News

Did you know that your local competitor just got smarter?  You thought that they were behind the ball with digital marketing, social media, and leveraging the Internet but that was yesterday’s news.

Your local competitor did wake up.  They realized that they were behind and took action.  Good entrepreneurs are not perfect but when they realize that they are losing market share and wake up they can be a fierce competitor once again.

If I were you, I would be looking over my shoulder because your competitor is using their recent knowledge to mount an attack.

Your competitor attended a 20-group meeting, a social media conference, or a digital marketing workshop, and the lights went on.  You were too busy to notice this change so I thought I would send a warning shot over the bow.

You Once Had An Edge

I was pleased to know that you got started with social media and digital marketing a few years ago and had an edge in your local market.  You exploited that edge and basked in the sun of your success.  Congratulations.

You were rewarded with greater sales, website traffic, and market share. Over the past few years you have been busy implementing the things that you learned by engaging in the educational opportunities offered by this industry.

In fact, I’ve noticed that you have been so intent on implementing what you learned you have been too busy to attend any new workshops in the past year.  Is it still true that you got so many ideas in 2009 and 2010 that you have decided to skip attending conference this year?

Why pile on more ideas when you haven’t had a chance to implement those from 2009 right?

Your Competitor is Smiling

To paraphrase a famous business book, while you have been busy implementing last years’ digital marketing strategies  “the Cheese has moved again”.

Do you need an example?  Today being on Google Page One is not as important as being on Google Page with strong positive review stars.   If you are one Page One with bad reviews, your advertising budget is helping to direct more business to your competitors.

If you haven’t focused on a strong IRM process, much of your Automotive SEO work may be actually hurting more than helping your online sales.

No Time To Get Complacent

Is this scenario describing your dealership?

• Are you the incumbent that has decided to attend conference every other year?
• Are you the dealership that recently woke-up and engaged?
• Are you the dealer who wants to engage but needs assistance creating a competitive digital marketing strategy?

The dealers who want to remain relevant cannot afford to skip a year of education.  The industry is moving faster that most can comprehend yet I hear so many excuses why dealers think they can take a break from learning.

• “I’ve been to that event last year”
• “I can’t take time out of the office.”
• “The speakers and topics are always the same”
• “I’m the only person in my market that gets it.”

The reality is that the best conferences have not only new topics but also important revisions to existing strategies that you are using.

Two years ago little data on consumer behavior on dealer mobile websites was being shared, today we have a wealth of data to discuss.

Two years ago the conversation on reputation management was just starting and today the case studies on the impact of online reviews is chilling.

Google has recently changed their standards for organic search rankings and many dealers were penalized for poor link building processes.

Invest in Education in 2011

Since your competitors are heading to conferences, workshops, and online learning opportunities based on the most relevant topics for 2011 I thought you would want to reconsider your lack of action.

You have the power to remain ahead of your competition and find where the cheese has been moved.  What will you do?

I hope to see you in Orlando for starters.  Lock in a $100 discount off Boot Camp Registration by taking advantage of this special registration link.

My job requires me to be in front of a computer for many hours a day. When I started PCG Digital Marketing in 2005, I remember many months where I would be at the computer 12-18 hours a day, 7 days a week. This lifestyle choice coupled with lack of exercise and a healthy diet resulted in some significant weight gains by January 2010.

During those first five years of entrepreneurial growth I told myself I didn’t have time to go to the gym. I was convinced that I needed every hour to invest in the business. I was excited about how many opportunities existed and at the same time was buried with so many “things” to do.

I rationalized that when things got easier I would invest in myself once again and get back to the gym.

During those first five years I was also challenged by a statement Grant Cardone; “CEO’s of the nations largest and most successful companies read over 70 books a year”. I laughed and said wow, who has the time to read that many books. Once again, I was convinced that I didn’t have time to invest in my intellectual health because I had some many things to do.

I’m not the only one with questionable priorities.

It amazes me that when I speak around the country at 20 groups and conferences how many dealers openly admit that they are lacking the skills and knowledge to operate key components of their business. Overall, they are challenged to understand how to leverage the internet to grow their business.

Dealers admit that they have broken processes and business structure that make them inefficient. They have questions on lead management, CRM processes, social media investments, digital marketing strategies, and how to best leverage their website to increase conversion.

Yet when I encourage these same dealers to send their managers and key staff to training conferences they reply just like I once did; “My team is too busy to leave the dealership“.

This is one of the most dangerous myths that any dealer could buy into.  It’s the belief in this myth that has put dealers behind other industries in leveraging the opportunities in a digital world.

My Wake Up Call

In January of 2010 my doctor gave me a wake-up call.  He told me that if I didn’t change my lifestyle I would become a Type 2 Diabetic.  My first reaction was “This is impossible.  There are no people in my family with diabetes!”.

What I later learned is that diabetes is becoming an epidemic around the world as people refuse to educate themselves on the impact of poor diet and lack of exercise.

Unlike many other Americans that are presented with these facts, I listened.  I changed my diet and invested in a personal trainer 3 days a week.  Today I weigh 35 pounds less and my physical endurance, energy, and mental clarity has increased.

In fact, when I was in high school, I was a cross country runner.  I thought that my days of running were over.  Next month I’ll be running a half-marathon at the Jersey Shore.

I’m also reading one book a week.  It’s amazing how much knowledge, power, and enlightenment you get by reading books from leaders in all fields of life.  Grant’s admonition was true; leaders who read can lead better.  The investment to read is making my vision clearer,  processes more streamlined, increasing customer service, and creating a better workplace for my employees.

More Time And Greater Success

The irony is that since I have invested in physical exercise and mental exercise I have MORE TIME and MORE SUCCESS in my business.  It’s the exact opposite of what so many business owners, managers, and workers believe.  I challenge dealers to experience the same realization and success that I have found.

Dealers and General Managers this is your wake-up call.  Debunk the myth that you can’t afford to send employees to educational conferences.  Recognize it as a lie that will perpetuate mediocrity.

Dealership employees may retain more by getting them out of the dealership.  By taking them out of the normal mix, they can focus on learning.  They also benefit from learning and collaboration with their peers. Every time I train at a dealership, the minds of the employees are in work mode.  Interruptions are common and often people are pulled  out of a training session for an “urgent” matter.

The combination of live conference and online webinars and training tools is the key for dealership success.  There are many great online courses, training systems, and whitepapers that dealers should leverage as well.

Success and change will only be realized when dealers understand that they CAN NOT afford to ignore training and skills development.  Investing in employee education should be considered a mandatory part of their employment experience.

Any dealership should be able to operate efficiently if key members are away for a few days for a conference. If you have to, consider it an educational vacation. If the business can’t operate smoothly for a few days, then there are larger structural issues at play.

Recommendations For Live Education

On April 16-18th, the Automotive Marketing Boot Camp will offer best practice advice from over 30 industry experts and specialists to assist dealers remain relevant and competitive. The Boot Camp experience starts on Saturday afternoon April 16th and ends on Monday Night April 18th.  The schedule minimizes the time out of the dealership and maximizes the investment in education.   The boot camp format includes inspirational keynote speakers, workshops, and hands-on labs.   Get your team registered and stop buying into the myth that is undermining your success.

Bob Burg author of “The Go-Giver”  and “Endless Referrals” will be the keynote speaker on Sunday morning.  Jimmy Vee and Travis Miller authors of “Gravitational Marketing” will be the keynote speakers on Monday morning.  The workshops will cover important topics that include social media, fixed operations, CRM processes, telephone skills, content syndication, microsite marketing, video marketing, Internet pay plans, and more.

Follow this link to receive $100 off the registration for the Automotive marketing Boot Camp:  Boot Camp Special Registration Offer

As I conduct training seminars and webinars for the automotive industry, I often ask dealers what is their current mix between traditional automotive advertising and digital automotive advertising.

What is your mix?

In the traditional advertising category I would add radio, TV, print publications, newspaper, printed yellow pages, billboards, and direct mail costs.

In the digital advertising category I would add website costs, Google Adwords or similar Pay-Per-Click models, digital display advertising, re-marketing, social media, third party leads, OEM leads, Search Engine Optimization (SEO) services, and inventory advertising platforms like Autotrader.com and the Automotive Advertising Network (AAN).

The responses I get from car dealers vary, but can range from 10% digital to 95% digital. This large swing reflects the tsunami of change that has engulfed the automotive industry in the last 10 years. These massive changes are not limited to the automotive sector. All business owners are being faced with the challenge of being open to reconsider if the yellow pages, radio, TV, and newspaper are connecting their brand with the majority of in market buyers.

The Need Education

Recently I spoke with a dealer who had just purchased an existing franchise store that need a complete renovation. He shared all the costs associated with the refit of the building and his upcoming opening. He wanted to turn around this store and make it profitable location.

The conversation we had was focused on how he could make the biggest impact on the market with this new point. Intermixed with the conversation was frequent reminders of how much he was investing in the store, how much this place needed a capital investment, and how much he wanted to make this work.

When I asked him on what portion of his budget was allocated to digital marketing, the answer surprising. Aside from his costs to setup his new website, he had not budgeted for any other digital marketing of the dealership. His advertising plans were solely radio, TV, and print, and I won’t share what he planned to spend. When I suggested an initial investment of $3,000 a month in digital marketing strategies, he said that he didn’t have that much to spend.

Welcome to 2011 and the wide gap in knowledge and confidence that digital marketing is a core strategy for automotive retailing.

Moving Toward The Middle

It is easy to say that a car dealer that is only spending 10% in digital marketing is spending too little on new media since over 90% of car buyers use the Internet to research a car. It may also be safe to say that a dealer who eliminates all radio, TV, newspaper, and direct mail are missing a segment of their local market that is influenced by these channels.

Ignoring the extremes, I would like to suggest that to bigger opportunity is to move the majority of car dealers that under utilize digital marketing to the middle. From a survey conducting by PCG Digital Marketing with dealers across the country, the current average “allocation” for digital investments is 20-25% of a dealers total advertising budget.

I would like to see the average dealer investment in digital marketing move to 50% in the next year.

Those that say 50% is still too little, I’ll be working on another industry move in 2012! We can’t parallel park the Titanic in Manhattan without some patience.

Moving digital spending to 50% would be considered a massive change but one that this industry needs to embrace. This reallocation of traditional marketing investments will not happen without a massive effort to reeducated the dealer community. Proper education on the strategies and opportunities that digital marketing can provide will help make those steps to 50% + with confidence. Today, dealers either are not moving because of fear or they just don’t know better. Neither position is attractive to an entrepreneur.

Automotive Advertising and Education

We can assume that dealers will make this move on their own but there will be a tremendous opportunity cost for those that take the slow path to 50%; an that still is not the end game. Since first responders are rewarded in search, the sooner dealers make this move, the more they will be rewarded. This move will need a coordinated effort by industry leaders, vendors, and educational agencies to educate dealers on all of the new media opportunities and marketing strategies for automotive advertising.

Dealer principals need to be able to clearly differentiate and measure the benefits of SEO, SEM, social media, display advertising, and inventory syndication. Every time I conduct a seminar at a 20 Group meeting or at an automotive conference, light bulbs go off in the audience. Dealers are truly thankful to be shown, in plain English, why their lack of digital marketing investments is hurting their brand.

Digital Marketing Conference

We need to coordinate more “light bulb” experiences at 20 Groups, conferences, and regional teaching events. One of those opportunities for education is the 2011 Automotive Marketing Boot Camp in Orlando, April 16th-18th. The Boot Camp will be held at the beautiful Hilton Orlando hotel and has attracted a wonderful team of industry leaders and dealership employees to teach.

Dealers spending less than 50% of your total advertising budget on digital marketing and new media, need to attend and find out what is working for dealers that have made that have crossed that line If dealers wants to increase their dominant market position, they should attend to learn that latest strategies for digital marketing and social media from industry leaders.

I would also like to suggest that at least 2 people from each dealership should attend. Why? Because the best opportunity for change occurs when the dealer principals or GM learns side by side with their eCommerce Director or Internet Sales manager. Too many things can get lost in translation when one of these two roles are missing.

The good news is that attendees and educators at the Boot Camp will be willing to share exactly what is working and how they are measuring the ROI of that investment. Dealers can register for the Boot Camp and make the decision to invest in education and the future of their dealership today. The event website is located at: http://www.automotivemarketingbootcamp.com