The Worst Thing to Happen in Automotive Software, and Why Dealers Who Switch to a Cheaper Trade-In Tool Come Back

• Churn is one of the worst things that can happen to a software company, and customers coming back is one of the best.

• A group of stores that left MOTO(acquire) in the last few months recently came back, some after a group buy-sell and some after a big provider offered a few months free.

• Those stores kept getting the same amount of website traffic but converted way less of it into trade leads with the free or cheaper tool.

• Getting a really good deal on a trade-in tool can mean getting less business out of the traffic you already pay to drive to your website.

• Before you switch, measure trade leads per visitor, not just the monthly invoice.

Every few months a big provider shows up with an offer that is hard to ignore: a bundled tool, a cheaper price, or a couple months for free. So should dealers switch to a cheaper trade-in tool? Mike Crothers, CEO of MOTO(acquire), has a direct answer based on what happened when some of his own customers did exactly that.

As Mike puts it, one of the worst things that can happen when you are running a software business is that your customers churn. But one of the best things is when those customers come back. Recently, a group of stores that had left MOTO(acquire) in the last few months came back.

Why stores left in the first place

The reasons were ones every GM will recognize. Some stores left because of a big group buy-sell, where the new ownership standardized on a different vendor stack. Others left because a big provider gave them a really good deal and a couple months for free.

Neither of those is a bad business decision on its face. A buy-sell changes who makes the calls, and a free tool is tempting when you are watching every line on the expense report. The problem showed up after the switch.

Should dealers switch to a cheaper trade-in tool?

Here is what Mike said those stores found: it didn't take them long to realize that they were getting the same amount of traffic to their website but converting way less of it. The free tool or the cheaper tool simply did not convert as well.

That is the part that gets missed in the pitch meeting. Your website traffic is the same whether you pay for the trade tool or not. What changes is how many of those shoppers turn into a trade lead your used car manager can actually work. If the tool converts fewer of them, you did not save money. You paid for traffic and let more of it walk.

Mike's takeaway is simple: sometimes getting a really good deal just means you are not going to get as much business out of the traffic that is coming to your website.

What to check before you switch

• Trade leads per visitor. Compare your dealer website conversion rate on the trade tool before and after any change, with traffic held roughly steady.

• Lead quality. Does the tool capture the vehicle, the customer, and their intent to sell, so your team can follow up with a real number?

• What happens after the first visit. A shopper who is not ready today should keep hearing from you about their vehicle's value.

• The total cost of fewer trades. A free month is easy to measure. The trades you did not get are not, unless you look.

If you want more on this, see our related pages on how to get more website trade-in leads and choosing the best trade-in tool for dealerships, or browse the full Website Trade-In Leads topic hub.

Where MOTO(acquire) fits

MOTO(convert) is the website trade tool behind this conversation. It includes instant valuations, firm offer requests, and monthly value tracking, plus the free buying power tool. The goal is to turn more of the traffic you already have into trade leads.

The returning stores were also excited to try MOTO(drive), the service drive acquisition tool MOTO(acquire) just started launching. It uses DMS data and automated texts, pushes VIN and miles to inventory tools, and alerts the sales team when a customer is ready. MOTO(drive) stores consistently buy about 1% of their repair orders without dedicated service acquisition hires.

Beyond the website and service lane, MOTO(retain) sends past sales and service customers their vehicle's value every month, and MOTO(social) gives each person posting on social their own link with leads attributed in the CRM.

The bottom line from Mike

A cheaper tool can look like a win until you compare what it produces. Hundreds of dealers use MOTO(acquire) to buy more cars from their own customers, and the stores that came back learned the difference the hard way.

If you are a dealer who wants to get more trade leads, buy cars out of service, send value tracking emails to past customers, or convert people off of social, reach out. The team at MOTO(acquire) will be happy to help you out.