Apply Google’s Secrets to Achieve Google-Like Success
Every company would like to enjoy the success of Google—the fastest growing company of the Internet Age. Walk into a room and ask a crowd how many had used Google today or even this week and virtually every hand goes up. No surprise since over 70% of searches in the U.S use Google – over nine billion per month [Hitwise, May, 2009].
So how does Google dominate the world of internet search? The answer is simple: People use Google because it helps them find what they are looking for—in short, Google MAXIMIZES CONSUMER RELEVANCY. Yet, despite Google’s virtually unparalleled success, few online advertisers, especially online vehicle advertisers, leverage Google’s powerful, yet simple secret in managing their own internet business.
Evolution = Revolution
With over 80 percent of consumers researching online for an average of 6.5 hours before visiting a dealership, dealers must come to terms with one essential fact: In the Internet Age, every dealership is an internet dealership. Despite this powerful data, too many dealers are still approaching their online strategy using “old school” advertising methods such as:
- Generic VIN or window sticker data. Example: Online ads that list the four most common vehicle attributes in the first line: “power locks,” “power windows,” “power steering” and “air conditioning.” These attributes have not been vehicle differentiators for decades and are not the unique or relevant features that online shoppers look for.
- Generic narratives. Stating the obvious such as, “This vehicle is equipped with a 4.6 liter engine…”
- “Car Talk.” A dealer’s use of automotive jargon such as, “This car has eyes.” This use of insider language does not appeal to the masses.
In order to meet the needs of consumers, whose buying habits have fundamentally shifted since the advent of the internet, dealers must do away with these ineffective advertising and selling techniques in their online business and must instead focus on maximizing consumer relevancy – the degree to which your vehicle meets the needs of your customer.
The key to maximizing consumer relevancy lies in Consumer Optimization, a concept that I have introduced on previous columns. Consumer Optimization applies the Google Consumer Relevancy model to online vehicle advertising, underscoring that with every vehicle, certain features, qualities and benefits are more important than others. Emphasizing what consumers care about while minimizing what they don’t – increases the ‘relevancy’ of your vehicle to the prospective buyer. As a result, just as Search Engine Optimization optimizes a web page so it ranks higher, Consumer Optimization optimizes an online vehicle ad so it ranks higher with consumers and is more likely to be chosen versus competitors’ ads. In addition, when optimizing vehicle ads, maximizing consumer relevancy goes beyond what page a consumer should look at and focuses on which of the 1.5 dealers the consumer should visit.
Hitting the Consumer MARK
In order to create ads that are relevant, dealers must first focus on what is most relevant to their consumers. Most consumers make their purchasing decision based on what they value. With that in mind, dealers must focus on the characteristics of their vehicles that are more likely to “hit the M.A.R.K” for their potential buyers. We use this acronym to describe the four most relevant drivers in the consumer’s buying process:
- MISSION: Does the vehicle fit my Mission?
- e.g. Safe, fuel efficient, family car that seats 5 (including 3 car seats) and has a cargo area instead of a trunk to fit my dog - AFFORDABLE: Is this vehicle Affordable given my financial means?
- Payment range is the primary factor - RISK: How much Risk on reliability am I taking?
- One-owner, still under warranty, service history, low mileage, JD Power Quality Ratings, projected total cost of ownership - KEY DIFFERENTIATORS: What are the Key Differentiators of this vehicle versus my alternatives?
- Leads consumers to make purchasing decision based on price to value equation
With a clear understanding of the consumer’s M.A.R.K factors, dealers are better enabled to Consumer Optimize their online ads. The first step in this process centers on pricing. Because consumers rarely choose a pre-owned vehicle on price alone, it is critical to get pricing right from the start. While consumers search for models that meet their mission and are affordable, dealer’s must stay in the game using Consumer Optimized Pricing techniques, which manage the fine line between overpricing vehicles so you’re not “out of the game” and giving away gross profit upfront through under pricing.
With optimized pricing in place, consumers will likely continue their online search by scanning Ad Previews, which should speak to a consumer’s needs or the M.A.R.K Factors. During this critical time, the key is to highlight the unique attributes or benefits that set your vehicle apart from the competition including:
- Equipment and options (heated seats, rear seat entertainment, leather, etc.)
- Lifestyle features (family car, sporty, fun, tough utility, etc.)
- Vehicle history (Carfax one owner, original warranty, low mileage, etc.)
- Certification program features (extended warranty, etc.)
- Value (price compared to sticker, Kelly Blue Book or previous dealer price, etc.)
This concept, known as “Consumer Optimized Advertising” can move you beyond generic online ads created with VIN explosions to high impact ads that promote the unique benefits and value of every vehicle. With Consumer Optimized Advertising, dealers can convert online browsers to on the lot buyers, thus setting up their business for stronger profitability.
By applying the techniques of Consumer Optimization, dealers will be positioned to create a new power shift - the shift away from irrelevancy. Now is the time to take the lessons of the Google relevancy model to achieve online and on the lot success.
Pat Ryan Jr. is the co-founder and chief executive officer of First Look by INCISENT Technologies, the leader in automotive retail performance solutions, which was ranked as the #4 Fastest Growing Software Company in the United States in Inc Magazine’s 2008 Inc500 as well as the #1 Fastest Growing Company in the Automotive Sector. Pat is widely followed as a thought leader and speaker and will be a featured speaker at the 2009 Digital Dealer Conference and Exposition in Las Vegas. Pat can be reached at pat@firstlook.biz.