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Join us for this fast-paced workshop to learn
Your competition will be there – Tuesday, September 9, 2008 Hyatt Regency O'Hare 9am - 1pm Who Should Attend SPACE IS LIMITED! GUARANTEE YOUR SPOT BY REGISTERING TODAY!
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Please welcome Dan Maynard, Dennis Rushing, Jamie Adams, Jeff Ward and Gary Montoya as Automotive Digital Marketing (ADM) Community Moderators. Their ADM membership access levels have been promoted to Administrator so they can have the ability and authority to serve the ADM Community as forum discussion and comment moderators, as well as content editors. Each of the new ADM Moderators has agreed to contribute their available time and energy to ensure that ADM continues to evolve as an open network that provides a significant level of added value to its members. These five automotive professionals have been selected based on their outstanding positive reputations and well known track records of ethical behavior and good judgement that are well established within the automotive industry. I hope that all of you will accept and respect each moderator's requests and activities as coming from their own sense of right and wrong and originating from a desire to grow the ADM community into one of the auto industry's leading repositories of knowledge about Digital Marketing and Sales strategies, tactics and dealer business practices. The Automotive Digital Marketing Professional Community is available online at: www.AutomotiveDigitalMarketing.com
The Automotive Digital Marketing Professional Community was founded by: Ralph Paglia rpaglia@gmail.com cell: 1-505-301-6369
Join us for this fast-paced workshop to learn what you need to know to start selling to them TODAY! On OUR Web site...On YOUR Web site...On YOUR LOT. You will leave knowing: • 6 simple, ready-to-use, proven ways to maximize pre-owned visibility and sell more cars NOW! • How to immediately outsmart your competition by directing shoppers to your Web site, to your inventory, to your dealership! • How to manage, merchandise and price inventory to double your online visits • How to "Manage the Phone Conversation" to set more appointments, overcome objections, and sell more cars NOW! • How to use tools like kbb.com and CARFAX to build credibility for retail sales and reduce expectations on trade allowances • How to expand your reach using Ebay and Craigslist • How to use digital marketing tools to buy Internet, radio, and TV advertising more cost-effectively than ever before 
Your competition will be there – make sure you are, too! Thursday, June 12, 2008 Embassy Suites - Outdoor World, Grapevine, TX 2401 Bass Pro Drive, Grapevine, Texas 76051 9am - 1pm Breakfast served at 8:30am Lunch will also be provided Who Should Attend • Internet Managers • Used Car Managers • Marketing & Advertising Personnel • General Managers SPACE IS LIMITED! GUARANTEE YOUR SPOT BY REGISTERING TODAY! Click Here to Register! 
Space is limited! Register by June 4! Guest Speakers Rob Lange Rob Lange National Sales Training Director Kelley Blue Book Jay Luna Jay Luna Process Improvement Manager CARFAX Mark Burack Mark Burack Executive Vice President of Sales Liquid Motors Ralph Paglia Ralph Paglia Director - Digital Marketing ADP Dealer Services Life Creates Car Shoppers. We Turn Them Into Car Buyers. ©2008 Kelley Blue Book Co., Inc. All rights reserved. Kelley Blue Book, kbb.com, and the Kelley Blue Book logo are registered trademarks of Kelley Blue Book Co., Inc. 
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Monday Morning 9 AM Lot attendant smashes car that was scheduled for delivery at 4 pm that day.
Net cost = $2,584.00
Monday Morning 10 AM Manager’s meeting. Walk the trades from Saturday. Used car manager makes appraisal mistake valuing the wrong model.
Net cost = $2,300.
Monday Afternoon 1 PM Sales person promises a customer lifetime oil changes and tire rotation to deliver a car. Salesperson is no longer there. Customer has it in writing!
Net Cost = $1,578.00
Total losses for the day as of 1:20PM = $6,462.00
Monday Afternoon 1:25 PM Digital Marketing supplier walks through your front door, talks to you about a program that delivers more traffic to the dealership's showroom, web sites and generates more incoming sales calls and provides the dealership with more vehicle sales opportunities. Just like every other vendor claims, so you tell him NO thanks.
Monday Afternoon 1:45 PM That same sales person for the sane Digital Marketing supplier that you threw out at 1:25PM walks to your neighboring dealership and sells that digital marketing program. The GM at your competitor invets $25,000 into an online advertising program that will generate 5,000,000 impressions, 15,000 visitors to the dealership's web sites, 150 email leads, 450 phone calls and 750 showroom visitors... Over the next 30 days, your competitor delivers and additional 50 cars @ $2,500 Gross Profit PVR, generating an additional $125,000 in Sales Department income. But wait, it gets better yet for your competitor, because he cut $35,000 from his general advertising budget when he signed up for $25,000 in online digital advertising... So, a net savings of $10,000 went to the Sales Department's bottom line before his month even started!
This is a PRICELESS scenario!
At the Automotive Digital Marketing Professional Community web site there are over 535 dedicated and experienced online marketing and advertising veterans sharing the very latest in strategy and tactics for car dealers and automotive retail marketers.
I originally created the online automotive digital marketing online community located at www.AutomotiveDigitalMarketing.com in response to being badgered and bullied by a vendor at another automotive community web site. As a result of the negative treatment I received at the other site, I set up the ADM community site to be as open and user friendly as possible. With hundreds of files uploaded and over 500 automotive professionals enrolled at ADM it is a highly rewarding online community for automotive digital marketing professionals to be part of... Here are some of the latest statistics showing the high levels of content and volume available to you at AutomotiveDigitalMarketing.com:
Did you know that there are more than 19 groups on Automotive Digital Marketing? Did you know that there are more than 79 blog posts on Automotive Digital Marketing? Did you know that there are more than 90 forum topics on Automotive Digital Marketing? Did you know that there are more than 212 songs on Automotive Digital Marketing? Did you know that there are more than 192 videos on Automotive Digital Marketing? Did you know that there are more than 1023 photos on Automotive Digital Marketing? Did you know that there are more than 501 members on Automotive Digital Marketing?
Ralph Paglia | |
Director - Digital Marketing | OEM & National Accounts | |
505.301.6369 Cell | Ralph_Paglia@ADP.com | |
SELL CARS PARTS AND SERVICE PROFITABLY™ | |
Visit www.ADP-DM.info to learn about Digital Marketing | |
Visit www.ADP-CRM.info to see our CRM solutions | |
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Ralph Paglia: e-Business Director, Courtesy Chevrolet
by : Digital Dealer
In
2006, Arizona was the fastest growing state in the country, and Phoenix
is currently the fastest growing city in the state. Growth is fueling an
extraordinarily strong, vibrant economy and a boom in the Hispanic
population. Twenty-four percent of all auto sales in the market are from
Hispanic buyers and Courtesy Chevrolet reports that 45 percent of its
sales come from the Hispanic population. The market finds 13 very
aggressive Chevrolet stores competing for market share. Ralph Paglia, the
e-business director at Courtesy finds his team under attack by the
online efforts of his hyper competitive counterparts.
When did you come aboard the Courtesy Chevrolet team and how is your department is set up?
I
was recruited and hired by the Gruwell family to be the CRM/e-business
director at Courtesy Chevrolet in the summer of 2005.
My responsibilities include the development and supervision of
several diverse teams within Courtesy Chevrolet’s e-business
department,including a customer relationship center (CRC), a new car
Internet sales team, two distinct used car Internet sales teams, an
e-finance sales team and two full-time CRM administrators. All in all, I
have responsibility for approximately 50 Courtesy Chevrolet employees
who produce 300 to 400-plus vehicle sales per month.
Have you been in the business for awhile?
I
started selling cars in 1981 in San Diego, CA, at Kearny
Mesa VW-Peugeot. After six years I went to work for Bob Lewis VW-Peugeot
in downtown San Diego and stayed a couple of years at that location.
After a few stints at dealerships in Texas and New York, I worked for
a national sales training company (RBI) and then accepted a position
with Cyber Car, a division of the HAC Group, which also owned the
AutoMark Dealer Web Site Company and the Half-A-Car Trade Cycle
Technology consulting company that specialized in short-term leasing for
customer retention.
While working for Cyber Car, I installed
over 100 Internet sales departments in dealerships throughout the
country. Those first years at Cyber Car were a real eye opener as we
tried many different processes and organizational designs while seeking
the “secret sauce” for creating Internet sales departments that produce
results. In May, 2000 the Reynolds and Reynolds Company acquired HAC
Group. After the acquisition, I focused on developing e-business
consulting and training programs for various car companies and
enterprise level dealership groups.
How many Internet sales team members are on your staff?
Courtesy
Chevrolet is a single point Chevy dealer with a fully staffed CRC that
has two teams, a used car team with 12 CSRs and a new car team with
another 12 CSRs. Each CRC team has a leader (Vernon Intara and Steve
Clemens) and the CRC has a manager (Joel Matteson). The CRC handles a
variety of inbound leads from Internet sources higher up in the sales
funnel, as well as inbound sales calls. The Internet sales teams handle
leads from sources further into the buying cycle. We have a new car
Internet sales team with 14 Internet sales specialists (ISS) led by
George Salman; a used car Internet sales team with 10 ISSs led by Bryan
Long, and an off-site used car Internet sales team with eight ISSs led
by Adrian Fajardo.
Are floor and Internet sales separate?
Yes,
every Internet sales specialist is forbidden from taking fresh floor
ups, although we have at times provided the sales teams on the showroom
floor with lead lists generated from our many online and automotive digital marketing sources.
Is the department part of a business development center?
The
BDC is part of the e-business department and each Internet sales team is
part of the e-business department. I serve as the director of the
e-business department with financial statement responsibility and each
team’s manager reports to me.
Do you have appointment setters?
The
primary role of the BDC is to schedule appointments, but the Internet
sales specialists also focus on setting appointments as well. For all
the teams within the e-business department the setting, tracking and
handling of sales appointments is a major part of our digital marketing existence. If an
Internet sales specialist is having a tough time getting in contact with
a lead by telephone, then the CRC backs up the ISS by having designated
customer service representatives (CSR) who make ongoing repeated
attempts to contact that prospect while the ISS moves on to the next
lead.
What percent of your dealership’s overall sales are generated from the Internet, and do you see this increasing?
In
2006 Courtesy Chevrolet sold more than 11,000 vehicles, over 7,700 of
them were new Chevrolets. The e-business department was responsible for
generating 3,882 of those 11,000-plus sales, so we produce about
30 percent of the store’s total sales volume. Our volume
contribution margins fluctuate when you break those numbers down to new
cars, used cars, credit score categories and model line distribution
with e-business contributing over 50 percent of the store’s volume in
some categories. We have recognized online interactive automotive digital marketing as one
of the most effective means of attracting higher credit score prospects
as we attempt to increase our total loan mix portfolio’s average
credit score.
What part of your dealership’s overall advertising and marketing budget is dedicated to the Internet?
While
the advertising budget allocated toward online and interactive automotive digital marketing campaigns
has been increasing since the Internet department was started, I am
beginning to question how we look at the allocation of budgets. For
example, when we put up 15 outdoor billboards around Phoenix that
feature a URL message such as “2007Tahoe.com – AZ’s Largest Tahoe
Inventory,” primarily intended to drive people to one of our specialty
micro-sites, should the results be accredited to our Digital Marketing and Internet advertising, or to our CBS outdoor advertising?
Well,
of course it is what it is, outdoor advertising, but the results are
phone calls and Internet leads that go to our BDC and Internet sales
teams, and a significant amount of floor traffic that goes to
our showroom sales teams. Likewise, when I use the e-business
advertising budget to place dealership display ads on over 800 different
web sites, geo-targeted to Phoenix car buyers, and a large amount of
floor traffic is generated, along with some Internet leads and phone
calls to our BDC, is that pure Internet advertising, or is there some
recognition of the branding and floor traffic being generated by those
dollars invested into the Automotive Digital Marketing budget that purchased the web site display ads?
About 25
percent of Courtesy Chevrolet’s new car ad budget is spent on digital
marketing, and over 50 percent of our used car ad budget is spent on
digital marketing. The reason for the differential is that used car
digital marketing drives as much showroom traffic as Internet leads and
incoming phone calls.
Where do you get your Internet leads?
One
of the greatest success stories we have experienced at
Courtesy Chevrolet has been our ability to grow and diversify our base
of lead sources. Our greatest growth in the past year has been in
finding ways to invest into Automotive Digital Marketing and advertising campaigns that generate new leads on our own, and to recycle old leads
into fresh opportunities. An example of recycling old leads is to
datamine leads from 2003 and 2004 into categories that indicate the
prospect purchased a vehicle from another dealer. Our CRC then contacts
these customers by e-mail and phone to communicate with them that we
know it is likely that they will soon be replacing that vehicle they
bought from another dealer, and Courtesy Chevrolet would like to make it
worth the customer’s time to let us show them how much we do not want to
miss their business this time around. Last year 34 percent of our leads
were from third-party sources, 27 percent were from proactive BDC
and recycled leads, 19 percent were from digital marketing
generated inbound calls, 3 percent from GM, and the remaining 17 percent
from our full-featured web sites, various micro–sites and landing pages.
What are the closing rates for the different sources?
Like
many dealers, Courtesy Chevrolet’s lowest closing ratio is on leads
purchased from third-party lead providers, which were at 5.15 percent
for 2006. This is to be expected given that the cost of generating leads
has risen to above a level where lead providers can sell a lead once for
$20 and generate profitable business. In frank discussions with our lead
providers, after busting many of them sending “our leads” to other
dealers, they have admitted to selling the same lead multiple times to
multiple dealers within a given market area. Courtesy Chevrolet has
learned to accept that fact as a new reality in the marketplace and we
work within that reality by adjusting our processes for third-party
leads. Courtesy Chevrolet has changed our lead management process to
optimize our response based on the knowledge that these particular
customers will be getting several responses from our local competitors
of the same brand. We also know that third-party lead providers “churn”
leads to generate additional sellable leads from the same customers for
other brands of similar vehicles to what the customer initially selected
as their preferred vehicle. This works both for, and against us, as we
get leads (for example) on Tahoes from people who initially indicated a
desire to get a price quote on a Toyota Sequoia, and vice versa. So, we
simply accept the fact that we will have more competition for a
customer’s business when they come to us via a third-party lead provider
than if we generated the lead ourselves using digital marketing, our web
sites or one of the many micro-sites that Courtesy Chevrolet owns and
operates internally. Leads from our network of web properties close at
about 13 percent and leads from GM’s CID program close at over 9
percent.
What percent of your Internet sales are for new vehicles and what percent are used?
Up
until this past year, Courtesy Chevrolet consistently produced more new
car sales from Internet leads than used car sales. After we developed
and expanded our off-site used car Internet sales operations, and added
the e-finance sales team, that balance shifted to where we are today,
which is about a 50/50 split in total volume depending on month. The
used car sales seem to run fairly consistently, while the new Chevrolet
sales fluctuate for a variety of reasons.
What is your dealership’s web site address (URL)?
Courtesy
Chevrolet has three full-featured web sites that each display both new
and used vehicle inventories in different formats, targeted to different
marketing segments. We also have more than a dozen micro-sites and
landing pages that we use for a variety of digital marketing purposes
such as search engine marketing (SEM), model-specific search engine
optimization (SEO), specialized demographic targeting, geographic
targeting and stealth sites that we use to compete with third-party lead
providers in capturing leads from people who may not visit a dealership
web site. The three full-featured sites are the BZ Results site:
www.Chevrolet-USA.com, Reynolds WebSolutions: www.LatinoChevy.com and
GM PowerShift Site (Cobalt): www.Phoenix-Courtesy-Chevrolet.com.
What company designed or currently hosts your web site?
We
are currently using four different vendors to produce web sites and
micro-sites for Courtesy Chevrolet. BZ Results (an ADP company) is our
primary full-featured web site developer and digital marketing partner.
We intentionally drive more traffic to our BZ web sites than our
other sites because of its consistently high visitor-to-lead
conversion rates. The people we deal with at BZ have a tremendous amount
of respect for Courtesy Chevrolet and we always feel like they are more
of a business partner than a vendor. BZ does a great job of dealing
with our requests regarding our web sites and the landing pages it
produces for us, but more importantly it stays in communication with us
on an ongoing basis and provides consulting and training services that
ensure we don’t get locked into a stagnant comfort zone.
We use
Reynolds Web Solutions for our Spanish language web site
at www.LatinoChevy.com and we find RWS to be an exceptionally
competent organization from a pure technology perspective, but Reynolds
does not stay in contact with us, or find ways for us to improve our
results in the manner that BZ Results does. However, Reynolds does
provide what we believe to be technically the best web site in the
industry. The fact that Reynolds Web Solutions uses technology that
generates a separate web page for each vehicle in stock, with a unique
URL that can be submitted for indexing by search engine spiders is an
incredible technical advantage for dealers that use RWS. Reynolds
handles and displays dealer inventory better than other dealer web site
providers. Our Internet sales teams often discuss a “dream team” web
site vendor, which would be the people and processes from BZ Results and
the inventory display technology utilized by Reynolds Web Solutions.
We also use
The Cobalt group for our GM PowerShift web site, which is a GM mandate
for dealers who want a live hyper link from GM.com and Chevrolet.com to
the dealer’s web site. In fact, the leads from our GM PowerShift web
site are the lowest cost leads of any type that we get each month. Our
local Cobalt representative, Peter Orlando, is a great guy and we really
enjoy the service and support we get from him.
Do you use an outside service to take photos of your inventory?
We
use Dealer Specialties and we highly recommend the local
Dealer Specialties franchisee, Doug Eggleston. We have also tried Kelley
BlueBook’s CDM Data Company, which offers some great products.
In addition to your own web site, do you post your inventory on any other third party web sites?
Yes,
that is a big reason why we use Dealer Specialties. Doug Eggleston helps
us find ways to push our inventory data to more and more websites on a
continuous basis. One of the top priorities within our overall
e-business and automotive digital marketing strategy is to push our inventory data for both new and used
cars to more and more consumer facing web site hosting companies. This is an especially
big challenge for Courtesy Chevrolet since we are handicapped by the
closed DMS system that UCS provides to us. If it were not for UCS’s
painfully archaic data management restrictions, and lack of
responsiveness to our inventory data needs, we could sell significantly
more cars through online automotive digital marketing.
You will find our
inventory on many sites such as Autotrader.com, cars.com,
eBaymotors.com’s local edition, UsedCars.com and others. We are
constantly seeking additional sites and operators such as
Google’s Froogle.com (Googlebase) to get more eyeballs on our inventory every week.
Dealer Specialities is now taking multiple pictures of our new vehicles
that go over 90 days in stock that we push out to dozens of online
inventory display web sites.
What challenges do you face in maintaining strong gross profits with Internet sales?
Let
me be very clear in responding to this question… Courtesy Chevrolet is a
high sales volume focused dealership. Sure, we hold on to gross profit
every chance we get, but we will not lose a deal over price to anyone…
period. If another Chevy dealer lets its customer talk to us, that
other dealer will never see that customer again. We use convenience and
service as a differentiator that helps us to hold on to sales profits
within our Internet sales teams. I believe that our Internet team
members have better product knowledge than the average Chevy salesperson
and we leverage that expertise to maintain gross profits.
We
also offer car buyers several options including delivery. If a customer
does not enjoy spending time at the dealership, then fine… we deliver.
Our highest gross profits and CSI scores consistently come from
customers who pick out what they want from one of our web sites, ask for
a quote, respond that they’ll take one of the vehicles we quote, and
then ask us to deliver the car and all documentation to their home or
work location. Those are by far the best deals because the customer
knows that they have received a level of personalized service that 90
percent of all car buyers never even have access to.
The fact
is our Internet sales (on a model line by model line basis) out-grosses
the sales floor fairly consistently. Of course, the Internet generates a
higher gross profit PVR on a model line comparison; that is exactly what
dealers should expect when the customer is picking out their next car
from our inventory before they ever contact us.
How do you manage your prospect and customer information?
We
use BuzzTrak from BZ Results as a central database of all
e-business customer contact and communication records before they buy a
car. Once an appointment is set in BuzzTrak, our CRM administrators
enter that appointment into our UCS sales prospect control system, which
is what the showroom sales teams use to track floor traffic. This helps
protectthe ISSs and the CSRs from a customer just showing up and not
being recognized as a “show” brought in by the CRC or the Internet
sales department. Since all showroom visitors must be logged into
UCS/SPC before the sales desk will work a deal, this helps quite a bit.
Do you use e-mail templates, and do you send regular e-mail campaigns?
Yes,
we make extensive use of e-mail templates for both ad hoc e-mails sent
by our ISSs and for the automated e-mail system within BuzzTrak from BZ
results. We have so many e-mail templates that we now index them by
number and publish a manual that shows when and how each template should
be used within a process flow chart that references each template’s
index number.
Do you give pricing (or send copies of invoices) over the phone or by e-mail?
Yes,
we provide discounted price quotes to prospects who request price quotes
as part of the lead generating process. We also talk about prices over
the phone extensively and proactively. As far as we are concerned,
pricing is just another piece of information and we do not want to make
it the most important information by hiding it from our customers. The
real hard-core price mooches always get a price from any dealer they
contact anyway, because they work so hard at it. But the majority of car
shoppers ask for your best price because they have been conditioned to
expect the run around when they ask that question to a salesperson. We
defuse the situation by quoting our discounted “IMV” Internet market
value price right up front. It takes the confrontation out of it and lets
us focus on selection, service and convenience, which differentiates us
from other dealers.
What metrics do you track?
A
better question would be what Courtesy Chevrolet does not
track… sometimes we review so many Excel spreadsheets, charts and DMS
report printouts that the information can get overwhelming, but our
primary metrics look at leads received, appointments made, actual
showroom visits, actual sales and the ratio to the sales goals and of
course, leads closed, conversions and appointments made to leads
received. We look at these same key metrics sorted by lead sources, as
well as by individual ISS and internal teams.
How long do you work a lead before you retire it, or do you continue to market to that person in other ways?
Courtesy
Chevrolet Internet sales specialists will continue working directly with
a customer as long as the communication channels are open and an active
dialogue is happening. For people who either do not respond to an ISS or
say they are no longer in the market, our CRC takes over and continues
to contact the customer until they either tell us to leave them alone or
come in to the dealership and buy a car. The CRC acts as a safety net to
continue following up on leads that the Internet sales teams lose
interest in. The Courtesy Chevrolet CRC is very good at recycling old
Internet leads and previous customers to generate new prospects and
referrals.
How are your Internet sales professionals compensated?
The Courtesy Chevrolet pay plan for Internet sales specialists is:
Base Salary: $1,000.00 per month (contingent upon minimum performance requirements)
Commissions:
Based on the total gross profit generated for each vehicle sold,
including profit on sale (front end), profit on financing and insurance
(back end), profits on aftermarket and accessories (ProShop). The
percentage of commission paid to the ISS is based on the
following sliding scale, retroactive to the first unit sold:
1 to 8 vehicles sold: 12 percent
9 to 11 vehicles sold: 14 percent
12 to 14 vehicles sold: 16 percent
15 to 17 vehicles sold: 18 percent
18 and up vehicles sold: 20 percent
Monthly unit volume bonuses:
5 units sold/billed by 15 of month = $250 bonus
12 units = $1,000 bonus
Each additional three units above 12 = $250
Team gross bonus:
An
additional 5 percent of the gross profits generated by the salesteam
that the ISS is assigned to will be paid out based on theindividual
ISS’s units sold as a contribution to the team’s total unit sales. How
it works: If the ISS sells 10 units and the team sells 100 units, then
the ISS receives 10 percent of the 5 percent team gross bonus payout.
Example: The ISS team sells 72 units, generating $129,760.40 in total
gross profits. If the ISS sold 10 units of the team’s total 72 unit
sales, the ISS would receive 14 percent of the total team gross bonus.
Five percent of $129,760.40 is $6,488.02 and 14 percent of that is
$908.32, which the ISS receives.
Process performance bonuses:
Leads converted to dealership visits:
#1 ISS receives a $350 monthly bonus
#2 ISS receives a $150 monthly bonus
Showroom visits to sales closed:
#1 ISS receives a $350 monthly bonus
#2 ISS receives a $150 monthly bonus
If you could wave a magic wand and change anything about your department, what would it be?
I
would forever banish the bitching and moaning sessions that many sales
professionals seem to get going whenever more than two of them are
speaking with each other. I have visited hundreds of dealerships across
America and have never been to a dealership that treats salespeople
better than Courtesy Chevrolet, yet some of our salespeople seem to have
no problem finding things to complain about to each other,and to anyone
new in the department. If I never witness another salesperson group
“crap-out session,” it will be too soon! Can you get me a magic wand
that stops salesperson crap-out sessions? Other than that, we have a
great group of Internet sales specialists and I would like to get more
just like them to come and work for Courtesy Chevrolet.
rpaglia@DigitalDealer-magazine.com
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