Dealer Principal - October 2007 - (Page 6)

There are a lot of people that are trying to recycle information or think up absurd ideas on how to properly utilize this powerful medium to sell more cars, more profitably and more often. Technology and resources are evolving so fast that as soon as a dealer FINALLY understands that technology, or trains their Internet team on a certain aspect of the job… yes, you guessed it; it’s either obsolete or there is something bigger and better available. Dealer Principals and GMs are constantly being assaulted by vendors trying to close them on some product or service. Face it, in that position they should walk around with a bulls-eye around their neck. I can’t tell you how many times I have either seen with my own eyes or heard stories of Dealers / GMs that bought some new “Internet” technology or resource only to have been disappointed with the results or the effectiveness of the product. There have been more BDCs in the United States that have been shut down, imploded or not been profitable, than have been effective and successful. Lets stop and think about that for a moment. It’s kind of scary. The automotive industry generates billions and billions of dollars and right now. The Internet is the preferred way that people communicate and get information all over the world. 87% of America goes online before they ever step Dealers spend over a half of million dollars a year for their dealership on intrusive advertising. Advertising to people when for the most part, they do not want to be bothered. foot into a dealership. I recently addressed a 20 group in Chicago that was comprised of Lexus dealers and representatives from the manufacturing group. They indicated that their research showed 97% of Lexus prospects go online first before they purchase a vehicle. That is virtually every Lexus customer. All dealers really need to be fully immersed and entrenched in the Internet and reap the benefits it will bring. I want to really hit home with this point: many dealers spend about $50,000 per month in advertisements for their dealership, using what I call intrusive advertising. Meaning that most of that money, 80% or more, is spent on conventional advertising such as print, radio, TV, cable, direct mail, and billboards. Dealers spend over a half million dollars a year for their dealership on intrusive advertising. Advertising to people when for the most part, they do not want to be bothered by it. People don’t drive down the highway to read a dealer’s billboard. People don’t watch the Sopranos on A&E to see a dealership’s commercial. People don’t listen to 97.1 in New York so they can hear an ad from a dealership. I think you get the point. Dealers hope they will grab some listeners in the market for a vehicle. Dealers hope that if they advertise anywhere and everywhere people go to, or at, they might if they are lucky get people interested in their dealership… Does this type of advertising work? Sure it does to some extent, but there are more effective ways to market and advertise your dealership, ways that you can track for 100% accountability and verify ROI. I know that 87-97% of America is going online to: • Check availabilities • Check pricing • Find out about their trade ins • Check credit • Schedule test drives • Compare vehicles • Looking for an easier experience convenience. • They are trying to AVOID car salesman and the traditional experience that they have come to expect from a dealership “ Technology and resources are evolving so fast that as soon as a dealer FINALLY understands that technology, or trains their Internet team on a certain aspect of the job… yes, you guessed it; it’s either obsolete or there is something bigger and better available. www.dealerprincipalmagazine.com “ http://www.dealerprincipalmagazine.com

Table of Contents Feed for the Digital Edition of Dealer Principal - October 2007

Contents Reality Check Cover Story: Car Tango Does Your Service Menu Pass the Mom Test? Your Greatest Asset Your Toll Free Number Could Be Turning Customers Away

Dealer Principal - October 2007

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