iRemarketing: Online Auto Marketplace Execs Share Best Practices for Dealers to Maximize Web Resources

As the Internet continues to become a more vital part of the automotive landscape, dealers have a wide spectrum of online retail resources available to them to aid in generating leads, expanding their footprint, using the Web as another avenue to sell cars and building relationships.

A big part of this is the continually growing presence of consumer-facing online marketplaces that dealers can utilize for a number of purposes, including inventory listing, generating leads, getting their brand established and more.

But with so many tools at their disposal, what are the most successful dealers doing to take advantage of the resources, specifically the online classified marketplaces?

What are the best strategies for using online marketplaces and what are important things for dealers to remember?

To shed some light on these areas, leaders from several of the industry’s top online auto marketplaces shared their advice and best practices for maximizing what dealers have available on the retail side of their operations. 

One of the major, if not the biggest, purposes for dealers utilizing online classifieds is for getting their inventory listings out to a widespread audience. So how can dealers use this resource effectively?

Offering his take, Clayton Stanfield, senior manager of dealer training at eBay Motors, said that most (more than 70 percent) of sales through his company’s vehicle marketplace are between buyers and sellers in different states.

As such, what the dealer posts online is the most critical — and perhaps only — influence on whether that customer buys, since the person is likely to only see that vehicle online. So, the dealer has to present the vehicle in the best possible light.

Stanfield urges dealers to post at 40 pictures of every vehicle they list, write detailed descriptions of the vehicles and answer every question and get back to every bidder.

“Remember: a good portion of your buying audience is a decent distance away. An eBay Motors buyer’s main source of information, as they decide on whether or not to buy your car, comes from your pictures, descriptions and phone/email contact,” Stanfield shared. “Over-deliver in this area and you will see more confident bidders, equaling higher sales.”

Chip Perry, president and chief executive officer of AutoTrader.com, strongly stressed the how vital it is for dealers to represent their vehicles in the best and most comprehensive manner possible.

“Use language in your ads that will speak to your customer and sell the car. Don’t just talk about how it has power windows and leather seats. Really talk up each car because each car will be special to someone,” Perry advised. “And then illustrate those cars with plenty of photos and video. People want to get a good feel for the vehicle online before they come down to the showroom, so use the tools at your disposal to show customers what they want to see.”

He continued: “AutoTrader.com offers a variety of tools — both in person and online — to help dealers understand how to best present their vehicles, and we encourage all our dealers to spend time with their reps or with our site to learn how to best use them.”

Meanwhile, Scott Murdock, the vice president of dealer sales at Vehix, also had some advice to offer.

He said, “Our best-performing dealers provide specific and unique information about each vehicle. If a buyer is interested in a car, the more details and photos that are available, the better the chance of securing a lead.”

Furthermore, Mike Romano, senior vice president of dealer sales and strategy for Kelly Blue Book, said that all advertising should include links to the dealer’s own website and specials, as well as the store’s address and phone number.

Romano stressed consistency and regular updates of the messages in ads, as well.

Chiming in, Michael Page, vice president of advertising products at Cars.com, suggested that the best sellers on his company’s site are the ones who “fully merchandise their listings online with multiple, high-quality pictures, descriptive sell copy and competitive pricing consistently.”

He continued: “When buyers visit a shopping site such as Cars.com, they want to know as much as possible about a vehicle without having to contact the store. A complete virtual test drive lets them determine the car’s condition and get a sense of whether it will meet their needs.

“If there’s a match, buyers typically contact the store to confirm availability and schedule a test drive. Dealers trying to drive the lead or the visit by withholding key information and ‘creating mystery’ around the car usually see the plan backfire,” Page added. “Shoppers simply move on to competitors who provide the details they want.”    

Continuing on, Perry also emphasized that dealers should utilize their websites and other avenues to distinguish themselves from other stores. In other words, show the customer how you stand out.

“Use AutoTrader.com and other online resources to sell your dealership as well as your cars. People are going to the Internet to get information about the actual vehicles you have for sale and to find out if you are a dealership they want to do business with,” Perry pointed out.

“Take some time in your ad to also highlight what makes your dealership special and to make it stand out from the crowd. Do you have the best service department in town? Do you have the largest inventory overall or the largest inventory of some popular models? Do you have the best prices and specials? Is your location more convenient than your competition? Have your salespeople won awards or recognition in the industry?” he continued. “Every dealership has something that makes them different and unique and that will be of value to customers.”

Adding his input, Romano shared: “The online consumer is looking for a reason to choose a dealership. Unless dealerships focus on a consistent message, including two or three key reasons why shoppers should choose their dealership, its advertising will get lost in the crowd.  

“One of the best practices our dealers do is take their current local TV ads and integrate them into their targeted advertising units on Kbb.com,” Romano continued. “This gives the dealership an opportunity to get in front of the customer and focus on the reasons to do business with them.”

Another big thing for dealers to bear in mind is to respond to online consumer inquiries quickly, professionally and with the information the customer needs. Communication is key.

“Understand that watchers are potential bidders and bidders are buyers. Being responsive is critical, especially in an auction environment,” said Stanfield, who is with eBay. “Communication with your buyers builds trust and dealers can earn the bidders trust by helping them through the process.

“Communication also helps you pre-qualify bidders and get to know what they are looking for,” he shared. “Convert bidders into buyers by giving them the information they need to make a decision.”

Meanwhile, over at Vehix, Murdock stressed how dealers can stand out from the crowd with a “thoughtful and courteous” phone call that answers an inquiring shopper’s questions in a timely manner.

“We listen to customer calls every day, and the difference between good and bad calls is huge. A good call includes asking questions about the customer’s needs and matching those needs to the specific vehicle they’ve inquired about or a similar vehicle in inventory,” Murdock noted. “The bad calls sound almost like an awkward first date and don’t really go anywhere.”

He continued: “When you ask questions that define the customer’s needs, then meet those needs with a properly priced vehicle, getting a buyer into the dealership for a test drive is much easier.

“It only takes three to five minutes to create a relationship that clearly places value on the customer. We’re constantly surprised by how few dealerships consistently ask thoughtful questions that value the customer’s needs and time,” Murdock added.

In the communication vein, Romano urges dealer to not use auto responder e-mails.

“Consumers submit a lead because they want to learn more about a product, price or your dealership. Respond to their request specifically to meet their needs,” he stressed. “Let the consumer know that they are valued and not just another lead.”

Furthermore, when it comes to customers, Page implored dealers to walk “in their shoes.” In essence, put the customer first and think about what they would want.

“With hundreds of vehicle models available today, what information would you want to be confident in your decision, and how would you want to be treated? We’re so familiar with our product and the ins and outs of the business that we often forget how intimidating buying a car can be for many people,” he suggested.

“The dealers who use our site to sell the most cars promptly respond to every inquiry they receive, typically within the hour, and follow processes that help them work with shoppers across today’s longer buying cycles that can span 30, 60, 90 — or more — days. They also work to qualify customers to determine their needs and identify the best match — whether it be a new, used or certified used alternative or an altogether different make/model,” Page noted.     

Many of the online marketplaces out there for dealers to use offer a wide spectrum of unique tools.

Romano, for one, recommends that dealers utilize KBB Values not only online but also at their actual stores.

“Provide sales representatives with a Kelley Blue Book pricing tool such as LeadDriver, CDM or KARPOWER. This gives sales representatives the ability to walk a consumer through Kelley Blue Book Values while they are at the dealership,” he shared. “This builds trust into the process and assists in turning that shopper into a buyer.”

As for AutoTrader.com, Perry noted: “I would say the best advice I can give is to spend time with your AutoTrader.com rep and really work through a plan to make sure you’re using the right tools in the right way. Our sales people are committed to helping dealers sell more cars and that means we want to invest the time to make sure of all the tools and products AutoTrader.com offers, each dealer is using the ones that will make the most difference for them. 

“The solutions that work for one dealer may work differently for another dealer or another dealer may have better results with a different configuration of our solutions, so ask the questions and work with your AutoTrader.com rep,” he added.

Stanfield recommends that dealers utilize an eBay store when posting vehicles for sale on his site.

“Sellers who properly optimize their eBay Store are far more likely to show up higher in Google and Yahoo! searches, in fact one in 20 searches on Google is an eBay item or eBay store. An eBay Store is a comprehensive e-commerce solution that helps your dealership get more out of eBay’s access to millions of shoppers worldwide,” he shared.

“Through an eBay store, a dealership is creating a central shopping destination where buyers can learn more about dealership,” Stanfield continued. “Additionally, stores provide enhanced marketing opportunities to help your dealership reach prospective customers such as newsletters, favorites, blogs, and custom pages.”

Murdock added: “We also have dealers who successfully use showcase ads and display advertising opportunities to build their brands and create clicks into their inventory.”

Continuing on, the experts raised the point that having an online presence is more than simply posting vehicle listings to the Web. As some illustrated, a dealer must create a “virtual showroom.”

It’s about having an actual business online, not just a bunch of cars listed.

“Our top-performing dealers understand that Internet advertising connects them with car buyers in ways traditional media can’t match. Rather than simply moving their listings online, they’re creating a virtual showroom,” Page, of Cars.com, emphasized. “Shoppers can view the store’s full inventory, see a ‘demonstration’ of the vehicles they like and connect with a salesperson for more information or to set an appointment.”

Page went on to note that the most successful dealers using Cars.com create more awareness of their specials via display advertising. They incorporate videos to paint a better picture of the condition the vehicle is in and also to highlight its features. Dealers are also instantaneously reaching consumers via online chat.

“Consumers increasingly want to be sure they’re buying the right car from the right dealership. Stores with the people and processes in place to satisfy that need will sell more cars and earn a reputation that helps them win repeat and referral business,” Page stated.

Stanfield added: “Our most successful dealers have created more than just an Internet presence, they have created an Internet business. A successful e-dealership modifies its traditional sales process to support sales completely over the Internet, often employing a dedicated sales team to focus only on the Internet business.” 

Another important element of dealers establishing and maximizing their presence online is through their own websites. There are several key website strategies and elements that can set successful dealers apart from the rest.

Nicole Case, director of product marketing for Reynolds Web Solutions at the Reynolds and Reynolds Co., offered a few tips for dealers, one of which is to utilize websites more as a customer relationship tool rather than just a resource for generating leads.

“That means we’re also seeing the most effective dealers connecting with customers online throughout the life cycle of their vehicle — from when a consumer is shopping for a car on the Internet or from their mobile phone to when the customers is making a service appointment or checking their vehicle’s service history from the dealer’s website,” Case shared.

She added: “Another best practice that we’re seeing more frequently is using our Web platform to connect with consumers in the way they prefer to be reached — Web or mobile device. Our platform enables a dealer to connect in both ways, and I believe utilizing that functionality is an important component in best practice digital marketing by dealerships.”

Dispensing some more advice to dealers, Case emphasized that, typically, when it comes to websites, you reap what you sow, as is often the case with technology.

“Regardless of the provider, I’d challenge every dealer to nail down the answers to two fundamental questions: ‘What are the tools available so that the dealer can easily and efficiently manage every aspect of their website?’ And, second, ‘What are the processes and training required within the dealership to gain the most business benefit from the website?’” Case shared.

Matt Murray, director of digital marketing at Dealer.com, stressed the importance of dealers doing monthly evaluations on their websites and putting together a solid game plan for the Web.

“Dealers are starting to clearly understand the importance of updating their websites on a regular basis with unique, engaging content,” Murray noted, citing a few examples of how dealers are utilizing Dealer.com resources, such as the PageBuilder tool and social toolbar.

“Across our client base, dealers understand the importance of a well-rounded Internet marketing strategy,” he added. “Adoption of SEO (search-engine optimization), paid search and local optimization is at an all-time high.”

Murray continued: “All Dealer.com clients are encouraged to reevaluate their website, search- and lead-management performance on a monthly basis. We continually urge dealers not to settle for a ‘good month,’ but to look for opportunities to further develop their existing properties and strategies to ensure continued growth.”

Moving along, Case went on to emphasize how important the “processes and consistency” of following up on website leads can be to dealers in generating traffic at the store.

“In the end, it’s the blending of technology, processes, and people that make the difference for a dealership. As a result, website providers need to understand — and excel — in supporting all three. And that’s something the team here at Reynolds takes very seriously,” she concluded.