Dealers, Has Farmers Insurance just redirected your customers to TrueCar?

I received an email today from Farmers. (I could have said letter, but I strive to keep it real) And I can't believe my eyes. I usually don't read spam emails, but this one caught my attention. Here's a quote from the email:

You Could Save An Average of $3,221 off MSRP* on Your Next Car

"The Farmers Car Shopping Service, offered by TrueCar, allows you to see what others paid for the vehicle you want and get Guaranteed Savings* off MSRP from a network of Certified Dealers."

...So now the dealership has another big player to contend with, who has millions of customers in their database, redirecting customers to TrueCar. I guess I applaud progress.

So, I believe you have one of three choices;

1) Become a TrueCar client and get with the program to be the cheapest dealer.

2) Take matters into your own hands and start intelligently marketing to your PMA.

3) Sell your store.

Your gut should be telling you that slowly but surely you are losing control of the customers that are in the market each day. Farmers' customers will now go to TrueCar and save an average of $3221 dollars. Is that your gross that they are referring to? Will your web site get more or less hits because of this?

I don't know where this will end. Mintel tells me that Banks and Credit Unions are going to take a stab at redirecting your traffic as well. Farmers has 50,000 agents currently and let's say each agent has 100 clients. That would mean 5 million people just got offered a TrueCar endorsement. Pretty good for TrueCar. TrueCar gets the credit and the referral for everyone who asks the new owner; "where did you get that car?" Perhaps, IT WILL NOT be your dealership in the answer but most likely, "I researched it on TrueCar and saved a whopping $3321 dollars." Hmmm.

Solution? Actually, I may be tempted to take the easy route and work a pricing structure that will win the race to the bottom with TrueCar.

Or if you're a fighter, I would start understanding direct marketing like a pro.

If you would like to dabble in direct mail and don't know how, call my company. If you dabble in direct mail, you'd better get better at it, NOW!

If you're the dealer that approves the pieces like pictured above, the SELL-OFF, KEY mailer, 48 hour SALES EVENT, TENT SALES, SLASHER SALES, LEASE DISPOSAL SALES, UNSOLD INVENTORY CRISIS, FREE HOT DOGS, I think you're going have some stiff competition. Farmers and TC are quietly redirecting your traffic before your eyes.

I'm betting Amazon, Apple, and Google to be next if they're not already.

If you're passionate to do it right and stay in control, contact us at our website at: Wilenauto.com