ng effort, and as such we should expect some folks to not come back for a second time. And using the restaurant example from the article, if they run a coupon in the paper for a discounted meal, the tip issue comes up, as well.
The beauty of Groupon is that it DOES tell you where your $'s go. Not just for return business, but for the folks coming in. If we use the old $250 number for car sales advertising, for example, if you could actually create Groupons selling at $50 for a car sale at your dealership that are a guaranteed $500 off--well, you've covered your original advertising plus in most cases (all, if your smart) you've let less off the margin ($250) than a real negotiation often does. Taken to extreme at a hypothetical dealership that ran coupons that had to be redeemed before 3pm to beat a closing time of 6pm, you'd also save labor, lights, a/c, water, etc.
We live in the real and chase the hypothetical that will make us money. Groupon is showing a new way to control marketing costs to a known amount, and that's just the start. New car sales may never get there, even legally, but service can today and should.
My $.02 on what I consider the greatest marketing tool to come along in many verticals since the original newspaper ads.
asked consumers the question "If you bought a $20,000 car and knew with certainty that you purchased it at the dealers cost, what would be an appropriate tip or profit to the dealer?" The answers grouped pretty tightly around $1,800.
The problem is that consumers have no price confidence and TrueCar succeeds because it provides the consumer with price confidence. We can quibble about how TrueCar should be paid for this service but I have no concerns that the regulatory questions being raised will be resolved favorably for TrueCar.
The bigger challenge is that dealers do use price to compete with each other and price pressure is painful. TrueCar has been working with its dealers to develop a better way of presenting the qualitative picture that it believes represents most of the consumer decision on where to shop. Things like location and service matter a lot. TrueCar is new and the value proposition has captivated consumers in such a big way that dealers are noticing it before the Company can evolve t its optimal state. The company is making changes to address dealer concerns about price as a sole factor of differentiation and from what I have seen, I believe the changes being made will soothe many dealers (they will never all be happy).
Unfortunately, only dealers on the network are participating in this process. The expert sale consultants on this blog have good ideas and have been invited to discuss them but they decline to engage in a dialog with the team on how to improve the dealer experience.
I did not give you a direct answer to your question on what is fair margin. It depends too much on brand, geography and market competitiveness. I will remind you that dealers set the price on TrueCar.
What is the fair value of TrueCar's service? My approach would be to look at your total marketing spend and the incremental unit volume it generates. Take this price per incremental unit and compare it to the $300. plus the reduction in gross on a TrueCar deal and see which works better for you. Most dealers maintain multiple sources for attracting new customers and I believe TrueCar should be one of them. The beauty of TrueCar is that it is a tool for a dealer where you know exactly what it costs to acquire a customer AND you can control this cost and volume by changing pricing at a granular level.
l buyers its just a matter of time until they do and who is going to stand out in there mind when they get to the buying point? Thats the beauty of I'm A Looker...
I'll give you a brief scenario...
Salesperson: "Welcome to ABC Motors are you here for our sale"
Customer: "No thank you I'm Just Looking"
Salesperson: "Great!!! We have a new way here at ABC Motors for you to look with out being bothered! Follow me and I'll get you all set up"
Customer: "Really I can look without being bothered"
Salesperson:"Thats right! Come on, I'll show you"
Salesperson: "Now remember if you need my help just bush the more info button and I'll be right there"
Now the customer has scanned their drivers license to check out the PSD device and you have, in a customer friendly way receive all there info and the PSD will give the customer a feature / benefit presentation at the vehicle.
Throughout the presentation the customer is prompted to push the "more info" or "I'm ready for a test drive" button and the salesperson who checked out the device will be brought back into the picture.The videos are designed to drive them back to the salesperson but this time the customer is inviting them into the sales process vs the salesperson prying into th customers shopping process.
While the customer is looking at the inventory with the PSD, the PSD is communicating with the PCM1000 at the sales desk and recording all the activity i.e... vehicles, options looked at and how long they were looked at, to pin point the real interests of the customer.
This information can be used to assist in the close!
Here is a different scenario...
Service Writer: "Mrs. Jones I have noticed that your Ford Taurus has been in service quite a bit lately! Rather than sitting in our waiting room why, don't you take our new I'm A Looker PSD and take a look at the all new Ford Taurus."
Mrs Jones: "That's Ok I dont want to be bothered by a salesperson!"
Service Writer: "Thats the great thing about this, You can look without being bothered. If you need help just press the button. By the time you get done your vehicle should be out of the shop.I'll see you when your finished"
This is only the tip of the iceburg when it comes to the features "I'm A Looker" offers!…
the internet has enabled women to find the resources and information they need to take charge of their own finances and buying decisions, and give voice to their needs and preferences. With this rising tide of the economic power of women, car dealerships and automotive retailers need to devote time, resources and budget to gain a larger share of this huge market.
By 2010, women are expected to control $1 trillion, or 60 percent of the country's wealth, according to research conducted by BusinessWeek and Gallup.
Women purchase more than 50 percent of all new cars, and in some brands up to 62 percent. They purchase 48 percent of all used cars and 40 percent of all new trucks.
The solo woman's market -- defined as never-married women, ages 25 to 44 -- will approach $200 billion in consumer purchases by 2006, according to Packaged Facts, a division of MarketResearch.com.
According to a recent study by BlogHer and Compass Partners, more than one-third (35%) of all women in the U.S. aged 18 to 75 participate in the blogosphere at least once a week. According to eMarketer, female usage of the internet in the U.S. has risen 12.4 per cent since 2000, compared with 3.2 per cent for males. In 2011, 109.7 million U.S. females are projected to be online, amounting to 51.9 per cent of the online population.
In a study released on the eve of the annual International Consumer Electronics Show, American mothers revealed some surprising technology habits, including the fact that moms of school-age kids use the Internet more than their children do. These moms report that they're on the Internet for three hours a day, while their children are logged on for two.
"Mothers, now more than ever, are using technology like video, blogs and wireless devices to multi-task through their busy days," says Maria Bailey, industry exert and author of the book, Mom 3.0: Marketing with Today's Mothers by Leveraging New Media & Technology. "2009 stands to produce a record number of tech-savvy mothers bridging devices together to create everyday solutions."
Digital Divas by the Numbers
• 22% shop online at least once a day
• 92% pass along information about deals or finds to others
• 171: average number of contacts in their e-mail or mobile lists
• 76% want to be part of a special or select panel
• 58% would toss a TV if they had to get rid of one digital device (only 11% would ditch their laptops)
• 51% are moms
Source: Mindshare/Ogilvy & Mather
Here are the basic steps and tools you will need in order to market effectively to women, gain their trust and, in turn, their business.
1. Integrate the message. Make sure the woman-friendly message is consistent across your brand, from the showroom to the service drive, your website and your internet sales department. Signal to women in your marketing and advertising you are thinking about them and their needs and are striving to win their business.
2. Polish the approach. Treat and picture women as capable and professional in your online marketing and advertising efforts. Our society recognizes many valid roles for women, but this isn't always reflected in ads-- seldom are women shown in work settings, business roles or positions of responsibility and authority. Use real women rather than the runway model as the benchmark for these graphic depictions of women. Girls and women in ads are often presented as beautiful, but these ads offer a very limited, narrow view of beauty.
3. Emphasize information. Having a blog that provides information about your dealership, employees, events, special offers tips and community activities will help women learn more about how who you are and how you can serve her needs.
4. Focus on relationships. Create relationships with your women customers by providing information and content on your websites and in your marketing programs designed specifically for women. Set up a two-way approach, answering her questions, speaking her language and listening to her needs. Provide content that interests women consumers-- car seat safety, crash test ratings, car care tips and so forth.
If 51 percent of car buyers are women and 85 percent of all vehicle purchases are influenced by women, what percent of your marketing and advertising budget are you willing to devote to attract, sell, retain and increase loyalty with this majority of the American auto buying market?
Jody DeVere is the CEO & president of AskPatty.com. Contact her via email at email@example.com
About Jody DeVere
Jody DeVere is the CEO and President of AskPatty.com, Inc., AskPatty.com is a NIADA Educational Provider, certified dealers are held to a high level of customer satisfaction for women consumers. Visit www.askpatty.com to learn more about how to become an AskPatty.com Certified Female Friendly Dealer.…
ram, we’ve asked Social Media Maven Kate Frost to show you 5 Mistakes You’re Making on Instagram (and How to Fix Them!)
Kate is an undisputed Instagram expert! She spent years unlocking the secrets and short cuts of Instagram. Using that knowledge, she then successfully grew the brand exposure and sales of many national and international companies. Now, she’s ready to share the 5 common mistakes dealers are making on Instagram and easy ways to fix them.
In this eye-opening 1 hour webinar, Kate will reveal 5 incredible tips to help you grow your Instagram audience, engagement and ROI. Attendees of this comprehensive presentation will also learn:
The difference between a business and personal account
How to check Instagram insights and use the information
When the best time to ‘Go Live’ and use Instagram stories
Why you should spend money advertising on Instagram in 2017
Whether you’re about to get started on Instagram or looking to expand your social strategy, if you are ready to learn 5 Mistakes You’re Making on Instagram (and How to Fix Them!), then you can’t afford to miss this webinar! Register Now!
PRESENTER: KATE FROST is the President of Kate Frost, Inc., an award-winning Digital Marketing service provider which helps clients improve their lead-handling processes and digital marketing. Kate has an extensive background in automotive advertising with an emphasis on social media and brings a unique insight into the automotive digital marketing realm. During the last decade, she has conducted hundreds of social media campaigns designed to brand businesses, drive traffic and generate sales and service leads. In January 2015, she launched Polished Digital, a digital marketing company focused on providing online strategies for beauty and lifestyle brands. Kate continues to learn about emerging trends and best practices and shares her knowledge at Digital Dealer, Driving Sales, TLS, Innovative Dealer Summit, Auto Dealer Monthly’s Training for Success Magazine and at numerous 20 Group Associations. Ms. Frost has been recognized as Dealer Marketing Magazine’s 2014, 2015 & 2016 Technology Leader in Social Media. Kate is a highly respected member of the automotive community and a busy public speaker, and she can be reached at Kate@KateFrostInc.com.…
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