Dealix Ralph Paglia Automotive Marketing Interview Part1
1. Effective Online Automotive Sales: Interview with Ralph Paglia of Courtesy Chevrolet
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME Interview with Ralph Paglia of Courtesy Chevrolet
CONTENTS The Intelligent Approach to Challenges Big and Small
Interview with Ralph The Dealix Dealer Newsletter recently sat
Paglia of Courtesy down with Ralph Paglia, CRM/e-business
Chevrolet director at Courtesy Chevrolet, consistently
Third Party Auto
one of the top Chevrolet dealers in the
Sites: the Trusted country. A well-known expert in online
Source for Online Car automotive sales, Ralph shared so many best
Buyers practices with us that we decided to publish
his advice over the course of two issues. In
Want to Sell More this first installment, Ralph talks about
Cars More Efficiently?
adapting to market trends and competing with
Ask Gilbert: Getting the imports.
Buy-In from the GM
What Drives “Dealer
Dealix Dealer Newsletter (DDN): Thanks
Satisfaction”?
for taking the time to share some of your
experience in online auto sales with our
The Annual “Bad readers, Ralph. According to a recent survey by Cobalt and RL Polk, 56% of new
Leads” List car leads wound up as sales; but only 8% of these sales took place at the
Metro Areas with the dealership where the lead was first submitted. On top of this, 34% of these
Fastest Close Times buyers wound up with a different model - and frequently a used car. In your
of Q3 2006 opinion, why is this happening? What can dealers do to make that original sale?
Internet Training and
Industry Reminders
Ralph Paglia (RP): At Courtesy Chevrolet, we handle over 5,000 leads per
month, and we get those leads from a wide variety of resources - so we are
Previously in the uniquely positioned to spot trends in the nature of these leads. What we’ve seen
Dealix Dealer is an evolving landscape of lead generating business models and strategies that
Newsletter have contributed to the “Fickle Prospect” syndrome.
View a Movie to See
How Dealix Can Help My explanation of why so many leads wind up elsewhere is simple. Over the past
You Sell More Cars 10 years, shopping online for a car has become mainstream, and so many
customers are submitting multiple leads to multiple dealers simply because it’s so
SUBSCRIBE easy to do. If a single customer submits five leads to five different dealers
representing five different brands, then 80% of those dealerships will experience
a perceived failure to close the sale. However, we still need to keep in mind that
with Internet leads, the cost per sale is generally lower than with traditional
advertising. Where before, we could assume that car buyers were viewing many
different ads and different brands in newspaper ads, with Internet leads – we can
actually measure that behavior. Consumers love choice.
On the other hand, seeing new car leads ending up as used car sales is nothing
new. It’s just that the explosion of Internet leads is making it much more visible.
Those of us who grew up selling cars have long known the value of switching a
new car buyer to a used car. “Switch to get rich!” we used to say - referring to
http://news.dealix.com/e_article000706890.cfm?x=b8ylmVJ,b4bG84ht (1 of 3) [1/11/2007 9:34:09 AM]
2. Effective Online Automotive Sales: Interview with Ralph Paglia of Courtesy Chevrolet
Subscribe to the Dealix the greater gross potential on the sale of used vehicles.
Dealer Newsletter.
Enter your email Now let’s look at the question of lead defection to competing products. The
address in the box number of cars sold each year in the US has been holding steady at around 17
below and we'll add
you to the list:
million. With lead volume increasing at the same time, it’s inevitable that the rate
at which dealers lose leads to other brands will increase.
Don’t think my point is that dealers should be comfortable with high loss rates.
But you have to look at the causes behind these rates and figure out where you
Add Remove can have an impact. For example, at Courtesy Chevrolet we’ve recently modified
Submit our lead management processes to acknowledge the reality that most leads wind
up buying a different car from the one they initially said they wanted. We’re now
following up with a second round of price quotes for certified pre-owned vehicles -
quotes selected based on the lead’s original inquiry and any information collected
by the Internet sales specialist.
DDN: Given the huge array of choices buyers are presented with online, it’s easy
to understand a certain amount of fickleness. But one thing we’ve learned in our
research is that a dealer’s ability to connect with online buyers exerts a powerful
influence over where and what they wind up buying.
As a very successful dealer, you’ve no doubt developed some really effective
ways to make this connection. This is probably all the more true, since you’re
doing very well selling a domestic brand at a time when domestics are a tougher
sell. What advice would you give to domestic dealers who are struggling to
improve their Internet business?
RP: At the risk of giving away the secret sauce, I’ll tell you that one of the most
effective ways for domestic dealers to increase sales is to aggressively pursue
buyers who are considering Asian brands and competing domestic brands. We
take great pride in convincing Toyota and Nissan buyers to consider a Chevy. We
use search engine marketing to target customers shopping for competing brands.
We bid for keywords related to these brands, and we place our ads on sites
devoted to these brands. Targeted campaigns of this kind can push Corolla
buyers to consider a Cobalt, Sequoia buyers to consider a Tahoe, and so on.
Something else we do that makes an enormous difference is using a “triage” lead
management process. Instead of making random or round-robin assignments, we
assign leads to a specific Internet sales specialist based on the leads’
characteristics and that sales specialist’s historical strengths. Then we have a
customer service representative in our BDC contact every unsold lead 72 hours
after it comes in, in an attempt to get the customer to visit the dealership. Then,
a third person follows up three days later, if there is still no appointment
registered in our CRM system. Multiple interactions early in the process ensure
that we win our fair share of deals with buyers who are deeper in the sales
funnel. Involving additional people in those interactions serves as a safety net
that keeps leads from slipping through the cracks.
Dealers have to stay focused on a basic fact that’s part of everything we do at
Courtesy Chevrolet: anytime you can replace randomness with a process that’s
geared to a desired outcome, you have a greater opportunity to optimize sales
results.
We’ll continue our conversation with Ralph Paglia next month.
http://news.dealix.com/e_article000706890.cfm?x=b8ylmVJ,b4bG84ht (2 of 3) [1/11/2007 9:34:09 AM]
4. Effective Online Automotive Sales
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
NEWS
Interview with Ralph Paglia of Courtesy Chevrolet
The Intelligent Approach to Challenges Big and Small
The Dealix Dealer Newsletter recently
sat down with Ralph Paglia, CRM/e-
business director at Courtesy Chevrolet,
consistently one of the top Chevrolet
dealers in the country. A well-known
expert in online automotive sales, Ralph
shared so many best practices with us
that we decided to publish his advice
over the course of two issues. In this
first installment, Ralph talks about
adapting to market trends and
competing with the imports.
[FULL STORY]
Third Party Auto Sites: the Trusted Source for Online
Car Buyers
Interview with KBB’s Manager of Automotive Partners Sherrell
INSIDE Kovach
Interview with Ralph
Paglia of Courtesy There’s no doubt about it: with the Internet, today’s car
Chevrolet buyers have a wealth of options at their finger tips. OEM
Third Party Auto Sites: websites, dealership sites, and independent, third party auto
the Trusted Source for sites all promise the quintessential “user experience” to entice
Online Car Buyers
car buyers into their worlds. While having your own website
Want to Sell More Cars has become a necessity for today’s dealerships, and no one is
More Efficiently?
going to say no to subsidized leads from their OEM, the best
Ask Gilbert: Getting Buy-
In from the GM
third party auto sites continue to win the hearts of consumers
as a “trusted source” for information - and a great source of
What Drives “Dealer
Satisfaction”?
leads for dealers. We spoke with Kelley Blue Book’s manager
The Annual “Bad Leads”
of automotive partners, Sherrell Kovach, who talked about
List why this is, and how premium third party auto sites continue
to be on the cutting edge when it comes to consumer
experience and lead generation.
http://news.dealix.com/index000152060.cfm?x=b8ylmVJ,b4bG84ht,w (1 of 5) [1/11/2007 9:34:12 AM]
5. Effective Online Automotive Sales
Metro Areas with the
[FULL STORY]
Fastest Close Times of
Q3 2006
Internet Training and
Industry Reminders Want to Sell More Cars More Efficiently?
Previously in the Dealix Check Out this Movie to See How You Can
Dealer Newsletter
View a Movie to See What’s the remedy for the sales
How Dealix Can Help challenges that dealers are
You Sell More Cars facing today? Connecting with
SUBSCRIBE as many car buyers on the
Subscribe to the Dealix
Internet as possible. Dealix
Dealer Newsletter. Enter helps you do this by bringing
your email address in the
box below and we'll add
you the Highest Quality Leads in
you to the list: the industry, Superior Service,
and Dealer Control FeaturesSM.
Now we have even more great
ways to help you sell more
Add Remove
vehicles more efficiently. Click
Submit
here to see a short movie
on Dealix's award-winning New
ARCHIVE Car Leads Program, and learn
Effective Online more about the provider that
Automotive Sales dealers rated Highest in Overall Dealer Satisfaction in the
November 2006
2006 J.D. Power and Associates Dealer Satisfaction with
Effective Online
Automotive Sales
Online Buying Services StudySM. View the Flash movie.
October 2006
Effective Online
Automotive Sales
September 2006
Ask Gilbert: Getting Buy-In from the GM
Effective Online How to Save Your Internet Leads & Your Department
Automotive Sales by Gilbert Chavez
August 2006
Gilbert Chavez is Internet director
[MORE] for the Phil Long dealerships of
Colorado, the largest privately-
Visit us at:
owned dealer group in that state.
www.dealix.com Many dealers turn to Gilbert for
to see how dealers advice about their dealerships and
rank the new car
lead providers how to be successful with Internet
and to get more sales. Gilbert frequently shares his
success strategies
from experts in responses with the Dealix Dealer Newsletter. Here's the latest.
online auto sales.
[FULL STORY]
http://news.dealix.com/index000152060.cfm?x=b8ylmVJ,b4bG84ht,w (2 of 5) [1/11/2007 9:34:12 AM]
6. Effective Online Automotive Sales
What Drives “Dealer Satisfaction”?
Interview with J.D. Power's Senior Analyst Min Cho
In September, J.D. Power and Associates (JDPA) announced the results of its
2006 Dealer Satisfaction with Online Buying Services StudySM, and in the
October issue of the Dealix Dealer Newsletter, we spoke with former JDPA
senior director Dennis Galbraith and senior analyst Min Cho to learn more
about the study's findings. This month, we continued the conversation with
Min Cho to gain a better understanding of the factors that make up “dealer
satisfaction.”
[FULL STORY]
The Annual “Bad Leads” List
Even with State-of-the-Art Scrubbing, the Jokers Keep Coming
Since we first published our list of
"bad lead names" in the Dealix
Dealer Newsletter back in November
2001, Dealix’s lead scrubbing
technology has become more
efficient, so our real people quality
team rarely has to deal "up-front
and personal" with questionable
leads that come through our
system. Yet, in keeping with
tradition, our Dealix sales reps, and
even some of our dealers, continue
to send us bad lead names, or
"leads that lead no where,"
throughout the year. So, without
further ado, here's the 2006 list of
really bad leads - and no doubt, they're all in the market for a
Dodge Viper.
[FULL STORY]
http://news.dealix.com/index000152060.cfm?x=b8ylmVJ,b4bG84ht,w (3 of 5) [1/11/2007 9:34:12 AM]
7. Effective Online Automotive Sales
Metro Areas with the Fastest Close Times of Q3 2006
Top Dealers Beating the Average by Weeks
What are they putting in the water in these ten metro areas? Two weeks or
less - that’s how quickly, on average, they’re closing their Internet leads. It’s
the result of a combination of factors, no doubt, including strong leads, skilled
salespeople, and finely-tuned sales processes.
[FULL STORY]
Internet Training and Industry Reminders
Upcoming Workshops
Cobalt's Breakfast of Champions Workshop Series -
What to look forward to in 2007
Click Full Story for details.
[FULL STORY]
Previously in the Dealix Dealer Newsletter
November 2006
"Owner Marketing” via Email Marketing
Bergstrom Automotive: United When It Comes to the
Internet
Holding on to Slippery Leads
Fine-Tune Your Online Used Car Business: Generation Y
Vehicles Generating the Most Leads in Q3 2006
October 2006
Anderson Auto Group: High Sales in Rural Markets
2006 J.D. Power and Associates Dealer Satisfaction with
Online Buying Services StudySM
10 Best Practices for Responding to Phone Leads
Email or Phone? Don’t Let the Customer Decide
http://news.dealix.com/index000152060.cfm?x=b8ylmVJ,b4bG84ht,w (4 of 5) [1/11/2007 9:34:12 AM]
9. Effective Online Automotive Sales: Interview with Ralph Paglia of Courtesy Chevrolet
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME Interview with Ralph Paglia of Courtesy Chevrolet
CONTENTS The Intelligent Approach to Challenges Big and Small
Interview with Ralph The Dealix Dealer Newsletter recently sat
Paglia of Courtesy down with Ralph Paglia, CRM/e-business
Chevrolet director at Courtesy Chevrolet, consistently
Third Party Auto
one of the top Chevrolet dealers in the
Sites: the Trusted country. A well-known expert in online
Source for Online Car automotive sales, Ralph shared so many best
Buyers practices with us that we decided to publish
his advice over the course of two issues. In
Want to Sell More this first installment, Ralph talks about
Cars More Efficiently?
adapting to market trends and competing with
Ask Gilbert: Getting the imports.
Buy-In from the GM
What Drives “Dealer
Dealix Dealer Newsletter (DDN): Thanks
Satisfaction”?
for taking the time to share some of your
experience in online auto sales with our
The Annual “Bad readers, Ralph. According to a recent survey by Cobalt and RL Polk, 56% of new
Leads” List car leads wound up as sales; but only 8% of these sales took place at the
Metro Areas with the dealership where the lead was first submitted. On top of this, 34% of these
Fastest Close Times buyers wound up with a different model - and frequently a used car. In your
of Q3 2006 opinion, why is this happening? What can dealers do to make that original sale?
Internet Training and
Industry Reminders
Ralph Paglia (RP): At Courtesy Chevrolet, we handle over 5,000 leads per
month, and we get those leads from a wide variety of resources - so we are
Previously in the uniquely positioned to spot trends in the nature of these leads. What we’ve seen
Dealix Dealer is an evolving landscape of lead generating business models and strategies that
Newsletter have contributed to the “Fickle Prospect” syndrome.
View a Movie to See
How Dealix Can Help My explanation of why so many leads wind up elsewhere is simple. Over the past
You Sell More Cars 10 years, shopping online for a car has become mainstream, and so many
customers are submitting multiple leads to multiple dealers simply because it’s so
SUBSCRIBE easy to do. If a single customer submits five leads to five different dealers
representing five different brands, then 80% of those dealerships will experience
a perceived failure to close the sale. However, we still need to keep in mind that
with Internet leads, the cost per sale is generally lower than with traditional
advertising. Where before, we could assume that car buyers were viewing many
different ads and different brands in newspaper ads, with Internet leads – we can
actually measure that behavior. Consumers love choice.
On the other hand, seeing new car leads ending up as used car sales is nothing
new. It’s just that the explosion of Internet leads is making it much more visible.
Those of us who grew up selling cars have long known the value of switching a
new car buyer to a used car. “Switch to get rich!” we used to say - referring to
http://news.dealix.com/e_article000706890.cfm?x=b8ylmVJ,b4bG84ht,w (1 of 3) [1/11/2007 9:34:13 AM]
10. Effective Online Automotive Sales: Interview with Ralph Paglia of Courtesy Chevrolet
Subscribe to the Dealix the greater gross potential on the sale of used vehicles.
Dealer Newsletter.
Enter your email Now let’s look at the question of lead defection to competing products. The
address in the box number of cars sold each year in the US has been holding steady at around 17
below and we'll add
you to the list:
million. With lead volume increasing at the same time, it’s inevitable that the rate
at which dealers lose leads to other brands will increase.
Don’t think my point is that dealers should be comfortable with high loss rates.
But you have to look at the causes behind these rates and figure out where you
Add Remove can have an impact. For example, at Courtesy Chevrolet we’ve recently modified
Submit our lead management processes to acknowledge the reality that most leads wind
up buying a different car from the one they initially said they wanted. We’re now
following up with a second round of price quotes for certified pre-owned vehicles -
quotes selected based on the lead’s original inquiry and any information collected
by the Internet sales specialist.
DDN: Given the huge array of choices buyers are presented with online, it’s easy
to understand a certain amount of fickleness. But one thing we’ve learned in our
research is that a dealer’s ability to connect with online buyers exerts a powerful
influence over where and what they wind up buying.
As a very successful dealer, you’ve no doubt developed some really effective
ways to make this connection. This is probably all the more true, since you’re
doing very well selling a domestic brand at a time when domestics are a tougher
sell. What advice would you give to domestic dealers who are struggling to
improve their Internet business?
RP: At the risk of giving away the secret sauce, I’ll tell you that one of the most
effective ways for domestic dealers to increase sales is to aggressively pursue
buyers who are considering Asian brands and competing domestic brands. We
take great pride in convincing Toyota and Nissan buyers to consider a Chevy. We
use search engine marketing to target customers shopping for competing brands.
We bid for keywords related to these brands, and we place our ads on sites
devoted to these brands. Targeted campaigns of this kind can push Corolla
buyers to consider a Cobalt, Sequoia buyers to consider a Tahoe, and so on.
Something else we do that makes an enormous difference is using a “triage” lead
management process. Instead of making random or round-robin assignments, we
assign leads to a specific Internet sales specialist based on the leads’
characteristics and that sales specialist’s historical strengths. Then we have a
customer service representative in our BDC contact every unsold lead 72 hours
after it comes in, in an attempt to get the customer to visit the dealership. Then,
a third person follows up three days later, if there is still no appointment
registered in our CRM system. Multiple interactions early in the process ensure
that we win our fair share of deals with buyers who are deeper in the sales
funnel. Involving additional people in those interactions serves as a safety net
that keeps leads from slipping through the cracks.
Dealers have to stay focused on a basic fact that’s part of everything we do at
Courtesy Chevrolet: anytime you can replace randomness with a process that’s
geared to a desired outcome, you have a greater opportunity to optimize sales
results.
We’ll continue our conversation with Ralph Paglia next month.
http://news.dealix.com/e_article000706890.cfm?x=b8ylmVJ,b4bG84ht,w (2 of 3) [1/11/2007 9:34:13 AM]
12. Effective Online Automotive Sales: Third Party Auto Sites: the Trusted Source for Online Car Buyers
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME Third Party Auto Sites: the Trusted Source for Online Car
CONTENTS Buyers
Interview with KBB’s Manager of Automotive Partners Sherrell Kovach
Interview with Ralph
Paglia of Courtesy
Chevrolet There’s no doubt about it: with the Internet, today’s car buyers
Third Party Auto
have a wealth of options at their finger tips. OEM websites,
Sites: the Trusted dealership sites, and independent, third party auto sites all
Source for Online Car promise the quintessential “user experience” to entice car buyers
Buyers
into their worlds. While having your own website has become a
Want to Sell More necessity for today’s dealerships, and no one is going to say no
Cars More Efficiently?
to subsidized leads from their OEM, the best third party auto
Ask Gilbert: Getting
sites continue to win the hearts of consumers as a “trusted
Buy-In from the GM
source” for information - and a great source of leads for dealers.
What Drives “Dealer
Satisfaction”?
We spoke with Kelley Blue Book’s manager of automotive
partners, Sherrell Kovach, who talked about why this is, and how
The Annual “Bad
Leads” List premium third party auto sites continue to be on the cutting
Metro Areas with the
edge when it comes to consumer experience and lead
Fastest Close Times generation.
of Q3 2006
Internet Training and Dealix Dealer Newsletter (DDN): Thanks for taking the time
Industry Reminders to share your perspective on why third party auto sites are so
Previously in the important for dealers, Sherrell. Why do you think consumers
Dealix Dealer
choose third party auto sites, and do you see their role changing
Newsletter
in the coming years, as dealerships continue to improve their
View a Movie to See
How Dealix Can Help
own websites?
You Sell More Cars
Sherrell Kovach (SK): Third party auto sites allow the
SUBSCRIBE
consumer to receive unbiased information and education, not
only about the car they are interested in, but others that may
compare. Furthermore, a consumer is given the opportunity to
choose a myriad of dealers either by name, distance, etc. to
accommodate their needs. While this may bother dealers at first,
the fact is that consumers love choice - just like they like to shop
at auto rows or auto malls. And, choice attracts more car buyers.
KBB averages 10-13 million unique visitors per month who are
browsing new and used car value information – this is something
http://news.dealix.com/e_article000707708.cfm?x=b8ylmVJ,b4bG84ht,w (1 of 4) [1/11/2007 9:34:15 AM]
13. Effective Online Automotive Sales: Third Party Auto Sites: the Trusted Source for Online Car Buyers
Subscribe to the Dealix dealers want to tap into.
Dealer Newsletter.
Enter your email
address in the box In order to keep car buyers coming back, third party sites need
below and we'll add
you to the list:
to provide a superior consumer experience. For instance, we
ensure that what consumers get is: 1 – intelligent and data-
driven, with a fresh intuitive interface focused on usability, easy
navigation, dynamic content, and the latest interactive Web
Add Remove applications. These include virtual showrooms, product specs,
Submit side-by-side comparisons, and third-party reviews. And, 2, we
have a customer-centric focus. Effective Internet strategies that
identify and convert consumers are not enough. This must be
supported by a comprehensive approach to service the buyer
throughout the customer life-cycle. Continually providing new
products and services and acting as a resource helps to nourish
the relationship, which ultimately keeps consumers coming back,
and increases the performance of the site and brand.
The other thing consumers like about third party sites is that
they don’t feel a heavy pressure to buy, just the satisfaction in
knowing that they, the consumer, have been helped through
phase 1 of the car-buying experience and with any luck, phase 2
will go as smoothly. And, because of this no hassle experience,
sooner rather than later, they’ll find themselves driving home in
their brand new car.
More and more dealers will unavoidably shift to the Internet
because of the efficiencies it provides, and because this is where
the customers are. They need state-of-the art websites, and they
also need leads from third party sites.
DDN: How are third party auto sites, like KBB, able to generate
such high quality, ready-to-buy leads?
SK: In order to create a strong lead, it’s imperative to, not only
be recognized as the “trusted resource,” but to create a feeling
of comfort to the consumer, so there is no hesitation when
they’re asked to provide their personal information. As well, you
need to empower the consumer to do their own research and
further define their own wants. Once a lead is submitted, it is
imperative for both the third party site and the lead provider to
“scrub” that lead – ensuring the information is genuine and
accurate, and, most importantly, delivered to those dealers who
are ready and willing to assist the consumer to their fullest
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14. Effective Online Automotive Sales: Third Party Auto Sites: the Trusted Source for Online Car Buyers
capabilities.
DDN: From the vantage point of KBB, what constitute a strong
lead?
SK: A strong lead, or a high quality lead, is submitted by an
active in-shopper buyer. The shopper has made it far enough
through the funnel to know what they want and where they are
willing to go to buy it. The more specific a lead is, the higher the
probability that it will close. But it’s up to the dealer to meet the
challenge of satisfying their new customer and turning a great
lead into a sale.
DDN: How does a third party site like KBB measure its
effectiveness?
SK: There are a variety of ways to measure effectiveness and
whether we’re meeting consumers’ needs. Surveys are the most
common these days; and there is also consumer satisfaction
indices, such a CSI scores, partner testing, and shared
information with others in the industry. For example, we get
feedback from Dealix that your dealers are closing their KBB
leads. Plus, on an individual basis, through visitor feedback and
simple word of mouth, we know we’re doing a good job.
DDN: Dealers today know that Internet customers are better
informed. Is this a blessing or a curse?
SK: Oddly enough, I find these days that many consumers try to
stump the sales person. I’m not quite sure if this is a negotiation
tactic, but nonetheless, with the amount of information available
on the Internet, it happens. So, it’s imperative for dealers to
know all the “ins and outs” of the cars they sell. The dealerships
I see flourish typically hold “walk-around” contests with their
sales people every month so they’re fully prepared for the
educated consumer. So, an informed customer can be a
headache for a dealer who is unprepared; or, they can represent
an easier sale to a dealer who is prepared, because they already
know what they want.
http://news.dealix.com/e_article000707708.cfm?x=b8ylmVJ,b4bG84ht,w (3 of 4) [1/11/2007 9:34:15 AM]
16. Effective Online Automotive Sales: Want to Sell More Cars More Efficiently?
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME Want to Sell More Cars More Efficiently?
CONTENTS Check Out this Movie to See How You Can
Interview with Ralph What’s the remedy for the sales
Paglia of Courtesy
challenges that dealers are facing
Chevrolet
today? Connecting with as many car
Third Party Auto
Sites: the Trusted
buyers on the Internet as possible.
Source for Online Car Dealix helps you do this by bringing
Buyers you the Highest Quality Leads in the
Want to Sell More industry, Superior Service, and
Cars More Efficiently?
Dealer Control FeaturesSM. Now we
Ask Gilbert: Getting have even more great ways to help
Buy-In from the GM
you sell more vehicles more
What Drives “Dealer
efficiently. Click here to see a short
Satisfaction”?
movie on Dealix's award-winning
The Annual “Bad
Leads” List New Car Leads Program, and learn
Metro Areas with the
more about the provider that dealers
Fastest Close Times rated Highest in Overall Dealer
of Q3 2006 Satisfaction in the 2006 J.D. Power and Associates Dealer
Internet Training and Satisfaction with Online Buying Services StudySM. View the
Industry Reminders
Flash movie.
Previously in the
Dealix Dealer [PRINTER FRIENDLY VERSION]
Newsletter
View a Movie to See
How Dealix Can Help
You Sell More Cars
SUBSCRIBE
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18. Effective Online Automotive Sales: Ask Gilbert: Getting Buy-In from the GM
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME Ask Gilbert: Getting Buy-In from the GM
CONTENTS How to Save Your Internet Leads & Your Department
Interview with Ralph Gilbert Chavez is Internet director for
Paglia of Courtesy
the Phil Long dealerships of Colorado,
Chevrolet
the largest privately-owned dealer
Third Party Auto
Sites: the Trusted
group in that state. Many dealers
Source for Online Car turn to Gilbert for advice about their
Buyers dealerships and how to be successful
Want to Sell More with Internet sales, and he frequently
Cars More Efficiently? shares his responses with the Dealix
Ask Gilbert: Getting Dealer Newsletter. Here’s the latest:
Buy-In from the GM
What Drives “Dealer
Satisfaction”?
Dear Gilbert,
The Annual “Bad
Leads” List
I have been working in our Internet sales department for two
Metro Areas with the
Fastest Close Times
years, and have been director for six months. There was
of Q3 2006 a revolving door of directors for quite some time. I was the top
Internet Training and Internet sales rep for over a year, and they convinced me to
Industry Reminders take the helm - after I turned them down a couple of times. To
Previously in the be honest, I was reluctant at first because there is a hell of a lot
Dealix Dealer of work to do, there was high turnover, and I was concerned
Newsletter
about the level of support for what we wanted to do
View a Movie to See from management.
How Dealix Can Help
You Sell More Cars
Now, I have two other Internet reps in my department. Our
SUBSCRIBE numbers have been respectable since I took over. The problem
is - our owner, who is also the GM, has ordered me to cancel all
my third party leads. Our return on these leads has been good.
My total cost was $500 for one lead source, and we averaged
$2,500 gross. I do better with the leads from my dealership's
website and our factory leads, but I’ve found that having a
varied diet of as many good leads as we can get is the key to
more sales. But, our store sales across the board have been
down for both new and used. However, my GM has not slowed
down his print, radio, or TV spend. He goes way back with his
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19. Effective Online Automotive Sales: Ask Gilbert: Getting Buy-In from the GM
Subscribe to the Dealix newspaper rep, and, really, I think he keeps these things more
Dealer Newsletter.
Enter your email out of fear and habit than anything. I seriously do not want to
address in the box lay off my team. What can I do to save my department and
below and we'll add
you to the list: convince our GM that the Internet is the wrong place to cut our
ad budget?
Thanks,
Add Remove
Submit Down, But Not Out
Dear Down,
When times get tough, people tend to stick with methods they’re
comfortable with. Your boss sounds a little like Charlie Brown’s
friend Linus with his security blanket, or a dateless person at
home alone on a Saturday night, eating a tub of ice cream. The
blanket isn’t going to protect Linus, the ice cream won’t help a
lonely person get a date (probably just the opposite), and
traditional advertising isn’t going to fix your dealership’s slow
sales. Your GM would resist cutting back under the best of
circumstances. He’s going to resist even more in the current
situation because traditional advertising is familiar and
comforting. It’s the only way he knows to bring people into the
showroom.
You’re facing an uphill battle, my friend. You’re going to need a
solid plan to win this fight and may have to pull a Beastie Boys:
“You gotta fight for your right to party!” Before you begin, look
at it from your GM’s perspective. Business is slow, and he has to
cut costs somewhere. In his mind, the Internet is the easiest
place to do it – it’s still seems new and experimental. Other
managers may be pushing him to advertise more in their
departments, and they may be pulling him away from the
Internet to protect their own budgets.
I have always said the greatest thing about Internet sales is
that it's measurable - and the worst thing about Internet sales is
that it's measurable. In other words, you can’t hide poor
performance. On the other side of the coin, traditional media is
often difficult, if not impossible, to measure the true ROI on.
When you sit down with your boss, lay it all out in dollars and
cents: what you’re paying for leads, and what this outlay is
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21. Effective Online Automotive Sales: What Drives “Dealer Satisfaction”?
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME What Drives “Dealer Satisfaction”?
CONTENTS Interview with J.D. Power's Senior Analyst Min Cho
Interview with Ralph In September, J.D. Power and
Paglia of Courtesy Associates (JDPA) announced
Chevrolet the results of its 2006 Dealer
Third Party Auto
Satisfaction with Online Buying
Sites: the Trusted Services StudySM, and in the
Source for Online Car October issue of the Dealix
Buyers Dealer Newsletter, we spoke
with former JDPA senior
Want to Sell More
director Dennis Galbraith and
Cars More Efficiently?
senior analyst Min Cho to learn
Ask Gilbert: Getting more about the study's
Buy-In from the GM findings. This month, we
What Drives “Dealer continued the conversation
Satisfaction”? with Min Cho to gain a better
understanding of the factors
The Annual “Bad that make up “dealer
Leads” List
satisfaction.”
Metro Areas with the
Fastest Close Times Dealix Dealer Newsletter
of Q3 2006 (DDN): Thanks, Min, for
Internet Training and
taking the time to speak with
Industry Reminders us. To get us started, can you
remind our readers of the main
Previously in the areas of dealer satisfaction
Dealix Dealer that were explored by the survey? How did you determine the relative
Newsletter importance of these areas?
View a Movie to See
How Dealix Can Help Min Cho (MC): The survey measured dealer satisfaction in four key areas:
You Sell More Cars Business Generation, Dealer Support and Service, Lead Transmission, and Fees.
Each of these, in turn, was broken down into other components. None was
SUBSCRIBE assigned any particular level of importance in advance; rather, we used a
statistical technique called regression analysis to calculate how important each
was based on the extent to which it predicted dealers’ assessment of their overall
satisfaction. This technique makes it possible to determine the proper weight to
assign each factor, with a very high degree of accuracy. So, dealers were able to
let us know what matters most to them.
DDN: Business Generation was far and away the most important factor,
accounting for 53% of overall satisfaction. According to the survey, what were
the factors comprising Business Generation?
MC: Lead quality and lead quantity accounted for 30% and 28%, respectively, in
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23. Effective Online Automotive Sales: The Annual “Bad Leads” List
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME The Annual “Bad Leads” List
CONTENTS Even with State-of-the-Art Scrubbing, the Jokers Keep Coming
Interview with Ralph
Paglia of Courtesy
Chevrolet
Since we first published our list of
"bad lead names" in the Dealix
Third Party Auto
Sites: the Trusted Dealer Newsletter back in November
Source for Online Car 2001, Dealix’s lead scrubbing
Buyers technology has become more
Want to Sell More efficient, so our real people quality
Cars More Efficiently?
team rarely has to deal "up-front and
Ask Gilbert: Getting personal" with questionable leads
Buy-In from the GM
that come through our system. Yet,
What Drives “Dealer
in keeping with tradition, our Dealix
Satisfaction”?
sales reps, and even some of our
The Annual “Bad
Leads” List
dealers, continue to send us bad lead
names, or "leads that lead no
Metro Areas with the
Fastest Close Times where," throughout the year. So,
of Q3 2006 without further ado, here's the 2006
Internet Training and list of really bad leads - and no
Industry Reminders doubt, they're all in the market for a
Previously in the Dodge Viper.
Dealix Dealer
Newsletter
Al Bino
View a Movie to See
Angie O'Plasty
How Dealix Can Help
You Sell More Cars Anne Teak
Aziz Nowarranty
SUBSCRIBE
Barb Dwyer
Borden Drousy
Bjorn Liar
Brighton Early
Colin Response
Constance Noring
Dan Saul Knight
Harry Mouval
Iona Ford
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25. Effective Online Automotive Sales: The Annual “Bad Leads” List
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26. Effective Online Automotive Sales: Metro Areas with the Fastest Close Times of Q3 2006
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME Metro Areas with the Fastest Close Times of Q3 2006
CONTENTS Top Dealers Beating the Average by Weeks
Interview with Ralph What are they putting in the water in these ten metro areas? Two weeks or less - that’s
Paglia of Courtesy how quickly dealers in these areas, on average, are closing their Internet leads. No
Chevrolet doubt, it’s the result of a combination of factors - including quality leads, highly skilled
Third Party Auto
salespeople, and finely-tuned sales processes. It’s even more impressive when we
Sites: the Trusted consider an industry-wide stat: of 1.1 million leads studied, 42% closed within 30 days
Source for Online and 68% closed within 90 days.[1] These dealers are lopping weeks, if not months, off
Car Buyers that figure.
Want to Sell More
Cars More The advantage dealers in these areas are reaping by closing sales fast is a big one.
Efficiently? Studies show that closing quickly is a critical part of preventing brand, and dealership,
defection. Time keeps on slipping, slipping, slipping, you know - and so do customers.
Ask Gilbert: Getting
Buy-In from the GM
What Drives “Dealer Metro Areas with the Fastest Closing Times
Satisfaction”? Average Closing
The Annual “Bad Q3 Rank Metro Area Times in Days
Leads” List 1 Washington, DC - Baltimore, MD 12
2 San Francisco – Oakland - San Jose, CA 12
Metro Areas with the
Fastest Close Times 3 Los Angeles – Riverside - Orange County, CA 13
of Q3 2006 4 Chicago, IL - Gary, IN - Kenosha, WI 13
5 Boston-Worcester, MA - Lawrence, NH 13
Internet Training
and Industry
6 Miami-Fort Lauderdale, FL 13
Reminders New York-Long Island, NY - Northern New
7 Jersey 14
Previously in the
Philadelphia, PA – Wilmington, DE -Atlantic
Dealix Dealer
8 City, NJ 14
Newsletter
9 Houston-Galveston-Brazoria, TX 14
View a Movie to See
10 Dallas-Fort Worth, TX 14
How Dealix Can Help
You Sell More Cars
SUBSCRIBE
The Metro Areas with the Fastest Closing Times Ranking is based on the average time it
takes dealerships in the major metro areas of the U.S. to close their Dealix Internet
sales leads. Results are derived from phone surveys of consumers who submitted
leads during the third quarter of 2006. The closing time period begins on the day the
dealer receives the lead and ends on the day the consumer says he or she bought the
vehicle. The smallest sample size per metro area was 100 surveys. This study was
conducted by Dealix Business IntelligenceSM.
[1] 2006 Automotive Industry and Dealership e-Business Performance Study by The
Cobalt Group with R.L. Polk.
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28. Effective Online Automotive Sales: Internet Training and Industry Reminders
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME Internet Training and Industry Reminders
CONTENTS Upcoming Workshops
Interview with Ralph
Paglia of Courtesy
Chevrolet
The Cobalt Group Presents the Breakfast of Champions
Workshop Series
Third Party Auto
Sites: the Trusted
Source for Online Car
Buyers 2006 Seminars
Want to Sell More December 12th Indianapolis, IN Indianapolis Marriott Downtown
Cars More Efficiently?
Ask Gilbert: Getting
2007 Seminars
Buy-In from the GM
What Drives “Dealer January 9th Phoenix, AZ Sheraton Cresent Hotel
Satisfaction”?
The Annual “Bad January 16th Miami, FL Embassy Suites Ft. Lauderdale
Leads” List
January 23rd Houston, TX TBD
Metro Areas with the
Fastest Close Times February 13th San Diego, CA TBD
of Q3 2006
February 20th San Francisco, CA TBD
Internet Training and
Industry Reminders
March 6th Seattle, WA TBD
Previously in the March 13th Nashville, TN TBD
Dealix Dealer March 20th Westchester, NY TBD
Newsletter
April 10th San Antonio, TX TBD
View a Movie to See
How Dealix Can Help April 17th Jacksonville, FL TBD
You Sell More Cars
May 8th Denver, CO TBD
SUBSCRIBE May 15th Orlando, FL TBD
May 22nd New Haven, CT TBD
June 12th San Jose, CA TBD
June 19th Portland, OR TBD
July 10th Dallas, TX TBD
July 17th Philadelphia, PA TBD
July 24th St. Louis, MO TBD
August 7th Los Angeles, CA TBD
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30. Effective Online Automotive Sales: Previously in the Dealix Dealer Newsletter
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME Previously in the Dealix Dealer Newsletter
CONTENTS November 2006
Interview with Ralph "Owner Marketing” via Email Marketing
Paglia of Courtesy
Chevrolet
Bergstrom Automotive: United When It Comes to the
Third Party Auto
Sites: the Trusted Internet
Source for Online Car
Buyers Holding on to Slippery Leads
Want to Sell More
Cars More Efficiently?
Fine-Tune Your Online Used Car Business: Generation Y
Ask Gilbert: Getting
Buy-In from the GM
Vehicles Generating the Most Leads in Q3 2006
What Drives “Dealer
Satisfaction”?
The Annual “Bad October 2006
Leads” List
Metro Areas with the
Anderson Auto Group: High Sales in Rural Markets
Fastest Close Times
of Q3 2006
Internet Training and
2006 J.D. Power and Associates Dealer Satisfaction with
Industry Reminders Online Buying Services StudySM
Previously in the
Dealix Dealer 10 Best Practices for Responding to Phone Leads
Newsletter
View a Movie to See Email or Phone? Don’t Let the Customer Decide
How Dealix Can Help
You Sell More Cars
Stop Internet Leads from Slipping Away
SUBSCRIBE
The Value of Trade-Ins
Dealers, Factories Spending Less on Print Ads, More
Online
Make the Customer Come to You
Top Internet Teams of Q3 2006
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32. Effective Online Automotive Sales: View a Movie to See How Dealix Can Help You Sell More Cars
December 2006 Effective Online Automotive Sales VOLUME 5 ISSUE 12
HOME View a Movie to See How Dealix Can Help You Sell More
CONTENTS Cars
Interview with Ralph
Paglia of Courtesy
Chevrolet
Third Party Auto
Sites: the Trusted
Source for Online Car
Buyers
Want to Sell More
Cars More Efficiently?
Ask Gilbert: Getting
Buy-In from the GM
What Drives “Dealer
Satisfaction”?
The Annual “Bad
Leads” List
Metro Areas with the
Fastest Close Times
of Q3 2006
Internet Training and
Industry Reminders
Previously in the
[PRINTER FRIENDLY VERSION]
Dealix Dealer
Newsletter
View a Movie to See
How Dealix Can Help
You Sell More Cars
SUBSCRIBE
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