Electronic Retailer - March 2012 - 24

CarMD Makes a
Vice President Art Jacobsen talks about how the company revs up the brand using online and offline direct response marketing.

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BY VITISIA PAYNICH PHOTOS BY BRIAN DAVIS market by providing the tools and information needed to make bettereducated decisions about their vehicles’ health and maintenance. Not only does it slay the intimidation factor on the part of consumers, but it also alleviates some of the stress on their finances. “Eighty-five percent of our customers are what I’ve called DIFM, or ‘do it for me,’” says Jacobsen. “They’re not going to do their own automotive repair work; they’ll take their vehicle and have it repaired somewhere else.” CarMD, Jacobsen explains, acts as a conduit that takes the information from the vehicle’s computer and connects it with the company’s database. “Our database is basically our secret sauce that sits behind our product,” he says. “We’ve been building that for the past 14 years.” It’s a treasure trove of information from CarMD’s network of ASE-certified technicians that becomes more centralized and accessible. For example, let’s say you own a 2004 Honda Accord with 120,000 miles on it and a “check engine” light that comes on for EGR, or exhaust gas recirculation. “You’re not the only person with a 2004 Honda Accord with 120,000 miles on it, and you’re not the only person with a check engine light for EGR,” explains Jacobsen. “Our device takes that information from the computer and then cross-references it against the vehicle population out there. So, you’re drawing on the knowledge of thousands of technicians, not just one. And based on

On one particular day during the early 1990s, Leon Chen drove to a nearby gas station to fill up his car. There at the pump, he had an epiphany: Create a tool that’s easy to use and allows consumers to understand what needs to be repaired in their vehicle. After all, most cars have a computer inside … so why not extract that knowledge? Yet, getting that information from one’s vehicle should be something as simple as pumping gas, Chen thought. It was at that moment the concept of CarMD was born and the automotive repair industry would never be the same. Over the next several years, Chen, founder and CEO of CarMD.com Corp., and Keith Andreasen, co-founder and product developer, worked on prototypes for a handheld device. The tool was essentially conceived using technology readily used in the automotive repair industry; however, the difference was information would now be shared directly with the consumer. On March 29, 2006, the company rolled out the CarMD product to the buying public. Today, the company enjoys strong sales thanks to its DRTV campaign and online marketing. Electronic Retailer magazine sat down with Art Jacobsen, vice president of Irvine, Calif.-based CarMD.com Corp., to learn more about this unique product and how direct response has helped push demand for CarMD into overdrive.

What is CarMD?
The mission behind CarMD is to empower consumers and the vehicle

the universe of information out there, here’s what is mostly likely wrong with your car, what you need to fix it and how much it’s going to cost.” One of the major selling points to the product is the fact that it empowers the consumer, especially those less mechanically inclined. Women, especially, often

electronicRETAILER | March 2012

Electronic Retailer - March 2012

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