2013
AUGUST
They said I’d sell more used cars, but we haven’t moved the needle.
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MarshBuice later doesn’t always come to everybody
Hannah Philpott, Media Director hannah@autosuccessonline.com
JimmyVee & TravisMiller are you getting the value out of now?
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SusanGivens harness the power of online reviews
JeremyAnspach how to win the click
DalePollak four pointers to get used cars to the “virtual front line” quickly
KettyColom what’s the value in your social media icons?
Brian Ankney, Account Manager super6@autosuccessonline.com
marketing solution 42
Dave Davis, Editor & Creative Strategist ddavis@autosuccessonline.com
GlennPasch crappy service is crappy service, no matter what your website says
AutoSuccess Magazine is published monthly at 2300 Hurstbourne Village Dr, Suite 1200 Louisville, KY 40299; 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 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 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 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 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 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 2300 Hurstbourne Village Dr, Suite 1200 Louisville, KY 40299.
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leadership solution
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seven ways to use smart technology to make your customers happier
live chat — the business benefits
TerryGibson
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young dealer, big dreams, big success BillWittenmyer
Susie Horne, Account Manager John Warner, Sales-Improvement Strategist shorne@autosuccessonline.com jwarner@autosuccessonline.com
RussellGrant how to motivate your customers: it’s a gift
30 32 34
RobertWiesman how to market your personal brand — right now
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AJLeBlanc the case for online video strategies
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DealerPanel bringing on a vendor, part 1
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SeanV.Bradley Dealer principals and general managers — when was the last time you...?
MarkTewart why dealerships struggle? part 2
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DennisMcGinn a summer road trip — reconditioning in “real” Time
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SusanGivens
marketing solution
harness the power of online reviews
As online reviews play an increasingly important role in the automotive purchase process, reputation management becomes an essential tool for differentiating your dealership. Findings from several recent studies show just how influential online reviews can be: • Online consumer reviews are now the second most trusted source of brand information, after recommendations from friends and family. The majority of consumers now think that online reviews are as reliable as a personal recommendation. Nearly seven of out 10 consumers will refer to online reviews before buying. • More than two-thirds of car shoppers said that reading dealership reviews influenced which dealership they visited when shopping for a vehicle. Location and price seem to be declining as decision-making factors relative to good online reviews. • The total number of reviews posted for a specific business affects its overall reputation. A large number of reviews increases the credibility of the rating. It is clear that online reviews are affecting decisions about where customers will shop and what they will buy. If your dealership does not have a strong positive presence on online review sites, your prospects may be going elsewhere (it goes without saying that negative reviews can have a damaging effect on sales, and need to be addressed). So, how do you encourage positive reviews for your dealership?
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Here are a few best practices that can help: • Create a culture within your store that emphasizes good customer service to encourage positive reviews. Turn your customers into raving fans. • Ask for reviews. Build a time for soliciting reviews into the sales process. Have sales consultants talk to customers about writing a review while they are still at the dealership. Most customers are willing to do this when asked directly, but might not take the time without being prompted. Reward sales consultants who actively support and request customer reviews. • Make it easy for customers to write and post reviews by sending them links via iPads while they are waiting for F&I or delivery, when they are still excited about the new vehicle. An iPad selling system that provides links directly to the most popular review sites, such as Google, DealerRater and Yelp, provides quick access, and can avoid IP conflict issues. • Monitor what people are saying and respond to all reviews. Thank customers who provide positive feedback and address negative concerns politely to let customers know that their feedback is heard and valued, then quickly handle any issues off-line. Bob Euper, assistant marketing/customer relations manager of Lou Fusz Toyota, said, “We post our unfiltered online reviews from Yelp and DealerRater right on our store’s Website because we know our prospects are going to check us out before they come in. We have a top-down commitment to customer satisfaction, and you can see that in reviews we get. It’s incredibly persuasive for prospects to read such positive feedback directly from our customers, so we use iPads in the store to make it easy.” Jim Hughes, co-founder of IntellaCar, the iPad selling system used by Lou Fusz Toyota, added, “Online reviews make every dealer’s reputation visible to the public. They can be a powerful tool and build your credibility, so ease of access makes a difference.”
Susan Givens is the publisher of AutoSuccess. She can be contacted at 877.818.6620, or by e-mail at sgivens1@autosuccessonline.com.
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To learn more, call 1-800-200 -1513 or visit www.tdafdealer.com TD Auto Finance LLC, is a subsidiary of TD Bank, N.A. TD Bank Group is a trade name for The Toronto-Dominion Bank. Used with permission.
AJLeBlanc
marketing solution
the case for online video strategies For this month’s dealer video marketing profile, I am doing a follow-up interview of Richard Bustillo, GM of the Rick Case Honda store in Davie, Florida. The dealership is part of the Rick Case Automotive Group, which has 16 new car franchise located in Florida, Georgia and Ohio. Rick Case Honda is currently ranked the No. 1 Honda dealership in the southeastern United States, and is regulary ranked within the top few spots for the nation. AJ LeBlanc: Since our last interview in 2012, Google has published a case study in February 2013 about your success with video strategies on their ThinkwithGoogle.com Website. How did that come about? Richard Bustillo: I was contacted directly by Google, and a representative from the Google
Automotive Team flew into town, came to the store and conducted an in-person interview regarding the strategy and results of our current video marketing plan. It was great to spend the day with Google and share our current successes and insights using their different video platforms.
AJ: Can you explain the video strategies that Google reviewed in their case study? RB: I reviewed two different video strategies with Google: Video Conquesting and Video Pre-
roll. The Video Conquest strategy is where we create informational, consumer-friendly videos highlighting a Honda model’s advantages over the same in-class Toyota model’s features, so buyers see and hear our Honda model’s competitive advantages. We target a competitive brand because of current consumer buying trends. Google states that 60 percent of buyers start out with one brand in mind they think they are going to buy, but only 20 percent end up buying that brand due to crossshopping during the car buying online research phase. In addition, Google states that 73 percent of a buyer’s research activity is spent cross-shopping, so what better way to engage with buyer trends than to highlight our brand’s advantages while consumers are cross-shopping competing makes. The Video Pre-roll strategy is where we use targeted TV-style clickable 30-second video ads to connect with car buyers on their lifestyle sites. The average consumer spends four hours a day connected to screen-based Internettype media, so during the average 30- to 90-day car buying phase, a consumer spends between 120 and 360 hours online. The average car buyer only spends an average of 11 hours online during the car buying phase dedicated to car buying research, so this leaves open between 101 and 349 hours of online time the average dealership is not in front of the in-market buyer. Video pre-roll ads target buyers during this non-auto research time when they are online visiting their daily lifestyle Websites like sports, family, news, health, entertainment, finance, social media, etc. This gives our dealership added exposure to be in front of car buyers more often than just the 11 hours they are doing car research. The videos are clickable to our Website if the consumer is interested in finding out more information.
AJ: In closing, what were the results of these two video strategies and how did they impact your dealership? RB: The Toyota Video Conquest has increased our monthly Toyota trade-ins by up to 400
percent. We reviewed our vAuto trade data for the previous 12 months (September 2011 to September 2012) before we launched the Toyota conquest videos and saw that we averaged 9 Toyota monthly trades. We launched the Toyota Video Conquest campaign in September 2012 and just ended at 41 Toyota trades for the month of June 2013, so we have quadrupled our monthly Toyota trades since we started 10 months ago. Our goal was to convert consumers who own or are looking to buy a Toyota to reconsider and buy a Honda, which we accomplished. Our goal with Video Pre-roll strategy was to increase our Website traffic and grow our presence to car buyers while they are online, but not actively researching car buying information. By using Video pre-roll, we were able to increase our average unique monthly Website visitors between 3,000 to 5,000 per month. This, combined with Video Conquesting and some other strategies, have helped increase our average monthly Website visits to more than 30,000 with 18,000 uniques, up from 15,000 monthly visits and 10,000 uniques. Start using video marketing today to help your dealership gain additional exposure online to inmarket automotive buyers. AJ LeBlanc is the co-founder of Car-Mercial.com. He can be contacted at 866.795.9094, or by e-mail at aleblanc@autosuccessonline.com.
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Dan Moore is Serious About Websites. With 79 percent of consumers starting online, the nuts and bolts of dealer sites validate the importance of an effective site, as the pivotal reflection of the brick and mortar of your dealership. The modern dealership can be said to have two showrooms — physical and virtual. Dealers who ignore their virtual selling space are taking a huge risk with profitability. Bigger competitors and increasingly sophisticated online consumers are changing the digital space. This month, AutoSuccess gathered tips from Moore, a digital marketing activist with more than 10 years of digital dealership experience. Moore weighs in on how to better position your business and if your Website is harming or helping your profitability.
Measure Your Success Dealerships should look past the basics of visitor count, bounce rate and time on site. While they are relevant to evaluation, attention should also be placed on how customers are navigating through your site; this can be done through the use of heat and click maps. Many changes made to Websites are based on the gut feeling of the dealer or provider; important adjustments should be made based on the data, not the gut. Dealers should strategize based on where their traffic is coming from, and what customers are clicking on once they arrive. Consider a case in which a consumer searches Google for a 2014 Camry, clicks on a pay-per-click ad found in the results and is then redirected to the dealership’s home page with nothing relevant to
a 2014 Camry shown. At the time, this store was experiencing a high bounce rate. This dealership, using VinSolutions as its site provider, changed the initial page to one that listed their 2014 Camry inventory and the bounce rate decreased. Dealerships could also create unique vehicle landing pages with incentives, vehicle reviews and inventory-to-drive conversion. Social Media: A Website’s Best Friend Social media plays a critical role in a dealer’s online capabilities, as consumer click behavior shows significant carryover from social outlets to dealer sites. Data also indicates that dealers are not seeing a high return from just maintaining social links and plugins on the home page. Moore recommends including “Share” buttons on every piece of inventory to drive more social engagement. You will find it’s not only consumers involved in sharing inventory, but dealership staff as well. Encourage sales associates and managers to create conversations on networking sites to create buzz about the dealership and what’s on the lot. Both tactics can yield better overall use of social media translation to the Website. Find a Website Provider You Can Trust A dealership should consider their entire digital marketing program when choosing a providing partner. Look at who can best serve your Website, Mobile, SEO, SEM and Inventory needs. Find out what their overall Website strategy is, ask for current customer references, and determine if contracts are needed to start the relationship. Once those
questions are answered, ask yourself if you see them as a partner to help you achieve your overall digital marketing goals. At the end of the day, it’s about whom you can trust to do business with. Keep Industry Trends Top of Mind Moore has noticed several trends recently, a major one being the continued uptick in mobile visitors on dealer sites. The four primary pages customers click on are “Used Inventory,” “New Inventory,” “Certified Pre-Owned Inventory” and “Service.” More dealerships are now offering service menus and service scheduling directly on their mobile Websites, which may shape the importance of the service department over time. Dealership trends also show an increased demand in Web metrics and ability to react based on measurements found. With so many “experts” in our industry with conflicting ideas, effective information helps dealers gain ground against competitors who don’t maintain a solid database.
Mondays are the highest shopper traffic and lead traffic days on Websites. Sundays are the least viewed. - Source: VinSolutions VinLens™ Live Traffic Analytics
What’s Your Call to Action? Key calls to action (shown in the image below) encompass New, Used and Service search functionality. Home page rotator click data shows that click patterns die once reaching more than five slides in the rotation. Moore recommends three to five slides in a rotation to yield the best results.
Find the Proper Use for Pop-Ups Pop-up ads can be a great call to action but should be positioned in the right place, at the right time. Pop-ups should not jump out at visitors as soon as they arrive on your site. Consumers first need time to become acclimated to your site and what they want to search, much like arriving on the lot. Use pop-ups that are relevant and likely to inspire action. For example, if the customer’s IP address is at a Starbucks®, offer a $10 Starbucks® gift card with a test drive once they’ve had time to look through the site. Dealers using VinSolutions as their site provider have found this tool to be highly effective. Keep Content Current and Consistent Dealers should be cautious not to dump everything on their home page. Bring the visitors directly to what they want. If customers search for a Camry, send them directly to the Camry inventory or to a custom Camry landing page. At some point, sites will become more behavior driven and in-market shoppers coming from referral sites like AutoTrader.com will receive a more consistent experience, with a consistent look and feel to improve the consumer experience. When a consumer visits the Website for the second time, the site might say, “Welcome Back” and pick up on the page where they last left off. Based on IP address recognition in the CRM, a visitor who has recently purchased a vehicle will see a Website that is service-oriented, rather than the traditional pages and links. Soon, Websites will create unique experiences based on specific navigation patterns. A Picture is Worth a Couple Trade-Ins, at Least Believe it or not, there are still dealerships with no pictures of inventory on their site. Or, they only show photos of used vehicles on the site. While some OEMs mandate no photos of new cars on a site, they are slowly starting to rethink this restriction. For those who can
Dan Moore has 20 years of dealership knowledge working in various roles, including general sales manager and eCommerce director. Dan served as CEO of a digital marketing company for several years assisting dealers with maximizing their online capabilities. Dan’s experience in leveraging digital marketing to increase ROI and market share for hundreds of dealerships is what drives his passion in the automotive industry. Today, Dan provides dealers with highly effective strategies using tools such as social media, Websites, search engines and online advertising.
host pictures, do it; studies show consumers gravitate to sites that maintain high-quality inventory photos. Take it Mobile Accessibility on a device for consumers is key in today’s market, as we continue to see the uptick in mobile users. Current data shows that consumers on mobile devices, such as tablets and phones, want the opportunity to see inventory and maps, and easily find a number to call you. As mobile capabilities continue to evolve, consumers’ needs will grow. It’s not about over-complicating the mobile experience; it’s about smart, consumer-friendly navigation in the fewest touches with the quickest results. The Tip Above All Tips… The most critical recommendation is to build a Website for consumers, not yourself. Look at the stats you currently have and how your customers are interacting with your site, and then improve based on the data gathered. The “Shiny Object” effect might not be what your customers really want or need, so test and measure the results! Dan Moore is the Director of Interactive Marketing Sales at VinSolutions. He can be reached at dmoore@autosuccessonline.com.
JeremyAnspach
marketing solution
how to win the click
In today’s automotive digital arena, winning the click is what it’s all about. Let’s face it — if you want to sell cars, you have to get people to click through to look at what you have to offer. We’ve all seen the studies that show between 63 to 69 percent of customers’ first contact with a dealership is when they walk in the showroom. The big question that most dealers are asking is, “What can I do to strengthen my odds that they are going to come see me?” Unfortunately, there’s not one specific answer to that question; it’s a combination of many things. If you look at Google’s recent auto buying survey, it shows that consumers look at 18.2 sources of information before they buy a vehicle.
If consumers are looking at that many different pieces of information, it’s obvious that the answer to the big question is that you need to provide them with multiple pieces of information. The data must be independent data, with no bias to draw them to your store. But that leads to another big question: “What information?” In order to answer this question, you have to know what concerns buyers have when buying a vehicle. If you were to ask most car guys these days, they would answer, “Price!” However, that is not the main concern of most customers. On a scale of one to 10, studies show that consumers rate price between six and nine, depending on which survey you read. In actuality, there are three top concerns consumers have when buying a used vehicle: 1. Am I getting a good deal? Just because a customer asks this question doesn’t mean they’re necessarily focused on price. Obviously, price is a factor to any customer, but the key thing to remember is that people will pay more for something if they feel it is worth it. So how do you let them know your car is worth more? Data.
Most of the data you push out to the Web is canned, generic information. Your data must be relevant. Point out the top value highlights of the vehicle. If you rely on the consumer to decipher a bullet-pointed list of 50 to 100 vehicle options on the VDP of your vehicle, you’ll never maximize your click-through rate. The next piece of data is how your vehicle stacks up against the competition. Most car guys think, “In order to stack up, I have to price my vehicle in the dirt.” That’s only true if you don’t have a value-building strategy built into the merchandising of your vehicles. This is where the second top concern comes into play.
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2. Am I buying a reliable vehicle? How does a consumer know that the vehicle they are considering will be reliable? Carfax is a great vehicle history report that consumers want to see, but consumers want even more. You may be confident that the vehicle is reliable, but what are you doing to get that point across online? The reality is that your dealership is probably spending an average of $700 or more to recondition a vehicle. Why do you spend that money in recon? The typical answer is to make the vehicle reliable for the customer. If that’s the reason for doing it, highlight the reconditioning so your customer can see what you did for them. Not only would it answer one of the consumer’s top concerns, but a description and a VDP that highlights recon would also set you apart from the competition. Right now, you’re probably relying on your sales staff to build value in the vehicle when the customers get there — but how often do you really think they are doing that? In order to win the click, it’s critical to educate a consumer on why they should pay more for your vehicle rather than the competitor’s.
If two of the same cars are parked next to each other, price alone cannot answer which is the better value. One may have a sunroof, alloy wheels, new tires and new brakes, while the other one doesn’t. Or maybe one had a 60K service and the other didn’t. In either case, in order to win the click, the key is providing relevant information to the consumer before they get to the dealership. Consumers will pay more for reliability. 3. Am I buying from a reputable dealership? Are you a reputable dealership? How does the consumer know this? How transparent is the online information you provide? What does a customer see if they Google you? Will they see positive reviews? Do you show a market comparison highlighting how you stack up against the competition? Is the comparison accessible on your VDP page? Your merchandising should be structured in such a way that emphasizes transparency.
In closing, remember that success leaves clues. These are the strategies progressive dealers are using to pick off your customers one by one. The problem is that most won’t realize it — until it’s too late. In order to prevent the bleed, you have to look in the mirror and recognize that if you don’t get an effective digital strategy, it’s just a matter of time before the digital world will eat your business away. If you want to win the click and capture more customers, commit to these proven strategies for success. Jeremy Anspach is the president and CEO of PureCars. He can be contacted at 877.381.2632, or by e-mail at janspach@autosuccessonline.com.
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DennisMcGinn
leadership solution
a summer road trip – reconditioning in “real” Time A primary concern among all these customers was, “How do I continue growing revenue and margins while also balancing the ups and downs of new car sales with used car sales?” For instance, several dealers stated their manufacturers were not able to fulfill all their new car orders this fall, creating a real sense of urgency to significantly drive down their average reconditioning time. In a perfect world, you could forecast your sales and plan your resources accordingly. But, we also know it is necessary to react quickly to a dealership’s daily needs and changing priorities. To make this work, you need the right tool for the job. These summer meetings also emphasized
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other needs for improved measurement and management of reconditioning efforts. Some of these needs included: • Selling cars that are still in recon • Full disclosure of what repairs were made • Up-selling the customer on what repairs were not made
revenue. By way of example, being upfront with the customer builds confidence and makes the point that a buyer of a used car should budget for ongoing service. Offering to repair some, or all, at a reduced price adds short-term revenue and can capture ongoing service revenue.
Most dealers allow the sales staff to show customers a car which has not completed recon and whose margins are typically higher. With a workflow system, the sales staff can have “view only” access. This access has eliminated significant amounts of unnecessary questions to sales and service management.
Setting up the right system can streamline your recon efforts, bringing a welcome change to the dealership, as Marv Yager, the used car manager of Hines Park Lincoln in Plymouth, Michigan, recently told me.
Communicating what repairs were made is typical, and most customers will require this information before they buy. But, leaving out or avoiding what was not repaired may be a missed opportunity to capture additional short-term, and even long-term, service
“As a predominantly new car store, I have struggled with my U/C recon going on the back burner for many years,” he said. “We are all getting grooved on religiously entering the info and sending it down the line. The accountability involved has made all departments very dedicated to moving these units off of their clock.”
Dennis McGinn is the founder and CEO of Rapid Recon. He can be contacted at 866.268.3582, or by e-mail at dmcginn@autosuccessonline.com.
podcast interviewee
You can’t put a price tag on sitting down and meeting with a customer face-to-face — or, for “real.” Fortunately, for me this summer, I did just that by traveling through 14 states visiting with both current and prospective customers, and it was great fun.
MarkTewart
leadership solution
part 2
why dealerships struggle?
In the first part of this series on why dealerships struggle, I covered some essential tips of hiring the right team members. Nothing happens until you have the right people. In this article, I wanted to elaborate on an element that always exists in struggling dealerships that must be addressed before you can hire the right team members. As simple as this is, the first element in getting the right team is the willingness to let go of bad or less-than-desirable team members you have now.
Struggling dealerships are run by leaders who come from a position of weakness instead of power. This weakness leads to a false belief system that you cannot expect more or better results because you might lose these people. The fear is centered on losing bad people! Tolerating bad things from bad people can become the norm, and even expected. Excuses rule the day. Here is my wake-up call for you if you are one of these leaders: There are no excuses.
In every struggling dealership I have ever known, the dealer or leadership of the dealership has a false belief system that created their false reality around people and success. This belief system and ensuing reality is always based upon fear and scarcity.
Nature abhors a vacuum. If you have an expectation of getting great people, you must first be willing to let go of bad or underachieving people. If you take a glass of water and insert your finger into the glass, the water is dispersed around your finger. However, the moment you remove your finger, the water fills the void. This same principal exists around people. When you become ready to let go of bad people, the universe will allow you to attract better people.
The world is abundant. There is never a lack of desirable people, resources or money. There is only misguided belief systems centered on a mental position of lack. When leaders stew in a mental position of lack and scarcity, emotions become ingrained, which creates massive fear. False fears become absolute reality to the leaders, and are spread like cancer to the rest of the team. Those fears manifest themselves around the ability get good to great team members, and result in excuses about why less-than-desirable to bad people must be kept and cannot be replaced. Winning dealerships are never created through fear, scarcity and tolerating less-than-desirable actions and people.
In every single struggling dealership, there are people who do not have the talent, attitude or skills to do their job. Skills can be trained, but you cannot add talent that is not there. I have a saying, “You cannot put in what God left out.” As for attitude, I also have a saying: “People usually don’t change that much, so stop trying.” You must desire and accept champion attitudes and talent. People with champion attitudes and talents have “teachable spirits” and have a strong desire to grow their talents and add skills. Champions do not tolerate losing or less-thanacceptable standards. Champions are not attracted to bad environments created by bad people. Bad people do everything they can to run champions off because status quo is what they desire. Bad people have become comfortable stewing in their bad environments and have become professional victims, filled with excuses. Bad people never take responsibility. Ask yourself, “What is this team member doing to better himself?” Consider these two concepts: In the Bible it says, “If you move towards me, I will move towards you,” and there is a Hindu proverb that says, “Pray, but move your feet.” The centerpiece of both teachings is in people taking action and with personal responsibility moving towards something rather than waiting for something to come to them. Champions do not wait for their ship to come in. Champions either swim to the ship or build their own ship.
Mark Tewart is the president of Tewart Enterprises, and the author of the best seller, How To Be A Sales Superstar. He can be contacted at 866.429.6844, or by e-mail at mtewart@autosuccessonline.com.
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podcast interviewee
Stop tolerating and making excuses for less-than-desirable people. When you do, you start to cultivate a champion environment. You must first be willing to let the bad go to be able accept the good. When you let less-than-desirable people go, you always wind up asking yourself, “Why on earth did I wait so long and why did I put up with that?” In that question is the magical answer. What emotion or need are you fulfilling by keeping people you should not keep? This is solely about you, not them. Create a different reality today by changing your belief system. Just let those who should go, go! You are doing them — and your business — a favor.
SeanV.Bradley
leadership solution
dealer principals and general managers — when was the last time you...? When was the last time you actually went and listened to your Internet sales coordinators, BDC reps, appointment setters, sales consultants and sales managers’ phone calls? If you have a call monitoring system, do you log in yourself and listen to the recordings, or do you delegate it to someone else? Do you ever “mystery shop” your employees? Or, if you have hired an outside training or consulting company and they conduct call monitoring and/or mystery shopping on your behalf, do you ever read the corresponding reports and assessments?
Have you investigated all of your review sites? Do you know what’s being said about you on: • Google reviews • Yelp • Edmunds • Merchant Circle • Yellow Pages • BBB • Cars.com • Yahoo • Judy’s Book • City Search • Dealer Rater Are you even responding to people who are leaving reviews about your dealership, positive or negative? And, if your dealership is responding, is it with the right message? A negative review can turn into a positive review with the right response and actions taken.
When was the last time you went through your own Website? I am not talking about a quick review of the homepage. I am talking about you actually taking a deep dive into your entire Website by clicking on every single link, button, photo and drill-down page. Pretend you are a customer. Is your Website providing the type of experience you would hope for and expect if you were the shopper? After all, with consumers shopping an average of five to eight different Websites, will your Website’s experience be enough to initiate a phone call?
I listen to how proud they are of their organization. I listen to the amazing things they do in their community. I hear about altruism, integrity, dedication and more. But what I see, however, is usually completely different from what I hear — and that is a problem. Perception is reality. Dealers might have a strong vision and mission, but if it is not conveyed to the managers, sales consultants, service writers, technicians, BDC reps, receptionist and others, then it is lost mission.
When was the last time you listened to the way your people leave voice mail messages? Are they leaving the same mundane messages your competitor down the street is leaving, or are they leaving voice messages that will entice the customer to return your phone call and/or distinguish your dealership from the rest? Was a sense of urgency created? When was the last time you reviewed your social media strategy? You should be able to answer the following questions: • What are you Facebooking? • What are you Tweeting? • What are you posting to your Google + account? • What pictures are you uploading to Flickr or Pinterest? • What videos are you uploading to YouTube? • What are you saying to the public?
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When I visit dealerships, one of the first things that I ask managers and employees is “What is the organization’s mission statement and vision?” Almost all of these people have no idea that a mission statement even exists in their organization. And, of the few people who knew it existed, they had no idea what it actually was. Sadly, this is true for some general managers, as well. How is the organization going to personify the “vision” of the dealer principal if no one knows what it is? The way it should work is: • The dealer principal or GM states the mission, vision, values/principle and value package proposition (“Why Buy From Us?”). • Then — and only then — does the dealership find vendors and employees who align with the those values. Often, dealers “Frankenstein” vendors, just trying to sell cars. They also hire people at random without consulting the blueprint and guidelines set by the mission statement. • Make sure that each of the communication mediums — Website, e-mail templates, voice mail templates, advertisements, social media, etc. — are all set up with the dealer’s vision, mission and values clearly evident. Does the homepage of your Website recite the mission? • When a prospect or a client engages your dealership in any way whatsoever, it is crystal clear “who” the dealership is and what the dealership’s unique value package proposition is. Your brand is sacred, your word is your bond and your reputation is everything. If you believe that statement, then you need to make sure your dealership not only knows and understands the organization’s statement, but it is also perpetuating the vision, value and mission of the dealer principal/GM through actions, not just words. If you have any questions about this article or if you would like some free advice on how to create a mission, vision and value statement, please e-mail or call me. Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at sbradley@autosuccessonline.com.
podcast interviewee
When was the last time you reviewed all of your e-mail templates?
How about the paradigm of the dealership? I travel all over the country and work with thousands of dealerships, and what I have found astounds me. I sit with dealer principals and listen to their explanation of their organization. I listen to their mission statement, vision statement, social responsibility statement, and core values and principles.
“It Was Eating Up My Life...”
T
he car business was consuming my life. I think I’d be out of business if I hadn’t met Jimmy Vee and Travis ® Miller. Rich Dealers has been a complete mindset shift for me. I’ve gone from waking up with dread and a desire to get out of the business to having a plan for success for the first time in 10 years. ®
Before Rich Dealers , my dealerships had no structure, no purpose, and no direction. My brother and I knew what we knew from our father and grandfather, and it was business-as-usual. The store survived through grit and determination; we were there all the time, and although we were surviving, we were not thriving. It was a joke! We were spending $30,000 to $40,000 a month on advertising and the two of us would just sit down each month and decide what to advertise ourselves. We would run these ads with no idea if they would be effective or not. Rich ® Dealers provides creative that we know will attract customers. When you first hear what Jimmy Vee, ® Travis Miller, and Rich Dealers can do for you, it almost sounds too good to be true. I’m a skeptic at heart. I kept thinking, “What’s the hook in this and when is it going to fall apart?” But everything they say is real, and you realize quickly that there’s a greater wealth of knowledge here than what you originally thought. It’s a continual and constant improvement of your business. We changed the way we do practically everything—our ads, pricing (higher, much higher than everyone else), and especially the way we position ourselves in the market. Now I’m practically a local celebrity, with tons of credibility as an expert in the industry, and it’s lots of fun helping people. But even better than that— the results have blown our socks off. We were dumbfounded by what happened when we started. Everything Jim and Travis promised came true. We joined ® Rich Dealers in February of 2010 and our profits went up 78%. Our sales increased 51%, and they’re growing everyday. Traffic doubled, and our sales team couldn’t be more thrilled. It’s a lot more fun when you’re enjoying what you do, and making a lot more money in the process. I can’t
thank Jimmy and Travis enough for helping make this business fun again. First, they taught us that our life and ® business can be ESP —Enjoyable, Simple & Prosperous, and now it is! It’s a dream come true. What’s the secret? It’s all about becoming a solutions provider. Jim and Travis help us focus our Jill Merriam, on her way to spen d yet another fun-filled marketing on the people who think fami ly vaca tion with her husb and and child ren. they can’t buy a car right now. When Rich Dealers® has helped make this possible. you provide a solution to their problem, it’s like magic. They can’t wait to do business with you, and the profit on those deals is much, much And there really is no risk to joining, higher. It’s simple. As Jim and Travis say, because Jimmy and Travis stand by “Stop selling cars, start selling solutions.” their product. If you don’t like it, you just get out. That’s very refreshing in an ® That’s the main reason Rich Dealers industry where vendors are constantly like me are having success and seeing banging us over the head with long-term record profits, because we’re solutions cancellation penalties. providers, not product pushers. I say it ten times a day to my team. We are When other dealers want to know targeting the 98% of the market—the “non- how to get results like mine, I tell them intenders”—not currently shopping for a to have Jim & Travis create a FREE Traffic car, as opposed to 2% of the market—the Scale Report that’s customized for their “intenders”—who will beat you up over store. A Traffic Scale Report is an analysis price. As a franchise dealer, you will get of your traffic to see how it compares your fair share of the 2% based on location in quality, and quantity, to your direct and reputation. The other 98% aren’t competitors, and to other dealerships shopping just on price (even if that’s what around the country. they say at first). They need help with a problem they’re facing (i.e., negative trade You’ll be shocked by the results of your equity, credit or cash down). If you can Traffic Scale Report! It’s eye-opening to help them, you get paid fairly, feel good, see how much untapped opportunity there and have fun in the process! is in your market. The information in the report could easily lead to an extra $1 ® And Rich Dealers is about so much million in additional net profit over more than marketing! Not only do time. you learn how to attract truckloads of traffic, we also focus heavily on tweaking Tell them “Jill” sent you and you’ll processes, so that gross profit and CSI also receive a complimentary copy of increase. Jim and Travis encourage us their audio book, Invasion of the Profit to stop wasting our valuable and limited Snatchers. I’ll warn you—the book’s a little time and, instead, focus our efforts on controversial, but it’s definitely worth the things that matter, like developing your time. By the end of the first chapter, ourselves as leaders, so that we can have a you’ll be ready to join Jimmy Vee and bigger impact on our bottom line. Travis Miller on their fight to turn our industry around. It’s the best investment you’ll ever make for your business. As dealers, we Want results like mine? Request your waste money all the time on vendors and FREE Traffic Scale Report and get your we are in and out before the ink dries. Rich FREE audio book, Invasion of the Profit ® Dealers is completely different. This is the Snatchers, by visiting www.TrafficScale.com best return on investment of any vendor and use coupon code ASM1308, or we’ve taken on in the past 10 years, and it’s call 888-256-3321. really more of a partnership that I can see us staying with for the long term.
To get your FREE Traffic Scale Report, visit www.TrafficScale.com , coupon code ASM1308, or call 888-256-3321.
TerryGibson
marketing solution
live chat – the business benefits
Live chat is a great tool for businesses of all types and sizes to increase their online sales and enhance the quality of their customer service. By enabling visitors to interact with the representatives of your company, it helps prospects and customers get answers to all their questions and queries instantly, while building a database for marketing. This proactive live chat, as a standard channel of communication, can easily be installed on your Website. It can also be used for visitor tracking, as chat support is provided while the visitor is still on the Website. With the single click of a button that is embedded on the Website, a user REGISTER TODAY
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can access one-on-one chat functionality and personalized assistance online and in realtime. From giving the visitors product options and answering support-related questions to building customer trust and loyalty and maximizing the ROI (return on investment), there are numerous business advantages and benefits of live chat. Benefits of live chat: • Live chat is a low-cost investment and, in most cases, doubles the leads from your own Website. • Live chat’s built-in real-time monitoring features are great indicators to determine the best prospects to invite to a chat session. • A review of the chat transcripts and other detailed reports on the individual agents and agent groups are indicative of the effectiveness of your online initiatives. Combining analytics software with the chat application gives you access to conversion data, such as the effectiveness of filling in online enquiry forms when compared with live chat help. Post-chat customer satisfaction surveys can also be designed to rate the quality of the chat support service to both improve the quality and also extend its existing reach dramatically. In this way, by giving prospects and potential customers exactly what they need instantly, live chat not only delivers the required help as required and when required, but can also be tailored as a proactive approach to invite visitors for a live chat and drive product and service-related sales figures and increase conversion rates.
...would you want 100 percent of your online customers to be spoken to? The answer, of course, is “yes.� Treat your online customer like your customer in the showroom; you will increase your sales. In closing, would you want 100 percent of your online customers to be spoken to? The answer, of course, is “yes.� Treat your online customer like your customer in the showroom; you will increase your sales. Terry Gibson is regional vice president of sales at Engage to Sell. He can be contacted at 866.886.9493, or by e-mail at tgibson@autosuccessonline.com.
TracyMyers
sales & training solution
seven ways to use smart technology to make your customers happier With more people using smartphones and tablets to connect to the Internet, they increasingly expect to be able to make purchases and get information wherever they are and whatever the time. Dealerships of all sizes that fail to meet these expectations will find themselves losing customers. Those dealerships that harness the potential of technology, however, can use it to create an advantage. In fact, a major benefit for smaller dealerships is that they can offer the best of both worlds by combining the attractions of the latest technology with the old-fashioned personal touch. Today’s customers want the power of technology but they also want to be treated as individuals. The key is to ensure technology improves your service rather than creates a barrier between you and your customers. Here are seven ways dealerships can make the most of technology while ensuring their service to customers is highly personalized: Provide better information — One of the easiest ways to enhance your customer service is to ensure customers have easy access to the information they need. A good start is just making sure that people can easily find details of your products and services online and find out where you are and how to contact you. Enhance relationships — Creating a strong social media presence can help you stay in touch more easily with customers and help them learn more about you.
Answer customer questions — Being able to handle questions quickly and easily can help you improve relationships and make more sales — this can be done through social media sites such as Twitter, through live online chat services and by using e-mail. Speed of response is critical to success. Improve communication — Technology such as call-routing can make things easier for customers by ensuring they are talking to the right people to deal with their questions or issues. It’s vital to make sure this technology makes it easier for customers, rather than raising barriers. Tailor services to individuals — The more you know about your customers and their preferences, the easier it is to give them what they want. Collecting the right data will help you deliver information and services relevant to each individual. Make it easier to buy — The right technology makes it easier for people to buy what they want by simplifying and speeding up the purchase process. You can help people find the right solution for their specific needs. Offering more channels of contact — The more ways someone can contact you, the more likely they are to buy. You can integrate different methods of purchase and communication, especially to take advantage of the growing popularity of mobile. Orders can be placed and tracked on smartphones, and text messages can be used to communicate important information. Many dealership owners worry that technology can come between them and their customers, but the truth is that technology can enhance the relationship. Used correctly, it helps you get to know your customers, communicate with them better and satisfy their needs more effectively. Customers want to work with dealerships that use technology to save them money and make their lives easier. And most employees adapt easily to technology without needing time-consuming and costly training. One of the keys to a dealership’s success in today’s economy is harnessing the full advantage of developing technologies while still delivering the personal touch that encourages customers to keep coming back. Tracy Myers, C.M.D. is a noted small business marketing and branding solutions specialist, best-selling author, speaker, car dealership owner and entrepreneur. He can be contacted at 866.860.0029, or by e-mail at tmyers@autosuccessonline.com.
DO YOU WANT TO KNOW HOW OTHER DEALERS HANDLE THE CHALLENGES THAT YOU FACE EVERY DAY? AutoSuccess & DealerELITE are both designed to keep the view from the sales floor front and center in everything we do, and we've come up with an exciting new way to accomplish this. Our new Dealer Panel gives voice to dealers, GMs and sales professionals to share their experiences — sales techniques, new technologies and ways to motivate staff — giving our readers the benefit of their experiences.
SEE PAGE 26 FOR MORE...
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DEALER PANEL
autosuccessonline.com
successful solutions provided by
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the dealer panel
Chris Saraceno AndrewDiFeo Brian Benst ock
part 1
bringing on a vendor
A dealership is set up to sell vehicles; that is its purpose, and that’s what it should do well. So, when your dealership needs help in other areas, searching out the right vendor to help do what your dealership can’t is crucial. A dealership/vendor relationship is a partnership, and finding that right partner can mean the difference between success and frustration, and even failure. For the next three installments of the AutoSuccess and DealerELITE. net Dealer’s Panel, we’ll look at what goes into our panel’s decisions on THE a vendor into the fold, what they look for and what can take a bringing vendor off their list completely.
DEALER PANEL
For this installment of our panel, we spoke with Chris Saraceno, vice president and partner of Kelly Automotive Group in Pennsylvania and Florida; Brian Benstock, vice president and general manager of Paragon Honda and Acura in New York City; and Andrew DiFeo, general manager of Hyundai of St. Augustine in Florida. AutoSuccess: In general, how do you decide when the time is right to search for outside help? Andrew DiFeo: My managers and I are always reading industry
publications and blogs to see if there are any trends in new technology that could possibly solve a pain point in the dealership, either to save money in what we’re currently doing or become more efficient in a certain process in sales, service, parts, F&I or another other part of the business. We also look to see if there’s a technology that can assist us in aiding our customers in what they do — for example, scheduling a service appointment online. If we are currently using a vendor, the only thing that will force me to look outside is if they do something to harm our relationship, or if we don’t see results with their product.
one of our management meetings, we identify an area that we do not have the skill set or tools needed to accomplish a specific goal — We ask, “What do we need to do to accomplish this? Training? A process? A product or tool? In several cases we have discovered that the time, effort and cost of us to doing something internally actually cost more than partnering with an outside company — recruiting, for example. The second way we decide it is time to search for outside help is when several of our department leaders approach myself or Greg Kelly and suggest, “We needsolutions support in the following area to grow or improve successful provided by our department. We’ve heard about XYZ company — can you do some research on this, or do you know someone using this product ?” When we go to NADA or AutoCon — the big conventions — we will look for the specific vendor partner our store leaders are asking us to talk with.
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AS: What goes into your search process, and what are some important factors you consider? AD: We review whatever marketing materials the company has to offer
regarding the features, values and the benefit of their product. We also use product demonstrations; we never sign up for anything without demoing the product, obviously. We try to get as many of our managers or employees who will be using the product involved in the demo to see if it’s something they can use. It’s one thing if the dealer principal likes the product, but if it’s something that, at the user level, is not appealing to them, it might not make the most sense to use it. We ask the vendor for referrals and speak to those people. We also try to ask for a referral for someone who might not have liked the product, and find out why they didn’t like it. We also look online for vendor ratings and reviews, as well.
BB: If there’s a situation where we need to look for outside help, we’re
going to look at reviews and recommendations. Word of mouth is probably the No. 1 thing that anybody buying or using a product wants to see. If you buy a pair of headphones online, you read the review, you we don’t really view anyone as a “vendor.” We really try to stick with see how they work and how well they work down the road. If they get a what we know, which is selling cars, and work with all our partners in a bad review, you’re probably not going to do business with that company. joint effort to gain more opportunities in the market. I don’t know that we have a certain time where we decide to look for outside help; it’s more We also attend conferences and meetings to understand trends in the theand dealer panel then look to speak to some vendors or other people at ongoing, to make sure we are addressing the needs of the consumer, and market, the event who have had experience with the product. The market is ensuring we’re capturing the most opportunities in the market. continually changing, and it’s not always about changing with it, but holding your current partners accountable to adapt to what’s going Chris Saraceno: Searching for outside help typically happens in one on. When new products or processes come out, we certainly do some of two different ways at the Kelly Automotive Group. Normally, during investigation on leveraging that to see if it can help our business grow. Brian Benstock: We’re fortunate to have a lot of good partners, and
We also use product demonstrations; we never sign up for anything without demoing the product, obviously. We try to get as many of our managers or employees who will be using the product involved the demo to see if it’s something can Chris Saraceno Tonyin Provos t AndrewDiFeo Brianthey Bens t ock use. It’s one thing if the dealer principal likes the product, but if it’s something that, at the user level, is not appealing to them, it might not make the most sense to use it.
CS: We have made it a company policy to look at a minimum three vendors with similar products. We’ll take a look at reviews. We contact referrals and talk with two or three dealers who use the product. With smaller vendor/partners, we speak or meet with owner of the company. We want to meet with people face to face and get a feel for them. We want to get to know them. We ask “Who is our go-to person to call at your company if there’s an issue?” Our goal is for us to partner with one another to help both our companies growth. Price is a factor, but we’re looking for the best price value. If you have questions or are a dealer who would like to be considered for the panel, please contact us at thepanel@autosuccessonline.com.
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RobertWiesman
marketing solution
how to market your personal brand — right now There are so many ways that you can creatively push your personal brand into the marketplace. You can go extravagant, or you can go simple. I want to give you some basic strategies that don’t break the bank, but will assist in getting your personal brand into the marketplace and making you the go-to expert. Video /YouTube Channel
You will need to produce some videos to do this — do it fast. You need to make a video, then another and then even more. Nothing gets a personal brand more attention than video. Go back and read my piece in the July issue, “Videos That Sell (You),” where I list the videos you need to produce. The great news about video is that you can produce it with pretty much zero out-of-pocket expense. I am going to assume you own a smart phone, and you have it on you at all times. It only takes you hitting “record” on that camera and talking about why you are the person for their automotive needs. Create a YouTube channel (which is also no cost to you), and then upload your branded graphics to customize and brand your channel. Now, you not only have a free platform to host your “personal branding machine,” but also have a much better chance of Google ranking your videos — so when potential clients are typing relevant keywords, they will stumble upon your videos.
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Personal Website
A personal Website is another awesome place to post your video. In today’s world, if you’re trying to build a credible brand, you will need a Website. Your site must tell your personal brand’s story. Let people catch a glimpse of the real you. Let them see you are interested in some of the same things they are, and faced with the same challenges. Most important, let them see you are an expert who is going to provide them with the most mind-blowing car shopping experience that they’ve ever had. Make sure you keep up with your site and are consistently posting content of value. “Tips, tricks and secrets” does the best and, in most consumers’ eyes, who has the most tricks and secrets? Car salesmen. So give them tips and how-to’s on buying, shopping, test driving, negotiating, selection, trading, etc. That will do wonders for your credibility and, without a doubt, brand you as an expert. Your personal Website is also the place to showcase all the video testimonials you’ve collected. How many sales professionals can share a link with a prospect to their awesome personal Website? The prospect can then see that this guy knows what he is talking about, is taking good care of his guests and is obviously committed to what he is doing. They are going to want to come and see you. The bad news is this is not free. You can technically do it for free, but a bland, out-of-date stock Website does not help explode a personal brand and build credibility. The good news, though, is today it does not cost a lot of money to pump out a quality Website. Personal Brochure
We all know how valuable a good business card can be. What’s even better is a personal brochure. I’m not talking about some flimsy, cheesy tri-fold brochure; I’m talking about a little booklet. Something the size of a small greeting card will do fine, made with the thick cardstock, with full-color print on both sides so, when folded, it will open up like a booklet. Make sure to do a matte finish paper over the gloss. I say that because not only do full-color graphics look classier on a matte-finished cardstock, but you then can also write a note — such as the time for a appointment — on it. A gloss finish makes that nearly impossible. So, what goes in it? I’d suggest a cool photo, logo or custom graphic on the cover that references your personal brand. Also, the cover should have your name and contact information in your personal brand’s typeface. On the first inside page, you should have “Who I Am,” with a little bit of your story. Next, round up five or so of some of your best clients who are in love with you, and get them to write a two-sentence testimonial about their experience working with you. The icing on the cake is, with their permission, to also include their name, phone number and e-mail. Let your guest know that these people will tell them what it’s like doing business with you. This blows people away and shows them you are a committed professional. On the back cover, have your personal brand’s information, as well as your Website URLs, social accounts and personal contact information. People will throw out or lose these booklets less often than cookie-cutter business cards, and they always remember who gave it to them: the automotive expert they now have decided to go back to and buy a car. I’ve done these strategies, and they’ve all gone over well. These are only three of many, but these three are not just all low cost (if any cost); they are also all easy to implement right away. If you’re interested in talking about more advanced and creative strategies, feel free to contact me. Robert Wiesman is a director of online operations for Buchanan Auto Group in Waynesboro, PA. He can be contacted at 866.667.0919, or by e-mail at rwiesman@autosuccessonline.com.
podcast interviewee
If you’ve been following my advice from past issues of AutoSuccess, you’ve now created your killer logo and your unique personal value package and you have your target audience right in your scope. Now, it’s time to let the world know what you and your personal brand stands for.
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RussellGrant
marketing solution
how to motivate your customers: it’s a gift
• Maximize Your Incentives: Utilize microsites and give your customers a gift if they RSVP for an appointment. Wouldn’t it be worth the $500 to gather valuable information from customers on the RSVP microsite — information you can use to help sell vehicles before your promotion even starts? Plus, that same information can be used for future campaigns. Gifts can also be effective when conquesting. Use your dealership’s Website to capture information and, in exchange for that information, offer consumers a free gift when they complete the form. This can really help with your Website’s conversion ratio.
• Motivation: Just because someone is interested in purchasing a vehicle doesn’t
Russell Grant is the vice president of sales for J&L Marketing. He can be contacted at 866.503.8397, or by e-mail at rgrant@autosuccessonline.com.
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podcast interviewee
So, don’t worry about gift seekers. If your campaign is done properly and creatively, a gift is a strong tool that will motivate customers and drive high-quality traffic directly to your dealership.
t•
While there are a number of reasons why gifts are a strategic part of a successful marketing campaign, I want to share with you the three most important: • The Law of Reciprocation: We all know that if we do something for somebody, they will feel obligated to do something in return. This doesn’t mean someone will buy a car out of obligation, but it does mean if you get that customer to your showroom, they may take a test drive — or be more generous with the time they give you at the dealership.
• Proven Results: I’ve been tracking marketing results for two decades, and the results are overwhelmingly stronger for campaigns that use a gift versus those that do not. Also, dealerships that highlight their gift in marketing materials receive a better response rate and experience the high-quality traffic they’re looking for. The best approach is to make your offer first and then motivate the customer to take action with a gift.
en
One of them is: “Why do I need to give something away to get people into my dealership, especially if they’re already my customers? I don’t want a bunch of gift seekers at my dealership.”
mean they’re coming to your dealership any time soon. By offering them a gift, it motivates your customer to take action now. This way, your marketing gives customers a reason to respond when you want them to, which is often much earlier than they would have without your offer.
em
As I travel the country speaking to dealers, there are several questions that have come up consistently in the 20 years I have been in this business.
LOS ANGELES
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DalePollak
marketing solution
four pointers to get used cars to the “virtual front line” quickly Last month, I addressed best practices to help dealers get vehicles out of reconditioning and retail-ready in less time.
Pointer #1: Focus on Photos First
My article was intended to help dealers recognize the “time is money” nature of today’s used vehicle business and help them minimize delays that prevent them from getting cars to the “front line” in a matter of hours, not days.
For trade-ins, some dealers ask appraisers or managers to take photos of vehicles they identify as retail units. They’ll use mobile phone cameras to capture three to five preliminary photos to post online as part of an initial listing for the vehicle. Some dealers save these photos as part of a vehicle’s story book to show a customer a then/now view of a vehicle and underscore the value of their detailing and reconditioning work.
I also noted how today’s dealers really have two “front lines” to worry about — the physical “front line” on their lots, and the “virtual front line” on dealership and third-party Websites. This article aims to help dealers trim the time it takes to merchandise vehicles on the “virtual front line” to a matter of minutes, not hours.
For auction vehicles, dealers cull photos of vehicles they’ve purchased from auction listings or the Websites of selling dealers who brought the vehicle to the auction. If those photos aren’t available, and the car is purchased at a physical auction, dealers task their buyers to take preliminary photos to merchandise the vehicle.
Before we dig in, however, I should offer two quick stage-setters. Pointers that address a preliminary phase of online used vehicle merchandising — one that alerts potential buyers that you’ve got a desirable car and offers them more detail and information than the “photos coming soon” or “call for details” placeholders some dealers currently use. Second, the pointers are gleaned from dealers who have determined the extra steps required to get cars to the “virtual front line” quickly are well worth the effort. They see more vehicle details page (VDP) views sooner and, as a result, retail their vehicles more quickly to maximize profitability and their return on investment (ROI).
Pointer #2: Complete a Description
There are two approaches here — some dealers post a preliminary description that offers key highlights of the vehicles; others aim to complete a description that will serve as the “final” take. Either way, the goal of the description is to highlight each vehicle’s unique attributes and its value proposition. Some dealers tap their appraisers and sales teams to help define the “story” behind a trade-in vehicle. For auction cars, a vehicle’s condition report often contains sufficient details to craft a description. Pointer #3: Post Your Price
At process-efficient dealerships, the initial asking price of a vehicle can be quickly determined using pricing tools that help calculate a car’s costs (acquisition plus reconditioning, etc.), its desired profit margin and its best retail price position, given competing units in the market. This initial pricing decision is trickier at dealerships where it can take days to get estimates and approvals for reconditioning work. In these cases, a “call for price”-type notice on the vehicle’s online listing is probably the safest, albeit less optimal, option. Pointer #4: Be Up-front About Glitches
Dealers who make the “virtual front line” a top-tier priority say they sometimes encounter issues with customers expressing interest in vehicles that aren’t available at the dealership. This can be caused by vehicles failing post-auction inspections or encountering transportation delays. The dealers say that when they explain the situation in an open and up-front manner, most customers understand the circumstances — and some even accept the dealer’s invitation for a right-of-first-refusal and opportunity to see the car as soon as it arrives at the dealership. As noted earlier, these “virtual front line” pointers amount to an extra layer of work. However, dealers say these steps help them garner more VDP views and customer leads, which translates to selling vehicles in less time to maximize their front-end gross profit and ROI potential.
Dale Pollak is the founder of vAuto and a best selling author. He can be contacted at 866.867.9620, or by e-mail at dpollak@autosuccessonline.com.
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podcast interviewee
Perhaps most important, the “virtual front line” best practices help dealers meet an operational mantra that’s becoming ever-more critical: “If a used vehicle isn’t online, it isn’t for sale.”
KettyColom
marketing solution
what’s the value in your social media icons? There is a reason your social media icons aren’t really doing anything. Simply put, consumers will ask — “what’s in it for me?” While browsing several dealerships’ Websites, I found these social media icons slapped on the homepage with no value proposition, or very lackluster callto-actions. As a consumer, why do I want to connect with you? One dealership thinks I want to be friends, while many others did not give me a reason for me to follow them at all.
The Solution
There are three things to consider when you are looking to add social media icons to your newspaper ads and online: 1. If you want more people to connect with you on your social media channels, what’s in it for them? 2. If you want more people to connect with you on your social media channels, in regard to offline marketing material, you must make it easy for them to follow or like you. 3. If you want more people to connect with you on your social media channels, you must ensure there is a clear call to action. Let’s break it down: What’s in it for Them?
A consumer goes to your digital showroom and sees social media icons all lined in a row. That’s it? Why should I like your dealership on Facebook/Twitter? What’s in it for me? Can I expect to be updated with breaking news or when new vehicles hit the lot? Will I get to see pictures of your staff? Maybe I’ll be lucky enough to follow you because you’ll include service coupons/discounts or special follower pricing on a new vehicle. Did You Make it Easy?
In regards to print or any other marketing collateral you slap social media icons on, ask yourself: Did I make it easy for someone to follow me? How do they like me on Facebook? How do they follow me on Twitter? Where do they go? What’s the URL? What do they do when they get there? Also, the homepage isn’t a good place to place your social media icons. It is already crowded enough with rotating banner ads, new vehicle information and current specials. Try placing social media icons where it makes sense. Put them in the “About Us” section, or in the “Specials/Coupons” section of your Website to get people to follow you for updates on moneysaving coupons. Where’s the Call-to-Action?
Dedicate more real estate to your social media icons and add a call-to-action. “Let’s be friends” isn’t sufficient. Again, think about the consumer’s question: “What’s in it for me?” Something more appropriate would be: • Follow/Friend us to... • Get exclusive updates and money-saving coupons! • Be a part of exciting contests and prizes! • Learn how to maintain your vehicle! I could go on with more examples of good callto-actions, but I think you get the point. The next time I’m browsing dealership Websites and print ads, I hope to find more value in the social media icons dealerships display, and if I do maybe — just maybe — you’ll gain a new follower. Ketty Colom is a marketing associate at ActivEngage Inc. She can be contacted at 866.855.5643, or by e-mail at kcolom@autosuccessonline.com.
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You Are GUARANTEED to Increase Your Bottom Line in 1 Year by $250,000 or More...
or I’ll Pay You $10,000! Hi, my name is Mark Tewart. I may have had the honor of coming into contact with you through my seminars, association meetings, NADA or NIADA conventions, articles in AutoSuccess or other magazines, my old Automotive Satellite Training Network shows or you may have read my best-selling book How To Be A Sales Superstar. Whether you know me or not, you may be wondering what allows me to be able to make such an outrageous claim. The answer is simple: If a client follows my no gimmick, no BS, full-proof and proven methods, the results are as predictable as the sun coming up every day. That may sound arrogant to some of you, but to me and my select clients it’s just reality. Every year I have many dealers who ask me to work with them to help improve their sales and profits. I reject most of them. I only choose a few each year to work with on such a large scale. There are a few reasons why I carefully hand pick who to work with. The first reason is that it’s easy for you to say you want to improve but most people don’t want to do the things necessary to make it happen. This isn’t some magic-button, pie-in-sky fad. These are real-world and proven methods for massive profit improvements. It takes hard work and lots of commitment.
Mark Tewart, President of Tewart Enterprises, Inc. Author of the Best-Seller ‘How to be a Sales Superstar’
The second reason for me being picky about who I work with on these projects is that frankly I don’t have the time. To create the massive results that you and I are looking for requires a great deal of my time and effort. Because of my time restraints, I refuse to spend time and effort with uncommitted dealers. I only align myself with passionate people committed to winning. The third and final reason for me being selective is my reputation. I can’t write ads like this and make such incredible guarantees unless I can bring the results. My reputation is beyond solid. By the way, the $250,000 bottom line improvement is just an example. I have had some dealers increase their bottom lines by more than $1,000,000. Look at it this way; I don’t take $10,000 guarantees lightly. I put my money where my mouth is.
Call my 24 hour Dealership Success Hotline to receive your “Dealership Success Check List” –
Call Now at 888 612-5884 Ext. 90001 or Go to www.dealershipsuccess.com
***Dealers or General Managers Only*** Sincerly,
Mark Tewart
Info@tewart.com | 888 2 TEWART - (888 283 9278)
P.S. There is one very simple thing most dealers aren’t doing that you can do to unlock an additional 7 figures worth of profit with no extra risk in the next 5 years. I know it sounds too good to be true, but you can see for yourself.
Call my 24/7 Dealership Success Hotline at 888.612.5884 Ext. 90001 or Go to www.dealershipsuccess.com
MarshBuice
leadership solution
later doesn’t always come to everybody
Needing a brush-up scrimmage, the mighty UCLA Bruins called upon the tiny Cypress Community College Chargers; they got more than they bargained for. Swen Nater dominated the game from one end of the court to the other. One coach sitting high in the rafters took notice; his name was John Wooden. As with most scholarships, came a promise. Coach Wooden promised Nater that with the awarding of a scholarship, Swen would receive little if any playing time. The only reason he received a scholarship was to develop the skills of someone else. His only assignment was to make center, and future NBA great, Bill Walton better. All practice and no play, Nater often grew despondent; at times he wanted to quit and walk away from the game forever, but Coach Wooden helped Swen become a bigpicture thinker. “It’s amazing what a team can accomplish when no one cares who receives the credit,” Wooden proverbially said. Accepting his role, Nater admitted, “Walton will never reach his potential unless I reach mine.” Among other awards, Walton went on to become a two-time NBA champion, League
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and Finals MVP, and was named one of the NBA’s 50 greatest players in history. Even though he never started a collegiate game, Swen Nater went on to play 12 years professionally for the ABA, NBA and the Italian League. He was the ABA Rookie of the Year and is the only player to have led the ABA and NBA in rebounding. Not bad for an orphaned backup. • Even though he was a high school All-American, no college was pursuing him, so his father sent his son’s game highlights to 60 colleges. Michigan gambled and signed him to be a backup quarterback. With, at best, average stats, NFL scouts said the senior was too slow, couldn’t avoid the rush and had a weak arm. After 199 picks, the New England Patriots signed Tom Brady to the all-too-familiar role of backup quarterback. Brady kept plugging — he practiced and prepared as if he were the starter by adopting a first-in, last-out mindset. “Don’t let other people tell you what you are capable of,” Brady said. “As long as you believe in yourself and work hard to whatever you set your mind to, you just keep plugging away. It may not be to your time table, but you can get it done.” In Week 2 of the 2001 season, the starting quarterback went down. Brady got his shot and never looked back. Brady’s resume reads eight Pro Bowl selections, three Super Bowl rings and two Super Bowl MVPs. Not bad for a slow, weak-armed, backup QB. • Arriving home after a basketball camp featuring the best high school players in the country, a demoralized 17-year-old Shaquille O’Neal questioned his dream of playing in the NBA. Hearing his fears, his mother encouraged him to simply try harder — to which the young Shaq told her, “I can’t do that right now; maybe later.” His mother spoke six words that forever changed the course of his life: “Later doesn’t always come to everybody.” Leaders have to think “later”; doers have to think “now.” As a leader, you have to look at your people as they should be, and not as they are. Your people need a spark of belief to ignite the bonfire of their potential. Your people are choking on the fumes of society, family members and so-called friends telling them of what they are not — it is up to your leadership to provide oxygenated belief in them of what they are truly capable of. When the world shows them disbelief, they need you to step in with a word of encouragement. It takes a spark to ignite a fire. Set your people on fire with encouragement and watch the world gather to see the blaze of their potential. As a doer, you must take action and do — now. If you’re not willing to add the logs of effort, you’ll never catch the flames of results. Don’t ever let your current title determine your final position in life. When you’re left absent of hope, advised to never return or abolished to the belief that you are too anything — too slow, too weak, too broke — you just keep plugging. Doers get discovered; losers get left behind. Musician Eminem said, “If you had one shot, or one opportunity to seize everything you ever wanted, one moment, would you let it slip away?” Don’t ever let the moments of life slip by. Always be a spark of encouragement to others; even a few encouraging words may avert another’s disaster. As a doer, you should never dock — in spite of the tumultuous seas of adversity; in lieu of dead ends, road blocks and road closures of life — no matter their current positioning of being benched, sidelined or second teamed, the work never stops because doers know the path of opportunity and belief will eventually cross. If you faint not… Maximize your moments, because later doesn’t always come to everybody. I’ll see you next time on the blacktop. Marsh Buice is the sales manager of Mark Dodge, Chrysler, Jeep. He can be contacted at 866.535.5006, or by e-mail at mbuice@autosuccessonline.com.
podcast interviewee
Broke and in search of a new beginning, Swen Nater’s parents made the decision to leave Holland and start over in America. Unfortunately, not everybody was invited to make the trip. His parents made the grueling decision to only take his baby brother — leaving Swen and his sister behind to live in an orphanage. Out of the 60 orphaned children, Swen’s parents were the only ones still living. After three long years, Swen and his sister finally reunited with their family in America. Towering over kids his age, Swen tried out for his high school basketball team. Not only did he not make the team, but he was told to never come back. At 6’10” tall, Swen literally was the big man on the Cypress Community College campus. As he lumbered to class one day, he caught the eye of the college’s basketball coach; Swen instantly made the roster. With his high school coach’s words still ringing in his ears, Swen set out to prove the nay-sayers wrong. Arriving before others and staying on the court while everyone else hit the showers, Swen diligently worked out the kinks in his game.
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GlennPasch
leadership solution
crappy service is crappy service, no matter what your website says I was reading an article in Business Week and a quote caught my eye. It said, “If you have a great Website but a crappy in-store experience, that will affect business.” Now, that may seem like a common-sense statement, but there are many businesses that are looking at their Website as the be-all and end-all to their business solutions. So, how can you do an audit of your experience at your place of business? Customer Experience Scorecard
Let me explain my process, which you can adjust for your company as needed. I created a checklist that would score all the various stages of customer on-site engagement. As I went through my visit, I would score each point so it would be easier for me to help improve performance in specific areas, instead of thinking that everything was wrong. My tracking started even before I arrived, because I used the directions on the Website to see if they were easy and useful. As I drove up and got out of my car, I began looking around as if I was a customer. Many retail businesses only focus on what happens once the customer enters the store, but the impression is being formed as they walk up. Also, many employees are so used to coming to the location that they actually stop seeing things as they walk past. Is there anything off-putting? Customers may not consciously notice things like cigarette butts, trash, dying plants or employees huddled by the door, but it does register in their mind. I would then grade every interaction with the team and element of the store. Add each onto the scorecard and give it a grade. For example, let’s take a car dealership. Elements would include the first person who greets you, the showroom, the service center, the service counter, the waiting room, bathrooms, TV choice, etc.
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The list could go on, but let’s say you came up with 10 points along the customer experience. How do you honestly grade yourself? What then must happen is you need to check to see if there is a documented process in place that covers how this part of the journey should be handled. If not, create one and train the team. If there is a process, re-train your team to get this part of the journey fixed. Then, score yourself again in a month or so. The goal is to improve your overall customer journey score. If you focus on the experience in pieces, you will be able to impact specific areas that, in turn, will improve the overall performance. How did your experience line up with your Website? The goal of all of this is to create the experience that matches your claims on your Website. Your customers will talk about the experience at your business, and many will do it online. What you cannot afford is customers telling others that the promises you make on your Website are not followed through. This affects all of your business, because if you are promising great service and fail, then all of your claims regarding your products are also tainted, and you lose business. Use this idea of a scorecard to make sure you are delivering an excellent experience for your customers.
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Glenn Pasch is the CEO of PCG Digital Marketing and a national speaker and trainer. He can be contacted at 866.611.0998, or by e-mail at gpasch@autosuccessonline.com.
podcast interviewee
M A R K E T I N G
BillWittenmyer
leadership solution
young dealer, big dreams, big success Rahim Hassanally has achieved quite a bit in the automobile industry. The Texas native began his career as a salesperson during his high school years and from there began his rise to become the dealer principal of the Momentum Auto Group, located in Fairfield, California. He accomplished all this by 34 years of age, and through some of the worst economic times in recent memory. Hassanally recently made the Automotive News Class of 2013 “Top 40 Under 40” list, and I sat down with him to speak about how he got to where he is, the tools that allow him to operate a 16-franchise auto group, and what he plans for the future. Bill Wittenmyer: How did you get started in the car industry? Describe your career to this point. Rahim Hassanally: I began my automotive
career while still in high school. I grew up in the Dallas/Fort Worth area, and my parents were in the hotel business. They asked if I wanted to be involved in that business, and I did not. Instead, my high school had a co-op program; I attended school until noon and then would sell cars the rest of the day. I quickly became salesman of the month and started doing exceptionally well in the car business. While attending Southern Methodist University, I would attend school until noon as I worked my way up to finance manager, finance director, sales manager, and then GSM.
BW: Have you always been driven? RH: I have always been career driven. Even
at a young age, I was very business minded. When my parents picked me up after school, I did not attend basketball or soccer games. Instead, I helped at our different family-owned businesses, and learn about operating the companies. BW: What was it about the car business that intrigued you? RH: I think the car business is the second best
industry, behind being a professional athlete. You get a good locker room-type environment, good camaraderie and the thrill of the sale. It is very motivating. When things are going well, you’re having a lot of fun and making good money. That is a good feeling, and very intriguing to me.
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BW: Motivation is a major ingredient for success, but what are some of the other factors that you credit for your career? RH: Good parents. My parents were also career driven. My dad owned several hotels, so he was a
great role model for me. I want my career to emulate the success he had with his businesses.
BW: What are some of the tools used to help you run such a large business on a day-to-day basis? Some of the tools you couldn’t do without? RH: We have a successful full lead management service — the great tools that help us stay in
constant communication with our customers and reporting that we receive on a daily basis helps us manage our business. A corporate report is e-mailed to us every morning showing traffic patterns, their source, our response time and our closing ratio. Those tools help us better manage our day-to-day business on a global level. BW: Describe your philosophy on customer service, and what are some tools that allow you to achieve your goals in that area? RH: In this day of social media and Yelp, I feel you have to go above and beyond to make
the customer happy; whatever that entails is what we’re going to do. Every team member at every store abides by this philosophy. Our goal is to make sure we maintain a high level of sales and service retention. From a group-wide perspective, it is imperative to have the right communication tools that are measurable, including lead generating and follow up live calls, effective e-mail and targeted direct mail campaigns. BW: Describe a major challenge or something unexpected in your career, and how you overcame it. RH: The recent recession. With almost 600 employees, we were quite large going into the
recession. Unfortunately, our organization experienced some lay-offs and had to let some people go. To compensate, several employees were cross-trained. Expenses had to be monitored, and the business had to be run on a metrics-based system. As long as you run the business by percentages, then the percentage you want can be retained during the good times or bad. This is something you learn and keep with you. BW: What do you do when you feel stalled or need an extra bit of motivation? RH: I keep going, no matter what. I constantly move forward and show up for work every day.
If you’re not moving forward, then you’re moving backwards. Motivating myself to continuously move forward is not an option or choice; it is a way of life. BW: What do you see yourself doing in the next five years? RH: We currently have 16 franchises and do a little over $300 million in sales. In the next
five years, my goal is to be over a billion dollars in sales. By adding several dealerships to our portfolio, we plan on being a major player in the auto business. BW: What advice would you have to someone looking to succeed in this business? RH: I think if you keep your head down, work hard and don’t take “no” for an answer then you
will be very successful in this industry. It is extremely important to be a student of the business with consistent good work ethic and honesty. For more information on Momentum Auto Group’s continued growth and profit-building strategies, call or e-mail me at the address below.
Bill Wittenmyer is a partner of ELEAD1ONE. He can be contacted at 888.431.6928, or by e-mail at bwittenmyer@autosuccessonline.com.
JimmyVee & TravisMiller
sales & training solution
are you getting the value out of now?
Think quick: What are the top five moments of your life? Those are probably pretty easy to recall — high school or college graduation, wedding day, birth of a child, starting your business, etc. Cherished moments like that are few and far between.
Do you struggle with the constant decisions that a business owner faces? Is that where you fall off track? Well, good news — you are not alone. What do we do when decisions pile up in our business? We buckle down and intensely zero in on the moment, pushing aside all unnecessary projects, distractions and thoughts that could paralyze the process. Even if your first few attempts at narrowing your focus fail, force yourself to be present in the moment and keep trying until you find your way through. Be relentless.
Our normal day-to-day life is a bit more ho-hum. Quite often, we spend the precious moments of our days either thinking about the past or worrying for the future, and forget to be present and live in the right now. Taking for granted the here and now can be dangerous, adding distractions and negativity to a life that could be richer and more fulfilling. We often miss opportunities to focus on the present, existing in a dream state of “what was” or “what could be,” while we should be focusing on “what is” and how to make the very best of it.
We believe action is the currency of the rich. Aren’t decision makers usually well compensated? When you can hyper-focus and truly be in the moment, you’ll see it’s at that moment when action occurs. So, it would reason then that being in the moment, where action takes place, is the secret of being rich and fulfilled.
Recognize when you start to go down that path — and then stop it. Instead, refocus your energy with what’s on your plate right now. Don’t stay locked up in the “worry chamber” or the “hope department,” or you’ll lose another day with nothing to show for it. You must seize the present moments of each and every day.
What if you could race through the countless “moments” of your day and achieve the desired results on a regular basis? It’s possible. That is what being “in the moment” is all about. It doesn’t happen overnight, though; it takes practice and patience. It’s a learned behavior that requires dedication to master. So Carpe Diem, friends, Carpe Diem! That means right now. Embrace the precious moments of your life and see your business slowly, but surely, become more ESP — enjoyable, simple and prosperous. It can be done. It’s our promise to you. For a complimentary Traffic Scale Report, which compares the quality of your traffic to other dealerships in your area, visit www.TrafficScale.com and use coupon code AS1308.
Jimmy Vee and Travis Miller are founders of The Rich Dealers Institute and the authors of Gravitational Marketing: The Science of Attracting Customers and Invasion of the Profit Snatchers. They can be contacted at 866.867.9618, or by e-mail at jt@autosuccessonline.com.
PCG strategies dominate the competition PCG Digital Marketing’s strategies are customized to each individual’s needs. Don’t just go with the flow.
Call 855-830-9966 today to see how PCG can customize your individual strategy.
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446 Route 35 South, Building C, Eatontown, NJ 07724 855-830-9966 www.pcgdigitalmarketing.com/standout
podcast interviewee
Here’s an example: Have you ever had a day go by where your mind seems to be working at hyperspeed, but you didn’t get anything done? You’re exhausted mentally, but still didn’t accomplish anything? That may be because you spent your time caught up in what “could have been” or what “may be,” instead of what’s right in front of you.
Apply a fierce focus in your daily business routine, then, when presented with a problem, challenge or opportunity, you can immediately begin making decisions, taking action and correcting your course as needed. You’ll no longer be bothered by the pesky past or the feeble future that used to plague you, taking you out of the moment.
Join the ActivEngage sales team!
is hiring in several regions! • Great Income • Excellent Compensation Call • Full Training Provided 951.291.2234 • Excellent Support or email your resume to: careers@tkevents.com
The largest automotive chat software and web analytic provider is actively seeking regional sales professionals. If you have automotive industry experience and a pre-existing account base, send your resume to jobs@activengage.com to join our growing success. We offer competitive salary, great benefits, and commission plan. Learn more at www.activengage.com/careers.shtml.
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If you have strong retail automotive and / or technology solution provider experience in the dealership industry, then we want you to be part of our tremendous growth.
Candidates must be motivated self-starters with proven sales background. Full-time.
Apply or learn more at: vAuto.com/careers vAuto is an Equal Opportunity Employer.
J&L Marketing is looking for Business Growth Strategists to sell our multi-channel direct marketing products and services. They will prospect for new customers as well as manage leads from J&L Marketing’s growing national accounts. This is a full-time B2B outside sales position. www.jandlmarketing.com kkasun@jandlmarketing.com
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Success Story
Brandon Honda Adds $4 Million to Bottom Line with New Loyalty Marketing Strategy
Increasing gross profits and market share is not easy, especially in a market like Tampa where 10 Honda dealerships compete for the same customers. Yet, in just 20 months, Owner and General Manager, John Marazzi and his team have transformed Brandon Honda, a store that was comfortably in “the middle of the pack,” into the number one Honda store on the entire west coast of Florida for both new car volume and certified pre-owned sales.
Perhaps even more impressive is that their significant increase in sales volume is accompanied by record-breaking profitability in both fixed and variable operations. Over the last 20 months service revenue has doubled, certified pre-owned sales have doubled, and sales from the service lane have doubled. On top of all of this, their new Quality Assurance Department, a division whose sole responsibility is making sure customers enjoy “The Brandon Honda Experience” is increasing CSI while consistently delivering 120 vehicles a month with average grosses that are 30% higher than their regular showroom sales. All together, the dealership’s net profits are up 200% and continue to climb.
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Success Story Ä CONTINUED FROM THE COVER
Obviously, acquiring new customers is an essential part of Brandon Honda’s transformation. However, one of the biggest drivers of Brandon Honda’s ongoing success is the new marketing strategy that is allowing them to service and sell more cars to the customers they already have. Before implementing their new strategy, Brandon Honda, like many dealerships, was using an equity-mining tool to engage their in-equity customers. This was selling a few cars each month but the results were very inconsistent. The success or failure of the tool each month was ultimately dependent on the consistency and effort of their sales team. As a result, opportunities were being missed, customers were receiving inconsistent messages and the dealership ended every month knowing they had left money on the table. To solve these problems, John Marazzi cancelled his equity mining tool, that was largely dependent on the consistency of his sales team and implemented a loyalty marketing strategy that automatically identifies in-market customers and markets to these customers on behalf of his sales team via email, mail, phone and in the service lane every month for as long as the customer owns their vehicle. “We saw what this program was doing at other dealerships and knew it had the potential to make a big impact on
our business”, says John Marazzi. “This strategy allows us to upgrade customers into newer vehicles before they begin shopping. As a result, we are selling more cars and making more money. Our customers love it because they get a better car for a better payment and our salesmen love it because grosses are higher and approximately 70% of these deals close. It’s as close as it gets to a sure thing.”
customer is scheduled to arrive along with a copy of the most recent offer that was sent to each customer.
HERE’S HOW BRANDON HONDA’S NEW LOYALTY MARKETING STRATEGY WORKS
Customers that choose not to upgrade during their visit continue to receive personal vehicle statements that include all the vehicles they can upgrade into for a lower payment. These statements are delivered every month via email and mail for as long as they own their vehicle.
Every month, Brandon Honda’s loyalty marketing company identifies in-market shoppers who have equity or who can upgrade into a better car for a better payment and creates a personal website for every qualifying customer. These personal websites allow customers to see the calculated value of the vehicle they are currently driving as well as every vehicle in the Brandon Honda inventory that they can upgrade into with little or no money out of pocket. Next, all eligible customers are notified via email, mail, phone and in the service lane. Customers receive a personalized message that invites them to upgrade to a newer Honda that offers more and costs less to drive. Each morning, the Brandon Honda management team receives a list of every qualifying customer who is scheduled to visit the dealership that day. This list includes the time each
Print Out
Mobile
Personal Website
When the customer visits the dealership they are shown a vehicle upgrade analysis on an iPad or printout that reviews all of the advantages of upgrading into a newer vehicle along with a personalized, side-by-side comparison that includes a cost-of-driving analysis.
Brandon Honda uses this program to create a bridge between their service department and their sales department. Although the program routinely delivers 35 to 40 deals a month via their showroom, the majority of the program’s sales are generated in the service lane. In both cases, the average gross profit on these deals is $700 to $800 higher than their other showroom sales. “Ironically, the key to our success was taking the selling out of the service lane,” says Marazzi. “Instead of sticking a salesperson in the service drive, we created a Quality Assurance Manager position that can assess each situation and make sure we are consistently looking out for the best interest of each customer. This role solved two problems. First, it put our customers at ease because they no longer had a person trying to sell them in the service drive. Second, it removed the tension between our service department and our sales department. When a service vehicle is taken in on trade, the salesmen gets a commission, the service writer gets a bird dog and the service manager gets a small bonus. Everybody wins.” “What I like most about this strategy is that the consistency and quality of our communications are not dependent upon the efforts of our sales team,” says Grant Hocking, the Quality Assurance Manager responsible for administering the Brandon Honda Loyalty Program. “The customer sees the picture and contact information of the salesperson when they receive their emails
Brandon Honda RESULTS USING LOYALTY MARKETING STRATEGY
$800
CLOSING RATE on loyalty deals
and direct mail pieces but the salesman doesn’t have to do the work. Also, it should be noted that the system we use gives us a completely integrated solution. All the offers the customer receives in their email, mailbox, and personal website as well as the tools the sales team uses to make their follow-up calls and to engage customers in the dealership, whether on an iPad in the showroom or the printed side-by-side comparisons in the service lane, are all generated by the same platform. This keeps everyone in the dealership in sync and delivers consistent information to the customer.” Brandon Honda has integrated their loyalty marketing strategy into a “one dealership” culture that provides one of the most compelling value propositions in the area. In addition to the upgrade analysis mentioned above, every customer receives a $1,000 price protection guarantee, a lifetime warranty on all new vehicles, a 10 year / 100,000 mile warranty on all preowned vehicles and a copy of “The Brandon Honda Promise,” which includes a number of high value extras each customer receives when they buy from Brandon Honda. “Customers aren’t afraid of buying a car. They are just afraid of making a mistake,” says Marazzi. “To overcome this fear, we built our processes around making it easy for our customers to buy a car. We dominate digital
showroom
70%
loyalty sales
higher
GROSS PROFIT per vehicle sold
“Amazing stories happen every day with this program” in our market and we put a lot of effort into educating customers about the advantages of doing business with Brandon Honda. We don’t just sell Hondas, we sell an experience and this program is a big part of that.” When asked to give specific examples of how customers are responding to their loyalty marketing strategy, both Marazzi and Hocking gave enthusiastic responses. “Amazing stories happen every day with this program,” says Hocking.“ “Customers respond very well to the way the upgrade opportunity is presented and the way we can compare the ownership costs of their current vehicle to any vehicle in our inventory directly from our iPads. For example, I was speaking to a lady who came in to service her Honda Accord. After showing her how she could save money by upgrading into a newer vehicle, she began sharing with me that her daughter also needed a car. Long story short, we sold 3 cars to the same family on the same day. The mother upgraded into a new Accord, the
31% SALES VOLUME
generated by loyalty program
daughter bought a Civic and the father traded his Hyundai for a new Accord.” “When dealers first hear about the success Brandon Honda and other dealerships are having with this strategy they have a hard time believing the results are real,” says Scott Davis, President of DrivingLoyalty. com, the company that Brandon Honda uses for its loyalty marketing strategy. “Some wonder if the numbers are inflated or argue that these stores may have sold these cars without us. However, the results speak for themselves. When a dealer, like John Marazzi replaces their equity mining tool with a loyalty marketing strategy and puts a person like Grant Hocking in place to run it, great things happen.” “This program has had a positive impact on virtually every department in our dealership,” says Marazzi. “In addition to selling more new vehicles, this program has allowed us to acquire more high quality, low mileage, oneowner vehicles. Paying less for these vehicles has increased our used car grosses and reconditioning these vehicles has increased service revenue. Altogether, this produces nearly $400,000 every month. If our success with this program continues, and we expect it will, this will contribute over four million dollars a year to our business.”
Success Story
Success Story
Brandon Honda
“Customers aren’t afraid of buying a car. They are just afraid of making a mistake. To overcome this fear, we built our processes around making it easy for our customers to buy a car.” JOHN MARAZZI OWNER BRANDON HONDA
IN A NUTSHELL
Brandon Honda Adds $4 Million to Bottom Line with New Loyalty Marketing Strategy
• Increased market share by aligning the efforts of sales and service to increase the number of customers that engage and close within 24 hours. • Increased sales gross by $800 a copy by implementing a loyalty marketing strategy that upgrades customers before they begin. • Increased used car profits by increasing the number of 2-3 year-old trade-ins and lowering the cost of CPO vehicles and locally-owned, low mileage inventory. • Increased the consistency and performance of sales team by implementing a loyalty marketing system that automatically delivers personalized upgrade quotes via direct mail and email on behalf of each individual sales person and automatically reassigns “orphan owners” if a sales person is terminated or leaves the dealership.
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