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Welcomes you to Digital Dealer




                            UInUUUundertaU
Rob Lange

Rob Lange
National Sales Trainer Director, Kelley Blue Book

• Over 15 years retail automotive sales and sales management 
experience

• Joined Autobytel in January 1996 traveling nationwide to 
implement dealership internet departments

• Developed and presented the first Autobytel University Sales 
Training Program in January 1997

• Since has conducted over 200 2‐day Internet Sales Seminars as 
National Director of Dealer Training for Autobytel

• Joined Kelley Blue Book as National Sales Training Director in 
January 2008
Life Creates Car Shoppers 
The Internet Car Shopper




• Who they are, how they shop, why they buy


• Maximizing Contact, Managing the Phone 
Conversation, Overcoming Customer Concerns
The Targeted Customer

 : someone who is most likely to respond to your message




           83% of all vehicle buyers use internet in their
                        shopping research
Source: 2007 Dealer e-Besiness Performance Study
Stretch A Net Across The 
Customers Buying Path

  TV / Radio         Internet   Print
Life Creates Car Shoppers

                                Varying Stages of Buying Process
10% Information Gatherers                                              10% Ready to Move Now
  (early stages of shopping)                                           (Looking for right combination
                               As comfort level and sense of urgency      of acceptable terms)
                                increase they begin migration from               1. Car
                                         shopper to buyer
                                                                                  2. Features
                                                                                  3. Price

                                   80% Active Shoppers                            4. Person they like



                               Job is to influence these customers
                                       based on 3 factors



        Trust + Confidence + Value = Nothing left to object to!
Showroom Buying Process vs. Online 
Buying Process

Exposure Traditional            Exposure Online

1. “Meet & Greet”               1. Your Online Positioning
                                (3rd Party sites, your Web site)
2. Fact Finding/Discovery       2. Sorting of Inventory
                                (Type of car, model, features)
3. Inventory Walk               3. Choice, Prices
                                (Thumbnail photos)
4. Product Presentation         4. Vehicle Photos
                                (Sellers notes, pricing)
5. Demo
6. Trial Close
7. Write Up
8. Sale
Biggest Obstacles to Maximizing
Online Sales Results
       Problem                           Solution

    1. Lead Generation            1. Be where the “targeted”
                                         customers are

    2. Conversion Rates           2. Deliver what the customer
                                               wants




     Do you recognize the need to make
   adjustments in the way you currently do
                 business?
Who Are They?
Who are they - and why are they electing
to do business this way?

           Reason                              Benefit

  1. Time Constraints                   1. More time efficient

  2. Level playing field                2. Information raises comfort level

  3. Need or desire                     3. Solves financial or personal issue

  4. Reduce stress                      4. Less “humbling” than face to face

  5. Desire to win                      5. Potential to come away with an
                                        even greater than expected result



  If this is what they have identified as “hot buttons” it must be the
                “language” in which you speak with them!
Conclusion

     If car buyers have told us they want to:

• Save time
• Make an educated, comfortable decision
• Satisfy the problem
• The easiest possible way
• And leave the door open to an even greater than  
  expected result…


 You must tailor your online solution 
      to satisfy each concern
Why is this so Important to You?
                           1 Million Surveyed* 
             55% resulted in sale of new or used vehicle

                                  10%                   90%
                            Intended Dealer          Other Dealer



                                               23%         41%            36%
                                            New Vehicle    Used      New Vehicle
                                            Same Brand    Vehicle   Different Brand

                                      24% closed within 10 days
                                      68% closed within 90 days
*De-duped new vehicle leads
**2007 Cobalt eBusiness Performance Study
Where are They?
Amount of Time Spent / Planning to Spend
      Shopping Online and at a Dealership

    •Consumers plan to spend more time shopping than dealers think
    •Amount of time spent online is largest difference

                           How Much Time Do                                                                           Total Amount of Time                                                                   Total Amount of Time Spent
                           Consumers Spend/                                                                          Spent Shopping Online                                                                       Visiting Dealerships

                    Plan to Spend Shopping?                                                                                                                                                                          (before negotiations)



            Consumers: 16 hours                                                                             Consumers: 11 hours                                                                           Consumers:                                   5 hours


            Dealers:                           10 hours                                                     Dealers:                            4 hours                                                   Dealers:                           6 hours




Base: Consumers (n=326), Dealers (n=70)); Consumer Questions (Dealers Asked What They Think Consumers Do):

Q: Please select the statement below that best describes the total amount of time you have spent, or expect to spend shopping for your next vehicle overall.
Q: Please select the statement below that best describes the total amount of time you have spent or expect to spend shopping for your next vehicle online.
Q: Please select the statement below that best describes the total amount of time you have spent or expect to spend shopping for your vehicle at the dealership (all dealerships including competitive makes/models) before beginning to negotiate the deal on your vehicle.
Different types of Web sites are relied upon for
   different kinds of vehicle information

                            Type of Site Relied on For Vehicle Information - NVB
                                                Manufacturer Site                   Independent Site          Dealer Site


Options/Features Info                                                        73%                             17%     10%



           Dealer Referral                                       49%                                   51%



   Find Dealer Invoice                            23%                                    66%                         12%



Discount Information                             21%                                   66%                          14%


                                      0%         10%        20%        30%    40%    50%     60%   70%   80%       90%      100%




 2007 J.D. Power and Associates New Autoshopper.com Study - Based to AIUs
KBB, Edmunds & Consumer Reports are the top
 3 independent sites among new vehicle buyers
                                Top 10 Independent Sites Visited by NVBs
              kbb.com                                                             44%

        Edmunds.com                                                29%


Consumer Reports.org                                         23%


         Yahoo! Autos                               13%


      AutoTrader.com                             12%


          CarMax.com                             12%
                                                               The Bottom Line:
    NADA Guides.com                           10%            Kbb.com is the #1 Automotive
             Cars.com                       9%
                                                           Information Web Site for New Car
                                                                       Shoppers
   Car and Driver.com                    8%


     eBay Motors.com                   7%


 Source: 2007 J.D. Power New Autoshopper.com Study (NAS)
KBB, AutoTrader.com and Edmunds are the top
 3 independent sites among used vehicle buyers
                               Top 10 Independent Sites Visited by UVBs
              kbb.com                                                                              55%

      AutoTrader.com                                                             35%


       Edmunds.com                                                     24%


         CARFAX.com                                               22%


          eBay Motors                                             22%


          CarMax.com                                             21%


   NADA Guides.com                                          19%                 The Bottom Line:
                                                                             Kbb.com is the #1 Automotive
         Yahoo! Autos                                       19%
                                                                             Information Web Site for Used
             Cars.com                                      18%                       Car Shoppers

ConsumerReports.org                                  16%

Source: 2007 J.D. Power Used Autoshopper.com Study (UAS)
KBB.com Visitor Location

   •     Market research to dispel regional myth 8 -Apr
                                8 -M ar                                8 -M ay
  Regional Market               Visitors % Share   Visitors % Share   Visitors % Share
  LOS ANGELES                    596,708   4.10%   579,830    4.10%    581,713   4.20%
  NEW YORK                       454,314   3.20%   424,984    3.00%    423,696   3.00%
  SAN FRANCISCO OAK SAN JOSE     260,287   1.80%   252,569    1.80%    255,652   1.80%
  CHICAGO                        280,670   1.90%   270,637    1.90%    266,945   1.90%
  BOSTON  MANCHESTER             239,503   1.70%   233,169    1.70%    234,228   1.70%
  PHILADELPHIA                   239,855   1.70%   239,855    1.70%    230,555   1.70%
  DALLAS FT. WORTH               204,151   1.50%   204,151    1.50%    207,771   1.50%
  HOUSTON                        169,452   1.20%   169,452    1.20%    175,428   1.30%
  ORLANDO DAYTONA BCH MELBRN     128,184   0.90%   128,184    0.90%    128,444   0.90%
  MIAMI FT. LAUDERDALE           106,673   0.80%   106,673    0.80%    105,173   0.80%
  SEATTLE TACOMA                 187,398   1.30%   187,398    1.30%    183,319   1.30%
  MINNEAPOLIS ST PAUL            165,417   1.20%   165,417    1.20%    159,704   1.10%
  KANSAS CITY                     95,707   0.70%    95,707    0.70%     90,498   0.60%
  NASHVILLE                       95,306   0.70%    95,306    0.70%     92,879   0.70%
  MEMPHIS                         44,111   0.30%    44,111    0.30%     44,079   0.30%
  KNOXVILLE                       43,433   0.30%    43,433    0.30%     42,582   0.30%
Results show that more AIUs found the vehicle they
bought over the Internet than driving by dealer lots
                            Top Two Methods Used That Led to Used Vehicle Purchase¹

                     50%
                                                Drove by Dealer Lots                                       Internet Vehicle Locator/Online Classifieds


                                    39%
                     40%                                                                                                                           37%
                                                                     33%
                                                                                                     30%                  31%
                                                                                                                                 29%
                     30%                                                                                                                   27%
                                                                                                               24%
                                                                                  21%
                                                  19%
                     20%



                     10%



                       0%
                                          2003                            2004                             2005              2006              2007
2007 J.D. Power and Associates New Autoshopper.com Study
Base: Total AIUs
¹It is important to point out that the 37% statistic reported above is understated due to unaided recall
Timeframe To Buy

                             Planning to purchase / lease a new vehicle
                                                                         Yes, 73%               No, 27%




                                                  Shoppers Are Most Likely to Buy….



                                                   In the next week       12%


                                                                                              63%
                                                  In the next month                   24%



                                                     In the next 2-3
                                                                                        27%
                                                         months


                                                     In the next 4-6
                                                                                17%
                                                         months


                                                     Longer than 6
                                                                                  20%
                                                       Months



Source: Kelley Blue book Market Research (2007)
What Do They Want?
New Car Marketing - Photos

                                                       EFFECT ON LIKELIHOOD TO DO ACTIVITIES

                        100%
 74% of consumers
are more likely to      80%                        74%
visit a dealership if                                                                    66%
                                                                                                                               61%
they are able to                                                                                                                                                     53%
                        60%
view a picture of an
actual new vehicle                      38%
                        40%                                                   35%
that is currently
                                                                                                                    27%
available at a                                                                                                                                            22%
dealership.             20%

 53% are more likely
to purchase the          0%
vehicle if an actual                    Go to the                       Call or email the                      Submit a price                        Purchase the
new picture is                         dealership                         dealership                           quote to local                           vehicle
available.
                                                                                                                dealerships

                                 Top Box: % Much More Likely                                       Top 2 Box: % Much/Somew hat More Likely
                           Q: If you were able to view a picture of an actual vehicle that is currently available at a dealership (not stock pictures that manufacturers provide), what
                                                                  effect would it have on your likelihood to do each of the following activities?
Selling the Online Customer
    Implementing an Effective Sales Process
    Managing the Conversation
    Word Tracks That Sell
    Overcoming Customer Concerns
Current Sales Process


     New            Phone
     Lead            Call        Email




     Next                       Phone
                        Email
     Lead                        Call
The Effective Sales Process
           st
 New      1   Email         nd                   rd                            Phone
 Lead         or        2        Email      3         Email                     Call
        Auto-response


                                                              Voicemail                  Contact

                                                                  th

  “Separating                                                 4 Email
                                                                                        Manage
                                                                                      Conversation

    Yourself                       Start Day 2
                                                              2
                                                                  nd
                                                                       Phone


    From the                                                   rd
                                                              3 Phone
                                                                                Set Appt
                                                                                              Not Sold
  Competition”                                                    th
                                                              5 Email
                                                                                Thank you
                                                                                 Confirm
                                                                                              “Missed
                                                                                             Something”
                                                                                               Email
                                                               th                Appt.
                                                              4 Phone
                                                                                             Follow-up
                                                                                                Call
                                                              Broadcast           Sale
                                                                Email
                                                                                             Broadcast
                                                                                  Sold
                                                                                Customer       Email
                                                                                Broadcast
Establishing a Process 

                  Your Value Proposition

         You               Your Dealership                 The Car
1. Work together one       1. Family owned for      1. #1 model in class
 on one                     35 years                2. Fuel economy /
2. Specialize in online    2. High volume / low      safety features
 customers                  prices                  3. High trade-in value
3. Available by cell for   3. Free 1st oil change   4.
 questions
                           4. Extended service      5.
4.                          hours
5.                         5.
Effective Email Templates
1st Email – Auto Response 
(send immediately upon receiving lead)
                                  Subject line: Make, Model of Desired Vehicle

                                                                             Your trusted source for over 80 years!
 Dear Tom,

 Good day and welcome to your car buying solution!

 My name is Steve Smith, Internet Director here at Kelley Blue Book Motors. I’ve received your request for information on our 2007 Ford Mustang and will work
 to provide you detailed and accurate information. While I do that I’d like to share a few reasons why so many others have chosen our services and why I hope
 you will too.

 At Kelley Blue Book Motors our philosophy is direct and to the point:

 To provide the absolute best buying experience and strive to ensure your satisfaction throughout your ownership of this and all
 future purchases.

 To accomplish this for you as we have so many others:

 -you and I will work together from start to finish
 -should you decide to move forward most of the paperwork can be taken care of via phone, fax or email
 -our specially trained finance department can assist with all of your financing questions and needs

 Tom, as the leading pre-owned salesperson at Kelly Blue Book Motors for the last 3 years I am ready to help you in any way.

 You can expect detailed information and a price quote from me within 4 hours, or if after business hours, by tomorrow morning. Should you need to speak with
 me before that please contact directly at 949-555-1212. I’ll be happy to provide you a walking verbal tour of the 2007 Mustang.

 I look forward to making this the most enjoyable car purchasing experience you’ve ever had

 Thank you,




 Steve Smith
 Kelley Blue Book Motors
 195 Technology Drive, Irvine, CA
 Direct 949-555-1212
 ssmith@kbb.com
2nd Email – Question Answer 
         (5-15 minutes after 1st email)

                       Subject line: Your name, need you for a Moment

                                                              Your trusted source for over 80 years!

 Dear Tom,

 I’m preparing the information you requested on the 2007 Mustang. I do have a couple of questions that would help
 me provide you detailed and accurate information.

 “What    specific questions do you have about the 2007 Mustang overall?”

 “What   was it about this particular Mustang that caught your attention?
 (I’d like to provide you detailed information specific to your interests)
 If I don’t hear from you soon that’s OK. I understand you’re busy. I’ll still provide the quote within our 4 hour time
 commitment.

 Tom, working together we’ll make this the easiest car purchase your ever enjoyed. I hope you’ve found the car you
 want or need, my job is to get it to you in the easiest way possible. Should you need to speak with me prior to
 receiving my email I can be reached directly at 949-555-1212.

 Thank you,


 Steve Smith
 Kelley Blue Book Motors
 195 Technology Drive, Irvine, CA
 Direct 949-555-1212
 ssmith@kbb.com
3rd Email – Price Quote 

                                        Your trusted source for over 80 years!



Dear Tom,

Thank you again for your interest on our 2007 Mustang. Working together we’ll
deliver to you a great buying experience. Here is the information you
requested:

This Mustang is in absolutely new car condition. Other than the fact that it does
have a few miles you wouldn’t know the difference. This a a great opportunity
to save thousands from what a new Mustang would cost. Your 100% parts and
labor factory warranty will remain for an additional 2 years or 14,000 miles and
can be extended. You can be driving today and enjoying this weekend in the
sun! If you want it, we’ll make it happen though many choices in flexible
financing terms
3rd Email – Price Quote, cont’d 
                                                                  Specific information about this car. AT Car ID: AT-E343866


                                                        Kelley Blue Book Value                   $20,010
      2007 Mustang Convertible                          Reduced Internet Price                   $19,115.00
                                                        Body Style                               Convertible
                                                        Mileage                                  22,491
                                                        Exterior Color                           Silver
                                                        Interior Color                           Graphite
                                                        Engine                                   6 Cylinder Gasoline
                                                        Transmission                             Automatic
                                                        Drive Type                               2 wheel drive – rear
                                                        Fuel Type                                Gasoline
                                                        Doors                                    Two Door
                                                        Stock No.                                36014
                                                        VIN                                      1ZVFT84N975280582

 Seller's Comments
 Air Conditioning, Power Steering, Power Windows, Power Door Locks, Tilt Wheel, Cruise Control, AM/FM Stereo, MP3 (Single CD),
 Dual Front Air Bags, Alloy Wheels
 Disclaimer
 2.9% APR available on select CERTIFIED PRE-OWNED Vehicles! IMMEDIATE CA$H!!!! for your Car, Truck or Van!! Any make or
 model. We NEED them NOW! Call(888)555-1212 ext. 252 For more information, check our website out at
 www.kelleybluebookmotors .com We also have the best selection of Saleen Vehicles in Orange County.
3rd Email – Price Quote, cont’d 

 Tom, I did want you to know that we have comparable vehicles if you feel you need other options

 Just a sample:




 This one Tom will certainly get the job done in a great way and will save you some money. Bottom line is I know you and I working
 together can get you into the right car at the right price and make your day! If for whatever reason you don’t see exactly what
 you’re looking for please let me know. We work with other resources and have the ability to get you exactly what you want usually
 within 24-72 hours . I’m here to help.

 Seller's Comments
 Air Conditioning, Power Steering, Power Windows, Power Door Locks, Tilt Wheel, Cruise Control, AM/FM Stereo, MP3 (Multi CD), Premium
 Sound, Dual Front Air Bags, ABS (4-Wheel), Leather, Power Seat, Rear Spoiler, Alloy Wheels
 Disclaimer
 2.9% APR available on select CERTIFIED PRE-OWNED Vehicles! IMMEDIATE CA$H!!!! for your Car, Truck or Van!! Any make or model. We
 NEED them NOW! Call(888)5555-1212 ext. 252 For more information, check our website out at www.kbb.com. We also have the best
 selection of Saleen Vehicles in Orange County

 Tom, it’s important that I know this information has made it’s way to you so I’ll follow up by phone to make sure and to answer any questions
 you may have. In the meantime please call me directly should you have any questions. My Cell is 949-555-1212.
 I look forward to serving you as another happy customer and a future referral!

 Steve



 Steve Smith
 Kelley Blue Book Motors
 195 Technology Drive, Irvine, CA
 Direct 949-555-1212
 ssmith@kbb.com
Preparing for the Phone
    Conversation
Establishing Voice Contact

By now, you may have established a positive relationship 
through email.  The phone call should be an extension of an 
already established relationship.

Key factors to maximizing phone results:

  •Enthusiasm – excited for the opportunity to serve them
  •Voice and Tone – “It’s not just what you say, it’s how you say it.”
  •Emphasis and Volume – Be prepared and confident
  •No Car Talk – Speak to the level of customer
Effective Voicemail

          The Most Overlooked Aspect of Sales
 1st interaction with customer – create a positive 1st impression
            Goal is to get your phone call returned!

  Less than 30 seconds
  Identify name and company clearly
  Please check email immediately
  State benefit of doing business with you
  Repeat phone number twice, slowly
  Always end message with the customers name
Voicemail Example 
Hello__________,

_________, my name is ___________with Kelley Blue Book Motors. You requested information on a
________ and I did forward it to you via e-mail. I’m following up to make sure you received the information
and to be available should you have any questions. I was hoping for an opportunity to speak with you. You
see I not only specialize in working with Internet customers but also with _________. When I saw what
you were looking to accomplish I thought we‘d be a great fit and this would quickly be behind you.

As a matter of fact I recently assisted 3 others with this your (model requested) and they were amazed at
the results. They were a bit disappointed with what others were able to do for them to that point and were
pleasantly surprised how we were able to help them get the right car at the right price and made it seem
so easy.

If I could ask you to please pick up the phone and return my call I’ll share how we can do the same for
you. My direct line is _______and my cell phone is _________.


Anyway, I’ll try back a bit later so I can answer your questions but in the meantime, I ask that you please
read my e-mails, and when you do please give me a call right away. Working together, I’m sure this will be
the easiest car purchase you’ve ever enjoyed.
Again_____, my name is_______ with Kelley Blue Book Motors. My direct number is _______and I hope
to hear from you soon. With a short time on the phone this will all be behind you!

I look forward to working with you ______!
4th Email – No Contact 
(send after leaving voicemail or no answer)

                       Subject line: Make, Model from (your name)


                                                   Your trusted source for over 80 years!


Dear Tom,

Sorry to say I missed you when I attempted to reach you earlier. I wanted to confirm that you received
the information I forwarded via email on the (make, model) you requested.

If you would, please read my emails and respond with any questions you may have. It’s my pleasure
to work with informed customers like yourself who appreciate no nonsense, upfront communication.
Working together, we can make this the easiest vehicle purchase you’ve ever enjoyed.

Regards,



Steve Smith
Kelley Blue Book Motors
195 Technology Drive, Irvine, CA
Direct 949-555-1212
ssmith@kbb.com
Managing the Phone
Conversation to Set More
    Appointments
Managing the Phone 
Conversation
1. Salespeople who are the most intrusive make the most 
   money. 
2.   Get information before you give it…it’s that simple.
3. Selling isn’t convincing anyone of anything – it’s 
   helping  people get what they want or need.
4. It’s time to take the “kid gloves” off – customers 
   speaking with you are still looking for a solution 
   provider. Obviously no one has asked the right 
   questions to identify the customer’s true buying 
   motivations.
5. Be unique. If everything you say is the same as the last 
   salesperson the customer has no choice but to default 
   to price.
Managing the Phone Conversation
5 Keys to effective Phone Calls
1. Warm, enthusiastic greeting
  ‐ “Take the Curse “ off the call
  ‐ Gain permission to proceed OR set a specific appt. to speak 
2. Discovery – “Seek to Understand”
  ­ clarify information provided to you 
  ­ establish “wants and needs” of your customer
  ­ provide trade options  ( if necessary )
3. Review and summarize the conversation
  ­ confirm you and the customer are on the “same channel”
4. Provide Broad,  solution based information 
  ­ Use a “Demonstration of Competence” to provide reasons to entice customer 
     to visit the dealership.
5. Move to set a specific appt for dealership visit 
  ­ “ I have an opening either later today or tomorrow. What works better for 
     you”?
Questions ?

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Kelley bluebook

  • 1. Welcomes you to Digital Dealer UInUUUundertaU
  • 2. Rob Lange Rob Lange National Sales Trainer Director, Kelley Blue Book • Over 15 years retail automotive sales and sales management  experience • Joined Autobytel in January 1996 traveling nationwide to  implement dealership internet departments • Developed and presented the first Autobytel University Sales  Training Program in January 1997 • Since has conducted over 200 2‐day Internet Sales Seminars as  National Director of Dealer Training for Autobytel • Joined Kelley Blue Book as National Sales Training Director in  January 2008
  • 5. The Targeted Customer : someone who is most likely to respond to your message 83% of all vehicle buyers use internet in their shopping research Source: 2007 Dealer e-Besiness Performance Study
  • 7. Life Creates Car Shoppers Varying Stages of Buying Process 10% Information Gatherers 10% Ready to Move Now (early stages of shopping) (Looking for right combination As comfort level and sense of urgency of acceptable terms) increase they begin migration from 1. Car shopper to buyer 2. Features 3. Price 80% Active Shoppers 4. Person they like Job is to influence these customers based on 3 factors Trust + Confidence + Value = Nothing left to object to!
  • 8. Showroom Buying Process vs. Online  Buying Process Exposure Traditional Exposure Online 1. “Meet & Greet” 1. Your Online Positioning (3rd Party sites, your Web site) 2. Fact Finding/Discovery 2. Sorting of Inventory (Type of car, model, features) 3. Inventory Walk 3. Choice, Prices (Thumbnail photos) 4. Product Presentation 4. Vehicle Photos (Sellers notes, pricing) 5. Demo 6. Trial Close 7. Write Up 8. Sale
  • 9. Biggest Obstacles to Maximizing Online Sales Results Problem Solution 1. Lead Generation 1. Be where the “targeted” customers are 2. Conversion Rates 2. Deliver what the customer wants Do you recognize the need to make adjustments in the way you currently do business?
  • 11. Who are they - and why are they electing to do business this way? Reason Benefit 1. Time Constraints 1. More time efficient 2. Level playing field 2. Information raises comfort level 3. Need or desire 3. Solves financial or personal issue 4. Reduce stress 4. Less “humbling” than face to face 5. Desire to win 5. Potential to come away with an even greater than expected result If this is what they have identified as “hot buttons” it must be the “language” in which you speak with them!
  • 12. Conclusion If car buyers have told us they want to: • Save time • Make an educated, comfortable decision • Satisfy the problem • The easiest possible way • And leave the door open to an even greater than   expected result… You must tailor your online solution  to satisfy each concern
  • 13. Why is this so Important to You? 1 Million Surveyed*  55% resulted in sale of new or used vehicle 10% 90% Intended Dealer Other Dealer 23% 41% 36% New Vehicle Used New Vehicle Same Brand Vehicle Different Brand 24% closed within 10 days 68% closed within 90 days *De-duped new vehicle leads **2007 Cobalt eBusiness Performance Study
  • 15. Amount of Time Spent / Planning to Spend Shopping Online and at a Dealership •Consumers plan to spend more time shopping than dealers think •Amount of time spent online is largest difference How Much Time Do Total Amount of Time Total Amount of Time Spent Consumers Spend/ Spent Shopping Online Visiting Dealerships Plan to Spend Shopping? (before negotiations) Consumers: 16 hours Consumers: 11 hours Consumers: 5 hours Dealers: 10 hours Dealers: 4 hours Dealers: 6 hours Base: Consumers (n=326), Dealers (n=70)); Consumer Questions (Dealers Asked What They Think Consumers Do): Q: Please select the statement below that best describes the total amount of time you have spent, or expect to spend shopping for your next vehicle overall. Q: Please select the statement below that best describes the total amount of time you have spent or expect to spend shopping for your next vehicle online. Q: Please select the statement below that best describes the total amount of time you have spent or expect to spend shopping for your vehicle at the dealership (all dealerships including competitive makes/models) before beginning to negotiate the deal on your vehicle.
  • 16. Different types of Web sites are relied upon for different kinds of vehicle information Type of Site Relied on For Vehicle Information - NVB Manufacturer Site Independent Site Dealer Site Options/Features Info 73% 17% 10% Dealer Referral 49% 51% Find Dealer Invoice 23% 66% 12% Discount Information 21% 66% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2007 J.D. Power and Associates New Autoshopper.com Study - Based to AIUs
  • 17. KBB, Edmunds & Consumer Reports are the top 3 independent sites among new vehicle buyers Top 10 Independent Sites Visited by NVBs kbb.com 44% Edmunds.com 29% Consumer Reports.org 23% Yahoo! Autos 13% AutoTrader.com 12% CarMax.com 12% The Bottom Line: NADA Guides.com 10% Kbb.com is the #1 Automotive Cars.com 9% Information Web Site for New Car Shoppers Car and Driver.com 8% eBay Motors.com 7% Source: 2007 J.D. Power New Autoshopper.com Study (NAS)
  • 18. KBB, AutoTrader.com and Edmunds are the top 3 independent sites among used vehicle buyers Top 10 Independent Sites Visited by UVBs kbb.com 55% AutoTrader.com 35% Edmunds.com 24% CARFAX.com 22% eBay Motors 22% CarMax.com 21% NADA Guides.com 19% The Bottom Line: Kbb.com is the #1 Automotive Yahoo! Autos 19% Information Web Site for Used Cars.com 18% Car Shoppers ConsumerReports.org 16% Source: 2007 J.D. Power Used Autoshopper.com Study (UAS)
  • 19. KBB.com Visitor Location • Market research to dispel regional myth 8 -Apr 8 -M ar 8 -M ay Regional Market Visitors % Share Visitors % Share Visitors % Share LOS ANGELES 596,708 4.10% 579,830 4.10% 581,713 4.20% NEW YORK 454,314 3.20% 424,984 3.00% 423,696 3.00% SAN FRANCISCO OAK SAN JOSE 260,287 1.80% 252,569 1.80% 255,652 1.80% CHICAGO 280,670 1.90% 270,637 1.90% 266,945 1.90% BOSTON  MANCHESTER 239,503 1.70% 233,169 1.70% 234,228 1.70% PHILADELPHIA 239,855 1.70% 239,855 1.70% 230,555 1.70% DALLAS FT. WORTH 204,151 1.50% 204,151 1.50% 207,771 1.50% HOUSTON 169,452 1.20% 169,452 1.20% 175,428 1.30% ORLANDO DAYTONA BCH MELBRN 128,184 0.90% 128,184 0.90% 128,444 0.90% MIAMI FT. LAUDERDALE 106,673 0.80% 106,673 0.80% 105,173 0.80% SEATTLE TACOMA 187,398 1.30% 187,398 1.30% 183,319 1.30% MINNEAPOLIS ST PAUL 165,417 1.20% 165,417 1.20% 159,704 1.10% KANSAS CITY 95,707 0.70% 95,707 0.70% 90,498 0.60% NASHVILLE 95,306 0.70% 95,306 0.70% 92,879 0.70% MEMPHIS 44,111 0.30% 44,111 0.30% 44,079 0.30% KNOXVILLE 43,433 0.30% 43,433 0.30% 42,582 0.30%
  • 20. Results show that more AIUs found the vehicle they bought over the Internet than driving by dealer lots Top Two Methods Used That Led to Used Vehicle Purchase¹ 50% Drove by Dealer Lots Internet Vehicle Locator/Online Classifieds 39% 40% 37% 33% 30% 31% 29% 30% 27% 24% 21% 19% 20% 10% 0% 2003 2004 2005 2006 2007 2007 J.D. Power and Associates New Autoshopper.com Study Base: Total AIUs ¹It is important to point out that the 37% statistic reported above is understated due to unaided recall
  • 21. Timeframe To Buy Planning to purchase / lease a new vehicle Yes, 73% No, 27% Shoppers Are Most Likely to Buy…. In the next week 12% 63% In the next month 24% In the next 2-3 27% months In the next 4-6 17% months Longer than 6 20% Months Source: Kelley Blue book Market Research (2007)
  • 23. New Car Marketing - Photos EFFECT ON LIKELIHOOD TO DO ACTIVITIES 100% 74% of consumers are more likely to 80% 74% visit a dealership if 66% 61% they are able to 53% 60% view a picture of an actual new vehicle 38% 40% 35% that is currently 27% available at a 22% dealership. 20% 53% are more likely to purchase the 0% vehicle if an actual Go to the Call or email the Submit a price Purchase the new picture is dealership dealership quote to local vehicle available. dealerships Top Box: % Much More Likely Top 2 Box: % Much/Somew hat More Likely Q: If you were able to view a picture of an actual vehicle that is currently available at a dealership (not stock pictures that manufacturers provide), what effect would it have on your likelihood to do each of the following activities?
  • 24. Selling the Online Customer Implementing an Effective Sales Process Managing the Conversation Word Tracks That Sell Overcoming Customer Concerns
  • 25. Current Sales Process New Phone Lead Call Email Next Phone Email Lead Call
  • 26. The Effective Sales Process st New 1 Email nd rd Phone Lead or 2 Email 3 Email Call Auto-response Voicemail Contact th “Separating 4 Email Manage Conversation Yourself Start Day 2 2 nd Phone From the rd 3 Phone Set Appt Not Sold Competition” th 5 Email Thank you Confirm “Missed Something” Email th Appt. 4 Phone Follow-up Call Broadcast Sale Email Broadcast Sold Customer Email Broadcast
  • 27. Establishing a Process  Your Value Proposition You Your Dealership The Car 1. Work together one 1. Family owned for 1. #1 model in class on one 35 years 2. Fuel economy / 2. Specialize in online 2. High volume / low safety features customers prices 3. High trade-in value 3. Available by cell for 3. Free 1st oil change 4. questions 4. Extended service 5. 4. hours 5. 5.
  • 29. 1st Email – Auto Response  (send immediately upon receiving lead) Subject line: Make, Model of Desired Vehicle Your trusted source for over 80 years! Dear Tom, Good day and welcome to your car buying solution! My name is Steve Smith, Internet Director here at Kelley Blue Book Motors. I’ve received your request for information on our 2007 Ford Mustang and will work to provide you detailed and accurate information. While I do that I’d like to share a few reasons why so many others have chosen our services and why I hope you will too. At Kelley Blue Book Motors our philosophy is direct and to the point: To provide the absolute best buying experience and strive to ensure your satisfaction throughout your ownership of this and all future purchases. To accomplish this for you as we have so many others: -you and I will work together from start to finish -should you decide to move forward most of the paperwork can be taken care of via phone, fax or email -our specially trained finance department can assist with all of your financing questions and needs Tom, as the leading pre-owned salesperson at Kelly Blue Book Motors for the last 3 years I am ready to help you in any way. You can expect detailed information and a price quote from me within 4 hours, or if after business hours, by tomorrow morning. Should you need to speak with me before that please contact directly at 949-555-1212. I’ll be happy to provide you a walking verbal tour of the 2007 Mustang. I look forward to making this the most enjoyable car purchasing experience you’ve ever had Thank you, Steve Smith Kelley Blue Book Motors 195 Technology Drive, Irvine, CA Direct 949-555-1212 ssmith@kbb.com
  • 30. 2nd Email – Question Answer  (5-15 minutes after 1st email) Subject line: Your name, need you for a Moment Your trusted source for over 80 years! Dear Tom, I’m preparing the information you requested on the 2007 Mustang. I do have a couple of questions that would help me provide you detailed and accurate information. “What specific questions do you have about the 2007 Mustang overall?” “What was it about this particular Mustang that caught your attention? (I’d like to provide you detailed information specific to your interests) If I don’t hear from you soon that’s OK. I understand you’re busy. I’ll still provide the quote within our 4 hour time commitment. Tom, working together we’ll make this the easiest car purchase your ever enjoyed. I hope you’ve found the car you want or need, my job is to get it to you in the easiest way possible. Should you need to speak with me prior to receiving my email I can be reached directly at 949-555-1212. Thank you, Steve Smith Kelley Blue Book Motors 195 Technology Drive, Irvine, CA Direct 949-555-1212 ssmith@kbb.com
  • 31. 3rd Email – Price Quote  Your trusted source for over 80 years! Dear Tom, Thank you again for your interest on our 2007 Mustang. Working together we’ll deliver to you a great buying experience. Here is the information you requested: This Mustang is in absolutely new car condition. Other than the fact that it does have a few miles you wouldn’t know the difference. This a a great opportunity to save thousands from what a new Mustang would cost. Your 100% parts and labor factory warranty will remain for an additional 2 years or 14,000 miles and can be extended. You can be driving today and enjoying this weekend in the sun! If you want it, we’ll make it happen though many choices in flexible financing terms
  • 32. 3rd Email – Price Quote, cont’d  Specific information about this car. AT Car ID: AT-E343866 Kelley Blue Book Value $20,010 2007 Mustang Convertible Reduced Internet Price $19,115.00 Body Style Convertible Mileage 22,491 Exterior Color Silver Interior Color Graphite Engine 6 Cylinder Gasoline Transmission Automatic Drive Type 2 wheel drive – rear Fuel Type Gasoline Doors Two Door Stock No. 36014 VIN 1ZVFT84N975280582 Seller's Comments Air Conditioning, Power Steering, Power Windows, Power Door Locks, Tilt Wheel, Cruise Control, AM/FM Stereo, MP3 (Single CD), Dual Front Air Bags, Alloy Wheels Disclaimer 2.9% APR available on select CERTIFIED PRE-OWNED Vehicles! IMMEDIATE CA$H!!!! for your Car, Truck or Van!! Any make or model. We NEED them NOW! Call(888)555-1212 ext. 252 For more information, check our website out at www.kelleybluebookmotors .com We also have the best selection of Saleen Vehicles in Orange County.
  • 33. 3rd Email – Price Quote, cont’d  Tom, I did want you to know that we have comparable vehicles if you feel you need other options Just a sample: This one Tom will certainly get the job done in a great way and will save you some money. Bottom line is I know you and I working together can get you into the right car at the right price and make your day! If for whatever reason you don’t see exactly what you’re looking for please let me know. We work with other resources and have the ability to get you exactly what you want usually within 24-72 hours . I’m here to help. Seller's Comments Air Conditioning, Power Steering, Power Windows, Power Door Locks, Tilt Wheel, Cruise Control, AM/FM Stereo, MP3 (Multi CD), Premium Sound, Dual Front Air Bags, ABS (4-Wheel), Leather, Power Seat, Rear Spoiler, Alloy Wheels Disclaimer 2.9% APR available on select CERTIFIED PRE-OWNED Vehicles! IMMEDIATE CA$H!!!! for your Car, Truck or Van!! Any make or model. We NEED them NOW! Call(888)5555-1212 ext. 252 For more information, check our website out at www.kbb.com. We also have the best selection of Saleen Vehicles in Orange County Tom, it’s important that I know this information has made it’s way to you so I’ll follow up by phone to make sure and to answer any questions you may have. In the meantime please call me directly should you have any questions. My Cell is 949-555-1212. I look forward to serving you as another happy customer and a future referral! Steve Steve Smith Kelley Blue Book Motors 195 Technology Drive, Irvine, CA Direct 949-555-1212 ssmith@kbb.com
  • 34. Preparing for the Phone Conversation
  • 35. Establishing Voice Contact By now, you may have established a positive relationship  through email.  The phone call should be an extension of an  already established relationship. Key factors to maximizing phone results: •Enthusiasm – excited for the opportunity to serve them •Voice and Tone – “It’s not just what you say, it’s how you say it.” •Emphasis and Volume – Be prepared and confident •No Car Talk – Speak to the level of customer
  • 36. Effective Voicemail The Most Overlooked Aspect of Sales 1st interaction with customer – create a positive 1st impression Goal is to get your phone call returned! Less than 30 seconds Identify name and company clearly Please check email immediately State benefit of doing business with you Repeat phone number twice, slowly Always end message with the customers name
  • 37. Voicemail Example  Hello__________, _________, my name is ___________with Kelley Blue Book Motors. You requested information on a ________ and I did forward it to you via e-mail. I’m following up to make sure you received the information and to be available should you have any questions. I was hoping for an opportunity to speak with you. You see I not only specialize in working with Internet customers but also with _________. When I saw what you were looking to accomplish I thought we‘d be a great fit and this would quickly be behind you. As a matter of fact I recently assisted 3 others with this your (model requested) and they were amazed at the results. They were a bit disappointed with what others were able to do for them to that point and were pleasantly surprised how we were able to help them get the right car at the right price and made it seem so easy. If I could ask you to please pick up the phone and return my call I’ll share how we can do the same for you. My direct line is _______and my cell phone is _________. Anyway, I’ll try back a bit later so I can answer your questions but in the meantime, I ask that you please read my e-mails, and when you do please give me a call right away. Working together, I’m sure this will be the easiest car purchase you’ve ever enjoyed. Again_____, my name is_______ with Kelley Blue Book Motors. My direct number is _______and I hope to hear from you soon. With a short time on the phone this will all be behind you! I look forward to working with you ______!
  • 38. 4th Email – No Contact  (send after leaving voicemail or no answer) Subject line: Make, Model from (your name) Your trusted source for over 80 years! Dear Tom, Sorry to say I missed you when I attempted to reach you earlier. I wanted to confirm that you received the information I forwarded via email on the (make, model) you requested. If you would, please read my emails and respond with any questions you may have. It’s my pleasure to work with informed customers like yourself who appreciate no nonsense, upfront communication. Working together, we can make this the easiest vehicle purchase you’ve ever enjoyed. Regards, Steve Smith Kelley Blue Book Motors 195 Technology Drive, Irvine, CA Direct 949-555-1212 ssmith@kbb.com
  • 39. Managing the Phone Conversation to Set More Appointments
  • 40. Managing the Phone  Conversation 1. Salespeople who are the most intrusive make the most  money.  2. Get information before you give it…it’s that simple. 3. Selling isn’t convincing anyone of anything – it’s  helping  people get what they want or need. 4. It’s time to take the “kid gloves” off – customers  speaking with you are still looking for a solution  provider. Obviously no one has asked the right  questions to identify the customer’s true buying  motivations. 5. Be unique. If everything you say is the same as the last  salesperson the customer has no choice but to default  to price.
  • 41. Managing the Phone Conversation 5 Keys to effective Phone Calls 1. Warm, enthusiastic greeting ‐ “Take the Curse “ off the call ‐ Gain permission to proceed OR set a specific appt. to speak  2. Discovery – “Seek to Understand” ­ clarify information provided to you  ­ establish “wants and needs” of your customer ­ provide trade options  ( if necessary ) 3. Review and summarize the conversation ­ confirm you and the customer are on the “same channel” 4. Provide Broad,  solution based information  ­ Use a “Demonstration of Competence” to provide reasons to entice customer  to visit the dealership. 5. Move to set a specific appt for dealership visit  ­ “ I have an opening either later today or tomorrow. What works better for  you”?