TURN YOUR BACK ON THE MAN BEHIND THE CURTAIN
Dorothy and her friends seek the all-knowing and all-powerful wizard in The Wizard of Oz. The tin man had a heart, the lion had bravery, and the scarecrow had a brain, and they all wanted to go home. They arrive to meet the wizard after an adventure, only to discover that the wizard is a phony and only a man.
Many auto dealers share their displeasure, realizing that many of their new digital vendors, while not hiding behind a curtain, are selling smoke and mirrors. For far too long, dealers have been exploited.
The multivendor deal is a regular scenario in dealerships around the country. What exactly is the multivendor agreement? It’s a car deal that numerous vendors claim credit for, and the dealer only gets to sell the vehicle once. Each vendor provides dealers with reports that show a favorable ROI and transactions that they are responsible for delivering to the dealership. The difficulty with these reports is that they are all unique, and individual car buyers frequently appear on many reports. It’s as though you’re being squeezed by a falling home.
Many dealers are confronted with a befuddling tangle of reports from several vendors based on various criteria, rendering them unable to take anything to enhance the store. It doesn’t have to be this this. Dealers must expect a yellow brick road of accurate reporting based on their specific criteria. Vendors will always select reporting methods that highlight the positive outcomes they have achieved for the dealership. Don’t rely on them to solve the problem. You’re the customer, and you can’t run your business if your data and reports are inaccurate.
What are our options for moving forward and resolving this problem? How do we gather reliable data so that we can focus more on the things that work and less on the things that don’t? It is possible to make it very simple. All transactions must be assigned to a single source. Who gets credit if a car buyer received a piece of direct mail three weeks ago, a series of emails over the last month, and eventually texted a response to a Facebook Lead Generation ad? The customer was not motivated to act by the mail or email. Although the customer’s name will appear on the list of those who were mailed and emailed, it’s unlikely that they read either message. The last marketing component that motivates the buyer to act and interact with the dealership should be given credit.
Don’t treat your vendors like cowardly lions. It’s time to have a tough talk with your marketing partners. Dealing with the evil witches’ flying monkeys will be a lot easier. Keep in mind that if they are truly your partners, they will desire the best for your business. Invite all of your vendors to a conference call or an online meeting. Tell them how you plan to track your marketing’s effectiveness and return on investment. Let them aware that multivendor deals are no longer available. Tell them that each deal will now only be credited to one vendor. Show them how you plan to figure it out and what data you’ll need from them in the form of reports.
Split deals among vendors have proven to be profitable for some dealerships. If a deal is split, the credit is split, just like on the showroom floor. There is just one deal and one gross for the dealer. Why should a dealer be asked to pay twice for the same deal?
First, decide that you want accurate reporting and that you will no longer pay for the same bargain more than once. Step two is to decide out how you’ll distribute credit for transactions and whether you’ll use a split deal structure. Step three is to figure out what kind of data you’ll need from each vendor in terms of reporting. Last but not least, make the call and lay down the law. Keep in mind that you are the consumer. Dorthey was finally able to return home, and her companions realized they already had everything they wanted. You and your dealership will also receive what you desire.
You don’t require the assistance of a magician. You are the one who controls the purse strings. Your vendor partners must honor your requests and provide the reporting you require to grow and improve your company.
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