In the last five years, there has been a rise in the number of sites made available to consumers for the central purpose of connecting businesses with pre-qualified service providers.

These sites provide a more interactive and focused environment than what customers are likely to find in more generic consumer review sites such as Google of Facebook.

The HomeAdvisor Trend

The trend toward specialization in tandem with aggressive marketing made way for sites such as Angie’s List, and now HomeAdvisor and others that have gained popularity among consumers looking to engage contractors for repairs and remodeling projects with a high price tag, where reliability was a non-negotiable.

In the past, we have explored why contractors just like you stand a better chance of securing quality leads through no-cost sites (e.g Yelp) that offer un-gated access to all Web searchers, than by trying to secure leads from gated sites like Angie’s List.

We stand by our recommendation, confident that you will indeed gain ground and exposure on free sites, but today we want you to go one step further.

Let’s take a closer look at how a highly marketed, segment-specific site that is free to consumers but not free to you may potentially increase the number and quality of your leads.

Bottom Line: Should I Join?

Before we touch on whether you should join or not, we want to give you some insider info.

HomeAdvisor is by no means the new kid on the block.

HomeAdvisor started in 1999 as ServiceMagic.com and was later acquired by InterActiveCorp, the original parent company for Hotels.com, and owner of a wide array of well-known sites like Match.com, About.com, Grid.com, Tutor.com, DailyBurn.com, The Princeton Review, and others.

Only four years younger than Angie’s List, and with more online tenure than Yelp, HomeAdvisor definitely has experience in serving prescreened contractor profiles to customers who prefer a pre-qualified lead.

If your decision to join HomeAdvisor will be purely based on the credibility of the site, then our recommendation is to go for it. But before you sign on the dotted line, let us share with you some of the value-added features that may just make it worth your money.

Dual Path of Engagement

HomeAdvisor allows shoppers to find you using two very distinct paths.

The first and most traditional path mimics the experience a shopper is likely to have on a site like Yelp or Insider Pages. Search by category and have specific contractors listed based on star ratings. The second way HomeAdvisor equips shoppers to connect with businesses is by creating pre-qualified leads with detail-rich requests that allow contractors in the area to bid for the project.

It Pre-Qualifies Your Leads

One of the greatest frustrations for tradesmen and contractors has to deal with a high volume of calls from shoppers who are simply testing the waters, or getting quotes exclusively for reference or as a means to contest their property taxes. HomeAdvisor filters their leads by guiding shoppers through qualification paths that request additional information regarding their project.

Their “Match Me” feature will ask potential customers for project specifics like permitting, initial sketches, need for demolition, as well as pre-qualifiers that let the contractor know if the shopper is ready to hire or simply getting and comparing quotes. A pre-qualified lead allows HomeAdvisor to point the lead to the best suited contractor, and equips the contractor with sufficient background to make a more accurate bid, or to pass on the project if the specs are not a good fit for his or her current schedule. 

Home Advisor Gives Shoppers Laser-Sharp Categories

Many homeowners are often frustrated when they are unable to pinpoint a contractor with expertise in specific areas.

Through the provision of expanded categories, HomeAdvisor allows shoppers to view contractors that have significant experience in their area of need.

For example, a potential customer looking for a contracting firm able to handle a kitchen remodel would have to follow this path:

• Additions & Remodels?
• Kitchen Remodel?
• Maintain or Change Floor Plan?
• Move or Update Cabinets?
• Move or Update Appliances?
• Update Countertops?
• Update Flooring?
• Update Sink?
• Update Lighting?
• Is the Property Historical?
• Is This an Insurance Claim?

By the time a pre-qualified lead arrives in the hands of a contractor, he or she will have sufficient information to evaluate the potential of the project and the types of experts needed to complete the task. A pre-qualified lead is a lead that is easier to convert into real business. 

HomeAdvisor Lets You List Credentials, Licenses, and Areas of Expertise

Because most contracting is in direct association with a family’s greatest investment – their home – making sure a contractor or remodeler is trustworthy and reliable is a first priority for homeowners.

HomeAdvisor is one of the very few sites that provide active members with specific subcategories that allow you to display credentials, licenses, and areas of expertise.

While you can still post these on other review sites under general descriptions, having a well-designed profile that directs the shopper’s eyes to said qualifications can make a significant difference when it comes to conversion.

HomeAdvisor Allows You to Increase Last-Minute Revenue by Listing Your Profile for Emergency Tech Services

If you are in the business of remediation, or if you are set up in such a way that you can help homeowners navigate the complexities of an insurance claim, then this feature will bring a ton of business your way.

HomeAdvisor offers shoppers a specific tab dedicated to vendors able to provide emergency services 24 hours a day.

For a customer, this could be life-saving.

A business having last-minute business-engagement opportunities can provide you with an additional source of revenue to help you boost your overall profitability. 

It Adds Trust by Conducting Background Checks on Business Owners

This is where HomeAdvisor can truly make a difference when it comes to remaining competitive. The review website runs criminal background checks on the owners of a business, giving consumers an additional data point to increase their peace of mind.

Now that we have explored some of the unique features that make HomeAdvisor a viable option for contractors and tradesmen, let’s talk money.

HomeAdvisor Is Not Free

In direct contrast to Yelp, HomeAdvisor is not free, nor does it allow you to engage or receive leads at a basic level unless you are a paying member. Before you decide to move forward, you can request a free 30-day trial. Additionally, they can set you up to receive live sample leads. While you may not contact these leads, it equips you with the necessary info to evaluate the value this service can or can’t have for your business. 

Claiming of Free Listings

You don’t have to pay to claim your business listing on HomeAdvisor, though. It’s free to get listed, although of course your ability to engage will be more limited than if you paid to receive leads. Keep in mind that claiming your page confirms that the contact info is correct; it also allows you to add details about your business for HomeAdvisor users to review.

To claim your business listing, visit https://www.homeadvisor.com/directory/ and perform a search using your business name OR phone number.

Prices Vary per Market and Type of Job

This is where it gets tricky. Unless you speak to an account representative and get a quote, there is no way to know the cost per lead for your specific niche. The cost of a lead will vary based on the competitiveness of a market as well as the potential price tab of a job. Commercial leads are always more expensive than residential leads. Keep in mind that a lead is not a guarantee for business; rather, it is a contact that has been prequalified. Leads for mid-price contracting services, such as carpet cleaning, can cost from $20 to $80 for a commercial lead.

Leads Are Sent to More Than One Contractor

Like we mentioned before, leads are sent to multiple contractors. Before you move forward with this type of engagement, we want to encourage you to do your homework, and make sure that you are competitive in terms of quality and pricing when comparing yourself to other listings on HomeAdvisor. If you are confident your offering is competitive, then go ahead and give HomeAdvisor a try.

HomeAdvisor is not for everyone, but we feel it has sufficient strength as a review and marketing platform to be worth considering.

Make it a point to manage and monitor all your reviews, from no-cost as well as paid review sites like HomeAdvisor, to better understand which channels are best suited for your business. To best handle review traffic from multiple sites, consider the benefits of incorporating review monitoring and reputation management software to your online marketing strategy.

If you’re into the wedding business as a supplier, you’ve probably heard of The Knot.

As one of the largest online resources for wedding news, trends, information, and inspiration, TheKnot.com helps its users — couples getting married — plan the perfect wedding. The site was founded by husband-and-wife team Carley Roney and David Liu, who had realized that better resources would have made planning their own nuptials a lot less stressful.

How Consumers Use The Knot

One of the most popular features of The Knot is the user ability to create a free wedding website, keep guests up-to-date, and share all of their registries in one place. The site also offers a suite of planning tools — including checklists, wedding day timelines, vendor lists  — for helping stay organized.

TheKnot also helps users find and connect with local vendors for their wedding: from wedding photographers, venues, bridal salons, and jewelers to DJs, wedding bands, florists, photo booths, and hotel room blocks. The site rates these vendors and providers with a collection of TheKnot reviews, which are based on the opinions and experiences of other customers.

TheKnot.com for Business

The Knot Pro is a business program that connects wedding suppliers and vendors to over 12 million TheKnot users. Enlisting in it brings your business to the forefront on the Knot, while also enabling you to create a personal portfolio or storefront for making the best first impression and showcasing your work.

According to Molly Meyer of Nuphoriq, signing up for the Knot and joining their wedding network can add plenty of value to your business. Four levels of profiles or business listings — Limited (free), Lite, Standard, and Featured — are designed to help you personalize your pitch as well as gain varying levels of visibility in the eyes of couples getting married.

“The Knot is No. 1 in number of reviews, in number of unique visitors,” Meyer wrote. “It’s the No. 1 wedding planning app and it leads in a few other big-time categories. Brides and grooms are on this site — and often.

“You will find all types of couples with all types of budgets and all types of ‘dream weddings’. Your bang for your buck lies in The Knot. The reach is so diverse and huge (and) your profile will appeal to many of these (granted you’re using the right strategy).”

TheKnot Reviews: What You Need to Know

Online reviews of your business on The Knot can make or break your business reputation. If negative reviews convince 94 percent of consumers to avoid a business, it’s crucial for suppliers and vendors to have the ability to effectively manage TheKnot reviews and listen to customer feedback.

Brides, grooms, and users who helped plan a wedding can share their ratings and opinion by writing a review of their wedding vendor. Here’s what the form looks like on The Knot’s website:

Throughout the wedding planning process, TheKnot.com reminds couples and users how important reviews are. This helps consumers discover the most highly-rated wedding vendors and local businesses get more leads.

Reviews written for your business will be displayed on your storefront on TheKnot.com

Make TheKnot.com reviews work for your business.

Gain more reviews by asking customers to share their feedback. Don’t hesitate to ask your customers and send a review generation request or customer satisfaction survey. Be sure to include a link to where they can leave a review on TheKnot. By gaining as many reviews from brides and grooms as possible, you can even get the chance to be recognized through The Knot’s Best of Weddings awards.

Listen actively to feedback. Whenever a new review is posted, The Knot will automatically send you an email containing a portion of the review and the star rating. Keep an eye out for these notifications in your inbox and be sure to use customer feedback in order to identify areas of improvement and opportunity for your business.

Join the Knot Pro. Enrolling in The Knot Pro allows you to highlight your 5-star ratings and best theKnot reviews.  

Respond to reviews. If you’re in the Knot Pro program, you’ll have the ability to respond to TheKnot reviews using your user dashboard. Each review will have a “Respond” option, and a preview of your response will be displayed alongside the review. You’re also able to edit your response or comment or delete it at any time.

The Knot also allows vendors to respond to reviews posted on the site’s message boards. Here are step-by-step instructions on how to do just that:

• If you see a post you’d like to respond to as a vendor, draft your review response and make sure it doesn’t violate any of the community’s terms of use and content guidelines.
• Send your response to theKnot review, along with the URL of the post, the name of the board, and original poster and date, to vendorresponses@theknot.com.
• The site will review and, if it’s approved, post your response. No need to post the response yourself; otherwise, the Knot will have to remove it.

Arrange the order of your reviews. You can choose the top three reviews that you want displayed first on your business profile. On the Reviews tab within My Account, under “Manage my reviews,” you’ll see all theKnot reviews for your business.

Each review has the option to “appear first” and you can select one main review and up to two other favorite reviews to display as featured reviews. All other reviews will appear after your selected top three reviews, in chronological order (newest to oldest).

Need to Manage TheKnot Reviews?

If you’re in the wedding business, finding the right technology partner in managing online reviews and customer feedback can be crucial to your growth and success.

Here at ReviewTrackers, we work with thousands of local businesses, suppliers, and vendors, helping them respond to reviews (on TheKnot.com and other wedding-specific review websites), generate more testimonials, act on what customers are saying online, and deliver better customer experiences. Take our software for a test drive by requesting a demo today.

Online reputation management for real estate agents is more important than ever.

One of the major deciding factors for millennials – who are reaching the age when they’re thinking of buying a home – are online reviews at 61 percent as they tend to look online as their primary source of information on real estate agents.

In order to stay successful, real estate brokerages need to maintain a favorable reputation through online reviews. Here’s why it’s important.

1. Reviews are Referrals for Real Estate Agents

A personal referral for any business carries some weight, but online reviews work in the same way for real estate agents. In fact, 72 percent of consumers trust online reviews just as much as personal recommendations.

Unfortunately, online reviews are the least common feature included on the websites of commercial real estate brokerages at 36 percent. Agents can benefit from more first-party online reviews on their website because it can increase the site’s ranking in local search results. It’s an easy way to distinguish yourself from the competition.

These first-party reviews also need to be recent. Research shows that 77 percent of customers consider a review irrelevant if it’s older than three months. In addition, 18 percent of customers are only interested in reviews posted in the past two weeks.

2. More Reviews Are Great for an Agent’s Online Reputation

Those numbers make it clear that both agents need to increase the frequency of reviews from customers.

So how do you do get more feedback? Just ask. Doing so shows customers that an agent cares about their online perception as well as the feedback of each customer.

Reviews can also help expose pain points. It’s up to agents to fix these issues, and customers expect their feedback to have a direct impact on changes. Nearly 89 percent of Americans believe that businesses should use both positive and negative feedback in order to improve their service.

There’s even a chance to convert negative comments into favorable ratings by responding and solving the issues listed in the review. Research shows that 80 percent of customers believe that a business – or in this case an agent – cares more about them if management responds to their feedback.

3. Reviews Add a Human Element in a Digital World

Even with the meteoric rise of sites like Trulia and Zillow, most people still prefer to use a real agent rather than go through the house buying process alone.

A recent survey showed that 83 percent of the consumers worked with an agent to help with the purchase of a home.

Here’s why: property is a major purchase, and people want to work with someone they can trust. Consumers are still wary of trusting their real estate future to an online business.

For many consumers, a digital platform like Zillow is actually a way to get more information on properties and agents before they engage with real estate brokerages.

To make the most of the digital transformation in real estate, make sure your brokerages’ reviews on Zillow and other websites are top-notch. Consumers will be vetting you even if they don’t realize it.

4. Reviews Help Real Estate Agencies Attract Top Talent

There’s a heavy demand for real estate agents, and brokerages can attract more agents in two ways:

• Employing a technology-first approach to their operations.
• Maintaining a positive employer brand on sites like Glassdoor.

Embracing Technology

A major hurdle for 48 percent of real estate brokerages is the pace at which they have to keep up with technology. Brokerages that don’t adapt quickly to new innovations will have trouble retaining the best young agents, who want to engage with prospects through social media, SMS, and videos.

By using the latest innovations, agents can improve their communication with clients searching for a home, which equates to a better overall experience. Happy clients lead to more positive reviews, which helps brokerages retain agents for other potential homeowners.

A Positive Outlook

Positive reviews are not just for agents. They’re vital to real estate brokerages as well, which need to maintain positive ratings on Glassdoor, Indeed, and other employer brand sites.

One way to get positive feedback is through employer branding, which involves more engagement between employees and the leadership team. With brand training, constant communication, and listening to employee feedback real estate firms can turn agents into brand ambassadors.

The result is that each agent will feel like they have a stake in the company’s success, which converts to a positive online reputation via reviews. More positive reviews will attract potential employees, and more importantly, the best agents to fit the brokerages’ needs.

Get the Best Agents with Great Reviews

If anything, the rising dependence on a digital reputation is a positive addition to the real estate industry. Brokerages should be more vigilant in monitoring online feedback left by customers and use their online presence to create an attractive brand (to prospective employees as well as future customers).

With online reviews, real estate brokerages also show that they’re adapting to current technology, which will attract better agents and more customers.

In terms of the customer experience, buying a car isn’t quite the same as dining at a restaurant or checking into a hotel. You don’t end up buying a car in the evening after having the thought occur to you in the morning.

This makes automotive shopping typically more daunting. To start with, a car is a big-ticket item — for most Americans, it’s the second most expensive thing they will own after a house. Also, between research and negotiations, there are a hundred other things to consider: loan costs, maintenance and insurance, vehicle history reports, safety ratings, rebates and financing programs, what-have-you.

• According to a 2014 study by J.D. Power, automotive shoppers spent an average of 14 hours researching cars online — visiting dealership sites, reading reviews, making price comparisons, using online shopping tools — before making a purchase decision.
• A 2013 poll commissioned by AutoTrader.com, meanwhile, found that 75 percent of the time that consumers devoted to buying a car was spent online.

They don’t stop interacting on digital channels after buying a car, either; automotive shoppers are also increasingly active when it comes to leaving online reviews and feedback about their customer experience.

• According to automotive research site Cars.com, the breakdown, by type of car, for reviews and customer feedback is as follows: used-car sales at 38 percent, new-car sales at 37 percent, and service at 24 percent.
• According to the 2016 J.D. Power report, customers on average will positively recommend the dealership from whom they purchased their vehicle six times, with younger buyers being slightly more likely to recommend (6.2 times) than those older than 55 (5.2 times). These numbers can be improved when dealers offer an outstanding customer experience: getting 10 points on a 10 point scale in terms of experience can lead to a rise in the average of recommendations to eight positive comments.

Automotive sector becomes more customer-centered

In a competitive marketplace that sees shoppers using the Internet as a major research tool to guide their purchase decisions, as well as a platform for sharing customer experience and feedback, it makes sense for the automotive sector to tune in and stay engaged.

In today’s information-intensive climate, automakers and dealerships must also continue to use data to better understand the needs, desires, and journeys of their customers.

Here’s the good news: according to new research by Forbes Insights and SAS, automotive businesses are taking the lead in embracing data and predictive analytics to enhance the customer experience. Currently there’s a strong push within organizations to:

• Gather real-time insights based on customer data;
• Systematically develop data and analytics capabilities to improve the customer experience;
• Achieve a more complete or unified view of the customer in order to increase levels and quality of engagement;
• And present enterprise information to key decision-makers in a format that’s accessible and highly integrated.

Entitled “Blazing the Trail From Data to Insight to Action”, the Forbes Insights report is based on a survey of over 100 executives of large global organizations. Here are some key findings:

• Automotive (66 percent), along with manufacturing and industrial, is the leading industry group in terms of “providing a superior customer experience through a well-developed and designed enterprise data analytics effort.” (It even ranks ahead of the tech industry and retail.)
• 63 percent of respondents said that data analytics allow them to more accurately predict customer needs and desires. 60 percent, meanwhile, turn to data in order to improve customer service, and 55 percent do so to gather greater feedback essential to product and service innovation.
• Automotive execs agree that other top benefits of data analytics include seeing managers and employees become more confident about their decisions (50 percent) and enjoying greater collaboration between departments (47 percent).
• The top five data sources being used by companies to better understand and manage the customer experience are: 1) customer databases, 2) digital channels (website, mobile, apps, review sites, etc.), 3) customer relationship management (CRM) systems, 4) point-of-sale systems, and 5) social media sites.

Customer experience is the key to creating value in automotive

While the process of enriching the customer experience through data analytics is still considered as being in the infancy stage for majority of global organizations, executives have found the results of their early initiatives to be extremely positive.

For the automotive sector, this new focus on understanding the customer signifies an important shift in perspective — from a “fascination with chrome” to a “fascination with people,” as brand and growth expert Felix Stöckle described it.

It’s no longer just about the product

“Until recently, if you had asked a senior manager at a car manufacturer the three most important things as far as cars were concerned, he probably would have answered: ‘First, the product. Second, the product. And third, the product.’ This mindset is increasingly becoming a thing of the past,” Stöckle wrote in an analysis of how the automotive industry is reinventing itself.

“The automotive industry has recognized the sign of the times… trying to avoid mistakes that have been made in other sectors. (Previously), sales funnels were attempted at the outset to fuel desire through emotional advertising, and the actual sales process began in the minds of the managers when the potential buyer arrived at the dealership. Now, the auto industry has recognized that it needs to build relationships with their customers beyond the average four-year upgrade cycle to the latest model, and that they cannot leave this to the dealership. Customer experience and customer relationship management become a crucial factor in succeeding.”

Key insights for automotive companies

The Forbes Insights report offers another demonstration of how data-driven customer experience management can drive success in the marketplace.

Indeed, automotive businesses — car dealerships, service companies, auto repair shops, etc. — that strategically allocate their resources to strengthen their customer experience focus stand to gain an edge over the competition.

To truly understand needs and desires, capture the voice of the customer

The worst way to learn more about the customer is to guess. In a world where so many channels have made available so much customer-generated data, your organization can’t just sit around in the conference room and mull over what you think customers want. Predictive marketing isn’t founded on guesswork.

So talk to your customers. More importantly, listen to them. The voice of the customer can be heard across a wide range of platforms: social media posts, online review sites, consumer surveys, phone calls and E-mails, feedback channels, etc. Staying competitive requires a genuine understanding of customer needs and desires, but you won’t be able to gain that kind of understanding without first listening.

Be active in managing your online reputation

Car buyers are engaging with online content from research and planning all the way to the post-sales phase. This makes it critical for you to manage your online reputation, and to ensure that user-generated content about your company attracts — instead of drives away — potential customers.

It’s not enough to track and monitor your reviews, though. Managing online reputation also requires a commitment to outstanding customer experiences and service. Making high-quality cars will always be important, but this alone won’t cut it in a competitive market where customer experience is the key to creating and delivering superior value.

Expand data acquisition to gain and generate insights

Global leaders in customer experience know how to make sense of the data that’s available to them. This isn’t easy: according to the Forbes report, approximately 23 percent of companies still cite difficulties in understanding their data-to-insight processes.

As the data analytics landscape matures, you can’t get left behind. Embrace all the ways data can enhance customer experience, and make this a part of your corporate DNA. Equipped with actionable, data-driven insights, you can more effectively create customer experiences that open the door to a powerful brand connection with automotive buyers.

As the economy comes out from the recession, positive economic trends have resulted in four years of rising volume and price of vehicles.

In 2013, the auto industry had one of its best years ever, with a little less than 16 million new vehicles sold. The sales trends for 2014 appear to be slightly less aggressive, with results likely to be slower than the year prior.

A slowdown in the overall sales of new vehicles demands that dealerships remain on top of the sales strategy and aim to maximize margins while moving the highest possible volume. There are many tools and strategies available to car dealerships to maximize every opportunity in a highly competitive market. Positioning a dealership ahead of the competition is often determined by the dealership’s ability to select the right tools and strategies specific to the market climate, and implement change quick enough to consistently gain wallet share over the competition. Engaging new customers using online shopping tools has become the bread and butter of the automotive sales industry, with some websites having more traction than others.

Originally a printed periodical based out of Detroit and owned exclusively by the Steinlauf family, Edmunds.com has grown to be one of the most trusted digital resources for car shopping. The Edmunds.com website features listed, average, and sticker prices for new and used vehicles. It is also home to a comprehensive database of national and regional incentives and rebates available through different car manufacturers.

Edmunds also features dealer and inventory listings, professional reviews based on test drives, and tips and advice on all aspects of car purchases and ownership. In addition, the company circulates free e-mail newsletters to voluntary subscribers. The website allows for consumers to provide reviews of dealerships, and equips consumers with sophisticated shopping tools such as the TMV (True Market Value) trading tool. While this is a consumer-focused tool, the information it provides can be extremely useful when combined with both dealership and vehicle reviews when making strategic decisions related to pricing.

What Is the TMV Tool?

The True Market Value tool is a proprietary database that combines the sticker value of a vehicle against the average of what people are truly paying for the same model in your area. In short, the tool will equip the buyer to make a reasonable offer aligned with what the market dictates, based not only on the MSRP (manufacturer’s suggested retail price) but also on supply and demand.

How Can This Tool Benefit a Dealer Attempting to Increase Sales?

To better understand how this tool can be useful to dealerships, we must first go back to the basics of how car sales work. If you are a dealership, then you are keenly aware that a good percentage of your profit as well as bonuses for your sales team are the direct result of bonuses and incentives provided by the manufacturer. To this end, volume, particularly as the month is about to close, is essential to the sustainability and profit margins of any dealerships. In many instances, the incentives provided by the manufacturer are such that the dealership might be willing to go without a direct profit in order to meet sales quota, particularly as the end of the month approaches. The secondary but no less important source of revenue for a dealership is based on margin between their cost and the final sales price. Creating a competitive balance that takes into account your volume as well as your margin of profit is the secret sauce to a successful dealership.

In the past, it was quite difficult for dealerships to have real-time access to the final prices offered by competitors in real-time. For this reason, business decisions related to pricing were made in a highly insular environment, and often the only financial reference available to a dealership was a month-to-month comparison. The TMV, while advantageous to shoppers, is also a superior tool in equipping dealerships with real-time information to make pricing decisions that may result in pricing negotiations that are quicker, more balanced, and provide the salesman with sufficient information to maximize the opportunity without losing the sale to another dealership. This is combined with how the customers perceive the vehicle as well as the standing of the dealership.

The assumption when using TMV is that you are quite frequently dealing with a customer that has either conducted online research or has visited other dealerships, and might be ready to close a deal if presented with just the right pricing and incentive structure.

How to Use the TMV to Gain Competitive Advantage over Other Dealerships

Use the TMV to have a real-time awareness of pricing trends and ensure the deal you offer a potential car buyer maximizes your revenue, while remaining close enough to what TMV considers to be an average price for the vehicle based on recent sales data. Keep in mind that if you lower your price too much to secure an end-of-cycle sale and reach your volume goal, you are likely to affect the overall average, which will impact the potential price of future sales. By properly utilizing the data available, salesmen will be equipped to make decisions that give them an edge over other dealerships in the region.

What Else Should a Dealership Take into Account When Deciding on a Price?

Dealerships need to see the bigger picture. Aside from a sound pricing strategy, the long-term goal should be to trigger purchasing experiences that generate brand and dealership loyalty as well as potential online and offline positive reviews. If your dealership is struggling with your overall online reputation, then there might be value in creating pricing structures likely to capture new, satisfied customers, even at the expense of some margin loss. The idea is to create experiences that boost the dealership’s overall image. As image improves, so will the flexibility to price slightly higher as new customers perceive a higher overall experiential value.

TMV is just one of the many tools available on Edmunds.com to help consumers make educated decisions about their new or used vehicle purchase. In addition to using the tools, it is imperative that dealerships spend time building relationships through engaging with those that have provided dealership reviews on the website. By guiding the online conversation, dealerships create profiles that instill trust as potential customers browse their pages and inventory.

If your dealership is not yet fully managing its reviews and online presence on Edmunds.com and other popular review websites, don’t delay getting onboard. The potential to capture new audiences and bring buyers in the door is significant, and it is likely to continue growing as the Internet penetrates all aspects of the consumer experience.

It should not come as a surprise for those in the business of selling cars that the Internet is the first point of engagement when a potential buyer is trying to locate a new or used vehicle.

Not only is it the first point of contact, but it is also the point of sale for over one-third of all new-car transactions in the United States. The rise of Internet sales has changed the rules of engagement, and those unwilling to adapt responsively are missing out on potential sales that may mean the difference between average and superior sales performance. Internet sales have become the great equalizer for dealerships that lack geographical advantage or happen to be in a location that has sales-tax advantages, as compared to other nearby locations.

Over one-third of all new-car transactions in the United States happen online.

With this in mind, new automotive dealerships need to fully understand what it takes to stand out when their product is exactly the same as the one featured by their competitor.

The Differentiator for Online Car Sales

We hear it a lot. For businesses of any size, service is often the key differentiator, and one of the strongest drivers for loyalty and repeat business.

Internet car sales, however, are not triggered by service. There is no denial that quick, accurate, and polite responses via phone and email may give a car dealership a competitive advantage, but at the end of the day, when a savvy shopper is using the Internet to compare apples to apples, service will only take you so far.

Finding the Right Car at the Right Price

Online car shoppers tend to be more research-oriented and discerning when it comes to making an automotive purchase. Pushy sales persons, balloons, and the need for immediate gratification do not sway them.

Instead, their goal is to connect with the car of their dreams, down to a particular color. Often, the online shopper has already visited a dealership and test-driven several vehicles, and he or she is now with a short list in hand.

Pricing, of course, is a consideration, as it should be with a high price-tag item such as a vehicle, but the fact is that this type of customer is very aware of the median price of the vehicle of his or her dreams. A good deal is important, but most importantly this buyer wants specific feature sets, such as comfort packages, colors, or safety features.

Where Cars.com Comes In

When consumers are polled about websites commonly used for car shopping, Cars.com is often in the lead.

With over 30 million visits every single month, there is no question about the indispensability of having your dealership and inventory featured on the site. The tools available through Cars.com allow car shoppers to find cars that meet specific criteria, from the basics like make and model, to more refined searches that include things like performance and price point.

It is in the use of advanced search features that you as a dealer have the opportunity to connect with buyers who are willing to purchase a vehicle fully online, or drive away from their closest dealership if it affords them a fantastic deal.

Read MORE: Trends and Tips on Car Shopping Behavior and Customer Feedback Revealed in New Cars.com Study

Feature Comparison and Advanced Car Shopping Searches

When we looked into the research and purchase path followed by shoppers using Cars.com, we identified the car feature comparison as the most valuable in gaining a competitive advantage over other dealerships with similar inventories.

The car feature comparison allows users of Cars.com to compare the features of two or more vehicles at a very granular level, in order to better understand the value offered by each.

Also, when comparing two cars of the same make and model, shoppers have the ability to identify features such as comfort packages, navigation system, or upgrades that may or may not be included in one model versus the other.

Loading Your Car Inventory

Don’t fall into the trap of assuming that purchasers know what comes standard and what is considered an upgrade on a particular auto model.

Because Internet pricing is already highly competitive, making sure that shoppers see every single feature the car offers is perhaps the most important move you can make to direct the sale your way. Let’s take a look at how to get the most from this feature.

• Use standard language: By using the descriptors as provided by the manufacturer, you equip the shopper to make better and easier comparisons when looking at two cars of equal make and model. The core feature set is not a place for creativity or colloquialism. The more standardized your feature list is, the more likely a customer will be swayed your way.
• List absolutely everything: Just because a feature is standard for a particular vehicle does not mean you need to omit it. When customers see two equal cars that most likely have equal features, they are generally far more inclined to purchase the vehicle at the auto dealership with the most features listed. Don’t make assumptions regarding the level of knowledge of a shopper.
• Include a scanned window sticker: A window sticker is a familiar shopping reference for savvier car shoppers. Make it easier to compare apples to apples by including a scanned copy of the sticker.
• Clarify packages: Often, we see listings that refer to “package A” or “package B,” without ever providing the details associated with each package. Provide a list of the features included in the package, and if the package is intended to bundle to increase savings on upgrades, then list retail price for the features, and the savings associated with the bundling through the package.
• Provide clarity when using brand-specific names: Don’t assume that every shopper knows the brand-specific name for a particular feature. For example, if the vehicle has OnStar service, then you may want to list the services provided and the fees associated with the upgraded service.

A listing with all the features, instead of a bare-bones listing, has a greater chance of catching the attention of a shopper and resulting in a phone call or contact form to express interest to purchase or test drive. Don’t miss out on the opportunity to facilitate an Internet sale. Proper listings that are detail-rich will give you the edge you need to gain increased sales volume.

If you manage or own a beauty salon or spa, you are probably aware of how labor-intensive it is to build and secure a reputation. The fact is, 90 percent of your leads will be directly correlated to the opinions of prior customers, voiced either online or offline. Building a strong business reputation can make you stand out from the competition, facilitate the growth of your client base, and ensure repeat business.

The beauty and wellness industry is highly penetrated, and entrants, as well as well-established shops, have to work hard at customer acquisition and retention.

Costly promotions, daily deals, and offline coupons are often the most common but least effective tools embraced by the industry. If you are ready to move your salon or spa to the next level, then it is time you implement an aggressive online reputation management strategy designed to gain new customers and engage current ones.

(Check out: “Brands in Beauty Sector are Leveraging Reviews to Drive Revenue – Here’s How You Can Do the Same”)

When properly managed, online reputation has the potential of increasing your revenue with minimal or no investment. In comparison to other marketing strategies, online reputation management is truly a winner when it comes to return on investment.

Online reviews almost as powerful as word of mouth

The value of word of mouth as it relates to marketing has been widely discussed. Common sense tells us that a face-to-face referral based on relationships can be highly influential in the decision to purchase.

However, more often than not, our customers remain silent and are unlikely to become promoters unless specifically asked. For this reason, focusing on the management and monitoring of your online reviews, where your true advocates congregate to voice their opinion, simply makes sense. Use your positive online reviews as a means to market your venue. Don’t be shy about displaying your overall score for sites such as Yelp or YP.com, and liberally display good reviews on your site or in printed media.

Engage with your reviewers and use multimedia

A great way to maximize a positive review for spa and salon services is to maintain a portfolio of pictures featuring your work. When possible, incorporate images of the results of your work as part of your enhanced profile. Or, why not ask your customers to include their images as an edit to their review?

When you receive a positive review, make it a point to respond with kindness and enthusiasm, and provide enhanced details of the services provided and products used. You might want to highlight new techniques when applicable, or elaborate on what it takes to achieve a particular look. As you engage in responding to reviews, you are not only increasing the potential of repeat business, but also exposing shoppers in your segment to inside information that might tilt the balance in your favor.

Improve your business practices by conducting review management and analysis 

Online reviews provide you with a superior feedback loop that can help you improve the services you provide, by pinpointing gaps and highlighting strengths. Make it a point to study the feedback you receive, and then refine your service and product offering to best meet the needs of your current and potential customers.

In addition to studying your own scorecard, you should also study the reviews of your competitors and seek to capture and imitate best practices. By making corrections on the fly, you are likely to see a quicker trend correction as it relates to negative reviews. (Learn how tracking your reviews can help you improve your business model.)

Combining superior beauty services with disciplined reputation management will most certainly yield business growth and set the stage for increased revenue. If you are interested in learning affordable ways to take control of your online reputation, give us a call for a free consultation.