Archive for month: July, 2013

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July 24, 2013
24 Jul 2013

Playing In The Big Leagues

My how we’ve grown! CarsDirect is very proud to share that Internet Brands – the online media company that owns and operates CarsDirect and our vast automotive network – recently ranked in the comScore Top 50 online properties in the United States by total audience. Even better, our automotive network ranks in the Top 5 online automotive properties by total audience. We’re proud to be among some of the heaviest hitters on the Internet. (Please see below for the list of comScore automotive rankings.)

So how does Internet Brands continue to grow? A major factor is continuously acquiring top notch additions to our portfolio of websites. We currently operate and generate unique content for more than 130 different automotive community websites – enthusiast sites, forums, classifieds, and marketplaces like CarsDirect. As consumers continue to make online media a part of their everyday lives and increasingly research their purchases online, our goal is to provide them with the very best content, on their preferred delivery device, in a clean, innovative, and dynamic fashion.

Perhaps one of the coolest things about working on the CarsDirect and Internet Brands Automotive team is that we eat, breathe, and live automotive passion. We’re proud that these latest comScore rankings illustrate that our growing market share of visitors is spending more and more time with us. Needless to say, if you’re in search of ways to drive more people to your website and ultimately sell more cars, please reach out. We have some great targeted solutions to help you find your ideal audience!

Todd Dearborn
VP Sales, CarsDirect
(310) 280-4282
todd.dearborn@carsdirect.com

 

Top 10 comScore Online Automotive Properties (By Total Audience)

June 2013

1) Yahoo! Autos

2) eBay Motors U.S.

3) AutoGuide.com Group

4) AutoTrader

5) Internet Brands Automotive

6) AOL Autos

7) SIM Automotive Digital

8) Cars.com

9) MSN Autos

10) KBB.com

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July 24, 2013
24 Jul 2013

Do You Know Your Residual Flow Factor?

Guest Post By Sean V. Bradley, CEO, Dealer Synergy

 

Question: What is your Residual Flow Factor?

No idea what I’m talking about? Don’t feel bad. There are thousands of dealerships in this industry that have no idea what I’m talking about when I ask that question. Even worse, they’re not tracking this very important variable of their Internet Sales department.

Residual Flow Factor is the amount of leads that carries over from month to month.

For example, let’s say your dealership generates 500 leads in the month of August. You close 10 percent of those leads and deliver 50 units. How many leads carry over on September 1? That’s right, 450.

The average buying cycle is between 45 and 90 days. So some of these carry-over leads are “dead,” inactive, non-viable opportunities for any of the following reasons:

  • Bought elsewhere
  • Changed mind
  • Can’t afford the vehicle
  • Credit challenged
  • Upside down on trade
  • Unrealistic
  • Bad lead
  • Etc…

However, dead leads should only account for about 200 out of the remaining 450 leads (about 45%). That means that on September 1, you will have a Residual Flow Factor of 250 leads.

So you’ll start the month of September with a minimum of 250 carry over leads, plus you will have another 500 fresh leads for a total of 750 opportunities for the month of September.

Now for the important part: Dealers need to respect the Residual Flow Factor, because it literally cripples dealers every month. Many dealers do not understand the concept of the Residual Flow Factor and in turn do not plan accordingly. They do not have enough sales consultants or appointment setters to handle all of the total opportunities. So dealerships wind up only doing “the best they can” with the leads. They are not able to put enough attention or focus on the leads. They are simply spread too thin, so they covert only the low hanging fruit and let other opportunities pass by.

Let me share an awesome, easy formula you can use to track your department’s reality:

Create a spreadsheet for all SOLD units. Then create three additional columns:

  1. Date the lead came in on
  2. Date the lead closed
  3. Window period

For example:

  1.  Lead came in: August 5th 
  2.  Lead closed on: August 8th
  3.  Window period = 3 days

So, if you sold 50 units in the month of August, you will have 50 “window periods.” Add them all up and divide them by 50. This is your dealership’s “gestation period” (average selling period).

My prediction is that your dealership’s gestation period is between seven to 11 days. And that is NOT GOOD! Remember, the average buying cycle for Internet prospects is 45 to 90 days. If your average selling ratio is only seven to 11 days, it means that your dealership is leaving a lot of money on the table.  Chances are you are not maximizing your dealership’s Residual Flow Factor.  Armed with this knowledge, you can change this today!

If you have any questions about this article or if you would like me to evaluate your dealership’s Residual Flow Factor, please email me at sean@dealersynergy.com or feel free to give me a call at (267) 319-6776.

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry.

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July 24, 2013
24 Jul 2013

Cross Shop Close-Up: 2013 Dodge Dart

The 2013 Dodge Dart is a small model with a big task: reclaim Chrysler’s place in the increasingly ultra-competitive compact car class. Reviving the spirit of the compact Dodge Neon (which was produced from 1995 to 2005), the Dart offers a compelling mix of high-end features, a wide variety of trim levels, enthusiast-focused driving dynamics, and slick styling with neat touches like LED “track lighting” taillights.

Despite support from a slick advertising campaign, the Dart has gotten off to a bumpy start, with sales failing to meet expectations. Many industry experts say that the initial launch challenges (such as not having enough automatic transmission-equipped models on lots) have been overcome, and that the Dart will soon hit its stride. Others say competition from well-established models including the Honda Civic, Chevy Cruze, Ford Focus, and Hyundai Elantra makes it too tough to establish a toehold in the compact market.

As one way to judge the health of the Dart, we used exclusive CarsDirect cross-shopping data from the past three months to take a look at the top five vehicles currently cross-shopped against the 2013 Dodge Dart.

(The percentages refer to the percentage of total Dart shoppers who also cross-shopped the alternate models listed. For example, 19.1% of buyers who shopped a Dart also shopped a Ford Focus.)

 

Ford Focus: 19.1%

Chevy Cruze: 13.0%

Honda Civic: 12.2%

Nissan Sentra: 11.2%

Mazda3: 10.6%

Hyundai Elantra: 10.6%

 

CarsDirect’s take: Looking at the data, the Dart is unique. While we most often see models cross shopped heavily within the brand, the Dart is mostly shopped across brands.  The Avenger is the closest Dodge model, and it doesn’t even make the list of top five models cross-shopped (it’s at 7.1% and 11th on the list). The fact that this model appeals to shoppers of other brands is a good sign for Dodge.

Want custom cross-shopping data for your vehicles? Contact us at 866.852.3784 or connect@carsdirect.com.

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