Tag Archive | "Digital Marketing"

CDK Global to Acquire ELEAD1ONE

HOFFMAN ESTATES, Ill. and ATLANTA — CDK Global Inc. today announced it has entered into a definitive agreement to acquire ELEAD1ONE. The value of the transaction, which was unanimously approved by CDK’s board of directors, was not disclosed.

The deal was first reported on Sunday by The Banks Report, which described the acquisition as checking off “several boxes for CDK while filling a big product hole — a viable integrated CRM platform with significant market share.” According to CDK’s press release, ELEAD1ONE works with approximately 4,000 auto dealership across North America.

“As we looked at how best to rapidly address the needs of dealers in today’s evolving marketplace, we determined that ELEAD1ONE’s centerpiece CRM offering a fully integrated suite of layered applications fit well with our diversified product offerings,” said Brian MacDonald, president and CEO of CDK Global. “In addition, ELEAD1ONE’s well-regarded customer service capabilities will complement our focus on delivering an outstanding experience to its dealer customers. We look forward to helping dealers deliver a great customer experience with our combined products and services.”

ELEAD1ONE’s automotive customer relationship management (CRM) software and call center solutions enable seamless interaction between sales, service and marketing operations to provide dealers with a customer acquisition and retention platform. According to The Banks Report, CDK is acquiring a company with annual revenue of more than $100 million.

“ELEAD1ONE dealers demand superior performance from the most advanced and integrated CRM software solution in the automotive industry,” said ELEAD1ONE Founder and CEO Hugh Hathcock. “Recognized as a clear industry leader, ELEAD1ONE has consistently developed and delivered powerful cutting-edge dealer solutions, combining CRM with our successful ELEAD1ONE Contact Center, and Fixed Ops platform.”

Judy Hathcock, founder and president of ELEAD1ONE, added, “Together with CDK, the integrated companies will leverage vast resources to continue to invest in state-of-the-art information technology, innovative software application development, and highly effective communication platforms that emphasize superior user experiences with significant measurable ROI and reporting. Together we remain dedicated to focusing on innovation, support, and delivering the highest quality technology, products, and services.”

According to The Banks Report, the deal was submitted to the Federal Trade Commission several days ago and should close within a month following a regulatory review. The FTC halted CDK Global’s acquisition of Auto/Mate this past March. The media out said it does not believe federal regulators will block this transaction.

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DealersLink to Unveil Vehicle Pricing Tool at NADA Show 2018

BROOMFIELD, Colo.  — Integration and networking technology provider DealersLink today said it will unveil a new-car pricing tool at the NADA Show 2018, which will take place March 23-25 in Las Vegas.

Dealerslink officials will be on hand inside Booth No. 337N to demonstrate the firm’s new-car pricing tool as well as its dealer-to-dealer Marketplace, inventory management, booking, live market pricing and photo management tools.

The company’s new-car pricing tool actively monitors and manages new-car pricing. Feature include the following:

  • Competition View: Designed to allow dealers to know who their new-car competitors are and how they are pricing their inventory to market.
  • In-Depth Descriptions: Vehicle listings include robust descriptions that include all the features and equipment consumers are looking for.
  • Rebate and Incentive Management: It’s critical for dealers to have all rebates and factory incentives listed on their inventory 100% of the time and properly disclosed. Consumers don’t want to wait while a dealer checks on the price and rebate, and promises to get back to them.
  • Automated Updates: Manually pricing and updating new cars can take up to 10 to 15 hours per week to do properly. DealersLink’s new-car pricing tool helps to automate the process and free up staff to do what they do best: sell vehicles.
  • Supply and Demand: Gives dealers insight into supply and demand for each vehicle, and helps inform purchasing decisions and dealer trades.

The new tool is available for one flat fee per month, with no contracts and no setup fees, according to officials.

“We’re offering the most affordable new-car pricing tool in the industry,” said DealersLink CEO Mike Goicoechea. “On average, dealers who switch from their current tool to ours are able to save more than 50% off their monthly bill. Plus, we don’t charge you an extra fee for each additional franchise under your roof.”

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Study: Dealerships Missing Out With Facebook Messenger, After-Hour Leads

SCOTTSDALE, Ariz. — Only 16% of the 1,500 dealerships mystery-shopped by Digital Air Strike responded to internet leads within 15 minutes and 18% didn’t respond at all. The findings are part of the social media firm’s 2018 Mystery Shop Study, which was conducted over a four-month period and included leads submitted on a dealers’ websites and through Facebook’s Messenger app.

While the remaining 66% of dealers did respond to the test leads submitted, Digital Air Strike noted that industry best practices indicate that a customer is three times more likely to visit the dealership when a lead is responded to within 10 minutes.

“We wanted to get a better understanding of how dealers truly respond to leads,” said Alexi Venneri, co-founder and CEO of Digital Air Strike. “The results reveal a tremendous opportunity for dealerships and manufacturers to improve their lead responses, including increased use of Facebook Messenger combined with the power of Facebook Marketplace, and to leverage more engagement tools such as financing calculators, vehicle photos/video and after-hours quoting tools that can bridge the gaps we found in automotive consumer interactions.”

As part of its mystery-shop, the social media firm sent tested dealers a specific vehicle request that included questions that required specific answers. The top dealership ranked by OEM that responded with the information requested and did so within 15 minutes included Fiat at 34%; Toyota at 20%; Mercedes at 18%; Ford at 17%; and BMW at 16%. The average time across all stores and all OEMs to respond to a lead was more than 24 hours, with some dealers taking up to four days to respond. Additionally, only 36% of dealers shopped responded to requests submitted afterhours.

“This potentially represents lost business as multiple manufacturers have stated that up to 40% of all consumer leads are submitted when dealerships are closed,” the firm noted in its press release. “Consumers are shopping after work when no one is at the dealership to respond; however, there are innovative tools that can provide intelligent responses to consumers even after hours.”

The mystery-shop also revealed that 64% of dealerships didn’t respond to leads on Facebook Messenger, which 1.3 billion consumers use as a direct line to reach business. Making that connection even more relevant is Facebook Marketplace, which allows pre-owned vehicle inventory to automatically be showcased to consumers closest to dealerships.

“Whether it is a lack of knowledge or ability to leverage this powerful tool, many dealers are missing sales if they don’t respond to consumers on Facebook,” the firm noted. “Consumer use of Facebook Messenger is exploding and, according to Facebook, “autos” is one of the most popular categories on Facebook Marketplace with millions of Americans looking at vehicles each day.”

According to study results, only 25% of dealerships provided pre-owned vehicle options, and only 15% provided additional new-vehicle options. That means that 85% of dealerships are missing the opportunity to give customers options that may be better suited to their budgets.

“According to multiple industry sources, up to 45% of all consumers end up purchasing a different vehicle than the one they originally inquire about, so providing multiple vehicle choices in a response to a consumer has been shown to increase the chances of closing a deal with that consumer,” Digital Air Strike noted.

Additionally, 53% of dealerships shopped by the social media firm did not respond with a price or any vehicle information despite requests for that information. And only 31% of those that did provided included lease and rebate information.

As for content included in dealers’ responses, only 19% included vehicle photos and only 1% included video in their response. The firm pointed to findings in its sixth annual Automotive Social Media Trends Study as evidence that content does matter, with 48% of car buyers saying a faster and more detailed response that includes actual vehicle photos and video would make them buy from one dealership over another.

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CDK Global, CarGurus Partner on New Marketing Solutions

HOFFMAN ESTATES, Ill. — CDK Global today announced a strategic relationship with online automotive marketplace CarGurus. Through this collaboration, users of CDK websites will gain exposure for their inventory on CarGurus.com as well as leads from CarGurus shoppers.

CDK will also leverage CarGurus’ anonymized, aggregated data in its suite of automotive digital marketing solutions, allowing the company to create personalized shopping experiences and cross-site consumer behavior attribution.

“We are excited to be able to offer our dealers more leads and more inventory exposure through CarGurus based on our new integration,” stated Max Steckler, product officer for CDK Global. “The CDK Customer Cloud becomes that much more powerful in being able to deliver more targeted and personalized messaging with the addition of CarGurus data.”

The integration also allows dealers to gain a more comprehensive understanding of anonymous in-market consumer behavior across the CDK website eco-system, the CarGurus.com website, and manufacturer, regional and group websites. Car dealers with CDK websites will now be able to precisely target personalized content on their own websites to interested shoppers who previously visited CarGurus – even if they never looked at a specific car on the dealer’s site.

CarGurus uses proprietary technology and data analytics to help shoppers search more than five million car listings and quickly identify great deals from top-rated dealers in their local areas. CarGurus.com now attracts more than 23 million monthly unique visitors in the United States, positioning CDK dealers to reach a significant audience of in-market shoppers.

“Car shoppers rely on CarGurus for transparency and validation, and we are excited to be working closely with CDK Global to enhance that experience,” stated Marty Blue, senior vice president of business development at CarGurus. “Through our relationship with CDK Global, we’re able to unleash even more power to assist shoppers and drive dealers’ business results.”

As an approved participant in the CDK Global Partner Program, CarGurus reporting will be integrated into the CDK Dealer Command Center. Dealers can expect the integrated solutions to be available in early October.

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New Report Reveals ‘Apparent Consumer Appetite’ for Chatbots

BOCA RATON, Fla. — A new study reveals an apparent appetite among consumers for chatbots, but it concluded that these digital boxes that allow customers to converse with a human or AI-enabled bot still have ways to go before impacting business.

Released today by mobile marketing firm 3Cinteractive Corp. (3C), the Chatbot Consumer Report provides an in-depth look at how consumers interact with chatbots and their preferences on using the technology when communicating with brands. Its findings are based on an online poll of 500 U.S. households.

According to results, a quarter of the consumers surveyed said they use chatbots on a daily basis (40% alone for Millennials).When consumers were asked why they thought chatbots were not valuable, 71% said the chatbot could not answer their question or help them. That means businesses will need to expand the capabilities of their chatbots as the technology advances to keep up with growing consumer expectation, 3C officials said.

When asked which tasks they’d prefer a chatbot to handle for a brand vs. a human, checking order status (46%) and product research (42%) rose to the top of the list. But for other tasks, consumers polled still preferred humans over chatbots — 50% for customer service inquiries, and 44% for making an appointment or reservation.

This data is critical for brands since 83% of respondents said they would be more loyal to a brand for offering a chatbot that enables these tasks. Additionally, Business Insider reported earlier this year that 80% of business plan to have chatbots by 2020.

“Choosing the right chatbot strategy for your brand is critical, it’s not one size fits all,” said Margie Kupfer, vice president of marketing at 3C. “Understand your customer preferences and build your chatbot strategy around a specific function that benefits the customer. Starting small and executing your chatbot successfully ensures a positive brand experience and allows you to learn more about your customer in order to scale your chatbot into other business functions.”

Click here to download the complete report.

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TEGNA to Spin Off Cars.com

MCLEAN, Va. — Cars.com is going public, the firm’s parent company, TEGNA Inc., announced on Wednesday. According to its announcement, the digital automotive marketplace will be spun off, creating two independent publicly traded companies.

TEGNA, which was called Gannett until it spun off its newspaper business last year, is the largest broadcast station group among major network affiliates in the Top 25 markets. And according to the company’s announcement, TEGNA is evaluating “strategic alternatives” for CareerBuilder. TEGNA owns a 53% controlling interest in the job search site. Minority owners include Tribune Media and The McClatchy Co.

The company also announced that President and CEO Gracia Martore, who is also a member of TEGNA’s board of directors, will retire upon closing of the spin-off. That’s expected to happen during the first half of 2017.

“Over the last four and a half years, we’ve taken a series of important strategic steps to increase the value of our business, including the acquisition of broadcast stations from Belo Corp. and London Broadcasting, the acquisition of full ownership of Cars.com, and the spin-off of Gannett publishing business,” Martore stated in the company’s press release. “The spin-off we’re announcing today is the next logical step in our ongoing transformation to best position our market-leading businesses and continues our strong track record of creating value for shareholders.”

Cars.com, which completed its acquisition of DealerRater in late July, will remain headquartered in Chicago once the spin-off is completed. It will trade under the ticker symbol “CARS.” Officials said the planned spin-off would result in a trading multiple for Cars.com “that is commensurate with other pure-play digital companies, greater flexibility to pursue merger and acquisition opportunities, and benefits associated with aligning capital structure and allocation with specific business needs and opportunities.

As an independent company, officials added, Cars.com will be able to “focus more sharply on its key strategic priorities,” which, according to the company, include rapid innovation and “active evaluation and pursuit of acquisitions to open up new, adjacent opportunities.”

TEGNA, which will remain headquartered in McLean, Va., will continue to trade on the New York Stock Exchange under the symbol “TGNA.” According to the company’s announcement, TEGNA’s management team will develop and present detailed separation plans to its board of directors over the coming months. Completion of the spin-off will be subject to certain conditions, including receipt of final board approval, receipt of an opinion from tax counsel regarding the tax-free nature of the distribution, and the effectiveness of a Form 10 registration statement. The latter is expected to be filed with the Securities and Exchange Commission later today, officials said.

According to the company’s announcement, the impending spin-off will allow TEGNA to focus on opportunities specific to its broadcasting business, which consists of 46 TV stations. They include the No. 1 NBC affiliate group, the No. 1 CBS affiliate group, and the No. 4 ABC affiliate group.

The company’s current debt, according to officials, will remain with TEGNA. However, TEGNA expects to receive from Cars.com a one-time cash dividend immediately prior to the spin-off. It will be used to maintain TEGNA’s current credit rating.

The completion of the spin-off will also mark the end of Martore’s 31-year career with TEGNA and its predecessor Gannett Co. Inc. Upon his retirement, according to the company’s announcement, Dave Lougee will assume the role of CEO and president of TEGNA, while Alex Vetter will maintain his role as president and CEO of Cars.com. The two executives will also serve on the boards of TEGNA and Cars.com.

Lougee currently serves as president of TEGNA Media. He was named president of Gannett Broadcasting in July 2007, and previously served as executive vice president of media operations for Belo Corp. Vetter was one of the original members of Cars.com’s management team. He is credited with helping to shape the company from its initial concept into a leading online automotive destination. In November 2014, Vetter was named CEO and president of Cars.com. The company currently employs 1,300 individuals and serves 20,000 retailers and every manufacturer.

“I am incredibly grateful to have spent more than 30 years servicing this outstanding organization and deeply honored to have had the opportunity to lead TEGNA during its inaugural year,” said Martore, who joined Gannett in 1985 as assistant treasurer. “… It has been an amazing ride, and both TEGNA and Gannett will always hold a special place in my heart.”

As for Cars.com, Martore added: “Spinning of Cars.com from TEGNA will establish two strong, industry-leading companies that are well positioned to compete and to continue to profitably grow in their targeted markets. Each business will have increased strategic, operating, and financial flexibility at a time when the broadcast and digital sectors are both rapidly evolving … Cars.com will have the flexibility to invest in further organic growth and to participate in the active digital automotive M&A market, and TEGNA will have a strong balance sheet and cash flow to continue to pursue investment in organic growth and opportunistic acquisitions and to provide an optimal mix of capital returns to shareholders.”

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