Category Archives: Chileautos

Measuring Auto Vertical Websites


Most people accept that the number 1 player in each online classifieds vertical makes the money, number 2 can go alright and generally, good luck being number 3 or beyond.

Yes I am generalising but in most countries it’s not far off the mark, particularly in the automotive vertical. So the battle to prove you are number 1 in Listings and Traffic is paramount – all academic really as “you can’t bank wank”, as my former esteemed colleague would remind me (ie money talks, bullshit walks).

…it’s not surprising that almost without exception, every website monitored display the same traits…

Direct Traffic…generally can’t and doesn’t fluctuate materially from month to month but can be built or eroded over time whereas Paid Traffic can and does fluctuate as levers are pulled…

Some time ago I wrote an article asking Who has the No 1 Auto Classified Website in the World after I had developed an algorithm that enabled me to rank the traffic health of auto vertical websites around the world through an Auto Classifieds Traffic Health Index.

I did this because there are so many ways to measure auto vertical websites against each other – number of Listings, total traffic (Visits), Revenue, EBITDA, etc – and given there are inherent problems with each measurement, I needed a way to compare websites on more or less an equal footing.

Number of Listings is ok but the count on the website may not always be what it appears. Visits can be manufactured and not a true reflection on the sustainability of a website’s brand health through its Traffic Sources and User Engagement. Revenue and EBITDA are not always available (ie for unlisted businesses). Then there is comparing websites from country to country where the populations are different meaning Listings and Visits (or even Revenue and EBITDA) cannot be measured on a level playing field.

The factors that push Encar.com and Autoscout24.ch as the two leading websites by a fair way…..

The Auto Classifieds Traffic Health Index algorithm takes the User Engagement metrics of website along with the Traffic Marketing Sources (not all traffic sources are equal), applies an importance weighting factor to each metric individually (either positively or negatively depending on the metric) and calculates an Index value number.

After tweaking the Index and monitoring 86 auto classifieds websites from 38 countries over the past 20 odd months it’s not surprising that almost without exception, every website monitored display the same traits. When traffic that is not paid for is high, User Engagement is high and Bounce Rate low. When sources of traffic that is paid for is high, User Engagement is lower and Bounce Rate higher. There are next to no exceptions.

Total Traffic is not a factor for me (to an extent) as not all traffic source are equal and to protect the integrity of comparing websites between countries and regions (ie Brazil has strong regional players). In saying that, for the purposes of overall ranking, I exclude websites with relatively low monthly visits from rankings and I do value more traffic when doing an overall assessment. This takes the ranked number of websites down from 86 to 64.

The average Auto Classifieds Traffic Health Index score for May 2018 is 37, with 93 at the top and -23 at the bottom. A negative score is possible if a website has a high ratio of Paid Traffic which leads to a high Bounce Rate and lower User Engagement metrics and weights the Index down – 4 websites have a negative index score while another 1 has a zero score.

Here’s the top 10:
1 Encar.com, South Korea (owned by carsales.com) 93
2 Autoscout24.ch, Switzerland (Scout24) 91
3 Autotrader.co.uk, UK (LSE:AUTO) 79
4 Mobile.de, Germany (Private) 75
5 Gebrauchtwagen.at, Austria (Private) 71
6 Seminovosbh.com.br, Brazil (Private) 70
7 Tucarro.com.co, Colombia (Mercado Libre) 67
8 Sauto.cz, Czech Republic (Private) 64
9 Autoscout24.be, Belguim (Scout24) 63
10 Autoscout24.it, Italy (Scout24) 63

The factors that push Encar.com and Autoscout24.ch as the two leading websites by a fair way are high traffic source that are sourced organically, above average User Engagement, very low Bounce Rates and virtually no Paid Traffic. These factors epitomise a strong online Brand Health.

I don’t know a lot about the AutoScout24 group except that it has an impressive stable of auto vertical websites across Europe in terms of Brand health when measured by traffic. 8 of their websites are measured with 3 in the top 10 (see above). In addition there is Autoscout24.de (Germany) at 20, Autoscout24.at (Austria) at 22, Autoscout24.fr (France) at 25, Autoscout24.es (Spain) at 35 and Autoscout24.pl (Poland) at 43. All but Spain and Poland are more than comfortably above average.

Are each of the top 10 clear leaders in their respective countries? Yes they are except for Seminovosbh.com.br which is a regional website in Brazil typifying the Brazilian landscape where loyalties to local players remain, even online. Consumers parochial to regional automotive websites in Brazil resulting in high user engagement and positive traffic sources with others such as the Webmotors owned Blucarros.com.br, Joinvillecarros.com.br, Compreauto.com.br and Meucarango.com.br all with strong Index rankings (albeit under the monthly visits threshold I have set).

Autotrader.co.uk (3) and Mobile.de (4) are the clear traffic leaders from the top 10 in terms of Monthly Visits which, despite not wanting the amount of traffic to influence the ranking, shows how strong these businesses are in their respective countries.

Other websites of note in the rankings are:
11 carsales.com.au, Australia (carsales.com) 60
12 chileautos.cl, Chile (carsales.com) 59
16 Autohome.com.cn, China (NYSE:ATHM) 54
24 Autotrader.ca, Canada (Private Equity) 46
26 Autotrader.com, USA (Cox Automotive) 42
29 cars.com, USA (NASDAQ:CARS) 40
30 Webmotors.com.br, Brazil (carsales.com) 38
42 Cargurus.com, USA (NASDAQ:CARG) 29

It’s interesting watching the evolving nature of these websites and businesses month on month and year on year. For instance Direct Traffic, the most valuable traffic source, generally can’t and doesn’t fluctuate materially from month to month but can be built or eroded over time whereas Paid Traffic can and does fluctuate as levers are pulled or put away day by day, month by month.

Like anything, the Auto Classifieds Traffic Health Index is not perfect but it does give a view that is valuable on a number of fronts for peers, competitors and potential targets around the world.


3 real time carsales metrics


I’ve spent the best part of the past 18 years leveraging the power of data in the online classifieds space.

When you have millions of consumers searching and finding their next car on a country’s number 1 automotive portal like carsales, Encar, Chileautos or Webmotors, data can invariably tell thousands of stories.


Here’s a few powerful “real time” metrics that only a carsales is able to provide with any credibility in their respective country’s car retail market:

Supply and demand
The Days Supply metric is one of my favourites, as it provides real value and something more accurately in the used car market that I don’t think can be replicated. It shows whether supply outstrips demand and vice versa. The beauty of Days Supply is that it can be measured for makes, models, versions, etc and for different geographical regions.

So if you were say a Melbourne metropolitan new car Dealer and a buyer has a 2015 Mitsubishi ASX as a trade in, a vehicle your used car team knows little about. Wouldn’t it be great to know that this model is the most sought after vehicle in Melbourne from a supply and demand perspective for vehicles that are less than 8 years old, have less than 60,000 kms and an average asking price of over $20,000?

What this means is that in the past 60 days 116 were sold but there are only 29 for sale which gives a Days Supply metric of 15 meaning that supply of this model for sale will run out in 15 days. Supply and demand says this is a car you should stock (all things being equal with the acquisition price).

Using the carsales LiveMarket Stocking feature, here’s the hottest used vehicles in Melbourne at 27 July 2017 (using the parameters above).

This list can be a pretty handy shopping list and reference point for any used car dealer.

Whilst Days Supply has been in available in Australian Dealers for some time, it hasn’t been used extensively from a buying perspective whilst some of the most profitable used car operations in the US use this metric to make great buying decisions.

Competitive sets
What better way of knowing what the competitive set is of a model of a car than comparing the models a consumer is searching, viewing and enquiring on?

We see millions consumers searching and finding their next car. Most consumers do not what they are going to buy next when they start their car finding journey on carsales. We see them search, view cars, narrow the search, view more cars, save cars in their Membership and finally enquire on cars, usually more than one.

By analysing this activity, we can categorically provide the true competitive set of each model of car and more often than not, the true competitive set is a little (or a lot) different to what the OEM thought was the competitive set for most cars.

The beauty of these data sets is that is always being updated and available virtually real time meaning that fluctuations in any competitive sets is quickly seen, providing enormous value to any “always on” marketing campaign.

Brand loyalty
When a consumer puts an enquiry through on carsales, many include their trade-in details with the enquiry. This information gives us a real-time view on brand loyalty, before the car has been purchased! Post enquiry surveys can then provide another level and view on brand loyalty too.

Comparing the make of a car being enquired to the make of the trade-in vehicle nominated immediately gives us a picture of brand loyalty. If I am enquiring on a Toyota Landcruiser and in the enquiry I include my Land Rover Discovery 4 as a trade-in, I think there’s a pretty good chance that I am thinking of swapping my Disco for a Cruiser wouldn’t you think?

When I am surveyed about my experience on carsales and if I bought the car I enquired on, this then provides rock solid evidence towards the brand loyalty indicator.

Using this data, brand loyalty can be measured daily and is accurate as opposed to waiting for registration details or OEM surveys.

The take out
These metrics are just three of a plethora of such metrics that carsales, Encar, Chileautos and Webmotors has available to benefit OEMs and Dealers, whether it be for effective advertising, pricing, appraising or buying cars.


Who has the No 1 Auto Classified Website in the World?


What if I said to you that the number 1 online automotive vertical website in the world in October 2016 was Autoscout24.ch in Switzerland?

I can, for the first time, compare sites from different countries on the same measures…..based on my traffic health algorithm on 72 websites in 38 different countries

It is not unusual for us to visit a new country and have 3 players swear they are number 1 in online auto classifieds.

One points to traffic, another to inventory and another to dealers (who needs revenue and profit anyway?).

At the end of the day……making money has to be the overriding measurement

Everyone wants to be number 1 and it seems this is especially so in the online world where to claim yourself as the number 1 player in your niche is vital for advertisers, investors, etc.
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This is hard enough to decipher within each country so how do we determine what automotive vertical website is the number 1 site globally?

From an online automotive vertical aspect, I see businesses claim number 1 in their country/region based on anything they can measure has them in front – visits, unique visitors, inventory count, dealer count – and the numbers can be near on impossible to test from outside the business.

You can’t do it by visits, inventory or dealers because a website operates in a country that has a large population with a huge car market will naturally have more visits, inventory and dealers – this does not make them the number 1 in the world.

I’ve wrestled with this for some time as carsales looks to strategically partner with more online automotive businesses around the world and I look at peers, competitors and targets so I’ve come up with a measure that for the first time doesn’t care how many visits, inventory or dealers are on the site.
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So getting back to who is number 1, how’d I come to this conclusion and what exactly is Autoscout24.ch number 1 in?

What I’ve done is created an index using a weighted algorithm for each automotive website around the world based on things that measure the health and stability of their traffic, namely user engagement and traffic sources. For me these metrics can tell you a lot about the online business and for the first time, I can measure websites from country to country on like for like data in order to get a picture of their real position in the market.

Like everything in online, one form of measurement doesn’t tell you the whole story but this index allows me to rank every website around the world to get an accurate picture of their traffic health irrespective of their traffic volume (although to get an “official” index a website must have over 100,000 publicly measurable monthly visits; this number is arbitrary).
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This means I can, for the first time, compare sites from different countries on the same measures. Traffic health should be pretty basic and each component would have individual focus within each business. Product teams would be all over user engagement metrics; SEO experts would be working to ensure the long tail of each website is indexable; and SEM spend would be closely monitored to ensure the right spend is getting the right results.

It’s pretty easy to correlate a high SEM spend, low direct traffic and a high bounce rate and what it means – poor traffic health – but as with most metrics to measure a number 1, they usually only tell part of the story.

In any case, based on my traffic health algorithm on 72 websites in 38 different countries, the top automotive vertical website in October 2016 was Autoscout24.ch (Switzerland) and businesses that are part of the carsales network including Encar.com (South Korea), Joinvillecarros.com.br (Brazil) and Chileautos.cl (Chile) are in the top 5 (the website rounding out the top 5 was Gebrauchtwagen.de in Germany).

Each of these websites has very strong user engagement metrics and extremely healthy, sustainable traffic sources.
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It’s interesting that some countries and in fact continents have common traits in user engagement and/or traffic sources that flow through the websites.

The regional Brazilian website indexes do not surprise me given the regional focus in Brazil where dealers and consumers alike are somewhat parochial to regional automotive websites resulting in high user engagement and positive traffic sources which sees websites that are now part of the Webmotors network high up in this indexing including Blucarros.com.br, Joinvillecarros.com.br, Compreauto.com.br and Meucarango.com.br.
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Anyway, my indexing algorithm gives me a great picture of where our peers, competitors, targets and carsales network sites are at around the world irrespective of the traffic they claim, inventory or dealer count.

At the end of the day, all of these websites are businesses and we all know that, as my esteemed former colleague used to remind me, “you can’t bank wank” – in other words, making money has to be the overriding measurement.


10 Things to Drive Chileautos Further


carsales launched the new Soloautos website in September (9 Things Moving Soloautos in Mexico) and today carsales is very happy to have released the new Chileautos.cl website.

Both sites will benefit from the same features but the Chileautos deploy signifies some significant economies of scale in the LatAm region, none the least was the speed in which the website was integrated following the successful deploy of Soloautos last month.
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Here’s 10 things we’ve implemented into Chileautos that we think will give the business a kick along:

1. New logo. Chileautos is our second international brand to adopt the carsales “swish” making it instantly recognizable as a carsales brand. We’ve kept the Chileautos red and blue in the logo and have added the lock up “El portal No 1 de vehiculos”.

2. New website. Now much cleaner, stronger action points throughout the site with larger vehicle photos. Along with the new logo, the new website signals to OEMs in particular that Chileautos is a destination point for not only used cars but for new cars as well.
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3. Ryvuss search. carsales‘ proprietary search platform has been integrated into the new website giving Chileautos best in class search and search navigation capabilities.

4. New Cars. Chileautos is clearly Chile’s number 1 automotive vertical portal with a very strong reputation in used cars. Now Chileautos has information and photos available on every new car available for sale in Chile which is an exciting proposition for car buyers, dealers and OEMs.

5. New sell pages. Cleaner and clearer process to point sellers to the selling package that is right for them.
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6. Autologia integration. Autologia is our editorial brand which we acquired some months ago and have now integrated tightly into Soloautos and now Chileautos, tailored to the Chilean market. This is a great result for all car buyers, researchers and enthusiasts visiting Chileautos.

7. Better SEO structures. This is a very important piece of the new website so that we do not lose any domain authority that Chileautos has built up over the years. SEO helps consumers find the right information in the Chileautos when searching for cars in Google Chile – remember Google is for searching, Chileautos is for finding.

8. Move into AWS. By moving Chileautos into the cloud we immediately get an uplift in scalability, reliability, disaster recovery options and response times, not to mention carsales management and support with the website now sitting next to all carsales other online assets.
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9. New display advertising options. The new Chileautos website enables us to offer OEM’s, dealers, finance companies, insurance companies and the like more targeted, integrated advertising options that compliments the inventory and editorial focus of the site.

10. Back end integration. Not only does the new website integrate seamlessly with the existing Chileautos dealer control panel, it also integrates into the carsales Autogate system. This enables Chileautos to provide an increased level of service to existing dealers using existing tools and also gives Chileautos the opportunity to leverage from Autogate’s proven lead management features.

This is just the start of things to come and it is certainly an exciting time for Chileautos and Chileans looking to buy and sell cars!


No Online Third Party Marketplaces


Online third party marketplaces like carsales, Webmotors, Soloautos, Chileautos and Encar play an important role in connecting car buyers and sellers.

For car buyers they provide choice and information in the one place when looking for their next car.

For car sellers they enable their inventory to be put in front of millions of buyers and compete on equal footing to other sellers no matter the size.

Now, let’s imagine an online world with no online automotive third party marketplaces. How would sellers get their cars seen by buyers and how would buyers find the right car for them?

Dealers would have to rely on their own website to advertise their cars to sell. Yes the vast majority have their own website today but it is a totally different cost and investment conversation if they had to rely on their own website to attract buyers.
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The massive investments and efforts third party marketplaces make to get the right car for the right buyer would be the domain of the dealer. Just like the old days when a dealer had to get a spot with good through traffic on a main road, smaller dealers would be up against it again.

The search engine giant(s) and those who have created business around it (i.e. SEM, SEO “experts”) would love it if dealers had to rely on how their website ranked in search, organically or paid.

Car buyers are buying new cars whether they be new or used – have you ever heard someone show you their “new used car”, they always buy a new car it’s just some are used – and third party marketplaces are the only place where new and used are presented equally.

This is an important part of today’s online world that I think is overlooked by most. Buyers come to third party marketplaces to narrow their car search so by mixing new and used together the buyer’s comparison set is broadened, bringing in cars they probably didn’t know yet could afford and/or were available.
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Advertising in print still wouldn’t be viable so investing in the dealer website at a level far exceeding today would have to be the way forward.

I’m not even sure what private sellers would do. I guess they’d have to advertise in the newspapers per pre-Internet and rely on the publisher to list everything online that they have offline, a throw back to the News Limited and Fairfax 1990’s business plans. Maybe the publications like the Trading Post would still have currency?

Facebook Marketplace isn’t even the answer. How many of you want to sell your car to a “friend” really?

Online third party automotive marketplaces are a natural fit in the same way a Google is for search in navigating in today’s connected world.


Premium Verticals Up Against The Freemiums


carsales.com runs a Premium marketplace in the online automotive vertical space.

As carsales takes investment positions in more global online auto businesses (auto vertical), we are more and more competing against some very large Freemium businesses like OLX and Mercado Libre across Latin America, with each of them being general classifieds sites (horizontals).

Horizontal’s have a role to play in getting rid of your old household items. A car is not one of these

Webmotors.com.br, Soloautos.mx, Chileautos.cl and Encar.com are all online Premium players in automotive competing against the horizontal Freemium players.
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This is certainly not new to carsales as our largest competitor in Australia is also a horizontal. That’s not to say we don’t have serious competition from other Online auto vertical players in Australia; we’ve always faced this.

“The easiest way to get one million people paying is to get one billion people using.”

A Freemium website makes their money by charging for value added services once you have listed your item. I love Phil Libin’s (Evernote) quote “The easiest way to get one million people paying is to get one billion people using.” This is certainly what Freemiums focus on.

The Freemium general classified players of the world are following this by having a platform to advertise a car in the same way as your 8 year old couch; and it shouldn’t cut it for a car buyer or seller.

Remember this – a car is (almost) everyone’s second largest purchase in their life therefore deep information, CarFacts reports, inspection reports, reviews and above all else, trust and safety are all major factors and things only a Premium vertical online website is in a position to offer.
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The role we play in each of our global markets is as the Premium and Premier online auto vertical player; this means we need to do cars better than anyone. From searching, finding, researching and buying to selling with everything you need to make a quick, safe and profitable sale.

Our goal is to help you sell as opposed to helping you advertise; this is a BIG difference. This goal is different to Freemium horizontal player who is more interested in getting towards the “billion people using” rather than making the experience of each and every user one that represents the investment each is making.

Horizontal’s have a role to play in getting rid of your old household items. A car is not one of these from a selling or buying perspective.
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This is why we will continue to invest in our platform to provide the best information and tools to transact on the second largest single item in most people’s life’s in the safest way possible.

I think there’s a business there.


Achieving Economies of Scale


carsales push into the Spanish speaking Latin America countries of Mexico and Chile enables it to get achieve economies of scale in technology and other areas of its business.

The push has been on to deliver our web site platform and dealer applications that are successful in Australia, through Latin America with the specific goal of being able to “Spanishise” (probably a stretch to give it a word) the platform and get multiple uses from it, thus achieving economies of scale.
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We have learnt, however, that achieving economies of scale can sometimes be a false economy if not done with a complete appreciation of all the factors in the new geographical location you are entering. Just picking something up and dropping it in another country will not necessarily work.

carsales and Webmotors.com.br were keen to give Webmotors the “carsales feel” so in addition to adding the Ryvuss search engine, the three main pages being the Home page, Search Results page and Vehicle Details page were all redesigned using the carsales template.

When the development was complete we were all very excited to launch the new site but it didn’t take us long to realise that we had misjudged the Brazilian users. There were a few things they had on the old Webmotors site that they felt were super important in buying a car and were not backwards in coming forwards to tell us about it.
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Quite a few subtle changes were required to meet the expectations of the local users. This was our first lesson that picking up exactly what works in one country will necessarily be the optimum solution in another country.

What about regions within a country? Webmotors made two acquisitions of leading regional automotive web sites shortly after we invested in the business. The first was Meurcarango.com.br which was the number 1 player in the North East of Brazil. The second was Compreauto.com.br which was the number 1 player in the Sao Paulo country side.
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The plan was a simple one – let’s get some quick wins by using the Webmotors platform to drive each of the new websites. Each website would take on the same look and feel (with it’s own colours and logos) and same features. This would enable us to achieve economies of scale in maintaining one Brazilian wide platform down the track.

In both Meurcarango and Compreauto we quickly realized that the response from the user base within each region was similar to what we experienced with the Webmotors site.
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So while we won’t get economies of scale by simply putting a Spanish version of what we have in Australia, we will get enormous benefits through economies of scale across the platform driving the websites and the dealer applications. An example of where we are already achieving this is with our Ryvuss search engine which is already in use by Webmotors and Encar.com in South Korea.

Our dealer applications like Autogate is where we will see great benefits through “Spanishisation” as they are not as open to user nuances by country or region as a consumer facing website is. This is where we expect to get even bigger benefits from working on the one global platform.

All in all carsales is in a great position of leveraging from proven IP and a technology base that can move the needle in these countries. I can’t wait to see Soloautos.mx and Chileautos.cl benefiting from this.


Leading in a Global World


Not everyone aspires to be a leader or sees themselves as a leader but I bet in some part of their lives they are leading the way – and are good at it.

I’ve said in other posts and I’ll say it again, I feel lucky that over the journey I’ve enjoyed what I’ve done and what I do.

My role as carsales Director International is multi faceted in that I am a leader in the carsales core business as part of the Executive Leadership Team, I am the leader of our International team and I get to be the leader of some great businesses in other countries.
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I used the word “leader” three times there; not to be egotistical, the word isn’t in my title or job description but because it is a part of my role that I consider the most important; and it is one I enjoy.

So what does a leader mean? No doubt you would have read a few posts defining leadership and comparing a leader to a manager. I see it as setting the vision, the strategy, coaching, being part of the team, making the tough calls, not always being right, listening and sharing your experiences.

Most of all it is about making the right connections with people. I’ve said it before that I inherently believe “people do business with people they like”. This includes the leader and doesn’t mean you don’t make tough decisions that aren’t going to please everyone; it does mean that you need to earn their respect in the process.

I “got out of the way” of the best players and let them play

Leading is something I have undertaken from a business perspective and in my football career. You’ve probably read about how leaders should “hire the best people and get out of their way” and I completely subscribe to that.
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When I first joined carsales I had the task of bringing our LiveMarket product to life. I really enjoyed the first few months of not having to lead a team or worry about anything but the task at hand. This didn’t last long as I soon found out that I really missed leading a company, leading a team. Now I get to lead multiple, diverse teams and enjoy the challenge!

From a football perspective I was never the best player (or second or even third best) in any side I played in but I was able to successfully lead sides from a very young age (senior playing coach at 26) by getting the respect of my team mates and leading by example. I also ensured I “got out of the way” of the best players and let them play.
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This is the way I approach it from a business perspective as well. For instance, we have a controlling interest in Soloautos in Mexico and Chileautos in Chile. The first part of leading these businesses is to get to know the people, understand them and develop a relationship with them. This is essential to be able to lead these businesses from Australia with our carsales International team showing great leadership in taking these businesses along the journey.

it’s not that we are smarter than you guys, we’ve just seen it before

Our two minority positions in Webmotors in Brazil and Encar in South Korea are not too much different because as strategic investors in these businesses, the people inside look to us to show leadership in best practices to accelerate the growth of their businesses.

As a strategic investor in these businesses, carsales is using its experience and intellectual property as leadership pillars but it is all wasted without “walking the walk” after “talking the talk”. As I have said many times to our global friends “it’s not that we are smarter than you guys, we’ve just seen it before”.

If we can’t lead the way with this as the cornerstone, we’re in a bit of trouble (just my opinion).


A Key Component of an Acquisition


I’m a firm believer that in general, “people do business with people they like“. I know there are exceptions but as a rule I stand by this.

In order to like someone in a business sense does not mean you need to be mates; there needs to be a mutual respect between each other that business will be conducted in a manner that you both expect.

When carsales looks at an international acquisition target, local management is a key component of the decision making process. Very early on in the process I like to understand what the local management structure is going to look like and ascertain if there will be issues from day 1 after closing.

People do business with people they like” takes on an extra meaning when the management you are relying on to run the day to day operations of a business you have invested in is on the other side of the world. A true mutual respect as people first is important in this.
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This is why dealing with and forging close relationships with local management is a key component as a strategic investor. The structure of our partners in our 4 international acquisitions (Webmotors.com.br in Brazil, Encar.com in South Korea, Soloautos.mx in Mexico & Chileautos.cl in Chile) are somewhat different but the relationships we have/are building are very similar. In each business we are very close to the executive management; talking on an almost daily basis and sharing more than just business.

When we started Digital Motorworks, very early on we did some business with News Limited’s then new digital arm called News Interactive (News Digital Media) for their online jobs platform Careerone. We saw our personal relationships (we didn’t know them beforehand) as important and worked hard on it. Our work with Careerone expanded (and then exploded) and before we knew we were performing the same services to The Times of London (News International) which then spread by recommendation to TES Education and Emap (also both in the UK). When News were looking at starting an online automotive platform they came to DMi first.
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Yes DMi had some nice technology that served their needs but I have no doubt the relationships we formed within News Interactive were the driving force behind establishing our brand within their business.

Even internally, it is hard having a workable business relationship with someone you simply do not like, trust and/or respect.

People do business with people they like” can take on a number of meanings. It may be “just business” but business involves people and where people are concerned, it is better to like people than not.


3 Pillars of Car Classifieds


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Chileautos, the newest member of the carsales family, has the tag line “Vehiculos en venta con fotographias” which translates in English to “Vehicles for sale with photos“.

It’s great now that we take it for granted that a car classified ad should have a photo(s) because when carsales started out, getting the car list and details from dealers was hard work let alone a photo!

For all the great advancements and features we have made on all our sites in adding the depth for sellers to sell and buyers to make their purchasing decisions a little easier (and safer), the fundamentals of selling online are still prudent and the cornerstone to selling online.

These are the 3 pillars of car classifieds:

1. Competitive Price

A competitive price doesn’t necessarily mean the cheapest but over-pricing a car waiting for a “wood duck” to come along is long gone. Buyers are more educated than ever with all the information at their fingertips so knowing where you fit in the competitive landscape is vital and where products such as Price Assist and LiveMarket can help ensure you are in the game from the outset.
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2. Lots of quality photos

One photo doesn’t cut it. Lots of quality photos showing all angles, inside and out to take as much of the guess work out of the process for the online buyer is the key. These photos also enable an automated video with sound over to be created further enhancing the consumer experience.
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3. Descriptive comments

Comments should be about the unique features the car has; this is where the seller can actually sell the car. Seems simple but too many times we see sellers failing to capitalise on the free text they have here to actually sell the car. From my experience, here’s what the different types of sellers generally put in their comments:

Franchised dealers – Generally put more emphasis on their dealership than the car in the comments; I hate to spoil the party but the buyer doesn’t care. Having the right car at the price is far more important so tell them about the car.
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Independent dealers – This is where there is a bit of a mixed bag. The good ones generally make the effort to insert good quality comments about the car but then there are many that maybe insert a line or two (or nothing).
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Private sellers – Maybe it is because they are just selling one car (every 3-5 years) but they generally do a far better job than dealers in selling the car in the comments.
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These 3 pillars cannot be ignored and if nothing else is done, it is these 3 that must be done well.


Who Visits Car Classifieds Websites?


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The vast majority of the millions of people who visit carsales.com.au each month are looking to buy a car. As do the millions visiting our websites around the world in Brazil (Webmotors.com.br),Mexico (Soloautos.mx), Chile (Chileautos.cl) and South Korea(Encar.com).

Similarly, when a person makes the effort to fill in an enquiry form to send a dealer, they are in the process of buying a car.

I’m being a little flippant with these statements because we see the evidence every day and somehow it is missed in practice.

Take the following quiz (based on real data from carsales):
Dealer A and Dealer B are both franchised car dealers located in the same city and each stocks between 40-50 used cars. Dealer A consistently sells a car every 4 leads they receive while Dealer B sells a car every 9 leads.

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Now select your answer:
a) Dealer A is receiving better quality leads than Dealer B
b) Dealer A has more desirable stock than Dealer B
c) Dealer A treats every lead as an opportunity to sell a car

If you answered c) you would be correct. Dealer A gets onto every lead quickly, works them hard and gets a great result. More often than not the buyer doesn’t even purchase the car they required on but if the lead is worked like every sales lead should, it will one of the dealer’s cars not a competitors.

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It is not surprising that over 40% of the people sending leads to Dealer B actually purchase a car from another Dealer – most probably Dealer A.

Dealer B thinks that most of the leads from online are “tyre kickers” and as such gets on to some but doesn’t pursue others. We know this from consumer feedback that is provided back after an enquiry is made.

We see the same things in Brazil. Recently our Webmotors Dealer Director visited a dealer in São Paulo who said that they weren’t happy with the quality of leads coming from Webmotors.

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Our Webmotors guy asked him for some examples so the dealer presented him with three leads that were “rubbish”. Our guy asked the dealer if he could follow them up then and there, in front of the dealer and on behalf of the dealer. The result – two appointments for the dealer and the other had just bought from another dealer! So much for “rubbish” leads.

What was found (and acknowledged) was that the dealer didn’t value a lead from any online source like he did a walk-in or phone call. With a little education the dealer now understands the value of Webmotors as a valuable car buying channel.

carsales.com.au, Webmotors.com.br, Soloautos.mx, Chileautos.cl, Encar.com and other leading auto classified sites around the world invest millions of dollars to bring car buyers to dealers and it is in their interest to keep the quality intact – I can’t see how that is a bad thing.