12-26-2007, 01:27 AM
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| Junior Member | | Join Date: Dec 2007
Posts: 10
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 1 Web Site is Not Enough for Dealer Success Online
I would like to start this thread by proposing that the Internet be considered as more of an environment than a communications or advertising media in the more conventional sense of a media channel… Think of it this way, if you advertise on the radio, then people have to listen to a radio station to hear your spot. If you advertise on TV, then prospects must be watching TV, in order for your dealership to receive an opportunity. This marketing conundrum situation is the same for newspapers, magazines and outdoor. Well, maybe less so for outdoor advertising… With the Internet, we now have a place where over 75% of car buyers spend far too many hours of their time. A place where over 65% of new car buyers go to look for information that helps them decide what vehicle to buy, and where to get it. It is an environment, with multiple channels and multiple media available for consumer consumption. From 2005 through 2007 I worked for a family owned dealership that asked me to maximize their Internet sourced sales opportunities… In August 2005 the store received about 1,200 Internet Leads from all sources combined. In June, 2006 we received well over 3,000 Internet-originated sales inquiries, and we had over 30,000 unique visitors browse through over 20 web-based properties. In January, 2007 we received over 5,000 Internet based sales opportunities, most of which originated from over 120,000 unique visitors to over 30 web sites controlled by the dealership. All this activity was driven by a single-point Chevrolet dealership in downtown Phoenix, AZ. In March 2007 (my last month at the store) the Courtesy Chevrolet eBusiness Department hit their all time peak sales results with over 400 new and used vehicles sold by the Internet Sales Teams and to appointments set by the Business Development Center (BDC). From August of 2005 through March 2007 we increased the store’s Internet sales by over 200% while increasing Interactive marketing expenses by 40%. Process execution improvements contributed about 30% of the sales increases, but marketing efficiency improvements generated far more sales increases than our improved processes did.. Along the way, we have learned that having a single dealership web site is the equivalent of having a single outdoor billboard and calling it a “campaign”. One dealership web site is simply not adequate enough to support a true online marketing campaign. While growing into this highly effective lead generation “monster”, most of us at Courtesy Chevrolet did not intend to create a strategy that included a wide array of various web sites, micro-sites and landing pages… It just became so apparent that multiple web sites were more efficient and cost effective at producing large volumes of high quality exclusive leads than is possible with a single web site. In some ways this effect reminds me of using a multiple choice closing technique… It is always more effective to ask “which one of these terms and payments better fit into your budget” than it is to show a single monthly payment to a car buyer and say “take it, or leave it”. Let me share with you an experience that illustrates how effective multiple web sites can be from a purely financial perspective. As many people reading this already know, Courtesy Chevrolet has a long and successful relationship with BZ Results, a web site and CRM solutions provider that was acquired by ADP in March 2006. In the Fall of 2005 we were approached by The Cobalt Group and told that we “had to purchase” a GM approved PowerShift web site from them if we wanted to be a GM Certified Internet Dealer. Although that statement turned out to be untrue, what was true is that as a Chevrolet dealer, if we wanted a direct hyperlink from the dealer search results within the Chevrolet.com web site to a dealership web site representing Courtesy Chevrolet, then that site had to be a Cobalt site. Gm would not provide a link from either the GM or Chevrolet web sites unless the dealership purchased a web site from Cobalt. When we asked how much the Cobalt sites were at that time, we got a range o answers, but ended up leveraging our contacts at GM to compel the Cobalt sales representative to sign us up or the minimum GM PowerShift website package at around $375 a month. The GM recommended Cobalt site averages 10 - 20 leads each month and 1 to 3 sales from those leads. This is certainly nothing to brag about, but from a financial perspective it does boil down to an average lead cost of less than $30 each and an average cost per vehicle retailed (PVR) of less than $300 each. Granted, the volume is low, but the concept of having more than one site intrigued us from a cost effectiveness perspective. Since 2005, Courtesy Chevrolet has launched over 40 web sites and micro sites, each focused on specific topics and customer segments. This strategy of developing a portfolio of online properties has proven to be much more cost effective in selling cars than if those same dollars were redirected into buying leads or any other form of advertising. Here’s a few examples: Full Featured Web Sites www.HouseofCourtesy.com www.Courtesyfleet.com www.CourtesyOnBell.com www.CourtesySanDiego.com www.LatinoChevy.com www.Phoenix-Courtesy-Chevrolet.com Micro Sites www.Chevy-Malibu.com www.Chevy-Tahoe.com www.PHXfinance.com www.CaliforniaCorvetteKing.com www.PhoenixChevyImpala.com www.PhoenixChevySilverado.com www.Phoenix-Chevrolet-Dealers.com www.WeBuyChevys.com Ad Campaign Landing Pages www.ChevyPriceQuote.com www.AZCentral-Chevrolet.com www.Autotrader-Phoenix.com www.Tucson-Chevrolet.com www.ChevyRedTagEvent.com www.GM-Employee-Pricing.com www.LifeBeyondBankruptcy.com The bottom line is that creating and launching multiple web sites targeted to specific customer segments, multiple micro sites that are hyper focused on specific models or parts o the buying process and landing pages designed to achieve the highest conversion rates from clicks to phone calls and leads… All of them are a far more effective use of marketing dollars than that same old full page ad in a local newspaper, stale direct (junk) mail campaigns or a series of radio spots. About the Author - Ralph Paglia currently serves as ADP Dealer Services’ National Director of Digital Marketing. He has enjoyed a variety of retail management and eBusiness roles in his automotive sales and marketing career which started in 1981. Ralph started generating emailed auto sales leads by using his CompuServe ISP account and defense contractor Bulletin Board Systems (BBS) in 1986.  |