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May 2007

Some of our stats

I've posted links and excerpts from research related articles on the power of search engine marketing but today I wanted to post something a little more direct. Since it is the end of the month I've posted some of our clients stats. These reflect traffic sources for two of Dealerfire's clients. You can click on the images and they open full size in another window for easier viewing.

Trafficsourcesreport2a



Trafficsourcesreport4_2

These are for the first 28 days in May. If you recall some data from a previous post about DoubleClick's Touchpoint surveys that  "61% of respondents notice a web ad, do not click but visit the advertised site later", then some of the direct traffic can be attributed to search engine marketing efforts.
   

Sign of the Times: Googling Baby Names

This information may not help you sell more cars online but it should give you a chuckle and that's almost as good. This snippet on Boston.com refers to an article in the Wall Street Journal, which you have to pay to read. The gist of it is that people are starting to Google prospective baby names to see how they might rank. Gotta love it...

What the customer is looking for....

iMedia recently published an article by Chuck Moran concerning online user trends in the automotive market, appropriately titled "User Trends: An Automotive Market Snapshot". It covers a lot of relevant information without getting you bogged down in reading a ton of stats. The article has an interesting section on how gas prices are really starting to have a major impact on the consumers purchasing decision. I'd be lax in my duties though if I didn't mention that the articles also highlights how the internet is considered essiential  by  consumers for doing their research before making a automotive purchase. You can read the artice here at iMedia's website.

Best practices for marketing vehicles online

I was speaking with a dealer today, and they are completely new to the arena of online marketing. They were asking a lot of questions about best practices, and one of the tools I provided for their education was a presentation developed by Autotrader.com. If you're new to selling/promoting vehicles online, or even if you'd just like a brief refresher course, this tutorial should be well worth your while. It discusses everything from the importance of writing good descriptions to taking appropriate photos.

Pricing for a Dealership Website

Take a look around the web and you'll see an unbelievable range of pricing for auto dealer websites. It's no surprise - you get hundreds or thousands of companies and you're bound to be all over the map. Of course a small company who builds websites in their spare time is going to charge less than another company who focuses strictly on car dealers. Why? I believe the answer is a simple concept. For some reason a lot of auto dealers we talk to don't seem to get it right off.

The reason is a matter of simple economics. I see a lot of web design "companies" that are nothing more than one person building and promoting all sorts of site design in their spare time. The usual situation is one in which a person has a full time job and relies almost exclusively on referrals from existing customers and also the "friend of a friend" scenario. In this situation there is no real need to grow the business; it's merely a hobby. This means no money needed for marketing, development, a sales force, an office, etc. When these typical business needs aren't present, of course the profit margins increase and voila, you have an inexpensive website product to offer. This isn't always a bad thing, but we see a lot of these providers who just don't care about having a good product. Of course there are larger companies that produce good looking sites but lack the essential features to make your internet marketing a success. I'd say the majority of car dealers still haven't been educated on what makes a good site vs. a bad site.

It all boils down to value. Suppose I go to a car dealer and ask how much his BMW costs. Let's say they quote me $25,000. If I tell the dealer that another dealer down the street has "a car" for $5000, we all know what the first question would be from them: "Well is it the same BMW?" This example sounds absurd, but we run into the same thing with a lot of dealers who call in. "Company X only charges this amount and you want to charge your amount." Car dealer websites probably have as much variety as the vehicles on the road, so we constantly have the apples to oranges discussion with dealers. We choose to work in this industry where price is everything in the mind of most customers, so taking on the value-building educational role doesn't bother us. When it comes time to make a decision on what provider you want to develop your dealership website, I recommend shopping around, determining what features you need and what features you could care less about, and then make a true apples to apples comparison between the providers who offer the features you need. Your choice is eventually going to impact your return on investment, so it's well worth your while to do the homework.

Tips II: Return of the corporate gift card

The information regarding the Apple iTunes&174; was so popular that we went back to the web for some follow up information. We have links for you to corporate rewards programs for Best Buy&174; and Blockbuster&174; . These gifts cards make nice tie for vehicles with Rear-seat DVD Vehicle Entertainment Systems. While these cards can be a great incentive to book the test drive or close the sale, they can have an additional buzz factor as well. That is the "found money factor" of sending a card unannounced to a customer who recently purchased a vehicle. It can help in two ways:

  • "WOW" effect can generate word-of-mouth and build customer referrals
  • Helps lessen the negative aspect of post purchase behaviour that most customers feel after making a big ticket purchase

Best Buy Gift Cards for Business


Blockbuster corporate Incentives Store

Customer Aquisition and Jethro Math

Those of you who are the right age might remember an episode of the Beverly Hillbillies where Jethro invented a new kind of math were 2+2=5. By the end of the episode, of course, Jethro's math had been debunked. In the internet age, where anything seem possible, that sort of math may actually be valid. Research firm Marketingsherpa.com reveals in a study that Jethro may have not been that far off. Their research showed that:

  • Search engine users select the top natural listing 20% of the time
  • They "clicked" on the top Paid Search listing 10% of the time
  • Web sites that acheived a top ranking in both categories had users selecting their website 60% of the time

That's 20+10=60, a fascination and powerful equation. These are the type of results that Dealerfire's Traffice Building System is designed to achieve for our customers.

Coupons

Once a potential customer is has reached your dealer site, the goal is to get them into your dealership for a test drive. Online coupons are a great way to provide an extra incentive for them to make the appointment. Dealerfire has a solution for that as well, the Dealerfire Coupon System. Upon arriving on your site, customers are greeted by an attention grabing advertisement for your "Exclusive Internet Specials" and a pop-up coupon form. After completeing the unobtrusive form, they are given a printable coupon they can redeem at your dealership and you've collected the personal information of a verifiable lead. Best of all it is completely trackable so you know where the leads come from. Read some testimonials from dealers who are currently using our coupon system.....

Tips: iTunes Gift Cards

Apples iTunes® and iPod® products have been a runaway success in the digital media space. Just about everyone several of their relative are using them. Apple has a Corporate Gifting and Rewards Program® that is a great attention grabber. You can buy packs of iTunes® with card values as little as $10, these would make a great promotional incentive . You could offer an iTunes gift card for each completed test drive. Here is the link to the program...

Customer Targeting

Got good gas mileage? Gas prices are climbing faster than a NASA rocket and who knows how hign they will go before they stop. That means potential customers will be searching for vehicles with the best gas mileage. You want to make sure that they find those models as quickly and as easily as possible. A landing page dedicated to your best mileage cars can shorten the customer buying experience and generate quality leads. A landing page in conjunction with a keyword campaign can do that for you by directing the customer directly to specific models they want to buy. A landing page can be created for any situation; Annual, Inventory Clearance or New Model Sales Events. Check out more information here...

Growing Influence

DoubleClick, a digital advertising and research firm recently purchased by Google for 3.1 billion, recently released their Touchpoint IV survey subtitled "How Digital Media Fits into Customer Purchase Decisions" and it reaffirmed trends spotted in their Touchpoint III survey from July of 2006 regarding the influence of paid search along with other digital advertising.

Touchpoint III

  • Nearly 20% of respondents turn to search to further learn about a product/service
  • 11 percent of respondents listed search as valued touchpoint in the "influence purchase" stage

Touchpoint IV

  • 67% of respondents notice a web ad then check out the product product later at a physical store
  • 61% of respondents notice a web ad, do not click but visit the advertisded site late

Some of your website visitors and leads that show up in the stats as "organic" were actually induced by paid search. The added benefit is that you do not have to pay for the click, lowering customer acquisition costs. These touchpoints highlight the ever growing influence of paid search, and search in general, in marketing campaigns.

The Modern Economy

The modern economy is built on specialization and division of labor. Toyota, Ford, Honda, GM, Dodge, Kia and numerous others specialize in the design and manufacture of automobiles. Dealerships specialize in sales and providing outstanding sales. Dealerfire provides the skills and knowledge needed to bring millions of people searching online for automobiles to your website. Google, Yahoo and others build the search engines and marketing tools; we use them to bring you customers.

Dealerfire Traffic Building System

We marketing our knowledge of these tools to you as the Dealerfire Traffic Building System. A system which combines our partnerships with companies such as Google, Yahoo and MSN on one hand, with our extensive knowledge of their search engine marketing tools on the other.

More Online Visitors Means More Leads and More Auto Sales

Dealerfire's Traffic Building System ensures your dealership is found online first. You can find more information here.

Research from Clickz.com shows that over a three month period:

  • 4.6 million people engaged in online shopping behavior  for  automobiles
  • 76% searched  for  a specific  model and 56%  searched for  dealer
  • 77%  either bought a car  or  were planning  on buying one within a year