Digital Dealer - April 2018 - 31

gross percentage is the best way
I've found at comparing all stores
together side-by-side to measure
how effectively they are operating
the business, no matter what size
the store is. I always measure every
expense as a percentage of gross.
To me, it is obvious that a store
making $3,300 per retail should
be able to spend more than a store
making $2,200 per retail. Beyond
the big-picture metrics, we measure CSI pretty well. I focus on the
short term with CSI. If we take care
of today and this week, then the
30-day score, or 3-month score,
or 12-month score will take care of
itself. All we can influence is today,
and that is what we focus on. We
also spend a lot of time focused on
internet effectiveness.
A long time ago, I backed into my
metrics like this: I can't deliver a
car until they show up at the store;
the customer won't show until I
have an appointment with them,
and I can't make an appointment
until I make contact with them.
Therefore, I measure four things:
contact ratio (benchmark 80% of all
leads); appointment ratio (70% of
all contacts); show ratio (60% of all
appointments); and sold ratio (50%
of all shows). If we perform at these
levels, then we end up with a 16%
delivery ratio on total leads, which is
a good job. By measuring these four
steps independently, I can determine where we need to improve.

WHAT IS YOUR MARKETING
STRATEGY?

We do lots of small tests and
experiments to determine what is
working in certain markets. Right
now, we are mostly digital and
direct mail. When it comes to digital
marketing, it is all about being able
to process information.
For the past eight years or so, we
have partnered with Client Command for our marketing in a huge
way and they continue to really
impress me. Not only do they have
access to scary amounts of data and
information on people in our mar-

kets, but they have the ability to process the information in a way that
creates tangible results. They are
up to about 177 different algorithms
for determining when someone is in
the market for a car. This is the key
to effective and efficient marketing.
What is so awesome about Client
Command's ability to learn about
our customers is that the longer
we have been with them, the better
they have gotten with results. I feel
like this is one area where we have
shined.

WHICH DMS SYSTEM DO
YOU USE AND HOW EFFECTIVE HAS IT BEEN? AND
WHICH CRM SYSTEM?

We use CDK, of course I still call
it ADP across the board for our
whole group. We want every store
on the same DMS so that we can
manage all the stores through the
same group of people who know and
use the same system.
We use EleadOne as our CRM
across the whole group. The system
is only as good as the people who
are working it. But having one
system across the board allows us to
hold stores accountable better, and
do a better job of solving problems,
and allow for some cross-training
between stores. What I care most
about is the result. I want to turn
opportunities into car deals. At the
end of the day, I only hold them
responsible for results.

IN WHAT WAYS DO YOU USE
SOCIAL MEDIA AND HOW EFFECTIVE HAS IT BEEN?

We are pretty big on Facebook
advertising. Unlike most media, it
is a constantly changing medium
with several unique opportunities.
Facebook has the ability to be both
a reach and frequency medium. We
like how it can deliver true engagement from prospective customers
over whatever time we deem appropriate, from a month-long campaign
to just a few hours. And, of course,
it is all very trackable and easy to
measure the effectiveness.
IF YOU COULD KEEP ONLY

ONE TECH. TOOL, WHICH
WOULD THAT BE AND WHY?

The main technology we like is
Google Analytics. We consider our
use and interpretation of Google
Analytics as one of our competitive
advantages. Recognizing it's not
about last click attribution or even
asking the customer "what brought
them in," but using the analytics to
discover what types of advertising
and offers are driving conversations in our stores. Of course, it still
comes down to good people and
good processes, but the technology we can't live without is Google
Analytics and the software we use to
interpret it, Dealer Insights.
We have some very unique ways
of measuring online performance.
We are not interested in visits, or
VDPs, or impressions, or many of
the familiar metrics. We are focused
on engagement. We have figured out
how to use Google Analytics to measure engagement on our sites and
for each source of traffic. This allows
us to determine the real quality of
the traffic generated. This is changing our model for how efficiency is
defined.

IN WHAT WAYS DO YOU AND
YOUR DEALERSHIPS GIVE
BACK TO THE LOCAL COMMUNITY?

We are very involved in the community as an employer, as a group,
and as a business owner. This year
will mark our 12th annual retreat
for employees, where we alternate
topics each year between marriage
and parenting. This is a great weekend where we get the opportunity to
get to know our people better away
from the store. But also, this retreat
has resulted in serious life changes
at home for many of the participants.
In addition, we have recently
given a building to Habitat for
Humanity for them to operate out
of in Victoria, Texas. We have built
a gym for a local high school. We
have been one of the major contrib-

D I G I TA L D E A L E R . C O M

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APRIL 2018

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