May
10
2012
retail, sales By Dave Eckstein | No comments yet

Are Local Auto Dealers Keeping Pace?

ESA & Company | Q4 Jumpstart: 20122012 JUMP-START | ESA & COMPANY
Estimates for 2012 are all over the map, and most are cloaked in a waning degree of confidence. How good will your 2012 be? It’s directly related to your sales performance right now. The following is one of a series of quick posts to help local sales teams get (and keep) a jump on the competition in 2012 … right now.

QUESTION:
Many auto dealers had a “strong April” in 2012 … but how are they doing vis-a-vis their brand’s performance?

ANSWER:
Comparing an auto dealer’s April numbers with the overall US Sales trending of their brand(s) provides a good indication if the dealer is outperforming or lagging (see ESA Auto Scoreboard below). April 2012 was another strong month for US auto sales, even though the Big 3 domestic makes lagged import performance. European vehicles enjoyed the biggest surge, posting a 30%+ gain in year-to-year sales, while Asia/Pacific brands were a bit ahead of overall trending. Automaker winners for April included Volkswagen, Daimler, and Chrysler, while Toyota and BMW also significantly outperformed the pack. GM, Ford, and Honda all trailed the larger market.

ESA AUTOMOTIVE SCOREBOARD: APRIL 2012

ADVICE:
Be sure you know your automotive numbers. Having a “good month” is always a relative term, especially in this automotive climate. Follow ESA for frequent automotive intel, and visit Wards Auto for all the US sales performance data.

ESA & Company | Q4 Jumpstart: 2012Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition.

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Mar
27
2012
media, sales By Roland Eckstein | No comments yet

The Avail Indicator: Revisited

ESA & Company | Q4 Jumpstart: 20122012 JUMP-START | ESA & COMPANY
Estimates for 2012 are all over the map, and most are cloaked in a waning degree of confidence. How good will your 2012 be? It’s directly related to your sales performance right now. The following is one of a series of quick posts to help local sales teams get (and keep) a jump on the competition in 2012 … right now.

QUESTION:
As we begin Q2 … is your sales team — specifically the developmental account execs — apprised of Q3 2012 avail requests?

ANSWER:
This level of activity is a good indicator of how much media planning is afoot. Simply stated, we should be ahead of this activity, because the agencies that are calling the station have already had their planning meetings with their clients. Waiting will surely elicit comments such as “Your timing is bad, we’ve placed our buy already”. This is client-speak for “If you knew anything about my business — or yours — you would’ve called me in January!”

ADVICE:
Be a part of the conversation now, or fall behind by a quarter.

ESA & Company | Q4 Jumpstart: 2012Roland Eckstein is the Managing Partner of ESA & Company, an advertising strategy firm based in Red Bank, New Jersey that accelerates profit for local businesses.

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Mar
23
2012
retail, sales By Dave Eckstein | No comments yet

Right at Home: 3 Local Opportunities

ESA & Company | Jumpstart: 20122012 JUMPSTART | ESA & COMPANY
Estimates for 2012 are all over the map, and most are cloaked in a waning degree of confidence. How good will your 2012 be? It’s directly related to your sales performance right now. The following is one of a series of quick posts to help local sales teams get a jumpstart on the competition … right now.

There is a huge opportunity for local media today, and it’s hard to miss — because this one is right at home.

As your local economy stabilizes and recovers, several categories related to the home need a high-performance marketing plan to outpace the market. Consider three key pieces of information:

Homeowner Trends for 2012

  • Homeowners are staying in their homes longer: This is true for a number of reasons, most notably the fact that financial and real estate markets still are thawing out from a deep freeze. When this indicator increases (as it has significantly, up from 6 years in 2008 to 9 years), homeowners are more likely to invest in their homes for the long haul.
  • The remodeling market has heated up: Though the average job size is down from its peak, homeowners are considering and/or pulling the trigger on more remodels today than they have in a while. Remodelers are on the hunt for low-cost lead generation.
  • Alternative energy is gaining momentum: Homeowners deciding to stay put realize they can tolerate “break-even” points for green investments in their homes. That’s good news, as is the fact that break-even points continue to shrink. There may be other incentives in your area that can boost lead generation, be sure to know if they fit the bill.

Local media reps need to reconnect with this huge opportunity, and demonstrate the value of profitable lead generation through efficient media planning. Some businesses have been silent for a while — and the media landscape has changed since they last made a big decision. They’ll need help putting their arms around the options and making an informed decision. Lead costs continue to rise; proof that flawed marketing decisions are still being made in this super-category.

Just like in the automotive category, there is pent-up demand. Will the marketers be able to meet the challenge? They will, with your help.

ESA & Company | Q4 Jumpstart: 2012Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition.

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Mar
13
2012
media, retail By Dave Eckstein | 2 comments

3 Plays in the 2012 Auto Retail Market

ESA & Company | Jumpstart: 20122012 JUMPSTART | ESA & COMPANY
Estimates for 2012 are all over the map, and most are cloaked in a waning degree of confidence. How good will your 2012 be? It’s directly related to your sales performance right now. The following is one of a series of quick posts to help local sales teams get a jumpstart on the competition … right now.

On the heels of a strong February, there is a tight window of opportunity in the U.S. automotive market today. Dealers need a solid plan to continue momentum and to outpace robust market growth. That said, here are three opportunities to consider when constructing a 2012 automotive retail plan:

1. THE LEAD-GENERATION ENGINE
Dealers are expecting continued growth in online lead-generation, some citing a 10-20% increase in this area for 2012. A solid plan should address both sides (offline and online) of the dealer’s lead sourcing.

2. SUPPLY & DEMAND
A decent portion of February’s strong showing in automotive was the residual fulfillment of pent-up demand from late 2011, when inventories where still being replenished. Moving forward, dealers who have good concentration of inventory in 2012 will be in better shape than those scrambling to fill the lot with decent product. Demand is already strong for fuel-efficient and pre-owned vehicles — which are in short supply given the big drop in auto sales of recent years. Dealers who continue to aggressively replenish their pre-owned inventory will have a key advantage in 2012.

3. LONGER LIFE
It’s no surprise that dealers want lifetime relationships with their current and new customers. Realizing that consumers are holding on to their vehicles longer today, some dealers will profit from riding a surge in leasing programs or service plans that attempt to cement this consumer relationship for a longer duration. One challenge worth noting: Younger drivers today are more likely to seek non-dealer service options.

Last but not least, over the past few years many dealers (and the auto industry in general) have incorporated plenty of good habits in streamlining their operations and marketing. Looking ahead to 2012 and beyond, plans should look to lower their per-vehicle ad spending, to continue the trend of profitable retail growth. Efficiency (not “cheapness”) in media buying is of utmost importance here!

ESA & Company | Q4 Jumpstart: 2012Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition.

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Mar
5
2012
retail, sales By Dave Eckstein | No comments yet

Strong February for Automotive

ESA & Company | Jumpstart: 20122012 JUMPSTART | ESA & COMPANY
Estimates for 2012 are all over the map, and most are cloaked in a waning degree of confidence. How good will your 2012 be? It’s directly related to your sales performance right now. The following is one of a series of quick posts to help local sales teams get a jumpstart on the competition … right now.

Want more confidence on your next automotive call?

ANSWER:
US Auto Sales | February 2012Know the numbers! Here’s a quick preview of February’s US auto sales results, which came in stronger than expected:
- Suzuki +47%.
- VW +42%.
- Chrysler +40%.
- Kia +37%.
- Hyunda +18%.
- Ford +14%.
- Toyota +12%.
- Honda +12%.
- GM +1.1%.
Source: Reuters Industry Reports

ADVICE:
Spend 5-10 minutes getting a quick read on the auto market … especially at the beginning of each month. Follow Steve Finlay and John Sousanis of Ward’s Auto. Steve is an expert on the automotive retail market and an ESA ROI presenter, John is a whiz with the auto numbers — his Counting Cars blog is second-to-none.

ESA & Company | Q4 Jumpstart: 2012Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition.

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Feb
15
2012
media, retail, sales By Dave Eckstein | No comments yet

10 Insights from ROI2012

ROI2012Looking back on another successful ROI show, we can’t help but take a moment to jot down a few key sound bites from ESA’s 23rd annual New Business Conference. Before we do so, a special thanks to our panel of guest speakers … outstanding job!

Okay, here they are, in no particular order:

FROM THE HOME OFFICE IN RED BANK, NJ …
TOP 10 TAKEAWAYS FROM ROI2012

  1. Mitigate the advertiser’s perceived risk: Understand it, and deflate it upfront.
  2. Advertisers and agencies aren’t negotiating price, they’re negotiating preemptability.
  3. Yes and No make you money. Maybe does not. Don’t be afraid to walk away.
  4. Over 95% of local businesses don’t have a mobile site.
  5. Nobody wakes up in the morning and looks forward to going backwards.
  6. Master a :15-second opening and closing … bookend your dialogues.
  7. Forge an agreement between media and advertiser to share key information.
  8. Please don’t ever tell us retailers you are #1 at anything. We hear that too much!
  9. A meeting with no objections is not a sales call. It is a presentation.
  10. It’s all about the conversion of high-quality “A” leads.

Those are just a handful of highlights from ROI2012. We know there are dozens more, some of which are already in action … but the ten above will stick with us for a while.

On that note … plans for ROI2013 are underway. It’s not official yet, but you might want to circle January 16-18, 2013 on your calendar. Stay tuned to The Catalyst or follow ESA for more applicable media and retail intelligence every day.

ESA & Company | Q4 Jumpstart: 2012Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition.

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Jan
4
2012
media, sales By Dave Eckstein | No comments yet

Why Advertisers Won’t Take a Meeting

ESA & Company | Jumpstart: 20122012 JUMPSTART | ESA & COMPANY
Estimates for 2012 are all over the map, and most are cloaked in a waning degree of confidence. How good will your 2012 be? It’s directly related to your sales performance right now. The following is one of a series of quick posts to help local sales teams get a jumpstart on the competition … right now.

Get this. I recently read an interview with Mike Johnson, of Hickory Toyota. Mike answered questions about his media plan, which is 80%+ broadcast TV. Most of that buy is directed to a single station in each market (Charlotte and Roanoke). The article was good; it covered some of the same points Mike had shared in ESA’s automotive webinar a few months earlier. The ensuing “reader comments” however, got me thinking.

One poster cited that Johnson was incorrect in his comment about news ratings. Really? Another claimed the station was just pandering to Mike to shore up the relationship and secure the buy. Hmm. A third said his buy was all wrong; that diversification of the media buy is the way to go. Seriously?

Wow. Good thing they didn’t check how well Mike was doing! For the record, Hickory Toyota is flourishing. And they have been for years, using a steady diet of … broadcast TV.

It’s sad that the only prerequisites to post a comment today is a keyboard and an opinion (regardless of its veracity). Thank goodness the general readership knows to see through this veil of ignorance.

These comments provide a snapshot of the larger media industry: Not one of them spoke to Hickory Toyota’s continued success. Not a single comment mentioned how many vehicles they’ve sold in a challenging year for Toyota dealers, or how little Mike was spending per car to do this. It was all a bunch of media infighting, chest-thumping, myth-spreading, and not at all about the retail equation. Babies with staple guns. All of them.

So what’s the point? This attitude is rampant in media sales today. This is your competition. A modern day Tower of Babel. These same people are sharing similar opinions and myths with your clients and prospects right now. They think their information is valuable. Most of it is not.

Just within the past week, I have seen two different media presentations and the transcript from a keynote speech at a media conference that were loaded with inaccuracies and myths of competitive media. Scary.

No wonder why advertisers won’t sit down and talk today. Can’t blame them. They’ve heard already that everybody is #1. They have rep fatigue. And we wonder why there is so much confusion and waste?

Anybody else smell an opportunity?

Here’s your plan to help your clients navigate this sea of misinformation:
Start from the inside-out, not the outside-in. Meet challenges from the retail side first, not the media side.
How refreshingly different. And simple. Your uniqueness of approach will be rewarded.

The best part? Your competition probably won’t do this, because they can’t. (Just read the comments!) Even better, you — and your clients — will appreciate the results.

Not at all a bad resolution for 2012.

ESA & Company | Q4 Jumpstart: 2012Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition.

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Dec
8
2011
retail, sales By Dave Eckstein | No comments yet

Lessons from Black Friday

ESA & Company | Jumpstart: 20122012 JUMPSTART | ESA & COMPANY
Estimates for 2012 are all over the map, and most are cloaked in a waning degree of confidence. How good will your 2012 be? It’s directly related to your sales performance right now. The following is one of a series of quick posts to help local sales teams get a jumpstart on the competition … right now.

There’s been a buzz in the retail world for the past couple of weeks. A record-setting Black Friday followed by an equally strong Cyber Monday has retailers cautiously optimistic about 2012. According to AdAge, 68% of retailers expect holiday sales to be at least 15% stronger than in 2010.

Appears to be good news, right? Or is it?

The fact that two-thirds of retailers will have double-digit gains — if they do get there — isn’t a bad thing. But look a little closer at how they are going about accomplishing that. Marketing expenses were extraordinarily high leading up to Black Friday, and many retailers borrowed forward-equity (future sales) by offering unprecedented deep discounts. So, while retail sales were a big positive, margins are eroding.

We need not look too far into the past to see similar patterns.

In 2010, energy credits significantly bolstered the home services and replacement industry, a huge revenue source for local media entities. Homeowners scrambled to replace inefficient fixtures, knowing Uncle Sam had their back for a limited time. Many HVAC, window replacement, and other companies are still wondering how many customers the effort yanked from 2011 into 2010.

In 2009, it was cash-for-clunkers. The verdict was — as you might have guessed by now — we merely borrowed automotive sales that were about to happen anyway. If you want the real scoop on cash-for-clunkers, just ask a car dealer. The U.S. auto industry is finally showing signs of legitimate recovery, as November 2011 provided the most units sold since the days of clunkers.

In 2008, we also had a stronger-than-expected Black Friday, marked by similar deep discounts and shopper frenzy. We all know how 2008 ended.

It’s not difficult to see a pattern of borrowing money from the future. Who said “Those that don’t learn from history are doomed to repeat it?” (It was George Santayana, and I paraphrased a bit.)

So I guess this is bad news then. Right?

Wrong.

The good news is that retail is still alive and kicking, but is in need of a legitimate plan. A real plan that delivers consistent performance while preserving margins. One that speaks to an obviously value-centric consumer, and does so with media cost efficiencies built-in.

THE LESSON: Anticipate the upcoming struggles of retailers awaiting us in 2012. Build the dialogue now. Don’t wait until sales soften again! They might be busy in the midst of another crazy holiday season, but they’ll need — and will appreciate — your help very soon.

ESA & Company | Q4 Jumpstart: 2012Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition.

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Nov
1
2011
retail, sales By Dave Eckstein | No comments yet

Counting Cars, Part III

ESA & Company | Q4 Jumpstart: 20122012: THE Q4 JUMP-START | ESA & COMPANY
Estimates for 2012 are all over the map, and most are cloaked in a waning degree of confidence. How good will your 2012 be? It’s directly related to your sales performance in Q4 of 2011. The following is one of a series of quick posts to help local sales teams get a jumpstart on 2012 … right now.

QUESTION:
Want more confidence on your next automotive call?

ANSWER:
Here’s a sampling of today’s automotive ticker:
- GM +2%: Only the Chevy brand is up. GMC, Caddy, Buick down.
- Chrysler +27%: Best non-clunker result since April 1996.
- Toyota +3.4%: Loading up inventory and ad budget for big comeback.
- VW +40%: Strong evidence of VW’s new plan to join the big stage.
Source: Ward’s Auto, Counting Cars

ADVICE:
Spend 5-10 minutes getting a quick read on the auto market … especially at the beginning of each month. Follow Steve Finlay and John Sousanis of Ward’s Auto. Steve is an expert on the automotive retail market and an ESA ROI presenter, John is a whiz with the auto numbers — his Counting Cars blog is second-to-none.

ESA & Company | Q4 Jumpstart: 2012Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition.

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Oct
26
2011
media By Adam Armbruster | No comments yet

Counting Cars, Part II

ESA & Company | Q4 Jumpstart: 20122012: THE Q4 JUMP-START | ESA & COMPANY
Estimates for 2012 are all over the map, and most are cloaked in a waning degree of confidence. How good will your 2012 be? It’s directly related to your sales performance in Q4 of 2011. The following is one of a series of quick posts to help local sales teams get a jumpstart on 2012 … right now.

QUESTION:
Are you really going to miss out on the largest “Turf War” by local auto dealers in modern history?

ANSWER:
Chevy, Ford, Kia and Hyundai dealers are saying: “We need to hold on to our sizable recent share gains.”
Toyota, Honda, Lexus, Acura dealers: “We finally have inventory, and we intend to take back our cities.”

ADVICE:
It’s a battle and your station is the bullet. Be sure to catch the recent TVB/ESA automotive presentation by the #1 Hyundai Dealer in the USA, Scott Fink of Hyundai New Port Richey. Auto dealers are planning major year-end campaigns right now. Tell me, are you on the field with these folks?

ESA & Company | Q4 Jumpstart: 2012Adam Armbruster is a Senior Partner with ESA & Company, an advertising strategy firm based in Red Bank, New Jersey that accelerates profit for local businesses.

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