Toyota kc region dealer summit presentation

Automotive Digital Marketing
Internet Sales Challenges
Toyota Dealers in 2010
Kansas City Region – Toyota Motor Sales
January 13, 2010 Dealer Meeting
Presented by Ralph Paglia
National Digital Marketing Strategy Consultant to Toyota Motor Sales, Inc.

Toyota Kansas City Region Dealer Summit on January 13, 2010 Ralph_Paglia@adp.com
Introduction and Background:
Ralph Paglia
Director - Digital Marketing Solutions
Dealer Services
• 20+ year auto industry leader in Digital
Marketing, Advertising, Lead Management and
dealership CRM process design and execution
• Executed Digital Marketing and Sales Strategy that generated 144,000+ leads to
single-point Chevy dealer 2006-2007
• Built dealer ISS team that sold 4,000+ Units to Web Leads in 2006
• Worked w/Ford in 2007-2008 to develop first fully integrated multi-publisher
Tier 3 Digital Marketing Consulting and Online Advertising program
• First retail automotive Behavioral Targeting Digital Advertising program while at
Courtesy Chevrolet in 2005, 2006 and 2007
• Internet Sales & Marketing Consultant to Ford, Mercedes-Benz, GM, Honda,
Toyota, Mercedes-Benz, Hyundai and 250+ dealers
• Started generating Internet leads in 1988 using CompuServe ISP access and
vehicle listings on defense contractor BBS’s in SoCal
Cell: 505.301.6369 ralph_paglia@adp.com www.ADMPC.com

Toyota KC Region accomplishments in 2009
What a few top performing Toyota dealers are doing
to become more competitive in 2010
Impact of Social Media on marketing to car buyers
Dealership Lead Management
A few recent Facts and Figures
Summary with Q & A

0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Total Dealer Site Traffic*
KC Toyota Dealers November, 2009
(*KC Dealers with >1,000)

0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Website Visitor to Dealer Contact .
Conversion Rates
KC Toyota Dealers >1K Visitors November 2009
Performance Toyota of Kansas City
MidWest Toyota
Rolling Hills Toyota
Crown Toyota
Molle Toyota
Eddy's Toyota of Wichita
Coad Toyota
Performance Toyota of Lincoln
Toyota of Iowa City
Tim Corwin Toyota
Adams Toyota
Frank Fletcher Toyota
Performance Toyota of La Vista
Riley Toyota
Toyota of Muscatine
Wilson Toyota
Ernst Toyota
Anderson-Weber Toyota
Bellevue Toyota
Weiss Toyota
Dan Deery Toyota
Lewis Toyota
Dan Porter Toyota
Olathe Toyota
Toyota of the Black Hills
Cedric Theel Toyota
Lou Walsh Motors
Jay Wolfe Toyota
Cedar Rapids Toyota*
Superior Toyota *
Toyota of Des Moines
Billion Toyota
Reliable Toyota *

0
200
400
600
800
1000
1200
Leads from Dealer Site Visitors*
KC Toyota Dealers November, 2009
(*KC Dealers with >1,000 visitors)

5 KC Toyota Dealers Stood Out as Better
Website Content Marketers
1. Performance Toyota of KC
2. MidWest Toyota
3. Rolling Hills Toyota
4. Crown Toyota
5. Molle Toyota

With one click of the customer’s mouse button, Performance Toyota’s
eNewsletter makes it easy for customers to share “Money Saving Tips”
using any, or all of the customer’s social media accounts. These “Social
Sharing” apps do all the work so customers can share anything they find
interesting with friends, family, coworkers or anybody they are connected
with that the customer believes may benefit from the information and link
sent… So, let’s click on Facebook first.

After I click on the Facebook icon in Performance Toyota’s eNewsletter,
a new browser window automatically pops open and Facebook recognizes
me, has me already logged in and the eNewsletter article headline and an
image is preloaded and ready to go… Like a lot of people normally do, I
add a comment in the box at the top explaining why I am sharing this
Toyota dealer’s eNewsletter article about using your cell phone to take
advantage of money saving coupons… Wouldn’t you? If customer is not in
the mood to type, they can just click the “Share” button on the bottom
right…

When I was dropped back into the eNewsletter, I clicked on the
Twitter icon… With that one click of my mouse, the eNewsletter
pushes a Tweet tip to my Twitter account, ready for me to share
with 1,200+ friends, family, coworkers (Twitter followers) in a nicely
pre-populated little message… With a link to the article!

How hard is it to create your own
Advertising Campaigns on Facebook?

Over a Million Facebook
members within 50 miles of
Kansas City…
Over the age of 18.

326,000 Facebook
members within 50 miles of
Kansas City…
Over the age of 21, and
have a college degree.

980 Facebook members
within 50 miles of Kansas
City work for Hallmark…
Toyota Dealers can
message them through
Facebook Advertising and
Fan pages.

2,460 Facebook members
within 50 miles of Kansas City
work for Sprint…
Toyota Dealers can reach
them with targeted messages
through Facebook Advertising
and Fan pages.

1,440 Facebook members
within 50 miles of Kansas City
work for Wal-Mart…
and Fan pages.

480 Facebook members within
50 miles of Kansas City work
for DST Systems??
and Fan pages.

To test the waters, I built a
Facebook Advertising campaign
for my new Toyota Community
Fan page…
For $100 a day, it looks like I
can get 170 Facebook members
over the age of 21 to click
through and visit the Toyota
Fan Page…

Reputation Management
(Word of Mouth Marketing)
If we do a great job with a thousand
customers and fail to satisfy one… Can you
guess which customer will post an online
review and rate our dealership?

Can dealers get
their most satisfied
customers to post
positive reviews
and rate their
dealerships online?
In many markets,
one dealer figures
out how to get it
done, then takes
business away from
other dealers with
the reputation
created… Then
everyone else
works furiously at
trying to catch
up…

There is one of those
Facebook links again… What
happens when I click on it?

After I click on the Facebook link in Molle Toyota’s DealerRater review, a
new browser window automatically pops open and Facebook recognizes
me, has me already logged in and the customer review preloaded and ready
to post on the “Walls” of over 1,200 of my Facebook Friends… Like a lot
of people normally do, I add a comment in the box at the top explaining
why I am sharing this Toyota dealer’s review… If your Facebook using
customer does not want to type, they can just click the “Share” button on
the bottom right…

1. Are Toyota Dealers more or less competitive
than they were in the past as we go into the
2010 Auto Sales Recovery period?
2. How have the changes made in the Car
Buying Process adopted by most Americans
during the 2007 – 2009 Recession impacted
Toyota dealer competitiveness?

• Consumers get bad or no response from dealers.
Dealers simply drop as much as 50% of leads — they
never respond to them at all. And even when they do,
it’s frequently several days after the lead was
submitted — average lead response time is still more
than 48 hours for most OEMs we interviewed.¹
OEM Quote: “Of our dealers, I’d say 10% really ‘get it,’
and about 30% are kind of trying. But 60% don’t even
know where to begin — and don’t care.”
You have an Internet Sales Department…
Does it use proven and effective
Lead Management Process?
¹Mark Dixon Bünger; Forrester Research

A: Increasing Closing Ratios is not “Just
About” Response Times…
Q: Why the variations?

Impact of Dealer Response Attributes on Vehicle Purchase:
Dealer Response Attribute
Experienced by Customer within
24 hours* of Submitting Lead
Purchase
Respondents*
who DID NOT
experience
the attribute
% of Purchase*
among the
Respondents
who DID
Experience the
attribute
GAP
Statistical
Correlation
Factor of
response
attribute with
Vehicle
Purchase
% of ALL
Respondents
who DID
Experience
the attribute
Dealer made Direct Phone Contact
with Customer after sending Email 17% 27% 9% 11 59%
Dealer Acknowledged Customer Request 21% 23% 2% 1 94%
Dealer Showed Genuine Interest in
Customer’s Wants & Needs 21% 23% 2% 2 87%
Dealer Responded using Customer’s
Preferred Communication Method 21% 23% 2% 1 93%
Customer Received Price Quotes
from Dealer 20% 27% 8% 9 44%
Customer Contacted more than
once by Email and Telephone 21% 25% 4% 5 49%
Dealer Confirmed Availability of
Vehicle(s) for Sales and Delivery 22% 24% 3% 3 52%

Top 4
Ways to
Close
More
Sales to
Leads
Received
Dealer Response Attribute
Experienced by Customer within
24 hours of Submitting a Web
based Inquiry (Lead)
Purchase
Responden
ts* who
DID NOT
experience
the
attribute
% of
Purchase*
among the
Leads who
DID
Experience
the attribute
Statistical
Correlation
Factor of
Response
attribute
with
Vehicle
Purchase
#1
Make Direct Phone Contact with Customer
(after sending Email w/availability & prices) 17% 27% 11
#2 Send Price Quotes by Email to Customer 20% 27% 9
#3
Contact Customer more than once by
Email and Telephone (within First 24 Hours) 21% 25% 5
#4
Make sure Customers are either Completely or
Very Satisfied with the Lead Response 21% 24% 3
Results Proven
Best Practices

Telephone Process
• 85% of Web visitors who contact the dealership
before coming into the showroom, use the phone
• Direct Phone contact (after responding to an Internet
lead by email), has the greatest impact on increasing
sales closing ratios
Phone Follow-Up Sales Strategy (FUSS):
• Focus on having a set of objectives in front of us,
each time we make an email follow-up call
• Word Track Forms (scripts) are used for training and
collecting customer information during each call that is
made immediately after sending personalized email
response

5 Lead Management Activities that Drive
Lead-to-Closes at 4 times higher rate
1. Direct customer phone contact made by dealer
within first 8 business hours
2. Consumer received price quote(s) within first 8
business hours
3. Dealer confirmed availability of multiple vehicles
within first 24 hours
4. Dealers showed genuine interest
5. Customer contacted more than once within first 24
hours
Source: Morpace 24 hour survey and RDR sales Data(new study reconfirms close rate impact factors)

Toyota Dealers
Lead Management Process:
Automated Reply w/Info Validation & Map
First Email w/Price Quotes on 4 Vehicles
Phone follow-up to verify receipt of email
Email Confirmation when Voicemail is left
Get second email/social link during phone call
Outbound Follow-up Calls by Manager/3rd Party
Web Sales Calls routed to specific people
Appointment Reception Process

Summary and Dialogue
Ralph Paglia
Director - Digital Marketing Solutions
Dealer Services
Thank you very much and I know you
will have a great sales year in 2010…
•Questions and Answers
Cell: 505.301.6369 ralph_paglia@adp.com www.ADMPC.com

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