Toyota Kansas City Region Dealer Summit - 2010

Kansas City Region – Toyota Motor Sales
January 13, 2010 Dealer Meeting
Automotive Digital MarketingInternet Sales Challenges
Toyota Dealers in 2010
Presented by Ralph Paglia
National Digital Marketing Strategy Consultant to Toyota Motor Sales, Inc.

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 ralph_paglia@adp.com www.ADMPC.com

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 KC Region Dealers3 Digital Marketing Performance Metrics reviewed and analyzed for results relative to national averages…
Traffic GenerationTotal volume of dealership website visitors
Conversion Rate Percent of website visitors who contact dealership
Lead Volume Total business opportunities generated from website

6 KC Region Dealers stood out as “Best in Class” Dealer Website Traffic Marketers
Toyota of Des Moines
Olathe Toyota
Superior Toyota
Molle Toyota
Cedar Rapids Toyota
Reliable Toyota

National Average

6 KC Region Dealers stood out as “Best in Class” Dealer Website Content Marketers
Performance Toyota of KC
MidWest Toyota
Rolling Hills Toyota
Crown Toyota
Molle Toyota
Eddy’s Toyota of Wichita

National Average

6 KC Region Dealers stood out as “Best in Class” Dealer Website Lead Generation
Molle Toyota
Eddies Toyota of Wichita
Adams Toyota
Toyota of Iowa City
Olathe Toyota
Performance Toyota of La Vista

Leads from Dealer Site Visitors*
KC Region Toyota Dealers November, 2009
(*KC Dealers with >1,000 visitors)
National Average

THE PROBLEM: Dealers currently see the Social Media and Online Ratings and Reviews Landscape as a bewildering array of brands and sites!

Social Marketing & Reputation Management Value
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

www.Automotive-Avenues.com
Dealer Sponsored Online Community

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.

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…

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!

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.

How hard is it to create your own Advertising Campaigns on Facebook?

Over a Million Facebook members within 50 miles of Kansas City…
Over the age of 18.

326,000 Facebook members within 50 miles of Kansas City…
Over the age of 21, and have a college degree.

980 Facebook members within 50 miles of Kansas City work for Hallmark…
Toyota Dealers can message them through Facebook Advertising and Fan pages.

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.

1,440 Facebook members within 50 miles of Kansas City work for Wal-Mart…

480 Facebook members within 50 miles of Kansas City work for DST Systems??

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…

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!

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?

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…

One Toyota Dealer in Missouri has seized the opportunity to get ahead of the rest with Reputation Management.

There is one of those Facebook links again… What happens when I click on it?

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…

Are Toyota Dealers more or less competitive than they were in the past as we go into the 2010 Auto Sales Recovery period?
How have the changes made in the Car Buying Process adopted by most Americans during the 2007 – 2009 Recession impacted Toyota dealer competitiveness?

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?

Does your dealership have an Internet Sales Team?
Do they execute effective Lead Response Process?
After spending so much money to get customer attention, why would we hit the brakes in the sales department?
“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.”
¹Mark Dixon Bünger; Forrester Research
January 13, 2010
Copyright © 2005 Ralph Paglia – All Rights Reserved

A: Increasing Closing Ratios is not “Just About” Response Times…
Q: Why the variations?

Impact of Dealer Lead Response Attributes on: Vehicle Purchase

Results Proven Best Practices

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

5 Lead Response Dealer Actions that Drive Lead-to-Sale conversions at 4 times higher rate
Direct customer phone contact made by dealer within first 8 business hours
Consumer received price quote(s) within first 8 business hours
Dealer confirmed availability of multiple vehicles within first 8 business hours
Dealers showed genuine interest (consumer perception)
Customer received contact from dealer more than once within first 24 hours after lead sent
(new study reconfirms close rate impact factors)
Source: Morpace 24 hour survey and RDR sales data

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 email
Send Email/SMS when Voicemails are left
Get “Real” email, SMS OK, social link during call
Unsold Lead Follow-up by Manager/3rd Party
Web Sales Calls routed to specific people
Showroom Appointment Reception Process!

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 ralph_paglia@adp.com www.ADMPC.com

Toyota Kansas City Region Dealer Summit - 2010

by Ralph Paglia on Apr 17, 2010

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Toyota Kansas City Region Dealer Summit - 2010 — Presentation Transcript