To Be Successful in Today's Used Car Marketplace, Dealers Need to Focus on Digital Marketing Skills - By Mike Wilson
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THE
FUTURE
IS NOW To Be Successful in Today’s Used Car
Marketplace, Dealers Need to Focus on
Digital Marketing Skills
By Mike Wilson
28 / SEPTEMBER 2018 / WWW.NIADA .COM
Ryan Stewart didn’t need Digital and Polk, of the 24 touchpoints,
an industry research report or points of contact, the average
to understand how an consumer goes through with a dealer,
increasingly large number of 19 of them – 80 percent – are digital.
his customers were learning “The way consumers are, they’re
about his independent spending more time doing their
dealership. online research first,” said Catherine
As part of the sales process, his Alton, director of marketing for
employees at Good Wheels routinely SpinCar, provider of an automotive
ask visitors how they found out about merchandising platform. “So it’s
Fortunately, the business. And the answers were important for dealers today to focus
dealers have their obviously changing. on paying attention to their digital
choice of modern “It stopped being, ‘Oh, I saw you showroom and making sure their
in the paper,’ or, ‘I heard you on the inventory is up to date and their cars
digital marketing are showcased as they should be.”
radio,’ and turned into, ‘On your
tools, many of website through Google,’ ” said Shane Marcum, vice president of
which allow precise Stewart, owner and general manager inventory solutions for NIADA Bronze-
messaging and the of the dealership with locations in level National Corporate Partner
East Liverpool, Ohio, and Ellwood Dominion Dealer Solutions noted
ability to track the City, Pa. that in 2017 “there were two times as
effectiveness of Tracking his customers’ initial many test drives being conducted on
a campaign. And contact with his dealership prompted YouTube than there were on an actual
dealership lot.”
they’re cheaper, for Stewart to reassess his marketing
Social media, particularly Facebook,
strategy.
the most part, than Instead of using the traditional is a favored component of many
legacy platforms, avenues of TV, radio and newspaper, dealers’ marketing strategies.
experts say. his dealership now spends its About two-thirds of adults in the
marketing budget almost exclusively U.S. use Facebook, according to results
on digital platforms. of a survey published in March by the
The changes at Stewart’s dealership Pew Research Center.
illustrate the importance of digital “Our most invaluable tool,” Stewart
marketing to today’s independent said, “has been Facebook.”
dealers. The key to maximizing the power
Many industry veterans view of Facebook, however, might be
traditional media as decreasingly counterintuitive.
effective in their marketing efforts. NIADA Retail 20 Groups moderator
Of course, success in that area takes Justin Osburn, instructor for the
more than just being online. Merely newly rebooted Certified Master
having a website with pictures of Dealer program and author of Used
inventory and a “Contact Us” link isn’t Car Dealer’s Retail Ready series,
nearly enough. said flooding a Facebook timeline
Fortunately, dealers have their with image after image of a dealer’s
choice of modern digital marketing inventory is not the way to market the
tools, many of which allow precise dealership.
messaging and the ability to track Such Facebook posts, he explained,
the effectiveness of a campaign. And are “probably irrelevant to the
they’re cheaper, for the most part, than majority of your followers.”
legacy platforms, experts say. Instead, Osburn and others said
dealers should focus on posting
BEYOND THE BASICS informative, educational, humanizing
By now, every independent dealer content, which is much more likely
should understand the need to have a to be shared and liked by Facebook
digital presence: a mobile-optimized followers than, say, an image of a
website that communicates the particular make and model of a car.
dealership’s brand and personality, The sources of that sort of
depictions of its current inventory and content are limitless: testimonials
essential administrative information of satisfied customers, background
on topics such as financing, trade-ins, on longtime employees, behind-the-
service, protection products and the scenes information on how a car
like. is reconditioned before it’s offered
“Those are really the table stakes for sale, details on an upcoming
today for most independent dealers,” community event, how to perform a
Cox Automotive vice president for layman’s inspection of a car before a
major accounts Mike Jaros said. trip and so on.
Phil Sura, vice president of sales Osburn cited the proverbial “old
for UnityWorks, which provides video days,” when successful dealers
services for dealers, cited a study demonstrated their creativity on
that supports Stewart’s real-world legacy advertising platforms, and said
experience at Good Wheels. According today’s marketing avenues are new
to the 2015 Automotive Shopper Path outlets for that same imagination.
to Purchase study by Millward Brown CONTINUED ON PAGE 30
WWW.NIADA .COM / SEPTEMBER 2018 / 29
CONTINUED FROM PAGE 29
q
“That’s where the dealer his dealership has a content Ted and
needs to pull that advertising schedule that extends 30 days Alexandra Henkle of
cleverness out of his hat,” into the future. True Blue Autos
he said, “and just apply it a “We’re more organized in Greensburg,
different way.” about what we’re trying to put Ind., with children
Ted Henkle, general on our page,” he said. Magnolia and Joseph.
manager of True Blue Autos “You really have to track
in Greensburg, Ind., said he everything and make sure
and his wife, Alexandra, who what you do choose to spend
operates the dealership with your money on actually
him, post content featuring returns something for you,”
their entire family, including Stewart added. “Because if
their 1- and 3-year-old you don’t, you might as well
children. take the cash out back and
“I think that gives people light it on fire.”
insight on us … seeing us as Facebook owns another
Ted and Alex Henkle, who social media platform –
have kids and people have Instagram – that’s more
nice things to say about them popular than Facebook
and they have a life outside among a younger generation,
of just helping you find a car,” including users who might
Ted Henkle said. not be in the car-buying
“People watch that stuff,” market. But it’s probably just
Osburn agreed. “People share a matter of time until a critical
that stuff.” mass of Instagram users
Posting such content is only mature into a car-buying
part of a successful marketing cohort.
plan, Osburn and others said. Ryan Stewart of Good Wheels,
Publishing material should be DO IT THE CUSTOMER’S East Liverpool, Ohio, and
preceded by careful planning WAY Ellwood City, Pa.
and followed by critical The relatively simple act
review. of communication between
Henkle, for example, said a prospective customer and CONTINUED ON PAGE 32
30 / SEPTEMBER 2018 / WWW.NIADA .COM
CONTINUED
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FROM PAGE
PAGE 28
30
a We’ve all had
dealership conversations
has undergone An obvioustoadvantage
compensation a completefor A TIME TO HIGHLIGHT pushing inventory to his
with team members
considerable asking
upheaval. and funded
a dealer indeal that is
communicating INVENTORY dealership’s followers. The
why
Many they didn’tnow
people sell choose
a compliant.
via text or email is those Of course, there is a time strong digital sales post (the
particular product.
text messaging andInevitably,
email That same
channels levelaofdealership
allow customer and a place for a dealership right hook) should come
the
as answer is the product
their preferred means of service needs to apply
to incorporate photosto or to use a digital platform only after a considerable
wasn’t part of their pay plan.
communication. videos into the thread. to highlight its inventory, number of posts that don’t
That sameshould
Dealers mentality applies
be equipped thatAnother
falls right in line
way withcan
dealers spotlight a special sale or emphasize sales (the jabs).
totoregulatory
handle that compliance.
shift. If compliance.
give customers what they otherwise making a hard-sell When it comes time
it’s “You
not partneed of to
thebepay
usingplan,allitof For customers
want to believe
is by speeding up the pitch. to throw that right hook,
simply doesn’t exist.
the prevalent communication they gotprocess.
sales a good deal, they Allowing consumers to see Facebook ads are a favored
Now, there
channels are several
to make sure you must know
Cox and agree to
Automotive’s what
2018 the vehicles is a must, say method among many
ways independent
are available and dealers
providing they
Carare purchasing.
Buyer JourneyAnd they
study dealers. Facebook ads can
the experts, whether through
can
thetie compliance
experience thetoconsumer
their must understand how their
found fewer than half of car be targeted to a granular
video or photos.
employees’ pay plans.
expects,” said Ryan Osten, buyers are satisfied with the As with many other level – by age, geography,
One method is to only let a
chief operating officer of length of the in-store buying elements of dealership car type, etc. – to zero in on
complete deal count toward In essence, the customer
Gubagoo, which offers process. That widespread operations, there are third prospective customers.
pay plan goals. For example, if
services to support live chat dissatisfaction provides parties that can handle the “It’s the biggest bang for
a deal jacket does not include
on a dealer’s website as well
a signature on the privacy
an opportunity for dealers
Following those procedures visual component of a dealer’s your buck in terms of return
plan in place, don’t mess with it. plan is achievable. As the top
as SMSthen
notice, texting
thatand
dealFacebook
does to streamline the in-store marketing. on investment,” Stewart
Don’t raise the required performer sets the pace for the
Messenger.
not count toward a given experience
and and feature
charge-backs, while that SpinCar, for example, said. “You can spend a little
product penetration rates. And team, you’ll see other people work
Harking tally
employee’s backuntil
to the age-old
the in their
also marketing.
ensuring regulatory converts photographs into bit or a lot, and no matter
don’t undermine it by picking harder for you, so they can try to
maxim ofisthe
signature customer always
obtained. “Some consumers
compliance. It’s a win-winprefer
for andanchoosing
interactive
when360-degree
to enforce
what you spend on it, you’re
max out the pay plan.
being right, automotive
Implementing a procedureexperts to dealership.
the complete parts of the display ofprocedures.
compliance the vehicle. going to get something
The absolute out
last thing you
recommend
like that into your asking
payaplan
customer
can vehicle
Tying ittransaction from the
into an individual’s UnityWorks
The moment stitches
you messphotos
with a of it.” ever do is adjust the pay
should
gohis or her
a long preferred
way means
toward ensuring comfort
pay of their
plan makes it ahomes,”
win- said together pay
motivating andplan,
syndicates
you turn the
it planUsed
to makeproperly, Facebook
it harder for your top
ofdeal
all communication
jackets have all – and
the Jim Menard,
win-win for theadealership,
senior vice video
into online to a one.
a demotivating dealer’s ads and other
performer. digital you do
The moment
honoringinformation.
complete that request. president
the customer whoandoversees
the team the website,
Let’s a third-party
say you have someonesite and marketing
that, tools
you’ll start also allow
seeing your team
“Texting
The and email
same strategy canare the
apply independent dealer business
member. onYouTube.
your team who can max out dealersless
become to track
and lesshow well
motivated,
tonew norm for–communicating
stipulations salespersons’ for TrueCar. “Dealers need Stewart,
your pay plan.an independent theirlose
you’ll digital
the campaigns are up
steam you built
with customers,”
commissions Dominion’s
are withheld to embrace digital
WORKING THE PLANtools on dealer with
Consider for stores
a moment in Ohio
it’s and working.
and lose that top performer.
Marcum
until said. “Veryare
all stipulations few people their dealer
I’ve said thiswebsite
before, like
and Pennsylvania,
good to have a topcites the book
performer “Never
And before
you can guesshas
what
will answer
complete andphone
the deal calls,
is but trade
I’m widgets
saying andOnce
it again: finance
you Jab,
like thatJab, Jab, team.
on your Right Hook
It in anybody been able to say,
funded.
they will That ties their
respond to text.” tools.”
have a good, motivating pay describing his
demonstrates strategy
to the othersforyour CONTINUED ON PAGE 32 ON PAGE 34
CONTINUED
3032 / MARCH 2018 / WWW.NIADA .COM
/ SEPTEMBER 2018 / WWW.NIADA .COM
CONTINUED FROM PAGE 32
‘You spent this amount giving the customer literally Transparency can also of a digital product?
of dollars, you sold to a complete image of a car include adding a third- As Osburn said, a
these people and we can before he or she comes to party price valuation from dealer needs to either hire
definitively say how they got the lot. a source like Kelley Blue someone or figure it out
here,’ ” Osburn said. Another part of Book or Black Book into on his or her own.
“Digital advertising is transparency that should be the dealership’s marketing. However the dealer
significantly more effective part of a dealer’s marketing Giving consumers an decides to conquer the
and more cost-effective toolbox are online reviews. unbiased reference back-end digital demands
than any of the traditional Dealers and industry point bolsters a dealer’s of today’s marketing
advertising dealers had experts say reviews are trustworthiness and environment – in-house
to do 15 years ago,” Cox extremely important to credibility. or with a contractor – he
Automotive’s Jaros added. customers, and they also “The dealers I see who are or she should understand
“It’s cheaper to get in the factor into a dealership’s embracing that are seeing a that marketing to
game – but it also requires a success with search engines. lot of success,” Jaros said. potential customers must
lot more attention.” “That’s how everybody be on the customers’ time
A relatively new addition to shops now: reviews, LEARN HOW, OR HIRE and terms.
a used car dealer’s arsenal is reviews, reviews,” Stewart SOMEONE “Most dealers haven’t
Facebook Marketplace, which said. There are aspects of had to purchase a car
last fall was opened up to As part of their digital marketing that retail in a long time, if
used car dealers. interaction with customers, require more technical ever, I’m sure,” Jaros said.
“We’re seeing tremendous salespeople should stress expertise than the ability “For many of them, it’s a
engagement on that channel,” the importance of a review. to post a Facebook bit of an awakening when
Osten said. “If dealers aren’t Stewart’s dealership, for update. Using Google Tag they really take a look at
looking at that, they need to example, incorporates Manager or the Facebook how their customers are
be.” a workflow in which a Pixel, for example, can shopping.”
customer receives a text be crucial in determining Added Gubagoo’s
TRANSPARENCY AS A message requesting a review the effectiveness of online Osten: “It’s extremely
MARKETING TOOL before he or she leaves the campaigns. important in today’s
Photos and videos of lot. But does the general environment to meet
inventory are more than “Offering incentives to manager or owner of an customers where they are
visual marketing tools leave a review is a great independent dealership and to communicate with
for a dealer. They are also option for dealers,” Marcum have the time or the desire them how they want to be
examples of transparency, said. to learn the inner workings communicated with.”
34 / SEPTEMBER 2018 / WWW.NIADA .COM
CONTINUED FROM PAGE 37
Bottom line – your website dealership; 71 percent want to nearing a certain age, offer a If your customers are
is often the first point of research incentives, add-ons trade-in calculator. baby boomers or Gen
engagement a customer has and trade-in values; 51 percent The point is to continue to X, you likely should use
with your brand and your want to structure the deal and engage with them – even after Facebook, Twitter and
inventory. 43 percent want to apply for the sale. possibly even Instagram.
The site needs to be easy to financing and/or get pre- Are your customers working
navigate, represent current qualified online. GET SOCIAL professionals? Have a
inventory and offer touchpoints Those preferences are Your targeted millennial LinkedIn page. Do you
for access to your sales team. all things to consider when customers are online all advertise on television?
Providing a contact page evaluating your website the time for both work and Consider creating a YouTube
with the dealership phone features. personal use. They manage channel to post your TV ads
number and address are not their own digital footprint and feature content about
sufficient. Your team needs to REACH OUT AND EMAIL across multiple social media your inventory and F&I
be digitally accessible via email, SOMEONE platforms and sites. products.
text or chatbots. So far, we have discussed If your independent Whichever platforms
Remember the previous the importance of promoting dealership is not on social you choose, you must post
example, when the vendor your brand and delivering media, they will immediately fresh content regularly
responded quickly, engaged a customer-centric website. discount you or completely and engage with your
me in a digital dialogue and And those tools are important ignore your business. customers.
proceeded to upsell me? All of when a customer is Having a social media Tweet about your
that is equally important in the considering a purchase. presence is considered table sponsorship of the local
car-buying process. But how can you generate stakes, and dealerships with Little League baseball team
In fact, a Cox Automotive demand or capture a sale a vibrant presence will gain and retweet the team’s
study showed seven out of 10 from a repeat customer? preference. content and photos. Create
consumers said they would A highly functional Remember, not all social events and promotions on
be more likely to buy from a dealership website can offer media platforms are the same, Facebook and invite your
dealership if they could start a simple form to gather email and creating one profile page targeted customers to attend
the process online. addresses. on one platform might not the an annual open house. Use
It also found 83 percent of Contact those customers best path. Instagram to promote your
the nearly 3,000 consumers on a periodic basis to offer To have an effective social latest vehicle inventory and
surveyed prefer to complete discounts and promotions, media presence, you must encourage a test drive of
at least one purchase activity or inform them of new use the same platforms your that snazzy sports car.
online away from the inventory. If their vehicle is customers use. CONTINUED ON PAGE 40
38 / SEPTEMBER 2018 / WWW.NIADA .COM
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