January

Happy New Year

Our staff at AutoSuccessis dedicated to address-ing the specifi c needs of new car and light truck dealerships by providing cutting-edge, solution-based resolu-tions to aid dealers in becoming more suc-cessful, and ultimately to establish the results

they desire: increased profi ts. 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 lev-eraged 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, experi-ence and resources toward this marketing phe-

nomenon. This revolutionary medium has en-abled 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 frustrat-ing part of this equation is that dealers cannot measure the return on their advertising invest-ment. That is why many successful dealers are shifting their ad spending from mass advertis-ing to targeted digital marketing that has a bet-ter return and is more measurable.

Another trend that has infl uenced dealer ad-vertising is the infl uence the Internet is having on how customers are beginning their buying process. Statistics consistently show a grow-ing 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 custom-

ers know and expect more from their dealers than ever before.

Therein lays the challenge and the opportuni-ty. Smart dealers are meeting and exceeding these customers’ expectations. Top perform-ing dealers have used the Internet to increase their retail sales by 20 to 25 percent and to improve the profi tability of their F&I, Service and Parts Departments as well. Although dif-ferent dealers’ strategies vary, there are some essential elements that most successful dealers possess. AutoSuccess looks for the following fi ve 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 traffi c to their site, phones and showroom.• HIGH-IMPACT WEB SITE: A customer-friendly site that is innovative, engaging and informative, and that promotes all profi t cen-ters of the dealership.• POWERFUL CRM TOOL: A fully au-tomated prospect management tool that will manage and measure all of their leads and drive quality traffi c 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 appoint-ments and well-equipped sales consultants to build value in the dealership and the vehicle.• PRECISION MEASUREMENT & TRACKING: Measurable results and auto-mated reports to track metrics in order to con-tinually refi ne processes and improve results.

Winning entries tell a great story of marketing challenges, demonstrate excellence in market-ing 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.

by Patrick Luck

• Tasca.com

• Walser.com

• Sheehy.com

• RickCase.com

• RedMcCombs.com

• ParagonHonda.com

• HerbChambers.com

• HouseofCourtesy.com

• DaveSmithMotors.com

• HarveyAutos.com

10

What better way for one

of the nation’s fast-

est growing dealers

to spend his spare

time than behind

the wheel of a modi-

fi ed ’07 Shelby Mus-

tang 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 As-

sociation Top Alcohol

Funny Car piloted

by Bob Tasca III.

Likewise, Tasca Automotive Group is no ordi-

nary dealership. The Tasca Group has grown

from a small one-rooftop store to a multi-fran-

chise 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 con-

tinued growth and success can be attributed to

the “Tasca Way” of doing business which fo-

cuses on customer satisfaction.

The scope of Customer Relation Management

has evolved into more than just the face to face

encounter on the showroom fl oor. 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 cus-

tomers,” explains Bob. “Here’s what an effec-

tive CRM tool should provide:”

1. Customized marketing lists for targeted prospects2. Media enriched customized bulk e-mail campaigns3. Automated delivery of graphic and multime-dia digital presentations via e-mail4. Integration of optional promotional and cus-tom features5. Management of calls, appointments and pro-cesses

6. Automated and measurable results

More and more successful dealerships are us-ing the Internet to communicate with their cus-tomers because it is effective, convenient and inexpensive. “Our customers love our buzz-mails,” adds Bob, “These customized, multi-media mini-commercials are loaded with inter-active features that keep the customer engaged while obtaining the information they are seek-

ing. When it comes down to it, whatever we’re

doing is working!”

Tasca Auto GroupAccelerating from eCRM to eSatisfaction with 63% Customer Loyalty

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.

“Our Digital Marketing System turns traffi c into leads while pro-viding the kind of online experience that fi ts with the Tasca Way.”- Bob Tasca III

11

Walser Automotive has

joined the revolu-

tion, implement-

ing a centralized

eStrategy in 12

franchises. Estab-

lished in 1956,

Walser Automotive

has grown into a

network of top qual-

ity dealerships across

Minnesota who are

committed to offering

the best service in

the industry. What

makes the Walser Group unique is their “ne-

gotiation-free” philosophy, which they call

the “Walser Way.”

Walser Automotive has a fundamentally dif-

ferent 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 ap-

plies 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 pro-

cess 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 im-

portance 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 conver-

sion 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 pro-

cesses in place, the greatest technology in

the world is a wasted investment. Newcom-

er 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 com-

mitment to centralizing processes and ex-

ecuting 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 Walser GroupExecuting Success: Increasing Closing Ratio to 20 Percent

“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

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.

12

Since implementing their new digital market-

ing 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 de-signed to utilize the

Internet to improve business is not just a passing fad with tem-porary 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 profi t generating center.

Sheehy Automotive, with 18 franchises within 13 dealerships across Maryland and Virginia, had immediate results following the imple-mentation 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, In-ternet 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 provid-ers,” explains Reutter. “We worked with a re-sults-oriented automotive Internet consulting fi rm to build a complete strategy including the redesign of our Web site, staffi ng and training the team, implementing a process, establishing pricing, and fi ne-tuning lead management," Reutter added.

On the topic of marketing, Reutter refl ects, “If you can’t generate traffi c you might as well not have a Web site. Search Engine Optimiza-tion in conjunction with multi-media buzzmail campaigns blended with traditional marketing

media has enabled us to increase traffi c and sales at a lower cost than ever.”

With Internet marketing, everything is mea-surable. 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 unparal-leled 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 profi t• Cost per sale by lead source

Sheehy AutomotiveContinued Success – Increased Results up to 700 Percent

“We worked with a results-oriented automotive Internet consulting fi rm to build a complete strategy including the redesign of our Web site, staffi ng and training the team, implementing a process, establishing pricing and fi ne-tuning lead manage-ment.” - Roy Reutter, Internet Director at Sheehy

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 mar-ket 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.

13

14

Rick Case sold his fi rst car at the ripe age of 14 years old. It was an old “fi xer-upper” which he purchased,

tweaked, and then resold for a profi t. Rick claims he made more on that one car than he had made all year as a paper delivery boy. And so the leg-

end began. By 1965 Rick had opened his fi rst Honda vehicle franchise, and estab-lished 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 enjoy-ing 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.

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 Auto-motive 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 traffi c. Their new e-marketing strategy, complete with new Web site tech-nology and design, helped generate an aver-age 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 Vir-tual Dealership which serves as our own re-gional buying service. Our site along with innovative SEM strategies drives more qual-ity 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 Certifi ed” 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 pro-vides 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 manage-ment tool, which makes it quick and easy to execute campaigns at any time.4. Create effective, low-cost e-mail cam-paigns: With our new CRM tool we can reach hundreds and even thousands of pros-pects 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.

"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

Rick CaseeCommerce Dept. Sells Additional 250 Units per Month

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 en-tire customer database.

15

Everything is bigger in Texas, including the

results from Red McCombs’ digital marketing initia-tives. Successful i m p l e m e n t a t i o n

of digital market-ing strategies is the key to success for the nation’s top per-forming dealerships. Capitalizing on the power of digital marketing, Red Mc-Combs.com is leading the way to success by establishing Red Mc-Combs as one of the largest dealerships in

the country. After successfully estab-

lishing 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 eCom-merce, provides a summary of what it takes to achieve phenomenal success with digital mar-keting.

FIVE KEYS TO SUCCESSFUL IMPLE-MENTATION OF DIGITAL MARKETING

1. The Right Vision: With the help of a quali-fi ed automotive Internet specialist, defi ne a clear vision of your dealership goals and spe-cifi cally how you plan to get there.2. The Right Strategy: Devise a plan that in-volves commitment from the top. In order to effect change throughout the dealership, you need management commitment and direct in-volvement from the dealer to the management team.3. The Right Technology: Your digital mar-keting 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 edu-cated, well trained specialists who are passion-ate about what they do.5. The Right Process: Devise a step-by-step action plan to maintain a successful CRM strat-egy. 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 follow-up 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 profi ts 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.

“Our Digital Marketing System continues to provide us with consistent re-sults, increased sales and customer satisfaction at a lower cost per sale.”- Tony Rimas - eCommerce Director Red McCombs

Red McCombsA Texas-Sized Legend: Selling 500 Online Units per Month

The last three years have been quite an ex-

perience for Para-gon 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 in-creased their overall sales by over 200 per-

cent according to their factory reports. Results like these have earned www.ParagonCars.

com the Golden Web Award and three-

peat eCRM Dealer of the Year. What’s the key to their success? In the latter part of 2003, Ben-stock 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 ad-vertising expense decreased our sales increased by almost 200 percent,” said 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 technol-ogy 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-me-dia e-mails to drive traffi c and a prospecting and CRM tool that automates much of the e-mail activity. Our Web site generates measurable re-sults: www.ParagonAuto.com. 3. Marketing: Traffi c 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 traffi c 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 profi t we won’t get one so we aim to be competitive while maintaining a fair profi t.

8. Training: Training holds the key to sustained results. To launch our new system, we con-ducted a manager’s strategy bootcamp and then systematically trained everyone in the CRC on the best phone, follow-up and sales skills the in-dustry has to offer. 9. Measure/Manage: Set up automatic reports on everything you need to improve your busi-ness: the number of leads by source, response rate and time, appointment percent, show per-cent, closing percent, cost per lead, cost per sale, etc.

Paragon HondaKeys to Success Generate 200% Sales Increase While Lowering Costs

“After the fi rst four months we left the newspaper and saved over $100,000 in ad-vertising. The best part is that while our advertising expense decreased our sales increased by almost 200 percent.” - Brian Benstock

THE BOTTOM LINE

• Paragon’s overall sales have increased by almost 200 percent incremen-tally year to date over last year according to their factory reports.

• Paragon’s digital marketing strategy made them No. 1 in Certifi ed 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 traffi c 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.

16

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 automo-bile 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’ col-lection 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 fi tting topic would be, “What drives Herb Chambers?”

Herb Chambers purchased his fi rst car deal-ership 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 coun-try. What drives Herb Chambers is his undy-ing commitment to provide the highest quality service to his customers, and to operate profes-sionally managed dealerships committed to be-ing leaders in the market areas they serve.

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 lever-age 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 ser-vice to their customers.

Herb Chambers utilizes the ever-evolving tech-nology of Search Engine Marketing and Search Engine Optimization to ensure top ranking among the world’s most popular search en-gines like Google, Yahoo and MSN. An ef-fective 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 direc-tor. “We measure everything and hold regular meetings to discuss our progress and to fi nd ways to fi ne-tune our processes. The custom-ized 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.

“We measure everything and hold regular meetings to discuss our progress and to fi nd ways to fi ne-tune our processes. The customized reports give us the informa-tion we need, the number of leads by source, response rate, appointment percent-age, show percentage, closing percentage and cost per sale.” - Jay Gubala

Herb ChambersSelling Additional 600-700 Vehicles Online

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.

17

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, estab-lished a dealership that was destined to

become one of the largest automobile franchises in the Unit-ed 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 mod-est 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 manag-ers, respectively.

The Business Development Center at Cour-tesy Chevrolet, under the direction of Ralph Paglia, sets the pace in the automobile indus-try today because of their awesome success in digital marketing. The foundation of the BDC at Courtesy Chevrolet is a success-fully implemented Search Engine Marketing strategy along with a cutting-edge technol-ogy rich Web site. Together the combina-tion 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 Cour-tesy 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 traffi c and in-cremental sales have skyrocketed.” In one month alone, HouseofCourtesy.com gener-ated an additional 384 units with a cost per sale ranging from only $125 to $200.

When asked to name the single most impor-

tant factor in launching a successful BDC, Scott Gruwell tells us, “If you can’t generate traffi c, the BDC will be an expensive fail-ure.” Courtesy relies on CRM tool buzztrak for e-mail marketing and search engine mar-keting to generate more traffi c. “Our new digital marketing strategy and high-end me-dia-enriched Web site designed by BZ Re-sults have increased our leads by more than 400 percent,” adds Gruwell.

Courtesy ChevroletExcusing the Competition: Selling Additional 384 Units in One Month

“Our new digital marketing strategy and high-end media-enriched Web site have increased our leads by more than 400 percent.”- Scott 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.

18

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 cre-ated in-house, Smith is using the power of the Internet to in-crease sales and prof-

its - and increase they did. His efforts have yielded Dave Smith Motors the recognition

of being the larg-est 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 fi rst 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 com-panies had about 10 computer programmers at one time punching numbers to automate pric-ing to give customers an immediate, automated price. They decided that they wanted to be ahead of the competition and ahead of the mar-ket 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 fi eld. 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 fi rst 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, be-cause at that time there weren’t any lead-gener-

ating/follow-up systems available on the mar-ket. 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 bet-ter-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 as-sociates. Overfl ow 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 classifi ed ads, lists all accessory prices and phone numbers for all em-ployees. 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.

Dave Smith MotorsNo. 1 Dodge Chrysler Jeep Dealer

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 acces-sories.

• 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 op-eration into a $250 million business.

• The dealership has a team of dedicated Internet sales associates to handle all inbound leads.

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Within the last year, Harvey Autos has increased its on-line sales by 70-80 additional units per month, a healthy

increase from sell-ing only 5-8 units per month just a few short months ago. This signifi cant in-

crease 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 con-sulting fi rm with automobile expertise to de-sign 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 cutting-edge Web site fully equipped with state of the art features. Our new Web site serves as a digi-tal marketing center that drives traffi c straight to our showroom. We used the tools and train-ing provided by our new partners to establish HarveyAutos.com as the primary Internet buy-ing service for our region. Our new Web site is key to generating Internet leads, phone traffi c and showroom traffi c while promoting all of our profi t centers within the dealership.”

Harvey Autos needed to fi nd 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 ad-vanced Search Engine Marketing to promote our Web site. SEM ensures that we get listed ahead of competitors on the popular search en-gines. 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 con-verted fi ve to six times more visitors into leads over our previous site. Because our site was created by experts who understand the car busi-

ness, 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” buzz-mails 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 cy-cle,” 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 addi-tional opportunities with Search Engine Mar-keting. Their goal is for 100+ units alone from the BDC Department and are expanding the department with another staffer to help with the load.

“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 traffi c straight to our showroom.” - Gloria Williams, eCommerce Director

Harvey AutosBecoming No. 1 Online Dealer in State by Selling 70+ Additional Units/Month

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 in-crease 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.

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