may not be relevant. 
 
I've watched HOURS of shoppers using my site (http://www.clicktale.com/) and what you'll see will piss you off and challenge your core beliefs.
 
 
All I am trying to say is that if the shopper can't narrow their choices because the UI blows, then the AI gets bad data and now the AI's success lives or dies on it's ability to parse out bounced VDPs.
 
We're going down the same road Kyle, Keep your eye on where I'm going!!
 
*http://www.dealerrefresh.com/dealership-chat-used-or-abused/
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    terrencegordon
  • April 30, 2012
Kyle, excellent forward-thinking post, and a good debate!   I'm going to disagree slightly with your prediction...on prediction ;)
 
As much as I love to see dealers adopting the newest "real world" technology, sometimes it simply doesn't apply.  Dealer websites and the entire vehicle shopping process is a completely different animal from traditional e-commerce. 
 
Yes, Netflix has amazing AI / UI, but the difference is users come back to the site weekly (maybe even daily) for the purpose of getting something new/different each time.  It is Netflix's duty to deliver content that evolves to my likes/dislikes because that's what I'm coming back there to get.  The more I visit Netflix, the more data they have to predict my behavior. 
 
The vehicle shopping process is not the same. These days most people know what they want before they visit the dealer's website (think ZMOT), but more importantly there isn't enough frequency from the visitor to deliver predictive content.   Just because a shopper looked for a black SUV on Monday doesn't mean she isn't interested in a white sedan on Friday after talking with her husband. And what happens after she buys the car and comes back a month later to book a service appointment?  
 
I think there is room for behaivor-related content, but as long as the vehicle purchase remains "offline", a dealer's website will never be a Neflix...or Amazon...etc. 
 
 
 
 
 
 
 
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    Kyle Suss
  • April 30, 2012
Hi Mark. Great feedback. I look forward to the future of the dealer's web presence and hope to bring some new ideas to the table in the process.
 
The cooke issue is interesting. I wonder if there is some data regarding generation gaps in how people react to cookies. Personally, I appreciate a customized experience and know that many others my age feel the same way. Do older generations feel differently?
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    Kyle Suss
  • April 30, 2012
 @JoePistell By HIPPO you mean "Herbivore Induced Plant Protection Odor" right? ;)
 
Haha had to look that acronym up and there were several choices.
 
Measuring success for an Internet department is a difficult situation as you described. Traditionally, it has been done based upon lead counts & closing ratios -- but what else is important? Like you said, more returning visits = more sales. I know it to be true, as do you. But would a management team feel that their money is being spent wisely if an Internet department focused on getting time on site increased? My guess is that it would only matter if leads increased, and the hope would be to increase leads if time on site increases. However, like you said, most people have no interest in filing out a form.
 
I'll keep my eyes on the used car king as well!
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    Kyle Suss
  • April 30, 2012
 @terrencegordon Hey Terrence. I understand your position. Let me create an example for you.
 
Say Mark comes to my site on Tuesday and is interested in a black sedan. We may not have one that he is interested in. Maybe on Wednesday he talks to his wife and they decide on a white sedan so he comes back to our site. While he still has the option to search for a white sedan when he comes back, what if we presented him with options that are similar to a black sedan that he might not have noticed before? Isn't that fairly relevant to his experience on our site? Maybe he doesn't want those items, but he doesn't have to click them. It's not as if we're taking away from any experience/options that he had previously.
 
What if we just got a new car in stock that is very similar to something Mark has looked at in the past. When he comes back to our site to continue research, wouldn't he want to see that pop up automatically? Would he find that vehicle if we didn't show it to him? Surely we are automating processes here, no?
 
Sometimes we get phone calls from older people that aren't very familiar with the Internet -- they need help searching for cars. How much easier would their experience be if we could help them find a car based upon what they've already looked at?
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    terrencegordon
  • April 30, 2012
 @Kyle Suss  By all means, I am an advocate of making the entire shopping experience easier and more relevant.  I think there are ways to do it (we show recommended vehicles based on their search), and your example above makes perfect sense.
 
I'm a fan of targeting more macro trends. So if 70% of a dealer's shoppers are looking for used cars, and 30% of those are looking for SUV's then the website's inventory search should be prioritized accordingly.  Or if 30% of your Google visits are service-related, then 30% of your homepage should be designated to service. 
 
These are easy fixes and conduits to the next level you speak of.  
Good stuff.
 
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    blogproautomo
  • June 25, 2012
Just finished reading through everyone's comments. I remember reading your post Kyle when it first went up. I was curious to see what others had to say about it and so I kept it flagged in my inbox. Hard to believe that was 2 months ago.
 
Totally with you on the where you believe dealer sites can be taken. A lot of points are mentioned here by others. Joe P brings up not just a valid point but the right point. All the good AI in the world will get us nowhere if the UI doesn't better engage customers.
 
To answer your question, "What challenges do we need to overcome as an industry to make it happen?" I think the first one is to overcome the "cul-de-sac" experience where all you can do is leave or give up your contact info. People need something purposeful to do with a dealer on the web other than "get married".
 
This is where social media comes into play. With the use of sites such as Facebook and Google+ dealers can now interface with customers online in ways that are not possible on dealer websites.
 
As website providers adapt to existing and coming technologies designed to interface with dealers in multiple ways beyond contact info and a purchase transaction, the dealer-customer relationship can continue to expand. For right now, social media is filling that void, and that is ok.
 
Nice topic Kyle. Thank you.
 
ps - I wrote a post that references this one where I talk more about how social media fills the void websites don’t. Feel free to have a look - http://goo.gl/G9hUO
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