CRM Dealers of the Year – January 2007
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By Patrick Luck
January 2007
Congratulations to the recipients of our eCRM 2007 Dealers of the Year.
• Tasca.com
• Walser.com
• Sheehy.com
• RickCase.com
• RedMcCombs.com
• ParagonHonda.com
• HerbChambers.com
• HouseofCourtesy.com
• DaveSmithMotors.com
• HarveyAutos.com
Our staff at AutoSuccess is dedicated to addressing the specific needs of new car and light truck dealerships by providing cutting-edge, solution-based resolutions to aid dealers in becoming more successful, and ultimately to establish the results they desire: increased profits. In the process of providing research-based innovative solutions, the AutoSuccess team incorporates the input of hundreds of dealers nationwide.
In an effort to recognize the outstanding digital marketing initiatives and campaigns among the nation’s most successful dealers, AutoSuccess honors those dealers who have effectively leveraged the power of the Internet and CRM to harness substantial results. What our research has shown is that the nation’s top performing dealers are harnessing their knowledge, experience and resources toward this marketing phenomenon.
This revolutionary medium has enabled dealerships to generate substantial returns on their investment by utilizing the innovation of the Internet and CRM to promote all profi t centers within their dealership – from new and used sales, to F&I, to parts and service. Dealers are spending more and more money on mass advertising that has increased in cost and decreased in effectiveness. The most frustrating part of this equation is that dealers cannot measure the return on their advertising investment. That is why many successful dealers are shifting their ad spending from mass advertising to targeted digital marketing that has a better return and is more measurable.
Another trend that has influenced dealer advertising is the influence the Internet is having on how customers are beginning their buying process. Statistics consistently show a growing increase in the number of customers who have used the Web to research information at some point during the process of purchasing a vehicle. CSI surveys reveal that these customers know and expect more from their dealers than ever before.
Therein lays the challenge and the opportunity. Smart dealers are meeting and exceeding these customers’ expectations. Top performing dealers have used the Internet to increase their retail sales by 20 to 25 percent and to improve the profitability of their F&I, Service and Parts Departments as well. Although different dealers’ strategies vary, there are some essential elements that most successful dealers possess.
AutoSuccess looks for the following five key elements to determine the winners of the eCRM Dealers of the Year Awards:
• WELL-DEFINED STRATEGY: A detailed marketing plan with clear objectives to attract
traffic to their site, phones and showroom.
• HIGH-IMPACT WEB SITE: A customer friendly site that is innovative, engaging and
informative, and that promotes all profit centers of the dealership.
• POWERFUL CRM TOOL: A fully automated prospect management tool that will manage and measure all of their leads and drive quality traffic to the phones and showroom.
• INNOVATIVE MARKETING: Effective media-enriched e-mails and phone scripts to
contact prospects.
• PEOPLE & PROCESS: Well trained and dedicated Internet specialists to sell appointments
and well-equipped sales consultants to build value in the dealership and the vehicle.
• PRECISION MEASUREMENT & TRACKING: Measurable results and automated reports to track metrics in order to continually refine processes and improve results.
Winning entries tell a great story of marketing challenges, demonstrate excellence in marketing strategy and objectives, show measurable results and describe the unique lessons learned from their marketing campaign or program. The end result is a smarter marketing strategy that uses intelligent digital marketing tools and training to sell more cars for less cost.
Tasca Auto Group
Accelerating from eCRM to eSatisfaction with 63% Customer Loyalty
What better way for one of the nation’s fastest growing dealers to spend his spare time than behind the wheel of a modified ’07 Shelby Mustang making 3,500 hp and accelerating
to 210 mph in just 3.7 seconds! That’s no ordinary car; it’s a National Hot Rod Association
Top Alcohol Funny Car piloted by Bob Tasca III.
Likewise, Tasca Automotive Group is no ordinary dealership. The Tasca Group has grown from a small one-rooftop store to a multi-franchise auto group in the New England area.
Tasca Automotive Group is now operated by third generation Tasca family members led by auto enthusiast/pilot Bob Tasca III. Their continued growth and success can be attributed to the “Tasca Way” of doing business which focuses on customer satisfaction.
The scope of Customer Relation Management has evolved into more than just the face to face encounter on the showroom floor. Through the power of the Internet and digital marketing, fully automated CRM tools are providing the opportunity for today’s successful dealerships to take customer satisfaction to a new level. Not only are the Tasca Customer Satisfaction Indexes among the highest in the nation, the technology of their automated CRM tools have been instrumental in increasing online sales by more than 84 units per month. “Our online presence is a whole new way to communicate with our client base. Our philosophy at this dealership for more than 20 years has been to rely on repeat and referral business, and our CRM provides a better way to serve our customers,” explains Bob. “Here’s what an effective CRM tool should provide:”
“Our Digital Marketing System turns traffic into leads while providing the kind of online experience that fi ts with the Tasca Way.” – Bob Tasca III
1. Customized marketing lists for targeted prospects
2. Media enriched customized bulk e-mail campaigns
3. Automated delivery of graphic and multimedia digital presentations via e-mail
4. Integration of optional promotional and custom features
5. Management of calls, appointments and processes
6. Automated and measurable results
More and more successful dealerships are using the Internet to communicate with their customers because it is effective, convenient and inexpensive. “Our customers love our buzzmails,” adds Bob, “These customized, multimedia mini-commercials are loaded with interactive features that keep the customer engaged while obtaining the information they are seeking. When it comes down to it, whatever we’re doing is working!”
THE BOTTOM LINE
• Tasca.com awarded E-Dealer Of The Year three consecutive years.
• Tasca is the largest Ford Motor Company dealer in New England.
• Tasca has partnered with BZ Results to make the shift to digital marketing and to sell an additional 80 + units per month.
• Tasca’s customer loyalty rating is above 63 percent and their CSI is among the highest in the nation.
• Tasca uses automated CRM technology to improve customer service.
• Tasca Auto Group thrives on repeat and referral business.
The Walser Group
Executing Success: Increasing Closing Ratio to 20 Percent
Walser Automotive has joined the revolution, implementing a centralized eStrategy in 12 franchises. Established in 1956, Walser Automotive has grown into a network of top quality
dealerships across Minnesota who are committed to offering the best service in the industry. What makes the Walser Group unique is their “negotiation-free” philosophy, which they call the “Walser Way.”
“We understand the importance of process and execution, and as a result have built a great foundation in terms of percentages and closing ratios.” – Andrew Walser
Walser Automotive has a fundamentally different approach to the car buying experience. The core principle of the Walser Way is to give the absolute lowest price up front – no
negotiating, no waiting. The same policy applies to every new and pre-owned vehicle. The Walser Way empowers the customer and associate by giving them both the sovereign
control to make the deal. It is up-front. It is honest. And it is simple. Everyone pays the same low price…fast, fair and easy.
Walser Automotive knows the importance of having the right people and the right process in place. Since implementing a new Digital Marketing Strategy within the last year, owner Andrew Walser explains, “The greatest accomplishment since hiring our new Digital Marketing Consultant is that we have centralized a consistent process in all of our 12 franchises. We understand the importance of process and execution, and as a result have built a great foundation in terms of percentages and closing ratios. Currently we are setting appointments on 32 percent of our leads with an 80 percent show up rate. That’s generating a 15-17 percent conversion ratio on our total leads. We even have a couple of stores in the mid 20s! That’s quite a bit higher than the national average of 5 percent.”
Without the right people and the right processes in place, the greatest technology in the world is a wasted investment. Newcomer to the arena of Top eCRM Dealers of the Year, Walser Automotive has spent this past year creating goals and perfecting processes. Andrew Walser is passionate about his commitment to centralizing processes and executing on them. Even with the spectacular results they have seen thus far, 2007 is sure to hold great promise for this extraordinary results-driven dealership group. With the right tools, people and processes in place, the only thing left to do is make it happen.
THE BOTTOM LINE
• Walser Automotive has implemented a new Digital Marketing Strategy.
• Walser Automotive knows the importance of having the right process.
• The BDC staff successfully sets appts on 32 percent of leads at Walser.com.
• Walser Automotive has increased closing ratios up to 20+ percent in two franchises.
• The Walser Way is a “negotiation-free” philosophy. Everyone pays the same low price.
• Walser Automotive conversion ratio is 10 to 15 percent higher than the national average.
Sheehy Automotive
Continued Success – Increased Results up to 700 Percent
Since implementing their new digital marketing strategy a few years ago, Sheehy Automotive has steadily increased their leads, and are now up to the 700 percent mark! This
proves that a clear strategy, complete with the right people, process and tools designed to utilize the Internet to improve business is not just a passing fad with temporary results, but the way of the future for automobile retailers. Let’s take a look at how a large volume dealership group in the highly competitive DC area transformed their average Internet department into a whole new profit generating center.
Sheehy Automotive, with 18 franchises within 13 dealerships across Maryland and Virginia, had immediate results following the implementation of their strategy. In the initial two
months, their BDC had increased leads by 230 percent which translated into an additional 279 units in one month. They are now generating 3,449 leads per month and have exceeded their goal of 300 sales per month with an all-time high of 414 sales from the Internet Department.
Not only has Sheehy maintained their steady growth, they’re decreasing their cost per sale in the process. Sheehy Automotive began with a business plan that outlined what they needed to do to use the Web to grow their business. Roy Reutter, Internet director at Sheehy, indicated that in the beginning they were relying on third party lead providers for their leads and sales. “We quickly realized that we needed more than just a Web site and a few third-party lead providers,” explains Reutter. “We worked with a results-oriented automotive Internet consulting firm to build a complete strategy including the redesign of our Web site, staffing and training the team, implementing a process, establishing pricing, and fine-tuning lead management,” Reutter added.
“We worked with a results-oriented automotive Internet consulting fi rm to build a complete strategy including the redesign of our Web site, staffing and training the team, implementing a process, establishing pricing and fine-tuning lead management.” – Roy Reutter, Internet Director at Sheehy
On the topic of marketing, Reutter reflects, “If you can’t generate traffic you might as well not have a Web site. Search Engine Optimization in conjunction with multi-media buzzmail
campaigns blended with traditional marketing media has enabled us to increase traffic and sales at a lower cost than ever.” With Internet marketing, everything is measurable.
Performance metrics help track your dealership’s performance and the return on your investment. It’s important to have the right CRM tool that will integrate and automate
data so that your strategies can be updated and revised when needed. Reutter added that the measurability of ROI on the Internet is unparalleled in the car business. In tracking their new marketing strategy, they have seen the average cost per sale drop from more than $500 per sale to about $130.
The most important metrics to track:
• Number of visitors to Web site
• Conversion Ratio
• Closing Ratio
• Average gross profit
• Cost per sale by lead source
THE BOTTOM LINE
• Sheehy sold 414 units online in just one month.
• After launching the new Web site, Sheehy went from 400 to 1,350 leads in only 60 days, and today it generates more than 3,400 leads per month.
• The closing ratio for the leads from Sheehy.com is three to four times higher, and the cost per sale is about $130 per car.
• Sheehy.com is designed to drive phone and showroom traffi c, and the Web site is now its No. 1 source of phone leads.
• Sheehy’s Web site vendor positions it on search engines and helps market the Web site online and through multimedia e-mail campaigns.
• www.Sheehy.com has been recognized as one of the top eCRM Dealers of the Year for three years in a row.
Rick Case
eCommerce Dept. Sells Additional 250 Units per Month
Rick Case sold his first car at the ripe age of 14 years old. It was an old “fixerupper” which he purchased, tweaked, and then resold for a profit. Rick claims he made more on that one car than he had made all year as a paper delivery boy. And so the legend began. By 1965 Rick had opened his first Honda vehicle franchise, and established his stature as having a keen eye for how innovation can lead to opportunities.
Today the Rick Case Automotive Group, comprised of 14 dealerships throughout Fort Lauderdale, Atlanta and Cleveland, is enjoying tremendous growth in its eCommerce initiatives, doubling their Internet sales from 250 to more than 500 units per month while cutting their cost per sale from $340 per car to only $210.
“RickCase.com has unique features such as Virtual Test Drives which provide the customer with a multimedia vehicle tour that highlights the unique features of the vehicle they’re interested in.” – Rick Case, Owner
How has the Rick Case Automotive Group achieved incremental sales and a boost in profi tability during this growth period? One key to recent success at the Rick Case Automotive Group was their switch in technology and training vendors. The group put together a new eCommerce strategy that combines the power of search engine marketing, search engine optimization, and e-mail campaigns to increase traffic. Their new e-marketing strategy, complete with new Web site technology and design, helped generate an average of 5000 leads per month. They’re even selling an additional 250 units per month out of their eCommerce Department.
Rick and Rita share their Marketing Best Practices:
1. Build the right Web site: www.RickCase.com is more than just a Web site; it’s a Virtual Dealership which serves as our own regional buying service. Our site along with innovative SEM strategies drives more quality traffi c to the dealership which increases leads, reduces reliance on third-party lead providers, and lowers costs.
2. Implement the right balance of SEO/SEM: To attract today’s shoppers, we rely on SEO/SEM and our technology partner who employs two “Google Certified” experts to help generate more high quality leads. We use mix of organic SEO, which costs less but takes time to establish, and SEM which provides more immediate and predictable results. SEM ads are purchased through competitive bids and are easier to budget.
3. Establish a strategy to populate e-mail database: Holding our team accountable in both sales and service, we have seen our e-mail address capture rate increase nearly 30 percent. All leads go to our lead management tool, which makes it quick and easy to execute campaigns at any time.
4. Create effective, low-cost e-mail campaigns: With our new CRM tool we can reach hundreds and even thousands of prospects and existing customers. We’re able to create unique mini-commercials that grab the customers’ attention and prompt them to come in or contact the dealership. If they don’t contact us, our highly trained CRC team follows up until they do.
THE BOTTOM LINE
• Rick Case used eCommerce strategy to increase sales from 250 to 500+ in just 9 months.
• Rick Case Automotive Group is comprised of 14 dealerships throughout Fort Lauderdale, Atlanta & Cleveland.
• RickCase.com and new eMarketing strategy generate an average of 5,000 leads per month.
• The Rick Case Automotive Group used their new e-marketing strategy to cut cost per sale from $340 per car to only $210.
• The Rick Case Automotive Group uses SEO and SEM to dominate search engine results.
• Rick Case uses their CRM system to communicate special offers to entire customer database.
Red McCombs
A Texas-Sized Legend: Selling 500 Online Units per Month
Everything is bigger in Texas, including the results from Red McCombs’ digital marketing initiatives. Successful implementation of digital marketing strategies is the key to success for the nation’s top performing dealerships.
“Our Digital Marketing System continues to provide us with consistent results, increased sales and customer satisfaction at a lower cost per sale.” – Tony Rimas – eCommerce Director Red McCombs
Capitalizing on the power of digital marketing, Red McCombs.com is leading the way to success by establishing Red McCombs as one of the largest dealerships in the country. After successfully establishing their presence on the Web, www.RedMcCombs.com enabled their eCommerce Department to increase sales volume from 40 vehicles to over 500 vehicles per month! Tony Rimas, director of eCommerce, provides a summary of what it takes to achieve phenomenal success with digital marketing.
Five Keys to Successful Implementation of Digital Marketing
1. The Right Vision: With the help of a qualified automotive Internet specialist, define a clear vision of your dealership goals and specifically how you plan to get there.
2. The Right Strategy: Devise a plan that involves commitment from the top. In order to effect change throughout the dealership, you need management commitment and direct involvement from the dealer to the management team.
3. The Right Technology: Your digital marketing strategy should include a cutting-edge, media enriched Web site and a fully automated CRM tool to create a 24 hour profi t center.
4. The Right People: In order to get the right results, you need to staff your team with educated, well trained specialists who are passionate about what they do.
5. The Right Process: Devise a step-by-step action plan to maintain a successful CRM strategy. Monitor and measure all of the dealership lead and prospect activity. Having the right combination of people, tools and processes in place will make it happen. Some dealers think they will get results with only a great Web site, and that’s not the case.
Tony Rimas explains: “Initially we had a pretty nice Web site, but we weren’t getting the results we wanted. We hired BZ Results who provided us with a complete digital marketing solution including a high-end, custom Web site, search engine marketing, custom multi-media e-mail campaigns, a CRM tool that automates followup and the training to tie everything together. Our DMS system continues to provide Red McCombs with everything we need to attract, sell, and create loyal customers. The proof is in our results.”
THE BOTTOM LINE
• Since implementing its new Digital Marketing System, Red McCombs continues to sell an additional 500 cars a month.
• With the right people, tools, and processes, Red McCombs has increased gross profits from $60k per month to over $750k per mo.
• Red McCombs uses e-mail marketing campaigns and search engine placement to increase sales and lower costs.
• Red McCombs increased its closing ratio from 3 percent to 19 percent by automating much of its follow-up.
• Red McCombs uses Search Engine Optimization to dominate search engine placement.
• Award winning RedMcCombs.com is generating more quality leads while building customer loyalty.
Paragon Honda
Keys to Success Generate 200% Sales Increase While Lowering Costs
The last three years have been quite an experience for Paragon Honda/Acura and partners Brian Benstock and Paul Singer. Not only did the dealership increase their own Web site sales by a spectacular 1,000 percent, they also increasedtheir overall sales by over 200 percent according to their factory reports.
Results like these have earned www.ParagonCars. com the Golden Web Award and threepeat eCRM Dealer of the Year. What’s the key to their success? In the latter part of 2003, Benstock and Singer decided to completely change their marketing strategy to leverage the power of the Web and CRM and take the dealership to the next level. “After the fi rst four months we left the newspaper and saved over $100,000 in advertising. The best part is that while our advertising expense decreased our sales increased by almost 200 percent,” said Benstock.
“After the first four months we left the newspaper and saved over $100,000 in advertising. The best part is that while our advertising expense decreased our sales increased by almost 200 percent.” – Brian Benstock
Below Benstock and Singer share their own top 10 tips for building an unbeatable e-commerce and CRM strategy and the secrets to Paragon’s phenomenal success.
Paragon 9 Keys to Success:
1. Start with a Plan: Launching a new Web site, a CRC and an eCommerce marketing strategy can be overwhelming. With the help of technology partner, we created a detailed action plan for every step.
2. Technology: Find a total system that includes a high-end custom Web site, a suite of multi-media e-mails to drive traffic and a prospecting and CRM tool that automates much of the e-mail activity. Our Web site generates measurable results: www.ParagonAuto.com.
3. Marketing: Traffic exploded immediately upon implementing our new system thanks to the use of advanced search engine placement and bulk e-mail marketing. We select from hundreds of multimedia campaigns to send thousands of buzzmails every month to generate measurable traffic at no additional cost.
4. Referral Services: Track your closing ratio and cost per sale by lead source and you can eliminate the poor performing lead providers. We found that the leads from our Web site have the best closing ratio compared with other lead sources, although we did keep AutoTrader and a couple others.
5. People: We staff our CRC with people whose only job is to sell the appointment and allow the sales person to sell the car.
6. Process: We’ve been able to increase sales without a drastic increase in staff and overhead because 75 percent of our follow-up process is automated with a prospect management tool.
7. Pricing: Selling cars on the Internet is not about giving cars away. If we do not ask for a fair profit we won’t get one so we aim to be competitive while maintaining a fair profit.
8. Training: Training holds the key to sustained results. To launch our new system, we conducted a manager’s strategy bootcamp and then systematically trained everyone in the CRC on the best phone, follow-up and sales skills the industry has to offer.
9. Measure/Manage: Set up automatic reports on everything you need to improve your business: the number of leads by source, responserate and time, appointment percent, show percent, closing percent, cost per lead, cost per sale, etc.
THE BOTTOM LINE
• Paragon’s overall sales have increased by almost 200 percent incrementally year to date over last year according to their factory reports.
• Paragon’s digital marketing strategy made them No. 1 in Certified Pre-Owned in their region and No. 3 in the US.
• Honda Motors Corp reports that Paragon’s closing ratio increased from 9 to 25 percent which translates into a 300 percent higher closing ratio than the national average.
• Paragon has decreased their cost per sale from $500 to $100 per unit.
• Paragon’s eMarketing has increased the traffic on their site from 4,000 to 20,000+ new visitors per month.
• Paragon has seen a 300 percent increase in the effectiveness of their e-marketing tools which has been the key driver to their overall growth in new & pre-owned sales.
Herb Chambers
Selling Additional 600-700 Vehicles Online
As a young boy, Herb Chambers used to ride his bike to a local dealership just to look at new Buicks. Little did he know that he was destined to become the largest automobile dealer in New England grossing over $1.4 billion in sales just last year.
An article was recently written for The Boston Globe about how Herb Chambers’ passion for high performance autos fuels his love for the automobile business. The article featured Chambers’ collection of 15-20 fabulous new and vintage cars which he loves to drive, and was appropriately entitled, “What Herb Chambers Drives.” With the tremendous success that Herb Chambers has accomplished, owning 23 dealerships at last count, a more fitting topic would be, “What drives Herb Chambers?”
Herb Chambers purchased his first car dealership in 1985 in New London, Connecticut, and within a span of a few years has grown his enterprise into one of the largest in the country. What drives Herb Chambers is his undying commitment to provide the highest quality service to his customers, and to operate professionally managed dealerships committed to being leaders in the market areas they serve.
“We measure everything and hold regular meetings to discuss our progress and to find ways to fine-tune our processes. The customized reports give us the information we need, the number of leads by source, response rate, appointment percentage, show percentage, closing percentage and cost per sale.” – Jay Gubala
How does Herb Chambers sell an additional 600-700 vehicles over the Internet alone and continue to provide the highest-quality service to his customers? The answer is revealed in the question through the power of the Internet. Herb Chambers knew early on that the Internet would revolutionize the way consumers buy vehicles. Once he found the right technology partner, HerbChambers.com began to leverage the cutting-edge technology of innovative high-impact Web sites and digital marketing tools like animated multi-media e-mails into all its dealerships in order to make good on his commitment to provide the highest quality service to their customers.
Herb Chambers utilizes the ever-evolving technology of Search Engine Marketing and Search Engine Optimization to ensure top ranking among the world’s most popular search engines like Google, Yahoo and MSN. An effective SEM/SEO combination customized to their needs makes HerbChambers.com highly visible on the Internet with listings ahead of their competitors.
To tie it all together, HerbChambers.com relies on their fully integrated, fully automated CRM Tool for measurement and reporting. “You cannot manage what you cannot measure,” explains Jay Gubala, group eBusiness director. “We measure everything and hold regular meetings to discuss our progress and to find ways to fi ne-tune our processes. The customized reports give us the information we need, the number of leads by source, response rate, appointment percentage, show percentage, closing percentage and cost per sale,” adds Gubala.
THE BOTTOM LINE
• Herb Chambers is the largest Dealer in New England.
• HerbChambers.com sells an additional 600-700 units per month online.
• www.HerbChambers.com is a nationally acclaimed award-winning site.
• HerbChambers.com utilizes SEM/SEO to dominate the market.
• Herb Chambers was named 2005 and 2006 eCRM Dealer of the Year.
Courtesy Chevrolet
Excusing the Competition: Selling Additional 384 Units in One Month
In 1955, on the outskirts of town off of East Camelback Road, the dreams of two individuals become a reality. Edward Fitzgerald together with his partner, R. Mitchel McLure, established a dealership that was destined to become one of the largest automobile franchises in the United States. It all began in an old farm house which served as the showroom and offi ce, with a tiny shed out back that doubled as a makeshift garage and make-ready area. In spite of such a modest beginning, Courtesy Chevrolet, located in Phoenix, Arizona is now leveraging the power of the Internet to dominate the market in the Valley of the Sun.
Courtesy Chevrolet Vice President and Dealer Operator William Gruwell has been a partner in the business since 1981. Upon the passing of Fitzgerald in 2000, Gruwell became a partner with Mrs. Fitzgerald, and today they employ over 400 staff members, all of which have helped to build Courtesy Chevrolet into the icon of success that it is today. In recent years, William Gruwell’s sons, Mark and Scott, have worked in sales, and are now used and new car sales managers, respectively.
“Our new digital marketing strategy and high-end media-enriched Web site have increased our leads by more than 400 percent.” – Scott Gruwell
The Business Development Center at Courtesy Chevrolet, under the direction of Ralph Paglia, sets the pace in the automobile industry today because of their awesome success in digital marketing. The foundation of the BDC at Courtesy Chevrolet is a successfully implemented Search Engine Marketing strategy along with a cutting-edge technology rich Web site.
Together the combination promotes and drives all of their profi t centers within the dealership. Paglia uses targeted banner campaigns as an effective online marketing medium that allows Courtesy Chevrolet to market directly to people living within the geographic areas around their dealership. “Our main goal is to be where our customers are and try to capture them before they fall trap to third party lead providers who sell our leads to competitors,” Paglia adds. “Our ROI has gone up, our cost per sale has dropped, and our traffic and incremental sales have skyrocketed.”
In one month alone, HouseofCourtesy.com generated an additional 384 units with a cost per sale ranging from only $125 to $200. When asked to name the single most important factor in launching a successful BDC, Scott Gruwell tells us, “If you can’t generate traffic, the BDC will be an expensive failure.” Courtesy relies on CRM tool buzztrak for e-mail marketing and search engine marketing to generate more traffic. “Our new digital marketing strategy and high-end media-enriched Web site designed by BZ Results have increased our leads by more than 400 percent,” adds Gruwell.
THE BOTTOM LINE
• Courtesy Chevrolet uses HouseofCourtesy.com to promote all of the profi t centers within the dealership.
• Courtesy Chevrolet’s BDC helped sell 384 extra cars and generate $582k in one month.
• Courtesy Chevrolet consistently recognized as one of the top Chevy dealers in the United States.
• Courtesy Chevrolet was named one of the Top 10 eCRM Dealers of the Year 2004, 2005 and 2006.
• Courtesy’s Web site and BDC took them from 40 sales to 384 sales after a two-year period.
• Courtesy’s cost per sale ranges from $125-$200 since installing their new marketing and BDC system.
Dave Smith Motors
No. 1 Dodge Chrysler Jeep Dealer
Dave Smith is breaking the mold. Dave Smith Motors is located in Kellogg, Idaho, a small rural mining town with a population of 2,400. With technology created in-house, Smith is using the power of the Internet to increase sales and profits – and increase they did. His efforts have yielded Dave Smith Motors the recognition of being the largest Dodge Chrysler Jeep Dealer in the world for the third year, and the largest GMC Dealer in the Northwest.
Dave Smith Motors is selling over 400 Internet-lead vehicles a month with CRM technology that he developed and implemented. But for Ken Smith, president of the dealership, size doesn’t matter. His aggressiveness and creative mind has helped the dealership he took over from his father grow to a $250 million business in a county of only 14,000 people. In the early 1980s Dave Smith developed the one-price system and continues today with this “hassle-free” buying philosophy. Smith draws customers from as far away as Alaska, California and Colorado because they all get the same bargain-basement deal – no haggling over discounts. When the company first got started with the Internet and CRM, its approach was to sell at a price lower than MSRP-plus, so it started its own pricing system.
The companies had about 10 computer programmers at one time punching numbers to automate pricing to give customers an immediate, automated price. They decided that they wanted to be ahead of the competition and ahead of the market technologically as long as they could. Ken says, “When the Internet came about around 1992 we decided we wanted to be the dealer in the Internet field. At the time we started, we weren’t doing much Internet business, and we weren’t sure where it would take us. But we did know that if we could be first into it and could keep updating our Internet sites and keep on progressing with it, we might succeed.
That’s why we developed our own system, because at that time there weren’t any lead-generating/follow-up systems available on the market. I then put in a full-out press on developing a Web site and then started developing our Lead Rocket. Today it’s a completely different system than what we’d originally developed.”
Dave Smith Motors’ system also has a CRM tool to help track leads. It requires site visitors to provide extensive information before they can submit the request, which helps get better-quality leads. Lead Rocket time and date stamps the leads, and then turns them over to the Internet team manager who distributes them among the 25 dedicated Internet sales associates. Overflow leads go to the other sales associates in the main showroom.
Lead Rocket also helps management track CSI. All sales associates must maintain a minimum of 95 percent customer satisfaction score. At Dave Smith Motors, they expect high scores, which means associates have to take care of the customer. As an intranet system, Lead Rocket lets anyone within the dealership send electronic messages throughout the store. The system features in-house classified ads, lists all accessory prices and phone numbers for all employees. And, because the system is tied into their phone system, they know who the caller is when they phone and which sales associate they’re working with.
THE BOTTOM LINE
• Dave Smith Motors is the world’s largest Dodge Chrysler Jeep Dealer for three consecutive years.
• Their Web site helps them sell more than $600,000 a month in accessories.
• Their system includes a CRM tool to capture information and stay in contact with the customer.
• Dave Smith Motors is the largest GMC Dealer in the Northwest.
• Dave Smith Motors has used the Internet and CRM to help grow its operation into a $250 million business.
• The dealership has a team of dedicated Internet sales associates to handle all inbound leads.
Harvey Autos
Becoming No. 1 Online Dealer in State by Selling 70+ Additional Units/Month
Within the last year, Harvey Autos has increased its online sales by 70-80 additional units per month, a healthy increase from selling only 5-8 units per month just a few short months ago. This significant increase is due to the implementation of a new digital marketing strategy. This small dealership in Bossier City, Louisiana is now on their way to staking claim of being the largest on-line sales dealership in Louisiana.
Harvey Autos hired an Internet marketing consulting firm with automobile expertise to design and create their site based on the needs and interests of consumers in their region. Gloria Williams, eCommerce director, explains, “Our technology partner provided us with a cuttingedge Web site fully equipped with state of the art features. Our new Web site serves as a digital marketing center that drives traffi c straight to our showroom. We used the tools and training provided by our new partners to establish HarveyAutos.com as the primary Internet buying service for our region.
“Our technology partner provided us with a cutting-edge Web site fully equipped with state of the art features. Our new Web site serves as a digital marketing center that drives traffic straight to our showroom.” – Gloria Williams, eCommerce Director
Our new Web site is key to generating Internet leads, phone traffic and showroom traffic while promoting all of our profit centers within the dealership.” Harvey Autos needed to find an effective way to lead their new-age customers to their Web site instead of to their competitors’ Web sites. Gloria adds, “We also take advantage of advanced Search Engine Marketing to promote our Web site. SEM ensures that we get listed ahead of competitors on the popular search engines. I don’t know exactly how the formula works, but I know it’s effective. We have seen our leads more than double and our phones are ringing off the hook!”
Results are what effective Web sites are all about. “Our Web site has consistently converted fi ve to six times more visitors into leads over our previous site. Because our site was created by experts who understand the car business, it builds value in our dealership. Another nice feature is “Virtual Test Drive” which gives the consumer a multi-media tour of the vehicle they are interested in. Whether the customer is a high-speed or dial-up user, the tours engage the consumers and intimately connect them to the vehicle. Other features that our customers comment on are the unique “Why Buy” buzzmails or “Trade In Tutorial” micro Web sites that can be sent to our customers with links to our specials, coupons and contact forms that keep the customer engaged in the buying cycle,” added Williams.
Now that the BDC Team at Harvey Auto has a good handle on Internet and incoming phone opportunities, the game plan is to grow additional opportunities with Search Engine Marketing. Their goal is for 100+ units alone from the BDC Department and are expanding the department with another staffer to help with the load.
THE BOTTOM LINE
• Harvey Autos uses mass Search Engine Marketing to attract new buyers because it is inexpensive and produces a high return.
• Harvey Autos has trained their people on a successful process to increase their appointments and show ratios.
• Harvey Autos uses a customer management system to manage and measure all of their customer activity.
• Harvey Autos uses their CRM tool to automate their e-mail and follow up activity.
• Harvey Autos uses Internet marketing to improve their profi ts in sales & service departments while reducing overall advertising costs.
• Harvey Autos has dominated the search engines to create a regional buying service at www.HarveyAutos.com.
