In 2005, 10% of Ford Division’s retail sales came from consumers who started their shopping process through a FordDirect Internet referral. In all, more than 250,000 new Ford, Lincoln and Mercury vehicles were sold through FordDirect Internet referrals, up 15% from 2004.
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Ford also reports that dealers saved money in the process. FordDirect dealers’ average cost per-vehicle-sold in 2005 was only $100, about a quarter the cost per-vehicle- sold with traditional marketing.
“Almost every consumer starts the search for their next vehicle online. Which is good news for dealers because the Internet is the most cost effective way to reach customers with the exact information they are looking for,” said Bill Keith, dealer principal at Freehold Ford in New Jersey and chairman of the FordDirect Board of Directors. “If dealers do not have a strong Internet department and marketing strategy they are losing sales.”
Ford franchised dealers don’t have to work alone as they seek to maximize their Internet presence. They control a joint venture with Ford Motor Company, FordDirect, whose mission is to create this presence on behalf of dealers. Ford claims that this is the only such venture in the industry and that FordDirect has more than 4,500 Ford Motor Co. dealers enrolled in services that turn consumers shopping online into Internet traffic and leads for their local dealer.
“One way FordDirect helps dealers is to track emerging technology and implement it for their dealers, something individual dealers wouldn’t necessarily have the time or resources to do on their own,” said FordDirect President Steve St. Andre.
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By GlobalDataSearch and local search marketing is one example. Search is the fastest growing method consumers are using to find their local dealer. FordDirect manages over 100,000 search terms to drive traffic to dealers. And dealers only pay when an actual lead is generated.
Another example is the technology deployed on the Forddirect.com website. Interactive applications of flash technology allow a customized user experience that mirrors their offline shopping. Consumers can build a vehicle in any order, compare and contrast options with photos and sort inventory visually by their desired features.
“FordDirect gives our dealers a competitive advantage,” said Francisco Codina, Ford Motor Co. Group Vice President and member of the FordDirect Board of Directors. “The power of this company is that it merges the marketing strength of the automaker with the distribution network of the local dealer. This advantage is why we’re handing over additional dealer web services to FordDirect.”
In 2006, FordDirect will be managing Ford Motor Co.’s dealer websites, called DealerConnection. This will provide dealers access to the same industry-leading technology used on Forddirect.com and provide better shopping tools for consumers.
FordDirect will also be managing Ford’s dealer lead management system, SalesPoint, and implementing some enhanced CRM applications. In addition, FordDirect is helping Ford implement integrated lead management.
Integrated Lead Management is an approach that focuses on capturing leads from every advertising source and customer interaction and funneling them through a consistent process and ultimately forwarding them to the dealer. FordDirect began implementation in January by processing consumer requests submitted at auto shows, such as the North American International Auto Show in Detroit. Within two hours of making a request, the consumer’s referral is now in the dealer’s lead management system for follow up. In some cases, consumers receive a price quote from dealers before they even return home from the auto show.
“In today’s competitive market, automakers and dealers need to work together to maximize their sales opportunities,” St. Andre said. “Integrated lead management ensures that you are capturing results and consumer interest from all your marketing activities, treating them in a consistent manner and moving them along in the purchase process with customized offers. The result is a better shopping experience for the consumer and more sales for the dealer and motor company.”
