Developing an effective eCommerce structure

There is an old saying in the retail business that before you build your structure, in order to be successful, the three most important things are; location, location and location.  The reason this philosophy has been followed and stayed around for decades is that it works. In fact most well run organizations have teams of individuals looking all over for that perfect location and dozens of other highly qualified teams to determine exactly how to build the facility which maximize traffic and provide for a pleasant experience.  Understanding their current human resource requirements limitations, they work on the physical structure before spending a dime on anything else, because the structure will ultimately provide the foundation for success.  So how does this play out with eCommerce in the automotive industry?  Well if we apply the same thought, research, design and planning when dealing with structural elements of the World Wide Web your foundation will be built for a successful, efficient and cost effective customer experience.

The reality is that only about 10% of dealerships take their ecommerce structure into account when establishing an internet program. Instead, they haphazardly select various ecommerce components and try to make the process mitigate any short comings due to a lack of proper digital structure.  Thinking of your ecommerce program as a massive roadwork project and spending a few extra minutes to coordinate your highways, intersections, cul-de-sacs, billboards, shopping centers and office space will ultimately pay huge dividends. With the lack of stability in the economy and the need to stretch your dollars to reach the greatest audience wanting to buy and/or service their vehicles, these few extra minutes will solve many of the process issues that you struggle with every day.

Here are structural methods to consider Using familiar terms to which you may relate - point to point, hub and Tiers (1, 2 &3). In general terms each of these present an entirely different way to reach your customers or prospects and may require adjustments to facilitate an efficient integration with your OEM.  It is extremely important to understand the benefits of each and build appropriately.

  • Point to Point:  You are probably familiar with this basic structure as it has been used effectively with some of the most profitable airlines in the world.  The primary design focuses on developing components such as lead aggregators (Autobytel, Dealix, AutoUSA) and  lead generators (Black Book, Autotrader, Cars.com, etc.) being promoted independently with the resultant traveling back to your office (CRM/ILM).  In this case the components act as your shopping center and you have little or no input on how or who sees your inventory.  Your only direct and definitely necessary input is your pricing and custom comments. Without proper attention to both of these elements success will be challenging and even the best process will have little effect on ROI.
  • Hub: As its name implies, it is a gathering place - the ultimate mega shopping complex. The hub structure drives all your ecommerce components back to a centralized source, usually your website. Using this structure requires the utmost diligence on monitoring on all levels - whether they be microsites, display ads, SEO, PPC, etc., or connections to your hub.
  • Tiers: This is by far the most challenging and multi-faceted structure as it requires an extremely close watch on a multitude of details.  It is by far the most commonly used and loosely held together automotive eCommerce structure used today.  The potential for excessive personnel changes, training and management attention is enormous unless all levels are thoroughly planned out and implemented correctly.
  1. Tier:  This tier uses the OEM’s lead generating sources and while most think they have little input into what, where and how to maximize the output, they are wrong.  First having certified staff and becoming a certified internet dealer places you on equal footing with surrounding dealers. Next providing all the necessary information to facilitate the transfer of customers or prospects to your hub (usually website) or office (CRM/ILM) is essential. Finally, limiting the possible additional widgets which may drive your customers or prospects away will facilitate greater opportunities.
  2. Tier: This requires an efficient intersection from your OEM promotional sites and your local brand sites and promotions.  One of the most common issues that arise are conflicts on billboards (search engine marketing & display ads) or cul-de-sacs (third party sources), that may lead to dead ends and should be consistent and carry the most beneficial message to your customers or prospects to be effective.  In addition, whatever message you are currently providing at your shopping center must also provide a consistent and more detailed message than your customer or prospect is expecting.
  3. Tier: The final layer requires the combination of all structures and mandates a clear understanding of the resources (financial and human) needed to maintain all the various processes.  Many dealerships have moved away from this structure because of the difficulty in consistently maintaining a highly trained staff.  Those that have done so and adopted a simplified and transparent system have a higher ROI than those that choose Tier 3. This tier also requires an all-hands-on-line approach to eCommerce and a thorough understanding of all the potential hazards, requirements and combination of processes. Organizational structure at this level is also very complex and maintenance requirements of all areas must be totally understood and verified. 

Whatever structure you choose to adopt, its effectiveness will be contingent on you providing the most efficient, clear, and simple means of a customer or prospect to receive requested information.  Combined with the setting of realistic expectations this will allow for successful dealer/customer engagement.  When developing a structure consider the necessary eCommerce components and interaction with the brand information and allow for minimal process intervention. The biggest mistake you can make is spending excessive amounts of dollars on widgets, training, personnel and processes that cannot work within the structure (or lack of structure) you have in place. Ultimately you may want to consult with your web provider, or a consultant that works closely with them, to help choose, design and coordinate an effective digital structure. 

 

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