BenchMarker Issue 2/2012 Australian Version

Benchmarker
Sharing best practice strategies AUSTRALIA Issue 2 / 2012
with global motor dealers

The use by the retail motor business of the Internet and its social media has grown exponentially, especially in the last few
years. It has convincingly joined the marketing armoury as one of the favoured ways to attract business to the dealership.
And more: with Facebook, Twitter and LinkedIn (and many others) you can find people, intrigue them, interact with them
and convert them to become, first, customers and afterwards even friends and followers. Then they can start telling their
friends about you and the good things you do in your business… and the numbers proliferate, massively.
Our PROBE feature in this issue looks at some trends in the use of social media, as well as some basic do’s and don’ts’.
BENCHMARKER IS GLOBAL
A SPREAD OF ESSENTIAL READING BenchMarker has a global footprint. Each
quarterly issue appears in six different editions
addressing motor dealers and manufacturers
in the countries where Sewells Group operates.

Multi-sided acceleration! There are digital editions of issue 2/2012 for
electronic distribution to dealers and OEMs in
Australia/New Zealand, Thailand, Indonesia,
India and China and there is a printed edition
There has been a transformation in the structure
of the interface between suppliers of vehicles for distribution in South Africa - all the
and automotive services and their customers. countries where the Sewells Group has presently
Communications between the two have established its operational bases.
accelerated dramatically and become multi- Each of these different editions has a core of
sided, not one way. To use a trite pun – it’s all features and articles which are common across
gone broadband! This leads to some exciting the issue and some pages which are localised
dynamics and almost infinite opportunities for to suit the different areas of distribution. All
sellers and buyers alike. editions remain focused on BenchMarker’s
Which is exactly why we use this issue of singular credo of sharing best practice strategies
BenchMarker to look into some of the trends with motor dealers wherever they are.
and directions being taken (by both motoring
consumers and their suppliers) on their websites
and other utilisation of the Internet. There is
already a rapidly growing core of best practice
C O N T E N T S
strategies for the likes of Facebook, LinkedIn Key industry indicators………………………2
and Twitter, and most of these have led to the
re-writing of some of the rulebooks on the uses SA Businessman of the Year……………… 3
of email, call centres and sms.
The domino effect of each on the other is BenchMarker Probe…………………… 4 –10
evident and the marketing spectrum is changing Record sales from ‘virtual dealership’… 4
at all ends and in the middle as a result: David Lowrie, MD Sewells Group Australia/NZ.
n ome manufacturers have re-shaped the
S Loyalty, advocacy and influence…………5
way they launch new models, searching for a re-looking their communications and facilities
blend of the conventional and the new. to maximise exciting new relationships Online reputation management………… 6
n ome have bravely chosen to ignore tradition
S with their computer- and mobile-literate
consumers.
Five Shocking Mistakes………………………7
and embarked on re-branding initiatives
almost exclusively on Facebook – where they It’s a vast subject and continually changing Car sales person is still key…………………8
have earned up to 200 million ‘friends’ and so our coverage in this issue is by no means
‘fans’ in just weeks of exposure. complete. How exciting to know there is more All a-tweet about Twitter?…………………9
n utomotive retail businesses everywhere are
A to come!
One way dialogues………………………… 10
Global Managing Editor - Dennis Anderson (danderson@sewellsgroup.com)
Edition Managing Editors: Guarantee your sales in 2014… ……… 11
Australia – David Lowrie (dlowrie@sewellsgroup.com)
China – Chee Tuck Yap (cheetuck@sewellsgroup.com) Personalise your sales technicians…… 12
India – Jayesh Jagasia (jjagasia@sewellsgroup.com)
Thailand – Supakorn Sookpunya (ssookpunya@sewellsgroup.com) Stop listening to excuses
Indonesia – Roselle Panastico (rpantastico@sewellsgroup.com)
South Africa – Tania Barlow (tbarlow@sewellsgroup.com) - Paddy O’Brien……………………………… 12
Edited by Robin Emslie (twolakes@iafrica.com)

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B enchmarker B enchmarker
Key industry indicators Key Industry Benchmarks
The winners’ group
This specially compiled table of key indicators area of your business. To help you towards achieving
published here are guidelines to franchised motor this we have provided a column to record your own
dealers of performance in the listed countries. These performance numbers. You will then be able to create
have been assembled by the Sewells Group operations a collective discussion with your management team
in each of the countries and represent current ‘Best around why your performance should be better than
Practice’ norms in each of these countries. Each line the given indicator, and delve into the factors which
item is an independent key indicator. Sewells believes might be restricting your business from achieving
in measurement as a critical business management these levels of performance. Finally when conclusions
practice – if you measure your performance and are reached, the key points of these discussions can
can compare it to an industry indicator you are in then be converted into actions for the management Dennis Anderson
a position to evaluate and potentially improve that team with clearly defined targets to be achieved. danderson@sewellsgroup.com

SEWELLS GROUP KEY INDICATORS – May 2012

New South Your
Australia China India Indonesia Phillipines Thailand
Zealand Africa Figures

Dealership Overall
Total Dealership Gross
Profit % of Sales 15.4% 15.9% 9.5% 9.1% 15.5% 10.5% 13.7% 8.1%
Total Expenses % of TDGP 78.4% 82.7% 79.8% 68.9% 74.6% 74.2% 81.9% 52.0%
PBT % of Sales 2.4% 2.5% 1.9% 2.9% 3.5% 2.8% 2.5% 3.5%
Asset Activity 7.2 4.4 4.9 6.4 7.5 4.5 4.7 7.2
Return on Average 19.7% 10.9% 7.5% 17.4% 21.1% 13.2% 5.9% 20.7%
Operational Assets
New Vehicle Department
Total New Gross Profit
% of Sales 8.6% 8.4% 5.6% 4.8% 8.8% 8.6% 7.7% 5.8%
PBT % of Sales 0.7% 0.3% 0.3% 1.3% 1.0% 1.1% 0.9% 2.9%
Total Expenses% of TNGP 89.8% 91.0% 95.0% 72.9% 86.4% 88.0% 91.3% 63.0%
This winners’ group at the Sewells Businessman of the Year banquet included (from left) John Templeton, Head Business Consulting of Sewells; Derik Scorer,
Inventory Days Supply 48 55 52 24 28 45 41 52
Chairman of NADA; Brian Riley, MD of WesBank; Jaen van Aardt, of Datnis Nissan King William’s Town (Most Improved PG dealer); Tania Barlow, MD of Sewells
Used Vehicle Department Group SA; Johan Coetzee, Land Rover East Rand (winner large dealer category); and Schalk Fourie, NTT Toyota Mokopane (winner medium dealer category). Winner
Total Used Gross Profit % TUVS 9.0% 7.8% 8.7% of the small dealer category was Bertus van Vuuren, New Vaal Motors Bethlehem, who could not attend the banquet.
PBT % of TUVS 1.0% 0.6% 0.5%

SA Businessman of the Year
Total Expenses% of TUGP 85.0% 87.4% 90.7%
Inventory Days Supply 52 44 31

Parts Department
28.7% 29.8% 30.4% 17.3% 29.1% 21.0% 30.2% 20.5%
Total Parts Gross Profit % of TPS The Businessman of the Year is a now utilises a stratified selection procedure and the remaining dealers make up the small
12.3% 10.9% 13.5% 9.9% 11.1% 9.8% 15.6% 11.5% measurement of excellence in performance to nominate the Sewells Businessman of the category.
PBT % of TPS
65.0% 86.3% 84.9% 36.1% 59.4% 47.0% 49.0% 46.0% using the key industry benchmarks produced Year contenders from each of three different The balanced scorecard measures all
Total Expenses% of TPGP
41 55 48 21 63 64 73 by Sewells Group South Africa. categories (large, medium and small). This is contributing dealers’ performances against
Parts Inventory days 35
Most franchised dealers in South Africa to give equal and fair opportunity to dealers the Sewells Group industry benchmarks
Service Department participate in the benchmarking process. of all sizes. to determine the top 10 dealers in each
78.5% 71.7% 81.5% 88.7% 84.0% 80.5% 82.0% 69.3% Dealership financials and a large range The categorisation is determined by taking category. Each of those 30 dealers receives
Total Labour Gross Profit % of TLS
70.3% 59.7% 81.3% 85.3% 75.8% 71.0% 59.0% 64.2% of key statistics are uploaded using the the total turnover for all qualifying dealers a special certificate giving recognition to
Total Service G.P. as a % of TSS Sewells Online System (eSOS) which then (those who have subscribed and reported their ‘Best Practice Performance’ for the
11.7% 14.1% 20.3% 28.6% 16.3% 12.9% 11.5% 6.8%
PBT % of TSS allows dealers to immediately view their consistently for 12 months) and dividing year. The top five of each group then became
80.0% 77.0% 71.1% 66.1% 78.5% 71.8% 76.0% 88.3%
Total Expenses% of TSGP own individual results. Sewells can then the result by three. These dealers are then the finalists attending the banquet – where
view collective industry benchmarks which ranked by turnover. The progressive addition the leading performer in each becomes the
Body Shop Department
are determined by sequencing the values of dealers’ turnover in the ranked sequence, Sewells Businessman of the Year for 2011.
Total Labour Gross Profit % of TBS 79.6% 76.1% generated for the key performance indicators commencing with the largest, until the total The actual turnover levels of the three
Total Service G.P. as a % of TBS 79.5% 74.4% (KPI) and then picking the result at the 70th equalled the first one third strata, represents categories for the 2011 evaluation was: Large
PBT % of TBS 33.3% 37.6% percentile for revenue items and 30th for the large dealers. The progressive summing dealers – over R180m; medium dealers –
9.7% 8.3% expense items. of dealers after this point, until the second R180 to R114m; and small dealers – R113m
Total Expenses% of TBGP
Introduced last year for the first time, Sewells one third strata, represents medium dealers to R41m.

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Benchmarker

PROBE
TEAM HUTHCINSON FORD CHRISTCHURCH NZ ‘RISE OF LOYALTY, ADVOCACY AND INFLUENCE’

Record sales from ‘virtual dealership’ Changing of buying habits
With the enormous potential and exponentially
growing capacity of the Internet, can one
successfully operate a retail automotive sales
operation without the traditional facility of a
bricks-and-mortar dealership?
The answer is a firm ‘yes!’ from John
Hutchinson and his intrepid team. Suddenly
forced into that situation by a calamitous
natural disaster, this hardy and innovative
group has not only been running a ‘virtual
dealership’ for more than a year, but have been
exceeding monthly sales targets set in normal
times from the start; and are still selling well- Second: Dealers and manufacturers need
ahead of the New Zealand national average. to use social media to help buyers become
Here are the facts: loyalists. Any chance of establishing loyalty
n eam Hutchinson Ford (THF) is the Ford
T starts with a positive, transparent buying
The intrepid Team Hutchinson Ford management team is (from left to right): Seth Ovens, new and
dealer in central Christchurch, New Zealand. experience that fosters trust. Once consumers
used car manager; Dale Powers, paint panel shop manager; Greg Barnard, service manager; Rebecca
n he central city was severely damaged by the
T feel a sense of trust, they are more likely to
Pratt, administration manager; Paul Leary, parts manager; and John Hutchinson, dealer principal.
devastating earthquake of February 22, 2011, bond and feel a sense of loyalty. Loyalty then
and remains a closed ‘red zone’ today. leads to advocating for a brand or dealership,
Hutchinson, builders were still on site. and entered a vertical learning curve.’
n HF facilities were badly damaged in the
T thus influencing others who are in the market
He told us: ‘After the first four months, by He listed some of the strategies implemented
quake. for a new vehicle, while minimizing brand and
mid-2011, we arranged for a Portacom to and actions taken after 22.02.2011:
n ajor impacts on the dealership operations
M dealership defection.
be dropped in by crane and we used that n everaged our existing web site,
L
included: as our office.’ with extended profile description, n n short, we believe social media is the
I
- Facility closed completely for four months
Was everyone looking forward to moving back increased functionality for stock display, tool manufacturers and dealers should
due to demolition work and cordons into a conventional dealership building when off site appointments, comprehensive use to create and maintain a loyal base of
- Small temporary workshop established the work is finally done? product information, marketing customers.
- Sales consultants worked from home ‘I don’t know, really. We’ve ordered a bigger programmes etc. Our web site had Third: For dealerships and manufacturers in
- Dealership is now ‘open’, but with very and better Portacom and are thinking of just to become our ‘virtual dealership’ a world with social media, the new critical
restricted facilities sitting tight in that for a couple of years!’ (www.teamhutchinsonford.com) moment is the moment after the purchase,
THF is adjacent to the still active red zone Had THF been well up and ahead on the social n ales consultants went onto smart phones,
S when consumers are ‘bonding with’ their new
cordon in mid-Christchurch. There is limited media and using the full potentials of modern mobile web capability and the rest. vehicle and highly likely to tout their purchase
public access, no major passing traffic and communications before last February? n aximised the use of the existing and now
M experience or their new vehicle on social media
Dimitri Kotov, WorldMark Social Media
no display visibility. It remains a challenging ‘Before this all hit us, we had just started extensive customer data base. Manager supporting Sewells Group based in channels.
situation. feeling our way on the Internet without any n xtensive and coordinated use of sms and
E Melbourne, Australia, says a recent collective n ealers and manufacturers need to foster
D
Sixteen months after the original disaster when fixed objectives or real motivation. The new Facebook for two way communication with study is significant in giving direction to OEMs relationships with customers that make
and retail automotive businesses. them more likely to want to engage and
BenchMarker spoke with dealer principal John circumstances changed that – we got to work customers and prospects, driving business ‘Its full title is ‘The Rise of Loyalty, Advocacy
to our website and directly to our sales and Influence – Social Media and the New advocate for the brand and dealership after
people. Automotive Purchase Cycle’ and it strongly they drive their new car off the lot.
n sed other web portals and platforms
U indicates the important changes which have Finally: Manufacturers and dealers need
such as NZ’s eBay equivalent TradeMe, already taken place in buying habits,
and the direction and influence these will to deliver a consistent online and offline
YouTube etc. have going forward.’ experience. Consumers want information
The outcomes have been quite dramatic: that is of value to them in exchange for their
n HF has achieved or exceeded its Ford
T n o matter what purchase model is used to
N engagement and loyalty via social media. The
sales objective every month since guide the marketing mix, social media needs most valuable information saves them money:
February 2011. The rise of Loyalty, Advocacy Influence: exclusive offers and savings, information on
to be an integral part of it.
n xceeded national average market share for
E Social Media and the New Automotive lowering cost of ownership, etc.
2011 (14% vs 11%). Purchase Cycle,by Dealer.com, DriverSide n ealers should offer these opportunities
D
n rofits over 3.5% ROS for 2011 (note NZ
P and GfK Automotive Research. in exchange for the customers’ support and
is one of the world’s most competitive follow through by providing an excellent in-
markets, with no import controls on new dealership experience every time they come
and used vehicles). into the store.
n ust announced as Presidents Award winner
J The study can best be summarised as follows: Extract from the study:
for customer satisfaction for metro dealer ‘In the not-too-distant future, dealers and
group, 2011 (fifth consecutive year). manufacturers will track the influence and
Team Hutchinson Ford which is now corporate First: Dealerships and manufacturers need
advocacy that brought a new customer
owned has a three generation family heritage. to recognise that the purchase process for
into the showroom and will reward their
The original business was founded 80 years consumers now includes social media. It’s a
salespeople accordingly for fostering a new
ago by John Hutchinson’s grandfather. new force that is expected to get stronger.
‘friend’ or follower…’


CRITICAL ACTION: IT’S GOOD TO BE ON LINKEDIN BUT…

Online reputation management Don’t make these FIVE SHOCKING MISTAKES
Today, more than ever, it is critical for Literally millions of professionals worldwide are now using LinkedIn to
dealers to incorporate an online reputation stay in touch, improve their visibility and professional image, and help
management strategy into their marketing potential clients find them and their products and services. The number
plans to: of people on LinkedIn is growing exponentially – at present there are
Profile about 9.1 million professionals LinkedIn in India, 2.1 million in Australia,
+ 2 million in China, 1.1 million in South Africa and around 200 000 in
Track Thailand.
+ Be there, but don’t get it wrong – the damage done can be painful, says
Influence Dimitri Kotov, social media manager at Sewells Group. ‘LinkedIn can
Search Engine Optimisation (SEO) is the work wonderfully well if you just make it happen. Be active, and be in
mechanism used to bring customers to your touch with the right people by avoiding these “5 Shocking Mistakes”’:
own website more often than to the sites of
your competitors. However, SEO as dealers
used to know it, has changed.
Now, customers have even more opportunities n on’t keep your network small and exclusive: Find people you
D
to end up somewhere other than your website. know; link in to their networks and be active.
BUT - by generating fresh content and driving
interaction on your website, a dealership can,
with a commitment of time and resources,
again generate better SEO results in the latest
environment.
But of course, the changes continue. Social
media posts, likes, fans, followers and +1’s all
continue to influence organic search results.
A large number of likes on a dealer’s Facebook important role in the purchase process. As A full circle reputation management
page have been known to carry more SEO consumers spend more time on portals, search programme must include the three critical
weight than other highly-linked and well- engines and social networks, and less time on steps:
established sites. So it’s more important than individual websites, dealerships must make Profile take control of online profiles
ever before for dealers to engage in the social themselves more visible and accessible on +
web. these sites. Track track customer-generated content
Go to your customers… Up-to-date *studies have shown: n on’t be a wallflower: You can’t just wait on the sidelines for
D
+ something to happen. Go onto the site frequently and look for
In order to stay ahead in the changing digital 78% always research a car before purchasing
Influence develop brand advocates and groups that interest you (look under ‘Group directory’). Ask questions
landscape, dealers must learn to become 58% read online reviews n Don’t stay away from other platforms: Add your LinkedIn URL to

influence the discussion and answer questions, so that you make yourself known out there.
more involved in the social web, interact with 66% compare prices online your email signature and link your Twitter account to your profile.
customers where they are, and develop a solid Are you missing out?: ‘If no-one is Make it easy for people to find you, and find out about your company
38% get recommendations from family and
reputation management strategy as part of a and what you have to offer.
friends talking about you on Facebook (and/
full-circle customer loyalty programme.
* US online panel study conducted in March 2011 or Twitter/LinkedIn) you are missing
It is clear that the opinion of others plays an
out on a goldmine of untapped sales
opportunities.’ That is the perpetual
understanding which every motor
dealer should have top-of-mind, says
Dimitri Kotov, social media manager
of Sewells Group. Shown here is an
example of the type of package which is
available to dealers to facilitate this vital
process – and get people to start talking
about you online. Ease of initiation and
interactivity are keys to this offering:
setting up and optimising your Facebook
profile and ensuring you are equipped to
start building your brand online can n on’t be boring: Put up a picture of yourself; add the Sewell’s
D
maximise your social media opportunity logo to your page; add interesting information. Remember, people n Don’t forget to use your LinkedIn profile regularly: It’s no good

frequently Google you before calling so it is very likely that the first having it, then ignoring it. Check your inbox regularly for updates
with a well-formulated strategy and
thing they will see about you is what you have on your LinkedIn page. and invitations – though of course you do not have to accept every
clearly defined plan for building your invitation. But keep it alive, and keep sending messages to other
And keep your information up to date – there is nothing as boring as
brand. people, answering questions. Be dynamic.
old, out of date info.


NADA WARNS DEALERS TO REMEMBER: WHY EVERYONE SHOULD BE:

‘The car sales person is still key…’ All a-tweet about Twitter?
Twitter is part of the evolutionary process
Don’t let the hype about the Internet and its will soon replace traditional dealerships; be a mistake to believe that social media will
in communication from the days of private
obvious appeal to young people cloud your Maritz found that the store salesperson most usurp it.
communications via letters, phone calls
hard-earned experience of the retail motor influences purchases,’ said NADA. ‘What our family and friends say or and even emails, to the days of public
business. The NVCS asked customers what sources of recommend to us is important. Every communications via social networks, with
That seems to be the message of two newly information they found most influential in manufacturer needs to have a well-defined everybody. Twitter is at the forefront of
released reports in the United States: their buying decisions. The top 10 sources in social media strategy. However, we still need communication online.
n he Maritz Research New Vehicle Customer
T the U.S. were as follows: to remember the importance of human
Study (NVCS) - claimed to be the largest 1. Salesperson at the dealership (21.9%) interaction in buying a car.’
automotive study in North America - found 2. Family/friend/word of mouth (18.7%) Quite separately the latest Foresight Report
that the car sales person most influences 3. Consumer guides (18.4%) released in May showed older buyers in the
actual purchases. 4. Dealer or manufacturer websites (8.6%) US are leading the way in the motor industry
n he latest Foresight Research 2012
T 5. Third-party websites (6.4%) recovery, with the dealership experience
Dealership Experience Strategy Report 6. Automotive magazine reviews (6.1%) remaining the key factor in purchasing
shows the upward new vehicle market trend 7. TV advertisements (4.0%) vehicles.
is being fueled by older buyers, not the 8. Dealer or manufacturer brochures (3.2%) It recorded a need for dealerships to: ‘…
youngsters. 9. ealer- or manufacturer-sponsored event
D refocus marketing to more seasoned buyers,
A news item just circulated to members of (2.4%) who more often choose a dealership based
We’re already there.
NADA US says the Maritz report showed sales 10. Newspaper advertisements (1.7%) on inventory and selection, no price haggling,
people to be ranked higher in influence in 2011 A Maritz Research spokesman said: ‘People financing availability, quick quote responses
than in the past five years. buy from people. Social media can certainly and the dealer website.’ Companies that don’t evolve and join in with
the way their customers are communicating
‘Contrary to a potential belief social media support the selling effort, but I believe it would What the heck is a Tweet?
with each other (and don’t start tweeting on
Twitter) will eventually become extinct.
But – just what the heck is a Tweet? about you. When people reply or mention your want to then browse their suggestions of ‘Who
name in responding tweets they are spreading to follow’ as well.
IT Still is a major instrument in boosting your business: A simple answer: a Tweet is an online update
you send to your followers. It is short and your name by digital word of mouth. Your own tweets will go out on your time line.
sweet (not more than 140 characters in length) Who is on Twitter? The answer is just about This is really the list of messages (tweets) that
and quite similar in that way to a cell-phone have come in to you – when you open your

Email remains alive and well – and effective ‘sms’. It is a real time information network that
can reach lots and lots of people easily and
Twitter homepage, the timeline is the first
thing you will see. You can interact with these
quickly. messages by hovering your mouse over any one
Companies use it to deliver information to to reply or ‘retweet’.
In spite of the buzz and the exponential The question then is can email make you mail, in a short concise way. Never use caps existing and potential customers. They send out Remember, if you do retweet, that message
attention being drawn by Twitter, FaceBook, money? and avoid exclamation marks as they set off a tweet which goes to each of their followers, is instantly shared with all your followers. If
LinkedIn and the rest, don’t underestimate the A number of studies suggest that email drives spam filters. and in turn it can be seen by any of their instead you simply reply it will appear only in
solid ongoing power and justified popularity more return on investment (ROI) than any And speaking of spam certain words should be followers, so the reach is potentially enormous. the @mentions tab of the person to whom you
of email. According to modern research in the other marketing route, with a high number of avoided. The 10 words and phrases most likely People use Twitter to follow the tweets of have replied.
United States and elsewhere, the medium is far respondents describing email ROI as good or to alert filters are: companies, celebrities, business people and And remember, it is a communication tool, so
from dead, and if you leave it out of your good excellent. n eet singles; Work from home; Business
M friends, so they can stay up to date with what’s Whats a timeline? post your own tweets, often and succinctly
and modern marketing strategy you might be But there is a catch: your emails need to meet opportunity; Buy direct; Clearance; Pre- happening and make new connections. (140 characters). Type messages in the ‘What’s
doing yourself real damage. several criteria. Approved; Hello; You have been selected; The objective is to have lots of people and everybody: industry influencers, industry happening’ box at the top of the screen, then
The email is regarded by many as being past n hey need to be mobile-device compatible.
T colleagues and most importantly, customers. click the tweet button – you will immediately
Weight loss; and Limited time.
But what is it that makes Twitter so great? It see your tweet in the timeline on your
its ‘sell-by’ date. It is a surprising 41-years old, More than half of emails will be viewed on What you always need in an email selling
is an awesome platform for informing your homepage – and so will all your followers.
the first email being sent in 1971. mobile devices by the end of 2012. strategy is a clear Call to Action (CTA). For
colleagues and customers about company It’s actually simple. Think about it – then open
But it is also enduring: a study completed in n oth your website and emails must be
B example it was found that the click through
news and getting instant feedback. It is a a Twitter account and get tweeting.
April 2012 showed that 77% of respondents optimised for mobile device viewing, rate increased by 75% when the CTA ‘Follow
way of building a relationship with your
favoured email as a means for receiving which means image and text sizes must be me on Twitter’ was changed to ‘You should present customers and of finding new ones.
permission-based promotional messages. The compatible with mobile devices. follow me on Twitter here’ and in another And it is a great way of delivering excellent
other channels such as Facebook and SMS n he subject and sender’s email address must
T example when the CTA was changed from ‘Visit customer service. Remember, public forms of
were below 10%, and as email preference be recognisable, or most viewers will reject our Theme Shop’ to ‘See Options and Pricing’ communication are becoming the norm.
has grown so preference for direct mail them as spam. there was a 200% improvement. How to start
promotions has dropped to 9%. Interestingly, Most people only open emails from senders The bottom line is that to pull the plug on Who is on twitter? Creating your own Twitter profile is a simple –
young people also showed a preference for they recognise. After sender recognition they email as part of your primary marketing and essential - process. You open an account
email marketing messages, saying social look at the subject line to decide whether to initiatives would an ROI disaster. But companies ‘follow’ you, so that it becomes a on the Twitter home page, and then follow the
networks are for communicating with friends read it or not. This means your email address remember: form of free marketing because when someone steps to find people to follow. Type their names
and family. It is not necessarily where they must be visible and trustworthy and the n end the right message to the right person
S follows you, the people and companies into the search box at the top of the Twitter
want to be hit with marketing messages. subject line must sum up the content of the at the right time. following them are also quite likely to find out home page, and check the results. You might Let’s twitter!


TRENDS, NEWS FROM UK
One way dialogues no longer effective
A striking example of the power to attract
Guarantee your sales in 2014
large audiences and engage many of those
in ‘a conversation’ with the brand was Simple steps you take today can bring you n hat did their neighbours, friends and
W Roger ends with some hard-truth
demonstrated in a project between Hyundai sales in two or three year’s time, says Roger family think of their new purchase? conclusions:
Motor Company and Facebook last year. Whalley, a UK dealer principal of more than n Is everything as they expected it to be? ‘If all of this seems like hard work to your
A video-clip describing the campaign and 20 years experience. Some sales executives will think these are sales execs, they are probably in the wrong
giving details of its impact has since been ‘There are activities your sales staff needs to dangerous questions. What if something job, because it’s exactly what they should be
flighted (on Facebook, naturally) and spreads do now to make sure this year’s customers actually is wrong with the car? Well, doing every day.
some interesting messages. come back,’ says Roger, writing in Auto Retail Step Two –
Manager in Britain. Call your customer about two weeks after ‘…the owner will
‘… need to have The majority of your customers, he says, will
react favourably to being wanted.
delivery and ask the same sort of questions.
Tell them you plan to call them at regular
intervals to see how the enjoyment continues.
forgive and appreciate
conversation with ‘… buyers only feel Also – these are opportunities to get referrals
– ask if any of their friends or neighbours
could be interested in changing their car.
the sales person who
our users…’ wanted when you Step Three –
Call again about two months after delivery.
Continue asking the same questions and
seeking referrals. Remind them that if stays in touch…’
Here are some extracts from the clip, including
direct quotes from senior marketing and
want to do a deal…’ anything ever does go wrong you want to be

creative executives of both Hyundai and
During the Veloster launch the new thinking
included inviting fan-generated content: ‘… relationship the first to know.
‘The really good ones all have their own list
Facebook:
n Among various touchpoints, Facebook is
‘
n We got back 100s of videos from 37
‘
countries all over the world which
‘But many car buyers say they never hear
from their sales person again or, if they do,
‘…especially if you can of customers they can sell to in the future
– customers who should always be the first
becoming more and more important in
terms of advertising.’
generated over 250 000 (Facebook) pages.’ can become more it is just to try and sell them another vehicle. to know about the special deals, the new
Spokesmen recorded witnessing the
hint about suitable
And that is the problem, buyers only feel products, and even the recalls. Remember:
n Need to get out of conventional one-way
‘ combination of good advertisements in the wanted when you want to do a deal. even if a car is troublesome, the owner will
communication as an auto maker and have
a conversation with our users. One way
right place, and good content producing a
remarkable increase in the number of
trustworthy, more ‘For instance, if you rang the customers who
bought a car from you in, say, June 2010,
forgive and appreciate the sales person who
stays in touch.
dialogues are no longer effective.’
A decision was taken to give top priority to a
Facebook fans.
n From March 2011 till August the Hyundai
‘
how many do you think would remember the rewards for successful ‘What they won’t forgive or forget is when
Facebook partnership as a core for Hyundai’s
re-branding exercise centred round the slogan:
Facebook initiative had generated more than credible…’ person they bought it from? Some? All?
‘The likely answer is, not many!’
they are not kept up to date or given the best
advice through their ownership experience.’
The project was extended into specific model
1.6m fans and counting “friends of fans”
more than 200 million.’ is more important, which is less; which is more
However, there is a way you can pretty
much guarantee the chance of a sale in June
referrals…’
launches, including the Hyundai Elantra, trustworthy, or which is false.
n The effectiveness of sending messages to
‘ 2014; although it does require some work,
Accent and Veloster models. ‘If you can use Facebook we can share, we can
our customers was very successful.’ organisational ability and commitment. Step Four –
A Hyundai marketing executive draws a exchange information with our friends - then
Starting on the day you deliver the car Call at least twice a year to continue building
‘New thinking. conclusion:
‘I think that the fan page is (now) the
the relationship can become more trustworthy
and more credible.’
you’ve just sold in June 2012 – here’s Roger and reinforcing the relationship. Always seek
Whalley’s five step plan: referrals as well.
communication hub of Hyundai Motor Step One – Remember: the longer the customer is happy
‘New possibilities.’ Company. At its core this communication
hub is not just about the simple exchange
Call new owners on the evening of the day
they collect the car when they have had time
with the purchase, the more likely they are
to refer friends and family – especially if you
of information but the kind of genuine
to get home, and ask them some simple non- can hint about suitable rewards for successful
n New thinking was to seek to create a “viral
‘ communication that happens face to face.’
provocative questions: referrals.
film” to get people talking.’ Followed by a Facebook spokesman:
n How did the like their new acquisition? Step Five –
n It was not just a one off thing - we
‘ n All the brands we work with at Facebook
‘
Keep up the regular contacts until they are
proceeded with the campaign by increasing are curious about the quality of their fans.
the engagement level step by step while Hyundai was no different. Working with a ‘…who would you ready to buy again.
If you have carried out this five-step plan
communicating with users; it all became research team we found that fans in the
continuous communication. properly, some important things will have
middle east and Africa are 2.3 times more

‘… 1.6m fans, likely to own a Hyundai compared to non-
fans. Also: fans are 15% more likely to
rather hears about the happened:
n he customer will have become a friend
T
recommend a Hyundai to their friends.’ – and people like buying from folks they
know.
200 million friends
Finally from Hyundai again:
‘These days all of us are facing too much complaint first – you n ou will have received some great referrals
Y
information… we are in the flood of and probably sold a few cars as a result.
information. n ou should be in the front line when it
Y

of fans…’ ‘We cannot judge ourselves which information or a neighbour?’ comes to the customer replacing the car
you sold in June 2012.


B enchmarker
Stop listening to excuses…!!
The Performance Group environment provides a terrific forum for debate out four areas of the business that had simply been allowed to sink to
amongst committed fellow dealers. Much of this debate centres round unacceptable levels of mediocrity, resulting in a Net to Sales of 2.7%
the reasons why certain undertakings have not been fulfilled for a which was well below his own standard of acceptability.
multitude of reasons. By the end of the PG session, the owner had given the Group the
In August last year, the respected owner of a prominent Sydney undertaking that the four key areas identified would be corrected
dealership turned up for the regular PG session in replacement of his by the next session and the meeting ended with most members
general manager, who had been a long-standing and popular member adopting a ‘wait and see’ attitude. You see, the general manager was
of the Group. When asked by the members what had happened to the seen by the members of his Group as a reasonably competent dealer
general manager, the owner explained that he had left because of the with a rational bank of explanations that brought nods of acceptance
pressure of not getting the dealership to perform at its true potential. whenever he explained how tough things were in the vibrantly
The owner, a highly competent and well respected businessman, pointed competitive Sydney market.
In February, the Group once again assembled and even those who had
taken the owner of this dealership seriously were astounded at the
rapid turnaround in the performance of the dealership since last we
had all met. The October to December quarter had shown the dealership
average at a startling 4.1% Net to Sales, an improvement of over fifty
percent and the owner sternly proclaimed that there was more to come.
Whatever respect the Group had for the owner before this event was
Paddy O’Brien raised to new levels and needless to say, every comment he made during
from Down Under the rest of the session was given hushed and serious attention.
When asked what he had done, the owner of the dealership retorted
with a most illuminating and profound comment: ‘I simply stopped
listening to excuses…’
When all is said and done, it really has everything to do with where you
‘set the bar’ and how you drive your people to achieve your vision of
true potential for the business.

Personalise your service technicians
You might have business cards – but do your ‘At first you might think this practice could be 3. hen the customer returns to have more
W
workshop service technicians have them as very restrictive. But in fact the opposite is true.’ work done and tells you which technician
well? Jeff goes on to list three things which will be he or she would like to work on the vehicle,
That’s the question posed by Jeff Smith, accomplished by this strategy: you have an ideal opportunity to load your
acclaimed author of ‘How to Make More Profit 1. he technician is putting his name in front of
T workshop schedule more effectively.
with your Service Department’ writing in a the customer and saying: “I’m the one who ‘The end result is you have the potential of
recent issue of the UK’s Auto Retail Manager. worked on your vehicle. Surely you must planning the work flow in your workshop and
‘Look at this as if you are a motorist collecting know what positive effect that will have on your customer feels more comfortable and
your car from the service workshop of your the quality of the work, and the cleanliness confident when booking the vehicle in – they
local dealer. You’ve paid the bill and are ready etc. of the vehicle. like having ‘someone I know’ working on the
to drive away. When you get inside your 2. he mirror hangar message can include all
T car. There is also a strong chance of service
car you see a professionally-printed hangar the company details, phone numbers and referrals – don’t be surprised when you have
suspended from your rear-view mirror that web addresses, and there is a reasonable new customers coming to you and asking for
says something along the lines of: chance that the customer will keep the card their vehicle to be worked on by a particular
“My name is David Jones and I am the because he or she wants the same person technician who has been ‘recommended by a
technician who has worked on your car today. to work on the vehicle next time. Also, with friend…’.
“If you are happy with the work I have done modern computer and printer technology ‘Referrals with a person’s name are far more
for you and you would prefer me to work on you can even personalise the card with your powerful than recommendations to a business.
your vehicle next time, please let the service customer’s name to make them feel special The cost of the personalised printing and the
receptionist know when you book in with us. – remember it is customer care which bring small amount of effort required will produce
“Thanks very much for your custom.” referrals. lots more work for you in the future.’

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BenchMarker Issue 2/2012 Australian Version