Online Training Comes of Age

In today’s market, who wouldn’t want an advantage? Helping dealers gain a competitive edge is the goal behind Cars.com’s DealerADvantage LIVE, a monthly webinar focused on tips for getting the most from online advertising.

The most recent webinar, Drive More Sales in 2010, was moderated by Cars.com trainer Ralph Ebersole Jan. 8. The 277 attendees who logged on, listened to industry experts share their knowledge on market trends, new technology and changing expectations of the Internet-savvy shopper.

There was a surprising amount of detail covered in the hour-long seminar, which is free for participants. The seminar format included a prepared slide presentation paired with live audio commentary from the panelists and moderator. An open chat window allows participants to post messages and comments throughout the presentation and the seminar concludes with a question and answer session.

Since the DealerADvantage LIVE series began in September 2006, there have been 20,000 clicks-thrus from the live seminars and archived entries. An average seminar has between 300 and 500 attendees and is attended by both new car dealers and independents. Depending on the topic, there may be dealers, general managers, sales managers, Internet managers and others attending the training. The thought behind the program is to help dealers improve the way they use the Internet to sell more cars and to do it in a way that is easy and convenient for their schedules.

“Our goal is to help dealers drive traffic and sell cars,” Ebersole said. “The biggest issue we have with this new medium of the Internet is that it is changing faster than many dealers can keep up with. Our objective is to help them with this ever-changing piece of the puzzle and address issues like social media, merchandising and others in the most efficient way possible.”

As opposed to traditional training, even that done online, DealerADvantage LIVE allows dealers to interact with the panelists and experts. Not only does this give attendees the chance to ask questions and clarify what they have learned, but it also gives the panelist experts additional insight into what’s happening in the industry. Ebersole says that many times questions from the audience can bring up new topics and suggestions that the panelists had not thought about.

In the most-recent seminar, dealers were encouraged as Ebersole began the presentation with data supporting a positive outlook for the 2010 sales market. New car sales are expected to increase 10.5 percent this year to 11 million, and used car sales are projected to rise by 10 to 38 million units. December 2009 sales data supports the idea of a “rock solid” trend line as it recorded the first year-over-year increase in new car sales. Ebersole said the pent-up demand for used cars is at 1 million units and the number of people planning on purchasing a used vehicle in the next six months is “through the roof.”

To capture these potential buyers, Ebersole quoted statistics that prove most shoppers turn to the Internet when starting the purchase process. He said a recent Cars.com experience survey showed that 63 percent of consumers that sent dealers a Cars.com e-mail lead bought a car somewhere, and while that number has risen since the last survey in 2006, the length of the buying cycle has changed. Four years ago, 79 percent of consumers bought a car within 90 days, today that number is 58 percent. That means dealers will need to woo most customers past the two-week window and all the way until they “buy or die” which could be more than three months down the line.

Michael Tyman, CEO of Professional Success, Inc., a dealer consulting firm in Antioch, Calif., helped dealers focus on where to find these customers. Utilizing Customer Relations Management tools (CRMs), Internet Lead Management tools (ILMs) and modifying information from dealer management software into a usable tool for marketing purposes, are critical to reaching prospects. This allows dealers to be creative and reach-out to certain market segments using tailored messages. For example, running an Internet special on aged-inventory over 30 days, and then pushing the same message through e-mail and phone to those customers your database has identified as looking for a specific price range, will turn results.

When merchandising a vehicle online, competitive pricing wins. When prices are out of line, your opportunity to connect with the shopper will suffer. Listings at fair market price get 79 percent more clicks to advertising and nearly double the amount of contacts. In addition to being priced right, the quality and number of photos is important. The average listing on Cars.com has at least 13 photos, but customers are clicking on listings with more than 20 photos at a growing rate. Utilizing video in online advertisements is another growing trend when it comes with positive response from customers. Keeping in mind that the customer wants to take a “virtual test drive” when searching online underscores the importance of quality photo and video and descriptive copy when trying to create a buying experience those customers cannot resist.

Dealers are encouraged to look beyond the “when can you come to the store?,” question when trying to win appointments. Try creating a VIP Manager’s Appointment, where you acknowledge the value of the customer’s time by inviting them to a one-on-one appointment, ensuring your undivided attention to their needs and if possible, having the inventory they are interested in ready when they arrive. Another idea is to offer incentives, such as a $200 certificate towards F&I products or coupons for a free oil-change at the service department.

With the growing popularity of iPhones and PDAs that support chat applications, Internet chat is a way dealers are utilizing new technology to reach potential customers. Providing additional traffic, many times from consumers who would not e-mail or call, chat services are growing in popularity and help build excitement around a sale. Ideally chat services should be staffed adequately, preferably 24/7, with an immediate response time. Cars.com and other vendors and dealer Web site hosts provide chat services if a dealership is unable to provide the manpower to run their own chat service.

Today, communicating through e-mail is as important as using the phone. Dealers should see outbound-mail as a way to brand their stores beyond just a link to their Web site and use it to provide customers easy access to social networking pages, video posts and even specialized inventory listings. Now more than ever, quick and consistently formatted e-mails are critical to the sales process. Customers are expecting a reply to their e-mails within an hour of sending them, and Tyman suggests that responding in 30 minutes or less doubles the closing ratio.

A review of best phone practices reminded dealers to have “word tracks,” rather than scripts, when speaking with customers to ensure a professional delivery. Always provide the requested information when asked questions, but be prepared to take advantage of additional opportunities such as leading a customer through similar inventory on the Web site if there is Internet access while on the phone.

Art Spinella, the president of market research firm CNW Research, told attendees that the customers start the process of buying a new car six months before they purchase it. For used cars it is 90 days. That means dealers have more time, and opportunity, to market to these customers. He says a bi-monthly or quarterly newsletter gets a positive response from most customers, as well as e-mails and phone calls within the first three months. Also, at the end of a contract, customers like the idea of being contacted by the dealership and asked questions like: Did the car meet your needs? What did you think of the car? Have your driving habits changed? Customers see this type of contact as more of an interest in their needs than a sales call.

During the question and answer portion of the seminar, one of the attendees asked about competitive pricing and the idea of having an “Internet only” price. The panelists agreed that this practice was not only a bad idea but is most likely illegal in most states. A question about creating urgency for the customer was also asked and answered by ideas such as working with departments within the dealership to create incentives (i.e., free oil changes if you buy now) and if the vehicle is in short-supply in your area, share that with the customer, insinuating low inventory may cost them the deal if they delay. Another question asked how many Web pages a consumer will navigate through when shopping online. Spinella answered that with statistics that 71 percent of shoppers using a third-party Web site will view a second page, 29 percent will go to a third page, 8 percent to a fourth page and only 3 percent will go to a fifth page. These numbers confirm the point made earlier in the seminar about the importance of competitive pricing.

The last question posed to the panel asked for their opinion on leaving voice messages. How many messages should be left, and how many calls should be made, considering most consumers have Caller ID and will know how many times a call has been attempted? Tyman said it is important to leave a message on the first phone call, and specifically answer the question to which the consumer inquired about, as well as plans to follow-up via e-mail and additional phone calls. Generally, three phone calls on the first day is acceptable. Spinella added that consumers are looking for a direct answer to their question, such as yes, we have a blue, Mustang convertible or no we don’t, but we can find one for you.

To register for a DealerADvantage Live webinar, go to www.dealers.cars.com and click on DealerADvantage LIVE. Once registered, you will receive an e-mail reminder of the event and password to enter on the day of the seminar. To participate, your computer must be able to support rich file media through Flash Player, Windows Media Player or Quick Time.