43
Effective Online Automotive Sales: Ralph Paglia of Courtesy Chevrolet Interview Part 2 January 2007 Effective Online Auotmotive Sales VOLUME 6 ISSUE 1 HOME CONTENTS Interview with Automotive Sales Expert Paul Miller Ralph Paglia of  Courtesy Chevrolet Interview Part 2 The Future of Dealer  Websites Ask Gilbert: Should I Invest in a Spanish Language Web Site? Start 2007 Sales in High Gear! New Developments for Third-party Sites The Top Ten for Q4  2006 Internet Training and Industry Reminders Dealix Dealer Newsletter Best of  2006 View a Movie to See How Dealix Can Help You Sell More Cars SUBSCRIBE Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets, Common Internet Sales Mistakes & More We’re bridging 2006 and 2007 by continuing our chat with Ralph Paglia, CRM/e-Business Director at Phoenix’s Courtesy Chevrolet. Courtesy is consistently one of the top Chevrolet dealers in the country, and Ralph’s immense success has made him a nationally known expert in online automotive sales. In this second installment, Ralph talks about advertising budgets, common Internet sales mistakes, “slurping,” and the dealership of the future.   Deal i x Deal er Ne w sl et ter  (DDN): Ralph, I can imagine that smaller dealerships would do  just about anything to have the advertising budget you have at Courtesy. What advice would offer to help them make the most of their more limited means?  Ralph Paglia (RP ): The most effective marketing strategies will usually scale up or down as budgets grow or shrink, and that’s true of our approach at Courtesy Chevrolet. The first thing we do is to buy every available new car Internet lead that we can get from reputable lead providers such as Dealix. There’s simply no better value than being able to engage with a “hand-raiser” for around $20. The next thing is to buy used car leads based on our inventory. The principle here is exactly the same.  After taking care of new car and used car leads, I would use any remaining Internet money to advertise the dealership’s website. We place a lot of graphical ads on major automotive websites and get a lot of exposure and a lot of traffic. But search engine marketing gives dealers a lot of flexibility in exactly how they advertise and how much they spend. The critical thing is to link your advertising directly into your inventory.  DDN: In a recent story about you in Ward’s, you mentioned a growing practice you called “slurping.” It seems that ISMs sometimes follow up with Internet customers to see why they didn’t show up for an appointment, and the customer will say, “I did, and I bought a car.” It turns out that floor salespeople are stealing these prospects and making the sale. What do you do to prevent this?  R P : This has always been a problem, and it’s more of a political and organizational issue than a technical one. We address it in a number of ways. Our Internet sales specialists are trained to insist that the customer call the ISS’s cell phone when they’re a block or two away from the dealership. We also have two http://news.dealix.com/e_ article000726616.cfm?x=b8LNmL3,b4bG84ht (1 of 3) [1/11/2007 9:31:43 AM]

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Dealix Corporation Auto Dealers Become a Member Dealer

me raquo Products amp Services raquo Auto Dealers raquo Become a Member DealerBecome a Dealix Member Dealer

See how our lead process works

Why should auto dealers use the Intern

sell more cars (PDF)

What our customers say

2 0 0 6 ndash 1 P ro v i d e r t o W a rd rsquos

D e a le r 1 0 0 a n d A u t o D e a l e r

M o n t h l y rsquos T o p 1 0 0 I n t e r n e t

R e t a i l e r s

2 0 0 5 - H ig h e s t i n O v e r a ll De a

S a t i s f a c t io n a m o n g P r im a r y N I n d e p e n d e n t S e r v ic e s [View

Results]

- J D P o w e r a n d A s s o c i a t e s

2 0 0 5 ndash 1 P ro v i d e r t o W a rd rsquos

D e a le r 1 0 0 a n d A u t o D e a l e r

M o n t h l y rsquos T o p 1 0 0 I n t e r n e t

R e t a i l e r s

2 0 0 3 - H ig h e s t i n B u s in e s s

G e n e r a t io n L e a d Q u a l it y a n d

L e a d Q u a n t it y

- J D P o w e r a n d A s s o c i a t e s

We introduce thousands of serious vehicle buyers to our dealers every day

Find out how many quality leads are available in your sales territory and how wecan help you expand your advertising opportunities Please fill out this form and aDealix regional sales manager will give you a call Or call us directly at (800) 213 -0439

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Dealix -Home of

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Dealix Corporation Auto Dealers Become a Member Dealer

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Effective Online Automotive Sales

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

NSIDE

nterview with

utomotive Sales Expert

aul Miller

alph Paglia of Courtesy

hevrolet Interview Part

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in High

ear

ew Developments for

hird-party Sites

NEWS

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

Paul Miller began his career inthe automotive industrycleaning cars at an Illinoisdealership at age 16 Today as

a consultant he leverages his15 years of experience as asalesperson Internet managerBDC manager finance managerand sales manager to helpdealerships around the countryWe spoke with him recentlyabout key topics includingselling domestic brandsworking in rural marketsand building trust and cooperation between the floor and theInternet department

[FULL STORY]

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

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Effective Online Automotive Sales

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of 2006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

ubscribe to the Dealixealer Newsletter Enterour email address in theox below and well addou to the list

Add Remove

RCHIVE

ffective Online

utomotive Sales

ecember 2006

ffective Online

utomotive Sales

ovember 2006

ffective Online

utomotive Sales

October 2006

ffective Online

utomotive Sales

eptember 2006

MORE]

Visit us at

wwwdealixcom to see how dealersrank the new car

lead providersand to get more

success strategiesfrom experts in

online auto sales

This month we continued our chat wRalph Paglia CRMe-business directoPhoenixrsquos Courtesy Chevrolet Courteis consistently one of the top Chevroldealers in the country and Ralphrsquosimmense success has made him anationally known expert in onlineautomotive sales In this secondinstallment Ralph talks about

advertising budgets common Internesales mistakes ldquoslurpingrdquo and thedealership of the future

[FULL STORY]

The Future of Dealer Websites Key Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive InternetRoundtable held in Las Vegas last November a panel includThe Cobalt Grouprsquos vice president of applications and serviceKevin Root Barry Brodsky of Dealer Web Tools and JasonEzell of Dealerskins discussed the Future of DealershipWebsites This panel of online automotive veterans gave aglimpse into the trends that are likely to grow significantly inthe next few years

[FULL STORY]

Ask Gilbert Should I Invest in a Spanish Language

Web Site When to Meet the Demands of this Growing Marketby Gilbert Chavez

Gilbert Chavez is Internet director for the Phil Longdealerships of Colorado the largest privately-owned dealergroup in that state Gilbert frequently shares his responses tquestions he gets from other Internet dealers on how to runbetter Internet departments and general best practices withthe Dealix Dealer Newsletter Heres the latest

[FULL STORY]

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Effective Online Automotive Sales

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with thatcomes new sales opportunitieTo start 2007 off right makesure you are connecting with

many car buyers on the Interas possible Dealix brings youthe highest quality leads frompremium sites like Yahoo AutoEdmunds Kelly Blue Book anmore ndash directly to your in-boxClick here to see a short mov

on Dealixs award-winning NeCar Leads Program and learn

more about the provider thatdealers rated Highest in Overa

Dealer Satisfaction in the 2006 JD Power and Associates

Dealer Satisfaction with Online Buying Services StudySMView the movie

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

by Cliff Banks

Someone mentioned to me that very little new information came out of apanel discussion I recently moderated for JD Power and Associates held inLas Vegas After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differ According to thepanel higher Internet lead costs for dealers and a system allowing customto rate dealers are just a couple of new developments dealers may see by2008

This article was originally published in the Dec 20 2006 issue of Wards Dealer Business

[FULL STORY]

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Effective Online Automotive Sales

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

To kick off 2007 wersquore looking backat the fourth quarter of 2006 to

see which cars generated the mostleads and which had the highestclose rates BMW and Forddemonstrate that its not justabout Toyota and Honda

[FULL STORY]

Internet Training and Industry Reminders

Upcoming Events

Cobalts Breakfast of Champions and the 2007 NADA ExpoUpcoming industry events you wont want to miss

Click Full Story for details

[FULL STORY]

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

In 2006 thanks to many great contributors and feedback froour dealers we covered the hottest topics in onlineautomotive to help dealers sell more vehicles more efficientlHere is a list of our most popular articles of 2006 - worthy oreview to help you start 2007 strong

[FULL STORY]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rightseservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the De

D e a le r N e w s l e

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

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full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

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car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93203 AM]

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Page 2: Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht (2 of 3) [1112007 93143 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 343

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht (3 of 3) [1112007 93143 AM]

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Dealix Corporation Auto Dealers Become a Member Dealer

me raquo Products amp Services raquo Auto Dealers raquo Become a Member DealerBecome a Dealix Member Dealer

See how our lead process works

Why should auto dealers use the Intern

sell more cars (PDF)

What our customers say

2 0 0 6 ndash 1 P ro v i d e r t o W a rd rsquos

D e a le r 1 0 0 a n d A u t o D e a l e r

M o n t h l y rsquos T o p 1 0 0 I n t e r n e t

R e t a i l e r s

2 0 0 5 - H ig h e s t i n O v e r a ll De a

S a t i s f a c t io n a m o n g P r im a r y N I n d e p e n d e n t S e r v ic e s [View

Results]

- J D P o w e r a n d A s s o c i a t e s

2 0 0 5 ndash 1 P ro v i d e r t o W a rd rsquos

D e a le r 1 0 0 a n d A u t o D e a l e r

M o n t h l y rsquos T o p 1 0 0 I n t e r n e t

R e t a i l e r s

2 0 0 3 - H ig h e s t i n B u s in e s s

G e n e r a t io n L e a d Q u a l it y a n d

L e a d Q u a n t it y

- J D P o w e r a n d A s s o c i a t e s

We introduce thousands of serious vehicle buyers to our dealers every day

Find out how many quality leads are available in your sales territory and how wecan help you expand your advertising opportunities Please fill out this form and aDealix regional sales manager will give you a call Or call us directly at (800) 213 -0439

Your Name

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Notes

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-- Please Select --

882019 Dealix Paglia Interview Part 2 of 2

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Dealix Corporation Auto Dealers Become a Member Dealer

Top

raquo

raquo

raquo

raquo

raquo

Home

Products amp Services

About Dealix

Contact Information

Dealix Dealer Newsletter

copy2004 Dealix Corporation All Rights Reserved Copyright amp Disclaimers New Car Buying Service Automotive Affiliate Programs Used Cars

ttpdealixcomDealerContactaspxckSRC=emailnewsletterjan07 (2 of 2) [1112007 93146 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

NSIDE

nterview with

utomotive Sales Expert

aul Miller

alph Paglia of Courtesy

hevrolet Interview Part

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in High

ear

ew Developments for

hird-party Sites

NEWS

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

Paul Miller began his career inthe automotive industrycleaning cars at an Illinoisdealership at age 16 Today as

a consultant he leverages his15 years of experience as asalesperson Internet managerBDC manager finance managerand sales manager to helpdealerships around the countryWe spoke with him recentlyabout key topics includingselling domestic brandsworking in rural marketsand building trust and cooperation between the floor and theInternet department

[FULL STORY]

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

ttpnewsdealixcomindex000158788cfmx=b8LNmL3b4bG84htw (1 of 4) [1112007 93148 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 743

Effective Online Automotive Sales

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of 2006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

ubscribe to the Dealixealer Newsletter Enterour email address in theox below and well addou to the list

Add Remove

RCHIVE

ffective Online

utomotive Sales

ecember 2006

ffective Online

utomotive Sales

ovember 2006

ffective Online

utomotive Sales

October 2006

ffective Online

utomotive Sales

eptember 2006

MORE]

Visit us at

wwwdealixcom to see how dealersrank the new car

lead providersand to get more

success strategiesfrom experts in

online auto sales

This month we continued our chat wRalph Paglia CRMe-business directoPhoenixrsquos Courtesy Chevrolet Courteis consistently one of the top Chevroldealers in the country and Ralphrsquosimmense success has made him anationally known expert in onlineautomotive sales In this secondinstallment Ralph talks about

advertising budgets common Internesales mistakes ldquoslurpingrdquo and thedealership of the future

[FULL STORY]

The Future of Dealer Websites Key Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive InternetRoundtable held in Las Vegas last November a panel includThe Cobalt Grouprsquos vice president of applications and serviceKevin Root Barry Brodsky of Dealer Web Tools and JasonEzell of Dealerskins discussed the Future of DealershipWebsites This panel of online automotive veterans gave aglimpse into the trends that are likely to grow significantly inthe next few years

[FULL STORY]

Ask Gilbert Should I Invest in a Spanish Language

Web Site When to Meet the Demands of this Growing Marketby Gilbert Chavez

Gilbert Chavez is Internet director for the Phil Longdealerships of Colorado the largest privately-owned dealergroup in that state Gilbert frequently shares his responses tquestions he gets from other Internet dealers on how to runbetter Internet departments and general best practices withthe Dealix Dealer Newsletter Heres the latest

[FULL STORY]

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Effective Online Automotive Sales

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with thatcomes new sales opportunitieTo start 2007 off right makesure you are connecting with

many car buyers on the Interas possible Dealix brings youthe highest quality leads frompremium sites like Yahoo AutoEdmunds Kelly Blue Book anmore ndash directly to your in-boxClick here to see a short mov

on Dealixs award-winning NeCar Leads Program and learn

more about the provider thatdealers rated Highest in Overa

Dealer Satisfaction in the 2006 JD Power and Associates

Dealer Satisfaction with Online Buying Services StudySMView the movie

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

by Cliff Banks

Someone mentioned to me that very little new information came out of apanel discussion I recently moderated for JD Power and Associates held inLas Vegas After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differ According to thepanel higher Internet lead costs for dealers and a system allowing customto rate dealers are just a couple of new developments dealers may see by2008

This article was originally published in the Dec 20 2006 issue of Wards Dealer Business

[FULL STORY]

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Effective Online Automotive Sales

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

To kick off 2007 wersquore looking backat the fourth quarter of 2006 to

see which cars generated the mostleads and which had the highestclose rates BMW and Forddemonstrate that its not justabout Toyota and Honda

[FULL STORY]

Internet Training and Industry Reminders

Upcoming Events

Cobalts Breakfast of Champions and the 2007 NADA ExpoUpcoming industry events you wont want to miss

Click Full Story for details

[FULL STORY]

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

In 2006 thanks to many great contributors and feedback froour dealers we covered the hottest topics in onlineautomotive to help dealers sell more vehicles more efficientlHere is a list of our most popular articles of 2006 - worthy oreview to help you start 2007 strong

[FULL STORY]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rightseservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the De

D e a le r N e w s l e

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Dealix Corporation Auto Dealers Become a Member Dealer

me raquo Products amp Services raquo Auto Dealers raquo Become a Member DealerBecome a Dealix Member Dealer

See how our lead process works

Why should auto dealers use the Intern

sell more cars (PDF)

What our customers say

2 0 0 6 ndash 1 P ro v i d e r t o W a rd rsquos

D e a le r 1 0 0 a n d A u t o D e a l e r

M o n t h l y rsquos T o p 1 0 0 I n t e r n e t

R e t a i l e r s

2 0 0 5 - H ig h e s t i n O v e r a ll De a

S a t i s f a c t io n a m o n g P r im a r y N I n d e p e n d e n t S e r v ic e s [View

Results]

- J D P o w e r a n d A s s o c i a t e s

2 0 0 5 ndash 1 P ro v i d e r t o W a rd rsquos

D e a le r 1 0 0 a n d A u t o D e a l e r

M o n t h l y rsquos T o p 1 0 0 I n t e r n e t

R e t a i l e r s

2 0 0 3 - H ig h e s t i n B u s in e s s

G e n e r a t io n L e a d Q u a l it y a n d

L e a d Q u a n t it y

- J D P o w e r a n d A s s o c i a t e s

We introduce thousands of serious vehicle buyers to our dealers every day

Find out how many quality leads are available in your sales territory and how wecan help you expand your advertising opportunities Please fill out this form and aDealix regional sales manager will give you a call Or call us directly at (800) 213 -0439

Your Name

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Notes

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Dealix -Home of

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interested in New Car Leads

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Dealix Corporation Auto Dealers Become a Member Dealer

Top

raquo

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Home

Products amp Services

About Dealix

Contact Information

Dealix Dealer Newsletter

copy2004 Dealix Corporation All Rights Reserved Copyright amp Disclaimers New Car Buying Service Automotive Affiliate Programs Used Cars

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

NSIDE

nterview with

utomotive Sales Expert

aul Miller

alph Paglia of Courtesy

hevrolet Interview Part

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in High

ear

ew Developments for

hird-party Sites

NEWS

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

Paul Miller began his career inthe automotive industrycleaning cars at an Illinoisdealership at age 16 Today as

a consultant he leverages his15 years of experience as asalesperson Internet managerBDC manager finance managerand sales manager to helpdealerships around the countryWe spoke with him recentlyabout key topics includingselling domestic brandsworking in rural marketsand building trust and cooperation between the floor and theInternet department

[FULL STORY]

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

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Effective Online Automotive Sales

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of 2006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

ubscribe to the Dealixealer Newsletter Enterour email address in theox below and well addou to the list

Add Remove

RCHIVE

ffective Online

utomotive Sales

ecember 2006

ffective Online

utomotive Sales

ovember 2006

ffective Online

utomotive Sales

October 2006

ffective Online

utomotive Sales

eptember 2006

MORE]

Visit us at

wwwdealixcom to see how dealersrank the new car

lead providersand to get more

success strategiesfrom experts in

online auto sales

This month we continued our chat wRalph Paglia CRMe-business directoPhoenixrsquos Courtesy Chevrolet Courteis consistently one of the top Chevroldealers in the country and Ralphrsquosimmense success has made him anationally known expert in onlineautomotive sales In this secondinstallment Ralph talks about

advertising budgets common Internesales mistakes ldquoslurpingrdquo and thedealership of the future

[FULL STORY]

The Future of Dealer Websites Key Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive InternetRoundtable held in Las Vegas last November a panel includThe Cobalt Grouprsquos vice president of applications and serviceKevin Root Barry Brodsky of Dealer Web Tools and JasonEzell of Dealerskins discussed the Future of DealershipWebsites This panel of online automotive veterans gave aglimpse into the trends that are likely to grow significantly inthe next few years

[FULL STORY]

Ask Gilbert Should I Invest in a Spanish Language

Web Site When to Meet the Demands of this Growing Marketby Gilbert Chavez

Gilbert Chavez is Internet director for the Phil Longdealerships of Colorado the largest privately-owned dealergroup in that state Gilbert frequently shares his responses tquestions he gets from other Internet dealers on how to runbetter Internet departments and general best practices withthe Dealix Dealer Newsletter Heres the latest

[FULL STORY]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with thatcomes new sales opportunitieTo start 2007 off right makesure you are connecting with

many car buyers on the Interas possible Dealix brings youthe highest quality leads frompremium sites like Yahoo AutoEdmunds Kelly Blue Book anmore ndash directly to your in-boxClick here to see a short mov

on Dealixs award-winning NeCar Leads Program and learn

more about the provider thatdealers rated Highest in Overa

Dealer Satisfaction in the 2006 JD Power and Associates

Dealer Satisfaction with Online Buying Services StudySMView the movie

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

by Cliff Banks

Someone mentioned to me that very little new information came out of apanel discussion I recently moderated for JD Power and Associates held inLas Vegas After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differ According to thepanel higher Internet lead costs for dealers and a system allowing customto rate dealers are just a couple of new developments dealers may see by2008

This article was originally published in the Dec 20 2006 issue of Wards Dealer Business

[FULL STORY]

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Effective Online Automotive Sales

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

To kick off 2007 wersquore looking backat the fourth quarter of 2006 to

see which cars generated the mostleads and which had the highestclose rates BMW and Forddemonstrate that its not justabout Toyota and Honda

[FULL STORY]

Internet Training and Industry Reminders

Upcoming Events

Cobalts Breakfast of Champions and the 2007 NADA ExpoUpcoming industry events you wont want to miss

Click Full Story for details

[FULL STORY]

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

In 2006 thanks to many great contributors and feedback froour dealers we covered the hottest topics in onlineautomotive to help dealers sell more vehicles more efficientlHere is a list of our most popular articles of 2006 - worthy oreview to help you start 2007 strong

[FULL STORY]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rightseservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the De

D e a le r N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (2 of 6) [1112007 93151 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Dealix Corporation Auto Dealers Become a Member Dealer

me raquo Products amp Services raquo Auto Dealers raquo Become a Member DealerBecome a Dealix Member Dealer

See how our lead process works

Why should auto dealers use the Intern

sell more cars (PDF)

What our customers say

2 0 0 6 ndash 1 P ro v i d e r t o W a rd rsquos

D e a le r 1 0 0 a n d A u t o D e a l e r

M o n t h l y rsquos T o p 1 0 0 I n t e r n e t

R e t a i l e r s

2 0 0 5 - H ig h e s t i n O v e r a ll De a

S a t i s f a c t io n a m o n g P r im a r y N I n d e p e n d e n t S e r v ic e s [View

Results]

- J D P o w e r a n d A s s o c i a t e s

2 0 0 5 ndash 1 P ro v i d e r t o W a rd rsquos

D e a le r 1 0 0 a n d A u t o D e a l e r

M o n t h l y rsquos T o p 1 0 0 I n t e r n e t

R e t a i l e r s

2 0 0 3 - H ig h e s t i n B u s in e s s

G e n e r a t io n L e a d Q u a l it y a n d

L e a d Q u a n t it y

- J D P o w e r a n d A s s o c i a t e s

We introduce thousands of serious vehicle buyers to our dealers every day

Find out how many quality leads are available in your sales territory and how wecan help you expand your advertising opportunities Please fill out this form and aDealix regional sales manager will give you a call Or call us directly at (800) 213 -0439

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Notes

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Dealix -Home of

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-- Please Select --

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Dealix Corporation Auto Dealers Become a Member Dealer

Top

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copy2004 Dealix Corporation All Rights Reserved Copyright amp Disclaimers New Car Buying Service Automotive Affiliate Programs Used Cars

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Submit

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

NSIDE

nterview with

utomotive Sales Expert

aul Miller

alph Paglia of Courtesy

hevrolet Interview Part

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in High

ear

ew Developments for

hird-party Sites

NEWS

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

Paul Miller began his career inthe automotive industrycleaning cars at an Illinoisdealership at age 16 Today as

a consultant he leverages his15 years of experience as asalesperson Internet managerBDC manager finance managerand sales manager to helpdealerships around the countryWe spoke with him recentlyabout key topics includingselling domestic brandsworking in rural marketsand building trust and cooperation between the floor and theInternet department

[FULL STORY]

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

ttpnewsdealixcomindex000158788cfmx=b8LNmL3b4bG84htw (1 of 4) [1112007 93148 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of 2006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

ubscribe to the Dealixealer Newsletter Enterour email address in theox below and well addou to the list

Add Remove

RCHIVE

ffective Online

utomotive Sales

ecember 2006

ffective Online

utomotive Sales

ovember 2006

ffective Online

utomotive Sales

October 2006

ffective Online

utomotive Sales

eptember 2006

MORE]

Visit us at

wwwdealixcom to see how dealersrank the new car

lead providersand to get more

success strategiesfrom experts in

online auto sales

This month we continued our chat wRalph Paglia CRMe-business directoPhoenixrsquos Courtesy Chevrolet Courteis consistently one of the top Chevroldealers in the country and Ralphrsquosimmense success has made him anationally known expert in onlineautomotive sales In this secondinstallment Ralph talks about

advertising budgets common Internesales mistakes ldquoslurpingrdquo and thedealership of the future

[FULL STORY]

The Future of Dealer Websites Key Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive InternetRoundtable held in Las Vegas last November a panel includThe Cobalt Grouprsquos vice president of applications and serviceKevin Root Barry Brodsky of Dealer Web Tools and JasonEzell of Dealerskins discussed the Future of DealershipWebsites This panel of online automotive veterans gave aglimpse into the trends that are likely to grow significantly inthe next few years

[FULL STORY]

Ask Gilbert Should I Invest in a Spanish Language

Web Site When to Meet the Demands of this Growing Marketby Gilbert Chavez

Gilbert Chavez is Internet director for the Phil Longdealerships of Colorado the largest privately-owned dealergroup in that state Gilbert frequently shares his responses tquestions he gets from other Internet dealers on how to runbetter Internet departments and general best practices withthe Dealix Dealer Newsletter Heres the latest

[FULL STORY]

ttpnewsdealixcomindex000158788cfmx=b8LNmL3b4bG84htw (2 of 4) [1112007 93148 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with thatcomes new sales opportunitieTo start 2007 off right makesure you are connecting with

many car buyers on the Interas possible Dealix brings youthe highest quality leads frompremium sites like Yahoo AutoEdmunds Kelly Blue Book anmore ndash directly to your in-boxClick here to see a short mov

on Dealixs award-winning NeCar Leads Program and learn

more about the provider thatdealers rated Highest in Overa

Dealer Satisfaction in the 2006 JD Power and Associates

Dealer Satisfaction with Online Buying Services StudySMView the movie

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

by Cliff Banks

Someone mentioned to me that very little new information came out of apanel discussion I recently moderated for JD Power and Associates held inLas Vegas After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differ According to thepanel higher Internet lead costs for dealers and a system allowing customto rate dealers are just a couple of new developments dealers may see by2008

This article was originally published in the Dec 20 2006 issue of Wards Dealer Business

[FULL STORY]

ttpnewsdealixcomindex000158788cfmx=b8LNmL3b4bG84htw (3 of 4) [1112007 93148 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

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

To kick off 2007 wersquore looking backat the fourth quarter of 2006 to

see which cars generated the mostleads and which had the highestclose rates BMW and Forddemonstrate that its not justabout Toyota and Honda

[FULL STORY]

Internet Training and Industry Reminders

Upcoming Events

Cobalts Breakfast of Champions and the 2007 NADA ExpoUpcoming industry events you wont want to miss

Click Full Story for details

[FULL STORY]

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

In 2006 thanks to many great contributors and feedback froour dealers we covered the hottest topics in onlineautomotive to help dealers sell more vehicles more efficientlHere is a list of our most popular articles of 2006 - worthy oreview to help you start 2007 strong

[FULL STORY]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rightseservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the De

D e a le r N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1043

Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (1 of 6) [1112007 93151 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1143

Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Effective Online Automotive Sales

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

NSIDE

nterview with

utomotive Sales Expert

aul Miller

alph Paglia of Courtesy

hevrolet Interview Part

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in High

ear

ew Developments for

hird-party Sites

NEWS

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

Paul Miller began his career inthe automotive industrycleaning cars at an Illinoisdealership at age 16 Today as

a consultant he leverages his15 years of experience as asalesperson Internet managerBDC manager finance managerand sales manager to helpdealerships around the countryWe spoke with him recentlyabout key topics includingselling domestic brandsworking in rural marketsand building trust and cooperation between the floor and theInternet department

[FULL STORY]

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

ttpnewsdealixcomindex000158788cfmx=b8LNmL3b4bG84htw (1 of 4) [1112007 93148 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of 2006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

ubscribe to the Dealixealer Newsletter Enterour email address in theox below and well addou to the list

Add Remove

RCHIVE

ffective Online

utomotive Sales

ecember 2006

ffective Online

utomotive Sales

ovember 2006

ffective Online

utomotive Sales

October 2006

ffective Online

utomotive Sales

eptember 2006

MORE]

Visit us at

wwwdealixcom to see how dealersrank the new car

lead providersand to get more

success strategiesfrom experts in

online auto sales

This month we continued our chat wRalph Paglia CRMe-business directoPhoenixrsquos Courtesy Chevrolet Courteis consistently one of the top Chevroldealers in the country and Ralphrsquosimmense success has made him anationally known expert in onlineautomotive sales In this secondinstallment Ralph talks about

advertising budgets common Internesales mistakes ldquoslurpingrdquo and thedealership of the future

[FULL STORY]

The Future of Dealer Websites Key Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive InternetRoundtable held in Las Vegas last November a panel includThe Cobalt Grouprsquos vice president of applications and serviceKevin Root Barry Brodsky of Dealer Web Tools and JasonEzell of Dealerskins discussed the Future of DealershipWebsites This panel of online automotive veterans gave aglimpse into the trends that are likely to grow significantly inthe next few years

[FULL STORY]

Ask Gilbert Should I Invest in a Spanish Language

Web Site When to Meet the Demands of this Growing Marketby Gilbert Chavez

Gilbert Chavez is Internet director for the Phil Longdealerships of Colorado the largest privately-owned dealergroup in that state Gilbert frequently shares his responses tquestions he gets from other Internet dealers on how to runbetter Internet departments and general best practices withthe Dealix Dealer Newsletter Heres the latest

[FULL STORY]

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Effective Online Automotive Sales

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with thatcomes new sales opportunitieTo start 2007 off right makesure you are connecting with

many car buyers on the Interas possible Dealix brings youthe highest quality leads frompremium sites like Yahoo AutoEdmunds Kelly Blue Book anmore ndash directly to your in-boxClick here to see a short mov

on Dealixs award-winning NeCar Leads Program and learn

more about the provider thatdealers rated Highest in Overa

Dealer Satisfaction in the 2006 JD Power and Associates

Dealer Satisfaction with Online Buying Services StudySMView the movie

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

by Cliff Banks

Someone mentioned to me that very little new information came out of apanel discussion I recently moderated for JD Power and Associates held inLas Vegas After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differ According to thepanel higher Internet lead costs for dealers and a system allowing customto rate dealers are just a couple of new developments dealers may see by2008

This article was originally published in the Dec 20 2006 issue of Wards Dealer Business

[FULL STORY]

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Effective Online Automotive Sales

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

To kick off 2007 wersquore looking backat the fourth quarter of 2006 to

see which cars generated the mostleads and which had the highestclose rates BMW and Forddemonstrate that its not justabout Toyota and Honda

[FULL STORY]

Internet Training and Industry Reminders

Upcoming Events

Cobalts Breakfast of Champions and the 2007 NADA ExpoUpcoming industry events you wont want to miss

Click Full Story for details

[FULL STORY]

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

In 2006 thanks to many great contributors and feedback froour dealers we covered the hottest topics in onlineautomotive to help dealers sell more vehicles more efficientlHere is a list of our most popular articles of 2006 - worthy oreview to help you start 2007 strong

[FULL STORY]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rightseservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the De

D e a le r N e w s l e

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 6: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

NSIDE

nterview with

utomotive Sales Expert

aul Miller

alph Paglia of Courtesy

hevrolet Interview Part

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in High

ear

ew Developments for

hird-party Sites

NEWS

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

Paul Miller began his career inthe automotive industrycleaning cars at an Illinoisdealership at age 16 Today as

a consultant he leverages his15 years of experience as asalesperson Internet managerBDC manager finance managerand sales manager to helpdealerships around the countryWe spoke with him recentlyabout key topics includingselling domestic brandsworking in rural marketsand building trust and cooperation between the floor and theInternet department

[FULL STORY]

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of 2006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

ubscribe to the Dealixealer Newsletter Enterour email address in theox below and well addou to the list

Add Remove

RCHIVE

ffective Online

utomotive Sales

ecember 2006

ffective Online

utomotive Sales

ovember 2006

ffective Online

utomotive Sales

October 2006

ffective Online

utomotive Sales

eptember 2006

MORE]

Visit us at

wwwdealixcom to see how dealersrank the new car

lead providersand to get more

success strategiesfrom experts in

online auto sales

This month we continued our chat wRalph Paglia CRMe-business directoPhoenixrsquos Courtesy Chevrolet Courteis consistently one of the top Chevroldealers in the country and Ralphrsquosimmense success has made him anationally known expert in onlineautomotive sales In this secondinstallment Ralph talks about

advertising budgets common Internesales mistakes ldquoslurpingrdquo and thedealership of the future

[FULL STORY]

The Future of Dealer Websites Key Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive InternetRoundtable held in Las Vegas last November a panel includThe Cobalt Grouprsquos vice president of applications and serviceKevin Root Barry Brodsky of Dealer Web Tools and JasonEzell of Dealerskins discussed the Future of DealershipWebsites This panel of online automotive veterans gave aglimpse into the trends that are likely to grow significantly inthe next few years

[FULL STORY]

Ask Gilbert Should I Invest in a Spanish Language

Web Site When to Meet the Demands of this Growing Marketby Gilbert Chavez

Gilbert Chavez is Internet director for the Phil Longdealerships of Colorado the largest privately-owned dealergroup in that state Gilbert frequently shares his responses tquestions he gets from other Internet dealers on how to runbetter Internet departments and general best practices withthe Dealix Dealer Newsletter Heres the latest

[FULL STORY]

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Effective Online Automotive Sales

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with thatcomes new sales opportunitieTo start 2007 off right makesure you are connecting with

many car buyers on the Interas possible Dealix brings youthe highest quality leads frompremium sites like Yahoo AutoEdmunds Kelly Blue Book anmore ndash directly to your in-boxClick here to see a short mov

on Dealixs award-winning NeCar Leads Program and learn

more about the provider thatdealers rated Highest in Overa

Dealer Satisfaction in the 2006 JD Power and Associates

Dealer Satisfaction with Online Buying Services StudySMView the movie

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

by Cliff Banks

Someone mentioned to me that very little new information came out of apanel discussion I recently moderated for JD Power and Associates held inLas Vegas After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differ According to thepanel higher Internet lead costs for dealers and a system allowing customto rate dealers are just a couple of new developments dealers may see by2008

This article was originally published in the Dec 20 2006 issue of Wards Dealer Business

[FULL STORY]

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Effective Online Automotive Sales

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

To kick off 2007 wersquore looking backat the fourth quarter of 2006 to

see which cars generated the mostleads and which had the highestclose rates BMW and Forddemonstrate that its not justabout Toyota and Honda

[FULL STORY]

Internet Training and Industry Reminders

Upcoming Events

Cobalts Breakfast of Champions and the 2007 NADA ExpoUpcoming industry events you wont want to miss

Click Full Story for details

[FULL STORY]

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

In 2006 thanks to many great contributors and feedback froour dealers we covered the hottest topics in onlineautomotive to help dealers sell more vehicles more efficientlHere is a list of our most popular articles of 2006 - worthy oreview to help you start 2007 strong

[FULL STORY]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rightseservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the De

D e a le r N e w s l e

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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882019 Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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Submit

882019 Dealix Paglia Interview Part 2 of 2

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

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car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 7: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of 2006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

ubscribe to the Dealixealer Newsletter Enterour email address in theox below and well addou to the list

Add Remove

RCHIVE

ffective Online

utomotive Sales

ecember 2006

ffective Online

utomotive Sales

ovember 2006

ffective Online

utomotive Sales

October 2006

ffective Online

utomotive Sales

eptember 2006

MORE]

Visit us at

wwwdealixcom to see how dealersrank the new car

lead providersand to get more

success strategiesfrom experts in

online auto sales

This month we continued our chat wRalph Paglia CRMe-business directoPhoenixrsquos Courtesy Chevrolet Courteis consistently one of the top Chevroldealers in the country and Ralphrsquosimmense success has made him anationally known expert in onlineautomotive sales In this secondinstallment Ralph talks about

advertising budgets common Internesales mistakes ldquoslurpingrdquo and thedealership of the future

[FULL STORY]

The Future of Dealer Websites Key Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive InternetRoundtable held in Las Vegas last November a panel includThe Cobalt Grouprsquos vice president of applications and serviceKevin Root Barry Brodsky of Dealer Web Tools and JasonEzell of Dealerskins discussed the Future of DealershipWebsites This panel of online automotive veterans gave aglimpse into the trends that are likely to grow significantly inthe next few years

[FULL STORY]

Ask Gilbert Should I Invest in a Spanish Language

Web Site When to Meet the Demands of this Growing Marketby Gilbert Chavez

Gilbert Chavez is Internet director for the Phil Longdealerships of Colorado the largest privately-owned dealergroup in that state Gilbert frequently shares his responses tquestions he gets from other Internet dealers on how to runbetter Internet departments and general best practices withthe Dealix Dealer Newsletter Heres the latest

[FULL STORY]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with thatcomes new sales opportunitieTo start 2007 off right makesure you are connecting with

many car buyers on the Interas possible Dealix brings youthe highest quality leads frompremium sites like Yahoo AutoEdmunds Kelly Blue Book anmore ndash directly to your in-boxClick here to see a short mov

on Dealixs award-winning NeCar Leads Program and learn

more about the provider thatdealers rated Highest in Overa

Dealer Satisfaction in the 2006 JD Power and Associates

Dealer Satisfaction with Online Buying Services StudySMView the movie

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

by Cliff Banks

Someone mentioned to me that very little new information came out of apanel discussion I recently moderated for JD Power and Associates held inLas Vegas After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differ According to thepanel higher Internet lead costs for dealers and a system allowing customto rate dealers are just a couple of new developments dealers may see by2008

This article was originally published in the Dec 20 2006 issue of Wards Dealer Business

[FULL STORY]

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Effective Online Automotive Sales

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

To kick off 2007 wersquore looking backat the fourth quarter of 2006 to

see which cars generated the mostleads and which had the highestclose rates BMW and Forddemonstrate that its not justabout Toyota and Honda

[FULL STORY]

Internet Training and Industry Reminders

Upcoming Events

Cobalts Breakfast of Champions and the 2007 NADA ExpoUpcoming industry events you wont want to miss

Click Full Story for details

[FULL STORY]

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

In 2006 thanks to many great contributors and feedback froour dealers we covered the hottest topics in onlineautomotive to help dealers sell more vehicles more efficientlHere is a list of our most popular articles of 2006 - worthy oreview to help you start 2007 strong

[FULL STORY]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rightseservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the De

D e a le r N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1043

Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (2 of 6) [1112007 93151 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1243

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1343

Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (6 of 6) [1112007 93151 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1643

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93152 AM]

882019 Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

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car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

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Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 8: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with thatcomes new sales opportunitieTo start 2007 off right makesure you are connecting with

many car buyers on the Interas possible Dealix brings youthe highest quality leads frompremium sites like Yahoo AutoEdmunds Kelly Blue Book anmore ndash directly to your in-boxClick here to see a short mov

on Dealixs award-winning NeCar Leads Program and learn

more about the provider thatdealers rated Highest in Overa

Dealer Satisfaction in the 2006 JD Power and Associates

Dealer Satisfaction with Online Buying Services StudySMView the movie

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

by Cliff Banks

Someone mentioned to me that very little new information came out of apanel discussion I recently moderated for JD Power and Associates held inLas Vegas After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differ According to thepanel higher Internet lead costs for dealers and a system allowing customto rate dealers are just a couple of new developments dealers may see by2008

This article was originally published in the Dec 20 2006 issue of Wards Dealer Business

[FULL STORY]

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Effective Online Automotive Sales

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

To kick off 2007 wersquore looking backat the fourth quarter of 2006 to

see which cars generated the mostleads and which had the highestclose rates BMW and Forddemonstrate that its not justabout Toyota and Honda

[FULL STORY]

Internet Training and Industry Reminders

Upcoming Events

Cobalts Breakfast of Champions and the 2007 NADA ExpoUpcoming industry events you wont want to miss

Click Full Story for details

[FULL STORY]

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

In 2006 thanks to many great contributors and feedback froour dealers we covered the hottest topics in onlineautomotive to help dealers sell more vehicles more efficientlHere is a list of our most popular articles of 2006 - worthy oreview to help you start 2007 strong

[FULL STORY]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rightseservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the De

D e a le r N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (2 of 6) [1112007 93151 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

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full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

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car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

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Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 9: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales

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

To kick off 2007 wersquore looking backat the fourth quarter of 2006 to

see which cars generated the mostleads and which had the highestclose rates BMW and Forddemonstrate that its not justabout Toyota and Honda

[FULL STORY]

Internet Training and Industry Reminders

Upcoming Events

Cobalts Breakfast of Champions and the 2007 NADA ExpoUpcoming industry events you wont want to miss

Click Full Story for details

[FULL STORY]

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

In 2006 thanks to many great contributors and feedback froour dealers we covered the hottest topics in onlineautomotive to help dealers sell more vehicles more efficientlHere is a list of our most popular articles of 2006 - worthy oreview to help you start 2007 strong

[FULL STORY]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rightseservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the De

D e a le r N e w s l e

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (1 of 6) [1112007 93151 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

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Submit

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

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Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93203 AM]

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 10: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Interview with Automotive Sales Expert Paul MillerOn Ad Spends Rural Markets and Domestic Brands

Paul Miller began his career in theautomotive industry cleaning cars atan Illinois dealership at age 16Today practically everyone workingin online automotive knows his nameand track record of success As a

consultant he leverages his 15 yearsof experience as a salespersonInternet manager BDC managerfinance manager and sales managerto help dealerships around thecountry We spoke with him recentlyabout key topics including combating the struggles of domesbrands today how rural dealers can avoid common sellingmistakes and the importance of building trust and cooperation

between the floor and the Internet department

D e a lix D e a le r N e w s le t t e r (DDN) Paul thanks for taking thtime to talk with us Lets start with your background How didyou get started in automotive and how did you wind up whereyou are Paul Miller (PM) I started cleaning cars in an Illinois dealersat age 16 That was back in 1991 At 17 I moved to the bodyshop where I prepped vehicles for the painters At 18 I starteselling cars I tried college but I quickly that realized that thecar business was my true passion All in all I spent 15 years inretail as a salesperson Internet manager BDC manager finanmanager and sales manager I have been involved in everyaspect of dealership operations from ordering inventory toadvertising In 1997 I started one of the countrys first dealer websites an

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

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882019 Dealix Paglia Interview Part 2 of 2

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 11: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

BDC departments That was for Capital Ford in Raleigh NCWhen I left Capital they were the 1 online Ford dealerships ithe country Today I have my own software and consultingcompany DMi (Dudley-Miller Inc) My business partner and Ialong with our staff handle many levels of consulting andsoftware needs for dealers nationwide

DDN Theres probably no such thing as a typical consultingproject But can you paint us a picture of what you do and howyou work PM The foundation for DMi was laid while I was still at Capitagot started doing websites and online applications for businessowned by friends and family and later on for non-competingdealerships By the time I went out on my own the workloadwas overwhelming and it continued to grow My businesspartner and I managed it by expanding our staff which is nowup to six and teaming with an advertising agency in GreenvilleSC As weve grown one thing weve worked hard to maintain is aindividualized approach that develops the right solution for eveclient I handle virtually all initial visits myself The principalvalue that I personally am able to offer is the ability to dissecteverything about the way a dealership does business andpropose a process that will work for that particular store - as

opposed to a cookie-cutter process that forces the store to machanges that may not make sense for it For every request I do a site assessment and investigateinbound emails phone calls and outbound marketing efforts interview all personnel and also evaluate all systems leadproviders and advertising efforts Afterwards I prepare a repofor the dealer I present my findings in person and offer aproposal that will make it possible for the dealership to meet

identified goals We always develop steps to completion andmake sure that each step is complete before proceeding to thenext This is a way to prevent the dealer from taking a shotguapproach that produces immediate results but ultimately ends failure DDN What advice do you have for dealerships trying to strikethe right balance between traditional advertising and onlinemarketing

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

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full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

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car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93203 AM]

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

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Page 12: Dealix Paglia Interview Part 2 of 2

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (5 of 6) [1112007 93151 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (6 of 6) [1112007 93151 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1643

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93152 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1743

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 13: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

This sort of thing should never happen You wouldnt ask yourquarterback to go into a game without knowing the game planand the same goes for your BDC DDN When you go into a dealership whats the hardestproblem to correct Whats the one thing youre always hopingnot to see not to have to deal with

PM Finding that someone is simply the wrong person for the jis probably the hardest thing I have to deal with For one thingits not fun to be the bad guy the guy who says Hey this isnworking out But theres also the question of how the wrongperson got into this position in the first place A lot of dealershmove under-performing employees to the BDC rather thanletting them go The attitude behind this is really difficult tocorrect Why would a dealer spend tens of thousands of dollarsmonth on advertising to generate calls or email only to routethose leads to a person who lacks the ability to handle themMost of my clients prove adaptable enough to change theirthinking and staffing practices but when they resist it makesmy job a lot tougher DDN Whats tends to be the biggest mental block fordealerships Is there a problem thats actually fairly easy tosolve logistically but which dealerships just hate facing

PM The biggest definitely is a lack of communication and trubetween departments It shouldnt be that hard to see that atrue BDC is a support center for the sales department and not enemy Sales managers in some stores actually show animosittowards the Internet department when it has a better monththan the floor team A true BDC does not sell cars it sells appointments for the flooA true Internet department does its job by putting the best

people in the right place to handle the customers that come itsway Logistically its fairly easy to give a BDC or Internetdepartment everything it needs to succeed but dealers canundermine their efforts by allowing the animosity to continue One of the first things we do after a dealer agrees to ourproposal is to have a town hall meeting with all managers andthen another with all salespeople We want them to know fromday one why were here what were doing and how they and

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (5 of 6) [1112007 93151 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (6 of 6) [1112007 93151 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1643

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93152 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1743

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93152 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1843

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93152 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1943

Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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882019 Dealix Paglia Interview Part 2 of 2

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93203 AM]

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 14: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the business will benefit DDN The conventional wisdom is that domestic dealers have tougher time with Internet marketing than import dealers Howdo you view this issue PM My belief is that domestics should actually perform better

than the imports in this regard given that they have so muchmore freedom from their manufacturers Many import dealersare hobbled by their forced reliance on CRM systems websitesand other technologies that in my opinion are inferior to whacan be obtained on the free market Our philosophy is the same whether a client is a domestic orimport dealer Use the best tools that your situation allows anspend your advertising dollars in the most efficient way possibIn many cases this involves identifying and targeting the mosrealistic customers for your particular store at a particularmoment in time A Toyota dealer shouldnt waste time trying tcapture F150 buyers if he has four Tundras on the lot Go aftewhat will produce the most sales for you rather than going heato head with your competition Be realistic set goals andachieve them

DDN In the world of Internet sales and marketing what aresome key issues for rural dealerships

PM A lot of rural dealers make the same mistake over and ovThey think every Internet inquiry is a nothing deal that they wlose to the big city boys because they lack selection or theirmanager wont let them sell the vehicle at a low-enough priceRural dealers need to be proactive in their community andpresent their customers with compelling reasons for keepingtheir business local As a rural dealer you have to own yourmarket and not worry about the other markets Selling outside

your market is a nice achievement but if you make it a goal iwill turn into a distraction An interesting problem crops up for rural dealerships that arelocated in somewhat more dense areas They tend to get moreInternet leads and their response to this volume is to rely tooheavily on automation They have a great personal touch withwalk-ups and phone-ups but with Internet leads they forget wthey are and what has made people want to buy from them in

ttpnewsdealixcome_article000726597cfmx=b8LNmL3b4bG84htw (5 of 6) [1112007 93151 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93152 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1743

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93152 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93152 AM]

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

ttpnewsdealixcome_article000727518cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93154 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 15: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Interview with Automotive Sales Expert Paul Miller

the past

They can also forget the sales skills that they use all the timewhen working on the lot Finding out what the customer reallywants for example Someone can email them about a FordExplorer and they go into order-taking mode not bothering todiscover that the Explorer is number 25 on a list of 25 cars tha

the customer wants Number 1 might be a Lincoln Navigatorand maybe thats out of the customers price range But if youtake the time to learn this you may be able to sell anExpedition while your chances of selling that Explorer - the cathe customer inquired about - are actually zero The lesson here of course is a good one for all dealerships annot just rural or semi-rural stores Via email its easy for themost experienced sales professional to occasionally lose sight obuyer psychology and to take an inquiry too straightforwardlyThis is one reason that its important to pick up the phone andmake a real connection when email doesnt seem to be goinganywhere

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93152 AM]

882019 Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93152 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

ttpnewsdealixcome_article000727518cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93154 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

ttpnewsdealixcome_article000727496cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93159 AM]

882019 Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

ttpnewsdealixcome_article000727496cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93159 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 2443

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

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Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 16: Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 by continuingour chat with Ralph Paglia CRMe-BusinessDirector at Phoenixrsquos Courtesy ChevroletCourtesy is consistently one of the topChevrolet dealers in the country and Ralphrsquosimmense success has made him a nationallyknown expert in online automotive sales Inthis second installment Ralph talks aboutadvertising budgets common Internet salesmistakes ldquoslurpingrdquo and the dealership of thefuture D e a lix D e a le r N e w s le t t e r (DDN) Ralph Ican imagine that smaller dealerships would do just about anything to have the advertising budget you have at Courtesy Whaadvice would offer to help them make the most of their more limited means Ralph Paglia (RP) The most effective marketing strategies will usually scaleor down as budgets grow or shrink and thatrsquos true of our approach at Courtes

Chevrolet The first thing we do is to buy every available new car Internet leadthat we can get from reputable lead providers such as Dealix Therersquos simply nbetter value than being able to engage with a ldquohand-raiserrdquo for around $20 Thnext thing is to buy used car leads based on our inventory The principle here exactly the same After taking care of new car and used car leads I would use any remainingInternet money to advertise the dealershiprsquos website We place a lot of graphicads on major automotive websites and get a lot of exposure and a lot of trafficBut search engine marketing gives dealers a lot of flexibility in exactly how theadvertise and how much they spend The critical thing is to link your advertisindirectly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practicyou called ldquoslurpingrdquo It seems that ISMs sometimes follow up with Internetcustomers to see why they didnrsquot show up for an appointment and the customwill say ldquoI did and I bought a carrdquo It turns out that floor salespeople arestealing these prospects and making the sale What do you do to prevent this RP This has always been a problem and itrsquos more of a political andorganizational issue than a technical one We address it in a number of ways Internet sales specialists are trained to insist that the customer call the ISSrsquos cphone when theyrsquore a block or two away from the dealership We also have tw

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

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full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

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car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

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Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Page 17: Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

full-time CRM administrators who work at the showroom reception desk Theybonused based on how many customers they greet and introduce to theappropriate sales rep so they have a strong incentive to prevent slurping Whatrsquos most effective is having our sales process tied closely to our CRM systewhich is set up to prevent salespeople from creating an entry that matches thename telephone number address or email address for an existing entry Oursalespeople canrsquot work a deal without a customer number and they canrsquot get customer number for an Internet lead without exposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline toterminate employees who stoop to this A lot of dealerships wind up giving a hdeal to someone who gets caught skating just to keep the peace This is theworst possible response because it rewards and encourages the practice I fininteresting that with 30 people handling Internet sales we almost never haveproblem with the Internet salespeople skating each other They are remarkablgood at splitting deals getting the customer to the right person and evenhandling minor customer needs for their teammates without asking for half adeal

DDN Whatrsquos the most common mistake Internet sales professionals make in

your opinion RP Withholding information that the customer explicitly asks for or has beenpromised in exchange for submitting a lead Sometimes itrsquos laziness butsometimes sales reps actually believe that the customer is more likely to speawith them if they refuse to email specific answers It never fails to amaze and delight me when I mystery-shop our competitors ain response to a specific direct question am told ldquoIrsquoll go over that with you othe phonerdquo Most customers will not let you get very far with them if you playgames and withhold information about pricing or anything else If you providethe information the customer requests and more theyrsquoll see that you are takitheir inquiry very seriously and that you genuinely want to give them greatservice The customerrsquos yearning for attention and great service has not changed If youse email and phone calls to meet their needs and expectations they will comto the dealership to meet you in person If yoursquore fundamentally committed tothis even your missteps can turn out well We resolve over 70 of our lead-handling complaints with a sale Every customer gets an email with my namedirect phone number and email address asking if they are completely satisfiewith how Courtesy Chevroletrsquos ISS handled their inquiry

DDN What about GMs What should they avoid doing that could undermine tsuccess of their Internet sales efforts RP Lack of involvement or genuine commitment on the part of a GM can realhurt GMs need to understand the Internet sales process as well as theyunderstand the dealershiprsquos other processes They also need to hold peopleaccountable for their performance That means they have to know how to pullreports from their CRM tools and measure the activities of their staff so they ckick butt when Internet sales reps do what all salespeople tend to do - let theiprocess execution deteriorate

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93152 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 1843

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93152 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

ttpnewsdealixcome_article000727518cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93154 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

ttpnewsdealixcome_article000727518cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93154 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 18: Dealix Paglia Interview Part 2 of 2

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

The only good alternative is to have someone like me operate at a directorrsquos leand do all this for them Luckily Courtesy Chevrolet doesnrsquot have a generalmanager so I get to keep my job DDN Ten years from now what are things going to be like for a typicaldealership RP Sales originating from various types of digital inquiries will continue to groand represent a larger and larger portion of dealershipsrsquo total sales Newspape

became worthless as a retail automotive marketing tool two or four years agoand more dealers will discover this fact every year Overall I believe the level of professionalism within the world of automotivesales will increase and managers will become savvier about everything that gointo the buyerrsquos decision-making process If you want to see what most dealerwill be doing in five years come to Courtesy Chevrolet and visit our multipleInternet sales departments and our brand new state-of-the-art businessdevelopment center We donrsquot understand why itrsquos taking so long for otherdealers to catch up but when we see some of our local competition asleep at twheel we are thankful for it

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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882019 Dealix Paglia Interview Part 2 of 2

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725638cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93201 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93203 AM]

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 19: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

The Future of Dealer WebsitesKey Topics from the JD Power and Associates AutomotiveRoundtable

At the JD Power and Associates Automotive Internet Roundtable held lastNovember a panel including The Cobalt Grouprsquos vice president of applicationsand services Kevin Root Barry Brodsky of Dealer Web Tools and Jason Ezell Dealerskins discussed the Future of Dealership Websitesrdquo This panel of onlineautomotive veterans gave a glimpse into the trends that are likely to growsignificantly in the next few years Here are the hot topics

Reputation Management At its broadest ldquoreputation managementrdquo refers to everything a business can to control the reputation it has among consumers This doesnrsquot sound like a vehigh-tech concept but today the Internet has a lot to do with the making - anbreaking - of reputations Websites such as judysbookcom and angieslistcomgive consumers the collective power to recommend particular services or storeAt the same time individual bloggers are wielding more power as theirreadership grows For dealerships the website - which is already a key placewhere identities and reputations are developed - will increasingly be thought o

as a tool for reputation management And this thinking will guide a lot of choicmade by dealers as they evaluate new technologies and web practices

ldquoRelevancerdquo This term was used a lot particularly by Kevin Root who expects a surge indealersrsquo ability to present customized highly relevant content to website visitobased on detailed knowledge of the search history that brought them to the siOne intriguing result the phase out of the traditional homepage In the nearfuture the landing page shown to a given visitor will be customized for thatparticular person with content and features based on how they searched for tparticular site

Video

Still having a hard time keeping your inventory photographs up to date It ispredicted that there will be an even stronger move towards video This may taa number of forms Video can be an effective way to show a website visitor whit feels like to drive a given vehicle And especially for used cars it offers thepossibility of ldquovirtual walk-aroundsrdquo A lead can schedule a time with a sales rewho will walk around the car with a video camera Thoroughly documenting th

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000727518cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93154 AM]

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

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Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Effective Online Automotive Sales The Future of Dealer Websites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

car including any nicks and scratches will be an excellent way to build trust

Content Syndication amp ldquoPushrdquo Today the dominant model is to build a website and drive people to itTomorrow this model will be effectively complemented by ldquopushrdquo technologyincluding RSS feeds which will allow you to syndicate portions of your websitefor consumption by subscribing users A car buyer who visits your website but

doesnrsquot see exactly what he wants in inventory might elect to have you pushinventory updates to him This buyer may be using a program that consolidateall his auto-related feeds on a single customizable web page - something heconstructs for himself as part of his car-shopping efforts

Collective Intelligence Ever look at a book on Amazoncom and notice the recommendations yoursquoreshown based on the books other buyers of the original book have bought If yoursquove ever found these recommendations helpful then you - and Amazon - hbenefited from ldquocollective intelligencerdquo knowledge constructed based on the

behavior of a large group Collective intelligence will be one of the ways dealewebsites enhance the relevance of the content they present to users Imaginecar buyer searching your inventory and finding the car they want along withvehicles frequently purchased by others who searched for this car

Shared OEM Assets OEMs are pumping a tremendous amount of money into building Internet assethat help them brand themselves and their vehicles The pressure to share thassets with dealers - whose budgets are much more limited - is growing Expeto see movement on this front in part thanks to efforts by service providers thwork with dealers and OEMs

Partial Online Transactions No one on the panel felt it would soon be possible to complete a deal entirelyonline But possibilities for carrying out specific portions of the transaction onlare blossoming Expect to see software that helps dealers and buyers negotiatover price for example

More Vehicle Info Online If a buyer visits your site and fails to find the vehicle information they need sthen goes elsewhere in search of it the chances yoursquoll see them again fallprecipitously As a result there will be a strong focus for dealers to beginproviding more vehicle information to capture (and keep) a larger share of thevisitors

Owner Marketing

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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882019 Dealix Paglia Interview Part 2 of 2

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725638cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93201 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 21: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Future of Dealer Websites

In the November rsquo06 issue of the Dealix Dealer Newsletter we covered the topof ldquoowner marketingrdquo The term refers to the practice of marketing to your

customer base - usually via email In the near term the ability to do this in amore targeted and customized way will grow and dealers will increasingly thinof owner management as a method for managing their overall reputation amocar buyers Services like The Cobalt Grouprsquos OnStation focus on helping dealemaintain and expand upon relationships with their existing customer base viaemail ldquoownerrdquo marketing

Increased Focus on Dealer Branding Identity Dealers spent much of the first decade of online automotive retailing simplygetting online and refining their sites and processes Now the task is to usewebsites to address the question ldquoWhy merdquo Why should car buyers shop withyou rather than the guy down the street You can answer that question with tand photos of course and even with the design of the site But increasinglyuseful technologies will play a role Consider video discussed above and theopportunity it provides for dealers to show used car blemishes and thus buildtrust At the end of the day itrsquos still about the relationship that the dealer canbuild with their customers based on the dealerrsquos ability to know their interests

and show them relevant content

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

ttpnewsdealixcome_article000727496cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93159 AM]

882019 Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 2443

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725638cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93201 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 2743

Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93203 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 2843

Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93203 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Ask Gilbert Should I Invest in a Spanish Language WebSiteWhen to Meet the Demands of this Growing Market

Gilbert Chavez is Internet director for the Phil Long dealershipsof Colorado the largest privately-owned dealer group in thatstate Gilbert frequently shares his responses to questions hegets from other Internet dealers on how to run better Internetdepartments and general best practices with the Dealix Dealer

Newsletter Heres the latest

Dear Gilbert Wersquore thinking about getting a version of our dealershiprsquoswebsite in Spanish because our dealership is located in an areawhere there is a large Spanish-speaking community Ourmanagement team has been discussing the idea of investing in

Spanish website for a while because we have been reading andseeing reports on TV about this growing market We do havesome sales people who speak Spanish but the fact is that veryfew of the customers we deal with are unable to speak Englishthey can do a deal in English no problem What do you thinkShould we invest in having our website in Spanish as well as inEnglish

Thanks

Curious George

Dear Curious I get this question all the time (Must be because of my Irishsounding last name) This is obviously a loaded issue so letrsquostry to put politics aside and focus on the fact that yoursquore just

ttpnewsdealixcome_article000727496cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93159 AM]

882019 Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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882019 Dealix Paglia Interview Part 2 of 2

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 23: Dealix Paglia Interview Part 2 of 2

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

trying to ldquomeet your marketrdquo on their terms and sell cars

While I donrsquot have exhaustive demographic statistics at mydisposal I can tell you what Irsquove learned from my ownexperience and that is - the online Spanish speaking market ian emerging market ndash itrsquos not totally there yet but it promisesto be big You need to assess your particular market today to

decide just how much - and how soon - you want to invest inthis But first you need to ask yourself ndash am I doing everythincan with Internet leads and search engine marketing to fully tainto my existing market

Herersquos an example of what Irsquove experienced Colorado whereour dealerships are located has a significant Spanish-speakingpopulation Our dealer group has two Spanish languageconversion sites and I have seen little to no traffic on thesesites Additionally our group has a Spanish language converteon our online used vehicles displays that gets essentially no plat all Furthermore I recently worked in an area of New Mexicwhere 443 of the population speaks Spanish and experiencthe same result However I have heard from other dealers particularly in arealike Houston and San Antonio Texas and theyrsquove gotten goodtraction by having web sites in Spanish

Know Your Particular Market ndash Notable Stats Here are some statistics Irsquove found on the Web from e-

Marketercom and Internet World Statscom that may help yo

make the decision on when to invest in a Spanish-language sitif at all

bull In most cases second-generation Americans of

Spanish-speaking parents are online however many abilingual and surf English-language search engines andweb sites

bull The Spanish-speaking population is the largest andfastest-growing ethnic segment in the United States ais expected to grow to 17 of the domestic populationby 2010

bull There were 157 million Spanish-speaking Internetusers in the US in 2005 And this total will rise to 167

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Page 24: Dealix Paglia Interview Part 2 of 2

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

million in 2006 and is expected to reach nearly 21million by 2010

bull The online Spanish-speaking population is young I2005 there were 91 million estimated Spanish-speakInternet users under the age of 35 and this estimate iexpected to rise to 121 million in 2010

With a segment of the population that is growing this big andthis fast dealers should definitely continue to keep their earsclose to the ground in order to make a sound assessment of hoto best meet these consumersrsquo online car buying needs Forinstance in order to successfully target this demographic onlinonce the market is really ready - we must appreciate itsintricacies It is going to take more than traditional web sitessimply translated into Spanish The next generation web sites Spanish will have to demonstrate the specific nuances of thelanguage and culture as well as the needs of this growingmarketing of car buyers The key here is to really know your market But above all keethis in mind ndash you really only want to branch out to ldquoemergingmarketsrsquo after yoursquove full tapped your existing market Is yourdealership already doing all it can on the Internet (leads searcetc) to reach your current market Master that first then lookexpansion

George thanks for the great question - Gilbert

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93203 AM]

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93203 AM]

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93205 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93209 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Effective Online Automotive Sales Start 2007 Sales in High Gear

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Start 2007 Sales in High Gear View a Movie on How Dealix Can Help You Sell More

Its a new year and with that comesnew sales opportunities To start2007 off right make sure you areconnecting with as many car buyerson the Internet as possibleDealix brings you the highest quality

leads from premium sites like YahooAutos Edmunds Kelly Blue Bookand more ndash directly to your in-boxClick here to see a short movie

on Dealixs award-winning New CarLeads Program and learn moreabout the provider that dealers ratedHighest in Overall Dealer Satisfactionin the 2006 JD Power and Associates Dealer Satisfaction with

Online Buying Services StudySM View the movie

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93209 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3543

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Start 2007 Sales in High Gear

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93203 AM]

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93209 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93211 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

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Effective Online Automotive Sales New Developments for Third-party Sites

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

New Developments for Third-party Sites Wards Dealer Business Editor on the Latest Trends

I guess you canrsquot please everybody Someone mentioned to mthat very little new information came out of a panel discussionrecently moderated for JD Power and Associates held in LasVegas

After listening to the tape of the session which focused on thenext big thing from third-party websites I beg to differAccording to the panel higher Internet lead costs for dealers aa system allowing customers to rate dealers are just a couple onew developments dealers may see by 2008 Soundsnewsworthy to me especially if yoursquore a dealer buying leadsfrom third-party firms

Sitting on the panel were John Holt president and CEO of The

Cobalt Group Stephen Henson executive vice president of Kelley Blue Book Chip Perry president and CEO of AutoTradercom Mitch Golub president Carscom and JimRiesenbach president and CEO of Autobytel Inc

One thing is clear All of the panelists agree the process withwhich their sites move online car shoppers to the dealers needto evolve to the next level And that means improving the quaof leads dealers receive

Indeed there has been a lot of industry discussion aboutimproving lead quality Riesenbach though says talking aboutlead quality is a misnomer

ldquoThe notion that a consumer not ready to buy to on that day(when they visit a site) is a low-quality lead strikes me as oddhe says

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93203 AM]

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

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Your Email Address

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Your Comments

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Effective Online Automotive Sales New Developments for Third-party Sites

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

Rather than poor quality it is an issue of readiness Riesenbacthinks ldquoWe need to define readiness and recognize people arecoming into the funnel long before they are ready to buyrdquo hesays ldquoIt is incumbent upon us to build (business) models thathelp move the consumers logically through that funnelrdquo

ldquoWe need to take every lead that comes in and do everything

possible to pass it on to a dealer so it has as much opportunityto close as possiblerdquo says Holt

He suggests scientifically scoring leads as one way to measurereadiness Holt also believes third-party companies can do abetter job of managing those leads ldquoWe can do that withservicerdquo he says ldquoWe can extend our hands to the customer obehalf of the dealerrdquo

One way is to develop sites that allow shoppers tosimultaneously search for both used and new vehicles Perryargues ldquoThere has been an artificial separation between newand used shoppersrdquo he says ldquoBut studies show 40 of carbuyers shop for both There are fundamental gaps in the carbuying process on many sitesrdquo

Golub agrees saying third-party sites need to take a page fromthe used-car side of the business that allows shoppers to searcfor specific vehicles He envisions a process that allows buyers

match their online vehicle configurations with actual inventory dealersrsquo lots

Another development in the works that Golub expects will be ithe market late in 2008 is a ratings system of dealers It likelywill be a touchy issue for dealers and is one that has be donepositively rather than negatively he says

Another area third-party sites will improve is in the use of

content and consumer-generated tools Henson says ldquoWersquoll seexponential growth in that areardquo he says KBBcom is pilotingvideo applications and will begin rolling them out sometime neyear

Meanwhile Carscom is launching in February a series of vehicdatabases shoppers can access using their cell phones andBlackberries

ttpnewsdealixcome_article000727834cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93203 AM]

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93209 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3443

Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93209 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3543

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93211 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

MakeNews

TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4343

MakeNews

Thanks

Below is the link to place in the aggregator to

access your RSS Feed

httpnewsdealixcome_rssaspxx=0b4bG84ht

Page 29: Dealix Paglia Interview Part 2 of 2

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httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 2943

Effective Online Automotive Sales New Developments for Third-party Sites

But all this development will take money and likely will result ihigher prices for those leads Carscom is doubling its productdevelopment for its site in 2007 The shopping experience haschange Golub argues ldquoItrsquos a 12-year old business model inwhich the price per lead has not changed in eight yearsrdquo hesays But that may be a tough sell for skeptical dealers

The return for dealers though may be much higher closingratios for the leads they purchase from third-party sites If thahappens and that is a big ldquoifrdquo that will be real news

cbankswardsautocom

This article was originally published in the Dec 20 2006 issueWards Dealer Business

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

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882019 Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

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Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

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Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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882019 Dealix Paglia Interview Part 2 of 2

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

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882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

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Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

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Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

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Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

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Page 30: Dealix Paglia Interview Part 2 of 2

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httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3043

Effective Online Automotive Sales The Top Ten for Q4 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training

nd Industry

eminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

To kick off 2007 wersquore looking back at thefourth quarter of 2006 to see which vehiclesgenerated the most leads and which vehicleshad the highest close rates

Close Rates Trucks and SUVs Come Out onTop Every vehicle in this list is an SUV or truck with two exceptions - two verydifferent exceptions At number 4 therersquos the Lexus GS with a close rate score990 And at number 9 therersquos the Honda Civic Si with a close rate score of 949Yet overall in the 4th Quarter of 2006 online vehicle buyers clearly showed ththey wanted a vehicle that could do stuff - whether it was for work or a busyand active lifstyle - to haul lots of things - or people

Close Rate Score by Make and Model

Rank Make Model Close Rate Score

1 BMW X3 1000

2 Chevrolet Silverado Classic 1500 4WD 990

3 Jeep Commander 990

4 Lexus GS 990

5 Nissan Frontier 990

6 Acura MDX 970

7 Dodge Dakota 949

8 Ford Freestyle 949

9 Honda Civic Si 949

10 Toyota Tacoma 949

Most-Requested Vehicles As usual wersquove broken these rankings into four categories cars trucks SUVsand minivans

Among cars the imports ruled the roost with Ford the only domesticmanufacturer to make the cut - thanks to its eye-catching Mustang For the mopart the cars generating the most leads are a fairly unassuming lot The Mustais an exception of course as is the MINI Cooper MINI mania is still alive and w

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (1 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3143

Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93205 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3243

Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93209 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3443

Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93209 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3543

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93211 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

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NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

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Page 31: Dealix Paglia Interview Part 2 of 2

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httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3143

Effective Online Automotive Sales The Top Ten for Q4 2006

ubscribe to theealix Dealerewsletter Enterour email address ine box below andell add you to thet

Add Remove

Most Requested Cars

Rank Make Model Strength Rating

1 Toyota Camry 1000

2 Honda Civic Sedan 679

3 Toyota Corolla 648

4 Honda Accord Sedan 560

5 BMW 3 Series (default) 522

6 Honda Civic Coupe 389

7 MINI Cooper (default) 3728 Honda Accord Coupe (default) 367

9 Ford Mustang 361

10 Mazda MAZDA3 360

In the trucks category the Big Three fared much better with all making the listChevrolet twice Only Toyota had more ranked models (3) Nissan had two butthe number 9 and number 10 spots

Most Requested Trucks

Rank Make Model Strength Rating

1 Ford F Series Pickup 1000

2 Chevrolet Silverado 831

3 Dodge Ram 606

4 Toyota Tacoma 476

5 GMC Sierra 333

6 Chevrolet Avalanche (default) 267

7 Toyota Tundra 235

8 Toyota Tacoma PreRunner 163

9 Nissan Frontier 157

10 Nissan Titan 136

On to the top ten SUVs Here Toyota models occupied the top two spots with athird - the FJ Cruiser - showing up at number 7 Honda placed two of its vehicleas did Jeep And high gas prices didnrsquot force Hummer off the list its H3 held firat number 5

Most Requested SUVs

Rank Make Model Strength Rating

1 Toyota RAV4 1000

2 Toyota 4Runner (default) 8693 Chevrolet Tahoe 631

4 Honda CR-V 617

5 Hummer H3 615

6 Honda Pilot 521

7 Toyota FJ Cruiser 516

8 Jeep Wrangler 463

9 BMW X5 453

10 Jeep Grand Cherokee 416

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (2 of 3) [1112007 93205 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3243

Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93209 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3443

Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93209 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3543

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93211 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

MakeNews

TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

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MakeNews

Thanks

Below is the link to place in the aggregator to

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Page 32: Dealix Paglia Interview Part 2 of 2

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Effective Online Automotive Sales The Top Ten for Q4 2006

It was in the minivan category that the domestics really held their own No Asiamanufacturer placed more than one model - five in all Meanwhile ChryslerDovehicles took up three spots with Ford and Saturn accounting for the remainingtwo

Most Requested Minivans

Rank Make Model Strength Rating

1 Honda Odyssey 1000

2 Toyota Sienna 738

3 Kia Sedona 421

4 Dodge Caravan 394

5 Chrysler Town amp Country 345

6 Dodge Grand Caravan 240

7 Nissan Quest 193

8 Ford Freestar 110

9 Mazda MPV 86

10 Saturn Relay 73

About the Study

The Dealix Most Requested Vehicles IndexSM is a weighted index based on thenumber of Internet sales leads per vehicle make and model that is generated fr

the Dealix Lead Trading PlatformSM over a set time period The most requestedvehicle per submitted leads is given a perfect score of 1000 and all subsequentvehicles are weighted against the leading vehicle Primary data is derived from

Dealix Lead Trading PlatformSM This study does not intend to represent data foall vehicle sales leads

The Dealix Most Frequently Closed IndexSM is a weighted index based on the

number of Internet sales leads for a specific vehicle make and model generatedfrom the Dealix Lead Trading PlatformSM that resulted in a sale over a set timeperiod The most frequently closed vehicle per submitted leads is given a perfecscore of 1000 and all subsequent vehicles are weighted against the leading

vehicle Primary data is derived from the Dealix Lead Trading PlatformSM Thestudy does not intend to represent data for all vehicle sales leads

This report is brought to you by Dealix Business IntelligenceSM An asteriskindicates that the listed vehicle includes several models andor trim lines thatshare the same name

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a li x D e a

N e w s l e

ttpnewsdealixcome_article000726668cfmx=b8LNmL3b4bG84htw (3 of 3) [1112007 93205 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93209 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3443

Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93209 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3543

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93211 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

MakeNews

TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4343

MakeNews

Thanks

Below is the link to place in the aggregator to

access your RSS Feed

httpnewsdealixcome_rssaspxx=0b4bG84ht

Page 33: Dealix Paglia Interview Part 2 of 2

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3343

Effective Online Automotive Sales Internet Training and Industry Reminders

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

Internet Training and Industry RemindersUpcoming Events

The Cobalt Group P resents the Breakfast of ChampionsWorkshop Series

The Breakfast of Champions seminar for 2007 is a cost-effectivway to help you with your dealershiprsquos advertising and marketstrategies A Breakfast of Champions in coming soon to a city

near you and it is definitely something you donrsquot want to miss

January 16th Ft LauderdaleFL

Embassy Suites Ft Lauderdale

February 20th San Diego CA San Diego Hotel amp Marina

March 13th Westchester NY Westchester Marriott

Click Here to register for any of these sessions Or call (800)

557 -7915

NADA 2007 ndash The Automotive Industry Event of the Yea Need a break from the convention floor The Cobalt Group andDealix will be hosting a reception across the street from theevent at the Renaissance Hotel Complimentary refreshments w

be provided We are looking forward to meeting with you andtelling you more about our new products like the Used Cars

Advertising amp LeadsSM program PowerSearch CompleteSM andmore Our experts will be on hand to answer any questions yomay have about our suite of products amp services and the onlineautomotive industry in general

For more information the 2007 NADA Expo please click here

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93209 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3443

Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93209 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3543

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93211 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

MakeNews

TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4343

MakeNews

Thanks

Below is the link to place in the aggregator to

access your RSS Feed

httpnewsdealixcome_rssaspxx=0b4bG84ht

Page 34: Dealix Paglia Interview Part 2 of 2

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3443

Effective Online Automotive Sales Internet Training and Industry Reminders

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

[PRI NTER FRIENDLY VERSION]

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725637cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93209 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3543

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93211 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

MakeNews

TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4343

MakeNews

Thanks

Below is the link to place in the aggregator to

access your RSS Feed

httpnewsdealixcome_rssaspxx=0b4bG84ht

Page 35: Dealix Paglia Interview Part 2 of 2

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3543

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

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

Here are the most popular Dealix Dealer Newsletter articles fro2006 Building Internet Department Profitability

Anderson Auto Group High Sales in Rural Markets

10 Best Practices for Responding to Phone Leads

How to Staff Your Internet Department

Neil Automotive a Big Commitment to the Internet Pays

Off

Interview w ith Ralph Paglia of Courtesy Chevrolet - Part

Internet Departments Still Not Getting It

Three Simple Things Internet Managers Should Check

Everyday

Internet Sales Training Manual

Email or Phone Donrsquot Let the Customer Decide

How to Maintain Gross w ith Internet Customers

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93211 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

MakeNews

TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4343

MakeNews

Thanks

Below is the link to place in the aggregator to

access your RSS Feed

httpnewsdealixcome_rssaspxx=0b4bG84ht

Page 36: Dealix Paglia Interview Part 2 of 2

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3643

Effective Online Automotive Sales Dealix Dealer Newsletter Best of 2006

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725635cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93211 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

MakeNews

TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4343

MakeNews

Thanks

Below is the link to place in the aggregator to

access your RSS Feed

httpnewsdealixcome_rssaspxx=0b4bG84ht

Page 37: Dealix Paglia Interview Part 2 of 2

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3743

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

anuary 2007 Effective Online Auotmotive Sales VOLUME 6 ISSU

HOME

ONTENTS

nterview with

utomotive Sales

xpert Paul Miller

alph Paglia of

ourtesy Chevrolet

nterview Part 2

he Future of Dealer

Websites

sk Gilbert Should I

nvest in a Spanish

anguage Web Site

tart 2007 Sales in

igh Gear

ew Developments

or Third-party Sites

he Top Ten for Q4

006

nternet Training and

ndustry Reminders

ealix Dealer

ewsletter Best of

006

iew a Movie to See

ow Dealix Can Help

ou Sell More Cars

UBSCRIBE

View a Movie to See How Dealix Can Help You Sell MoreCars

[PRI NTER FRIENDLY VERSION]

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (1 of 2) [1112007 93213 AM]

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

MakeNews

TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4343

MakeNews

Thanks

Below is the link to place in the aggregator to

access your RSS Feed

httpnewsdealixcome_rssaspxx=0b4bG84ht

Page 38: Dealix Paglia Interview Part 2 of 2

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3843

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

ubscribe to the Dealixealer Newsletternter your emailddress in the boxelow and well addou to the list

Add Remove

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix membersnd anyone who has expressed interest in our serviceso unsubscribe enter your email address in theubscription box appearing within the newsletter andhoose the Remove option Or just click one of the linkselow

Click here to Tell a Friend about the D e a lix D e a

N e w s le

ttpnewsdealixcome_article000725633cfmx=b8LNmL3b4bG84htw (2 of 2) [1112007 93213 AM]

Submit

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

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ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

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Page 39: Dealix Paglia Interview Part 2 of 2

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 3943

Article from Effective Online Automotive Sales

ticle from Effective Online Automotive Sales ttpnewsdealixcome_article000726616cfmx=b8LNmL3b4bG84ht)

anuary 9 2007

Ralph Paglia of Courtesy Chevrolet Interview Part 2 On Ad Budgets Common Internet Sales Mistakes amp More

Wersquore bridging 2006 and 2007 bycontinuing our chat with RalphPaglia CRMe-Business Director atPhoenixrsquos Courtesy ChevroletCourtesy is consistently one of theop Chevrolet dealers in the

country and Ralphrsquos immensesuccess has made him a nationallyknown expert in online automotivesales In this second installmentRalph talks about advertisingbudgets common Internet sales

mistakes ldquoslurpingrdquo and thedealership of the future

D e a lix D e a le r N e w s l e t t e r (DDN) Ralph I can imagine that smallerdealerships would do just aboutanything to have the advertisingbudget you have at Courtesy Whatadvice would offer to help themmake the most of their more limitedmeans

Ralph Paglia (RP) The most effective marketing strategies will usually scale up or down abudgets grow or shrink and thatrsquos true of our approach at Courtesy Chevrolet The first thinwe do is to buy every available new car Internet lead that we can get from reputable leadproviders such as Dealix Therersquos simply no better value than being able to engage with ahand-raiserrdquo for around $20 The next thing is to buy used car leads based on our inventor

The principle here is exactly the same

After taking care of new car and used car leads I would use any remaining Internet money advertise the dealershiprsquos website We place a lot of graphical ads on major automotive

websites and get a lot of exposure and a lot of traffic But search engine marketing givesdealers a lot of flexibility in exactly how they advertise and how much they spend The critiching is to link your advertising directly into your inventory

DDN In a recent story about you in Wardrsquos you mentioned a growing practice you calledslurpingrdquo It seems that ISMs sometimes follow up with Internet customers to see why they

didnrsquot show up for an appointment and the customer will say ldquoI did and I bought a carrdquo Iturns out that floor salespeople are stealing these prospects and making the sale What do y

do to prevent this

RP This has always been a problem and itrsquos more of a political and organizational issue tha

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (1 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

MakeNews

TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4343

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Thanks

Below is the link to place in the aggregator to

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httpnewsdealixcome_rssaspxx=0b4bG84ht

Page 40: Dealix Paglia Interview Part 2 of 2

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4043

Article from Effective Online Automotive Sales

a technical one We address it in a number of ways Our Internet sales specialists are traineo insist that the customer call the ISSrsquos cell phone when theyrsquore a block or two away from t

dealership We also have two full-time CRM administrators who work at the showroomeception desk Theyrsquore bonused based on how many customers they greet and introduce tohe appropriate sales rep so they have a strong incentive to prevent slurping

Whatrsquos most effective is having our sales process tied closely to our CRM system which is sup to prevent salespeople from creating an entry that matches the name telephone numbe

address or email address for an existing entry Our salespeople canrsquot work a deal without acustomer number and they canrsquot get a customer number for an Internet lead withoutexposing themselves as a thief

Ultimately this problem wonrsquot go away until we develop the discipline to terminate employewho stoop to this A lot of dealerships wind up giving a half deal to someone who gets caugskating just to keep the peace This is the worst possible response because it rewards andencourages the practice I find it interesting that with 30 people handling Internet sales wealmost never have a problem with the Internet salespeople skating each other They areemarkably good at splitting deals getting the customer to the right person and even

handling minor customer needs for their teammates without asking for half a deal

DDN Whatrsquos the most common mistake Internet sales professionals make in your opinion

RP Withholding information that the customer explicitly asks for or has been promised inexchange for submitting a lead Sometimes itrsquos laziness but sometimes sales reps actuallybelieve that the customer is more likely to speak with them if they refuse to email specificanswers

t never fails to amaze and delight me when I mystery-shop our competitors and in respono a specific direct question am told ldquoIrsquoll go over that with you on the phonerdquo Most

customers will not let you get very far with them if you play games and withhold informatioabout pricing or anything else If you provide all the information the customer requests andmore theyrsquoll see that you are taking their inquiry very seriously and that you genuinely wano give them great service

The customerrsquos yearning for attention and great service has not changed If you use email aphone calls to meet their needs and expectations they will come to the dealership to meetyou in person If yoursquore fundamentally committed to this even your missteps can turn outwell We resolve over 70 of our lead-handling complaints with a sale Every customer getsan email with my name direct phone number and email address asking if they arecompletely satisfied with how Courtesy Chevroletrsquos ISS handled their inquiry

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

RP Lack of involvement or genuine commitment on the part of a GM can really hurt GMsneed to understand the Internet sales process as well as they understand the dealershiprsquosother processes They also need to hold people accountable for their performance That meahey have to know how to pull reports from their CRM tools and measure the activities of th

staff so they can kick butt when Internet sales reps do what all salespeople tend to do - letheir process execution deteriorate

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (2 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

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TELL A FRIEND

To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

Send

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4343

MakeNews

Thanks

Below is the link to place in the aggregator to

access your RSS Feed

httpnewsdealixcome_rssaspxx=0b4bG84ht

Page 41: Dealix Paglia Interview Part 2 of 2

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4143

Article from Effective Online Automotive Sales

The only good alternative is to have someone like me operate at a directorrsquos level and do alhis for them Luckily Courtesy Chevrolet doesnrsquot have a general manager so I get to keep

my job

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

RP Sales originating from various types of digital inquiries will continue to grow and repres

a larger and larger portion of dealershipsrsquo total sales Newspapers became worthless as a reautomotive marketing tool two or four years ago and more dealers will discover this factevery year

Overall I believe the level of professionalism within the world of automotive sales will increaand managers will become savvier about everything that goes into the buyerrsquos decision-making process If you want to see what most dealers will be doing in five years come toCourtesy Chevrolet and visit our multiple Internet sales departments and our brand new staof-the-art business development center We donrsquot understand why itrsquos taking so long for othdealers to catch up but when we see some of our local competition asleep at the wheel weare thankful for it

ublished by Dealix Corporation

opyright copy 2007 Dealix Corporation All rights reservedhe Dealix Dealer Newsletter is sent to Dealix members and anyone who has expressed interest in our serviceo unsubscribe enter your email address in the subscription box appearing within the newsletter and choose temove option Or just click one of the links below

ttpwwwimakenewscomeletramod_print_vie58788amplid=b8LNmL3ampuid=b4bG84htampXXDESXXpower=F (3 of 3) [1112007 93215 AM

882019 Dealix Paglia Interview Part 2 of 2

httpslidepdfcomreaderfulldealix-paglia-interview-part-2-of-2 4243

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To tell someone else about this Web page pleaseenter both your email address and your friends emailaddress in the boxes below

Your Name

Your Email Address

Your Friends Email Address

Your Comments

NOTE This will send a short note to the recipientcontaining a link to this Web page No informationentered here is saved or used for any other purpose

ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

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882019 Dealix Paglia Interview Part 2 of 2

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Page 42: Dealix Paglia Interview Part 2 of 2

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ttpwwwimakenewscomeletrarefercfmy=dealiFnews2Edealix2Ecom2Fe5Farticle0007266162Ecfm [1112007 93216 AM

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