When an internet car shopper requests a price, a dealer can either provide one or dodge. Most dealers choose the latter, instead opting to ask more questions in an attempt to:
1.) build the relationship
2.) find the most appropriate car
3.) create more interest
4.) buy time
And while this strategy can work under certain circumstances it has led to fewer customers clicking thru, and can often result in a lost lead. Particularly when there are other dealers who are willing to answer the customer's question. Handling the internet shopper can be tricky, they may be suspicious, doubtful, and short on attention. Contrary to popular belief, when a customer doesn't get a price quickly and easily, they are not left believing that it is because the price is 'too low' to disclose. To the contrary, when a dealer dances around price, a shopper believes it is because the dealer is hiding a higher price than can be had elsewhere. And why wouldn't they?
There are so many reasons that a dealer may choose not to provide a price on the first request. Customers typically pick the wrong car, or are not specific enough in their request to even work up an accurate quote (i.e How much is a Honda Accord?). There are usually rebates and or other incentives that one can apply to the price depending on the customer's situation, and without knowing more about the customer, the price quote won't be accurate anyway.
But we need to give the customer more credit, they are informed, sometimes more informed than the salesperson they are emailing with. So the simple way to handle a request for quote is by answering the question and providing a disclaimer; you may qualify for additional incentives and rebates depending on your final selection and method of purchase, but our Accords range in price from .... to .... depending on trim and optional equipment. The one you selected has an MSRP of $23,450 and your price is just $22,600.
So despite the 'risk' of actually giving the customer information they may be able to use, I say just do it! Then follow up and make sense out of the quote.
Wednesday, May 6, 2009
Friday, April 24, 2009
Who is your website built for?
By most accounts 90% of today’s car buyers will research their purchase on the internet prior to making a decision. The most recent industry studies show that these consumers will look on manufacturer’s sites, research sites, and dealer websites. Dealer websites are becoming the first stop in the process. However, the best dealer websites, while providing plenty of information, perform dismally when comes to converting visits to contacts. The best dealer sites are able to convince just 5% of visitors to click through. Why is the conversion ratio so poor?
Today’s dealer faces a myriad of choices when it comes to website tools. The vast majority of websites are template based which may then be customized with a variety of ‘bling’. However, manufacturers are increasingly putting pressure on dealers to standardize the look and feel, forcing many dealers to add a second (or third) website over which they have complete autonomy to differentiate themselves.
Website tools and Add-Ons:
There is video. Dealers often add a short clip of themselves on the lot, a video test drive or a view of the vehicle. YouTube clips, background music, car configurators, 360 degree pictures, allowing the user to reposition the photo with a movement of the mouse. Flash, moving images designed to draw the visitor in and engage. The talking ‘pawns’ that appear to emerge from the side of the screen and greet the visitor, inviting them to look closer. All of these visual add-ons seek to improve the browsing experience.
Online negotiation platforms are coming into vogue now. Is online negotiation good? Would any other industry consider selling products like that? No, but many old-skool retailers believe that customers want the haggle without the trip to the showroom. They don’t. Why duplicate the worst part of buying a car and port it to the internet?
Auction style format is a proven model when there are multiple buyers and sellers. But on an individual dealer site, it hardly makes any sense at all to bid against oneself up to the dealer’s minimum selling price, at which point the process ends. Other tools ask a customer to ‘name their price’ or ‘make an offer’, in these cases customers will either put in $1, or nothing at all. Why would anyone expect an online customer to ‘show their cards’? Just ask Priceline.com.
But what do these features do for the shopper? Not much. An internet car shopper is no different from other online shoppers; they want information quickly and completely. What information do they want? Price & Inventory. This is what drives the decision to contact or allow a dealer to contact. Price is disclosed and contact is made. However, this is simply Step 1. The internet brings the customer and dealers together; it doesn't create a buyer or sell a car. The car dealer that does that.
Joseph Antley
CEO RedNumbat
Wednesday, April 8, 2009
Is the bar low enough yet?
I had a very interesting conversation with a friend the other day that confirmed my beliefs about online car shopping. We were discussing how people use the internet when they're ready to buy a car. He mentioned that he had just purchased a car and how the internet helped a lot with the process. In fact, he said it was "Great!"
I wanted to find out more. Everything I've read about internet car shopping has pointed to inherent weaknesses, frustration and the proverbial 'run-around'. A recent industry survey found that 3 out of 4 car buyers had said that the process was unsatisfying. Polk, J.D. Power and others have found that online car shoppers are looking for several key pieces of information; Inventory, Price and Response. Seems reasonable enough.
Back to my friend. He went on to tell me about how he had first gone to one of the big "research" sites to find out more about his selections. Like most buyers, he had already narrowed his search to 2 vehicles. So after learning more about trim, options, MPG etc he settled on the Honda Pilot. He then visited one of the big "buying" sites to get a fast, free quote. He entered his contact information and hit 'submit'. While waiting for the fast, free quotes, he decided to visit the local Honda dealer's website. Then another, after all there was inventory to browse, video test-drives and moving images!
After just a few hours he received roughly 13 emails from 3 different dealers. The first several were auto-responses acknowledging his request. He never did get his fast, free quotes but each email promised that he would be contacted as soon as possible to determine:
1. The kind of car he wanted
2. What’s available
3. Schedule a test drive
4. Work up the price
5. Discuss finance options
Sure enough, the phone began to ring, despite the fact that he expressly indicated that his preferred contact method was email. He talked with 2 of the 3 dealers and decided to visit the dealer closest to his home. He was assured they had the color he wanted and the price would be great. So he went to the dealer, negotiated a price and bought the car.
How did the internet help? Why was this experience acceptable? If he were buying a camcorder would he accept this? I think not. Imagine having to go through this process to get a price and availability for a camcorder or a TV.
The bar has been lowered to the point where it is considered a 'good experience' to not get a simple price on a car without having to first speak to a salesperson. Virtually every other industry has responded to consumer expectations and has embraced the inherent benefits offered by the internet to improve the buying experience. From consumer electronics to insurance to real estate, the internet offers transparency, selection, anonymity, and research. And sales have not declined as a result of this consumer empowerment, in fact they have increased.
So why hasn't the car business done the same?
Friday, September 12, 2008
Great response.
So far, the response to RedNumbat has been all positive. Although a handful of dealers still hate the idea of empowering the consumer to make an informed decision. That will change, one way or another.
I came across a great blog from Cathy Healy about the change (or reluctance to change) in the retail car business. Cathy is a longtime industry insider and her opinions are dead on!
http://cathyhealey.blogspot.com/
That's all for now. We will keep bringing new dealers into the 'Numbat network, and soon RedNumbat will be the destination. Period.
I came across a great blog from Cathy Healy about the change (or reluctance to change) in the retail car business. Cathy is a longtime industry insider and her opinions are dead on!
http://cathyhealey.blogspot.com/
That's all for now. We will keep bringing new dealers into the 'Numbat network, and soon RedNumbat will be the destination. Period.
Monday, September 8, 2008
How do you help an industry that won’t change?
Late in 2006 I developed software to help car dealers automate the request-for-quote process on their websites. The simple interface allows website visitors to search inventory, select a car and instantly receive an actual price, not MSRP and not invoice, but a bona fide purchase price. Up to now, the only way to shop for a car on the internet is to visit a website, fill out a contact form and wait for a salesperson to call or email. It took some time, but by late 2007 I was ready to start peddling my idea. I went to dealers in New Jersey and New York showing them how they could satisfy and get contact information from more of their online visitors, build a database of email addresses for marketing purposes, and gain an edge over their competition.
I had spoken with literally hundreds of consumers and I asked them; if they were in the market for a car and knew of a website where they could search inventory in real-time, select a car, and receive an immediate purchase price, would they use it? The response was a resounding, yes, they would use it. Armed with this feedback and having ‘mystery shopped’ hundreds of dealers who failed to deliver a “Quick Quote” I figured my product would be an overnight success. I overestimated the willingness of my market to change. Wrongly assuming that car dealers would embrace the opportunity to actually reap the benefits of the ‘net, and provide a satisfying customer experience, I pushed on finding the odd dealer ready to change.
My company is called RedNumbat, the ‘Numbat is a little unassuming icon added to a dealer’s homepage that proclaims “Click me and I’ll get your price in seconds!” Customers began to click and get their prices. I spoke with them, and they were surprised and delighted to actually get an instant price without having to talk or email with the salesperson. Although many thought it was just a ‘come on’ from the dealer, they gave it a try anyway. Were the dealers right? Did customers actually prefer going to the showroom and dickering over price?
Dealers fear that they won’t make any profit if they have to post prices on the internet. They would rather do business the old way, where a guy wanders into the showroom and then worn out after negotiations, he “takes it home today”. Those days and those guys are running out. By most accounts 90% of car shoppers will access the internet prior to making a purchase. Customers are routinely better informed than the salespeople they do business with. Gone are the days when a car buyer walks in knowing little about the car, the financing, the warranty, the accessories or the trade-in value. In fact, profits are going down on the sale of a new car, and they have been for years. However, customers truly don’t expect a dealer to lose money selling a car, indeed if a dealer treats them with respect and is “in the ballpark” on price, the customer will buy. Surveys have shown that car buyers identify price as the third most important criteria in their decision to buy from a particular dealer.
So, should a dealer fear reduced profits by giving out prices over the internet? No more than they should by advertising a price in the newspaper or on the radio. When I sold cars back in the 80’s, we had a policy of not giving out prices over the phone. The customer had to come in if they wanted a price. This strategy never made for a warm first meeting, but we got some of them to come in. Today, if a dealer stalls, or fails to provide a quick quote when asked, the customer will move on. Contrary to dealer belief, the customer isn’t left thinking that you are concealing ‘the lowest’ price. The opposite is true however, and the customer believes that the reason for not giving a price is because it’s the highest. So, the dealer who doesn’t give out a price doesn’t even make the customer’s ‘short-list’.
Car dealers spend a tremendous amount of time and money driving people to their websites. They talk the talk at the factory meetings. They say it’s time to leverage the internet to increase sales. But deep down they long for the old days. But they can’t have it both ways. That is, the dealer wants to turn the website shopper into a walk-in shopper who can be manipulated, bullied and ‘stuffed’ into a car. They cannot, the best they can hope for is to convert the website shopper into a walk-in buyer. And the way to do it runs counter to decades of dealership culture. Instead of stonewalling and wearing the customer down, today’s dealers need to address questions promptly and recognize that customers don’t always want to build a relationship with them. Relationships will follow, but the time to ask for an exclusive relationship is not at the point of sale. You earn a relationship, you don’t ask for one on the first date.
I hope that dealers begin to take this seriously. The current internet car shopping model is broken, badly. Just try it. Whether you wind up a so-called content site, a manufacturer site, or a dealer site the exercise is the same. You click the button that says “Free Quote” and you fill out a long form. You hit ‘submit’. You wait for a reply. And 30% of the time, a reply never comes. Can you imagine BestBuy.com not giving you a price on a new camcorder? Or Amazon.com making you wait for a call to get the price of a book? It sounds absurd I know. But this is how it is in the retail car business, and very few dealers within this business are ready to change.
If car sales were going well, I could understand a bit of resistance to change. But this year automobile sales are dismal. There will no doubt be fewer dealers next year than there are this year. Domestic vehicles are worst hit. Interestingly, the domestic dealers are the most reluctant to change. I have spoken with hundreds of dealers over the years. And right now, morale is at an all time low. Competition is fierce. Profits and sales are down. And many of these dealers will ride this wave to insolvency, rather than try to change. Perhaps it’s a certain pride, or maybe there’s a code among dealers that providing transparency in pricing is the kiss of death? But I don’t think it’s either.
We’re now up to almost 50 dealers in the NY metro region and things are starting to turn. A marketing campaign aimed at the car buying public is raising awareness of the ‘Numbat and the service we offer. And now a consumer can actually visit our web portal and get up to three quotes from one or more dealers with just one-click. To the lay person, it seems so normal, but to the vast majority of car dealers it seems so strange.
I had spoken with literally hundreds of consumers and I asked them; if they were in the market for a car and knew of a website where they could search inventory in real-time, select a car, and receive an immediate purchase price, would they use it? The response was a resounding, yes, they would use it. Armed with this feedback and having ‘mystery shopped’ hundreds of dealers who failed to deliver a “Quick Quote” I figured my product would be an overnight success. I overestimated the willingness of my market to change. Wrongly assuming that car dealers would embrace the opportunity to actually reap the benefits of the ‘net, and provide a satisfying customer experience, I pushed on finding the odd dealer ready to change.
My company is called RedNumbat, the ‘Numbat is a little unassuming icon added to a dealer’s homepage that proclaims “Click me and I’ll get your price in seconds!” Customers began to click and get their prices. I spoke with them, and they were surprised and delighted to actually get an instant price without having to talk or email with the salesperson. Although many thought it was just a ‘come on’ from the dealer, they gave it a try anyway. Were the dealers right? Did customers actually prefer going to the showroom and dickering over price?
Dealers fear that they won’t make any profit if they have to post prices on the internet. They would rather do business the old way, where a guy wanders into the showroom and then worn out after negotiations, he “takes it home today”. Those days and those guys are running out. By most accounts 90% of car shoppers will access the internet prior to making a purchase. Customers are routinely better informed than the salespeople they do business with. Gone are the days when a car buyer walks in knowing little about the car, the financing, the warranty, the accessories or the trade-in value. In fact, profits are going down on the sale of a new car, and they have been for years. However, customers truly don’t expect a dealer to lose money selling a car, indeed if a dealer treats them with respect and is “in the ballpark” on price, the customer will buy. Surveys have shown that car buyers identify price as the third most important criteria in their decision to buy from a particular dealer.
So, should a dealer fear reduced profits by giving out prices over the internet? No more than they should by advertising a price in the newspaper or on the radio. When I sold cars back in the 80’s, we had a policy of not giving out prices over the phone. The customer had to come in if they wanted a price. This strategy never made for a warm first meeting, but we got some of them to come in. Today, if a dealer stalls, or fails to provide a quick quote when asked, the customer will move on. Contrary to dealer belief, the customer isn’t left thinking that you are concealing ‘the lowest’ price. The opposite is true however, and the customer believes that the reason for not giving a price is because it’s the highest. So, the dealer who doesn’t give out a price doesn’t even make the customer’s ‘short-list’.
Car dealers spend a tremendous amount of time and money driving people to their websites. They talk the talk at the factory meetings. They say it’s time to leverage the internet to increase sales. But deep down they long for the old days. But they can’t have it both ways. That is, the dealer wants to turn the website shopper into a walk-in shopper who can be manipulated, bullied and ‘stuffed’ into a car. They cannot, the best they can hope for is to convert the website shopper into a walk-in buyer. And the way to do it runs counter to decades of dealership culture. Instead of stonewalling and wearing the customer down, today’s dealers need to address questions promptly and recognize that customers don’t always want to build a relationship with them. Relationships will follow, but the time to ask for an exclusive relationship is not at the point of sale. You earn a relationship, you don’t ask for one on the first date.
I hope that dealers begin to take this seriously. The current internet car shopping model is broken, badly. Just try it. Whether you wind up a so-called content site, a manufacturer site, or a dealer site the exercise is the same. You click the button that says “Free Quote” and you fill out a long form. You hit ‘submit’. You wait for a reply. And 30% of the time, a reply never comes. Can you imagine BestBuy.com not giving you a price on a new camcorder? Or Amazon.com making you wait for a call to get the price of a book? It sounds absurd I know. But this is how it is in the retail car business, and very few dealers within this business are ready to change.
If car sales were going well, I could understand a bit of resistance to change. But this year automobile sales are dismal. There will no doubt be fewer dealers next year than there are this year. Domestic vehicles are worst hit. Interestingly, the domestic dealers are the most reluctant to change. I have spoken with hundreds of dealers over the years. And right now, morale is at an all time low. Competition is fierce. Profits and sales are down. And many of these dealers will ride this wave to insolvency, rather than try to change. Perhaps it’s a certain pride, or maybe there’s a code among dealers that providing transparency in pricing is the kiss of death? But I don’t think it’s either.
We’re now up to almost 50 dealers in the NY metro region and things are starting to turn. A marketing campaign aimed at the car buying public is raising awareness of the ‘Numbat and the service we offer. And now a consumer can actually visit our web portal and get up to three quotes from one or more dealers with just one-click. To the lay person, it seems so normal, but to the vast majority of car dealers it seems so strange.
Wednesday, September 3, 2008
RedNumbat unveils the next generation automotive website for online car shoppers, allowing for immediate price quotes on multiple vehicles with 'one-c
RedNumbat, the company that pioneered the automated quote process for automobile consumers has introduced its latest version streamlining the car shopping process and empowering the consumer. All the comparison price shopping can now be done in less than a minute from any computer!Glen Gardner, NJ (PRWEB) September 8, 2008RedNumbat, the company that developed the first automated pricing software for consumers and car dealers announced today that online car shoppers may now receive multiple quotes with just one-click! RedNumbat's proprietary software allows online car shoppers to search dealer inventory, select vehicle(s) and receive an immediate price quote on up to 5 cars, without ever having to speak with a salesperson. Joseph Antley, CEO and founder of RedNumbat says "Consumers have long complained that the current system of getting an online car quote was both frustrating and unsatisfying, and now shoppers can actually do the all of their comparison shopping without making multiple phone calls or trips to the dealerships."Using the RedNumbat search engine, found at www.rednumbat.com consumers may select up to 5 different vehicles from the same or different dealerships. And then with just one-click, receive prices that they can actually buy the car for! While there are literally hundreds of websites offering free price quotes, only RedNumbat delivers an immediate price direct to the consumer. Instead of generating 'leads' to sell to the highest bidder, RedNumbat works with the best dealers in specific regions to provide the most competitive pricing to today's car buyer. When a customer's request for price is received, there is no delay, no waiting for a salesperson to call or email. Just an email containing a great price on an actual in-stock vehicle which will be honored upon presentation to the dealer.Consumers have long complained that the current system of getting an online car quote was both frustrating and unsatisfying, and now shoppers can actually do the all of their comparison shopping without making multiple phone calls or trips to the dealerships.Mr. Antley said "We are proud to 'first to market' with this consumer-friendly product. The multiple car search, select, and price model has been in development for some time and offers an alternative to traditional automotive websites that purport to offer a free price quote". He added that the dealers in the RedNumbat network are those that value their customer's time, and believe that transparency in pricing is the future in the car business. Progressive dealers know that consumers don't have the time or appetite to drive to a dealership, haggle over a price and then repeat-sometimes several times. The RedNumbat pricing tool can also be accessed from a dealer's own website and automates the 'request for quote' process, allowing the dealership to reach and satisfy more of their online visitors. RedNumbat is bringing on new dealers every day in specific markets to support demand and provide a comprehensive selection of vehicles.
Thursday, August 21, 2008
Green things are happening in 'Numbatland!
RedNumbat is preparing to launch our newest search-the all new, industry first GreenNumbat! The GreenNumbat will allow online car shoppers to narrow their search using a variety of parameters including MPG (miles per gallon), Annual/Monthly fuel cost, or EPA SmartWay designation! So cool, for sure.
We will be releasing the GreenNumbat by month end, and invite you to stop by www.rednumbat.com and check it out!
Save gas, get a green car. Save time, get RedNumbat!
We will be releasing the GreenNumbat by month end, and invite you to stop by www.rednumbat.com and check it out!
Save gas, get a green car. Save time, get RedNumbat!
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