toyota kansas city region dealer summit - 2010

Automotive Digital MarketingInternet Sales Challenges

Toyota Dealers in 2010

Kansas City Region – Toyota Motor SalesJanuary 13, 2010 Dealer Meeting

Presented by Ralph PagliaNational Digital Marketing Strategy Consultant to Toyota Motor Sales, Inc.

Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected]

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 [email protected] 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 Dealers 3 Digital Marketing Performance Metrics reviewed and analyzed for results relative to national averages…

1. Traffic GenerationTotal volume of dealership website visitors

2. Conversion Rate Percent of website visitors who contact dealership

3. Lead Volume Total business opportunities generated from website


6 KC Region Dealers stood out as “Best in Class”

Dealer Website Traffic Marketers1. Toyota of Des Moines2. Olathe Toyota3. Superior Toyota4. Molle Toyota5. Cedar Rapids Toyota6. Reliable Toyota


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12,000

14,000

16,000

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7,89

47,

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7,41

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6,09

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5,70

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5,14

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114

4,67

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3,63

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3,17

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1,75

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1,57

81,

546

1,20

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Total Dealer Site Traffic* KC Toyota Dealers November, 2009

(*KC Dealers with >1,000)

National Average



Dealer Website Content Marketers1. Performance Toyota of KC2. MidWest Toyota3. Rolling Hills Toyota4. Crown Toyota5. Molle Toyota6. Eddy’s Toyota of Wichita


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Website Visitor to Dealer Contact . Conversion Rates*

*KC Toyota Dealers >1K Visitors November 2009

Performance Toyota of Kansas CityMidWest ToyotaRolling Hills ToyotaCrown ToyotaMolle ToyotaEddy's Toyota of WichitaCoad ToyotaPerformance Toyota of LincolnToyota of Iowa CityTim Corwin ToyotaAdams ToyotaFrank Fletcher ToyotaPerformance Toyota of La VistaRiley ToyotaToyota of MuscatineWilson ToyotaErnst ToyotaAnderson-Weber ToyotaBellevue ToyotaWeiss ToyotaDan Deery ToyotaLewis ToyotaDan Porter ToyotaOlathe ToyotaToyota of the Black HillsCedric Theel ToyotaLou Walsh MotorsJay Wolfe ToyotaCedar Rapids Toyota*Superior Toyota *Toyota of Des MoinesBillion ToyotaReliable Toyota *

National Average



Dealer Website Lead Generation1. Molle Toyota2. Eddies Toyota of Wichita3. Adams Toyota4. Toyota of Iowa City5. Olathe Toyota6. Performance Toyota of La Vista


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147

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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!


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

Social Marketing & Reputation Management Value


Dealership Community.com

Facebook

MySpace

LinkedIn

WordPress

YouTube

Flickr

Photobucket

Blogger

DealerRater

Edmunds

Kudzu

Twitter

Digg

Del.cio.us

Technorati

www.Automotive-Avenues.comDealer Sponsored Online Community

http://youtube.com/

http://www.photobucket.com/

http://www.digg.com/

http://www.wordpress.com/

http://www.technorati.com/

http://del.icio.us/


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…Toyota Dealers can reach them with targeted messages through Facebook Advertising and Fan pages.


480 Facebook members within 50 miles of Kansas City work for DST Systems??Toyota Dealers can reach them with targeted messages through Facebook Advertising and Fan pages.


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…


1. Are Toyota Dealers more or less competitive than they were in the past as we go into the 2010 Auto Sales Recovery period?

2. 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?

Toyota Kansas City Region Dealer Summit on January 13, 2010 [email protected] 12, 2023 Copyright © 2005 Ralph Paglia – All Rights

Reserved

• “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.”

• “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.”

Does your dealership have an Internet Sales Team?Do they execute effective Lead Response Process?

¹Mark Dixon Bünger; Forrester Research

After spending so much money to get customer attention, why would we hit the brakes in the

sales department?


A: Increasing Closing Ratios is not “Just About” Response Times…

A: Increasing Closing Ratios is not “Just About” Response Times…

Q: Why the variations?Q: Why the variations?


Impact of Dealer Lead Response Attributes on: Vehicle Purchase

Dealer Response Attribute Experienced by Customer within 24 hours* of Submitting Lead

Purchase Respondents* who DID NOT

experience the attribute

% of Purchase* among the

Respondents who DID

Experience the attribute

GAP

Statistical Correlation Factor of response

attribute with Vehicle

Purchase

% of ALL Respondents

who DID Experience the attribute

Dealer made Direct Phone Contact with Customer after sending Email 17% 27% 9% 11 59%

Dealer Acknowledged Customer Request 21% 23% 2% 1 94%Dealer Showed Genuine Interest in Customer’s Wants & Needs 21% 23% 2% 2 87%Dealer Responded using Customer’s Preferred Communication Method 21% 23% 2% 1 93%Customer Received Price Quotes from Dealer by Email 20% 27% 8% 9 44%

Customer Contacted more than once by Email and Telephone 21% 25% 4% 5 49%

Dealer Confirmed Availability of Vehicle(s) for Sale and Delivery 22% 24% 3% 3 52%


Top 4 Ways to Close More

Sales per Leads

Received

Dealer Lead Response Actions Experienced by Customer within 24 hours of Submitting a Web based Inquiry (Lead)

Purchase Respondents

who DID NOT

experience the dealer

lead response attribute

% of Purchase among the Leads who

DID Experience

the dealer lead response attribute

Statistical Correlation

Index of Dealer Lead

Response attribute

with Vehicle Purchase

#1 Direct Phone Contact with Customer(after sending Email w/availability & prices) 17% 27% 11

#2 Customer Received Price Quotes (Email) 20% 27% 9

#3 Customer contacted more than once within 24 Hours after sending inquiry (lead) 21% 25% 5

#4 Customer reports being Completely or Very Satisfied with Dealer’s Response to Lead 21% 24% 3

Results Proven Best Practices

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

• 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

rate1. Direct customer phone contact made by

dealer within first 8 business hours 2. Consumer received price quote(s) within

first 8 business hours3. Dealer confirmed availability of multiple

vehicles within first 8 business hours4. Dealers showed genuine interest (consumer

perception)

5. Customer received contact from dealer more than once within first 24 hours after lead sent Source: Morpace 24 hour survey and RDR sales data(new study reconfirms close rate impact factors)


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 emailSend Email/SMS when Voicemails are leftGet “Real” email, SMS OK, social link during

callUnsold Lead Follow-up by Manager/3rd PartyWeb Sales Calls routed to specific people Showroom Appointment Reception Process!

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 emailSend Email/SMS when Voicemails are leftGet “Real” email, SMS OK, social link during

callUnsold Lead Follow-up by Manager/3rd PartyWeb 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 [email protected] www.ADMPC.com

toyota kansas city region dealer summit - 2010

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