2012
MARCH
Kelley Automotive Group has always been a market leader, and they’ve sharpened their competitive edge with Provision™. vAuto’s new inventory management system tells them what used vehicles are in high demand, and where exactly to find them. In just one month, Provision-powered recommendations have helped Tom’s used vehicle inventory generate more than a 20% increase in vehicle search results — and nearly three times as much online shopper activity than competing dealers in his market.
Watch the video at
vAuto.com/provision
Call for a demo
888-365-1032
Automated Virtual Assistant
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Leads That Engage With AVA Close At Over
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THE #1 SALES-IMPROVEMENT MAGAZINE FOR THE AUTOMOTIVE PROFESSIONAL
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.
leadership solution
sales & training solution don’t reinvent the wheel, just the vehicle that drives it CliffBanks
22 44
start-up sites rewrite editorial rules
32
five simple things you can do right now to sell more vehicles
DavidMetter
34
passive vs active lead scoring
TracyMyers
36
celebrity branding strategy no. 3:
Generate Loads of Publicity
ToddSmith
38
five easy ways to increase your website conversion this month
JimmyVee & TravisMiller
40
how to attract buyers who want to do business with you – not because of inventory or price
RobertWiesman
42
salesman goes online to build his own brand
Susie Horne, Account Manager John Warner, Sales-Improvement Strategist shorne@autosuccessonline.com jwarner@autosuccessonline.com
keeping pace with customers’ online research patterns
JoshPereira
give yourself a chance for crm success
DavidGoodison
three must-have gadgets for the automotive professional
Brian Ankney, Account Manager super6@autosuccessonline.com
marketing solution
Sending a Consistent message:
BrianPasch
10 16 20
is it time to unlock your website filters
Dave Davis, Editor & Creative Strategist ddavis@autosuccessonline.com
google page one
AJLeBlanc
looking for an seo provider? think digital marketing
08
SeanV.Bradley
Thomas Williams, VP & Creative Director design@autosuccessonline.com
2300 Hurstbourne Village Dr, Suite 1200 Louisville, KY 40299 | p 877.818.6620 / f 502.588.3170 | AutoSuccessOnline.com/AutoSuccessPodcast.com | info@autosuccessonline.com t
Susan Givens, Publisher sgivens1@autosuccessonline.com
24 26 28
38
MarkTewart
DalePollak
Communication Can be Your Greatest Asset or Your Greatest Fault
ChuckPatton
JesseBiter
What’s the Difference?
three keys to more successful proxy bids for vehicle acquisitions
34
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PogoParr
the convalescence of portrayals
18 30 MarshBuice
why should i buy from you? RussellGrant
22
feature solution An Interview with BarryMoore
ChuckPatton
marketing solution
sending a consistent
message:
Communication Can be Your Greatest Asset or Your Greatest Fault
Let me explain how a good thing can go bad. Every customer starts with a preconceived notion of what they feel your dealership provides. Fair or not fair, you are up against the stereotype that you are not convenient, you are too expensive and that you are going to sell your customers something they don’t need. Here are the areas in which some of the more common communication mistakes occur and what these lead your customers to believe: • You have conflicting offers — The customer gets one price via e-mail but another in your direct mail? “They are totally disorganized.” • Your offers are outdated — Expired coupons show you fail to follow up. “They don’t stay of top of things.” • Nothing matches — You inform your customers of something important in one communication but leave it out altogether on others. “Is this a legit offer, or are they ripping me off?” • You only scream price — You are forcing yourself into a price war. “They are trying the bait and switch on me.” So, how do I build a plan that sells the right message? Here are some things to consider when building a service marketing strategy that allows you to utilize the power of communication to work for you instead of against you — a successful strategy to drive in more traffic.
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1. Common message / common offers: Have a two-part written plan. Cover two key areas — value and price — and use these as required content to be sent across each communication vehicle. 2. Retrieve vs. receive: Separate communications by the efforts you make that retrieve a customer (direct mail, e-mail, some Web strategies, reminders) vs. communications that receive customers (online schedules, text confirmations, phone call confirmations). Motivating a client to come in is different than saying “hello” when you greet them. 3. Give your service department a stage, not one button: Dealers are realizing the value of having a stronger service presence on their Websites — or, they are creating separate service Websites altogether. More customer traffic is coming in because of service than the average dealership is given credit for. 4. Create a communications committee: Your service director / manager, IT director and any communications providers should be on the same page at all times with a consistent message. 5. Put your “eggs” in one basket, but know your basket: More companies are providing multiple platforms under one roof, which can integrate your communications, but be sure to inspect the basket for holes. (How good is your marketing company’s service? Are any of their eggs rotten? Perhaps one of their programs doesn’t work or doesn’t interact with the others). 6. One platform should talk to the other: Suppressing communications amongst each other impresses your customers and brings down your costs. For example, if you are doing reminder mailers, take certain customers out of your regular mailers. Eliminate redundancies. 7. Keep your eye on your ROI: So much has changed, but the emphasis on a strong return on your investment should not. Just trying to understand new technologies alone can steal your focus from whether or not your investment is driving up your gross sale, the number of ROs or your gross profit. 8. Let customer response drive: Certain communications work better for specific unique customers you have in your database. Let your response rates drive what communications you emphasize, and do not base your strategy on a theoretical strategy that looks good on paper but is heavily driven by a desire to save money.
A common plan, common message, and common offer will produce an uncommon result. That result is a stronger brand and reputation along with a strong increase in your ability to build traffic. Increase the number of ROs you write per month by 15 percent, then multiply that by your average RO. Then, multiply that out for all 12 months of the year. What results could you get? In the end, driving up your business will consistently outperform a strategy that would lower your cost. Now, exactly how do you implement all of your communications to effectively achieve all of this? That is another story for another day.
Chuck Patton is the founder and CEO of Traffic Builders, Inc. He can be contacted at 866.859.8520, or by e-mail at patton@autosuccessonline.com.
podcast interviewee
Technology has opened up a whole new world of communications. There are so many new ways to communicate the value of what you provide to your customers. Everything can be easily laid out for everyone — everywhere — but is that a good thing for your dealership? If you have a good marketing plan and the time to execute your messages, you will have a greater reach than you have ever had in the history of your dealership. If you don’t have a plan, as well as someone accountable for keeping your messages consistent, your marketing could turn into a disaster.
BrianPasch
marketing solution
is it time to unlock your website filters DUads-autoSuccess2012-02.pdf
As I travel around the country helping dealers create effective digital marketing strategies, it is not uncommon that I am pulled aside by sales professionals whispering to me: “Stop the Insanity!” What is the insanity they speak of? They are referring to their inability to use Websites like Linkedin, Facebook and Twitter to communicate with consumers in their market while at the dealership. It is time to call a truce. Social media is here to stay. Dealers and general managers who have decided to limit their employees’ access to these sites are wasting time, money and — most importantly — missing a unique sales opportunity. The opportunity to extend a dealership’s brand on social media is well documented, so why not tap into this powerful force of nature? When dealers block social media sites, their employees use their smartphones to leverage these communication channels. Savvy sales professionals know that they can network effectively using the positive experiences of their customers, so why is management so fearful? Change has always scared “corporate” minds and fueled the “passion” of entrepreneurs. How do you handle change? History is filled with examples of executives who predicted that the Internet was a fad. Today, I am encouraging the automotive community to empower their employees to connect with customers wherever they choose to engage. Dealers need to stop projecting their personal prejudices on their employees. When a dealer principal decides not engage on Facebook, that is their choice. Their personal choice however, should not result in a company policy banning Facebook. LinkedIn
LinkedIn allows progressive sales professionals to network with their customers, which, in turn, connects them with the friends of their customers. Dealers need to train their employees how to leverage LinkedIn to connect with people of influence in their markets. LinkedIn is Facebook for the business community. Upgraded LinkedIn accounts that include “InMail” can allow your best sales professionals
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to connect with the leaders in your marketplace. In the old days, dealers would attend country club events and fundraisers to pass their cards to local influencers. Today, this can be done in part over the Internet, so why limit the upside of your dealership? Facebook
Facebook continues to evolve for both personal accounts and business accounts. Have you seen the Super Bowl commercials? How about the commercials during the Grammys? When major brands are encouraging their customers to connect with them on Facebook, do you see how social media has gone mainstream? Facebook engagement takes time and effort, but that is the nature of sales and relationship building. Is Facebook engagement expensive? No. What you can accomplish on Facebook is a fraction of the out of pocket expenses that would be required to achieve the equivalent marketing impact. Dealers who allow access will see that their sales staff will post photos of their customers taking delivery of their car with big smiles on their faces. Customer testimonial videos will speak louder than any advertisement running on cable TV. Facebook, simply put, will leverage the influence and reach of your customers. Twitter
Gary Vanderchuk was a recent speaker at the DrivingSales Executive Summit, and he shared how he built his multi-million dollar business using social media and especially Twitter search. He was a pioneer then, but today car dealers can benefit from his blueprint for success. Once again, it may seem odd for a dealer principal to think that communicating to consumers using 140 character messages is effective. The thousands of Twitter success stories give ample case evidence that Twitter is another viable and effective channel when used properly. Dealers can search for local consumers asking questions about cars, service, and advice and be the first to answer. Dealers must understand that this simple act of kindness can go a long way to building lasting relationships. Educate Your Team
Irrational fear can be the result of misinformation. I encourage all dealers to rethink their Internet blocking policies. I encourage dealers to invest in training that shows your entire organization how to leverage social media channels to communicate with consumers in their local markets. The longer dealers keep their staff chained and blocked from social media, the stronger their competitors will grow. Blocking social media is the equivalent of locking the showroom door for a couple of hours a day because you “think” consumers should shop from 2 to 5 p.m. in the afternoon. Stop the insanity.
Brian Pasch, is CEO of PCG Digital Marketing and the founder of the Automotive Internship Program. He can be contacted at 866.849.1560, or by e-mail at bpasch@autosuccessonline.com.
8:
Haley Buick GMC, located in Richmond, Virginia, has seen major expansion in the past year — and has achieved major success — through an almost evangelistic approach to marketing and positive team building. The store is one of six rooftops that make up Haley Automotive Group, spanning a range of 180 miles and eight brands throughout the state. The group was awarded a Buick franchise at the start of 2011, quickly becoming a brand leader in their area and No. 4 in the state. We recently spoke with Barry Moore, GM of Haley Buick GMC, to learn how he and his team have reached such heights, how they’re structured and how they are preparing for the future.
AutoSuccess: Tell us about your dealership and your role there. Barry Moore: Our motto is “Haley has it!”
For 40 years, it’s been our mission to be the best at meeting the automotive needs of our patrons through the positive involvement of our people, products and processes to create satisfied lifetime customers. A committed and tenured staff, honest service and continued thirst to gain and share knowledge is our “it” factor. I personally grew up in New Jersey, graduating from the Peddie School then on to Seton Hall University with a political science degree before diving into the car industry in 1983. I moved up through sales, F&I, sales manager and GSM between a stint at Merrill Lynch as a stock broker. I’ve had some great mentors along the way who have influenced me; I try to pay it forward and encourage others to also think about the impressions they are leaving behind on a daily basis. Now, as a GM, my job is to work in the future. Our managers, salespeople, service writers and technicians work in the “now,” and while I’m always there to support them; my principle role is to look down the road and prepare the dealership for what is coming. The GMs of our dealer group are minority partners. This empowers us to think and feel as a dealer and general manager — we have the opportunity to walk in the store every day like an owner. We are free to choose our own systems and partners and while the owners hold us accountable, we have the freedom to make choices to succeed, to take chances and to do what we feel is best to grow the business. We are given the ability to really get the most out of the franchise and gain market share. AS: You say you believe in mentorship. Tell us about your mentors. BM: For example, 30 years ago a bar owner I
worked for at the Jersey Shore told me to always respect and treat the customers right because “without these people, this bar doesn’t run.” I still remember those words. Specific to today, I decided to make the car business my career with the help of Doug Pridgen, President of Haley Automotive, and Dave Trebour, our dealer principal. Both have urged me to grow as a person and a leader. Doug and Dave allow each store to run independently, teach us to be fair to our teams and to be very open-minded to change. If you take care of your employees, they will take care of the customers. Here in Virginia, we are also lucky to have Don Hall, President of the Virginia Auto Dealers Association (VADA), and his team. They have helped me in my career through their leadership and training opportunities. I constantly stay educated and motivated through books, workshops and seminars so that I can pass on great information and techniques. We read Sell to Survive by Grant Cardone as training for the Haley team. AS: How do you prefer to handle your factory and vendor partners? BM: I look at General Motors as our partner; our
successes are tied together. We see our vendors the same way. At a high level, I research and identify our future needs then seek allies who can not only satisfy those needs, but also help me find even more opportunities within our business and collaborate on best-in-class solutions. We choose who we work
with as the foundation of building a successful dealership. On the street level, we don’t nickel and dime and beat up our radio and television partners for example. They’re all local people. They drive cars. Their employees drive cars. Their families drive cars. I would like to have a rapport with them that makes them comfortable buying and servicing their vehicles with us. We build relationships, not deals. AS: How has CRM affected Haley Auto Group? BM: I’m glad you asked that question as we talk about vendors. We saw the need for CRM about
12 years ago — the days of log books and green markers were over. With paper, whoever had the paper had your business and so we had to take the paper trail to a secure digital database. We chose a CRM provider that we stayed with for the next 10 years, but they just weren’t progressing as the technology propelled forward; from desktops to laptops to iPads. So, a few years ago, we analyzed our needs and took to the streets in search of a change. I had known Sean Stapleton for some time when he joined the VinSolutions team and so I took a look at their suite of products. I immediately recognized the innovation of the platform as doing everything I needed it to do and more. If I knew how to design it, being in the car business, this is what I would have designed. It was the first system that I thought, “Wow — this is a car system.” More than just a CRM, it consolidates all our data into one login and tracks every detail, from live traffic visits to my Website completely through the sales and service funnel with full transparency and integration with my DMS. I now have more than just information, I have customer DNA that allows me to train my sales staff on how to satisfy buyers by helping them make educated purchasing decisions.
Having a CRM is critical and is, what I call, the heartbeat of any dealership. If you’re working Internet leads for five to six months, you may go through one or two employees before the person ever buys a car. So, if you don’t have constant contact with the customer, then you’re not going to do a good job. We spend all this money to get the lead, and then we shame ourselves by not following up. VinSolutions’ automatic custom processes eliminate lost or forgotten leads. The CRM system we have through VinSolutions works for my business and allows us to succeed because it stays ahead of changing technology. We can send out a direct mail campaign - right through the system for instance, and track the real return on investment. It’s easy, follows a logical process, allows my team to work smart and holds us all accountable. We don’t have to check in with our team multiple times a day to see what they are doing anymore. I hit one button and I can see everything at the dealership, hit another button and I am looking at live shopping traffic on my Website with tools that help me convert the online traffic in real-time, with access from my office, my laptop or even my handheld through their mobile platform. If I were sick at home or building business out on the streets, I would be able to see everything that is going on at the dealership. Moreover, VinSolutions believes in listening to their dealers and collaborating ideas for the future. It’s a truly synergistic partnership. AS: Tell us about your Pit Stop program. BM: Our service department stays open 13 hours a day. We’re always open for our customers —
that’s our goal, every day.
Our free Pit Stop program started about four years ago, currently seeing approximately 120 customers each month. We will put air in your tires, top off your oil or windshield wiper fluid on any make or model whether it was purchased from Haley or not. It shows the community that we are actually here to help and elevates the perception of the automotive industry as a whole. It’s cool, old-fashion service, and I think soon we’ll see 200 people a month come in for Pit Stops. AS: You say you aren’t a traditional car guy. How does your marketing strategy differ from other stores? BM: Philanthropy is a big part of our marketing approach. Basically, I want my wife and
daughter to not be embarrassed by the marketing I do. Too often dealerships rely on gimmicks. Price is not the only thing that matters in today’s market. If you base your business on price alone, you may fail. Our marketing is about who we are and the vehicles we sell. We have aligned ourselves with a strong community network and live it daily, realizing that people looking for our brand will feel good about us and visit us. We have a television program that airs locally on Fridays and Sundays. We started out by promoting our products, but soon realized that the shelf life is limited to talking about just cars, so we took it to the streets – out to the community and to the people. We now invite non-profits that might have an upcoming event to come on and talk about it. We also invite business owners who have bought vehicles from us to join the program for promotion. A painter might not be able to afford a TV spot, for instance, so we help him; the philosophy is the more business you do, the more vans you’ll buy from us, the more you will spread the word. It’s a good partnership. We also support many non-profits both financially and through service. Mothers Against Drunk Driving, Team Chesterfield participant at International Children’s Games, Fetch-a-Cure, the Lonesome Dove Equestrian Association, the Alzheimer’s Association and the James Farrior Foundation, a charity started by the local Pittsburg Steelers player - are just a few. Haley Auto Group allows our 400 employees to take a half-day to volunteer at a non-profit organization. At Haley Buick, we do more than beautify the roads of Richmond.
RussellGrant
leadership solution
don’t reinvent the wheel, just the vehicle that drives it
No matter how much things change in our industry — how many new models are launched, how many innovative technologies are introduced, how many revolutionary products are unleashed — dealerships are still built on the same chassis, or at least they should be: customer satisfaction.
“A satisfied customer is the best business strategy of all.” – Michael LeBoeuf, business author, professor and consultant But What About …
Search engine optimization? Lead generation? CRM? Pay per click? Social media? Inventory management? Online reputation? Every day, I hear dealers bandying these words about, wrestling with issues like what new products to bring on board, how many resources to devote to them and which ones deserve prioritization. Then, once they’ve made those difficult decisions, dealers are left with an even more daunting task: figuring out how to integrate their ever-expanding battery of online tools, software and systems into one efficient and streamlined operation.
But it has to be done. We know that. Today it’s Internet, Internet, Internet. Customers aren’t coming out to dealerships and kicking tires; they’re clicking on them from the comfort of their own homes. Ten years ago, customers visited 6.7 dealerships before they bought a vehicle; now, they visit 2.1 dealerships. And 85 percent of them start shopping for an automobile online. So, if a dealership doesn’t have a heavy Web presence, it better get one. Not only that, but it would pay to monitor what customers are saying about the sales and service departments on sites like Yelp.com, Edmunds.com and DealerRater.com. Ever hear the old saying, “There’s no such thing as bad press”? There’s a new kind of press – online reviews – and businesses that don’t rate well, don’t fare well. “It is not the employer who pays the wages — he only handles the money. It is the customer who pays the wages.” – Henry Ford, Founder of Ford Motor Company The Wheel: Customer Service
Everyone is in a frenzy to get their hands on the next latest and greatest “thing,” whatever it is. But you already have the most valuable resource you could ever hope for — your previous customers. Sure, you can purchase services, consult specialists and increase your online presence, but in the end, you can’t control the Internet. You can, however, control your owner base. I think of this as a two-step process: remember and remind. Step one: A dealership needs to remember that while how it does business may have changed over the years — and here I’m going to show my age — from books to software and cash registers to computers — the reason for its success remains the same: good old-fashioned customer service. The dealer needs to remember that promoting and rewarding excellence in this area is one investment that will never suffer from obsolescence.
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The Vehicle: Strategic Communications
Step two: A dealership must remind its owner base why they chose to purchase their car from that business in the first place — exceptional customer service. But it’s all about timing. The dealer needs to do this before they risk losing a previous customer. They need to do it before that customer hits the Internet “to see what kind of deals are out there,” but they can’t do so before the customer is ready to “hear” the message. Otherwise it’s not an effective use of resources. It’s a fine line, and it’s why many dealerships turn to companies that specialize in multi-channel communications for help developing proactive owner marketing strategies. Either way, campaigns should not be a one-time deal or created with an “only-when-we-need-it” approach. They need to be strategic and systematic in order to be effective. Even if a campaign doesn’t draw as much of a response as a dealership might have anticipated or hoped, there is a lot of valuable information to be gained. That’s when a dealership needs to ask some tough questions. What are some of the reasons why the communication might not have performed as expected? It provides the opportunity to analyze the results, refine the strategy, revise the communication, reassess the targeted customers and try again. If it was a great success, I’d recommend the exact same course of action, so the campaign can be even better next time. Put It in Drive
The products, software and systems a dealer uses to build the vehicle that drives its business evolve over time. But the wheel remains the same. Or at least it should, so long as it’s great customer service. Because if it is, I’m ready to bet that ride will get the dealership exactly where it wants to go.
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.
The Choice.
VS You can choose a bold, new approach with consistently profitable results.
Or… you can continue using ordinary marketing with frustrating, inconsistent results.
Only A Bold, New Approach Can Rapidly Increase Sales Without Cutting Prices Issue
Rich Dealers
Ordinary Marketing
Traffic
Constant flow of internet leads, phone calls and floor traffic. More traffic in a weekend than most dealers get all month.
Dribs and drabs. Starts and stops. Some busy spurts, a lot of waiting around for customers to show up.
Price Sensitivity
Customers want a car. They don’t care what the price is. They are seeking you out and looking for your help. They gladly pay asking price.
It seems like every customer is a chiseler. Customers think they know your cost, and don’t want to pay a dollar over.
Scalability
Feels like you’re just scratching the surface. There’s so much opportunity because potential customer base is 34 times larger. More sales and more profit are available at your discretion.
Feels like you’re at the limit. When you’re succeeding, you’re getting every last sale there is to get. Growth is a problem because there are no more customers to get, without completely giving up your profit.
Ease Of Transaction
Buyers are eager to do business and actually want to buy today.
Like pulling teeth. Fighting for every deal, haggling over every detail.
Reputation
Everyone in town knows you and talks about you. You’re considered a giver, not a taker. A helper, not a huckster.
You’re lumped in with every other dealer. You’re generally unknown, but untrusted anyway.
Time Commitment
The hard work and difficult thinking is done for you. In just a couple of hours each month you can implement a proven system, and be confident you're doing the right thing. Overall an extremely valuable use of time.
Can take many frustrating hours every month. Because the path is very unclear you have a constant nagging sense of uncertainty with everything you try. You invest countless hours and get the same, lackluster results.
Frustration Level
It’s simple because you’re connected with other dealers who have already succeeded and are willing to share how they did it.
It drives you crazy. You feel like you’re all alone and trying to figure things out for the first time.
Rich Dealers offers a clear plan for you to increase traffic and sell more cars without decreasing prices. You’ll sell more cars and make more profit than you ever thought possible.
Does all this sound too good to be true? Don’t take our word for it. Try it yourself. With Rich Dealers, there’s never a commitment, so there’s no risk. Contracts aren’t necessary because our members stay with us for years… because it works.
Please don’t delay. Our bold, unique approach can only allow for one dealer per market, so space is truly limited.
Find out if your market is available and learn more about how Rich Dealers can rapidly transform your business. The first step is our complimentary Market Rater Analysis. Call today to schedule your private tour.
Call 407-275-8667 or visit www.MarketRater.com
JesseBiter
marketing solution
looking for an seo provider?
Think Digital Marketing
Target Your Customers
and customers are discussing, it’s important they turn those vital words and discussion topics into great content for your site. Some SEO providers go as far as hiring contractors to write additional, keyword-rich content for each page of a dealership’s Website. The more targeted the content on the page, the more likely they are to be picked up and optimized. Strong content can come from anywhere and is increasingly being used in such digital media such as blog posts, YouTube videos and even testimonials and links to rating sites. A good SEO partner is more than just a search provider; they become your digital media powerhouse — they know which keywords to use and how to use them on each page for maximum success. If you’re contemplating SEO tactics in-house, there are a variety of platforms currently on the market that can help monitor conversations across social media channels and determine keywords. Cultivate Inbound Links
While SEO overall has changed, one thing has remained constant: Good links drive search rankings. Links can come from anywhere, but again, are most beneficial when they’re driven by exceptional content. For instance, guest blogs on other sites can drive traffic, links to vehicle walk-arounds on YouTube can encourage traffic, and SEO experts agree that even links in Twitter are now used by Google and Bing to determine search result rankings. But it’s not just inbound links anymore; it’s also who writes, tweets and “likes” those links. Beyond even the content, the experts say that Google now looks to who retweets the content and how influential they are to their group of followers. Demand ROI
Before getting started, ensure you or the provider knows where your customers live and breathe. So much of SEO centers on people communicating back with your brand; Twitter, Facebook, YouTube and others all can impact SEO significantly. The more your customers interact with your dealership online, the higher the ranking on search engine pages. With that in mind, focus on where a typical customer spends their time. Are they talking about the great service they received from your store on Twitter, sharing pictures of their new vehicle from your dealership on Facebook, rating your sales staff on Yelp? Know where your customers are communicating and ensure you are there to encourage additional discussions.
Are the ROI waters still murky around SEO? Yes, but a good provider should be able to tie certain benchmarks to their campaign. For instance, an SEO provider can create landing pages and show you the amount of visitors and bounces to each of these pages. A good SEO partner will have reporting features and be able to tell you which content is bringing the most visitors to your Website. The SEO world has become more complex than just measuring how high up a company is on the page one results; today’s marketers should also be evaluated on the strength of their content, access to links and their monitoring of social media conversations surrounding your brand.
Create Great Content
Jesse Biter is co-founder of Dealers United. He can be contacted at 866.239.4049, or by e-mail at jbiter@autosuccessonline.com.
Once your provider knows what your prospects
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Is SEO still important? The answer is a resounding “yes.” Has it changed significantly? Absolutely. As you move forward with SEO plans this year, ensure you or your SEO provider know your audience, encourage conversations surrounding your brand, share legitimate links wherever possible and form benchmarks for ROI.
podcast interviewee
The divide between search engine optimization (SEO) and social media (SM) has officially been closed. Today’s marketers need to use both SEO and SM interchangeably to improve page rankings and track and respond to social media conversations surrounding a brand. Recently, Google announced that the relevancy of a company’s tweets on Twitter will affect its search results. This isn’t a new development; for the last few years Twitter conversations, Facebook links and YouTube videos and channels have all affected SEO relevancy and how high a company is listed on a Google search page. The current landscape has brought about a need for a new type of SEO company, one that also acts as a digital marketer. Whether you’re currently looking for an SEO provider who can also act as a digital marketer, or doing the work in-house, here are a few things to keep in mind:
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#414
MarshBuice
leadership solution
the convalescence
of portrayals
Looking through the lenses of a customer, who is more highly esteemed? • The teen at a fast-food restaurant or the waiter at a fine-dining establishment? • The city bus driver or a limo driver? • A security guard or a detective? • The blue smock-clad woman at Wal-Mart or the snooty one at Nordstrom? • Jennifer Hudson pre-American Idol vs. post Idol, Academy Award winner Jennifer Hudson.
Years ago, a social experiment was performed where they asked world-renowned violinist Joshua Bell to put on blue jeans and a baseball cap and play a concert to commuters in a subway station during rush hour. Mr. Bell, who sells out venues worldwide, whipped out his 3.5 million dollar Stradivarius Violin and played a 45-minute concert. More than 1,000 people whisked by, barely taking notice — just another street performer begging for money, they thought. When the concert was over and
with no applause, Mr. Bell quietly packed up and collected the $32 in tips.
This phenomenon is known as “value attribution,” which means people attribute a value based on their perceptions. Based on the commuters’ perceptions of how Mr. Bell dressed and the venue in which he was playing, he was discounted as nothing more than a pretty good street performer; but if the experiment would’ve added the NBC Today Show cast and crew, the dynamics would have been completely different. This same phenomenon occurs on the black top everyday with every customer you encounter. In the blink of an eye, customers attribute a value based on where they are, how you dress and the manner in which you carry yourself — all before you strum one single note. (Wonder why manufacturers require dealerships to look a certain way?) If you refuse to be classified as “just another salesperson,” then stop acting and dressing like one. If you want customers to treat you differently, then you must alter their perceived value of you. Leave the ivories to the elephants. If your once-white shirt now matches your coffee stained teeth, go buy some new shirts. You should have at least two weeks worth of dress shirts. You don’t have to spend your mortgage at Brooks Brothers; there are plenty of outlet stores that sell discounted dress shirts. Your collar should fit snuggly, not choke you out. Tip: If you have to get a running start to button that top button, it’s time for a new corps of shirts. If you have to keep your arms bent by your side at all times, your shirtsleeves are too short. Bugs don’t work here. Leave the Looney Toons, Santa and Tabasco ties to wear on career day at your children’s school. Let your sense of humor come out of your mouth, not around your neck — don’t let your tie be a noose choking the life out of your commission. I got five on it. Bring your lunch once a week and instead appropriate $5 to get your dress shoes polished. Buy a black, brown and cordovan (maroon) pair of shoes and rotate them — buy a new belt every time you buy a new pair of shoes. If you don’t have shoetrees, ball up Sunday’s paper and stuff into the front of the shoe to maintain its integrity. Take the plunge and buy the $100 pair of dress shoes — it’s cheaper in the long run because you can get them re-soled, buying yourself time to add more dress shoes to you feet-fleet. Shoes are one of the first things a person notices. Freddy Krueger and the dragon slayer. Unless you are auditioning for the role of Freddy, clip and clean your nails. Years ago, Certs mints did a series of commercials depicting a person walking up and having a conversation with another person. Once the stench reached the nostrils, the person fainted and fell backwards, slain by bad breath. Protect your commission at all times; pop a breath protector in your mouth.
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.
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podcast interviewee
Cowboys don’t rodeo in tuxedos, nor do trapeze artists perform in dresses — they look the part of their performance. To a customer, the cost of something is a commodity; the experience they receive is what determines your commission. Five-star restaurants and hotels live and die by a customer’s experience. Although it can be found at your local grocer, Starbucks has done a masterful job creating a cultlike following by marketing a perceived better quality coffee served up by superior service, housed in a member’s-only atmosphere. Experience makes the difference; you convey how you wish to be portrayed. I’ll see you next time on the black top.
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SeanV.Bradley
marketing solution
three must-have gadgets for the automotive professional
DUads-autoSuccess2012-02.pdf
I am always on the lookout for technology that will enable my clients to be more efficient and effective in selling to and servicing their customers. I am excited to share with you three of my current favorites, which will seriously enhance the way you and your dealership engage, intrigue, convey, articulate, excite, support and stand apart from your competitors to your customers and prospects. 1. Looxcie (http://looxcie.com/) – The world’s
first “wear and share” video camera. Basically, the Looxcie device is a video recorder the size and shape of a bluetooth earpiece, and is my No. 1 pick right now. It’s like a Flip camera on steroids. I currently have clients who are issuing these to not only their Internet departments, but also to their showroom sales professionals. Try to imagine the ability to instantaneously respond to an Internet lead or a phone up by streaming a live, custom walk around. For example, you receive an Internet lead or a phone up and, after you complete the initial greeting, you ask if your prospect has access to the Internet — from a desk top, laptop or their cell phone. If they say “yes,” tell them that you are excited to share with them a live video walk around of the vehicle that they were interested in. You can literally “flick” one button on the
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Looxcie device and you are live streaming a custom video walk around, or even a walk through of the dealership — whatever you want! By the way, similar to the Looxcie is Qik (http://qik.com/) — a mobile video capturing and sharing app for iPhone and Android. Basically, it is like the Looxcie device without the hands-free camera. You can use your iPhone or Android to stream live video content to someone’s Website, desktop, laptop, tablet or cell phone device.
The purpose of this technology is twofold. First, if I was a sales consultant or an Internet/ BDC representative, my goal would be to be able to communicate with my prospect and build value as quickly as possible. Remember, the science of communication states that the strongest forms of communication are visual perception and body language. You do not have that over a phone call or e-mail. Having options like Looxcie or Qik, however, can seriously enhance your communication and clarity with your prospect, allowing you to build more value more quickly. The other reason I think this is a tremendous tool is that it will differentiate you from the competition. You are using state-of-the-art technology, not in a wasteful or useless way but in a powerful way. You will be seen as a cutting-edge business — a place that your prospect wants to do business. 2. The Turtleback iPhone SLR Mount (http://turtleback.hk) – With this device, you can
mount a Cannon EOS or Nikon SLR lenses to your iPhone. Basically, you can have telephoto, wide angle, macro or fixed 50mm lenses attach to this mount. What this means is that you can turn your iPhone into a state-of-the-art photographer’s camera. This is important because, even though video is so dominant and important, images are also important for the dealership, such as: new and pre-owned inventory, pictures with your clients and their new (or pre-owned) vehicles, dealership photos, employee pictures, special events and sales, community and current affairs, social media content, blog content, Website and focus site content, reputation management content and search engine optimization (all images can and should be optimized). They say a picture is worth a thousand words — I say it’s worth thousands of dollars. There is a huge difference in image quality. You can have bad pictures in bad lighting, or you can have professional studio-quality photos via an iPhone.
3. iSupport iPhone Stabilizer (http://www.isupport.tv) – This “steadicam” device is surreal. This is like what the people in Hollywood use on set, but you can use this technology at your dealership for amazing quality videos. You do not need to waste money on expensive video production companies or expensive video production equipment. You can produce highquality looking and sounding video footage with this device. Imagine how beautiful your video testimonials and walk arounds can be now.
These devices are going to seriously change the way you engage and interact with your clients and prospects. Be the first dealership in your market to be on the cutting edge of technology and communication — and not just because it’s “cool,” but because it is useful. If you have any questions about this article or if you would like some free ideas of how to utilize these devices to have an unfair competitive edge, please feel free to call me or e-mail 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.
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8:
Manager Speaks Out and Reveals the Raw Truth about That “Consultant – Trainer,” Mark Tewart
This guy, Mark Tewart promises all sort of things to us car dealers – sales, management and marketing strategies for our dealerships that he “promises” really pay off. Such as strategies that will increase sales without increasing your advertising. Ways to increase gross profit by $200 a car minimum. How to reduce and eliminate water in used cars and so on. Every time I read one of his ads, I thought, “Who could be dumb enough to fall for this guy’s rap?” Now, I’m going to tell you the raw truth about this guy and his ‘success secrets.’
My name is John Flynn; I live in Ohio with my wife and kids. I went to college here and became a salesperson at a car dealership. I was a struggling salesperson with little direction and not much of a future if my results stayed the same. I didn’t know what I was doing and was frustrated everyday with the business. I needed a change and I needed it quick. One day our dealer hired a consultant and trainer named Mark Tewart who ran all these ads with these big claims. However, our dealer told us he had known this Mark Tewart guy for several years going back to when he was a new manager at another dealership. Our General Manager told us to hang on to our hats because this guy Tewart was a fireball with more real valid information on success in the car business than anyone he had ever seen. But, I had every intention of not learning anything and finding out that this guy would be full of baloney. What I discovered scared me. Most of what he taught us was so different from what we had ever seen, heard or been taught by other so-called experts. As we listened to Mark’s information, we saw a whole different way to develop a high income career rather than just make a sale here and there. We heard sales skills, people skills, life skills, marketing skills and found freedom from the cheapest price, roll around in the mud, bait-n-switch ugliness. Best of all we learned actual skills to reengineer our business (managers and dealer as well as salespeople). I even looked in the mirror and saw John Flynn differently. So, skeptical and grateful at the same time, we left the workshop with a workbook and CD’s full of ideas. The next day I began to implement 10 different Mark Tewart strategies. Over the next couple of weeks, as I got them up and running, they all surpassed my greatest expectations. Let me give you an idea of what I am talking about. My first year of implementing Mark’s strategies, my production soared. That wasn’t all though. I began to get my life in order as well. Every time Mark came to the dealership he taught me lessons that made my whole life change for the better. After a period of big increases, I was promoted to Manager and attended Mark’s Management workshops. Once again, I was amazed at how much incredible information I got and how much it improved our dealerships sales and profits. Our dealership, located in an economically challenged area had improved to over 350 units and we had become on many months the largest dealer of our brand in the state! At the same time we improved our F&I and service numbers as well.. Everything went up! Personally, I went from struggling to winning. I became a manager and watched our dealership take off using the information. How you ask, could such a thing happen? The answer simply, is learning how real proven and effective sales, management and marketing systems work, from
the “master”, Mark Tewart. In spite of everything you hear about business being slower and tougher, my business is booming. Just a couple of Mark’s strategies alone have allowed us to increase F&I by over $100 and increase our dollars per RO in service! Thanks to Mark’s ideas, systems, inspiration and encouragement I have watched our dealership grow and prosper while my check keeps getting bigger. What is important is that our dealership can sell a ton of vehicles, get plenty of referrals, is unaffected by competition and has ‘real’ systems in place to realize a huge profit every month. I knew Mark had it figured out when after one consulting session he showed me over 40 ways to grow my business and make more profit. He is brilliant. So here’s the raw truth about this Mark Tewart guy: Unlike most of the ‘pretend’ experts, he is a bona fide trainer-consultant and money making genius, who can do anything from tweaking to transforming your business, so you not only make a lot of money, but you can make it a lot easier and more enjoyable than you can imagine. And, in my opinion, you’re a fool to ignore him. Just like me, you’ve seen his ads in this magazine month after month. If you haven’t responded, I don’t know why. Maybe you think you are too smart and know it all like I did… but if you are so smart, why aren’t you getting the results you want? Maybe you are already doing well – but you could do better (some of Mark’s most ardent students make many millions per year). Maybe you just don’t want to be sold something that’ll be a waste of your hard-earned money. About that you can relax. Mark guarantees his stuff. I’ve got over $1,000,000 reasons why you ought to investigate what Mark has to offer. What reasons do you have NOT to look at this? And here’s how easy it is: Mark has prepared a straight-talk, detailed report – “HOW TO INCREASE YOUR BOTTOM LINE BY $250,000 or more,” which you can have absolutely FREE of cost or obligation. Get it, read it and decide for yourself whether or not you want to get in on Mark’s information. It’s that simple. To get your FREE Report, just dial the 24/7 hotline at 888 612 5884 ext 90001 or go to www.dealershipsuccess.com - Either way, you will get his eye opening report rushed to you, free. By the way, I wasn’t paid even a penny or given anything to write this about Mark. I am a car guy just like you. I did this just as a way of saying thanks to Mark for everything he’s done for me. And I am not the only person who feels this way. With your report, you’ll get a book of actual comments from some of the thousands of other salespeople, managers and dealers he has helped. Most like me, are now making more money, with less hassle than ever before. More business that we handle flows in everyday… profitably. All we can say is this, “don’t envy us. Join us”.
John Flynn - Honda of Mentor, Cleveland, Ohio P.S. Please don’t get my number and call me. The last thing I need is a zillion phone calls asking me about Mark. I’ve said what I have to say right here. What else could you possibly need to know? Instead, call the 24/7 Hotline at 888 612-5884 ext 90001 or go to www.dealershipsuccess.com to get your FREE SPECIAL REPORT today. You owe it to your business.
CliffBanks
leadership solution
start-up sites rewrite editorial rules Trade media has long been part of the fabric of the automotive retail world. In fact, that history dates back to 1916 and the first educationfocused publication directed to car dealers, American Garage and Car Dealer. Since that time, numerous entrepreneurs have entered the media space, providing news and best-practice information to dealers. In recent years, publications began chipping away at the traditional editorial model of having a few gatekeepers of information, opening up the editorial pages to business leaders, consultants and advertisers who write about specific areas of expertise. In the last few years, however, a crop of dealer-focused media/education Websites have sprouted up. From Ralph Paglia’s AutomotiveDigitalMarketing.com (ADM) to Jared Hamilton’s DrivingSales.com to Jeff Kershner’s DealerRefresh.com, this wave is beginning to upend the traditional trade media world that’s been reliant on print-focused publishing companies for nearly a century.
as seen on
Chris Saraceno, a vice president and partner with the Kelly Automotive Group with dealerships in Pennsylvania and Florida, created DealerElite.net in 2010. In that time, it’s exploded to nearly 7,100 members, making it the fastest growing site in its category. DealerElite’s roots go back to a personal contest Saraceno had with sales expert Grant Cardone to see who could get the most connections on LinkedIn over a period of time. From that experience, Saraceno decided to create a LinkedIn group called DealerElite. He partnered with Mike Myers to design a site, which became DealerElite.net. A watershed moment was a recent discussion surrounding TruCar and Zag’s potential threat to the automotive retail system. Noted columnist Jim Ziegler posted a simple question about the two companies. That question touched off a firestorm of dealers, vendors and consultants unloading on the two companies. Within four days, nearly 11,000 people had viewed the almost 60 pages of comments.
That number continued to grow to more than 40,000 views and 200+ pages of comments while spawning countless other postings on DealerElite and other related blogs. It wasn’t a news story that generated the activity. Instead, it was blog posting asking a question that touched a nerve. Susan Givens, publisher and owner of AutoSuccess, recognized the potential of DealerElite early on. Givens and Saraceno began talking about ways they could work together when DealerElite first started. Those discussions resulted on a content partnership between the two media properties formed last summer, where, each month, she sits down with her editors and choose a blog post from DealerElite to run in AutoSuccess, and an editorial from the magazine runs on DealerElite. They’ll look at blogs that receive a lot of comments, views and ones that are interesting and helpful to dealers. The partnership may portend a future in which various media entities in the automotive trade space find ways to work with, instead of against, each other. And that may not be good news for older, more established media outlets that have yet to embrace new editorial norms. Cliff Banks is the co-founder and director of the Automotive Leadership Roundtable. He can be contacted at 800.601.3216, or by e-mail at cbanks@autosuccessonline.com.
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marketing solution
AJLeBlanc
page one
Video in Universal Search is called video SEO. Video SEO is the application of keyword search techniques to appear on the first-page search results for Websites like Google, Yahoo and Bing. This valuable first-page search exposure is where car buyers are clicking, not page two. ROI for video SEO is not return on investment — ROI = Real Estate On the Internet. Everyone knows the more real estate you own that gets exposure to customers, then the less your competition owns. Using video SEO properly can effectively reduce your competition’s exposure to where potential car buyers spend the majority of their time searching for information — the Internet. The Internet is on 24/7 with car buyers using it at all times of the day, even when your dealership is closed. Twenty years ago you could run
your dealership without a Website, but in today’s market, a dealership would be closed without having a presence on the Internet to compete for the average 11 hours a car buyer spends researching (Polk Automotive Buyers Study, 2011) before they ever step foot on a lot. There are more than three billion searches being performed on Google every day, with more than 50 percent of these searches now having videos included on the first-page search results (Forrester Research, 2010). With up to 65 percent of your Website traffic coming from car buyers perfoming Google searches (Datium, 2012), and half of these searches returning video listings on the first-page search results, having an effective and consistent monthly video SEO strategy is becoming the standard, not the option for each dealership, just like having a Website. One dealership using video SEO is Win Hyundai, located in Los Angeles County. Hani Nassif, one of the store’s partners, said “Using video SEO has helped us increase our digital footprint on the first-page of the search engines for our surrounding PMA. Los Angeles County is the largest county in the USA, with around 10 million residents, and is amongst the most competitive markets to sell vehicles. Using video SEO has gained us an edge over other local dealers to dominate more first-page listings on the search engines in a quick and effective manner, as Google now finds videos relevant to search.” The example shown in the screenshot is for the search term “HYUNDAI MECHANIC PASADENA,” which shows Win Hyundai having five video listings on the first-page Google search results, thereby effectively reducing the exposure of other in-market competing Hyundai dealers vying for local service customers. podcast interviewee
Up until May of 2007, when you perfomed an Internet search, the only results you were shown on page one of the natural organic search listings were Websites. Today, when you do a search, you are using what is termed “Universal Search,” which is a blending of Websites, images, maps, reviews, microsites, news, press releases, social media and videos in the natural organic search listings. The firstpage search landscape has drastically changed since 2007, with local automotive search listings being the most competitive of any industry. Almost 98 percent of car buyers don’t click past page one of the search results, so if your dealership is not using an effective overall digital marketing strategy to capture multiple first-page listings, then you’re probably losing sales to your competition.
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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DavidGoodison
marketing solution
give yourself a chance
for crm success Isn’t the focus of CRM — that is, to say, customer relationship management — customer retention and prospect follow-up? Customer relationship management is about relationships with customers. It’s all about the customer. Managing Internet leads is a necessity, but Internet lead management is not CRM — it’s ILM, and it’s just a small piece of the entire mission. Over the past 10 years, the automotive industry has been inundated by a hoard of new CRM vendors. Dealers tried one vendor after another, seeking an easy, workable, profitable solution that provided both customer satisfaction and a reasonable ROI. A lucky few discovered their solution, while many others gave up in disgust, all the poorer but perhaps not the wiser. Let’s talk about four reasons why CRM initiatives fail and how you can avoid them: The No. 1 reason why CRM is doomed from the beginning is that we don’t get buy-in from the managers and sales staff (“What’s in it for me?”). Do not underestimate the importance of buy-in. The salespeople and managers are the ones who will be tasked with using the system every day, not the dealer principals. If they don’t like it and don’t perceive value, they will find ways around it and then you just spent a whole lot of money for nothing. One size does not fit all. No two dealerships do business exactly the same way. Once you’ve evaluated some CRMs, pick two or three solutions you think will fit your dealership needs and have the vendor present their solution directly to your managers and sales reps. Get their vote. Get them involved in the selection and they will take ownership much more enthusiastically. Now it’s their system. Also, when you’re interviewing CRM companies, ask them who else in your area is using their system. They can’t resist beating their chest and telling you all the dealers that have signed up with them. Great — now you know what your competitor is using. What’s
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the real point of that question? How many dealerships do you think a prospect shops before they finally buy? Three? Four? Five? If you and your nearest competitors have the same CRM, what is your advantage? None. You always need a competitive edge in your marketplace. Demand some level of exclusivity from your CRM vendor. The second reason for failure is that the system is too complex for the users. Many CRM vendors try to “out-bell and whistle” their competitors by selling dealers systems they should be selling to computer programmers, not sales professionals. If you’re confused or overwhelmed during the presentation, how do you think your people will feel? When a simple process becomes tedious, your people will find other things to do to avoid the system — it’s just human nature. If it isn’t easy, it won’t get used. The third reason is that management fails to ensure compliance and measure results. I am sure you’ve heard the saying: If you don’t inspect, you can’t expect. If you look at the best dealerships, they have great strategies, but, more importantly, they are consistent when it comes to daily execution. What is the key to being consistent and effective? It has to be simple. For example, a simple, 10-minute sales meeting: Review your hot prospect report with your sales team every morning, first thing. You can do one-on-one’s or all together, but get it done before you start your day. Don’t skip this meeting for any reason; it is a ritual that all successful dealerships adhere to and, if you make it your habit, it will pay off in additional sales every month. On a monthly basis, review your sales statistics from a dealership perspective and also for each sales rep. You need to evaluate the total picture. You should be able to easily see phone ups, phone ups showed, Internet ups and Internet ups showed, be-backs and referrals sold, etc. You should be able to see closing ratios for each sales rep so you can identify his strengths and weaknesses. The same thing applies to
demos, write ups and be-backs. As a manager, you need these reports to ensure compliance and to help you build a strong sales force. Also, what happens to all those prospects who never bought from you? Let’s say you average 100 units a month. You have to talk to between 400 and 500 prospects to get those 100 sales. That leaves about an average of 400 prospects who didn’t buy from you. That’s 4,800 prospects a year that you paid to get in the door, not to mention the thousands of Internet leads who didn’t pan out. By taking the time to get that prospect information in your database, you could do some simple data mining and target marketing when you need to generate traffic during slow times. Reason No. 4 is that most CRMs do little or nothing to build customer relationships. Why in the world would dealerships spend tens of thousands of dollars, every month, on ads designed to attract the least loyal, most price-conscious and difficult prospects into dealership showrooms, only to have their sales reps drop the ball when it comes to consistent, professional follow-up? Who was the most successful salesperson that you have ever come across? If you took the time to reflect back and identify a top performer from your past, that person may have been the most charismatic, the best product presenter and the slickest negotiator but chances are what set that person apart from the rest was the size of his customer base and how it was utilized. Your CRM should follow-up every Internet lead, phone and floor prospect as well as sold customers for at least five years. Write them, e-mail them and call them. When it comes down to it, computers don’t sell cars — people do, and it’s simply about the relationships we build with our prospects and our customers that will ensure our future. David Goodison is the president and CEO of ProResponse, Inc. He can be contacted at 866.407.3104, or by e-mail at dgoodison@autosuccessonline.com.
JoshPereira
marketing solution
keeping pace with customers’ online research patterns
Today’s consumer has a staggering variety of media available to them to remain in touch, aware and up to date with news, family, friends and topics of interest. Communication and information overload are struggles as consumers attempt to deal with the deluge of texts, IMs, e-mail, tweets, wall posts and feeds — even before researching and shopping online.
One of the main challenges that consumers face is not how to find information, but rather how to limit this information to a digestible format. Consumer Research and Shopping Patterns
One result of the plethora of information available is that consumers have learned to absorb tremendous amounts of data through small, digestible and frequent “bites.” Consumers are increasingly utilizing Websites and mobile applications that allow more intelligent interaction (both UI and AI). These services also provide the ability to scan a wide variety of information at surface level, with the
option to dig deeper as time or interest dictates. The opposite is also true. Consumers make the decision to spend less time on sites when the format and layout of the site is not compatible with expected browsing and research patterns. According to a study of consumer online shopping and research patterns by SEO expert Dejan Petrovic: “Consumers favor sites which provide product summaries before full product information, and product comparison through organic and thirdparty content, rather than OEM or retailer recommendations.” Traditional Displays
Historically, dealer marketing companies provide a traditional representation of the vehicle using a core marketing data set comprised of basic vehicle identification, photos, installed equipment, technical specifications, optional equipment, factory warranties and vehicle pricing. Traditional vehicle displays require the user to sift through large amounts of information in order to review equipment features. If the consumer comes to the site with specific features in mind, it can be difficult to determine whether those features are on the vehicle. If the consumer has yet to determine key features of interest, it will be difficult to glean this from the large blocks of information that typically describe equipment and options. Consumer-Driven Displays
Some of the following strategies are employed by companies keeping pace with consumer buying and shopping patterns with proven success in key analytics, such as visitor time spent on site, conversion rates and overall usefulness, directly corresponding to organic promotion and referrals: 1. Creative vehicle “highlights,” viewable upon entry to vehicle detail pages, providing as much
relevant and diversely sourced third-party content as possible. For example, sporty sedans and coupe highlights identify exterior features such as spoilers, rims and wheel size along with other relevant trim features.
2. Identification of a few key features, such as bluetooth integration, as standard is important — more so than identifying interior lights, power door locks and carpet mats. A minivan highlight might focus more on safety and airbags, for example, along with in-vehicle entertainment systems. 3. Incorporating third-party content, such as a short text blurb providing an overview of the vehicle, EPA mileage, five-star safety ratings and press statements (ie: awards, top-five lists, etc.) are all essential and complimentary product validation content. 4. Providing simple and effective generic model research with comparison functionality for new vehicles, with distinct and unique equipment features identified for best-value comparison. 5. Use automotive data to develop a strategy to highlight brand appeal and content, corresponding with OEM brand and vehicle marketing messages. Ensure That Your Online Marketing Keeps Pace
There are many examples of sites outside the automotive sector that address the needs of the consumer to review high-level information with staggered detail and organic third-party content. Talk to your inventory or Website marketing company today to discuss how your site and inventory displays can continue to evolve in order to remain competitive and effective in your local and regional marketplace. Josh Pereira works in business development and automotive data syndication for DataOne Software, a division of Dominion Dealer Solutions. He can be contacted at 866.865.1583, or by e-mail at jpereira@autosuccessonline.com.
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sales & training solution
three keys to more successful proxy bids for vehicle acquisitions DUads-autoSuccess2012-02.pdf
In my previous column, I highlighted the three core prongs of a strategy for “provisioning” used vehicle inventory — knowing what to buy, what to pay and where to find the vehicles you need. I made the case that technology and tools are essential to: a) operate with greater certainty that your vehicles are “right” for your dealership, and b) maximize your efficiency and profit potential for every vehicle at each step of the acquisition process. The third leg of the “provisioning” process — “where to find the vehicles you need” — is proving to be problematic for many dealers. The situation: More dealers recognize that online auctions are an efficient and necessary option for finding and purchasing used vehicles to extend their acquisition reach beyond local, physical auctions. However, many dealers and their used vehicle managers say they find it difficult to “win” vehicles through proxy bids, and some avoid this form of bidding altogether, favoring live participation in simulcast auctions. As I’ve addressed this topic with auction executives, dealers, used vehicle managers and others, I’ve come to recognize that making proxy bidding a more effective acquisition option for dealers is critical for our industry. It’s really the “last mile” for enabling dealers to maximize their acquisition efficiencies. The following are immediate steps dealers can take to “win” more vehicles via proxy bids and maximize the efficiencies and profitability potential of these acquisitions: 1. Use technology and tools to comb run lists for the “right” vehicles.
There are too many vehicles and too many online auctions/lanes to do this job manually anymore. Today’s technology and tools can instantly match the “right” vehicles for your dealership with the lanes where they’ll run. Dealers say they can apply this time savings to vetting a vehicle’s condition and setting their bidding strategy. Note: A rise in the number of dealer-owned vehicles at auctions means many vehicles lack condition reports, photos and other information buyers need to size up a vehicle’s opportunities and risks. This is a real problem, but one that I predict will pass as dealers and auctions
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work to address this deficiency. (A proactive “trick” some dealers use to address the current condition report shortcoming: Do a Google search with the vehicle’s VIN to find the unit online. Sometimes this step yields photos and condition information sufficient to place a bid, rather than pass up a vehicle.) 2. Bid to buy.
Dealers who have the greatest degree of success with proxy bids approach them the same way they do bidding via live simulcast or physical auctions. Before bidding, they’ll calculate the vehicle’s “gross profit margin,” or the spread between the unit’s likely retail selling price and the cost to acquire the vehicle (including auction fees, reconditioning and transportation costs). With this margin in mind, these dealers determine the maximum wholesale amount they can pay to acquire a vehicle, whether they get it from a simulcast auction, physical auction or proxy bid. These dealers will also “pay up when it pays.” That is, they’ll add a few hundred dollars to their proxy bid if they need the vehicle, know it’ll sell quickly and/or they spot an opportunity to enhance the unit’s front end gross to offset the higher acquisition cost (e.g., accessory, F&I options). This approach helps to mitigate what’s known as “proxy bid discounting,” in which dealers either set a low price in hopes of stealing a unit or they purposely hedge their bids to avoid winning every proxy bid they place. Both scenarios are likely to render these proxy bids ineffective, given the competition among dealers to acquire inventory and current used vehicle supply constraints. Several dealers say they’d be more aggressive and realistic with proxy bids if the auctions would be more transparent. For example, they’d like auctions to share winning/losing bid amounts so dealers could learn from their bidding history and practices. As I’ve shared this with auction executives, they’ve affirmed plans to enhance transparency and help dealers become more effective proxy bid participants. 3. Know your win/lose ratios.
Dealers with longer-term proxy bidding experience say they’ll typically close about 10 percent of the proxy bids they place. They track this ratio to help balance the number of proxy bids they place in conjunction with acquisition efforts via simulcast and live auctions. The calculation, if done on a per auction basis, also helps spot patterns that may be problematic for proxy bids — e.g., they are less effective at Auction A versus Auction B. Dealers who put these steps into practice will see two benefits. First, their proxy bidding process should improve and provide a better resource for inventory acquisitions. Second, these dealers will be the first ones to complete the “last mile” of an increasingly competitive online auction marketplace. Dale Pollak is an author and the founder of vAuto. He can be contacted at 866.867.9620, or by e-mail at dpollak@autosuccessonline.com.
podcast interviewee
DalePollak
8:
Victory Dance It’s the moment you realize your dealership has no limits. Creating your Victory Dance is why we’re here. Find out more at nolimits.dealer.com.
Tammy Darvish, Vice President, DARCARS Automotive Group
AUTOMOTIVE DIGITAL MARKETING
888.785.5418 | nolimits.dealer.com
MarkTewart
sales & training solution
five simple things you can do right now to sell more vehicles
If you are looking for 50 closes to take your sales to the next level, you are missing the boat. When you are talking about adding 50 closes to your sales arsenal, you are looking for the “big bang moment” and are concentrating on risk reversal rather than risk aversion. When a customer feels too much fear, you have to use closes or objection handling. Although these are good things to have in your repertoire, you are better served to concentrate on the psychological and emotional road to the sale, rather than the steps to the road to the sale. By gradually addressing their fears as you move along in the sale process, you create risk aversion, which is much easier to do than risk reversal. 1. Lower your customer’s fear at the greeting. Whether you are greeting customers online or offline, you can lower their apprehensions from the beginning to create a different environment and set the tone for the culture of your business and the way you operate. If you are greeting customers on your lot, use the following greeting: “Hi, folks — are you out beginning to look and shop around today?” A typical response from your customers to a standard greeting is, “We’re just looking.” The above greeting removes that awkward response and tells them proactively that it is OK to look and shop.
Stay in a social zone of about three to five feet from the customer, instead of getting into their personal space too quickly. If possible, wait to exchange names and handshakes. In the typical greeting, a salesperson forgets the customer’s name immediately. Wait until you see sign of comfort from a customer such as a smile, moving closer to you, direct eye contact, etc.
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— then offer a greeting. Use a powerful form of persuasion, such as reciprocation/obligation in your greeting. When you feel the customer is comfortable, say “I’m sorry, I didn’t mean to be rude, I didn’t get your name and I don’t think I gave you my name.” Apologize to every customer you meet in the first five minutes and you will create a sense of reciprocation/ obligation and make and impression of you being a person rather than a salesperson. If you are greeting customers online, then you must also remove barriers of fear. You can do this by being more personable and using better tools to connect and create value. Try using video e-mail tools such as “Eyejot.” Direct customers to your YouTube channel for free special reports, video walk-around presentations of vehicles and a series of customer testimonials.
2. Utilize commitment and consistency as a
form of subtle persuasion to remove fear of risk. Ask small questions that will create small commitments to the customer’s involvement to the process. Small questions do not create fear and eventually lead to comfort in asking bigger questions. Stop asking “deal killer” questions, such as “What payment are you looking for?” or “What do you want for your trade?” These questions create fear and move the customer to their head and out of their heart. People tend to buy when emotions mix with logic. Move smartly and slowly while using the concept of “TLC” – think like a customer. Ask questions such as “What is the most important thing to you in a new vehicle?” or “What do you like most about your current vehicle?” These questions will give you the customer’s keyword descriptions of what matters most and the customer previous buying patterns.
3. Be Contrarian — Do the opposite of what other salespeople do. Instead of selecting and then presenting and demonstrating the new vehicle first, go their present vehicle first. Home, work and vehicle are comfort zones
where a customer spends most of their time. They are bringing their vehicle to you, so use it up front. “Mr. Customer, I would like to walk over to your vehicle for a moment for two reasons. First, I want to jot down all the information and descriptions so that later on we will have that for the market evaluation and that will save you time. Also, as we are doing that, I would also like to ask you a couple of questions about what you like or don’t like about the vehicle, and what has changed for you since you bought the vehicle to now. Usually, while we are doing this, I think of ways that can save you money.” Anchor into the customer’s brain that you are saving them time and money. 4. Do an effective demo drive. If you have ever rented a vehicle, you know it takes you quite a while and several miles to get comfortable. Knowing this, why are you taking one- or two-mile test drives? Take 15- to 20-mile test drives. Allow the customer to get comfortable with the vehicle and truly experience the vehicle on the drive. During this elongated process, customers will get emotional and begin to combine heart with mind. They will begin to take mental and emotional ownership. Your customers will also “spill the beans.” They will tell you everything you need that will allow them to buy. 5. Give the customer all the ways they can purchase. Make sure to “walk the wheel” of opportunities. Give customers full disclosure of price, trade values and three options for down payments/payments. Allow the customers to decide what is most important. Most customers are budget buyers and need more than one option to make a less fearful decision. Utilize the “power of three.” Three choices are perfect. One is “take it or leave it.” Two is “either/or,” but three is “true choice.” More than three is confusing and scary.
To to sell more vehicles, don’t look for “magic bullets” — just do the work. Work intelligently, be unique and TLC – think like a customer.
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.
podcast interviewee
“Big doors swing on small hinges.” Small things can make a big difference in your sales process. There has been a lot written recently about what I term the “moment of truth” in the sales process. I don’t believe that a sale usually occurs because of one “big bang moment.” Usually, a sale occurs because of a series of very small and simple things that add up to being the difference maker.
DavidMetter
sales & training solution
Passive vs Active
Lead scoring What’s the Difference? Before we get into the difference of active vs. passive lead scoring, it is important to set the stage of how lead scoring was born in the retail automotive industry. Five years ago, I was fortunate to be in the right place at the right time when I participated in an RL Polk meeting with my previous dealer group. We had given a year’s worth of Internet leads to them to bounce against their registration data. Our dealers knew what we had sold, but now we wanted to see how many of these customers had bought from someone else. This exercise had been done before, but this meeting would end with a different plan of action. Like previous meetings, I saw that up to 40 percent of our total leads bought a car but in most cases, a typical dealership only sells 11 to 15 percent of them. That meant that more than double what we sold went to other dealers in our market area. This frustration got the best of me during the meeting when I blurted out “Why do we always have to look at old data
to know we are failing? Why can’t we know if these customers are true buyers before they go somewhere else?” Luckily for me, the right people from Polk were in this meeting. They shared that they were working on a lead scoring platform and were looking for a test partner. Taking hundreds of strands of data that included registration data, lifestyle info, household status, etc., Polk was betting that they could score a lead in near-real time and pass that score along to the dealers so they would react differently. It was suggested that a 10 was better than a nine, and a nine was better than an eight, and so on. This was radical thinking at the time, but it was a better idea than how salespeople had cherry-picked leads in their current process. Sell More Cars Faster
As we started testing, the data proved that the higher-scoring leads purchased more and faster than the lower-scored leads — at least the registration data showed that. What we realized was if the salesperson changed his behavior for the higher-scoring leads, we sold more cars. If they didn’t, the score didn’t matter. We later named this “active lead scoring.” It took action on part of our dealership to drive a higher conversion. As lead scoring was socialized in the automotive community, it was highly controversial. OEMs started scoring leads but chose not to pass this along to dealers for fear that they wouldn’t know what to do. Dealers were afraid of scoring because it was something new and went against what every trainer had told them previously: Handle all leads the same. As someone who helped co-architect and test the lead scoring platform, I found myself defending the practice, even though the data showed it worked. Then, one day I woke up and the idea of passive lead scoring was born. I decided to take the great data that Polk provided and create a new executable for our dealership teams. Instead of asking the Internet salespeople to change their behavior, I thought it might be easier to change the behavior of the customer. We knew they were buying; they just weren’t always buying from us. What if we scored the lead, didn’t share it with the dealership, and created a reason for the customer to give us the opportunity over our competitors? That was the introduction of passive lead scoring. Here’s an overview of how it works: When a customer submits a lead to a dealer, no matter if it comes from the Website, an OEM or a thirdparty lead, the lead gets scored and, based on the score, the customer is incentivized to come into your showroom instead of going to a competitor. All of this happens without changing any of the processes at the dealership level. It’s like putting the chocolate in the peanut butter. Putting this philosophy and technology working behind scenes for dealerships, we instantly saw an increase in show rate and closing ratio. Some dealerships experienced a closing ratio as high as 38 percent during the test. It only made sense. Drive the highest intent to buy into your showroom and your Internet team will sell more cars — and your competition will have no idea what you are doing because it is behind the scenes. It quickly becomes a secret weapon. Passive lead scoring is a much easier decision for a dealership to make. It allows an Internet team to use great data to drive the highest quality at-bats into the showroom without changing the lead followup process at your dealership. Adding passive lead scoring allows you to motivate action while lead is still hot and stand out from the competition — just like putting chocolate in the peanut butter. David Metter is the president of automotive at Hooklogic. He can be contacted at 866.239.3846, or by e-mail at dmetter@autosuccessonline.com.
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TRiO Guaranteed MarketinG
TracyMyers
marketing solution
celebrity branding
strategy no. 3: Generate Loads of Publicity One of the most effective ways of building your expert brand is through the power of publicity. With the right approach, you can achieve a great deal, even with a limited budget. Clearly, it’s the favored technique of the music and movie stars. They want to hit the front pages and make sure they’re being talked about. It’s the same in your business, but you do need to make sure you have a message that is both newsworthy and helps establish your expertise. Issuing Press Releases
The main tool for generating publicity is issuing a press release to your target media. You can do this when you have something newsworthy to announce. Editors are not interested in you or your story — they want to know what’s in it for their readers. So you’re not going to get much coverage for publishing your latest monthly newsletter, but you may when you have an angle such as: • A major event • A significant new product or service • A controversial opinion on a current topic One great way to attract publicity is to create some sort of event that attracts media interest. Any business can do something like this. The key is to find a theme and run with it. You can easily tie it in with current news events or with normal holidays in the calendar. The media are always interested when someone they see as an expert has a strong
view on something happening in the news, such as changes in the law. Another great way to get free publicity is to link up with a charity or nonprofit organization. It’s a lot easier to pitch a press release or idea if you already know someone on the inside, so it can be worth investing time in getting to know your local reporters and editors or those who write about your topic in trade and national media. Submitting press releases to news outlets, such as newspapers, magazines, periodicals, trade journals, television stations and radio stations gives you a good chance of media coverage. When you get media coverage, this effectively acts as independent endorsement of your expertise and makes a big contribution to building your celebrity expert status. If you want more chance of coverage, you may decide to hire a public relations firm to handle this for you — even for a one-off event. Another option is to hire a professional writer to create your press release using a Web site such as www.elance.com. Online Publicity
The main reason for sending out press releases is that you want to attract the attention of the media and have them write up the details of your announcement — perhaps even interview you. However, an added benefit is that syndicating press releases online can generate valuable links back to your Web site. There are several Web sites that make it easy for you to syndicate your press releases online, such as: www.prlog.org — free but very effective www.prweb.com — offers several levels of service, including podcasting and search engine optimization www.prnewswire.com — also offers more advanced services depending on your needs Once you write a press release, you should also post it in a “latest news” section of your Website. 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.
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ToddSmith
marketing solution
five easy ways to increase your website conversion this month
There is no better time than now for you to dedicate more time, attention and resources to optimizing the performance of your Website. It is important for you to realize that driving more traffic to your dealership’s Website will not improve your Internet business if you don’t do anything to keep them on your Website after they arrive. Here are five tactics to help you convert more of your shoppers into leads on your dealership’s Website:
amount of people trying to click on the address. Shoppers end up highlighting, copying and pasting the address into a mapping program. Why not make life easier for the shopper? Link your address to driving directions and make it accessible from every page of your Website.
1. Eliminate the “submit” button — Do you like to submit to anything? Well, people shopping on the Internet don’t, either. Change the text of your button to more shoppingcentric words that entice the shopper to take the next step. Phrases like “Proceed to Next Step” and “Get Started” put the shopper into a buying frame of mind. A lot of retailers are now using “Proceed to Checkout,” which is similar to offline shopping in stores.
4. Test a page — Using Google’s Website optimizer program, you can test a page on your Website to help and find out what you need to do to increase your conversion. Other products exist to do this type of testing, but it is hard to beat Google’s free and easy-to-use system.
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5. Turn your “thank you” page into a connection page — After shoppers fill in a form on your Website, instead of just returning them to your home page, have a cool “thank you” page with links to your blog and social media connection points. It is much easier to connect with shoppers on Facebook or Twitter once they show interest in potentially doing business with your dealership.
These are five simple things you can do right now to start improving your Website’s conversion. Join me next month for even more techniques and strategies to take your inbound marketing to the next level. Todd Smith is the co-founder of ActivEngage. He can be contacted at 866.387.9061, or by e-mail at tsmith@autosuccessonline.com.
podcast interviewee
2. Make the address on your Website clickable — I know this might sound strange to you, but hundreds of heat maps of shoppers using dealership Websites reveal a shocking
3. Use live chat to instantly increase your Website lead count —Implementing live chat on your Website is one of the fastest ways to effectively double your lead volume. By addressing a segment of shoppers who have questions but don’t want to call or fill out a form, you can easily deliver incredible results for your dealership. Live chat converts between one and three percent of your shoppers into a live-chat conversation. It is just up to you to turn those conversations into leads who walk into your dealership.
JimmyVee & TravisMiller
marketing solution
how to attract buyers who want to do business with you – not because of inventory or price DUads-autoSuccess2012-02.pdf
When you market your dealership using traditional lead generation and customer attraction methods, your job becomes the seemingly endless task of posting cars, reducing prices, responding to price and vehicle inquires and dreaming up new ways to discount. Phew — that’s a lot of wasted hustle that results in not a lot of gross or net profit. The Typical Car Dealership Customer Attraction Strategy From Your Prospects’ and Customers’ POV
When traditional customer attraction methods are used, the experience is as equally uncomfortable and unnatural for your prospects and customers as it is for you. The customer is on the receiving end of your manual brute force efforts and often feels like an animal being chased by an hunter who won’t give up the fight. They feel pressured, confused, uncertain and underwhelmed by the process, the information and experience. Don’t think for a second this only applies to your internal sales effort. Your external marketing is doing an equally brutal hack-job on your personal and corporate brand and on your prospects’ or customers’ perception of you and your store. Interrupting them, bombarding them and confusing them by pushing vehicles, prices and discounts, not to mention wasting their precious time, is no way to build an authentic relationship with you prospects and customers. Here’s The Scary Part
The cost of this product-pushing approach is huge. Prepare yourself. It’s ugly, it’s frightening and it’s familiar: more work, more waste (both time and money), more frustration, less traffic and lower grosses. All of which means you put less money in your pocket, kids’ college fund and retirement account. The Natural Way To Attract Car Buyers
If you want to end the stress and frustration of getting customers and selling more units so you can finally have a business and life that is what we like to call ESP — Enjoyable, Simple and Prosperous — then you have to change what you’re doing. The old way is out and
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today’s economic environment demands new methods. But what action should you take? Good question. We have answers. Gravitational marketing eliminates the unproductive, awful and forced approach of interrupting, chasing and wearing down prospects to get customers and finally allows you to attract high-quality, profitable customers who pay more, stay longer and refer repeatedly — customers who are far more fun and enjoyable to do business with. These customers respect you and want to work with you. They weren’t forced into making a decision they now regret. They are not seeking specific vehicles and aggressively researching other dealers. They aren’t Internet shopping and beating you up for the lowest possible price or demanding a deal that’s a million bucks under invoice, tissue and hold back. Your Gravitational Marketing Plan Of Attraction...
…will allow you to befriend the right kind of prospects who are most likely to be interested in what you have to offer. It then creates in them an eager want for you, your dealership and your expertise. They come to you for what you can do for them, not what you can sell them. They come for help and leave happy. They seek a solution to a problem that your dealership can solve. They come for expertise and they leave with a car. When you harness the natural power of gravitational marketing and put it to work for you, you will be the only and obviously choice in your market. You’ll dominate the market and have an unfair advantage over all your competitors. You will be regarded as the resident expert in the automotive field and you will be sought-after instead of being a chest pounding, street-walking, ad-dollar-wasting, glad-handing huckster. By harnessing the laws of gravitational marketing you will create a natural system — a system that can be put on virtual autopilot — that attracts customers and delivers leads while you focus on improving the systems in your dealership, developing your employees and giving back to your community. It gives you your life back and allows you to spend more time with family, friends and live the lifestyle you got ultimately got into the car business to create for yourself. The Science Of Attracting Customers
Yes, it sounds too good to be true, but gravitational marketing is scientific. Real customer attraction — customer attraction done right — is a science. It’s about hypothesizing, testing, measuring and results. It’s about formulas, principles and systems — numbers, data and analytics. This is the kind of marketing you need to be engaged in if you want to maximize every opportunity you get and beat the recession by attracting customers when others say it’s impossible. It’s not as glitzy or fancy as those new, shiny objects but it’s real, sustainable and dynamic. It’s the hard work that makes running a car dealership the sweetest game on earth. To learn more or to request a FREE Market Rater Analysis for your store, contact us with the information below. Jimmy Vee and Travis Miller are founders of the Rich Dealers Institute. They can be contacted at 866.867.9618, or by e-mail at jt@autosuccessonline.com.
podcast interviewee
For most dealers, getting customers is the biggest stumbling block keeping them from achieving breakthrough success. The traditional customer acquisition process is frustrating for dealers and hard on their prospects and customers.
4
9:0
RobertWiesman
marketing solution
salesman goes online to build his own brand In the January issue of AutoSuccess, we ran a contest where we asked you, the car sales professionals, for your most innovative tools and tips. We got several great ideas and exciting sales methods, and the winner was Robert Wiesman, a sales professional at Massey Hyundai in Hagerstown, Maryland. Robert has created a personal Website designed to brand himself as the consumer’s Hyundai salesman (www.robertwiesman.com). On his site, he gives useful information about auto news, maintenance and other areas of consumer interest, offers a video blog, customer testimonials and other content. We asked Wiesman some questions on how he got this started, and what he would tell other salespeople wanting to start their own branding process. AutoSuccess: How did come to be in the car business? Robert Wiesman: I got into the car business
me. The biggest problem in sales, I believe, is obscurity — people not knowing who you are. You need that omnipresence to get in and get your market share. You need to build yourself as a brand. I read a lot of books and saw a lot of videos that led me in this direction. AS: Would you say this has been a success? RW: I have more than 5,000 followers on Twitter, and the Website gets a lot of hits, and it gets
them from all over the country — I’m not entirely sure of how beneficial that is, but maybe if they don’t buy from me, they’ll talk about me, and that ripple will go out and come my way. AS: What does your dealer think of salespeople branding themselves? RW: They don’t encourage it, but they don’t discourage it, either. AS: Have any of your peers jumped on board and followed in your footsteps? RW: (Laughs) No, no, no. I am ridiculed and made fun of on a regular basis.
AS: Describe the process you went through when building your site. RW: My best friend, who helps me with all my stuff, is a Web designer. That helped out a lot.
But if you don’t know someone, you can do it, or you can hire a media manager — believe in yourself.
by accident. At 31, after a divorce, I walked away from a business with my ex, and just gave it to her. I knew I was going to get into sales, but I wasn’t sure which avenue. A friend of mine who happened to be in Hyndai sales called me up and told me to check it out. So I came in, and here we are today.
manage it on a daily basis. We want it to be information of value, so we might have a day were it’ll be about insurance information, or something about maintenance, gas mileage, servicing, and things like that.
AS: On your Website, you’re selling yourself as a brand, independent of a dealership — how did you come up with that idea? RW: The dealership’s marketing is designed
AS: What would be your advice to a salesperson wanting to brand themselves in this fashion? RW: Do it! And the weirder or stranger it seems, the better. You need to differentiate yourself.
to get people to come in the door. I figured it would be to my benefit to get them to come in the door, but come in the door and ask for
AS: How do you decide what goes on it? RW: There’s a schedule laid out to make it as professional as possible. My friend helps me
AS: Do you use the information you’ve gathered at the site? RW: I do e-mail blasts on a regular basis.
Everyone’s doing the same thing, waiting around. I’m not going to be that guy who waits around for the “up” bus to come — “ups” are only the 20 percent closing ratio. I want to play with the better numbers. I’d rather make calls and have people coming in asking for me. Get online – the Web’s where it’s at. You need to market yourself like it’s your own business, because it is.
Making sense of your digital operations and BDC numbers can be
overwhelming.
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www.pcgconsultingservices.com/azmot
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CONSULTING
PogoParr
leadership solution
why should i
buy from you?
The Internet is overflowing with articles, videos and “top 10” lists on how to buy a new or used vehicle. Today’s savvy car shoppers have access to feature, safety, mileage and pricing information before they ever contact your dealership. Why should they buy from you?
While buyers may choose a make and model based on Internet information, their decision about where to buy is largely based on how you make them feel about your dealership. You need to
begin building a trusting relationship from the initial phone call or e-mail exchange. Keep in mind that each buyer probably has a list of dealerships that offer the same vehicles you do. It is up to you to make sure they choose to purchase from you. Because the vast majority of leads begin with a call, you need to train your employees how to properly handle the phones. It is critical that you record and review those calls. If you use a tracking service, you can also capture valuable contact information about each caller — including their phone number — and you can measure the effectiveness of each marketing campaign you run. Some tracking services also alert your managers each time a call to your dealership results in a missed sale or service opportunity. Hundreds of auto dealers currently rely on these alerts and successfully save numerous deals every month. For those of you who already use a tracking service, are you getting full value from it? Have you increased qualified traffic? Are you setting more showroom appointments? Studies show that when a specific appointment is set, buyers are more likely to show up at the dealership and are much more likely to buy there. Beginning with initial telephone call and continuing during the showroom visit, you need to demonstrate to the customer the benefits of purchasing a vehicle from you. What can you provide for them that other dealerships cannot? Why are you their best choice? Set the tone and set the appointment. When customers visit, make sure they feel good about your customer service and the way you operate your dealership. They can take a test drive, learn about finance options you may offer and meet your staff. This is where you can set yourself apart from you competitors and seal the deal. The showroom visit is your chance to shine!
Pogo Parr is the vice president of sales for the auto division of CallSource. He can be contacted at 866.690.2139, or by e-mail at pparr@autosuccessonline.com.
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autosuccessonline.com
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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Get service you can count on. At TD Auto Finance, we’re committed to helping you grow your business. And we go to great lengths to meet your needs. You can submit deals seven days a week, and we offer rates and policies that are among the best in the industry. You also get the expertise of our dedicated Dealer Relationship Managers, who work with you to customize business plans and maximize profitability. It’s just what you get from a financing partner with over 45 years of experience.
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Part of the TD Bank Group, a Aaa-rated bank ranked as one of the safest banks in North America.
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. For detailed credit ratings for the The Toronto-Dominion Bank and TD Bank, N.A. visit http://www.td.com/investor/credit.jsp. Credit Ratings are not recommendations to purchase, sell, or hold a financial obligation inasmuch as they do not comment on the market price or suitability for a particular investor. Ratings are subject to revision or withdrawal at any time by the rating organization.
Success Story
Red McCombs Ford Up 24 percent in Sales, Red McCombs Ford Kicks-off 2012 by finishing No. 1 in San Antonio Want Red McCombs Ford results? Red McCombs Ford is no stranger to success. A member of Texas’ premier automotive group, the Red McCombs Automotive Family, Red McCombs Ford started off the year by finishing No. 1 in the San Antonio market it serves. While the dealership had been experiencing a positive trend throughout 2011, averaging a 10 percent increase in sales over 2010, a shift in their marketing strategy in late November had the dealership outpacing itself for both December and January with a 24 percent increase in sales over the same period the previous year – while Ford was up just 5 percent nationally for January. Implementing a new targeted and digital marketing strategy across multiple mediums to attract, sell, service and retain customers has helped jump-start McCombs’ sales for 2012.
“Our sales are up 24 percent over the same period last year, but we’re actually up 160 percent within our top-selling zip codes because we took steps to more clearly define our audience within our primary market,” says Shawn Barry, general manager of the red mcCombs Ford store. like many dealers in large metro markets, red mcCombs faced the ongoing challenge of how to reach the right customers with the right message, bring those customers into their showroom and service bays, and keep them coming back again and again. Dealers often struggle to deliver an affordable and consistent message to the right consumers in their local market without spending excessive
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Success Story ä Continued froM the Cover
marketing dollars soliciting the masses that are not in the market for the vehicles they sell. mcCombs Ford sought to reevaluate their marketing strategy and more clearly define their ideal local market – within two months time they are seeing improved results. mcCombs Ford began with a comprehensive five-year historical analysis of their sales and service transactions to determine customer trends. Those findings were then compared to leading third-party and industry data to establish consumer patterns within the local market. The results enabled mcCombs to identify vehicle owners with the greatest
probability of buying or servicing with their dealership, as well as identify same-brand owners who had never visited red mcCombs Ford, and offbrand owners with a historical pattern of crossing over to Ford. Once mcCombs had more clearly defined their market, they implemented a comprehensive targeted and digital marketing strategy using variable direct mail and email campaigns that consistently speak to customers throughout the 60 month life cycle of their vehicle with custom messaging that includes: a thank you and welcome message for recent purchasers, maintenance reminders for newer vehicles not yet in-equity but that may be due for recommended maintenance,
iNtegrateD prOMOtiONal MaterialS
and ongoing targeted mail and email sales communications to customers in an equity position. Using highend creative campaigns, mcCombs promotes its best sales offers with custom service offers that reflect the service status of the customer’s vehicle. For example, active service customers who routinely come in for service receive a $34.95 “The Works Oil Change” coupon, but customers who are categorized as lost, or who do not regularly service with mcCombs, receive the same offer but for $29.95 to encourage them to come back.
red McCombs ford mcCombs also aggressively targets conquest service customers within their primary marketing area who own Fords but did not buy from them. This is unique because most dealers use the manufacturer’s service marketing program which often limits a dealer to only communicate with customers that have purchased directly from their store, but also limits the dealer from contacting numerous conquest opportunities within their market. If a dealer only has 30 percent market share, they are essentially missing out on an additional 70 percent of the area’s service market. mcCombs Ford recognized the opportunity to broaden its service marketing program with conquest and has greatly expanded their reach of potential service customers. another component to the mcCombs strategy is that every outbound targeted mail and email campaign directs customers to an online Campaign Conversion Site that not only displays the featured promotions of the mail or email campaign they have just received, but also shows them every sales and service offer that mcCombs is currently running. If a customer is not in the market for the specific offers they receive in the mail or by email, they can check the mcCombs’ campaign site, www.SaFordOffers.com, for other available offers. “This site is already proving to be invaluable. It looks incredibly professional, it ties in with all our sales and service promotions and we’ve seen an increase in the customer traffic printing coupons from the
site,” says Barry. “Plus it’s completely low maintenance for us because it’s updated every month by our marketing company.” In addition to their targeted and digital campaigns, mcCombs also recently implemented a unique strategy that specifically targets vehicle sales within their service lanes. This program, the “Vehicle exchange Program” is integrated across mcCombs’ web site, campaign conversion site, the showroom and service lanes, as well as their direct mail. “The key to this program is the confirmation call that our call center places to confirm the customer’s service appointment. If a customer is in an equity position, our call center informs them that they are eligible to upgrade into a new vehicle for the same payment as their old vehicle,” explains Barry. “So rather than wait and hope that the customer will buy from us when they’re ready, we proactively try to sell the customers in service before they enter the market and shop our competition.” “The best customer that any dealer can find is one they already have because customers who have an active service relationship with a dealership are seven times more likely to purchase with that dealership,” says Budd Blackburn, owner of Team Velocity marketing, the company that red mcCombs Ford uses for their sales and service marketing. an added benefit to sales and service marketing strategy is a healthier trade pattern. “We’ve seen a noticeable improvement in our trade pattern. Since switching strategies we’ve
www.SaFordOffers.com
brought in 37 percent more late model trades, 2008s-2011s, compared to all of last year where we brought in less than 10 percent late model trades – this is ultimately a big savings for us, not having to overpay at auction,” says Barry. To measure the effectiveness of all their marketing strategies and ensure quality customer care, red mcCombs Ford uses a call-monitoring system to track their advertising, employees, and how their customers are treated by listening to every call that comes into their dealership. They receive daily, weekly and monthly reports that enables them to see which ad campaigns generate the best response and preempt any potential customer concerns before they escalate – which improves their overall CSI and helps create lifelong satisfied customers.
Success Story
Success Story red McCombs ford “Our sales are up 24 percent over the same period last year, but we’re actually up 160 percent within our top-selling zip codes because we took steps to more clearly define our audience within our primary market.”
+160
% 2011*
Shawn Barry
general manager
+24
%
Overall SaleS Compared to same time period, December 1 through January 31
2010*
In a nutshell Up 24 percent in Sales, red McCombs Ford Kicks-off 2012 by Finishing No. 1 in San antonio – want red McCombs Ford results? •
Define your ideal local market by finding customers and prospects with the highest statistical probability of buying and/or servicing with your dealership now and in the future.
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Implement an integrated targeted and digital marketing strategy across multiple mediums that promote all your profit centers, new, used, finance, service and parts.
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Create dynamic, cohesive campaigns that consistently speak to your customers throughout the 60 month life cycle of their vehicle.
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Consistently target in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands they sell.
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establish a sales-in-service program to sell vehicles from your own service bays for your in-equity customers before they shop the competition.
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monitor inbound calls so you know what ads are generating better response rates and preempt CSI issues before they escalate.
å read fuLL Story