Analyzing the Gap Between Dealer Expectations and Vendor Capabilities
This webinar, originally presented by C-4 Analytics on the Digital Dealer platform, tackles an existential crisis in dealer marketing: why are so many dealers unhappy with their digital vendors? C-4 Analytics’ Rob Stoesser and Laurie O'Brien dig into the core conflict between dealer expectation and the product company model most vendors use.
The problem lies in a structural misalignment: are your vendor's goals truly aligned with your business goals?
The Vendor's Business Model: Product vs. Service
Historically, dealerships worked with agencies that provided a customized service tailored to local market challenges. Today, many dealers are partnering with product companies—software firms that want to build one thing and sell it a million times, making as few changes as possible.
Product Company (Widget Seller):
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Goal: Maximize profit by minimizing human interaction and offering templates.
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Dealer Experience: "I never see my rep," "I can't get any changes made," and "I have to bring them new ideas." This is because the company staffs to the bare minimum and does not want to customize their "product."
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Cost: Usually cheap, but delivers templated, generalized solutions.
Agency (Service Provider):
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Goal: Drive value by deeply understanding the client's business goals (new, used, fixed ops profitability) and local market dynamics.
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Dealer Experience: Receives highly customized campaigns, ongoing development, and a dedicated team focused on increasing sales and market share.
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Cost: Higher cost, but delivers tailored, human-led solutions.
The Conflict: Why You Can't Win
The most inflammatory truth is that a product company cannot help you win because they actively support your competitors.
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Selling Gunpowder to Both Sides: Product companies only make money by selling their widget thousands of times. It is highly likely your on-brand rival is using the exact same templated products you are. They are taking your money and using it to elevate your competitor's "sea level."
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Mediocre Results: Since the vendor must keep the peace between all their clients in a local market, they cannot prioritize your success. The result is often mediocre performance for everyone involved.
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Lack of Customization: They will not integrate your local market data (pump-in/pump-out, sales by ZIP) into your campaigns because they cannot customize their product, and doing so would reveal a competitive strategy to their other clients.
If you are okay with an inexpensive, generalized product and have no ambition to win competitive market share, then a product company may be fine. But if you want to win, your vendor must be conflict-free, custom-focused, and in lockstep with your specific business goals.
The Solution: Align Goals and Demand Truth
Dealers must understand the implications of their vendor's business model. To align your expectations with reality:
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Stop Relying on Soft Metrics: Stop accepting reports that only show soft metrics (VDPs, traffic). Demand to see how your campaigns impact the only metrics that matter to your business: cars sold and money in the bank.
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Demand Proof of Non-Conflict: Ask your vendor directly: Do you work with my on-brand rivals? If the answer is yes, be aware that you are surrendering a competitive edge and limiting your long-term market share potential.
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Invest in Agency Service: True marketing—the act of increasing revenue through local, customized strategy—requires a service-based agency model, not a generalized product.
Watch the Full Webinar
For a deeper dive into these topics and to hear directly from Rob Stoesser, VP of OEM, and Laurie O'Brien, VP of Client Services, watch the full webinar below.