Ralph Paglia Interview by Dealix Part 2

Effective Online Automotive Sales: Ralph Paglia of Courtesy Chevrolet Interview Part 2

January 2007 Effective Online Auotmotive Sales VOLUME 6 ISSUE 1

HOME Ralph Paglia of Courtesy Chevrolet Interview Part 2
On Ad Budgets, Common Internet Sales Mistakes & More
CONTENTS
Interview with We’re bridging 2006 and 2007 by
Automotive Sales continuing our chat with Ralph Paglia, CRM/
Expert Paul Miller e-Business Director at Phoenix’s Courtesy
Chevrolet. Courtesy is consistently one of
Ralph Paglia of
the top Chevrolet dealers in the country,
Courtesy Chevrolet
and Ralph’s immense success has made
Interview Part 2
him a nationally known expert in online
The Future of Dealer automotive sales. In this second
Websites installment, Ralph talks about advertising
Ask Gilbert: Should I budgets, common Internet sales mistakes,
Invest in a Spanish “slurping,” and the dealership of the future.
Language Web Site?
Start 2007 Sales in
Dealix Dealer Newsletter (DDN): Ralph,
High Gear!
I can imagine that smaller dealerships would do just about anything to
have the advertising budget you have at Courtesy. What advice would offer
New Developments to help them make the most of their more limited means?
for Third-party Sites
The Top Ten for Q4 Ralph Paglia (RP): The most effective marketing strategies will usually
2006 scale up or down as budgets grow or shrink, and that’s true of our
Internet Training and
approach at Courtesy Chevrolet. The first thing we do is to buy every
Industry Reminders available new car Internet lead that we can get from reputable lead
providers such as Dealix. There’s simply no better value than being able to
Dealix Dealer engage with a “hand-raiser” for around $20. The next thing is to buy used
Newsletter Best of
car leads based on our inventory. The principle here is exactly the same.
2006
View a Movie to See After taking care of new car and used car leads, I would use any remaining
How Dealix Can Help Internet money to advertise the dealership’s website. We place a lot of
You Sell More Cars graphical ads on major automotive websites and get a lot of exposure and
a lot of traffic. But search engine marketing gives dealers a lot of flexibility
SUBSCRIBE in exactly how they advertise and how much they spend. The critical thing
is to link your advertising directly into your inventory.

DDN: In a recent story about you in Ward’s, you mentioned a growing
practice you called “slurping.” It seems that ISMs sometimes follow up with
Internet customers to see why they didn’t show up for an appointment, and
the customer will say, “I did, and I bought a car.” It turns out that floor
salespeople are stealing these prospects and making the sale. What do you
do to prevent this?

RP: This has always been a problem, and it’s more of a political and

http://news.dealix.com/e_article000726616.cfm?x=b11,0,w (1 of 3) [6/19/2007 6:49:20 PM]


Subscribe to the Dealix organizational issue than a technical one. We address it in a number of
Dealer Newsletter. ways. Our Internet sales specialists are trained to insist that the customer
Enter your email call the ISS’s cell phone when they’re a block or two away from the
address in the box dealership. We also have two full-time CRM administrators who work at the
below and we'll add
you to the list:
showroom reception desk. They’re bonused based on how many customers
they greet and introduce to the appropriate sales rep, so they have a
strong incentive to prevent slurping.

What’s most effective is having our sales process tied closely to our CRM
Add Remove
system, which is set up to prevent salespeople from creating an entry that
Submit matches the name, telephone number, address, or email address for an
existing entry. Our salespeople can’t work a deal without a customer
number, and they can’t get a customer number for an Internet lead without
exposing themselves as a thief.

Ultimately, this problem won’t go away until we develop the discipline to
terminate employees who stoop to this. A lot of dealerships wind up giving
a half deal to someone who gets caught skating, just to keep the peace.
This is the worst possible response, because it rewards and encourages the
practice. I find it interesting that, with 30 people handling Internet sales,
we almost never have a problem with the Internet salespeople skating each
other. They are remarkably good at splitting deals, getting the customer to
the right person, and even handling minor customer needs for their
teammates without asking for half a deal.

DDN: What’s the most common mistake Internet sales professionals make,
in your opinion?

RP: Withholding information that the customer explicitly asks for or has
been promised in exchange for submitting a lead. Sometimes it’s laziness,
but sometimes sales reps actually believe that the customer is more likely
to speak with them if they refuse to email specific answers.

It never fails to amaze and delight me when I mystery-shop our
competitors and, in response to a specific, direct question, am told, “I’ll go
over that with you on the phone.” Most customers will not let you get very
far with them if you play games and withhold information about pricing or
anything else. If you provide all the information the customer requests, and
more, they’ll see that you are taking their inquiry very seriously and that
you genuinely want to give them great service.

The customer’s yearning for attention and great service has not changed. If
you use email and phone calls to meet their needs and expectations, they
will come to the dealership to meet you in person. If you’re fundamentally
committed to this, even your missteps can turn out well. We resolve over
70% of our lead-handling complaints with a sale. Every customer gets an
email with my name, direct phone number, and email address, asking if
they are completely satisfied with how Courtesy Chevrolet’s ISS handled
their inquiry.

DDN: What about GMs? What should they avoid doing that could
undermine the success of their Internet sales efforts?



RP: Lack of involvement or genuine commitment on the part of a GM can
really hurt. GMs need to understand the Internet sales process as well as
they understand the dealership’s other processes. They also need to hold
people accountable for their performance. That means they have to know
how to pull reports from their CRM tools and measure the activities of their
staff, so they can kick butt when Internet sales reps do what all salespeople
tend to do - let their process execution deteriorate.

The only good alternative is to have someone like me operate at a
director’s level and do all this for them. Luckily, Courtesy Chevrolet doesn’t
have a general manager, so I get to keep my job!

DDN: Ten years from now, what are things going to be like for a typical
dealership?

RP: Sales originating from various types of digital inquiries will continue to
grow and represent a larger and larger portion of dealerships’ total sales.
Newspapers became worthless as a retail automotive marketing tool two or
four years ago, and more dealers will discover this fact every year.

Overall, I believe the level of professionalism within the world of
automotive sales will increase and managers will become savvier about
everything that goes into the buyer’s decision-making process. If you want
to see what most dealers will be doing in five years, come to Courtesy
Chevrolet and visit our multiple Internet sales departments and our brand
new state-of-the-art business development center. We don’t understand
why it’s taking so long for other dealers to catch up, but when we see some
of our local competition asleep at the wheel, we are thankful for it.

[PRINTER FRIENDLY VERSION]

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Effective Online Automotive Sales


NEWS

Interview with Automotive Sales Expert Paul Miller
On Ad Spends, Rural Markets, and Domestic Brands

Paul Miller began his career in the
automotive industry cleaning cars at
an Illinois dealership at age 16.
Today, as a consultant, he leverages
his 15 years of experience as a
salesperson, Internet manager, BDC
manager, finance manager, and sales
manager to help dealerships around
the country. We spoke with him
recently about key topics, including:
selling domestic brands; working in
rural markets; and building trust and
cooperation between the floor and the
Internet department.

[FULL STORY]

Ralph Paglia of Courtesy Chevrolet Interview Part 2
On Ad Budgets, Common Internet Sales Mistakes & More
INSIDE
Interview with This month, we continued our chat
Automotive Sales with Ralph Paglia, CRM/e-business
Expert Paul Miller director at Phoenix’s Courtesy
Chevrolet. Courtesy is consistently
Ralph Paglia of
one of the top Chevrolet dealers in
Courtesy Chevrolet
the country, and Ralph’s immense
Interview Part 2
success has made him a nationally
The Future of Dealer known expert in online automotive
Websites sales. In this second installment,
Ask Gilbert: Should I Ralph talks about advertising
Invest in a Spanish budgets, common Internet sales
Language Web Site? mistakes, “slurping,” and the
Start 2007 Sales in
dealership of the future.
High Gear!
[FULL STORY]

http://news.dealix.com/index000158788.cfm?x=b11,0,w (1 of 4) [6/19/2007 6:49:30 PM]


New Developments The Future of Dealer Websites
Key Topics from the J.D. Power and Associates Automotive
The Top Ten for Q4 Roundtable
2006
Internet Training and At the J.D. Power and Associates Automotive Internet Roundtable held in
Industry Reminders Las Vegas last November, a panel including The Cobalt Group’s vice
Dealix Dealer president of applications and services Kevin Root; Barry Brodsky of Dealer
Newsletter Best of Web Tools; and Jason Ezell of Dealerskins discussed the Future of
2006 Dealership Websites. This panel of online automotive veterans gave a
glimpse into the trends that are likely to grow significantly in the next few
View a Movie to See
years.
How Dealix Can Help
You Sell More Cars [FULL STORY]

SUBSCRIBE
Subscribe to the Dealix Ask Gilbert: Should I Invest in a Spanish Language Web
Dealer Newsletter. Site?
Enter your email
address in the box When to Meet the Demands of this Growing Market
below and we'll add by Gilbert Chavez
you to the list:
Gilbert Chavez is Internet director for the Phil Long dealerships of
Colorado, the largest privately-owned dealer group in that state. Gilbert
frequently shares his responses to questions he gets from other Internet
Add Remove dealers on how to run better Internet departments and general best
Submit practices with the Dealix Dealer Newsletter. Here's the latest.

[FULL STORY]

ARCHIVE
Effective Online
Start 2007 Sales in High Gear!
Automotive Sales View a Movie on How Dealix Can Help You Sell More
December 2006
Effective Online It's a new year and with that comes
Automotive Sales new sales opportunities. To start 2007
November 2006 off right, make sure you are
connecting with as many car buyers
Effective Online
on the Internet as possible.
Automotive Sales
Dealix brings you the highest quality
October 2006
leads from premium sites like Yahoo
Effective Online Autos, Edmunds, Kelly Blue Book, and
Automotive Sales more – directly to your in-box. Click
September 2006 here to see a short movie on Dealix's
award-winning New Car Leads
[MORE] Program, and learn more about the
provider that dealers rated Highest in
Visit us at: Overall Dealer Satisfaction in the
2006 J.D. Power and Associates
www.dealix.com Dealer Satisfaction with Online Buying
to see how dealers Services StudySM. View the movie.
rank the new car
lead providers



and to get more
success strategies New Developments for Third-party Sites
from experts in Ward's Dealer Business Editor on the Latest Trends
online auto sales. by Cliff Banks

Someone mentioned to me that very little new information came out of
a panel discussion I recently moderated for J.D. Power and Associates
held in Las Vegas. After listening to the tape of the session, which
focused on the next big thing from third-party websites, I beg to differ.
According to the panel, higher Internet lead costs for dealers and a
system allowing customers to rate dealers are just a couple of new
developments dealers may see by 2008.

This article was originally published in the Dec. 20, 2006 issue of
Ward's Dealer Business.

[FULL STORY]

The Top Ten for Q4 2006
Most Requested and Highest Close Rate Vehicles
by Carl Montgomery

To kick off 2007, we’re looking back at the
fourth quarter of 2006 to see which cars
generated the most leads and which had
the highest close rates. BMW and Ford
demonstrate that it's not just about Toyota
and Honda!

[FULL STORY]

Internet Training and Industry Reminders
Upcoming Events

Cobalt's Breakfast of Champions and the 2007 NADA Expo: Upcoming
industry events you won't want to miss.

Click Full Story for details.

[FULL STORY]



Dealix Dealer Newsletter Best of 2006
Most Popular Articles of the Past Year

In 2006, thanks to many great contributors and feedback from our
dealers, we covered the hottest topics in online automotive to help dealers
sell more vehicles more efficiently. Here is a list of our most popular
articles of 2006 - worthy of a review to help you start 2007 strong.

[FULL STORY]

reserved.


Effective Online Automotive Sales: Interview with Automotive Sales Expert Paul Miller


HOME Interview with Automotive Sales Expert Paul Miller
On Ad Spends, Rural Markets, and Domestic Brands
CONTENTS
Interview with Paul Miller began his career in the
Automotive Sales automotive industry cleaning cars at an
Expert Paul Miller Illinois dealership at age 16. Today,
practically everyone working in online
Ralph Paglia of automotive knows his name and track record
Courtesy Chevrolet of success. As a consultant, he leverages his
Interview Part 2 15 years of experience as a salesperson,
The Future of Dealer Internet manager, BDC manager, finance
Websites manager, and sales manager to help
dealerships around the country. We spoke
Ask Gilbert: Should I
with him recently about key topics,
Invest in a Spanish
including: combating the struggles of
Language Web Site?
domestic brands today; how rural dealers
Start 2007 Sales in can avoid common selling mistakes; and the
High Gear! importance of building trust and cooperation
New Developments between the floor and the Internet department.
The Top Ten for Q4
Dealix Dealer Newsletter (DDN): Paul, thanks for taking the time to talk
2006
with us. Let's start with your background. How did you get started in
Internet Training and automotive, and how did you wind up where you are?
Industry Reminders
Paul Miller (PM): I started cleaning cars in an Illinois dealership at age 16.
Dealix Dealer
Newsletter Best of
That was back in 1991. At 17, I moved to the body shop, where I prepped
2006
vehicles for the painters. At 18, I started selling cars. I tried college, but I
quickly that realized that the car business was my true passion. All in all, I
View a Movie to See spent 15 years in retail as a salesperson, Internet manager, BDC manager,
How Dealix Can Help finance manager, and sales manager. I have been involved in every aspect of
You Sell More Cars dealership operations, from ordering inventory to advertising.
SUBSCRIBE In 1997, I started one of the country's first dealer websites and BDC
departments. That was for Capital Ford in Raleigh, NC. When I left Capital,
they were the #1 online Ford dealerships in the country. Today I have my
own software and consulting company, DMi (Dudley-Miller, Inc.). My business
partner and I, along with our staff, handle many levels of consulting and
software needs for dealers nationwide.

DDN: There's probably no such thing as a "typical" consulting project. But can
you paint us a picture of what you do and how you work?

PM: The foundation for DMi was laid while I was still at Capital. I got started
doing websites and online applications for businesses owned by friends and



Subscribe to the Dealix family, and later on for non-competing dealerships. By the time I went out on
Dealer Newsletter. my own, the workload was overwhelming, and it continued to grow. My
Enter your email business partner and I managed it by expanding our staff, which is now up to
address in the box six, and teaming with an advertising agency in Greenville, SC.
below and we'll add
you to the list:
As we've grown, one thing we've worked hard to maintain is an individualized
approach that develops the right solution for every client. I handle virtually all
initial visits myself. The principal value that I personally am able to offer is the
ability to dissect everything about the way a dealership does business and
Add Remove propose a process that will work for that particular store - as opposed to a
Submit cookie-cutter process that forces the store to make changes that may not
make sense for it.

For every request, I do a site assessment and investigate inbound emails,
phone calls, and outbound marketing efforts. I interview all personnel and
also evaluate all systems, lead providers, and advertising efforts. Afterwards,
I prepare a report for the dealer. I present my findings in person and offer a
proposal that will make it possible for the dealership to meet identified goals.
We always develop steps to completion and make sure that each step is
complete before proceeding to the next. This is a way to prevent the dealer
from taking a shotgun approach that produces immediate results but
ultimately ends in failure.

DDN: What advice do you have for dealerships trying to strike the right
balance between traditional advertising and online marketing?

PM: Our main goal is to get the most buyers for the least amount per vehicle.
This will vary from market to market and season to season. The key is to have
a plan in place and do real forecasting instead of panicking on the fifteenth of
the month when you see that your sales are down.

We work with our ad agency partner to create a balanced campaign that takes
the current market into account. For example, the summer is the time when
TV advertising delivers the least value. We have our clients back off of TV
advertising and put their money into radio and e-marketing. We may run a
banner campaign in outdoor events venues and publish a series of summer
email newsletters.

All of this varies according to the dealership, the market, and the season. But
one thing we emphasize strongly in every case is the need for synergy
between traditional and interactive media. We want the customer to see the
same message and brand online and offline, with no exceptions. Another
special effort we make is to keep dealers from spending to force a market that
is simply not there. It's very difficult and very expensive to create buyers. But
it's easy and economical to purchase all the available buyers in the market
through companies like Dealix.

DDN: What are some of the biggest mistakes that you commonly see GMs
making?

PM: One is mistaking an Internet geek for an Internet manager. Internet
managers and BDC managers are among the most important people in your
dealership. Their true purpose in the organization has almost nothing to do
with technical expertise and almost everything to do with an understanding of



the car business - in particular, how to apply the technology at their disposal
to increase business and retain existing customers.

The same attitude that leads GMs to favor technical over sales knowledge
when staffing these positions also leads them to keep the Internet department
or BDC out of the loop when it comes to the dealership's overall marketing
efforts. This is a huge mistake. Many dealers don't tell the BDC about a TV,
radio, or print campaign until the day it hits - or, even worse, until the BDC
asks. During my site assessments, it’s not uncommon for me to hear a BDC
rep ask a caller, "Are you sure that's our ad?" This sort of thing should never
happen. You wouldn't ask your quarterback to go into a game without
knowing the game plan, and the same goes for your BDC.

DDN: When you go into a dealership, what's the hardest problem to correct?
What's the one thing you're always hoping not to see, not to have to deal
with?

PM: Finding that someone is simply the wrong person for the job is probably
the hardest thing I have to deal with. For one thing, it's not fun to be the bad
guy, the guy who says, "Hey, this isn't working out." But there's also the
question of how the wrong person got into this position in the first place. A lot
of dealerships move under-performing employees to the BDC rather than
letting them go. The attitude behind this is really difficult to correct. Why
would a dealer spend tens of thousands of dollars a month on advertising to
generate calls or email only to route those leads to a person who lacks the
ability to handle them? Most of my clients prove adaptable enough to change
their thinking and staffing practices, but, when they resist, it makes my job a
lot tougher.

DDN: What's tends to be the biggest mental block for dealerships? Is there a
problem that's actually fairly easy to solve, logistically, but which dealerships
just hate facing?

PM: The biggest, definitely, is a lack of communication and trust between
departments. It shouldn't be that hard to see that a true BDC is a support
center for the sales department and not an enemy. Sales managers in some
stores actually show animosity towards the Internet department when it has a
better month than the floor team.

A true BDC does not sell cars; it sells appointments for the floor. A true
Internet department does its job by putting the best people in the right place
to handle the customers that come its way. Logistically, it's fairly easy to give
a BDC or Internet department everything it needs to succeed, but dealers can
undermine their efforts by allowing the animosity to continue.

One of the first things we do after a dealer agrees to our proposal is to have a
town hall meeting with all managers, and then another with all salespeople.
We want them to know from day one why we're here, what we're doing, and
how they and the business will benefit.

DDN: The conventional wisdom is that domestic dealers have a tougher time
with Internet marketing than import dealers. How do you view this issue?

PM: My belief is that domestics should actually perform better than the



imports in this regard, given that they have so much more freedom from their
manufacturers. Many import dealers are hobbled by their forced reliance on
CRM systems, websites, and other technologies that, in my opinion, are
inferior to what can be obtained on the free market.

Our philosophy is the same, whether a client is a domestic or import dealer.
Use the best tools that your situation allows, and spend your advertising
dollars in the most efficient way possible. In many cases, this involves
identifying and targeting the most realistic customers for your particular store
at a particular moment in time. A Toyota dealer shouldn't waste time trying to
capture F150 buyers if he has four Tundras on the lot. Go after what will
produce the most sales for you rather than going head to head with your
competition. Be realistic, set goals, and achieve them.

DDN: In the world of Internet sales and marketing, what are some key issues
for rural dealerships?

PM: A lot of rural dealers make the same mistake over and over. They think
every Internet inquiry is a nothing deal that they will lose to the big city boys
because they lack selection or their manager won't let them sell the vehicle at
a low-enough price. Rural dealers need to be proactive in their community
and present their customers with compelling reasons for keeping their
business local. As a rural dealer, you have to own your market and not worry
about the other markets. Selling outside your market is a nice achievement,
but if you make it a goal, it will turn into a distraction.

An interesting problem crops up for rural dealerships that are located in
somewhat more dense areas. They tend to get more Internet leads, and their
response to this volume is to rely too heavily on automation. They have a
great personal touch with walk-ups and phone-ups, but with Internet leads
they forget who they are and what has made people want to buy from them in
the past.

They can also forget the sales skills that they use all the time when working
on the lot. Finding out what the customer really wants, for example. Someone
can email them about a Ford Explorer, and they go into order-taking mode,
not bothering to discover that the Explorer is number 25 on a list of 25 cars
that the customer wants. Number 1 might be a Lincoln Navigator, and maybe
that's out of the customer's price range. But if you take the time to learn this,
you may be able to sell an Expedition, while your chances of selling that
Explorer - the car the customer inquired about - are actually zero.

The lesson here, of course, is a good one for all dealerships, and not just rural
or semi-rural stores. Via email, it's easy for the most experienced sales
professional to occasionally lose sight of buyer psychology and to take an
inquiry too straightforwardly. This is one reason that it's important to pick up
the phone and make a real connection when email doesn't seem to be going
anywhere.




reserved.


Effective Online Automotive Sales: The Future of Dealer Websites


HOME The Future of Dealer Websites
Key Topics from the J.D. Power and Associates Automotive
CONTENTS
Roundtable
Interview with
Automotive Sales At the J.D. Power and Associates Automotive Internet Roundtable held last
Expert Paul Miller November, a panel including The Cobalt Group’s vice president of
applications and services, Kevin Root; Barry Brodsky of Dealer Web Tools;
Ralph Paglia of
and Jason Ezell of Dealerskins discussed the Future of Dealership
Courtesy Chevrolet
Interview Part 2
Websites.” This panel of online automotive veterans gave a glimpse into the
trends that are likely to grow significantly in the next few years. Here are
The Future of Dealer the hot topics:
Websites
Invest in a Spanish Reputation Management
Language Web Site?
Start 2007 Sales in At its broadest, “reputation management” refers to everything a business
High Gear! can do to control the reputation it has among consumers. This doesn’t
sound like a very high-tech concept, but today the Internet has a lot to do
New Developments
with the making - and breaking - of reputations. Websites such as
judysbook.com and angieslist.com give consumers the collective power to
The Top Ten for Q4 recommend particular services or stores. At the same time, individual
2006 bloggers are wielding more power as their readership grows. For
Internet Training and dealerships, the website - which is already a key place where identities and
Industry Reminders reputations are developed - will increasingly be thought of as a tool for
reputation management. And this thinking will guide a lot of choices made
Dealix Dealer
by dealers as they evaluate new technologies and web practices.
Newsletter Best of
2006
View a Movie to See “Relevance”
How Dealix Can Help
You Sell More Cars This term was used a lot, particularly by Kevin Root, who expects a surge
in dealers’ ability to present customized, highly relevant content to website
SUBSCRIBE
visitors, based on detailed knowledge of the search history that brought
them to the site. One intriguing result: the phase out of the traditional
homepage. In the near future, the landing page shown to a given visitor
will be customized for that particular person, with content and features
based on how they searched for that particular site.

Video

Still having a hard time keeping your inventory photographs up to date? It
is predicted that there will be an even stronger move towards video. This



Subscribe to the Dealix may take a number of forms. Video can be an effective way to show a
Dealer Newsletter. website visitor what it feels like to drive a given vehicle. And, especially for
Enter your email used cars, it offers the possibility of “virtual walk-arounds.” A lead can
address in the box schedule a time with a sales rep who will walk around the car with a video
below and we'll add
you to the list:
camera. Thoroughly documenting the car, including any nicks and
scratches, will be an excellent way to build trust.

Content Syndication & “Push”
Add Remove
Submit Today, the dominant model is to build a website and drive people to it.
Tomorrow, this model will be effectively complemented by “push”
technology, including RSS feeds, which will allow you to syndicate portions
of your website for consumption by subscribing users. A car buyer who
visits your website but doesn’t see exactly what he wants in inventory
might elect to have you push inventory updates to him. This buyer may be
using a program that consolidates all his auto-related feeds on a single,
customizable web page - something he constructs for himself as part of his
car-shopping efforts.

Collective Intelligence

Ever look at a book on Amazon.com and notice the recommendations
you’re shown, based on the books other buyers of the original book have
bought? If you’ve ever found these recommendations helpful, then you -
and Amazon - have benefited from “collective intelligence”: knowledge
constructed based on the behavior of a large group. Collective intelligence
will be one of the ways dealer websites enhance the relevance of the
content they present to users. Imagine a car buyer searching your
inventory and finding the car they want, along with vehicles frequently
purchased by others who searched for this car.

Shared OEM Assets

OEMs are pumping a tremendous amount of money into building Internet
assets that help them brand themselves, and their vehicles. The pressure
to share these assets with dealers - whose budgets are much more limited
- is growing. Expect to see movement on this front, in part thanks to efforts
by service providers that work with dealers and OEMs.

Partial Online Transactions

No one on the panel felt it would soon be possible to complete a deal
entirely online. But possibilities for carrying out specific portions of the
transaction online are blossoming. Expect to see software that helps
dealers and buyers negotiate over price, for example.

More Vehicle Info Online



If a buyer visits your site, and fails to find the vehicle information they
need, so then goes elsewhere in search of it, the chances you’ll see them
again fall precipitously. As a result, there will be a strong focus for dealers
to begin providing more vehicle information to capture (and keep) a larger
share of these visitors.

Owner Marketing

In the November ’06 issue of the Dealix Dealer Newsletter, we covered the
topic of “owner marketing.” The term refers to the practice of marketing to
your customer base - usually via email. In the near term, the ability to do
this in a more targeted and customized way will grow, and dealers will
increasingly think of owner management as a method for managing their
overall reputation among car buyers. Services like The Cobalt Group’s
OnStation focus on helping dealers maintain and expand upon relationships
with their existing customer base via email “owner” marketing.

Increased Focus on Dealer Branding/Identity

Dealers spent much of the first decade of online automotive retailing simply
getting online and refining their sites and processes. Now the task is to use
websites to address the question, “Why me?” Why should car buyers shop
with you rather than the guy down the street? You can answer that
question with text and photos, of course, and even with the design of the
site. But, increasingly, useful technologies will play a role. Consider video,
discussed above, and the opportunity it provides for dealers to show used
car blemishes and thus build trust. At the end of the day, it’s still about the
relationship that the dealer can build with their customers based on the
dealer’s ability to know their interests and show them relevant content.


reserved.


Effective Online Automotive Sales: Ask Gilbert: Should I Invest in a Spanish Language Web Site?


HOME Ask Gilbert: Should I Invest in a Spanish Language Web Site?
When to Meet the Demands of this Growing Market
CONTENTS
Interview with Gilbert Chavez is Internet director for the Phil Long dealerships of Colorado,
Automotive Sales the largest privately-owned dealer group in that state. Gilbert frequently
Expert Paul Miller shares his responses to questions he gets from other Internet dealers on how
to run better Internet departments and general best practices with the Dealix
Ralph Paglia of Dealer Newsletter. Here's the latest.
Courtesy Chevrolet
Interview Part 2
The Future of Dealer Dear Gilbert,
Websites
We’re thinking about getting a version of our dealership’s website in Spanish
because our dealership is located in an area where there is a large Spanish-
Invest in a Spanish
speaking community. Our management team has been discussing the idea of
Language Web Site?
investing in a Spanish website for a while because we have been reading and
Start 2007 Sales in seeing reports on TV about this growing market. We do have some sales
High Gear! people who speak Spanish, but the fact is that very few of the customers we
New Developments deal with are unable to speak English – they can do a deal in English, no
for Third-party Sites problem. What do you think? Should we invest in having our website in
Spanish as well as in English?
The Top Ten for Q4
2006
Thanks,
Industry Reminders Curious George
Dealix Dealer
Newsletter Best of
2006
Dear Curious,

View a Movie to See I get this question all the time. (Must be because of my Irish sounding last
How Dealix Can Help name.) This is obviously a loaded issue, so, let’s try to put politics aside, and
You Sell More Cars focus on the fact that you’re just trying to “meet your market” on their terms
and sell cars.
SUBSCRIBE
While I don’t have exhaustive demographic statistics at my disposal, I can tell
you what I’ve learned from my own experience, and that is - the online
Spanish speaking market is an emerging market – it’s not totally there yet,
but it promises to be big. You need to assess your particular market today to
decide just how much - and how soon - you want to invest in this. But first,
you need to ask yourself – am I doing everything I can with Internet leads
and search engine marketing to fully tap into my existing market?

Here’s an example of what I’ve experienced: Colorado, where our dealerships
are located, has a significant Spanish-speaking population. Our dealer group
has two Spanish language conversion sites, and I have seen little to no traffic



Subscribe to the Dealix on these sites. Additionally, our group has a Spanish language converter on
Dealer Newsletter. our online used vehicles displays that gets essentially no play at all.
Enter your email Furthermore, I recently worked in an area of New Mexico where 44.3% of the
address in the box population speaks Spanish, and experienced the same result.
below and we'll add
you to the list:
However, I have heard from other dealers, particularly in areas like Houston
and San Antonio, Texas, and they’ve gotten good traction by having web sites
in Spanish.

Add Remove
Submit Know Your Particular Market – Notable Stats

Here are some statistics I’ve found on the Web from e-Marketer.com and
Internet World Stats.com, that may help you make the decision on when to
invest in a Spanish-language site, if at all.

• In most cases, second-generation Americans of Spanish-speaking
parents are online; however, many are bilingual and surf English-
language search engines and web sites.
• The Spanish-speaking population is the largest and fastest-
growing ethnic segment in the United States, and is expected to grow
to 17% of the domestic population by 2010.
• There were 15.7 million Spanish-speaking Internet users in the US
in 2005. And, this total will rise to 16.7 million in 2006, and is
expected to reach nearly 21 million by 2010.
• The online Spanish-speaking population is young. In 2005, there
were 9.1 million estimated Spanish-speaking Internet users under the
age of 35, and this estimate is expected to rise to 12.1 million in 2010.

With a segment of the population that is growing this big and this fast, dealers
should definitely continue to keep their ears close to the ground in order to
make a sound assessment of how to best meet these consumers’ online car
buying needs. For instance, in order to successfully target this demographic
online - once the market is really ready - we must appreciate its intricacies. It
is going to take more than traditional web sites simply translated into
Spanish. The next generation web sites in Spanish will have to demonstrate
the specific nuances of the language and culture as well as the needs of this
growing marketing of car buyers.

The key here is to really know your market. But, above all, keep this in mind
– you really only want to branch out to “emerging markets’ after you’ve full
tapped your existing market. Is your dealership already doing all it can on the
Internet (leads, search, etc.) to reach your current market? Master that first,
then look to expansion.

George, thanks for the great question.

- Gilbert




reserved.


Effective Online Automotive Sales: Start 2007 Sales in High Gear!


HOME Start 2007 Sales in High Gear!
View a Movie on How Dealix Can Help You Sell More
CONTENTS
Interview with It's a new year and with that comes new
Automotive Sales sales opportunities. To start 2007 off right,
Expert Paul Miller make sure you are connecting with as many
car buyers on the Internet as possible.
Ralph Paglia of Dealix brings you the highest quality leads
Courtesy Chevrolet from premium sites like Yahoo Autos,
Interview Part 2 Edmunds, Kelly Blue Book, and more –
The Future of Dealer directly to your in-box. Click here to see a
Websites short movie on Dealix's award-winning New
Ask Gilbert: Should I Car Leads Program, and learn more about
Invest in a Spanish the provider that dealers rated Highest in
Language Web Site? Overall Dealer Satisfaction in the 2006 J.D.
Power and Associates Dealer Satisfaction
Start 2007 Sales in with Online Buying Services StudySM. View
High Gear!
the movie.
New Developments
for Third-party Sites [PRINTER FRIENDLY VERSION]
The Top Ten for Q4
2006
Industry Reminders
Dealix Dealer
Newsletter Best of
2006
View a Movie to See
How Dealix Can Help
You Sell More Cars

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Effective Online Automotive Sales: Start 2007 Sales in High Gear!

Subscribe to the Dealix
Dealer Newsletter.
Enter your email
address in the box
below and we'll add
you to the list:

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Submit

reserved.


Effective Online Automotive Sales: New Developments for Third-party Sites


HOME New Developments for Third-party Sites
Ward's Dealer Business Editor on the Latest Trends
CONTENTS
Interview with I guess you can’t please everybody. Someone mentioned to me that very little
Automotive Sales new information came out of a panel discussion I recently moderated for J.D.
Expert Paul Miller Power and Associates held in Las Vegas.
Ralph Paglia of
Courtesy Chevrolet After listening to the tape of the session, which focused on the next big thing
Interview Part 2 from third-party websites, I beg to differ. According to the panel, higher
Internet lead costs for dealers and a system allowing customers to rate
The Future of Dealer
dealers are just a couple of new developments dealers may see by 2008.
Websites
Sounds newsworthy to me, especially if you’re a dealer buying leads from
Ask Gilbert: Should I third-party firms.
Invest in a Spanish
Language Web Site?
Sitting on the panel were John Holt president and CEO of The Cobalt Group;
Start 2007 Sales in Stephen Henson, executive vice president of Kelley Blue Book; Chip Perry,
High Gear! president and CEO of AutoTrader.com; Mitch Golub, president Cars.com; and
New Developments
Jim Riesenbach president and CEO of Autobytel, Inc.
One thing is clear. All of the panelists agree the process with which their sites
The Top Ten for Q4
move online car shoppers to the dealers needs to evolve to the next level.
2006
And that means improving the quality of leads dealers receive.
Industry Reminders
Indeed, there has been a lot of industry discussion about improving lead
Dealix Dealer quality. Riesenbach, though, says talking about lead quality is a misnomer.
Newsletter Best of
2006 “The notion that a consumer not ready to buy to on that day (when they visit
View a Movie to See a site) is a low-quality lead strikes me as odd,” he says.
How Dealix Can Help
You Sell More Cars Rather than poor quality, it is an issue of readiness, Riesenbach thinks. “We
need to define readiness and recognize people are coming into the funnel long
SUBSCRIBE before they are ready to buy,” he says. “It is incumbent upon us to build
(business) models that help move the consumers logically through that
funnel.”

“We need to take every lead that comes in and do everything possible to pass
it on to a dealer so it has as much opportunity to close as possible,” says Holt.

He suggests scientifically scoring leads as one way to measure readiness. Holt
also believes third-party companies can do a better job of managing those
leads. “We can do that with service,” he says. “We can extend our hands to
the customer on behalf of the dealer.”


Effective Online Automotive Sales: New Developments for Third-party Sites

Dealer Newsletter. One way is to develop sites that allow shoppers to simultaneously search for
Enter your email both used and new vehicles, Perry argues. “There has been an artificial
address in the box separation between new and used shoppers,” he says. “But studies show 40%
below and we'll add of car buyers shop for both. There are fundamental gaps in the car buying
you to the list: process on many sites.”

Golub agrees saying third-party sites need to take a page from the used-car
side of the business that allows shoppers to search for specific vehicles. He
Add Remove envisions a process that allows buyers to match their online vehicle
Submit configurations with actual inventory on dealers’ lots.

Another development in the works that Golub expects will be in the market
late in 2008 is a ratings system of dealers. It likely will be a touchy issue for
dealers, and is one that has be done positively rather than negatively, he says.

Another area third-party sites will improve is in the use of content and
consumer-generated tools, Henson says. “We’ll see exponential growth in that
area,” he says. KBB.com is piloting video applications and will begin rolling
them out sometime next year.

Meanwhile, Cars.com is launching in February a series of vehicle databases
shoppers can access using their cell phones and Blackberries.

But all this development will take money and likely will result in higher prices
for those leads. Cars.com is doubling its product development for its site in
2007. The shopping experience has to change, Golub argues. “It’s a 12-year
old business model in which the price per lead has not changed in eight
years,” he says. But that may be a tough sell for skeptical dealers.

The return for dealers, though, may be much higher closing ratios for the
leads they purchase from third-party sites. If that happens, and that is a big
“if,” that will be real news.

cbanks@wardsauto.com

This article was originally published in the Dec. 20, 2006 issue of Ward's
Dealer Business.


reserved.


Effective Online Automotive Sales: The Top Ten for Q4 2006


HOME The Top Ten for Q4 2006
Most Requested and Highest Close Rate Vehicles
CONTENTS
Interview with To kick off 2007, we’re looking back at the fourth
Automotive Sales quarter of 2006 to see which vehicles generated
Expert Paul Miller the most leads and which vehicles had the
highest close rates.
Ralph Paglia of
Courtesy Chevrolet
Interview Part 2
Close Rates: Trucks and SUVs Come Out on
The Future of Dealer Top
Websites
Ask Gilbert: Should I Every vehicle in this list is an SUV or truck, with two exceptions - two very
Invest in a Spanish different exceptions. At number 4, there’s the Lexus GS, with a close rate score
Language Web Site? of 990. And at number 9 there’s the Honda Civic Si, with a close rate score of
Start 2007 Sales in
949. Yet, overall, in the 4th Quarter of 2006, online vehicle buyers clearly
High Gear!
showed that they wanted a vehicle that could "do stuff" - whether it was for work
or a busy and active lifstyle - to haul lots of things - or people.
New Developments
Close Rate Score by Make and Model
The Top Ten for Q4
Rank Make Model Close Rate Score
2006
1 BMW X3 1000
2 Chevrolet Silverado Classic 1500 4WD 990
Industry Reminders
3 Jeep Commander 990
Dealix Dealer
Newsletter Best of
4 Lexus GS 990
2006 5 Nissan Frontier 990
View a Movie to See
6 Acura MDX 970
How Dealix Can Help 7 Dodge Dakota 949
You Sell More Cars 8 Ford Freestyle 949
9 Honda Civic Si 949
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10 Toyota Tacoma 949
Dealer Newsletter.
Enter your email
address in the box Most-Requested Vehicles
below and we'll add
you to the list:
As usual, we’ve broken these rankings into four categories: cars, trucks, SUVs,
and minivans.

Among cars, the imports ruled the roost, with Ford the only domestic
Add Remove
manufacturer to make the cut - thanks to its eye-catching Mustang. For the most
Submit part, the cars generating the most leads are a fairly unassuming lot. The Mustang
is an exception, of course, as is the MINI Cooper. MINI mania is still alive and
well.



Most Requested Cars
Rank Make Model Strength Rating
1 Toyota Camry 1000
2 Honda Civic Sedan 679
3 Toyota Corolla 648
4 Honda Accord Sedan 560
5 BMW 3 Series (default) 522
6 Honda Civic Coupe 389
7 MINI Cooper (default) 372
8 Honda Accord Coupe (default) 367
9 Ford Mustang 361
10 Mazda MAZDA3 360

In the trucks category, the Big Three fared much better, with all making the list -
Chevrolet twice. Only Toyota had more ranked models (3). Nissan had two, but in
the number 9 and number 10 spots.

Most Requested Trucks
1 Ford F Series Pickup* 1000
2 Chevrolet Silverado* 831
3 Dodge Ram* 606
4 Toyota Tacoma 476
5 GMC Sierra* 333
6 Chevrolet Avalanche (default) 267
7 Toyota Tundra 235
8 Toyota Tacoma PreRunner 163
9 Nissan Frontier 157
10 Nissan Titan 136

On to the top ten SUVs. Here, Toyota models occupied the top two spots, with a
third - the FJ Cruiser - showing up at number 7. Honda placed two of its vehicles,
as did Jeep. And high gas prices didn’t force Hummer off the list: its H3 held firm
at number 5.

Most Requested SUVs
1 Toyota RAV4 1000
2 Toyota 4Runner (default) 869
3 Chevrolet Tahoe 631
4 Honda CR-V 617
5 Hummer H3 615
6 Honda Pilot 521
7 Toyota FJ Cruiser 516
8 Jeep Wrangler 463
9 BMW X5 453
10 Jeep Grand Cherokee 416



It was in the minivan category that the domestics really held their own. No Asian
manufacturer placed more than one model - five in all. Meanwhile, Chrysler/
Dodge vehicles took up three spots, with Ford and Saturn accounting for the
remaining two.

Most Requested Minivans
1 Honda Odyssey 1000
2 Toyota Sienna 738
3 Kia Sedona 421
4 Dodge Caravan 394
5 Chrysler Town & Country 345
6 Dodge Grand Caravan 240
7 Nissan Quest 193
8 Ford Freestar 110
9 Mazda MPV 86
10 Saturn Relay 73

About the Study
The Dealix Most Requested Vehicles IndexSM is a weighted index based on the
number of Internet sales leads per vehicle make and model that is generated
from the Dealix Lead Trading PlatformSM over a set time period. The most
requested vehicle per submitted leads is given a perfect score of 1000 and all
subsequent vehicles are weighted against the leading vehicle. Primary data is
derived from the Dealix Lead Trading PlatformSM. This study does not intend to
represent data for all vehicle sales leads.

The Dealix Most Frequently Closed IndexSM is a weighted index based on the
number of Internet sales leads for a specific vehicle make and model generated
from the Dealix Lead Trading PlatformSM that resulted in a sale over a set time
period. The most frequently closed vehicle per submitted leads is given a perfect
score of 1000 and all subsequent vehicles are weighted against the leading
vehicle. Primary data is derived from the Dealix Lead Trading PlatformSM. The
study does not intend to represent data for all vehicle sales leads.

This report is brought to you by Dealix Business IntelligenceSM. An asterisk*
indicates that the listed vehicle includes several models and/or trim lines that
share the same name.


Published by Dealix Corporation Click here to Tell a Friend about the Dealix Dealer
Copyright © 2007 Dealix Corporation. All rights reserved. Newsletter
The Dealix Dealer Newsletter is sent to Dealix members
and anyone who has expressed interest in our services.
To unsubscribe, enter your email address in the
subscription box appearing within the newsletter and
choose the Remove option. Or, just click one of the links
below.


Effective Online Automotive Sales: Internet Training and Industry Reminders


HOME Internet Training and Industry Reminders
Upcoming Events
CONTENTS
Interview with The Cobalt Group Presents the Breakfast of Champions Workshop Series
Automotive Sales
The Breakfast of Champions seminar for 2007 is a cost-effective way to help you with
Expert Paul Miller
your dealership’s advertising and marketing strategies. A Breakfast of Champions in
Ralph Paglia of coming soon to a city near you and it is definitely something you don’t want to miss!
Courtesy Chevrolet
Interview Part 2
The Future of Dealer January 16th Ft. Lauderdale, FL Embassy Suites Ft. Lauderdale
Websites
February 20th San Diego, CA San Diego Hotel & Marina
Ask Gilbert: Should I March 13th Westchester, NY Westchester Marriott
Invest in a Spanish
Language Web Site?
Click Here to register for any of these sessions. Or, call (800) 557 -7915.
Start 2007 Sales in
High Gear!
New Developments NADA 2007 – The Automotive Industry Event of the Year
The Top Ten for Q4 Need a break from the convention floor? The Cobalt Group and Dealix will be hosting a
2006 reception across the street from the event at the Renaissance Hotel. Complimentary
refreshments will be provided. We are looking forward to meeting with you and telling
you more about our new products like the Used Cars Advertising & LeadsSM program,
Industry Reminders
PowerSearch CompleteSM, and more. Our experts will be on hand to answer any
Dealix Dealer questions you may have about our suite of products & services and the online
Newsletter Best of automotive industry in general.
2006
View a Movie to See For more information the 2007 NADA Expo, please click here.
How Dealix Can Help
You Sell More Cars

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Dealer Newsletter. [PRINTER FRIENDLY VERSION]
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Effective Online Automotive Sales: Internet Training and Industry Reminders

Published by Dealix Corporation Click here to Tell a Friend about the Dealix Dealer
Copyright © 2007 Dealix Corporation. All rights reserved. Newsletter
The Dealix Dealer Newsletter is sent to Dealix members
and anyone who has expressed interest in our services. To
unsubscribe, enter your email address in the subscription
box appearing within the newsletter and choose the
Remove option. Or, just click one of the links below.


Effective Online Automotive Sales: Dealix Dealer Newsletter Best of 2006


HOME Dealix Dealer Newsletter Best of 2006
Most Popular Articles of the Past Year
CONTENTS
Interview with Here are the most popular Dealix Dealer Newsletter articles from 2006:
Automotive Sales
Expert Paul Miller Building Internet Department Profitability

Ralph Paglia of
Anderson Auto Group: High Sales in Rural Markets
Courtesy Chevrolet
Interview Part 2
10 Best Practices for Responding to Phone Leads
Websites How to Staff Your Internet Department
Invest in a Spanish Neil Automotive: a Big Commitment to the Internet Pays Off
Language Web Site?
Start 2007 Sales in Interview with Ralph Paglia of Courtesy Chevrolet - Part I
High Gear!
Internet Departments Still Not Getting It
New Developments
Three Simple Things Internet Managers Should Check Everyday
The Top Ten for Q4
2006
Internet Sales Training Manual
Industry Reminders Email or Phone? Don’t Let the Customer Decide
Dealix Dealer
Newsletter Best of How to Maintain Gross with Internet Customers
2006
View a Movie to See
How Dealix Can Help
You Sell More Cars

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Effective Online Automotive Sales: Dealix Dealer Newsletter Best of 2006

Dealer Newsletter.
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address in the box
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you to the list:

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reserved.


Effective Online Automotive Sales: View a Movie to See How Dealix Can Help You Sell More Cars


HOME View a Movie to See How Dealix Can Help You Sell More Cars
CONTENTS
Interview with
Automotive Sales
Expert Paul Miller
Ralph Paglia of
Courtesy Chevrolet
Interview Part 2
Websites
Invest in a Spanish
Language Web Site?
Start 2007 Sales in
High Gear!
New Developments
The Top Ten for Q4
2006
Industry Reminders [PRINTER FRIENDLY VERSION]
Dealix Dealer
Newsletter Best of
2006
View a Movie to See
How Dealix Can Help
You Sell More Cars

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Ralph Paglia Interview by Dealix Part 2

Ralph Paglia Interview by Dealix Part 2

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