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September 1, 2010Click
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ADVERTISING MARKETING SOLUTIONS A Slow Market Doesn’t Have to Mean Slow Sales Jonathan Lucenay While automotive sales finally seem to be strengthening, there’s no denying the recession took a steep toll on many dealers. Even amid the unprecedented challenges of the past two years, however, some dealers prospered. Five Star Automotive Group in Macon, Georgia, is a good example. In 2008, Five Star’s six dealerships (representing 13 brands from six manufacturers) were averaging 500 retail sales a month with a customer retention rate of 18 percent. Today, Five Star is averaging 800 retail sales a month, with a 30 percent retention rate—an increase of 67 percent. To achieve such an increase, Five Star leaders invested time in understanding how their customers and market had changed and adjusted their marketing strategy accordingly. I believe any dealer can increase sales if he or she is willing to do the same. 1. Objectively assess your strengths and weaknesses. In working with more than 1,500 dealers during the past decade, I have found many don’t have the tools to assess what’s truly working and what’s not. For example, as Five Star built its dealer group, it purchased dealerships from many different owners, which eroded customer loyalty, retention, and sales. As a result, marketing strategies that targeted existing customers became less effective as those customers felt free to ‘shop around.’ Identifying this problem was an important first step. 2. Know your market and how buying patterns have changed. The market has turned upside down in the last 18 months, but the real question is, how has your market changed?... |
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INTERNET MARKETING Search Engine Optimization for Automotive Fixed Operations Sean V. Bradley There is a lot of talk about automotive internet sales, business development, technology, and digital marketing. but…there is a lot less talk (almost none in fact) about fixed operations on the internet or digital marketing for the service department. Why is that, when fixed ops is 65 percent (or more) of most dealerships’ profits? With the average dealership losing 80 percent of its service customers, there is a tremendous amount of opportunity to increase a major profit center when fixed operations utilizes the power of the internet and digital marketing. Way too many opportunities for a 500 word article; so, I am going to explain fixed operations search engine optimization. Here are a quick couple of examples. If you Google: • “Oil change Philadelphia” (566,000 returns) • “Tire rotation Washington DC” (44,000 returns) • “Oil change San Francisco” (6,290,000 returns) • “Need a Ford mechanic Chicago” (4,400,000 returns) Not one of these examples shows a car dealership on the first page of Google! Not organic (natural) SEO, not for Pay Per Click (SEM), and not even for vertical search/local search (on the map)! How is this possible? Easy, dealers are not focused on fixed operations online, but this leaves piles of money on the table. Do you know who is getting all of that business? Companies like Jiffy Lube, Pep Boys, and local repair shops... |
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ADVERTISING SOLUTIONS How to Create Your Best Car Sale Ever! Tom Letizia For the past 40 years I have been putting together one car campaign after another. Some sales have been bigger than others—some have laid a big fat goose egg and some have turned an also-ran dealership into a success story. But one thing is for certain; If you don’t properly invest in advertising, you will fail. So, here is my prescription for a successful car sales event: You need a plan. I mean a plan. Not just waking up on Monday morning and making a decision to have a weekend sale. I’m talking about a strategically planned event. • Pick a date. Look at the calendar and make sure that the date you select doesn’t conflict with any other major local event such as a football game. Also, don’t choose a date during certain non-selling holidays like Easter or Christmas, or any other generally slow months in the car business. Picking a date when buyers are more likely to be shopping will determine success versus failure. • Have enough inventory to be successful. Give customers plenty of selection and choices. • Set a goal for your event. How many cars do you want to sell? Be realistic. If you have been selling 30 cars a month, and expect to get to 100, that is a substantial leap. Set a number... |
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BUY HERE, PAY HERE SOLUTIONS BHPH Underwriting, Scoring And Static Pool Analysis Scott Carlson Establishing underwriting criteria that maximize sales without compromising the collectability of retail installment contracts has been one of the biggest challenges for buy here, pay here dealers for many years. To make matters worse, the BHPH industry is changing complexion at a rapid pace. No longer are dealerships able to be down payment-driven businesses without compromising sales. As big money continues to pour into this industry, the need for more sophisticated methods of evaluating potential customers and deal structure is becoming a necessity rather than a luxury. BHPH scoring models can be the solution. These models can be designed to maximize sales by focusing more on the prospective customers strengths and less on the down-payment. BHPH scoring is nothing more than the application of numeric values to standard underwriting criteria. Best case, scoring models should not be designed to eliminate repossessions. They should be built wide in scope so that they offer as many prospective customers as possible an opportunity to prove that they will pay for a vehicle. BHPH scoring should not be confused with FICO, BEACON, or EMPIRICA scores. Credit bureau scores are produced from models developed to access and measure data related to... |
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CRM SOLUTIONS Communication Is The Key To Success Al Babbington In the two decades I have worked in the automotive industry, I have seen this economic cycle repeat itself more than once. As a general manager for a large automotive retailer and a strategic planning and marketing executive for several automotive companies, I have seen dealers turn enviable profits in down cycles. What these dealers have in common is that they take direct and decisive actions to improve operations, and they do it fast. Because of my observations over the years, I have come up with a list of the top ten actions a dealer should take in down times-i.e. right now! 1. Reduce overall marketing expense. Your advertising reps will tell you differently, but the fact is that excessive spending on newspaper, radio, television, and even Internet advertising will not garner enough new customers to justify the expense. What dealers need to do is get smarter about marketing, figure out exactly what works and why, and then increase spending in that area while reducing spending in others. 2. Reduce floor plan and other variables. Create an ideal inventory. Dont let the manufacturer force you take unwanted cars. Look at previous sales by model, color, and trim. Cross out cars that sold for less than the invoice price or spent more than 120 days in stock to understand historical patterns- and track Internet leads by make and model to... |
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