Storytailer

STORYTAILER LLC
CHAPEL HILL

Google Cars Encourages Dealer Trades

By

Yesterday, Brian Pasch posted a great article with the first examples of a new live Google product called Google Cars – Google’s entry into the 3rd party lead provider business for car dealers.

Other than all the obvious tactics that other third-party lead providers employ to maximize revenue from a consumer lead (as illustrated by Brian), I did some digging and found another component of their program that I thought was very interesting.

In Google’s support article explaining the program exists this piece of advice for consumers:

“If you see a particular car (specified by a unique VIN) showing in a dealer’s inventory, you may be able to get that car from other dealers as well. Dealers often times trade inventory with each other, so you can buy from the dealer that you prefer.”

What?!?!

The only way Google could have a dealer’s inventory is via the dealer feeding it to them. If you’re a dealer sending your inventory to Google, be advised that Google is telling consumers that if they find the exact car they’re looking for (down to the specific VIN) in YOUR inventory, that a consumer doesn’t have to buy it from you.

In my internet sales career, there were many times that myself and a competing dealer were working with the same customer online. One of the things I always had to look at was if the exact car the customer was looking for was available and who had it. There were plenty of occasions where the only convenient place that had the exact car the consumer wanted was my dealership. One of the strongest value propositions I had when quoting and/or trying to convince a customer to do business with me versus my competitor was that I had the car.

Since Google doesn’t release the consumer’s information to the dealer, it’s going to be much harder to identify the cases in which my competitor is working the same customer and trying to sell them a car that I have in stock with the intention of dealer trading with me for the vehicle.

One has to assume that only dealers providing inventory and/or participating in this program have the “Contact Dealer” button available as not every dealer does (as illustrated in the image below).

cars

As you can see in the example above, it appears that dealer C and F are participating in this program while dealer D and E are not based on the existence (or absence) of the “Contact Dealer” button. So, as a consumer, I’m guessing that only inventory from dealer C and F would be available for a consumer to view. However, using Google’s own advice, I now know that since dealer D is closer to me, I could hypothetically buy dealer C’s car from dealer D.

I don’t necessarily want a provider that I am paying telling the consumers I am paying to attract that they can buy MY cars from my competitor.

My other thoughts on Google Cars:

Not only is this new program by Google hijacking dealer’s SEO efforts by making Google Cars the “most relevant” result in searches but the inventory itself is hosted on Google’s own site which could also eliminate the need for a consumer to visit your own website.

Google is also considering the vehicle results delivered via search as “Sponsored” versus organic results so now they are also competing with you for your PPC ad placement.

It’s going to be pretty difficult for dealer’s to NOT participate in Google Cars. Unlike other third party lead providers who rely on organic result positioning and PPC ads, a dealer can combat this if it has an aggressive SEO strategy. Google, on the other hand, is always going to deliver their program at the top of the search results, right above the first true organic search result.

Does anyone truly believe Google is going to bury their income-producing program in search results?

On top of this, Google’s recently formed automotive division has been invited to (and spoken at) many of our industry’s educational events in the last year or so giving advice and “assisting” dealers when all along they were preparing to bring to market a product that would compete with those very same dealers for not only their money but also in their search engine marketing strategies.

Google is the new Honey Badger. They don’t care. They’ll just take what they want.

In Defense of TrueCar

By

There’s been a lot of talk about TrueCar lately in automotive industry forums blasting them for their business practices and how “evil” they are. There’s a thread on DealerElite with over 33 PAGES of comments [edit: 50+ pages] in response to Jim Ziegler’s question:

“TRUE CAR and ZAG Cyber Bandits: Parasites or Good for the Car Business?”

..and even a video from Jerry Thibeau of Phone Ninjas who has a very strong opinion:

(Edit: I guess TrueCar didn’t like the video. It appears that they had it removed.)

My experience with HomeNet Automotive (the leading automotive data distribution company now owned by AutoTrader) gave me unique insight from all perspectives: vendors, 3rd party inventory sites and dealers.

Whether you think TrueCar is good or bad for the automotive industry, you have to step back and consider a few things:

(In regards to TrueCar having, and using, a dealer’s sales data) In the early days of inventory marketing, it was the general thought that having your inventory on every 3rd party site possible was a great idea. Most dealers signed up for every 3rd party site they could, especially if it was free. When I was an Internet Director, I signed up for them all also. When I was with HomeNet, I talked to many Dealer Principals that wanted their inventory everywhere. Most never read any “terms and conditions”, they just signed up. Any of these third party sites could have been polling their DMS for not only inventory but sales data and they never would have known. Nothing’s free. It wasn’t until recently that people started questioning the wisdom of shotgunning their data and, even then, it had nothing to do with whether the sites should have it but how it was effecting their SEO efforts and how the sites were using their data to collect leads then selling those leads to the dealer. It had nothing to do with the fact that they HAD the data in the first place.

When HomeNet Automotive integrated TrueCar into their inventory management tool, (IOL Pro), as a rep, I visited many dealers who loved the TrueCar feature and ability to use reports to close deals and research competitor pricing. Only a few even questioned where the data was coming from and in only one case was a dealer actually upset that we (ie. HomeNet) had the sales data at all. The fact remains that this data was given voluntarily by the dealer to hundreds of 3rd party sites, each with their own terms and conditions, and any of which could have been polling their DMS for sales data and, in turn, providing it to TrueCar, Edmonds, AutoTrader, etc. or any of the hundreds of other sites.

(In a now amusing tangent, industry people demonize Reynolds and Reynolds all the time for protecting their data (ie. not allowing unauthorized 3rd party access) and throttling their control over distributing it to just anybody and now these same people are complaining about 3rd parties having the data.)

Now, onto the lead program.. People are complaining that TrueCar leverages the dealer’s data (which the dealers are giving to countless websites already) to provide consumers information on the lowest prices for vehicles, converting the lead and offering it to the dealers on a per sale cost of $300 versus a per lead basis. Why is this so evil?

There are plenty of 3rd party sites that do the same thing with the only difference being that they charge per lead. Hell, even MANUFACTURERS do it. When I was in retail, I used a company with a similar pricing strategy named Autotropolis (since bought by Autobytel for $15 million). I LOVED those leads. I could easily identify a lead from them and factor in the $250 per sale fee into any deal structured or quote given to a consumer. I only paid when I sold a car. It was great. At least on a per sale basis, my cost per sale was fixed. With 3rd party leads, it wasn’t. I hear dealers complain about $900+ costs per sale with their AutoTrader programs yet they still participate. The point is that I was always in control of the sale. If I didn’t want to sell the vehicle at the pricing given to them, I didn’t. It was my choice. The fact is that I would rather have the opportunity to earn the sale than not have it. Why wouldn’t you want a fixed cost per sale on internet leads? 

Dealers have been sending their transactional and inventory data to 3rd parties for YEARS. This isn’t some new phenomenon that’s all of a sudden appearing. Everyone wants to single out TrueCar when, in fact, TrueCar is only ONE OF MANY companies that have their data. Dealers have willingly and happily provided this data to 3rd party sites for YEARS (at least as far back as 2003 to some sites that I personally know of).

To top it all off, dealers and industry professionals have been evangelizing transparency in their sales processes, pricing and interactions with consumers yet it appears that dealers don’t really want transparency, what is wanted is the illusion of transparency.

Bottom line: If you don’t want your data used by a 3rd party, stop giving it to them. I’m not just talking about TrueCar, I’m talking about EVERY 3rd party.

TrueCar is a business that pays for information received from the dealers themselves. Rather than demonizing TrueCar for monetizing the data by providing a service to both consumers (via transparency) and dealers (via sales), don’t participate.

As the saying goes: Don’t hate the player, hate the game.

(Edit: TrueCar is just a scapegoat and convenient target. I don’t necessarily disagree with all of the arguments, just the placing of the blame on TrueCar. Dealers created this, not TrueCar.)

UPDATE 12/1/11: Seems as if my friend Jerry created a new video.

Consumers Want Video Walk-Arounds. Here’s Proof!

By

In my days with HomeNet Automotive, a new feature was released that allowed our customers to upload live video into their inventory for distribution to the third-party websites that would allow it.

Being in sales, I wanted to have a real video in which I could show potential clients the possibilities and an actual example of what one would look like so I enlisted help from a friend of mine who’s a GM at a nearby dealer group to allow me to video one of his employees doing a walk-around.
After filming it, I used it here and there when showing a demo of IOL Pro, HomeNet’s core inventory management software. After I left HomeNet Automotive, I promptly forgot about it.
Recently, I came across it in my YouTube video list and was ASTONISHED to see that it had almost 12,000 views in about 21 months! That’s an average of 570 views per month! This is without ANY exposure or publicity whatsoever. It was not on a blog post or anywhere. I can only guess that these 12,000 people came across this video via keyword searches either within YouTube or via a Google search. I did a quick keyword search and was astonished to see that my non-distributed or promoted video ranked 2nd in Google organic search results!
venza

Imagine if this video had actually been a part of that dealer’s actual inventory on their website as well as all the third-party sites. Given that this was a new vehicle, it could have been added to all of the listings for this model and year vehicle in their inventory. They could DOMINATE Google searches for their brands.

The proof is in the pudding. I highly doubt the people watching these videos decided randomly to watch a video walk-around of a Toyota Venza. It’s more likely that these were consumer’s interested in that vehicle.

This is advertising GOLD and cost them absolutely nothing.

If you want to watch it, here’s the video:

How To: List Inventory On Your Facebook Wall & Succeed

By

Facebook is designed and centered on engagement. Social media professionals all have various ideas on how you should do it and what works. My quick take on this is: whatever works for you – do that.

What do I mean by that? Facebook provides analytics on a per post basis. Use those to determine what types of content are causing your fans to interact with you. If people like jokes, post jokes. If people like to answer fun questions, ask fun questions. It’s that simple. I think pretty much EVERY social media professional will advise you, however, NOT to post your inventory to your Facebook page’s wall.

I absolutely agree BUT, I have found one very creative and unique dealership that can get away with it. In fact, not only can they get away with it, I LOOK FORWARD to seeing new inventory being posted to their Facebook wall. I’m not a buyer. They’re not my client. I’m not even in the same state that they are in.

How do they do it? By following one best practice and using massive creativity.

I doubt anyone would disagree that one fundamental best practice of internet marketing is to merchandise your inventory well through multiple photos and detailed descriptions. They do this, and they do it very well. EVERY car has photos and descriptions – new and used.

Do you still doubt that this dealer can post their inventory on their Facebook wall and get away with it? Certainly ONLY doing the above wouldn’t warrant that… BUT

…enter the creative part. Here are a few of examples of vehicle descriptions, cut and pasted straight from their website:

“You know, I feel so pure just sitting in this vehicle. It’s like I should put on a button up sweater and some sneakers and sing a melody like Mister Rogers. The vehicle has some type of Good Energy that removes the darkside. I’m going to put in a request to the Prison Board to have all inmates sit in one of these so they’ll become good honest citizens. A 2010 Chrysler 300 Touring with stellar fuel economy, 1 owner and factory warranty. $299 payment on 72 months with $0 down (with approved credit) is nothing short of a Disney movie (in this case, Disney, would be called our Finance Department). After you buy this, can we hold hands and go pick flowers?”

“Driving this makes me feel like I’m doing the waltz on Dancing with the Stars. Carrie-Anne Len and Bruno would be watching me from the audience and I have no doubt that their scores would all be 10. And if it wasn’t whoever gave me less would be run over. Yeah cause that’s how I roll. All 10’s all perfection because that’s what this lovely Journey is. 3rd Row Seating and killer fuel economy is INCREDIBLE. The only thing pathetic is that I’m selling it to you for this kind of price. The way it rides and handles is a dream come true. Call me the Genie in a Bottle because that’s what I do!!!”

“You’ve heard of Michael Myers from Halloween, yeah, well that’s like me at the dealership. I am a nightmare walker, price slashing talker. My machete is my pen and in the end you can NOT escape me. I don’t do a dance, I don’t run, I frigging just throw the ax that says my vehicle still has a moonroof, all power amenities on the inside,1 Owner, and killer fuel economy for an SUV. So think of it as a horror flick but in a good exciting kind of way. You can’t stop me. Just let me do the deed…SAVING YOU MONEY!!!”

I’ve been watching them for a while. I look forward to seeing new inventory shared on their wall. In this highly competitive market, you need something that sets you a part from all of the other 1,000 similar vehicles for sale. These descriptions undoubtedly also get sent to all the websites they participate in. At times, I browse their website JUST to read vehicle descriptions.

If I were a consumer, in their market, do you think this dealer would be memorable to me? Absolutely. Would you look forward to reading these descriptions? I bet you’re already on their website checking them out.

The person that writes these descriptions is a genius and needs a raise and THIS is how you can market your inventory via social media and not only get away with it but have your fans looking forward to more.

(For more information, and to see what I consider to be one of the best inventory marketing dealers I’ve ever seen, check out their website at http://www.bigredsports.com and check out their Facebook page at http://www.facebook.com/bigred.sportsimports)

Contact Me