Toyota Kansas City Region Dealer Summit - 2010
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Transcript of Toyota Kansas City Region Dealer Summit - 2010
Automotive Digital MarketingInternet Sales Challenges
Toyota Dealers in 2010
Kansas City Region – Toyota Motor SalesJanuary 13, 2010 Dealer Meeting
Presented by Ralph PagliaNational Digital Marketing Strategy Consultant to Toyota Motor Sales, Inc.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Introduction and Background:
Ralph Paglia Director - Digital Marketing Solutions Dealer Services• 20+ year auto industry leader in Digital
Marketing, Advertising, Lead Management and dealership CRM process design and execution
• Executed Digital Marketing and Sales Strategy that generated 144,000+ leads to single-point Chevy dealer 2006-2007
• Built dealer ISS team that sold 4,000+ Units to Web Leads in 2006 • Worked w/Ford in 2007-2008 to develop first fully integrated multi-
publisher Tier 3 Digital Marketing Consulting and Online Advertising program
• First retail automotive Behavioral Targeting Digital Advertising program while at Courtesy Chevrolet in 2005, 2006 and 2007
• Internet Sales & Marketing Consultant to Ford, Mercedes-Benz, GM, Honda, Toyota, Mercedes-Benz, Hyundai and 250+ dealers
• Started generating Internet leads in 1988 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in SoCal
Cell: 505.301.6369 [email protected] www.ADMPC.com
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota KC Region accomplishments in 2009
What a few top performing Toyota dealers are doing to become more competitive in 2010
Impact of Social Media on marketing to car buyers
Dealership Lead Management
A few recent Facts and Figures
Summary with Q & A
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota KC Region Dealers 3 Digital Marketing Performance Metrics reviewed and analyzed for results relative to national averages…
1. Traffic GenerationTotal volume of dealership website visitors
2. Conversion Rate Percent of website visitors who contact dealership
3. Lead Volume Total business opportunities generated from website
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
6 KC Region Dealers stood out as “Best in Class”
Dealer Website Traffic Marketers1. Toyota of Des Moines2. Olathe Toyota3. Superior Toyota4. Molle Toyota5. Cedar Rapids Toyota6. Reliable Toyota
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
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Total Dealer Site Traffic* KC Toyota Dealers November, 2009
(*KC Dealers with >1,000)
National Average
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
6 KC Region Dealers stood out as “Best in Class”
Dealer Website Content Marketers1. Performance Toyota of KC2. MidWest Toyota3. Rolling Hills Toyota4. Crown Toyota5. Molle Toyota6. Eddy’s Toyota of Wichita
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
0.00%
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Website Visitor to Dealer Contact . Conversion Rates*
*KC Toyota Dealers >1K Visitors November 2009
Performance Toyota of Kansas CityMidWest ToyotaRolling Hills ToyotaCrown ToyotaMolle ToyotaEddy's Toyota of WichitaCoad ToyotaPerformance Toyota of LincolnToyota of Iowa CityTim Corwin ToyotaAdams ToyotaFrank Fletcher ToyotaPerformance Toyota of La VistaRiley ToyotaToyota of MuscatineWilson ToyotaErnst ToyotaAnderson-Weber ToyotaBellevue ToyotaWeiss ToyotaDan Deery ToyotaLewis ToyotaDan Porter ToyotaOlathe ToyotaToyota of the Black HillsCedric Theel ToyotaLou Walsh MotorsJay Wolfe ToyotaCedar Rapids Toyota*Superior Toyota *Toyota of Des MoinesBillion ToyotaReliable Toyota *
National Average
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
6 KC Region Dealers stood out as “Best in Class”
Dealer Website Lead Generation1. Molle Toyota2. Eddies Toyota of Wichita3. Adams Toyota4. Toyota of Iowa City5. Olathe Toyota6. Performance Toyota of La Vista
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
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Leads from Dealer Site Visitors* KC Region Toyota Dealers November, 2009
(*KC Dealers with >1,000 visitors)
National Average
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
THE PROBLEM: Dealers currently see the Social Media and Online Ratings and Reviews Landscape as a bewildering array of brands and sites!
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Increased traffic to the dealer’s primary eCommerce websites Increased “Top Of Mind” Brand
Awareness of the dealership in local area with automotive customers who are in market Improved Search Engine Rankings for
the dealer’s primary eCommerce site for relevant search terms An effective and proactive Reputation
Management strategy that alerts dealers to what is being published and guides satisfied customers towards posting positive reviews Increased sales of Vehicles, Service and
Parts Dealer establishes a Thought
Leadership position in their local community with a customer segment that is difficult to reach Employee engagement with Social
Media that is guided, advantageous to the dealership, controlled and monitored
Social Marketing & Reputation Management Value
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Dealership Community.com
MySpace
WordPress
YouTube
Flickr
Photobucket
Blogger
DealerRater
Edmunds
Kudzu
Digg
Del.cio.us
Technorati
www.Automotive-Avenues.comDealer Sponsored Online Community
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
With one click of the customer’s mouse button, Performance Toyota’s eNewsletter makes it easy for customers to share “Money Saving Tips” using any, or all of the customer’s social media accounts. These “Social Sharing” apps do all the work so customers can share anything they find interesting with friends, family, coworkers or anybody they are connected with that the customer believes may benefit from the information and link sent… So, let’s click on Facebook first.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
After I click on the Facebook icon in Performance Toyota’s eNewsletter, a new browser window automatically pops open and Facebook recognizes me, has me already logged in and the eNewsletter article headline and an image is preloaded and ready to go… Like a lot of people normally do, I add a comment in the box at the top explaining why I am sharing this Toyota dealer’s eNewsletter article about using your cell phone to take advantage of money saving coupons… Wouldn’t you? If customer is not in the mood to type, they can just click the “Share” button on the bottom right…
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
When I was dropped back into the eNewsletter, I clicked on the Twitter icon… With that one click of my mouse, the eNewsletter pushes a Tweet tip to my Twitter account, ready for me to share with 1,200+ friends, family, coworkers (Twitter followers) in a nicely pre-populated little message… With a link to the article!
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Online Advertising AlternativesFacebook Advertising Campaigns
With over 350,000,000 Facebook users and over 50% logging into their accounts every day, there will be dealers that generate significant business from this social network… Creating Ad campaigns is easy and very few dealers currently compete in this space.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
How hard is it to create your own Advertising Campaigns on
Facebook?
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Over a Million Facebook members within 50 miles of Kansas City…Over the age of 18.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
326,000 Facebook members within 50 miles of Kansas City…Over the age of 21, and have a college degree.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
980 Facebook members within 50 miles of Kansas City work for Hallmark…Toyota Dealers can message them through Facebook Advertising and Fan pages.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
2,460 Facebook members within 50 miles of Kansas City work for Sprint…Toyota Dealers can reach them with targeted messages through Facebook Advertising and Fan pages.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
1,440 Facebook members within 50 miles of Kansas City work for Wal-Mart…Toyota Dealers can reach them with targeted messages through Facebook Advertising and Fan pages.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
480 Facebook members within 50 miles of Kansas City work for DST Systems??Toyota Dealers can reach them with targeted messages through Facebook Advertising and Fan pages.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
To test the waters, I built a Facebook Advertising campaign for my new Toyota Community Fan page… For $100 a day, it looks like I can get 170 Facebook members over the age of 21 to click through and visit the Toyota Fan Page…
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
The volume of “Invitations” I receive every day from dealers around the country to become a “Fan” of their dealership and their Facebook Fan page has escalated from 1 per week to several per day in the past year… Get competitive and go to where your customers are!
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Reputation Management(Word of Mouth Marketing)
If we do a great job with a thousand customers and fail to satisfy one… Can you guess which customer will post an online review and rate our
dealership?
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Can dealers get their most satisfied customers to post positive reviews and rate their dealerships online? In many markets, one dealer figures out how to get it done, then takes business away from other dealers with the reputation created… Then everyone else works furiously at trying to catch up…
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
One Toyota Dealer in Missouri has seized the opportunity to get ahead of the rest with Reputation Management.
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
There is one of those Facebook links again… What happens when I click on it?
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
After I click on the Facebook link in Molle Toyota’s DealerRater review, a new browser window automatically pops open and Facebook recognizes me, has me already logged in and the customer review preloaded and ready to post on the “Walls” of over 1,200 of my Facebook Friends… Like a lot of people normally do, I add a comment in the box at the top explaining why I am sharing this Toyota dealer’s review… If your Facebook using customer does not want to type, they can just click the “Share” button on the bottom right…
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
1. Are Toyota Dealers more or less competitive than they were in the past as we go into the 2010 Auto Sales Recovery period?
2. How have the changes made in the Car Buying Process adopted by most Americans during the 2007 – 2009 Recession impacted Toyota dealer competitiveness?
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Internet Lead Management(Marketing serves it up, Sales puts it in the till…)
If we do a great job and get hundreds or thousands of sales opportunities… Why would we not ensure they our
response processes are optimized for success?
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected] 12, 2023 Copyright © 2005 Ralph Paglia – All Rights
Reserved
• “Consumers get bad or no response from dealers. Dealers simply drop as much as 50% of leads — they never respond to them at all. And even when they do, it’s frequently several days after the lead was submitted — average lead response time is more than 48 hours for most OEMs interviewed.¹”
• OEM Quote: “Of our dealers, I’d say 10% really ‘get it,’ and about 30% are kind of trying. But 60% don’t even know where to begin — and don’t care.”
• “Consumers get bad or no response from dealers. Dealers simply drop as much as 50% of leads — they never respond to them at all. And even when they do, it’s frequently several days after the lead was submitted — average lead response time is more than 48 hours for most OEMs interviewed.¹”
• OEM Quote: “Of our dealers, I’d say 10% really ‘get it,’ and about 30% are kind of trying. But 60% don’t even know where to begin — and don’t care.”
Does your dealership have an Internet Sales Team?Do they execute effective Lead Response Process?
¹Mark Dixon Bünger; Forrester Research
After spending so much money to get customer attention, why would we hit the brakes in the
sales department?
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
A: Increasing Closing Ratios is not “Just About” Response Times…
A: Increasing Closing Ratios is not “Just About” Response Times…
Q: Why the variations?Q: Why the variations?
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Impact of Dealer Lead Response Attributes on: Vehicle Purchase
Dealer Response Attribute Experienced by Customer within 24 hours* of Submitting Lead
Purchase Respondents* who DID NOT
experience the attribute
% of Purchase* among the
Respondents who DID
Experience the attribute
GAP
Statistical Correlation Factor of response
attribute with Vehicle
Purchase
% of ALL Respondents
who DID Experience the attribute
Dealer made Direct Phone Contact with Customer after sending Email 17% 27% 9% 11 59%
Dealer Acknowledged Customer Request 21% 23% 2% 1 94%Dealer Showed Genuine Interest in Customer’s Wants & Needs 21% 23% 2% 2 87%Dealer Responded using Customer’s Preferred Communication Method 21% 23% 2% 1 93%Customer Received Price Quotes from Dealer by Email 20% 27% 8% 9 44%
Customer Contacted more than once by Email and Telephone 21% 25% 4% 5 49%
Dealer Confirmed Availability of Vehicle(s) for Sale and Delivery 22% 24% 3% 3 52%
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Top 4 Ways to Close More
Sales per Leads
Received
Dealer Lead Response Actions Experienced by Customer within 24 hours of Submitting a Web based Inquiry (Lead)
Purchase Respondents
who DID NOT
experience the dealer
lead response attribute
% of Purchase among the Leads who
DID Experience
the dealer lead response attribute
Statistical Correlation
Index of Dealer Lead
Response attribute
with Vehicle Purchase
#1 Direct Phone Contact with Customer(after sending Email w/availability & prices) 17% 27% 11
#2 Customer Received Price Quotes (Email) 20% 27% 9
#3 Customer contacted more than once within 24 Hours after sending inquiry (lead) 21% 25% 5
#4 Customer reports being Completely or Very Satisfied with Dealer’s Response to Lead 21% 24% 3
Results Proven Best Practices
Results Proven Best Practices
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Telephone Process
• 85% of Website visitors who contact dealership before coming into the showroom, use the phone
• Direct Phone contact (after responding by email), has greatest impact on increasing sales close ratios
Get Fussy! Phone Follow-Up Sales Strategy (FUSS)
• Focus on having a set of objectives in front of us, each time we make an email follow-up call
• Take notes and collect more customer information during each call... Enter into a Lead Managment System!
• Get SMS permission, send email thanking customer for OK to send text messages to their cell phone (Opt-In validation)
• SMS engagement with customer doubles sales close rates!
• Get customer’s Facebook, Twitter, Blog info and connect
• 85% of Website visitors who contact dealership before coming into the showroom, use the phone
• Direct Phone contact (after responding by email), has greatest impact on increasing sales close ratios
Get Fussy! Phone Follow-Up Sales Strategy (FUSS)
• Focus on having a set of objectives in front of us, each time we make an email follow-up call
• Take notes and collect more customer information during each call... Enter into a Lead Managment System!
• Get SMS permission, send email thanking customer for OK to send text messages to their cell phone (Opt-In validation)
• SMS engagement with customer doubles sales close rates!
• Get customer’s Facebook, Twitter, Blog info and connect
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
5 Lead Response Dealer Actions that Drive Lead-to-Sale conversions at 4 times higher
rate1. Direct customer phone contact made by
dealer within first 8 business hours 2. Consumer received price quote(s) within
first 8 business hours3. Dealer confirmed availability of multiple
vehicles within first 8 business hours4. Dealers showed genuine interest (consumer
perception)
5. Customer received contact from dealer more than once within first 24 hours after lead sent Source: Morpace 24 hour survey and RDR sales data(new study reconfirms close rate impact factors)
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Toyota Dealers
RFQ Lead Management Process:Automated Reply w/Info Validation & Map#1 Email w/Prices on 4 Available Vehicles Phone follow-up to verify receipt of emailSend Email/SMS when Voicemails are leftGet “Real” email, SMS OK, social link during
callUnsold Lead Follow-up by Manager/3rd PartyWeb Sales Calls routed to specific people Showroom Appointment Reception Process!
RFQ Lead Management Process:Automated Reply w/Info Validation & Map#1 Email w/Prices on 4 Available Vehicles Phone follow-up to verify receipt of emailSend Email/SMS when Voicemails are leftGet “Real” email, SMS OK, social link during
callUnsold Lead Follow-up by Manager/3rd PartyWeb Sales Calls routed to specific people Showroom Appointment Reception Process!
Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]
Summary and Dialogue
Ralph Paglia Director - Digital Marketing Solutions
Dealer Services
Thank you for being the best and I know youwill have a great sales year in 2010…
Questions and Answers
Cell: 505.301.6369 [email protected] www.ADMPC.com