David Kain at J.D. Power and Associates Automotive Internet Roundtable


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David Kain at J.D. Power and Associates Automotive Internet Roundtable

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  • June 4 & 5, 2007
  • June 4 & 5, 2007
  • June 4 & 5, 2007
  • David Kain at J.D. Power and Associates Automotive Internet Roundtable

    1. 1. Internet Systems & Search <ul><li>Utilizing CRM Tools to enhance the Internet sales process </li></ul><ul><li>The power of Search Engines </li></ul><ul><li>SEO/SEM – Differences in strategy and the challenges for dealers </li></ul>
    2. 2. Credentials <ul><li>David Kain </li></ul><ul><li>Owner of Kain Automotive, Inc., Automotive Sales Training specializing in Internet Sales and Automotive Business Development Centers </li></ul><ul><li>Co-Founder and COO of FordDirect.com </li></ul><ul><li>18 years automotive retail experience; partner in 2 stores </li></ul><ul><ul><li>Jack Kain Ford </li></ul></ul><ul><ul><li>Kain Family Ford Lincoln Mercury </li></ul></ul><ul><li>12 years Dealer Principal </li></ul><ul><li>Served on 2000 Ford National Dealer Council </li></ul><ul><li>BBA in Marketing and Management from Eastern Kentucky University </li></ul>
    3. 3. Internet Selling System Imbedding your Internet Selling System into your CRM tool
    4. 4. Internet Selling System Elements <ul><li>Marketing and lead generation </li></ul><ul><li>Lead handling process </li></ul><ul><li>Pricing strategies </li></ul><ul><li>Trade handling </li></ul><ul><li>Financing </li></ul><ul><li>Sold/Unsold follow-up </li></ul>
    5. 5. Your Selling System is your foundation <ul><li>Once you have a system designed and in place you can build from there </li></ul>I hope you have a proven system you can bring with you Well….I was hoping you had a system We use a proven system and with the right effort you will succeed I am glad to hear that – Your system is why I am interested
    6. 6. Once your system elements are in place… <ul><li>You can… </li></ul><ul><ul><li>Build your team to manage the system </li></ul></ul><ul><ul><li>Develop your marketing plan to fuel the system with prospects </li></ul></ul><ul><ul><li>Select your Customer Relationship Management (CRM) tool to support your system </li></ul></ul>
    7. 7. Your CRM tool should support YOUR System – <ul><li>Select the right tool for your system </li></ul><ul><li>Imbed your schedules, templates, scripts </li></ul><ul><li>Ensure your sales managers understand the tool and supervise the process daily </li></ul>not the other way around
    8. 8. Easy to read Daily Dashboard
    9. 9. Automatic Task Scheduler
    10. 10. Easy to access Call Scripting
    11. 11. Easy to manage Template Library
    12. 12. Just keep in mind… <ul><li>Don’t change your Internet Selling System to fit your CRM </li></ul><ul><li>Change your CRM to meet your Selling System </li></ul>
    13. 13. The most critical element of any system is a steady stream of PROSPECTS Your best source? Your own website or equivalent using SEARCH
    14. 14. Internet Search The power of Search Engines
    15. 15. SEO/SEM – Differences in strategy and the challenges for dealers
    16. 16. Working with Search Spiders is complicated and can be expensive It is critical that you or the company you work with understand the complexity of all forms of SEARCH Species: Arachnida - Searchus Search Engine Spider
    17. 17. Determining your Search Strategy <ul><li>What do you want the campaign to accomplish? </li></ul><ul><li>Do you want customers to visit the showroom, call or fill out a form? </li></ul><ul><li>Do you want to focus on new inventory or pre-owned, or on special finance? </li></ul><ul><li>If multi-branded - What brands do you want to focus on? </li></ul><ul><li>Do you want to focus more on service appointments or parts and accessories? </li></ul>
    18. 18. There are 3 forms of search results =Organic Search =Vertical Search =Paid Search <ul><li>Original Search Page </li></ul><ul><li>General or National </li></ul><ul><li>Algorithmic </li></ul><ul><li>Query Specific </li></ul><ul><li>The Future of Search </li></ul><ul><li>Algorithmic </li></ul><ul><li>12 – 14 Links </li></ul><ul><li>Advertising </li></ul><ul><li>Pay Per Click </li></ul>
    19. 19. Top things to know about SEO (Also known as organic search, natural & free listings…) <ul><li>All search engines have organic rankings from “crawling” the web </li></ul><ul><li>Organic optimization is about influencing, not controlling rankings </li></ul><ul><li>Optimizing Organic Search is Step 1 in a smart search strategy </li></ul>Organic Search Results
    20. 20. Top Things to Know About Vertical Search (Also known as business directory, local search, one box…) <ul><li>Yahoo and Google display vertical results with search listings </li></ul><ul><li>Listings can be influenced through business submissions </li></ul><ul><li>Vertical Search is complimentary to paid and organic efforts </li></ul>Vertical Search Results
    21. 21. Top Things to Know About Paid Search (Also known as pay-per-click, search engine marketing (SEM), & paid placement) <ul><li>All major search engines offer Paid Search  It pays their bills! </li></ul><ul><li>Paid Search performance driven by bid strategy & campaign quality </li></ul><ul><li>Google & Yahoo paid ads are run on dozens of network sites! </li></ul>Paid Search Results
    22. 22. Organic Search + Paid Search + Off-Line Advertising = Seattle Area Honda Dealer “ Klein Honda – Your Customer Care Dealer!” Appearing in both paid and organic search doubles the likelihood that the consumer will choose to visit your website. Consistency of message across media nearly doubles website conversion rates according to Cobalt. Best Way to Earn Consumer Trust / Attention
    23. 23. Once they click – where do they go? <ul><li>Dealer Websites </li></ul><ul><li>Landing Pages </li></ul><ul><li>Proxy Sites designed to mirror dealer sites </li></ul><ul><li>All 3 of these formats have advantages – you have to decide what works best for you </li></ul><ul><li>Ask your Search Provider about each one and the pros and cons </li></ul>
    24. 24. Not clicks – BUYERS!! <ul><li>Use a Search Provider that… </li></ul><ul><li>Demonstrates its ability to deliver high quality, ready-to-buy leads to your site </li></ul>
    25. 25. Transparent Reporting <ul><li>Reporting should be transparent reporting that is easy to read </li></ul>
    26. 26. Quantity versus Quality <ul><li>High click volumes could cover up quality </li></ul><ul><li>Quality happens when… </li></ul><ul><li>Deliver prospects to their preferred information </li></ul><ul><li>Direct prospects to your profit centers </li></ul><ul><li>Your search program should support your goals </li></ul>
    27. 27. Complexity arises from the combinations of keywords Bids are illustrative CPC = Cost per click 10 100 1,000 10,000 100,000 Chevrolet (2.01 CPC) Flint Chevrolet Dealer (1.02 CPC) Queries per Search Term Highly specific Low Occurrence Keywords Chevrolet Dealer (1.18 CPC) Find 2006 Chevrolet Cobalt (.10 CPC) 2006 Chevrolet Cobalt Dealer (.14 CPC) Search Terms Uniqueness High Volume (IP Targeted) Well Trafficked Keywords Increased Specificity Better Converting Keywords
    28. 28. But as keywords get more specific they convert better 10 100 1,000 10,000 100,000 Queries per Search Term Highly Specific Low click cost & highest conversion Search Term Uniqueness Conversion Rates <ul><ul><li>Highly specific “tail terms” result in more telephone calls to dealer </li></ul></ul><ul><ul><li>Those consumers are more ready to buy </li></ul></ul>High-Volume (IP Targeted) Higher click cost & average conversion Increased Specificity Average click cost & higher conversion
    29. 29. How should dealers pay for Search? <ul><li>Dealers should… </li></ul><ul><li>Shift budget from ineffective advertising </li></ul><ul><li>Continue to invest in TV, and Radio </li></ul><ul><li>And how much should they spend? </li></ul><ul><li>It depends on the market, the brand and your goals </li></ul><ul><li>We recommend in most markets starting at $1000 but be aware your name could drop off some days </li></ul>
    30. 30. BEWARE when selecting your provider <ul><li>Try to find one that that does not make you pay for clicks up front </li></ul><ul><ul><li>It could mean they don’t have the resources to cover the cost of the clicks as they occur </li></ul></ul><ul><ul><li>It may also mean that the service is less than confident that you’ll be happy with the results </li></ul></ul><ul><ul><li>Go for one that provides results first, then bills you accordingly </li></ul></ul>
    31. 31. Typical fee structures <ul><li>Set-up Fee </li></ul><ul><li>Fixed Fee or Management fee </li></ul><ul><li>Variable Fee </li></ul><ul><li>Ad Spend </li></ul>
    32. 32. Something to think about… <ul><li>Is it time for Search to become Pay for Performance? </li></ul><ul><li>Rather than provide money to the Search Company to do their best with the rankings </li></ul><ul><ul><li>How about you only have to pay if they achieve the planned results? </li></ul></ul>
    33. 33. In Summary <ul><li>Design and Implement your Internet Selling System </li></ul><ul><li>Select a tool that compliments and supports your system </li></ul><ul><li>Drive prospects into your system using Search </li></ul>
    34. 34. Thank You <ul><li>Contact Information: David Kain Office 1-866-546-3428 </li></ul><ul><li>Cell 859-533-2626 [email_address] www.KainAutomotive.com </li></ul>