david kain at j.d. power and associates automotive internet roundtable

Internet Systems & SearchInternet Systems & Search

• Utilizing CRM Tools to enhance the Internet sales process • The power of Search Engines • SEO/SEM – Differences in strategy and the challenges for dealers

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CredentialsCredentialsDavid Kain• Owner of Kain Automotive, Inc., Automotive Sales Training

specializing in Internet Sales and Automotive Business Development Centers

• Co-Founder and COO of FordDirect.com• 18 years automotive retail experience; partner in 2 stores

– Jack Kain Ford– Kain Family Ford Lincoln Mercury

• 12 years Dealer Principal• Served on 2000 Ford National Dealer Council • BBA in Marketing and Management from Eastern Kentucky

University

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Internet Selling SystemInternet Selling System

Imbedding your Internet Selling System

into your CRM tool

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Internet Selling System ElementsInternet Selling System Elements

• Marketing and lead generation• Lead handling process• Pricing strategies• Trade handling• Financing• Sold/Unsold follow-up

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Your Selling System is your foundationYour Selling System is your foundation

• Once you have a system designed and in place you can build from there

I hope you have a proven

system you can bring with you

Well….I was hoping you had

a system

We use a proven system

and with the right effort you

will succeed

I am glad to hear that – Your system is why I am interested

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Once your system elements are in place…Once your system elements are in place…

• You can…– Build your team to manage the system– Develop your marketing plan to fuel the system with

prospects– Select your Customer Relationship Management (CRM)

tool to support your system

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Your CRM tool should support Your CRM tool should support YOUR System – YOUR System – • Select the right tool for your system • Imbed your schedules, templates, scripts• Ensure your sales managers understand the tool and

supervise the process daily

not the other way around

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Easy to read Daily DashboardEasy to read Daily Dashboard

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Automatic Task SchedulerAutomatic Task Scheduler

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Easy to access Call ScriptingEasy to access Call Scripting

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Easy to manage Template LibraryEasy to manage Template Library

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Just keep in mind…Just keep in mind…

• Don’t change your Internet Selling System to fit your CRM

• Change your CRM to meet your Selling System

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The most critical element of any The most critical element of any system is a steady stream of system is a steady stream of

PROSPECTSPROSPECTSYour best source?

Your own website or equivalent using

SEARCH13

Internet SearchInternet Search

The power of Search Engines

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SEO/SEM – Differences in SEO/SEM – Differences in strategy and the challenges for strategy and the challenges for

dealersdealers

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Working with Search Spiders is Working with Search Spiders is complicated and can be expensivecomplicated and can be expensive

Search Engine Spider

It is critical that you or

the company you work

with understand

the complexity of all forms of SEARCH

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Species: Arachnida - Searchus

Determining your Search StrategyDetermining your Search Strategy

What do you want the campaign to accomplish?• Do you want customers to visit the showroom, call

or fill out a form? • Do you want to focus on new inventory or pre-

owned, or on special finance? • If multi-branded - What brands do you want to

focus on?• Do you want to focus more on service appointments

or parts and accessories?

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There are 3 forms of search resultsThere are 3 forms of search results

=Organic Search

=Vertical Search

=Paid Search

•Original Search Page•General or National•Algorithmic

•Query Specific•The Future of Search•Algorithmic

•12 – 14 Links•Advertising•Pay Per Click

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Top things to know about SEOTop things to know about SEO(Also known as organic search, natural & free listings…)(Also known as organic search, natural & free listings…)

1. All search engines have organic rankings from “crawling” the web2. Organic optimization is about influencing, not controlling rankings 3. Optimizing Organic Search is Step 1 in a smart search strategy

Organic Search Results

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Top Things to Know About Vertical Search Top Things to Know About Vertical Search (Also known as business directory, local search, one box…)(Also known as business directory, local search, one box…)

1. Yahoo and Google display vertical results with search listings2. Listings can be influenced through business submissions 3. Vertical Search is complimentary to paid and organic efforts

Vertical Search Results

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Top Things to Know About Paid Search Top Things to Know About Paid Search (Also known as pay-per-click, search engine marketing (SEM), & paid placement)(Also known as pay-per-click, search engine marketing (SEM), & paid placement)

1. All major search engines offer Paid Search It pays their bills!

2. Paid Search performance driven by bid strategy & campaign quality

3. Google & Yahoo paid ads are run on dozens of network sites!

Paid Search Results

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Organic SearchOrganic Search + + Paid Search + Paid Search + Off-Line AdvertisingOff-Line Advertising = =

Seattle Area Honda Dealer

“Klein Honda – Your Customer Care Dealer!”

Appearing in both paid and organic search doubles the likelihood that the consumer will choose to visit your website. Consistency of message across media nearly

doubles website conversion rates according to Cobalt.

Best Way to Earn Consumer Trust / Attention

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Once they click – where do they go?Once they click – where do they go?

• Dealer Websites• Landing Pages• Proxy Sites designed to mirror dealer sites

• All 3 of these formats have advantages – you have to decide what works best for you

• Ask your Search Provider about each one and the pros and cons

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Not clicks – Not clicks – BUYERS!!BUYERS!!

Use a Search Provider that…• Demonstrates its ability to deliver high quality,

ready-to-buy leads to your site

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Transparent ReportingTransparent Reporting

Reporting should be transparent reporting that is easy to read

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Quantity versus QualityQuantity versus Quality

• High click volumes could cover up quality

Quality happens when…• Deliver prospects to their preferred information• Direct prospects to your profit centers• Your search program should support your goals

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Bids are illustrativeCPC = Cost per click

10

100

1,000

10,000

100,000

Chevrolet(2.01 CPC)

Flint ChevroletDealer

(1.02 CPC)

Que

ries

per

Sea

rch

Ter

m

High Volume (IP Targeted)Well Trafficked Keywords

Increased Specificity Better Converting Keywords

Highly specific Low Occurrence Keywords

ChevroletDealer

(1.18 CPC)

Find 2006Chevrolet Cobalt

(.10 CPC)2006 ChevroletCobalt Dealer

(.14 CPC)

Search Terms Uniqueness

Complexity arises from the Complexity arises from the combinations of keywordscombinations of keywords

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But as keywords get more specific they But as keywords get more specific they convert betterconvert better

10

100

1,000

10,000

100,000

Queriesper Search Term

High-Volume (IP Targeted)Higher click cost & average conversion

Increased SpecificityAverage click cost & higher conversion

Highly SpecificLow click cost & highest conversion

Search Term Uniqueness

Conversion Rates

- Highly specific “tail terms” result in more telephone calls to dealer

- Those consumers are more ready to buy28

How should dealers pay for Search?How should dealers pay for Search?

Dealers should…• Shift budget from ineffective advertising• Continue to invest in TV, and Radio

And how much should they spend?• It depends on the market, the brand and your goals• We recommend in most markets starting at $1000

but be aware your name could drop off some days

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BEWARE when selecting your providerBEWARE when selecting your provider

• Try to find one that that does not make you pay for clicks up front– It could mean they don’t have the resources to

cover the cost of the clicks as they occur– It may also mean that the service is less than

confident that you’ll be happy with the results – Go for one that provides results first, then bills you

accordingly

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Typical fee structuresTypical fee structures

• Set-up Fee• Fixed Fee or Management fee• Variable Fee• Ad Spend

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Something to think about…Something to think about…

Is it time for Search to become Pay for Performance?Rather than provide money to the Search Company to

do their best with the rankings

How about you only have to pay if they achieve the planned results?

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In SummaryIn Summary

• Design and Implement your Internet Selling System• Select a tool that compliments and supports your

system• Drive prospects into your system using Search

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Thank YouThank You

Contact Information:David KainOffice 1-866-546-3428

Cell 859-533-2626david@kainautomotive.com

www.KainAutomotive.com

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