John Possumato Reviews ENG Automotive CRM Conference

1. Fleet-ing Thoughts Page 1 of 4
BlogThis!
Fleet-ing Thoughts
Adventures in the World of Automotive Fleet & Vehicle Remarketing
« Home | Vol. 2 No. 29 2006 IARA Summer Roundtable:I’m a... »
FRIDAY, SEPTEMBER 15, 2006
Vol. 2 No. 30
E.N.G’s 3rd Annual Executive Summit “Next
Generation Automotive CRM”: Identifying,
Attracting and Retaining Customers through
Search Strategies, Online Marketing and
Targeted Campaigns
Recently I was fortunate enough to attend the European Networking Group’s 3 rd Annual
Executive Summit “Next Generation Automotive CRM,” August 15th & 16, at the Marriott
Manhattan Beach, Manhattan Beach, California. The program focused on Internet-related
customer relationship management in the automotive sector, with seminars that included
expertise and “best practices” from both the manufacturer, media/consulting and retail
dealer perspective. Not long ago customer relationship management itself was a new topic
for automotive retailers, so to have a conference on Internet-enabled CRM shows you how
far dealers have come. Five years ago the manufacturers looked at the Internet as strange
new world, and dealers were outright hostile to those “twenty something” led companies
who were going to replace the franchise dealer. And for good reason – remember the lunacy
of “CarsDirect”, with a business model to buy vehicles from franchise dealers, replace the
new car dealer in the consumer service model and sell direct to the public and somehow
make money, hence the name “CarsDirect”…I couldn’t listen to it with a straight face back
then even after it raised $195M on the concept, one of the largest amounts raised for a the
start-up company back in 1999 if I’m not mistaken. That business model crashed and burned
before the Penske folks quietly brought it back to reality as a dealer lead generation tool.
This “Next Generation Automotive CRM” conference certainly updated me on the
tremendous evolution and advancement in using online and emerging media tools to refine
and enhance customer relationship management. In what seemed a very short time, we as
an industry have gone from skepticism of the Web to the “state of the art” in using online
leverage to build relationships, solicit new business and cost effectively manage growth and
build brand identity.
An Interesting Keynote (from an Interesting Company) and then
Vehicle Manufacturers’ Developments
The jury is still out on Malcolm Bricklin’s latest venture, Visionary Vehicles, which plans to
import a US version of the Chinese Chery cars. Bricklin was a founder of Subaru, and has
since had a string of less successful automotive ventures, including the ill-fated Yugo. But
the keynote address by Paul Lambert, President of the new company and a veteran
marketing executive, was very interesting.
Most of the rest of the day focused on how automotive manufacturers are using new media
as a method to communicate to, and build, customer and prospect interest and loyalty, and
the ability to measure the results of their new media programs. Christine MacKenzie,
Executive Director, Multi Brand Marketing & Agency Relations, Daimler Chrysler, gave a
presentation entitled “Emerging Media…The Leading Edge” with examples of what Daimler
Chrysler is doing in that regard (I like those bobble head Jeep commercials she ran, that
http://fleet-ingthoughts.blogspot.com/2006/09/vol.html 11/15/2006

2. Fleet-ing Thoughts Page 2 of 4
Chrysler is doing in that regard (I like those bobble head Jeep commercials she ran, that vendor meetings a year. I
now seem to be everywhere on television). Patrick McFarland, Head of Customer Knowledge seen good auto-related blogs
Services from Ford Motor Company, had an informative presentation on “Customer Lifetime out there, but none that
Value – Predicting and Applications to Automotive Marketing”…this, although not mentioned focus on the areas of
directly, has aggressively filtered down to the dealer level, with even the major dealer remarketing, so I thought I
computer vendors building in an easy way for service writers in the dealer service shop to take a shot. After all, I
calculate, with a keystroke, the gross revenue each customer has generated for the car guy …
dealership over a multi-year period. This last point I picked up not from a presenter, but
PREVIOUS POSTS
from some dealer people I had lunch with that afternoon; seems a simple obvious thing to
want to do, but it was impossible back when I was a dealer. Vol. 2 No. 29 2006 IARA
Summer Roundtable:I
There was a presentation on maximizing the profitability of customer interaction – “A Vol. 2 No. 28 2007 Ford
Strategic Framework for Driving and Leveraging a Profitable and Effective Customer Fleet Preview – Simply the...
Experience” by Michael Fitzpatrick, Chief Marketing Officer of Harte-Hanks. This was
followed by the first panel discussion of the day, moderated by my old friend Cliff Banks, Vol. 2 No. 27 Independence
Director, Editorial Development, Ward’s Dealer Business (a dealer trade magazine I’ve been Day CEO of Nissan Mot...
reading now for at least 16 or so years), entitled, “Moving Your Business Online – is Search Vol. 2 No. 26 2007 Chrysler
Engine Marketing the Answer to Declining Sales.” This presentation was the first to directly Fleet Preview – At Le...
apply the applications of search engines and new media to automotive retailers, and, as Vol. 2 No. 25 NVLA and
such was of the most interest to me. The panel included representatives of some of the NIADA: Doing the Vegas/Ft....
“best and the brightest” marketing, communications and customer retention dealer group
managers, with Richard Fisler, Corporate Marketing Director for the C.A.R. (Conant Auto Vol. 2 No. 24 iRem@rketing
Retail) Group, Erin Touponse, Director Development & Communications, Harte Auto Group, 2006 –Technology Chang...
and Cassie Broemmer, Director of Customer Retention and Marketing, Van Tuyl/Automotive A Not-to-Be-Missed Podcast
Investment Group. with John Manchin, Rema...
Vol. 2 No. 23 iRem@rketing
One of the things that is clear to me, at least, from listening to his panel, is the fact that 2006: The Technology C...
the most advanced and effective dealers using the Web are creating their own leads
Podcast with Theresa
through things such as search engine marketing, and the role of the “third party” customer
Ragozine, Worldwide
lead generators (the Autobytels and the like) is being greatly reduced, if not marginalized
Director...
completely. The handwriting is certainly on the wall when the general metrics are revealed,
that, indeed, when closing ratios are considered, the least expensive Web based leads for a Vol. 2 No. 22 2007 GM Fleet
dealer are those that are self-generated (through things such key word purchases), the next and Commercial Produc...
least expensive are those generated from the various manufacturers (such as through ARCHIVES
FordDirect), and, by far, the most expensive leads are those generated by the many “third
party” vendors – who in many cases generate their dealer leads through the same key word December 2005
purchase/search engine technologies that are available to dealers directly (that is, those
January 2006
that know how to use them correctly), and their only addition is a cost mark-up.
February 2006
March 2006
That Afternoon, I Couldn’t Resist Listening to How Ferrari Targets April 2006
their Prospects…(my Road Rally invitations must have been lost in May 2006
the mail) June 2006
July 2006
The afternoon had a couple of break out sessions and I had a choice on which to attend.
August 2006
One choice was listening to David Kain of Kain Automotive, who I heard gave an excellent
presentation on utilizing search engine marketing (and I know this to be true, having heard September 2006
David speak before at a JD Power Roundtable as well as some other venues – David is one of October 2006
the best known speakers on this topic). The second, and I have to admit, the one I
succumbed to my temptation to hear, was given by Paul Montopoli, Director CRM &
Marketing Planning from Ferrari North America. Just to hear how the Ferrari folks treat and
nurture past and potential owners was a trip…when you sell a few hundred cars a year at
ultra high prices, to people, who, I learned, more likely than not have a whole fleet of
super luxury expensive vehicles (and private jets and yachts as well) you have to be very
generous for your “lifestyle” exclusive cocktail events and “road rallies”…but unfortunately
for guys like me they are also very selective…
The first day closed out with a presentation by Dan Keller, General Director, Marketing
GM/CRM, General Motors, on how he uses technology to coordinate and leverage all of the
various company contact points for a typical GM/GMAC customer – with a company as large
as General Motors (all the vehicle brands, GMAC, GMAC Mortgage, GMAC Insurance, OnStar,
http://fleet-ingthoughts.blogspot.com/2006/09/vol.html 11/15/2006

3. Fleet-ing Thoughts Page 3 of 4
as General Motors (all the vehicle brands, GMAC, GMAC Mortgage, GMAC Insurance, OnStar, Truth About Cars
etc.), the coordination alone is an serious task. Fast Company
Future Cars
Motoralley
Fleet Central
Being a Former Car Dealer who Leveraged “Old World Off-Line”
Automotive Digest
Customer Leads, Ralph Paglia ’s Case Study on Day II was Far and AFLA
Away my Favorite Part of the Whole Conference… IARA
NAFA
NVLA
Day two started out with a
dealer counsel
presentation by Aaron Smith,
Interactive/CRM Marketing PODCASTS
Manager for Hummer, on
“Empowering the Customer” John Possumato interviews
and matching dealer inventory John Manchin, Remarketing
customer demands. Then my Manager, Subaru Auto
old friend Ralph Paglia, Leasing, Ltd., June
CRM/eBusiness Director, John Possumato interviews
Courtesy Chevrolet shared with Theresa Ragozine,
the group the strategy and Worldwide Director, Travel
technique that produced his and Fleet, Johnson
phenomenal success at Johnson, June 8, 2006
Courtesy Chevrolet in Phoenix,
John Possumato interviews
AZ, and made Courtesy the
Scott Mayo, Fleet Director
leading Internet retailer of
for Wendy's, May 31, 2006
new and certified used
Chevrolet vehicles in America, in a presentation entitled “Integrating the Internet John Possumato interviews
Department into our Retail Strategy.” Sherb Brown, vice president
group publisher of Bobit
Business Media, April 19,
Frankly, Ralph’s presentation, and the whole CRM/eBusiness organization and their results
2006
to date are so impressive that I immediately looked to do a podcast for the blog with Ralph,
to give a more direct experience for those blog readers interested. Even with something John Possumato interviews
like 38 people in his department, organized into three fully staffed business development Rod Smith, president of
centers, an eBusiness finance team, and four distinct Internet sales teams operating out of Arelco, Inc. April 10, 2006
four separate buildings, Ralph is still rapidly growing his Internet operation, through a state John Possumato interviews
of the art interactive marketing strategy (creative key word purchases, site creation etc.) Charlie Vogelheim, Master of
strategically coordinated with traditional off-line media marketing. Ceremonies CAR April 7,
2006
Of course, part of Ralph’s advantage is that he has always been in the forefront of John Possumato interviews
automotive retail Internet and interactive marketing, as a consultant or practitioner, since Tom Kontos, Vice President,
the science (or art depending on how you look at it) began, now probably close to ten years Adesa Analytical Services,
now. And clearly, part of his success has to be his unique insight and energy. But I have to March 29, 2006
tell you, seeing Ralph’s phenomenally successful results on leveraging new technology (not
to mention the fun he has with it on leading the pack in the online dealership environment SYNDICATION
with a single point store), more than anything else out there, makes me wish I was back in
the retail car dealership environment. Way back when, before there was an Internet, I had
some decent results in leveraging “old world” direct marketing (direct mail, telemarketing,
etc.) - as the Internet geometrically expands this reach, as no better an example than Ralph
has proven, it makes me wonder how I would fared in the online environment today as a car
retailer. The Internet truly is a great “equalizer” in a lot of ways for car dealers, and, I
think, in many respects one is limited only by one’s imagination, creativity and drive in
leveraging its use for results, rather than in the old world limitation parameters of physical
location, number of franchises and locations, etc. Search this blog:
» Blogs that link here
A Research Analyst, a Few More Manufacturers, and Close Out with » View my profile
a Car Dealer
Later in the day, Ron Rogowski from Forrester Research, made a presentation entitled
“Building Your Automotive Brand Online” mostly aimed towards manufacturers, while
Valerie Fuller from FordDirect (the manufacturer/dealer cooperative site from Ford created
to drive Internet traffic to Ford dealers) addressed the group with “Supporting Dealer
http://fleet-ingthoughts.blogspot.com/2006/09/vol.html 11/15/2006

4. Fleet-ing Thoughts Page 4 of 4
Powered by Blogger
to drive Internet traffic to Ford dealers) addressed the group with “Supporting Dealer
Operations Through Customer Intelligence.” Also, Mike Musich from Toyota Motor Sales USA
had a presentation on “Working Together for the Ultimate Customer Experience – How and Blogger Templates
Toyota and the Dealer Organization Can Drive Higher Customer Satisfaction Toward
Improved Customer/Owner Loyalty.
The last presentation of the day, however, was of greater interest to me than the
manufacturer centered presentations, as it was conducted by a car dealer principal
addressing a issue that, although focused on Internet-based sales, certainly addressed a
problem that pre-dates the Internet inside car dealerships, namely, how to recruit, train
and retain good sales representatives. The case study presented by Mike Johnson, the
owner of Antelope Valley Ford/Shuttle Lincoln Mercury entitled, “Training Staff for
Professional Online Service” began with the fundamentals of how to hire and train “green
peas” (car lingo for people hired with no experience in car sales) – in this he had an
advantage, as an ex-schoolteacher he developed a training/tracking program from the
start. He also outlined the “bad habits” all dealers went through before terms like “CRM”
were important, such as relying on “ups” (again car lingo for someone who walks through
the showroom door inquiring about a car), and promoting the practice of doing everything
possible (advertising & promotion, manipulating phone inquiries, etc.), to drive the
prospect physically into the facility before any serious interaction took place.
Johnson then outlined how Internet sales, and indeed, the development of CRM in general,
required a very different culture for success – one of his presentation bullet points,
“determine when, not if a separate sales staff for Internet customers is needed,” kind of
says it all. In an era where the average dealer spent $565 per retailed vehicle in advertising
(NADA data for 2004), Mike Johnson’s emphasis on hiring, training and accurately measuring
the performance of sales personnel, particularly in the emerging Interactive media area,
not only makes sense, but probably will dictate which dealers survive and prosper in the
years to come.
Although this was the third in the series, I had never been to one of these
manufacturer/dealer E.N.G. Next Generation Automotive CRM conferences before, and was
very impressed with the information presented and the quality of the presenters and
audience. At the end of the day (literally), I’m more convinced than ever that the
automotive retailer world is rapidly dividing up into those that “get it” and those that don’t
(or refuse to…sometimes clinging to old past practices as doggedly as the venture capital
folks a few years ago were blindly convinced that Internet-based “bubble era” companies
were going to replace the automotive retailer). It’s clear to me, at least, that with new
technologies, automotive retailing is evolving and changing more rapidly today in prospect
lead generation and customer relationship management than at any time in its 100+ year
history – the message is “keep up with the latest developments, or lose the race to the
competition…”
11:05 AM | Permalink
NO COMMENT
Post a Comment
http://fleet-ingthoughts.blogspot.com/2006/09/vol.html 11/15/2006