Dealer Controlled Marketing Services February 2011 WHAT’S NEW AT FORDDIRECT FordDirect names Galpin Ford and Hines Park Lincoln 2010 Internet Dealers of the Year. The Ford and Lincoln Internet Dealer of the Year awards are given annually by FordDirect at the National Automobile Dealers Association (NADA) Convention and Exposition and honor top dealerships for achievement in Internet sales. Internet Dealer of the Year winners are determined by a formula that ranks total sales as well as Dealer Leo Hillock, OCE/EVP close rates for 2010. This year’s FordDirect winners, announced by Leo Hillock, office of the chief executive, executive vice president, were Galpin Ford of North Hills, CA and Hines Park Lincoln of Plymouth, MI. Honorable mention Internet Dealer of the Year winners for Ford were Bill Brown Ford, Livonia, MI and Varsity Ford, Ann Arbor, MI. Honorable mention Lincoln Internet Dealer of the Year winners were Nick Mayer Lincoln in Westlake, OH and Crest Lincoln-Mercury in Sterling Heights, MI. In making the announcement, Leo said, “Consumers rely on the Internet during all phases of the vehicle shopping process. The Ford and Lincoln Internet Dealers of the Year worked diligently to create a world-class Internet shopping experience that brings online shoppers into the showroom. Dealers who take full advantage of opportunities to connect with potential customers and maintain relationships with existing customers online will see great benefits through increased sales and service business.” FordDirect Dealers sold 275,000 vehicles through FordDirect Internet referrals in 2010 – 19.8% of total Ford Retail Sales. FordDirect webcast updates changes to Ford Commercial Truck website On January 17th, FordDirect launched a webcast detailing changes to the Ford commercial truck website. The old commercial site was a 5-year old platform that had limited funding and no integration with the current Ford site. There also was no robust lead-capture or routing to Dealers. The new commercial truck site will: • Leverage the 6 million visitors to Ford.com • Deploy inventory, B&P, and the Compare feature • Deliver leads and information about handraisers to Dealers • Improve media plans to drive even more interest, traffic and leads Commercial truck vehicles accessed from the global navigation dropdown will link to nameplate pages. Each page will feature multiple lead paths: • “Quick Quote” – Will be a feature for all 8 commercial truck vehicles starting in Q1 • Build & Price – Overlaps vehicles starting in Q1 through existing Lead Processing System • Build & Price – For unique vehicles through legacy commercial truck site • Inventory – In the planning for 2011 Dealers currently enrolled in FordDirect New Vehicle Marketing Services will automatically receive Commercial Truck leads. If you are not enrolled in New Vehicle Marketing Services call your FordDirect Regional Operations Manager at 866-550-7812. INDUSTRY UPDATE 20% of car buyers use social media for research According to a recent survey of online vehicle shoppers by Chrome Systems, Inc., a subsidiary of DealerTrack Holdings, Inc., automotive retailing sites can increase brand awareness and attract more shoppers with a savvy mix of robust research tools backed up by social networking. The survey found that 20% of surveyed consumers who purchased or leased a vehicle in the past 12 months have used social networking sites to research or get opinions on a vehicle. Brand loyalty has also dropped among auto buyers. Only 35% of potential buyers and purchasers wanted to purchase the same brand of vehicle they owned previously. As a result, Chrome Systems said it is more important than ever for manufacturers and dealers to find alternative ways to stay connected with existing customers and to reach out to new potential buyers. Cars.com to post Dealer reviews Ward’s reports that Cars.com will begin posting consumer dealership reviews on its Automotive Marketplace website beginning in March. According to Cars.com it’s a win-win for consumers and Dealers. They say 80% of reviews are positive and that a few negative reviews are better than no reviews at all. At first, a Dealer must be signed up for a consumer to post a review. But by this summer, all Dealers will be listed on the site for consumers to leave a review. Cars.com said it will offer training to Dealers on how they can get good reviews and handle bad ones. Auto makers to rev up ad spending Reuters reports that auto manufacturers increased advertising during the industry comeback last year. And that trend is expected to continue and mirror sales growth this year. The hot areas for automotive manufacturer spending will be TV and the Internet. (…continued on page 2) (What’s New at FordDirect continued...) FORD INTERNET DEALER OF THE YEAR Galpin Ford, North Hills, CA Hines Park Lincoln, Plymouth, MI Galpin Ford serves Los Angeles and surrounding areas with showrooms in North Hills, Van Nuys, Valencia and Mission Hills, California. For the second year in a row, Hines Park Lincoln has been named an Internet Dealer of the Year. Located in Plymouth, MI, Hines Park Lincoln has been serving the Detroit area for more than 40 years. Bert Boeckmann, owner of Galpin Ford said, “We are extremely honored to be named the Ford Internet Dealer of the Year. Our Internet sales have been a major part of Galpin Ford’s continued success. This award shows no matter where we meet a customer, online or in the showroom, that we are able to provide them with the best possible customer service.” We spoke with Galpin Ford Internet sales manager, Darren Arnaud, about their Internet department. He said, “We follow up every lead in a timely manner and (L to R) Row 1: Dave Meadows, Ali Vafee; we sell the dealership. We have a lot to Row 2: Joe Brooks, Mike Jaffe; offer customers. It’s a great shopping Row 3: Carlos Alfaro, Dustin Gibson; Row 4: Peyton Michaels, Darren Arnaud experience. We have a restaurant and Starbucks. We carry over 4,000 vehicles and sell our service. We give the customer reasons to do business with us. We set what we call our ‘Internet VIP Appointment,’ which gives the customer the red carpet, bypassing the traditional buying experience - we wait on them instead of them waiting on us.” Darren said, “We have four Internet coordinators that handle all of our leads. We train every week on how to handle phone calls and emails. They set the appointments then I call to confirm and introduce myself. I greet them when they come in and turn them over to one of seven salespeople who handle Internet sales.” Darren said, “95% of the time we do not give a price on Internet leads. We will give MSRP. If the customer insists we will give a price but we try to sell the dealership and get them in first.” Galpin Ford uses almost a dozen lead providers. But, according to Darren, “FordDirect leads provide our best closing ratio. We’ve also been getting a pretty good response for used vehicles from Craig’s List.” GALPIN FORD INTERNET METRICS Average Closing Ratio 12% Ford Internet Sales 25% To find out more about Internet sales at Hines Park Lincoln we talked with Ryan Kolb, who serves as Internet/BDC manager among other positions. Shown Left to Right: Deanna Pfile, Ryan Kolb, Amanda Bryant “We’re proud to have won this award two years in a row,” said Ryan. “Our team does a great job and they work very hard at contributing to our success.” As far as what they’re doing, Ryan said, “We continue to focus on enhancing our Internet process to engage our customers where they choose to shop. We’re staying consistent. We treat customers the way we’d like to be treated. We do constant training, both on the phone and with process. That’s a big deal to us. We don’t stop with the training. As more and more customers look online, we feel sales from Internet referrals will continue to grow to be a bigger part of our business.” When it comes to those referrals, Ryan said, “We don’t use any other lead providers for new vehicle sales other than FordDirect, Ford and our own website. We’ve dabbled with other new car lead providers but haven’t used them for about two years now. We just found that for what we were spending those providers just weren’t producing results. However, for preowned vehicles we do also use AutoTrader and Cars.com HINES PARK LINCOLN in addition to our three main INTERNET METRICS sources.” Average Closing Ratio Enrolled in FordDirect: • New Vehicle Marketing Services • Pre-Owned Vehicle Marketing Services • Call Tracking • Call Track-10 • DealerConnection Like all Dealers, Galpin Ford is part of the In-Plant Inventory Pilot*. “I like that,” said Darren. “I’ve made a lot of deals where customers have gone to our website and the vehicle is not yet in stock. They contact us and I’ve been able to get them in and sell them on a vehicle we have in stock.” When asked about advice, Darren said, “There’s much more to the deal than price. Sell your dealership. You’ve got the trade, interest rates, your service department. There’s no reason to give cars away on the Internet. You can make more money.” *The In-Plant Inventory Pilot lists ordered vehicles in a dealership’s new vehicle inventory before they are shipped to the dealership. 20% Ryan said, “All of our leads 12% are handled by our Business % of sales from Internet Development Center. What they Enrolled in FordDirect: will do is schedule appointments • New Vehicle Marketing Services for our sales staff. They answer all questions and provide a • Pre-Owned Vehicle Marketing Services price if requested along with • DealerConnection Premier Customization Service alternative vehicles. When the • Search Engine Marketing customers come in they meet with a sales manager. Managers know everything that is going on with the customer. They have access to all records and conversations and know what the customer is looking for. So when they come in they meet with the manager and are then handed over to a salesperson.” “My suggestion to anyone is be consistent,” said Ryan. “Follow-up, followup, follow-up. It’s a long term contract. There are people who will buy within a week of submitting a lead and others it will take a couple months. It’s all about staying in front of the customer – not bothering them, but being consistent. We judge every lead individually. At a minimum we will follow them for 90 days and then on a case by case basis we’ll go out to 180.” CONTACT US! 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