AutoSuccess Aug09
- 1. The 2009 Synergy Sessions - See Center Spread for Details August 2009
- 4. feature solution 3834 Taylorsville Rd. Building A, Ste. 1B Louisville Kentucky 40220 | 877.818.6620 / 502.588.3170 | AutoSuccessOnline.com / AutoSuccessPodcast.com | info@autosuccessonline.com sgivens1@autosuccessonline.com Susan Givens, Publisher August 2009 By AlBabbington EMERGING FROM A POST- A Little Mistake Cost These RECESSION ECONOMY PUTS COMSUMERS IN THE Dealers $250,000 A Year DRIVERS SEAT Have you ever felt like you were making dealers nd hidden pro ts and correct- - HOW CAN DEALERS GET little mistakes that are costing you tons ing little mistakes that were costing design@autosuccessonline.com Thomas Williams, VP & Creative Director of money at your dealership? Do you those dealers hundreds of thousands of ON BOARD? feel like there are hidden pro ts in your dollars. These almost-magical solutions dealership that are just waiting to be un- turn little mistakes into instant cash covered? If you are like most dealers, the machines of bottom-line pro t. leadership solution Ken honest answer is, YES, Absolutely! 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. Subscription rate is $69 HOW LONG DID YOU THINK IT WOULD LAST? Because I have not met you and do not JohnBrentlinger 18 It’s a shame for YOU not to make know anything about your dealership, I steve brazill more money, when these dealers do it can’t say how much money is being left GAME PLANS SteveBrazill 33 so easily… unrealized at your dealership. However, I can say FOR CERTAIN that the num- MARK TEWART THINK WHAT YOU’RE THINKING ABOUT “Just one thing that Mark showed TomHopkins 34 us made us over $200,000 in profits ber of dollars is substantial and would author of ddavis@autosuccessonline.com Dave Davis, Editor & Creative Strategist shock you, if you knew. How To Be A Sales Superstar pg 3 pg3 in 90 days” – Franklin Greene, GM There are a few things that every dealer • Discover the one secret that will make sales & training solution Montgomery Ford LM should be doing to make money, espe- your dealership an additional million cially in this economy. LOWER VOLUME + LOWER “Our grosses went up 30% on the front dollars or more over the next ve years GrantCardone 09 PROFITS = DISASTER end, and we added almost 50% in the — We have several clients who have al- The Great News is that I have identi ed MarcSmith 17 TICKET TO RIDE back end. The best part of that is that ready experienced this and it will make those little mistakes and have big solu- scott norman our sales also increased over 25% and the hair stand up on your neck when tions for them. NO BS, just real measur- WHAT SHOULD MY CONTROLLER BE DOING? you hear this. ScottNorman 24 continue to increase.” able results that start happening immedi- – Gary Minneman Jr, GM super6@autosuccessonline.com Brian Ankney, Sales-Improvement Strategist ately and I guarantee those results. SeanV.Bradley 26 JIM ZIEGLER, AUTOMOTIVE SALES LEGEND Sunshine Toyota Call 888 2 Tewart (888 283-9278) or e-mail info@tewart.com to schedule a pg 4 pg2 FranTaylor 28 TRAINING YOUR WAY TO DEALERSHIP SUCCESS “Our sales have increased over 25% while our grosses went up over $800 • Sell more vehicles without spending $1 more on advertising private and con dential interview. per vehicle and we have experienced • Increase your gross pro ts anywhere from $300 to $800 a vehicle ***We will share candid and speci c over $105,000 in additional service information that will prove to you without profits from lost previous customers, • Make an extra $100,000 or more in a doubt what I am saying is true. You will marketing solution many of which had not been to our your service pro ts in 90 days or less • Double and even triple your sales and see real dealer examples that support these SIMPLE STEPS TO ENSURE VIDEO SUCCESS dealership in years.” TimJames 08 – Wayne Gregory, Dealer service customer retention results. Because of time constraints, there will only be a limited amount of dealers kirk manzo West Ashley Toyota • Double your appointments and sales HOW TO SOURCE USED VEHICLES FOR DalePollak 10 REASONABLE PRICES conversion from Internet leads, Web accepted into this program. jwarner@autosuccessonline.com John Warner, Sales-Improvement Strategist My name is Mark Tewart and I am the site leads and third party leads KimOrr 14 BEYOND PPC AND SEO To Dominate in Search, Dealerships Must Tackle Online Customer Reviews President of Tewart Enterprises Inc. For • Increase your F&I Product penetra- P.S.: Please, only Dealers Or General almost two decades I have been helping tions by 25% immediately Managers may respond. HELPING SMALL BUSINESS OWNERS SO YOU pg 6 pg1 KirkManzo 16 CAN INCREASE SALES “In a market where opportunities for new ChuckPatton 22 KEEP YOUR EYE ON THE UIO sales are limited, finding creative ways to support local companies can be MattBaker 30 BUSTING STAFF EVENT MYTHS, PART 1 the key to unlocking additional unit sales.” - Kirk Manzo MarkTewart 32 BILLY MAYS VS. MICHAEL JACKSON
- 5. marketingsolution TimJames GrantCardone sales&trainingsolution SIMPLE STEPS TO LOWER VOLUME + LOWER ENSURE VIDEO SUCCESS PROFITS = DISASTER Unique inventory Video Strategies from a dealer, maximizing the use of their Price is always a 50 percent, you would have to sell twice as If you don’t know that the lower price/lower videos can increase • Actual Video —Taking an “actual video” existing content and time with same day very sensitive issue, much product to be even, which during a volume formula is a recipe for disaster, you conversion rates dramatically if used correctly. of a vehicle and providing consumers generation and distribution. especially during times of contraction when period of economic contraction replacing and your people will believe it (incorrectly) How many additional conversions can be with a high-quality walk around of a car money is tight; consumers are scared and loss volume would be more difficult than to be an option. Also, during periods of expected greatly depends on how many can provide some of the best emotional • Professional Voice Over — This option more selective with their money. The first just learning the skill of holding price. contraction, experience is worthless and consumers could potentially view a video “content,” but can take a large investment also allows a dealer to record a unique response (incorrectly) is to reduce price skills are everything. The ability to sell (reach), how often a video is available to be of “time.” You may want to use a stitched human voice layer for each unique video. in order to make up for less volume. It is A lower price will not solve your problems your product and justify the price by viewed by a consumer (frequency), and how photos option for your main videos and This option can produce a professional- a myth that a lower price will sell your and could actually reduce the perceived really building value, selling yourself, much “additional emotion” a video adds to reserve the actual video option for select sounding voice over and generate one of product and, in fact, a formula for disaster value in your product. Know that the public your company and creating a true value the vehicle display page. Many dealers have inventory pieces and inventory specials the highest levels of emotional response and guarantee of failure for most. is being conditioned to believe that things proposition is more valuable than experience. tried adding video with little or no additional for your Web site. If using actual video, with high-quality content. However, are tight and they will be more selective with conversions, while others have experienced control your environment to get the because the voice layer is generally Unless you are Wal-Mart or the Dollar their purchases. That means they will not just Get yourself and your staff thoroughly amazing results. What was the difference? best video quality. If you do not have a outsourced, this option can be quite Store, who have their entire business models be shopping you against similar products, handled on the fact that lower price and separate “video staging area,” then the expensive and can require an additional built around very small margins and high but also unlike products. “Do we buy a car lower volumes are a formula for disaster. The first rule of video is exceed staging area used to shoot your vehicle three to four days (at a minimum) for the volumes, the lowest-price model will fail or redo the kitchen?” In this case, lowering It costs less money to train people than it expectations. To exceed expectations, you photos may work. Be certain to zoom video to be generated and distributed. the individual and the company. Selling by your price will have nothing to do with their costs to give your product away, especially must focus on two basic fundamentals: in on each special and unique feature as price is an indication of a weak-minded and decision — only building value will. since lowering price doesn’t guarantee a • Data Driven Human Voice — This poorly trained individual or organization content and time. Many of the dealers who you talk about it. Most importantly, get sale and won’t make up for the reduction in option utilizes vehicle data to trigger that looks for squirrel-like solutions to their Rule: Money moves to value, never to the tried video with little or no success put emotional and sell the car. volume. So do the math, and avoid disaster a pre-recorded “human voice” script challenges. I can show you an almost endless lowest price. little or no effort into the “content” of their in your business. segment based off of select vehicle data. list of companies that have used the lowest videos; thus, their videos did not generate • Stitched Photos — Using “stitched The script segments are then stitched If not completely sold on the value much (if any) additional emotion, and/ photos” to generate a video file is one price model that have filed for bankruptcy or together to produce the audio segment proposition of your product or service, the or they did not maximize the reach and of the most popular video choices, closed their doors this year alone. Grant Cardone is an author and the of the video. The human voice option prospect will elect to do something else with CEO of The Cardone Group. He can be frequency of their videos. because you can utilize photos that have can produce a variety of scripts that can Do the math: Lower Volumes + Lower his/her money. Doing nothing, by the way, contacted at 866.865.3175, or by e-mail at already been generated for your vehicle sound similar to a custom voice over; Profits = DISASTER. If you reduce price is doing something else. gcardone@autosuccessonline.com. Content display pages to create your videos. The The power of visual marketing (video) is however, the content of the video can be stitched photo option comes with several limited as they do not offer the dealer the that it can turn a static, sight-based ad into a “audio” options that should be considered dynamic, visual ad, dramatically increasing ability to customize their message for a carefully, as the audio option can affect specific vehicle or to a specific customer. the emotional response of the ad and making both the content and time factors. it easier to build trust, value, reliability and This option can maximize time with same urgency, and inspire mental ownership. Audio Strategies for Videos day generation and distribution. Successful dealers work hard to create • Custom Voice Over — This popular • Data Driven Text to Speech — This emotional ads for their online media with option allows a dealer to record a unique option utilizes vehicle data to create “unique” photos and a “unique” emotional human voice layer for each unique pre-defined scripts based off of select vehicle descriptions that truly “sell” the car. vehicle video. This option can produce vehicle data. The scripts are then stitched a very professional-sounding voice together and processed through a TTS Time over and generate one of the highest editor to create the audio segment of the Dealers pay thousands upon thousands levels of emotional response with same video. The content of the video can be of dollars each month to market vehicles day generation and distribution, thus limited as they do not offer the dealer the online. Thousands upon thousands of maximizing both content and time. ability to customize their message for a consumers view their online ads each and specific vehicle or to a specific customer. every day. Successful dealers understand • Text to Speech — This option is popular This option can maximize time with same the importance of getting their ads in front because it utilizes the same customized day generation and distribution. of as many potential consumers as possible emotional vehicle descriptions used and work hard to get their ads created and to highlight the “unique” features that distributed to their online media the day a “sell” a car in a dealer’s online ads to Tim James is the director of sales with car is available to sell. To maximize reach automatically generate a TTS audio layer HomeNet, Inc. He can be contacted at 866.924.6573, or by e-mail at and frequency, many dealers even create and for their videos. TTS videos can generate tjames@autosuccessonline.com. distribute their ads to their online media three extremely high levels of emotional or four times per day when possible. response with zero additional involvement 0 0 8 9 www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional
- 6. marketingsolution DalePollak HOW TO SOURCE USED VEHICLES FOR REASONABLE PRICES I recently had them as well. The same can be said for many showed the dealer that there were currently two lengthy domestic models. six available for sale in a 150-mile radius of teleconferences, one with a dealer located his dealership with an average retail price in Pennsylvania; the other with a dealer Again, I believe the key to success is to be of $16,278. I further showed the dealer that in Rhode Island. On each call the dealer able to identify and source those cars that after an anticipated $500 reconditioning and expressed concern and anxiety over their are “hot” in your market and yet not known a $2,500 profit, he could purchase the vehicle inability to source vehicles for prices that by every other used car manager in town. for as much as $14,083 and have the third would allow for a reasonable profit. The pain For example, I demonstrated to the dealer best value out of six in the market at a retail of these dealers is without a doubt being in Pennsylvania that in the last 45 days, 17 asking price of $17,083. With an average shared by all. The solution, however, is percent of the vehicles being sold in his Black Book of $13,675, and an average understood by few. market were compact SUVs in the $15-$20k auction price of $13,362, the dealer agreed price range. Yet, compact SUVs only made that the vehicle could be easily purchased. I explained that the answer to their stocking up one percent of his inventory. And, when problem lies in what I call “inventory we drilled down to identify the hottest of Interestingly, when I had a similar discussion engineering.” What I mean is that you have these $15-$20k compact SUVs, you never with the dealer in Rhode Island, one of the to be able to find the hottest vehicles in the would have guessed what came up No. 1 on hottest vehicles in his market was an ‘08 market that are not understood by every other the list; how about a 2008 Suzuki XL-7? I Kia Sorento. Again, the dealer couldn’t used car manager in town. In the case of one showed the dealer that there are presently remember stocking one and would have of the dealers, 97 percent of their current 62 available in his market and in the last 45 never thought of doing so. The appraisal used car inventory was Toyota, Honda or days, 165 have sold. Wow! Triple wow! The exercise demonstrated a similar result in that Nissan. I asked, “How in the world would market days supply of this vehicle was an the Sorento could likely be easily purchased you expect to acquire vehicles of these astounding 17 days. because its supply and demand was not well makes for reasonable prices?” Every used understood by every used car manager in car manager in town thinks that these are Knowing things about your marketplace that town. By the way, the ‘08 Suzuki XL-7 was the right vehicles, and they are out chasing are not generally understood by everyone the seventh-hottest vehicle on the Rhode else is the key to Island dealers’ list. making money. When I asked the This thoughtful approach towards stocking dealer if he thought used vehicles stands in stark contrast to the this red-hot vehicle common practice of “happenstance” which was obvious to is employed by most used car operations every used car today. “Happenstance” stocking is when used manager in town, vehicle inventory is stocked with vehicles YOU HAVE CUSTOMERS he had to admit, that “happen” to be traded in or “happen” most likely not. I to be available at this week’s local auction. “Happenstance” stocking is a poor way of AND PROSPECTS. further asked him if he ever would creating conditions for success. Both dealers have thought completely agreed with the merits of a about stocking this different approach. vehicle, and he The inventory engineering approach to WE HELP YOU GET responded that he wasn’t even sure if stocking takes time and effort and requires doing and thinking in a way that is unfamiliar A LOT MORE MILEAGE he knew what the vehicle looked like. and unwelcome by most used car managers. However, the time required to identify these OUT OF THEM. The market’s vehicles is not time spent, but rather time invested. This is because the time invested in ignorance about inventory engineering is, in fact, engineering this vehicle makes Let’s roll. it an especially future success. The best and most successful used car operations today are embracing the easy vehicle to inventory engineering approach to stocking purchase. I took by providing their used car managers, and the dealer to his in some cases, stocking assistants, with new appraisal tool tools and training to do so effectively and where we booked efficiently. the Suzuki out in 866-964-6397 imnLoyaltyDriver.com Black Book for an Dale Pollak is an author and the founder average wholesale of vAuto. He can be contacted at value of $13,675, 866.867.9620, or by e-mail at and a national auction dpollak@autosuccessonline.com. value of $13,362. I then 1 0 www.autosuccessonline.com
- 7. Expansion from simply ignoring direct mail Mobile Marketing want to speak with a sales person on the phone and want simple answers without a sales pitch. pieces to actively boycotting businesses Mobile subscriptions reached 3.3 billion Use live chat to engage them and build a relationship without being overly intrusive. This that are still employing it is almost certain. in 2008 — more than half the global media will provide you with an opportunity to build value in your vehicle and your dealership Business must embrace digital and other population. Leveraging this channel can and that will make the prospect far more likely to visit your dealership’s showroom. paperless new media channels for interactions significantly extend your reach and make that are already widely accepted and relied on it easier than ever for customers to access by consumers. In the post-recession economy, inventory details, service coupons or your In our post-recession economy, the rules of engagement have changed. Customers demand respecting the environment will equate to online service scheduler. Mobile marketing is new ways of communicating. No longer will a showroom and a toll-free number suffice. Your respecting consumer preference. always present and offers instant gratification customers are communicating in these new ways. If they are not communicating with you, you to your customers. With mobile marketing, can assume that your competition has already started the conversation. The consumer is in the “My Way” you can deliver an immediate call to action, driver’s seat, they will determine their level of loyalty. Dealerships can influence these levels Consumers will expect, and demand, that the instant alerts, coupons, sale information and get on board with the post-recession consumer by embracing these changes and leveraging companies they reward with their business and specials, as well as increased customer the technologies available to them. Identify ways that your dealership can simplify, “go green” know them personally, or at least create that service frequency and the speed of their and acknowledge “their way,” and it you’ll be well on the way to earning loyalty from your perception in their outreach. Knowing what new purchase sales cycle. Watch people in customers. communications consumers want to receive public walking around with cell phones in — and how they want to receive them — will hand. They are texting, chatting, Twittering, For a free post-recession readiness evaluation call or e-mail me with be critical to earning loyalty. visiting social networking sites, reading the information below. e-mails and more. The mobile channel is How can dealers act on these quickly becoming the most popular and Al Babbington is the chief executive officer of OneCommand. requirements to ensure loyal behavior? widespread communications channel in He can be contacted at 866.254.5043, or by e-mail at Below are a few tools that can not only help history. Be sure that your dealership is ababbington@autosuccessonline.com. you fulfill the three critical demands of the reaching out to your customers where they post-recession consumer, but are proven to are communicating most often. A fringe increase loyalty, profits and satisfaction. benefit of mobile marketing is that it’s much By Al Babbington more economical — texting an offer to Personal Web Pages customers costs almost nothing, especially It is important to maintain the relationship compared to a mailer. It’s also “greener”; you worked hard to establish at the time of no trees were cut down, and no carbon was your customers’ purchase. Providing a central released to deliver your message. In today’s automotive environment, customer loyalty may be rare, but it’s sought after location where your customers can indicate more fervently than ever before. Industry experts have been preaching for decades the their communication preferences, track Emerging Technologies importance of earning it; today, it is an absolutely critical element for success. vehicle maintenance, schedule service and Social networking is growing every day. access special offers and coupons not only Facebook, Twitter, Plaxo, LinkedIn and Dealers should be recognizing that more than price matters in today’s rebounding market. simplifies the ownership experience, but also many other social networking sites provide Instead of fighting the price war, they should be seeking strategies and solutions that help keeps the owner connected to your dealership. the opportunity for your dealership to find to increase owner loyalty, in both sales and service. Unfortunately for consumers and This empowers your customer, and will new customers and keep the ones you retailers alike, this is actually a challenging adjustment to make, given that the recent increase both owner loyalty and service have. Your sales department will benefit recession brought about a period where consumers didn’t care about service or loyalty frequency. Your customer will feel connected from prospecting on these sites and your because they were being squeezed by the economy — they simply wanted the best price. to your dealership through their vehicle and dealership will also benefit by using them However, post-recession consumerism is showing a significant trend toward reversing this their personal site. When it’s time for service for customer service-focused interactions — approach completely. Consumers in the market today are looking for retailers who make it or time to trade, your customer will visit translating to increases in owner satisfaction simple to do business and who respect their time. Retailers meeting these expressed needs this site for vehicle information. This will and loyalty. People are spending more and will be the ones to gain customer and owner loyalty, something that will be increasingly ensure your dealership maintains top of mind more time every day visiting these sites. important as vehicle demand returns. awareness. They post pictures, play games, connect with old friends, make plans and more. Your How can dealers assure they are positioned to meet the needs of the Preference Management / dealership can become a part of this positive post-recession consumer? Permission Marketing experience. You can become “friends” with We have isolated what we believe to be the three critical demands of the post-recession Empowering your customers to tell you how your customers. You can share information consumer: simple, green and “my way.” Understanding these needs is the first step to they’d like to receive communications, and about events, fund-raisers, and even sales. fulfilling them in the dealership. for what purposes, will be invaluable. Not The challenge will be staying engaged only will it significantly increase response without overwhelming them; keep your Simplify rates, but it will help your dealership save communications relevant and interesting. Use The need for consumers to streamline will continue — not only in the form of fewer time and money by eliminating unnecessary these sites to share with your customer base extravagant purchases, but also in the number of companies they trust and reward with channels and communications. The process all the positive things in the community your business. Having multiple business relationships demands too many hours of the time- should be simple. Your customers should dealership is doing so that your dealership constrained post-recession consumer. Fewer, more-trusted relationships will be a theme be able to configure their communication becomes a part of your customer’s social in both their personal and professional life. The post-recession consumer will rely heavily preferences through a simple and secure network. This will be an increasingly on recommendations made by a select few trusted sources and use their advice to make interface indicating how they would like to essential element of effective customer choices on where to spend their money. Providing this advice simply — how and where be communicated with based on the type communication. the consumer wants it — will be key. Businesses must be prepared to communicate of message being sent. Once you have this through easily accessed channels, such as social networks. information, your dealership is ready to Interactive Media begin communicating in a convenient and Your Web site offers customers a unique, no- Embrace “Green” unobtrusive manner. Your customers will pay pressure shopping environment. Yet, often As embracing green becomes more and more of an sociological as well as an economic more attention to your communications with because of this, communicating to your online necessity, consumers will be even more vocal about not killing trees to send mail they’ll them because you will reaching out with the prospects can be a challenge. Make live-chat 1 never look at, when their mobile phone is their complete connection to the world. method they requested. an available option. Often customers don’t 2
- 8. marketingsolution KimOrr BEYOND PPC AND SEO To Dominate in Search, Dealerships Must Tackle Online Customer Reviews Dealers may think need to be devoting resources to online Undertake a Storewide Campaign To that because they’re reputation management as a core part of Generate Positive Reviews: spending on pay-per-click or SEO, they’ve their marketing — period. • Campaigns to generate positive reviews got “search” covered. But while effective are a new mindset for dealerships. Go to SEO is still an absolute must, it’s only one The facts speak for themselves: Roughly the top and get total management buy-in bite of a much larger search apple. Just doing three out of four shoppers now read online to make it a formal, new priority. PPC or SEO alone isn’t just incomplete — dealership reviews — and more than one in • Consider mandating that salespeople frankly, it’s yesterday’s news. five change their dealership selection based generate reviews. Recognition is key to on something negative they read. Online success: When a great review comes in, This is because of profound, recent changes reviews now trump both dealer loyalty and send it to the entire store. on the Internet. Two years ago, a great SEO location in the shopper’s decision. • Consider blocking review sites at your campaign meant your dealership got far more dealership computers. If a bad review on visibility and traffic than your competitors’ Sure, this new customer-centric world seems a competitor; a fake, positive review; or campaigns. But that “early adoption” edge is scary, and managing it seems confusing. even real customer reviews come from gone for two reasons: But dealers who’ve become aggressive with your internal IP address, you can suffer 1. Search vendors have really turned up the a proven “online reputation management” serious blacklisting consequences. heat. The honeymoon is over, because process are generating hundreds of positive your competitors are also focusing on reviews, dominating first-page results at Get Customers Writing: SEO, creating even more competition for Google and other search engines, and getting • Every team member who has a happy the first page of search results. a ton of incremental calls into their stores customer needs to tactfully ask them 2. The Internet landscape has radically every month. to share their experiences when they evolved — consumers now search (and get home, explaining how much their quickly find) new online outlets like How to Turn the “Bad and Ugly” Around and Generate a High Volume opinion is valued. Don’t try to bribe a consumer review and dealer rating sites customer - it never works. and directories, from Yelp to CitySearch. of Positive Reviews: Monitor/Get Organized: • When you receive a satisfied response to Think about how search results overall • Consistently monitor the major review your “thank you for purchasing” e-mails, have changed, with everyone getting more sites (CitySearch, Yahoo!, Yelp, respond, requesting an online review. competitive, from your direct competitors Google Local, Edmunds, InsiderPages, • When you get a great manufacturer to third-party lead providers. Plus, your DealerRater, etc.). survey, contact that customer, asking for Web site and positive image are now also • Gather your reviews, and organize them an online review. competing with an explosion of consumer into: “Good,” “Pretty Bad,” and “Ugly.” • Mandate that your service department review sites that often show up on the first generate reviews and implements page of Google. If you haven’t Googled your Address The Ugly: analogous processes. dealership’s name, you should; it’s a sobering • If you have bad reviews, call the eye-opener. Most likely, you’ll find the many customer and try to make it right. You Dealers who’ve unleashed this review places your dealership’s been reviewed. And may not know them by their online name strategy are realizing this is one of the most with 45 percent of all dealer-related searches “Mary123,” but often searching your powerful marketing opportunities ever. And directly involving the dealership’s name, a CRM tool you’ll find an e-mail match. while generating a high volume of positive big percentage of your customers are now The goal is to satisfy your customer, so reviews can change the whole “personality” just one click away from reviews that could they will revise their review. of the store (salespeople become vastly more cost you big business. • Respond online — Most sites allow motivated to provide great service, owners businesses to respond to reviews directly, are proud, your CSI ratings go up, etc.), this Because so many dealer-related searches and if not, simply post a response. It isn’t just a “feel good” campaign — it’s a involve the dealership name (and with shows people you care about customer serious driver of new and long-term business. those results increasingly dominated by service. customer reviews), a total super-powerful • Educate your team on how respond. search strategy today must combine great Even with the worst review, the tone Kim Orr is the vice president of SEO with an aggressive customer review needs to be neutral, fair and transparent. eXtÈresAUTO. She can be contacted at strategy. That’s today’s 1-2 search knockout Never amp it up with a reviewer, because 866.231.6135, or by e-mail at punch. And GMs and dealer principals the customer is always right. korr@autosuccessonline.com. 1 4 www.autosuccessonline.com
- 9. marketingsolution KirkManzo MarcSmith sales&trainingsolution HELPING SMALL BUSINESS OWNERS SO YOU CAN TICKET TO INCREASE SALES RIDE Successful explaining that you are offering a no-cost some other extra benefit (oil changes for In the song “Ticket Business cards are for letting people know organizations and employee benefit program to a select group life), the details will need to be put in writing to Ride,” recorded in who you are, what you do and where you individuals understand that you must of companies. Let them know you will be and communicated to all the employees on Studio 2 at Abbey Road Studios on February do it, and to give someone your contact help others achieve their goals so you contacting them to see if their company a regular basis. A kick-off meeting would 15, 1965, The Beatles sang “She’s got a information — not to write vehicle can accomplish more. In a market where might be a good candidate to participate in be appropriate to start, followed by flyers ticket to ride and she don’t care.” There are identification and mileage on. I suggest you opportunities for new sales are limited, the program. It is important that you explain posted in their break room. Inclusion in their many interesting theories as to the possible leave them on your desk when at work, not finding creative ways to support local in the letter that only a select group of company newsletters, as well as stuffing the companies can be the key to unlocking companies will be eligible. payroll envelopes of each employee with meaning of that phrase. Among these is the in your pocket. If a customer wants your additional unit sales. flyers you would provide, should get the theory that the “ticket” in question is an card, then they need to come in and get it. The goal is to setup a face-to-face meeting to message to everyone in the organization. actual object, indicating that the girl in the When asked the question “Do you have a A by-product of a tight economy can discuss if their company will be a good fit for song is leaving the singer for the British card,” I would respond by saying: “Yes, I represent opportunities for today’s the program. When speaking with the owner/ The nice thing about this approach is that town of Ryde. But I think the thing to really keep them right on my desk. Before you automotive sales professional. For example, president, verify if they directly oversee very few salespeople will ever take the pay attention to here is the fact that “she leave today, I’ll be happy to give you my small to mid-sized companies struggle to the benefits packages or if someone in HR initiative to develop and implement an offer their employees a benefits package handles that responsibility for them. Ask if don’t care.” card, as well as some other information I employee purchase program. The chances of that does not break the bank. Any benefits the company currently offers an employee another salesperson coming in behind you think you will find helpful in selecting your approach that is available at little or no cost purchase program for automobiles. Most after you’ve already set a program in place is It never ceases to amaze me how sales new vehicle.” will strike a cord with business owners and will not have a program and will be good almost zero. Most people just don’t want to professionals so often greet a customer on HR managers. The idea here is to approach candidates to participate. work that hard. Good for you. the lot or in the showroom floor and provide The Beatles were an amazing band and companies in your local market area that them with a free pass right up front. Yes, would have done well in the car business, have 100-1,000 employees. Less than 100 The advantage to the employer is that the program requires no financial investment. a ticket to ride, for customers to leave the I think, especially with songs like “Help.” may not be worth the effort, and more than Kirk Manzo is the president of The The only thing they must do is help in Manzo Group. He can be contacted at dealership. And, just like the song says, Maybe they understood that everyone 1,000 has a lot of red tape to deal with. 800.858.6903, or by e-mail at they don’t care. I’m talking about a business needs help, even salespeople. Managers, coordinating the communication to their You should send out a letter to the company team about the benefits of the program. kmanzo@autosuccessonline.com. card. piece of glossy, high- when salespeople do bring someone inside president introducing your dealership and Whether you include preferred pricing or quality parchment that tells the world you’re to get their card, you need to be proactive somebody — kind of like Steve Martin in helping them stay on track. This kind in the movie “The Jerk,” when the new of leadership encourages the sales team to phonebook comes out. complete the sales process, and focus on getting the customer to a write up. How many times have you heard a customer say: Salespeople, if you can’t close them, at • “Do you have a card?” least one of the managers will have an • “Just give me your card.” opportunity. All I want is an opportunity to • “Can you write that on the back of your close, and getting the customer from the lot card?” into the showroom and in front of a vehicle • “We’ll be back. Can we get your card?” before handing them a card is one of the ways to get it. Managers, the next time you For most salespeople, not to mention a have a sales meeting, ask your sales staff to manager or two, it’s just a natural reaction to leave the cards on their desk, and let them whip a card out and give it to the customer know that the most important part of the on the spot. Early in my career, I learned that job is to follow the process, and that you giving someone a card on the lot was often will be there to help them maximize every the kiss of death, or as The Beatles put it, a opportunity. ticket to ride. A customer would ask for my card, and as soon as I presented it to them, Stop giving your customers a “ticket to they would simply say, “We’ll be back.” ride” and start removing some of the “helter skelter” (yes, another Beatles song) from “Ticket to Ride” was the first Beatles song your sales process, in other words, the chaos to go over three minutes. That’s more time and disorderliness of it. Do I think The than most customers stick around after Beatles would agree? Yeah, yeah, yeah…. receiving a salesperson’s business card. As any manager will agree, the whole concept of the sales process is to get the customer off Marc Smith is the president and CEO of the asphalt and onto the showroom floor, and Marc Smith International LLC. He can be 66 665 9, y contacted at 866.665.4479, or by e-mail at salespeople armed with business cards can msmith@autosuccessonline.com. be a dangerous proposition and a disruption 1 to the sales process, so why carry one? 1 6 7 www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional
- 10. leadershipsolution JohnBrentlinger HOW LONG DID YOU THINK IT WOULD LAST? What is really going you get roped into a deal, rather than you of affairs had to happen. What caused it? on in the car business doing the roping? Greed, self-interest and egos. When real- in America? And how long did you think it world principles and genuine training is could last? How could any industry survive I don’t know how else to put this, or how laughed at, when honest salespeople are the cut-throat competition; the obscene to say it in a nice way. The buying public laughed out of the dealership, when doing turnover of salespeople; the ridiculous simply has had enough of “the way we’ve and saying anything to sell something to advertising; the constant attempts to run been doing it for 40 years.” They do not have anyone is the soup du jour, how long did every other dealer out of business; the to take it anymore. If — just if — there were you think it would last? horrible management; the deal stealing to enough dealers who did not want to see the keep competition from getting an honest competition out of business; and if — just The Greeks had it right: “The mill of the sale; the daily reliance on tricks, games and if — there was some kind of mutual respect gods grinds slowly, but it grinds exceeding arm twisting to get the sale. How long did instead of mutual hatred and jealousy between fine.” Until enough dealers are ready to you would think it would last? Until you got dealers, then there might have been enough come back kindly, learn to lead, manage yours? Until they got theirs? Until you were strength to combat current events. Plain and and sell honestly, and learn to run their all out of business? simple, the manufacturers and government dealerships with ethics, morals and saw an opening and they took it. And they principles, something tells me that this hard Having watched this thing unfold first were right. They were counting on the fighting rain is just gonna keep on fallin’. hand for the last 10 years, this is really no between dealers to continue so it would dilute surprise. What goes around always comes any opposition to their efforts. They are back around, and the auto business is no succeeding, dealerships are failing, the buying John Brentlinger is a sales and exception. How does it feel when someone public is getting the shaft, end of story. management trainer, executive coach jerks out a pencil and does the foursquare and author. He can be contacted at 866.859.6504, or by e-mail at on you? How does it feel when someone The truth is that leadership and management jbrentlinger@autosuccessonline.com. crams their version of what is good for you has been so pathetic, so greedy and so down your throat? How does it feel when isolationist for so long, this current state 1 8 www.autosuccessonline.com
- 12. marketingsolution ChuckPatton KEEP YOUR EYE ON THE UIO The weather gets Can your dealership be competitive if you dealership has about 65 percent of their hotter and steams up have just “reacted well”? Are you planning customers only servicing once per year. This with the sounds of Little Leagues across on how you will react now to improve is an opportunity. If you are already doing the nation. Coaches try to give their players conditions six months from now? Dealers reminders, then change some things up to advice that will last them the rest of their who do will recover significantly faster increase your customer frequency. lives. “Keep your eye on the ball” is one than the people who are stuck in “reaction” of those anecdotes. In the automotive mode. You must new find ways to drive up 4. Plan your promotions around the up and market today, we are in the ninth inning the UIO and find ways to get a larger share down months. Plan your prospecting efforts with two outs and the count is three balls of the customer base. on good months when the fish are biting, and two strikes. It is time to keep your eye and plan your service clinics with new and on the ball, or in this case, on your units in Don’t be discouraged, because the loyal clients when times are tougher, to operation (UIO). opportunity is there. The good news about level out the losses. the residual effect of this market is that sales The diminishing UIO is a particularly and service will become a more cohesive 5. Incorporate your e-mail into your other interesting indicator because it tends to first unit to take more share of the market and programs, but don’t depend on it. E-mail affect the service department. If your service the customer base. More emphasis and and direct mail are not interchangeable yet. department is hurting, then it’s like using a budgeting will continue to be put on the Most dealers only have e-mails for about cracked bat when you come up to the plate. backend because the realization that service 30 to 40 percent of their database. Blasting We all know the secret is out; the backend is truly profitable will be internalized. In quick messages for mid-week discounts can is profitable. But service departments are turn, loyalty levels will rise along with new elevate the profits for a week and ultimately panicking now because their core base of car sales. Extreme conditions tend to make make a more profitable month. customers (those who have vehicles within you more aware of the economic climate warranty that are younger than three years) around you. Strong dealerships understand 6. Track anything and everything all has been dwindling for about 18 months, that an investment in service is an ultimate the time. Each customer should fall into depending on which market they are investment in the sale of the customer’s categories based on behaviors. Those located. next vehicle. If you believe in that principle, categories determine how you market to that then it might make sense to analyze how the person and they change every month. Do the math with these national trend most recent sustained drop in sales is going numbers: to affect you moving forward. 7. Know who you are and preach that with • Number of vehicles in your database – repetition. Consider also who you are not, in 10,000 Every service manager should be expected the eyes of your customers, and get better at • Number that leave per year – 2,000 or to have a “work smarter” plan rather than a becoming what your customer needs. about 20 percent “work harder” plan. Dealerships are looking • New units sold every year – 1,300 to hire service leaders who know how to run Ultimately, you need a new strategy. • New service customers every year – 700 a business. If you don’t have a plan, then Driving in more sales from a larger share • 30 percent decrease in sales over 12 don’t plan to work. of your customer base should be No. 1. It months – 390 units is the least costly plan to reach the market, • Lost service sales potential sustained 1. Take a snapshot of the database — define and will have the most immediate impact. over 18 months – OUCH and get to know the total opportunity of Then, concentrate on prospecting for lost customers who have serviced in the past 36 customers who have not serviced with you It doesn’t add up to an increase! And doing months. recently. This is not easy, but having the nothing will make these numbers a reality vision is the most important part. Most for you. As the market continues its trend, 2. Answer the following questions: dealers hire out for their marketing. If you dealerships that acclimate to change, or • How many loyal customers do you do, you need to know that the company keep their eye on the ball, will have a have? you are working with has a program that distinct advantage. In a single month, • How many of them come in more than matches your vision to best compete in your indicators of change may be small and you once per year? market. Be the expert at what needs to be don’t always see them in your net profits. • What typically have been your best and accomplished with your new strategy and the You may be reacting to the immediate worst months? “how” it gets done will fall easier into place. pain that a 30 to 40 percent sales decline • How many e-mail addresses have you is bringing to the dealership, but is that collected? Chuck Patton is the founder and CEO of enough? Many projections say a recovery • What are your primary ZIP codes? Traffic Builders Inc. He can be contacted will be in the fourth quarter of this year at 866.859.8520, or by e-mail at for much of our automotive market. This 3. Create a plan first to drive in your patton@autosuccessonline.com. 2 is typically when service is not at its best. customers more often. The typical 2 www.autosuccessonline.com
- 13. sales&trainingsolution ScottNorman Protective’s VSC claims team WHAT SHOULD MY delivers best-in-class service. CONTROLLER BE DOING? “What should my easy. Either the contracts have been sent for payment is due, the balance will fluctuate, Your service department controller be doing?” That is a question that arises frequently collection, or they are still in the office. Can you verify where each contract is? Are there but there should never be any holdback receivable older than the last payment. can count on Protective to… in 20 Group discussions. The answer to any contracts more than seven days old? Do Since the factory pays you by VIN, that question would take several articles. you log any returned contracts? shouldn’t this schedule be controlled by However, the first and most important VIN? Is yours controlled by stock number? …provide quick and easy claims handling answer to that question is “monthly Vehicle and Factory Receivables and processing keeping your business reconciliation of your balance sheet These schedules are aged for a reason! Are Finance Reserves Receivables moving forward. accounts.” there amounts due that are so old as to be Side-by-side schedules are useful when you With 4 claims processing centers across North America uncollectible? Even though this account is have numerous finance sources. This, of we are ready to take your call. We provide claims Your balance sheet, the front page of your scheduled, your assets may be inaccurately course, implies you have a separate general support 24 hours a day, guaranteeing you will speak operating statement, shows accounts listed stated if they contain uncollectible balances. ledger (GL) account for each finance to a person and not a machine. as either current assets or current liabilities, Is there documentation on all balances? source that pays you a reserve, and you as well as long-term versions of assets and should. If your bank notifies you about the …pay your customers’ claims resulting in a liabilities. The current portions should be Service, Parts and reserve amount when the deal is funded, supported with documentation that supports Body Shop Receivables adjustments should be made at that time high Customer Satisfaction Index (CSI) score. the balances they contain, thus verifying Do you have separate accounts for each by the appropriate office personnel, not We have approved more than $1.8 billion in customer each account’s accuracy. There is no reason department so the managers can track and your F&I staff. Shortages/overages should claims. you should not have a schedule to verify collect their responsibilities? Are past due be reviewed with the finance manager to accuracy or timeliness of each of these receivables being reviewed and a reserve set determine why there is a difference between …speak your language giving you confidence accounts. Monthly reconciliation of each up for their potential uncollectibility? The bank and book. we have the expertise to process your claim. account may require you to physically only body shop receivables should be from Our claims representatives have worked in service touch each asset, or settle it with a simple insurance companies with which you have Parts, Tires & Accessories departments and have more than 1,000 combined reconciliation form. Following is the a DRP or pro shop agreement! All other Here, a schedule won’t do, so utilize years of industry experience. first part of a two-part quick checklist of customers need to pay by cash or credit a monthly reconciliation form to track current assets and liabilities that should be card BEFORE release! If you do write-off a variances. Your parts management report corroborated at the end of the month. Part balance in a vendor’s account, do you keep will never reflect the same balance as the two will be printed next issue. track of that amount? You should consider general ledger. There are too many variables: Cash a zero-balance schedule controlled by the vendor number; the control is the year or work-in-process, parts returns, un-posted invoices, etc. To account for the variance We make the claims Starting at the top, everyone should department written off as the offset. each month, complete a reconciliation process easy for you. reconcile their bank statements monthly. For form. If you need a form, please contact internal control purposes, the dealer should Warranty/Service Contract me at the address below. Use your system’s physically receive the statement, and the Receivables management reports to track aging or reconciliation should be done by someone A warranty schedule will help you quickly inactive inventory. A low days supply may If you haven’t already, call and other than the person making deposits and review this account. Do you have any not necessarily mean your inventory is clean writing checks. Currently, many clients claims with an outstanding balance where and usable. What about your special order sign up with Protective today! perform a daily reconciliation using only partial payments were made? What parts bins; are they filling up? “positive pay” and a download from their about the remainder? Are there claims over bank. Using a schedule, you can quickly see 30 days? Can they all be supported and which checks have cleared and if there are justified? any problems with deposits. Scott Norman is an executive conference (shown above) Holdback Receivables moderator at NCM Associates, Inc. He can Gary Keene Contracts in Transit Again, as a scheduled account, this should be contacted at 866.747.0868, or by e-mail Claims Representative As a scheduled account, this should be be easy. Depending on when the holdback at snorman@autosuccessonline.com. 8 years with Protective 38 years in the industry Vehicle Service Contracts I GAP Coverage I Credit Insurance Dealer Participation Programs I F&I Training I Advanced F&I Technology Serving Automotive Dealers Since 1962 866.751.2684 www.protective.com/dealerservices 2 4 www.autosuccessonline.com Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, Old Republic Insurance Company backs VSCs, and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.
- 14. sales&trainingsolution SeanV.Bradley JIM ZIEGLER, AUTOMOTIVE SALES LEGEND When I first began process, as many consumers come into the terminated their retail locations. my sales career, I store with more information on a vehicle immediately was thrown into Internet sales. than even the salesperson might possess. At the NADA Convention this year in New In 1999, nobody really had a clue about The interaction Jim teaches now brings the Orleans, I had a chance to catch up with Jim automotive Internet sales. The Internet was Internet component into the transaction, and really have a good conversation with quickly changing the game — or a least had with questions like: him. I was surprised to find out how much the perception of changing the game — and • Have you shopped for a car online this man actually knew about Internet Sales, rendered much of what was being taught by before? technology, social media and other related these experts as irrelevant. Consumers were • What did you like about the online topics. I was further impressed that he not becoming educated, finding more choices buying process? only knew about this stuff, but he was an on the Web and were looking for ways to • What didn’t you like about the online active practitioner of all of these new cutting streamline the auto shopping process. All buying process? edge strategies and tactics. Recently Jim of a sudden, we had a new type of buyer • Other than getting a great Internet price, has been showing dealers how to integrate emerge onto the scene, and much of our what is important to you about the next “new school” techniques into their marketing prior sales training didn’t apply, or at least vehicle you purchase? mix. For instance, he shows them how to was becoming difficult to implement. leverage videos, blogging, social media These questions are a critical part of the and offers ways to increase their visibility Auto retailers recognized that the previous process, but they migrate to many of with Facebook, Twitter, Ecademy and other generation of trainers, often referred to as the traditional aspects of working with networks. He even showed me some things the “old school” curriculum, did not have the customers to provide a great customer that I didn’t know about social media. hands-on experience or knowledge of “new experience. Internet customers can be very school” sales tactics or techniques. Many demanding and it is important to meet or Anyone who knows Jim will tell you that didn’t even know what marketing to “Gen exceed their expectations. his public persona is very different from his X” clients meant. Being a member of the real persona. He is truly a kind, intelligent Generation X demographic — classified as I don’t get easily impressed by professionals and — lest I forget — a hilarious guy. He those born during the mid 1960s through the I meet in our industry, but I was floored encouraged me to become a Certified Public late ‘70s — I knew exactly what my peers when I got to know Jim Ziegler. Like Speaker like him. I took his advice was were looking for in a buying experience. many in our business, I read his monthly just approved as a member of the National column in one of the trade pubs. He clearly Speakers Association. I recognized that, to be effective and help speaks his mind, keeps things colorful dealers, I had to constantly expand my and always takes the side of the dealers. Jim recognizes the need for constant change knowledge about the new methods and Jim often relays valuable insights to the and, at the age of 62, his teenage energy and technologies that could help dealers. After vehicle manufacturers when it would enthusiasm hasn’t waned a bit. He looks at meeting with thousands of dealer owners prove troublesome for dealers to directly every day with a “What can I learn today?” and managers, it is clear that our industry provide their candid feedback. One of these attitude. The message is: If this guy can do still needs guidance, training and support to situations involved the infamous “Blue it, all of us can do it. So no matter what your keep dealers moving in the right direction. Oval” program that quickly became a sore age or experience in the dealership, get out This type of training is best typified by one point for many dealers, but they couldn’t of your comfort zone, and start taking some of those “old school” trainers, Jim Ziegler. publicly show their displeasure because risks to try something new. of possible retribution by the factory. Jim The main sales process that Jim teaches jumped in and pointed out the negative could be considered “old school,” but aspects of the program and showed it to Sean V. Bradley is the founder and CEO for many of us in the industry, it is the be a punitive program for many stores. of Dealer Synergy, a nationally recognized training and consulting company in foundation for starting the sales transaction. More recently he has taken up the cause the automotive industry. He can be While many aspects are still the same, for the Chrysler and Dodge dealers to get contacted at 866.648.7400, or by e-mail at technology has helped evolve the compensation for them when Chrysler sbradley@autosuccessonline.com. 2 6 www.autosuccessonline.com
- 15. sales&trainingsolution FranTaylor TRAINING YOUR WAY TO DEALERSHIP SUCCESS You might have employees, but when we took this store different salesperson speaks every day. We the best tools in the over, it only had a couple of salespeople, talk about the importance of follow-up and business, be selling the most sought-after because they were only doing a couple of our awesome new prospecting system. No vehicle in the industry, and have the location deals. They had one sales manager and one dealers around here have it, so it is extremely all other dealerships would kill to have. F&I manager, so immediately I had to get effective for us. Without one vital piece of the puzzle, though, salespeople. Finding people who have the you’ll never rise above mediocre. What’s potential to be great salespeople is almost My guys have gone from being “green peas” that key piece? Training. If you don’t have like finding a diamond in the rough. And it’s to understanding the importance of doing the a method by which your staff can follow, a not just putting the customer in the car and same thing every time without exception. We way of letting them know what to do when making the sale. They’ve got to be able to install in all our guys a “no fear” attitude. We any situation arises, you’re going to make all be sure that when a customer leaves, they’re offer a good product, and we stand behind the progress of a dog chasing it’s own tail. 100 percent satisfied, because customer what we sell; if we make a promise we’re satisfaction is tied to every aspect of our going to fulfill it. We don’t look at every deal Blaise Alexander Subaru of Williamsport, business; you’ve got to be able to get people like it’s a commission, but we’re entitled Pennsylvania knows full well the value of who can do that. to make a profit. We just looked at it this competent, consistent and complete training. morning – last month, our average grosses I recently spoke with General Manager Finally, I was able to hire a young sales are up about $900 a copy on the front end, Jay Kilheeney and General Sales Manager manager, Jeremy, and I went out and hired and about $320 a copy on the back end. Jeremy Baker about where they were, where five brand new guys — one guy was front they’re going, and what it takes to not only desk at a tire shop, one guy worked in a mall, FT: Jeremy, how did the sales force take to survive, but to thrive in challenging times. one guy was an insurance man. I hired one the idea of training? kid who worked in my clean-up shop who Jeremy Baker: At first, like anybody who Fran Taylor: Jay, describe your dealership’s had a work ethic like I’ve never seen, and I thinks they know too much, they threw a sales picture. felt that he had some potential – in my career little barrier up; however, once they actually Jay Kilheeney: Well, I took the store over I’ve had a couple of guys I’ve had that sense saw it in action and saw it work, and saw in March. At that time, the store was doing about, and this kid is one of them. I paid a lot how it affected their pockets, they’ve been anywhere from 25 to 30 deliveries per month of money for intense one-on-one training for really receptive and open to it. They do it — on a great month they were doing 35. We him for a week, and in 10 days he delivered 100 percent of the time, because they know did 91 last month, and we’ll do 100+ this 17 cars. it works. The first deal the trainer worked month. was a $4,400 gross that caught everyone’s FT: What are some of the areas this new attention. FT: That’s great! What’s making the sales crew focused on during training? difference? JK: There are a couple of things. Customer JK: The absolute most important thing for JK: Training. I knew from experience that it satisfaction is crucial today, and it’s any training or program that’s implemented was what this store needed. In 1997, a partner controlled from the desk. The smarter is that the managers are committed to make and I bought a dealership — Jay Kilheeny salespeople get, the fewer cars they sell. this work. If Jeremy didn’t buy in, I could Ford Lincoln Mercury. That store was in What I mean by that is that as soon as they write a check for a million dollars for training bankruptcy at the time, doing the same get away from the basics, their chances of and it wouldn’t work. numbers — 20, 25, 30 a month. We decided selling more cars seems to decrease. One we needed experienced training. In about of the things our training talked about was JB: You’ve also got to inspect what you 12 months, we took the store to averaging the basics –starting at the desk, making expect. You can tell someone to do it all day around 125 deliveries a month, and in about sure the salesperson did the demo drive, long, but you’ve got to make sure they’re 20 months, we were averaging 175+. I did the service walk, got the worksheet doing it. You put processes into place, but believe an outside trainer with experience information, did the walkaround, and so on, you’ve got to make sure it’s getting done. can definitely see things differently. Training every single time. As soon as we think our Our trainer helps us get this done every and everyone watching DVDs is the secret. salespeople have done it, that’s when they single month, and will be back. don’t. Training is so important – we train FT: What steps have you taken to put this every single morning for a half hour using Fran Taylor is the president and CEO of into motion at Blaise Alexander Subaru? this new program. We review the customers Taylor Techniques. He can be contacted at JK: Staffing was one of the first things we from the day before and we talk about the 866.848.9864, or by e-mail at had to look at. We’ve got a lot of long-term basics with a daily training schedule. A ftaylor@autosuccessonline.com. 2 8 www.autosuccessonline.com
- 16. marketingsolution MattBaker BUSTING STAFF EVENT MYTHS, PART 1 In the automotive event company’s best guys will be passing expensive than others, each offers unique industry, assumptions on your contract to less-experienced, less- features that appeal to different types of are everywhere. Over the years as the vice talented teams. In the long run, teams with consumers. Unfortunately, there is no “one president of an event marketing company, less talent, who work for less pay, end up type fits all” vehicle that will meet the I have had many dealers share with me a generating less profit for the dealer. needs of every buyer, just like there is no variety of things they believe to be true “one piece fits all” mailer that will drive about staffed events. “My staff will revolt if I bring in an optimal traffic to your dealership, time and event sales team” — In some cases, time again. While at first glance these assumptions this assumption might be correct. That is may seem to be true, a closer examination unless you hire an event company who “Results are the only thing that reveals many misconceptions that will often keeps both sales staffs working together matter” — No question, results are an lead dealers to make costly mistakes when it by establishing common goals. Look for important aspect to any sale. However it’s comes to event marketing. companies that focus as much on engaging essential to make sure results aren’t the your staff in the sales process as they do only thing your event company is after. For this month and the next, we will dig about driving results. Some event companies are so focused deep into the assumptions many dealers on making the numbers that they are have about staffed events. It’s an honest Be weary of sales teams who only focus on willing to compromise the reputation of look at some interesting “myths” that will their own sales staff. Staffed events were the dealership and it’s staff just to make a help you make a better-educated decision originally developed to be a long-term deal. Trying to reach an unattainable goal when considering promotional events. training and motivational program which by jeopardizing your reputation and the required cooperation between the dealership reputation of your dealership isn’t worth “All staffed event companies are the sales staff and event sales team in order to be the headache. same.” — Sure, a lot of event companies successful. Yet somewhere along the line the claim to offer increased gross profit, objective of creating long-term partnerships There’s more to making a staffed event deceased aged inventory and dealership was lost by many in the business, resulting successful than just the results. It starts with sales staff training. However, just because in a new breed of event sales teams who hiring people of good character, putting these companies share similar objectives, it strictly concentrate on helping their own them into a sales process that works and does not mean each company operates the sales staff make more money. making sure they understand how to get a same way. dealer’s staff on board. “Getting more direct mail pieces at a For example, consider what sets the cheaper price means I will see more While the assumptions above may have Detroit Lions apart from the New England traffic” — While direct mail companies struck a cord with some who read this, Patriots. Both teams are after the same would probably like you to believe this keep in mind they are only a small title and each is comprised of the same statement is true, it’s not. sampling of misconceptions that can number of coaches, managers and players lead to costly mistakes. From myths to help them achieve this goal. Yet despite Many will often try to sell you large surrounding advertising options to these similarities, one team consistently quantities of 11x17 mailers for a cheap general event effectiveness, next month’s outperforms the other. Why do you believe price, but few will guarantee how effective article will reveal more about common that is? the piece will be. Why? Because the cheap event assumptions to ensure you make price of the 11x17 mailer makes this promotional event decisions that will reap “The cheaper the event, the more money mail piece the most widely used form of the benefits your dealership deserves. I will make” — Decreasing commission advertising amongst dealerships; leaving percentages to increase your direct revenue little variety between one dealer’s ad piece seems to make sense, but over-negotiating and the next. Thus, consumers assume the the deal doesn’t always lead to additional same as before and don’t come in. profit. Staffed event sales teams operate Matt Baker is the vice president of sales much like any other commission-based sales The reason behind having different types for G&A Marketing. He can be contacted system. The better the sales people are, the of advertising in your ad plan is a lot like at 866.618.8248, or by e-mail at mbaker@autosuccessonline.com. more they expect to make. Negotiating to carrying different makes or models in significantly reduce commissions means the your inventory. While some may be more 3 0 www.autosuccessonline.com
- 17. marketingsolution MarkTewart SteveBrazill leadershipsolution BILLY MAYS VS. MICHAEL JACKSON GAME PLANS Michael Jackson and styles, both Michael Jackson and Billy you can use. The personality has a strong As you read this, because it’s beneficial for you — they cross competitive advantage? The future will make Billy Mays passed Mays stood out. Both Michael Jackson and supporting role in the marketing and selling football coaches across your property line because they anticipate it hash of even the best-laid plans, but planning away in the same week. The passing of Billy Billy Mays were shrewd marketers and without becoming the focal point. In other the land are preparing for a new season. will be beneficial for them. for the future is indispensable. Mays made the news but Michael Jackson salespeople. Both were personality driven, words, don’t be wacky just to be wacky. They must decide who will make the team Steve Brazill is the chair of automotive dominated it. The underlying message and neither Michael Jackson nor Billy Mays (a personnel plan), which skills must be The competitive balance of power in most marketing for Northwood University, sent from the media is that entertaining is were boring. I believe most business owners are mastered (a training plan), which plays are to markets has undergone a great deal of change Texas Campus. He can be contacted at good and somehow noble, but selling and somewhat ashamed of marketing and be added to the play book (an inventory plan) as sales volumes have declined. Are you 866.861.1515, or by e-mail at marketing is bad. My question for you is Many businesses spend tons of money on selling. The marketing of these businesses and which deployments of offensive and positioned to turn the changes ahead into sbrazill@autosuccessonline.com. the following: Do you allow this flawed boring marketing. Often the excuse given tries to show they are anything but defensive assets will win games (a strategic thinking to keep you from being successful is “You have to have your name out there” marketers and sellers. The problem is that plan). When the season begins, reality will render much of their plans useless, but no in your sales and marketing? or “I am building a brand.” Unless you are this tactic doesn’t work. General Motors serious coach would instruct his players to Pepsi or Anheiser Busch, you don’t have Saturn brand didn’t approve of using the simply show up for games and hope to win. The news coverage of Michael Jackson’s enough money to build a brand. Spending word “sale” as if it were somehow dirty. life was largely reverential and fit for money to keep your name out there is an Maybe that’s why Saturn didn’t sell much. Planning in a business enterprise differs king, while the coverage of Billy May’s excuse to not have a plan. from planning in many other organizations life always seemed to mention the loud Michael Jackson and Billy Mays were both because it must occur on two levels. pitchman with a carnival barker quality. People make fun of personality-driven smart marketers. Michael Jackson was Our society tends to revere athletes and or wacky themed advertising, but if you loved for it and Billy Mays was laughed at. Survival entertainers, but scorns marketers and measure the results of these businesses, My own theory is that Billy Mays didn’t Government planners generally get to salespeople. This subliminal message they are usually the best performers in care. His bank cashed his checks the same ignore this one, but you probably aren’t that bombards the brains of business people who their area. Personality-themed marketing as Michael Jackson’s. Billy Mays rose bulletproof. Get this one wrong and most begin to believe it. and advertising utilizes the personality to from boardwalk vendor to being a rich and other business challenges become moot. drive home the message and the call to famous pitchman. Billy Mays laughed all Too often, business owners and leaders let action. Those businesses don’t let false the way to the bank using personality-driven Competitive Advantage their egos and perceptions of image get in ego and image get in the way of effective marketing. The scramble to create sustainable advantage the way of successful marketing and sales. marketing. over competitors is central to most Movies, TV and news often shape our To receive a free special report, “The Ten organizations. Even government agencies thoughts. The problem with allowing your You should care less about what you think Deadly Sins of Marketing and Sales,” compete for power and resources. What are actions to be guided by these mediums is customers will think and more about what e-mail me at the address below. you doing to improve your position relative they often create false assumptions. they will actually do. The surest way to to your competitors? create a brand image is by selling tons Mark Tewart is the president of Tewart Enterprises. He can be contacted at Here are some thought starters: The first sin of marketing is to be boring. of products through personality-driven 866.429.6844, or by e-mail at Do you have the right people? Reassess In today’s marketplace it is harder to get marketing and sales that creates a quasi- everyone in your organization and ask mtewart@autosuccessonline.com. noticed than ever before. You must stand celebrity out of you, your family, your staff, yourself this question: “Knowing what I now out. In different fields and with different your pets, your characters and anything else know about that person, would I hire him/her again today?” If you cannot answer with an unqualified “yes,” you have a problem that requires immediate attention. If correction with training or management guidance is not possible, replacement might be the appropriate alternative. Are your people appropriately trained? When business gets slow, training budgets get axed. Is training expensive? Yes. Are missed opportunities expensive? Yes. Your choice. Is your inventory everything it should be? Having the right pieces in inventory is just as important as having the right number of pieces. When you have the products your customers need or want, sales go up and price resistance goes down. Do you continually give prospective customers a reason to shop your store? In the heat of battle, it can be difficult to remember 3 that customers don’t come to your store 3 2 3 WWW.AUTOSUCCESSONLINE.COM the #1 sales-improvement magazine for the automotive professional
- 18. leadershipsolution TomHopkins THINK WHAT YOU’RE THINKING ABOUT Rarely do people So, if you want your future to be different your own time. Chances are some of choose the details of from the present, don’t sweat over large them won’t seem all that important by their futures. They choose their daily habits goals and planning — at least not today. the time you get around to doing it, but and those daily habits dictate their futures. Today, pay attention to your habits. Pick one for those that are, you haven’t lost the Re-read those first two sentences several that could be holding you back or slowing information and you haven’t interrupted times. Then, think about your daily habits. down the progress you’d like to make your train of thought at work. How are they dictating your life? toward improving your life. Determine • Are you often rushing in the morning what you could do differently. Stick with • When it comes to lunch time, the best because you oversleep? something simple and give it a try for a thing you can do for your body and your • Is it a part of your routine to search for few days. If it seems to be helping, make mind is to move around (if you have your mobile phone or keys every time a conscious effort for about three weeks to a desk job) and to eat light. This will you leave the house? make it a daily habit. Once it’s a positive give you the right kind of energy for a • Do you travel through rush hour traffic habit, and you’re reaping the rewards of a productive afternoon. every day with a sour attitude? more relaxed start to your day or whatever • While at work, are you daydreaming habit you choose, you can forget about it • Think about giving up your watch for about what you’d rather be doing? and move on to something else. a week. Even if you’re still a clock- • Do you grab just anything for lunch? watcher, you’ll have to seek out the • Do you catch yourself watching the As with much of life and business, it truly clock somewhere besides your wrist. clock the last five to 20 minutes of your is the little things that make the difference. Even a small change like that alters work day? Here are some other ideas to counter the the habits you have embedded in your • How do you spend your evenings? typical daily stressors of adult working life: mind. • How well do you sleep? • If you must travel during rush hour, stop stressing over it. Accept that it • Regarding your evenings, do you spend Those basic aspects are part of everyone’s will be what it is. Then, find something them thinking about or rehashing your day. It’s easy to fall into habits that may you can do with your mind during workday? Knock it off. To be truly not be good for us with regard to them. that time. Fellow sales trainer and successful, you need balanced habits. Why is that? Because we don’t give much motivator Zig Ziglar suggests you turn There’s a saying, “All work and no play conscious thought to them. This is so typical your car into a classroom by listening makes Johnny a dull boy.” Liven up of nearly everyone on the planet. We get to educational programs while driving. your life even if it means taking a walk up. We follow the same routine for getting This is an excellent suggestion. instead of sitting in front of the TV. Go out the door in the morning. We drive the You can work on learning a second out to a store close by that you don’t same roads to get there. We work. We watch language that will expand the base of usually go to and just see what they the time. We drive the same roads home in clients you can serve. You can work on have. Visit your local library or attend the evening and spend our evenings pretty your selling skills, weigh other time their free functions. You’re likely to much the same way. management ideas, or at the very least, have a triple win when you change your listen to uplifting music or inspirational habits. You’ll meet new people. You’ll Think about just one aspect of your typical programs to help keep you on an even feel better about yourself. And, your day that you would change if you could. emotional keel. future will be brighter. Would you like a smoother start to your day? Could you have it if you woke up just • If you catch yourself daydreaming or 10 to 15 minutes earlier? Could something getting sidetracked surfing the net or as simple as having a key hook or basket to scanning magazines while at work, hold your keys and your phone put an end stop. The most productive thing you World-renowned master sales trainer Tom to a daily search for those items once you can do at work is to work. If these other Hopkins is the chairman of Tom Hopkins developed the habit of using it? things are of interest to you, jot them International. He can be contacted at down in a small notebook or enter them 866.347.6148, or by e-mail at This may sound super-simplified, but the into your cell phone with an alarm to thopkins@autosuccessonline.com. first two sentences of this article are true. remind you to look into them later — on 3 4 www.autosuccessonline.com