BUILDING A CULTURE OF
SUCCESS
2016
SEPTEMBER
Camp Chevrolet Cadillac GM Steve Hoggle Brings Patience, Accountability and Partners to Prepare for the Future.
this is
Amazing things happen when three powerhouse media companies merge to become one.
The Power of Three.
SpectrumReach.com
Convert more leads into showroom traffic (no humans required)
Don’t waste time chasing leads. Our automated sales assistant reaches out to all your leads, determines which ones are ready to buy and alerts your Sales team with the right phone numbers and best times to call.
BOOK A DEMO NOW AT
CON.AI/DEMO-AS
888-778-1004 info@conversica.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
sales & training solutions
SUCCESS
leadership solutions
10 DennisMcGinn THE SEVENTH-INNING STRETCH IN RECON’S RACE FOR RELEVANCE 14 K.C.Loughlin THREE INVENTORY MANAGEMENT STRATEGIES: Don’t Get Caught Off Guard DalePollak
A THREE-PART PLAN TO MINIMIZE AGING, AUCTION-PURCHASED VEHICLES “As I share these retail-focused best practices with dealers, I’ll ask a pointed question: The next time you go to the auction, will you be planning for retail or planning to fail?”
26 DealerPanel KEEPING UP WITH THE TIMES: The Impact of Change, PART ONE 42 AdamRobinson INCREASING THE ROLE OF WOMEN IN RETAIL AUTOMOTIVE
08 SusanGivens CHECK IT AT THE DOOR 16 JoeyLittle CHANGE ABSOLUTELY NOTHING: Five Easy Ways to Lose Touch with Today’s Shoppers 20 JordanBentley BUSTING MYTHS ABOUT IMPROVING SALES TRAINING 28 JackGarrity JOHN HIESTER UNIVERSITY: New Types of Hires, New Ways to Sell
Hannah Philpott, Media Director hannah@autosuccessonline.com
marketing solutions
THE FOUR ESSENTIAL MARKETING TOOLS EVERY AUTO DEALERSHIP NEEDS
ValerieVallancourt
“While these tools may sound intimidating, the manual methods most dealers are still using today are actually a lot more work, often more expensive and always less effective.”
30 CodyFishman STAYING IN THE GAME: Live Chat’s Role in the Evolution of Online Shopping 34 JeremyAnspach WHAT DEALERS CAN LEARN FROM BACK-TO-SCHOOL SHOPPING TRENDS
Brian Ankney, Account Manager brian@autosuccessonline.com
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.
BUILDING A CULTURE OF
Dave Davis, Editor & Creative Strategist ddavis@autosuccessonline.com
“A major challenge for dealerships is bridging the wide range of preferred communication styles of these different generations...”
Susie Horne, Account Manager John Warner, Sales-Improvement Strategist shorne@autosuccessonline.com jwarner@autosuccessonline.com
THE ART OF FOLLOWING UP AND MARKETING AUTOMATION
22 PeterMartin
DIAL-IN PHONE SKILLS WITH CALL RECORDING AND MONITORING
36 JackBehar
Thomas Williams, Creative Director design@autosuccessonline.com
CONTACTING YOUR CUSTOMERS WHERE THEY ARE COMFORTABLE — AND LISTENING JasonGirdner
Susan Givens, Publisher sgivens1@autosuccessonline.com
12
ADMINISTRATING & RETAINING CUSTOMERS SINCE 2004.
LIFETIME
ENGINE
LIFETIME POWERTRAIN
- In-House Sales & Service Training Monthly
EVERYTHING
You Need In
ONE ADMINISTRATOR!
- Increased Closing Power Plus Retention - Seamless DMS Integration with Sales & Service
800.717.4988 | DealershipForLife.com
s&ts sales & training solution
SusanGivens
publisher of AutoSuccess \ sgivens1@autosuccessonline.com \
CHECK IT AT THE DOOR
@SGivens02
It’s impossible to completely separate your personal life from your career — every moment of your life informs the other moments, and sometimes those moments feed off each other. Things are going well at home? Business seems that much simpler. Getting beaten down on the sales floor? It’s hard to be in your best mood when you get to your front door.
equipped to take advantage of that opportunity. Leave the details of past mistakes in the past, and take with you the lesson of how to avoid that mistake or add to your skillset to make the most of the future.
That being said, the attempt to check your home life at the dealership’s door and to leave business at your office when you come home is essential. Dividing your focus prevents you from really focusing on anything.
Schedule Your Personal Life
Embrace the Ritual
Rituals play a key role for the human mind. The act of getting ready, eating breakfast, driving to your work and the other actions you take to get ready for the day clue your mind in that it’s time to go to work. It’s time to get focused on the task at hand. You’re going from one mode of your life — your home life — and transitioning into another — your work life. Make sure your rituals are helpful in getting you into work mode, though. Eat breakfast to provide your brain the fuel it needs to get up and running. Get things ready the night before so you’re not rushing around and start the day off in a panic. Give yourself the best chance to have a great day, and don’t get in your own way. Shake it Up
That being said, sometimes it can be good to change things up from time to time and break yourself out of the ruts that may be limiting your creativity. Take a new route to work now and then. Stop for coffee at a new place. Listen to a new podcast on the way in. Try someplace
new for lunch. A different perspective can be refreshing — and may even jolt some new ideas. Take Your Vacations
Ever get that feeling like your mind is an engine with dirty spark plugs? Do you ever find yourself being so thin-skinned that everything seems to be a crisis — even things you know would be “no big deal” most of the time? It’s easier to get into the business mindset when you’re feeling sharp, and to do that, you’ve got to give yourself opportunities to recharge. If you believe you’re too indispensable to take a break, you might want to reconsider how you’ve built your work life. Also, if you’re that valuable, you’re also too valuable to not be at peak performance. Your brain needs a break, your body needs it and your team needs you at your fighting best. The spirit is willing; let the flesh catch up occasionally. Learn the Lessons, Leave the Details
Understanding failure is a key to success; internalizing failure is not. After a tough day when you’ve learned tough lessons, leave your doubts at the door the next day and know you’re better and more experienced than you were the day before. Each day is a new opportunity, and every experience you’ve had — positive or negative — is making you better
There are times when your personal life will not be ignored. If there’s a crisis in the family, you’ll need to attend to it. If at all possible, however, schedule those times when you’ll need to make a call, run an errand, make a visit or otherwise step away from work. If you don’t have a set time to do those personal things, a part of your mind will be constantly churning on them, stealing your focus without you even realizing it. By setting times to deal with things that must be dealt with, you’ll be able to focus on your tasks at work and still get things done.
“Understanding failure is a key to success; internalizing failure is not. After a tough day when you’ve learned tough lessons, leave your doubts at the door the next day and know you’re better and more experienced than you were the day before.”
Choose Hörmann High Performance Doors for
Service and Shop Entrance & Exit Doorways We have the solutions Hörmann High Performance Doors Contact us today ▶1-800-365-3667 / 1-724-385-9150 / www.hormann-flexon.com / info@hormann-flexon.com
08 read, listen, watch, share, succeed.
Meet the
EVERYDAY SUPERHEROES of automotive chat and text.
80% 75% 20%
Chat-to-Lead Conversion
Leads with Phone Numbers
Leads with Preset Appointments
UNRIVALED RESULTS ARE JUST
A CALL AWAY.
1.800.441.7779 activengage.com/chat-superhero
ls leadership solution
DennisMcGinn
founder & CEO of Rapid Recon \ dmcginn@autosuccessonline.com \
@DennisMcGinnrr
THE SEVENTH-INNING STRETCH IN RECON’S RACE FOR RELEVANCE
If the history of vehicle reconditioning were a baseball game, it’s now the seventh-inning stretch. Anyone who’s sat through six-and-a-half innings in stadium seats knows its function — to stretch, catch one’s breath, and prepare for the game’s final critical innings. Dealers have been playing recon for many long innings now, and frankly, their teams are not looking good. Their processes are costing them too many errors, and they’re not putting runs on the board as they should be. At this seventhinning stretch, I am suggesting the coaches reconsider the teams they field, work on their fastball and get better at performing the basics. In recon, the team that generates the highest profit per vehicle and does so at the lowest reconditioning cost wins the series. And make no mistake, you’re always in the playoffs — with strong competitors out to eat your lunch. Study Your Game Films
Ask your service or recon manager to evaluate the recon department’s play and they’ll inform you they’re in the Majors. Yet, when stats are put to their performance, most departments are playing at “Double-A” level. A few will have developed into “Triple-A” players, but only a handful are actually ready for the Big League. To improve, focus on skills development. Better understand recon’s flow from vehicle acquisition to a vehicle’s reconditioned placement on the retail used car lot. Establish rules for the time you allow for each phase of reconditioning flow of work. Fine-tuned this way, recon moves from being a cost center to a profit center. The relevant recon center easily keeps up with inventory needs and requires significantly fewer days to do so. This highly productive workflow, when leveraging continuous improvement practices, looks like this when applied to reconditioning:
Dealers who begin using recon workflow software to manage, track and report on recon’s individual steps learn their shop’s actual efficiency is more often eight- to 10-days — or greater. The Right Line Up
For this strategy to bear these results, it’s critical teammates are at the right positions and know the rules. This table summarizes these positions and their output requirements; you may need to adjust resources to achieve best practices: WHO Advisor & Technician Used Car Manager
• Improved gross margins result because reduced holding costs equate to less erosion of sale total. A “sale” gross of $2,300 is actually $2,108 for a vehicle having consumed $192 of opportunity in an inefficient recon department. • For every 2.5 days shaved off your recon cycle, inventory turn increases by one. A more-efficient used car operation turning inventory faster enjoys higher grosses on more units sold.
WHAT
CLOCK TIME BEST PRACTICES
Inspection, RO, Mechanical
Four Hours
Approval
Under 15 Minutes
Dispatch Advisor
Shop Loading, Project Mang.
One Hour
Detail
Cosmetic Detail, Delivery Prep
Four Hours
Digital Specialist
Online Photos/Web Upload
Four Hours
Every action in the game must support Timeto-Market (TTM) objectives. TTM defines the time required to get inventory on-boarded into the reconditioning department, reconditioned through all phases and ready for retail. If the goal is to retail used units within the magical 30 days, you can’t waste half of that time in recon. TTM software provides clarity and transparency into each step in the recon process. When you can clearly see where productivity, dollars and time leak from your processes, you can address and fix them faster. Relevancy for the Future of the Game
Reconditioning workflow organizes, structures, and accelerates the many reconditioning steps, managing all according to strict clock times to achieve a three- to five-day input to output goal.
By achieving and consistently holding to improved TTM, these benefits typically flow out: • Reduced holding costs • Improved gross margins • Increased inventory turns • Fewer units wholesaled • More engaged players • A more-competitive dealership
Put a stopwatch to old game films — your old recon processes — and prepare to be shocked. Most believe they’re moving vehicles through recon in five days or less, but the clock doesn’t lie.
Here’s what I mean: • Holding costs is a daily cost of $32 per vehicle in recon, part of each car’s share of dealership overhead, floorplan, advertising
10 autosuccessonline.com/news/blog
and similar expenses. Shave six recon days off 100 units and recon saves $19,200 a month, or $230,400 a year.
• Faster recon, particularly when recon is centralized — so it is not sharing assets with retail service — can be successful at reconditioning older vehicles for the retail lot, rather than taking wholesale losses. • Processes run and managed by recon workflow software build a rhythm that creates happier teammates. Satisfied workers stay put longer. • Dealerships having developed a TTM culture — and especially those having moved to centralized recon for groups of two or more rooftops — will flow more revenue to the bottom line. Improved efficiencies that reduce costs are a double play that extends savings to retail so the dealership can be more competitive in its vehicle pricing. How Abner Doubleday’s game is played can teach us much. Over the years, reconditioning has played six-and-a-half innings with little change-up. In this seventh-inning stretch, recruit new ideas that’ll invigorate your team and reduce costly errors, so you put more margin dollars on the scoreboard.
The Longer you Look At This Ad The Worse Your Current CRM May Appear
The World's First Mobile 1st CRM! It utilizes artificial intelligence and business intelligence all in one.
Drive360® CRM Enhances Efficiency and Increases Competitiveness Drive360® CRM provides simplicity and accuracy no matter if you are a single- or multi-rooftop dealership. It features a suite of modules that automatically aggregate all of your dealership’s real-time data into one place, giving you the power to see what is happening as it happens. Drive360® CRM is a powerful tool that allows you to manage your inventory, sales, showroom, leads and even marketing from one screen, either on your desktop or in your hand. It allows you to create accurate reports that provide you with the information you need as soon as you need it. The Drive360® CRM suite contains the automotive CRM industry’s first and most comprehensive CRM reporting tool.
RICK MCLEY
ABC MOTORS
Award Winning
CUSTOMER MANAGER
SALES AUTOMATION
INVENTORY MANAGEMENT
BUSINESS DEVELOPMENT
DESKING TOOL
USED PRICING
SERVICE MANAGEMENT
PART MANAGEMENT
DIGITAL MARKETING
REPORT MANAGER
SMS/MMS TOOL
SOFTPHONE TELEPHONY
Available on All Platforms (Web and Mobile Apps)
LOGOUT
ABC AUTOGROUP
Fastest Launch Time In the Industry (7 Days in Most Cases)
(888) 762-7407
CRM
DRIVE
360
®
2300 N Western Street | Amarillo, Texas 79124
www.drive360crm.com
When Steve Hoggle moved to the West Coast earlier this year to take over the general manager position at Camp Chevrolet Cadillac in Spokane, Washington, he knew there would be changes to make as the new leader. The trick — figuring out what worked, what didn’t, what could be improved, and what partners were the best fit to help achieve his ultimate goal: increase sales, gross and market share by providing customers the same exceptional experience throughout every facet of the dealership.
GETTING STARTED
Having a grandfather who owned a salvage and parts company in Tuscaloosa, Alabama, Hoggle was no stranger to cars. The idea of selling cars for a living turned into a reality during his college years. “College wasn’t that exciting for me, but opportunity was,” he said. He learned one of his friends in school had found success selling cars, so Hoggle decided to try his hand and became quickly hooked. “Once you get into automotive retail, and see what you can accomplish through hard work, training and the right attitude, it gets in your blood,” he said. The 20 years of hard work paid off as Hoggle’s path eventually led him to Camp Chevrolet Cadillac. The move did not come without some challenges. The Lithia Motors-owned dealership is located in a highly competitive independent market, in addition to several well-run franchise dealerships in the Spokane Valley. With his goals in mind, Hoggle’s road to growth focused on three key areas:
• Placing the right people in the right roles with a strategic focus on the market’s personality • Giving his team the right tools and processes to reach the overall goals
BUILDING A CULTURE OF
SUCCESS Camp Chevrolet Cadillac GM Steve Hoggle Brings Patience, Accountability and Partners to Prepare for the Future.
• Creating buy-in and a customer-centric culture of leadership, teamwork and accountability — a reason customers would rather come to you before anyone else
And the numbers show the game plan is working. While the Spokane new car market is currently up five percent, thanks to Hoggle’s leadership and vision for the dealership’s business model, Camp Chevrolet has outpaced the market, achieving a 19 percent increase in sales, with gross profit up 61 percent on the front end at 21 percent in finance. While results are important, patience — and hard work — are often required when trying new ideas and technology. “If things don’t immediately work out, you’ve got to be flexible with the process, and push yourself not to return to the old way of business,” Hoggle said. “In this industry, we come up with a lot of great ideas, but we have a problem of not letting things progress. We can be so locked in on month-to-month results that we sometimes revert to old process out of fear, instead of letting it progress and become successful.”
HOW HE DID IT
The first thing Hoggle did was put his house in order. He quickly evaluated his team and the business culture and realized he had some great employees who really care about the store and, more importantly, the community. Instead of the standard closed-door, one-on-one interview process, Hoggle spent time with each employee to listen and learn more about their motivations, capabilities and professional/personal goals and then aligned them with his processes and vision for the dealership. “Customers need to have the same experience in every department, and this is achieved through process — whether it’s shopping for a new vehicle, purchasing one or service repair/ maintenance,” Hoggle said. He next moved to a highly critical review of existing operations and reporting processes. Hoggle identified and fixed operational problems quickly by asking these questions:
• Why am I changing this? • Can I track the results to measure success?
• How can I get the team involved and create buy-in?
One of his main goals was increasing new car market share, but without sacrificing gross. For six months, he evaluated how much gross each department could produce using the correct processes. After establishing a baseline, he could work backward on some expense items to make sure at the end of the year they maximized the net-to-gross number. Pinpointing the right technology to provide more robust business solutions and a communication platform was essential to help give customers a better experience, from lead nurturing and closing the deal to retaining for service and next car purchases. “Whatever vendor we use, in any part of our dealership, we have to make sure they are a partner,” Hoggle said. “One thing I love about our vendors is they give us honest feedback. We, as humans, tend to shy away from that; we want to hear the accolades. What we really need to hear, however, is how we can improve as a team and as managers. As far as making changes, establishing a level of trust within the dealership, where employees know the leadership has their best interests at heart, is the foundation for buy-in when creating a positive culture. Before I ever make changes to the technology that our staff uses every day to succeed at their jobs, I gather input from all departments — good and bad. Everyone has a voice. This creates a high level of buy-in and helps alleviate any complaints once the change is made. Lithia Motors also gives us an excellent analysis of the vendors they recommend that have proven to be a good fit and provide the best technology to align with our processes.” When a new process or technology is introduced, however, Hoggle knows that it’s useless unless it’s adopted successfully throughout the dealership. “We hold people accountable from Day One,” he said. “With
any new process, you have to be patient and flexible during implementation. How a vendor or process works at one store might be different in another. The great thing about the vendors we partner with is that they give us great metrics that we can use to measure specific KPIs and goals we have set. Generally, if our processes and vendors are strong, then 30 to 60 days later, our people are starting to see the positive changes brought on and, most importantly, the increase in their pay checks.”
PARTNERS TIE IT ALL TOGETHER
ELEAD1ONE has been a key partner to Camp Chevrolet Cadillac, providing CRM, marketing and the sales technology. To take Hoggle’s vision to the next level, the company helped fine-tune the sales and marketing processes in place by providing the tools needed to increase productivity and connect with customers in a quicker, more-effective way. Camp Chevrolet Cadillac can now track the customer throughout the entire customer lifespan, uniting every component of the sales and service experiences from a single, comprehensive view. The tightening of the sales process brought increased productivity for the sales team, and in turn, increased customer satisfaction. Floor Manager David McCaughey said, “For our sales team, I’ve realized that it has really helped them speed up the sales process, especially in the write-up. Time is the most important thing to the customer; it is the most valuable thing to them. ELEAD1ONE has really helped us cut time from that process — all the way from the greeting to the delivery.” Because all the customer information is contained in a single view, the teams are able to work together in marketing, sales and service. The teams know, if a sales opportunity was missed, how the customer has been marketed to, what happened in service and when, and even when a
“The great thing about the vendors we partner with is that they give us great metrics that we can use to measure specific KPIs and goals we have set. Generally, if our processes and vendors are strong, then 30 to 60 days later, our people are starting to see the positive changes brought on and, most importantly, the increase in their pay checks.” customer is available to upgrade to a new vehicle with a better payment. As a result, the store is selling more new cars than ever. “We all have different ways of defining success; in our business, obviously a healthy bottom line is never a bad thing,” Hoggle said. “I’m proud to say that Camp Chevrolet Cadillac has had a 33 percent year-over-year increase, but I define success [as] when we can help any team member be better than they were yesterday and focus on constant improvement, both here and in their personal lives. If we can do that, we’re successful. We try to create a culture of ‘be where your feet are,’ which means whatever you’re doing at that moment, be the best you can be at that time.”
LOOKING AHEAD
If the past year is any indication of success, Hoggle said Camp Chevrolet Cadillac is ready for whatever the future has in store. While auto sales have started to slow from their 2015 record highs, Hoggle stated that many GMs had expressed a cautious approach to an uncertain automotive marketplace, but he is keeping an overall positive outlook. “There’s still an incredible opportunity out there,” he said, “but we, as GMs, can never forget the lessons of ‘07 and ‘09 — we always need to be aware of how we’re running our stores, keeping an eye on the basics, and be conscious of our expenses.” Hoggle’s approach to the continued growth of his team, in sales, and in maintaining a positive customer experience can best be summarized by a very blunt lesson learned earlier in his career. “One of my mentors always said to run a dealership like it’s broke, as far as expenses and accounts receivable, no matter how well you’re doing,” he said. “It boils down to ‘Don’t be sloppy,’ and that’s great advice for any general manager.”
ls leadership solution
K.C.Loughlin
sales director for DealerSocket \ kcloughlin@autosuccessonline.com \
@DealerSocket
THREE INVENTORY MANAGMENT STRATEGIES: Don’t Get Caught Off Guard
Most experts have predicted a shift in sales from new cars to used in the coming year. With this influx of pre-owned merchandise on the way, it is imperative you have a strong inventory management strategy in place to stay ahead of oversupply and optimize your used car operations. Here are three inventory management strategies to keep your cars moving swiftly through the inventory lifecycle. Back to the Basics
With the undersupply of inventory in the last several years, many dealerships have been lulled into a false sense that all they need to concern themselves with is pricing and marketing. Buy it, price it right and customers will come. Barring glaring issues, this model works when supply is tight. However, with supply coming back, moving inventory won’t be that simple. A shortsighted mindset, centered only on pricing and marketing, has led some dealerships to lose sight of the fundamentals: appraisal process, retail strategy, stocking decisions and effective management of aged inventory. Dealers need to do an internal health check and make sure they are managing their whole inventory process effectively.
People Aren’t Just “Customers” or “Prospects” They’re Human Beings
Outsell’s NeuroMotics® Brain tracks every individual’s behavior across the automotive web and engages people at the right moment in their lifecycle to move them to your dealership.
Contact Outsell to Learn More OUTSELL +1.612.236.1500 | info@outsell.com | www.outsell.com
14 success-driven solutions
Appraise Intelligently
The most common yet avoidable mistake is made on Day One: either owning the wrong car or owning the right car for too much money. We all know that cars are depreciating assets with a finite window in which they make you profit. You must know the car you are buying. Walk the car. Review the CARFAX reports. Review your sales history and the market data, both retail and wholesale. There is no substitute for a strong appraisal process. If you take in a trade and it’s not a fit, make that decision on Day One. Don’t pour money into recon and then arrive at that conclusion on Day 45. Prepare for Oversupply With These Three Steps
With analysts predicting that used vehicle supplies will continue to increase, there are three steps you can take to manage your usedcar business when there is an oversupply: Step 1: Be smart about what vehicles you buy and choose to retail. Don’t just look at mileage, condition, age and history. Pay attention to supply, particularly off lease. Step 2: Be thorough and attentive in how you merchandise and price your vehicles in the market, particularly if they’re in high supply. Don’t price yourself way out of the market on the high side or the low side. On the high side, consumers will question your integrity. On the low side, they’ll think something is wrong with the vehicles. Step 3: Stay on top of aged inventory, and move swiftly. Increased supply is not a shortterm problem. Look at tightening up your aging policy, instituting one if you don’t have one already or have been lax in enforcing it. The longer you wait to deal with an aged unit, the bigger the wholesale loss.
s&ts sales & training solution
JoeyLittle
director of digital & social engagement for AutoAlert \ jlittle@autosuccessonline.com \
CHANGE ABSOLUTELY NOTHING : Five Easy Ways to Lose Touch with Today’s Shoppers
No one has to change. After all, it’s hard. So lots of dealerships decide to just skip that part and stick with what they know. That’s understandable. For many, it’s worked for a long time. And maybe it will keep working. Except when it doesn’t. The good news is you’ll always have a few customers who are comfortable keeping things old school. The bad news is businesses that resist change will be faced with more and more customers who are turning to new and innovative ways of doing things — which means they’ll get overlooked by progressive, fast-paced shoppers. When it comes to their automotive needs, modern consumers are looking for dealerships that can keep up with their needs and still provide a positive and personalized buying experience. Simply stated, the future belongs to those who sharpen their skills and focus on innovative solutions to better serve their customers. Blaze a Path or Stand Your Ground?
While there’s something to be said for standing your ground, it won’t always get you where you want to go. Imagine if Henry Ford had planted his feet, crossed his arms and said, “Horses are fast enough. We don’t need cars.” Instead, he decided to blaze a path and ended up coining the famous quote: “If I had asked people what they wanted, they would have said ‘faster horses.’” His eye for innovation and his visionary spirit are characteristics that are still alive in the
d
@SocialLittleMan
automotive industry today — and no matter the manufacturer, his point rings true. When you offer up the innovation your consumers need, you’ll stand out as a leader in the market. You’ll encourage growth. Dealerships that resist growth and change become stagnant, so if you’re looking to do that, change absolutely nothing. Here are five quick ways — but I don’t recommend them: 1. Ignore technology. Most of your customers
rely on it now, and they expect you to have the tools and capabilities to help your staff meet them where they are in their shopping journeys. Dealerships that ignore technology will fall behind.
2. Doubt the data. Innovative businesses rely
on analytics to guide them and let them know when they’ve made a right turn — and likewise, when they need to correct their paths. Those who brush aside valuable analytic insights will be playing a guessing game.
3. Stick to land lines and intercom
systems. Successful dealerships today are implementing interactive communication platforms to help them improve workflow, all-around communication and customer service. Businesses that ignore the
importance of innovative communication tools will fall behind their competitors. 4. Withdraw from social media. Dealerships
that are doing a booming business are likely building highly active social media platforms. They’re gaining more followers by sharing relevant content, interacting with consumers and building lasting relationships. The ones focusing on those important relationships are bringing more customers through their doors to buy.
5. Sell the old way. Innovative dealerships
are focused on actionable data that lets them know exactly who’s ready to buy, what makes and models are being shopped and even if specific shoppers are in equity situations. These are the dealerships that are working smarter, not harder. They already know who is likely to buy — and they’re going for those leads. Dealerships that continue to blindly sift through every lead will take longer to accomplish less.
Change is absolutely one of the most difficult things a dealership can navigate; however, today’s marketplace is full of savvy consumers who demand innovation, as well as fast-paced businesses that can meet their needs. You’ll stand out from the crowd when you invest in your dealership and in your entire team, and you’ll be able to offer a personalized experience for your valued customers. Don’t lose touch with your shoppers; it’s time to innovate.
Create, Manage & Print Addendums Simple to Use Print in Seconds DMS Integration No Software to Install Affordable - Month to Month Compliant & Customizable Free Trial Gets 50 Free Labels
800-231-7124 http://dealeraddendums.com
16 autosuccessonline.com
Sign up for a trial TODAY!
Want to reach more people? Text messaging by is the answer!
Let customers know they can communicate with your dealership via text message and watch the leads generated from your advertisements grow by over 30%!
GIVE IT A TEST DRIVE! TEXT “SELL MORE” TO (855)614-8080
WWW.TECOBI.COM
ls leadership solution
DalePollak
founder of vAuto \ dpollak@autosuccessonline.com \
@vAuto
A THREE-PART PLAN TO MINIMIZE AGING, AUCTIONPURCHASED VEHICLES
“What happened?” That’s a question that comes up frequently as I review aged units in dealers’ used vehicle inventories. In particular, the question is intended for the sizable percentage of auction-purchased vehicles that have become aged units. In many cases, more than half of the age- and profittroubled vehicles came from auctions. Inevitably, as dealers and used vehicle managers answer the question, I hear the story behind every car: • “We got this one below MMR and figured it wouldn’t miss.” • “It’s the right car, but it’s the wrong color (or equipment).” • “We paid too much because we needed inventory. Since we overpaid, we over-priced.” Ultimately, these stories mask the real problem — the lack of a defined, and consistently executed, retail-focused plan for every auction vehicle. This retail-focused plan addresses three critical questions that reduce the risk of auction purchases becoming aged cars: Is this the right car? — Dealers apply varying degrees of depth, detail and discipline to determining if a particular auction vehicle is the right car for their inventory and market. The best dealers rely on inventory sourcing technology and tools to help them instantly identify the vehicles that make the most sense. The tools help dealers objectively assess each vehicle’s Market Days Supply, a metric that indicates how quickly a vehicle will sell based on the same/similar number of competing vehicles available in the market and the past 45 days of retail sales.
Over time, the tools also help dealers become extremely astute about the particular characteristics — color, equipment, condition, mileage, history, etc. — that make one vehicle stand taller as a retail unit than another, even if the cars share the same make, model, year and other attributes. In the end, dealers who diligently discern if a vehicle is “right” will mitigate the risk of acquiring the wrong car and creating a poorperforming retail investment. As the general manager for a Nevada VW dealership put it recently, “Today’s market is always changing, and buying low Market Days Supply vehicles is the best way to hedge your bets against getting burned.” What’s the right price to pay? — To answer the question, dealers use technology and tools to help them assess each vehicle’s Cost-toMarket metric. The metric identifies the spread between the costs associated with owning the vehicle (e.g., the purchase price, inspections, reconditioning, transportation, etc.) and the prevailing retail price points for the same or similar units currently available in the market. When dealers conduct this analysis, they have a clear-eyed view of the front-end gross profit potential a vehicle offers as a retail unit, and the purchase price they can pay to achieve it. I recommend that dealers strive to consistently acquire auction-purchased inventory with a
Cost-to-Market of 84 percent or lower — a benchmark that leaves a maximum of 16 percent (and more likely 8 percent) margin for front-end gross profit. To be sure, today’s highly competitive market may require dealers to sometimes pay more than they’d like to acquire an auction vehicle. But even in these scenarios, retail-focused dealers will know that if they pay $X to acquire the vehicle, they will likely make $Y when they bring it home. What’s my exit strategy? — Dealers who master a retail-focused approach to acquiring auction inventory designate the exit strategy for a particular vehicle as soon as the gavel falls. They know the initial retail asking price. They know how much money they expect to make on the vehicle. They know how quickly they’ll get the car reconditioned and retailready, barring any unforeseen circumstances. They know every auction vehicle is a timesensitive investment. “We’ve learned the hard way that you have to pay extra attention to auction cars,” said a Midwest Ford dealer. “We strive to get every vehicle online within hours of acquiring it, and out of the shop in less than 48 hours. We also religiously monitor each vehicle’s Price-toMarket position, and make adjustments based on how long the vehicle’s been in our inventory, its online performance and competing units. We know that if we don’t retail these vehicles within 30 days, there’s little or no gross profit left.” As I share these retail-focused best practices with dealers, I’ll ask a pointed question: The next time you go to the auction, will you be planning for retail or planning to fail?
SOCIAL We want to feature YOU! Send us a quality photo of you with AutoSuccess, along with a brief testimonial and we’ll post it!
email your entry to iloveAS@autosuccessonline.com today.
18 read, listen, watch, share, succeed.
C No all No U w Sta pfro for We ffed nt Co a st T Ev the ake ent-
a w for st o N l l Ca Co front tp U n No d Eve L e ff a St AL
ake We T isk! the R
Ris ALL k!
Lou Fusz Automotive Network, led by (from left) Lou Fusz III, Randy Fusz, Peter Fusz and Patrick Fusz, now leads the state in used car sales, according to Automotive News.
“Thanks to our partnership with The Best Direct Group, we’ve jumped more than 20 spots on the Automotive News rating and now lead the state of Missouri for used car sales ” - Pete Fusz, Vice President and COO for the Fusz Automotive Group
TRAINING
STAFFED EVENTS STAFFED EVENTS
DIRECT MAIL
BUSINESS INTELLIGENCE
MAIL ANALYTICS
ANALYTICS DIGITAL
DIGITAL TRAININ
The Best Direct Group, your preferred partner in sales and service growth through direct mail, staffed events, and business intelligence.
THE BEST DIRECT GROUP TOLL FREE 855.223.7267 | EMAIL INFO@BESTDIRECTGROUP.COM ADDRESS 250 N. ORANGE AVE, SUITE #990, ORLANDO, FL 32801 | WEB WWW.BESTDIRECTGROUP.COM
s&ts sales & training solution
JordanBentley
national sales manager for Callbright \ jbentley@autosuccessonline.com \
@855Callbright
BUSTING MYTHS ABOUT IMPROVING SALES TRAINING
There are some deep, important questions that the Discovery Channel TV show MythBusters pondered during its 13-year run. Questions like “Can an airplane take off from a treadmill?” or “Can you make a giant, rolling ball out of LEGOs bricks?” or even “Why does everything taste like chicken?” As a lover of food and cooking, I can confirm that not everything tastes like chicken (or at least it shouldn’t), but I have to applaud the MythBusters crew for tackling questions like these. However, I think the show missed out on the chance to bust some auto dealership myths. I’m not talking about the question of whether cars get better mileage with the air conditioner on or off; the MythBusters team actually addressed that one. I’m talking about the myths surrounding sales training and how they’re actually holding dealerships back. I might not be bald or have a spiffy handlebar mustache like MythBusters host Jamie Hyneman, but I’m going to bust some big myths that have kept you from improving your training methods. Myth No. 1: It’s Not Worth the Cost
If most of your sales reps haven’t been around more than a year, you’re probably thinking improving your training isn’t worth the cost. While NADA has reported that dealership revenue keeps climbing, total profit margins haven’t and sales rep turnover is a staggering 72 percent. You have limited resources, a training program that works well enough (doors are open and lights are on, right?) and the understanding that your reps will leave in a matter of months. Why invest more in your training program if you can get by as is? You likely already know that even basic training will create results. The Corporate Executive Board Company says routine coaching helps sales reps exceed goals, boost revenue and increase close rates. However, an improved training program isn’t just about boosting your sales. When job performance increases, so does job satisfaction, which the American Psychological Association says is one of the top reasons employees stick with a job. The Bridge Group reports that an average company spends $10,000 to $15,000 hiring an individual, so that’s a cost you’re eating every time one of your reps leaves and you try to find another one. The savings associated with better training and employee retention outweigh the cost of frequently having to find new sales reps.
20 autosuccessonline.com/videos
You should develop training methods based on the results of routine performance reviews so you can see where an employee is struggling and what needs to be changed. Regularly reviewing employee performance helps keep your training program from using a canned “one-size-fits-all” approach. When training is targeted and helps employees work on specific areas of improvement, your training program’s success rate will be higher since the training will benefit employees and they won’t feel like they’re wasting their time. Once your reps experience success with your dealership, they’re less likely to move on, which helps justify your investment in training. Myth No. 2: The Sales Rep Is a Dying Breed
We’ve all read the doomsday predictions that franchise dealers will fade away and buying a car in the future will be as simple as clicking a button on a Website. Everything is done online, they say. People don’t want to haggle with sales reps, they say. According to DealerRater, new-car buyers are visiting just one to two dealerships before completing a deal. These days, customers do most of their research online, avoiding interacting with sales reps until the last possible moment. Why invest in improved training methods if your sales reps are being reduced to paper pushers? While your Internet team has probably been doing well the last few years, you and I both know that your focus has always been to get the customers in the door. Turns out, that’s what customers want, too. According to a recent Autotrader study, 84 percent of respondents said buying a car in person is still the preferred approach, and 43 percent see the dealership as a place to learn. Customers aren’t going to the showroom just to have a sales rep present them with the monthly payments. They want to validate the information they researched online and to learn about special
offers, warranties and deals on service. According to the same Autotrader study, price negotiations might be evolving with the times, but they’re here to stay. Many customers simply prefer starting the deal-building process online, before they ever step foot in the store. Training your sales reps for interacting with customers online and over the phone is crucial to meeting today’s customers’ desires. Sales reps aren’t dying — their role is just changing. Myth No. 3: I Don’t Have Time
So you’re starting to see the error of your ways. You’re investing in your training program and emphasizing meeting customer needs in today’s sales climate. But finding ways to improve your training takes a commitment to collecting employee performance data — whether from call recordings, email exchanges or customer satisfaction surveys — and reviewing that data to find areas that need improvement. I can’t emphasize the importance of reviewing data enough. While collecting data is a step in the right direction, it doesn’t do you much good if you don’t actually use it to improve your training program. The problem is, these things take time, and you don’t have time. So your lack of time isn’t really a myth, but thinking that training isn’t worth the investment just because you don’t have the time for it is. Hiring an outside service to review whatever data you’re using can take that headache off your plate and help you do what you do best — that is, manage your dealership. Of course, outsourcing carries its own cost, but these specialized services can extract the best training opportunities from your data and give you the best bang for your buck. Many times they’ll even find things you might have missed in your rushed efforts to review your employees’ performance data. Proper training is a crucial part of building a successful sales team. Buying into myths about training not being worth the time or money will just perpetuate problems like sales rep turnover. It’s time for you to bust these myths and start improving your training programs.
“Proper training is a crucial part of building a successful sales team. Buying into myths about training not being worth the time or money will just perpetuate problems like sales rep turnover. It’s time for you to bust these myths and start improving your training programs.”
MULTIPLESCREENS
ONEADVERTISING
SOLUTION
Search
Display
Social
Fixed Ops
Video
Car shoppers aren’t just looking at one source online before they make their buying decision. They’re visiting over 20 sources online before making a decision. Our SmartAdvertising® solution provides a fully unified platform that reaches car buyers in your market across all devices, screens and ad mediums.
PureCars.com/autosuccess Email@PureCars.com
Sell More Cars With PureCars
(877) 860-7873
ms marketing solution
PeterMartin
CEO of Cactus Sky Communications \ pmartin@autosuccessonline.com \
@CactusSky
THE ART OF FOLLOWING UP AND MARKETING AUTOMATION
Why did dealerships build Internet departments and BDCs? Because sales teams with the influx of Internet leads were incapable of following up with every lead. Now, with an average of 20,000 unsold leads sitting in the dealership CRM, BDCs lack the manpower to follow up with every single lead. That is where marketing automation comes in. According to Adestra, marketers report that the biggest benefits of marketing automation are: • Saving time (74 percent) • Increased customer engagement (68 percent) • More timely communications (58 percent) • Increased opportunities, including up-selling (58 percent) Marketing automation takes the legwork out of follow up and can be executed immediately. For example, a prospect clicks on “New Vehicles” on your Website, and they are automatically sent a personalized welcome message from a sales associate inviting them to take a test drive. Or if a prospect clicks “Value My Trade,” they are sent a special offer for an extra $500 toward their trade. Clickers and Website visitors are warm prospects — give them the extra nudge with marketing automation.
22 success-driven solutions
Software Advice reports that 42 percent of CRM users plan to increase spending in marketing automation. If your CRM does not currently support marketing automation additions, your email marketing provider probably has a marketing automation option available.
rates than “business as usual” marketing messages (Pardot). Prospects clicking on links or visiting your Websites are hot prospects — they are interested in your dealership. Follow up before your competition has a chance to.
Here’s an example of how to use marketing automation for your dealership: A prospect receives a sales email from your dealership with links to “New Vehicles,” “Pre-Owned Vehicles,” “Value My Trade” and “Service Coupons” on your Website. Based on what links they click, you can use marketing automation to follow up The average sales cycle has increased 22 with targeted letters related to their interest. percent over the last five years, according to SiriusDecisions. Car buyers typically spend one Take it a step further and send follow-up messages to Website visitors and re-visitors to three months conducting research, reading online reviews, and showrooming online before based on what pages they viewed. they ever set foot inside of a dealership. How Marketing automation can be easily integrated long does your BDC follow up with leads? into your current email marketing plan. This is One week? Two weeks? Until hundreds of the most effective way to follow up with every more leads come in at the end of the month? lead and never let any prospects fall through Marketing automation simplifies the process. the cracks. If you would like to learn more about marketing automation solutions for your Triggered email messages average 70.5 percent higher open rates and 152 percent click-through dealership, please contact me.
ms marketing solution
ValerieVallancourt
director of marketing for Outsell \ vvallancourt@autosuccessonline.com \
@Outsell
THE FOUR ESSENTIAL MARKETING TOOLS EVERY AUTO DEALERSHIP NEEDS
For many years, dealerships could get by with a CRM system with generic email blast capabilities. Today, generic tools don’t cut it. In the age of Amazon, Netflix and Facebook, customers expect personalized, timely and relevant content. To that end, here are the four essential tools every dealership should have in its arsenal.
Tool No. 1: Automated, individualized
email campaign solutions — (sometimes called email marketing, marketing automation or campaign management). This tool enables dealers to set up and run multi-stage automated email campaigns. Follow-up campaigns can also be automated depending on a recipient’s response. Impact: Customers who engage with targeted email communications are six times more likely to purchase from that dealer. Furthermore, the average linked gross profit per dealer, per month from those communications is $22,000. Analyses show that dealers report anywhere from four to 14 additional vehicle sales per month, plus 50 to 200 additional repair orders (ROs) per month, ensuring that email campaign solutions more than pay for themselves. Dealers also reported a 22 percent increase in customer retention among customers who engaged. Tool No. 2: Buyer detection — This is a relatively new category of services and tools that help dealerships determine when a person is actively in market for a vehicle, and for what kind. Buyer detection leverages data from multiple sources — online data across the automotive Web and click data and offline data from your CRM and DMS — to give dealerships insight into which brands and models a person is exploring, and how close they are to purchase. This helps salespeople focus their efforts on consumers who are most likely to buy. Impact: A recent analysis of dealers leveraging buyer detection methods found 87 average additional in-market buyers identified per dealer, per month. In addition, dealers achieved a four-fold percent increase in conversion rates for leads over 90 days old – meaning they were reviving unsold leads with little-to-no effort. Buyer detection also identifies owners coming
back in market and who may be likely to buy or service. Approximately 24 percent of owners coming back in-market purchased within 90 days of being identified. Only 54 percent came back to buy at the previous dealership and 13 percent of those owners bought the same manufacturer at another dealership, demonstrating that dealers are losing in-market buyers to their competition. Tool No. 3: Third-party prospect lists —
The use of third-party prospect lists — either purchased or rented — is still alive and well. The key is to use lists that are pre-screened to
there are industry-specific tools available for automating much of this work, including 24/7 monitoring of popular review sites such as Cars.com, DealerRater, Yelp, etc., cross-posting dealer content to multiple social networks, and sentiment analysis for determining the tone (positive, neutral, negative) of third-party posts. Impact: Dealers who actively manage social media are able to increase followers by an average of 62 percent. They are also able to increase content shares by 42 percent, and “Likes” or the equivalent by 62 percent. Because social media is often a first stop for car buyers, it’s crucial that dealers stay on top of their online reputation, stepping in as necessary to respond to posts or reviews, and sharing positive content to outweigh the inevitable negative content some customers will post.
“While these tools may sound intimidating, the manual methods most dealers are still using today are actually a lot more work, often more expensive and always less effective.” contain only prospective car buyers (rather than, for instance, all residents in a certain ZIP code). These lists may cost more to purchase or rent, but because they are highly targeted, dealers will see improved conversion rates. Moreover, service providers in this space can design and execute precision-targeted multi-wave campaigns for dealers, with email deliverability management. Deliverability is often overlooked when evaluating solutions, but provides a huge benefit for dealers, since very few have expertise in optimizing emails for deliverability. Impact: Dealers utilizing these services achieve average open rates of 3 percent, with a 9 percent click rate — far higher than average rates for generic campaigns. Tool No. 4: Automated social-media management. Virtually every car buyer relies on social media at some point in the carbuying journey. Yet keeping on top of social postings and social media reviews — much less responding to them — would be more than a full-time job if done manually. Fortunately,
DealerElite and AutoSuccess Present:
Less work, More Effective
While these tools may sound intimidating, the manual methods most dealers are still using today are actually a lot more work, often more expensive and always less effective. Auto dealers know they need to move from sporadic, generic email blasts to a more automated, structured and individualized communications process — but they struggle with how to do it. These essential tools help dealers make that leap, enabling them to adapt their marketing outreach to the unique life stages, emotional needs and behaviors of individual consumers, and engage with them in a way that is individually effective. Dealers who are new to these methods can ‘’set it and forget it.” As they gain experience, dealers can craft more customized, individualized communications. In either case, these tools are likely simpler than you think to implement, and the pain of staying the course with your existing marketing is certainly more expensive than the cost of improving it.
DEALER PANEL
THE Turn to the NEXT PAGE for more... 24 autosuccessonline.com
dp Chris Saraceno Andrew DiFeo
the DealerPanel
KEEPING UP WITH THE TIMES: The Impact of Change
For decades, dealerships knew what tools worked for them. In today’s tech-laden world, though, the very tools sales professionals use are evolving, and threaten to leave those not willing to adapt in the dust. For the next three issues, we’ve asked our Dealer Panel about the changes they’ve seen in the industry — both in their sales process and in the customers they sell to — and how they keep up.
James Ochner, GM of I-10 Toyota: The biggest change I have
AutoSuccess: What’s been the biggest industry change you’ve experienced? Andrew DiFeo, GM of Hyundai of St. Augustine: I’ve been in the business for 18
AS: How do you keep up with changes and developments? AD: It’s a hyper-competitive marketplace out there. Not only do we
Jeremy Abramson
Mike Good
years, and the biggest change I’ve seen is that the industry is now an efficient market, where the buyer and seller have equal amounts of information, primarily due to the Internet and the ease of access to information. Prior to that, it was an inefficient market, where the seller — the dealer — had the information, making it difficult and inefficient for the buyer to do the same — and that made it more advantageous for the seller versus the buyer. Now, the playing field is leveled.
Chris Saraceno, VP and Partner of Kelly Automotive Group: I think it’s harder now to
attract the right talent to work at the dealership — people with the skill set needed to excel in today’s business. What you don’t want is the traditional person who’s been in the industry for the past 20 years, selling seven or eight cars at their dealership, coming to your dealership because the previous company is making him use the CRM and follow a process; then, he comes to your dealership and doesn’t want to do it. Our culture has always been to attract people who are open minded, customer focused and computer/ tech/social savvy. It has to be intrinsic in their character that they want to take care of people.
James Ochner
one
part
Mike Good, GM of Street Toyota: The biggest
change in our industry has been the impact of Internet access, technology and information. All three have changed how OEMs, suppliers, vendors, dealers and end users interact within our industry. The speed, impediments and overall complications have necessitated elevated staff competencies on all levels. Customers are more thoroughly prepared with greater degrees of information prior to and during visits to the marketplace. Jeremy Abramson, GM of Brandfon Honda: I believe it’s the use of technology in the car buying process. While I never believed in tire kickers, the shopper — as well as the shopping experience — has definitely changed. The process has moved primarily online; from the “build your own” tools on factory and dealer Websites to the pricing comparison sites to the review sites, consumers can do the bulk of their research on the car, dealer and pricing before they ever step foot in our store. When they do come in, they may still have some of the typical “knee-jerk objections,” but they are more prepared than ever before to make a buying or leasing decision.
seen in the last 25 years is the ease and availability of information for consumers. Customers can get information on vehicles, parts and service all at the touch of a button. People can take virtual test drives, read multiple reviews on not only the product but the dealership and even a specific sales consultant, they can watch videos on YouTube about DIY repairs and search wholesale parts stores all while getting ready for work in the morning.
have to deal with competitors of same make and different make, we now have some new players in the market, especially on the used car side of the business. I’m always looking outside of the car business at other successful industries to see what’s working for them. For example, I like to examine the digital retailing efforts of companies such as Amazon and Zappos to see where they’re having success. I also try to attend as many industry-related conferences as possible, especially ones that provide speakers from outside the industry. You can gather a wealth of knowledge there, as well as great networking opportunities. I also try to stay on top of reading as many publications as possible, both automotive and non-automotive related.
CS: We read AutoSuccess every month, we get on DealerElite, we’re always looking through Automotive News, we’re going to conferences, all because we have a paranoia of falling behind. We always need to know what is the next “latest and greatest” product out there. We’re also continuously talking to our vendor partners and telling them “Hey, here’s what this dealership’s doing. Here’s a new tool they have.” We keep in mind, however, that tools are great, but If you don’t have the right people, the tools don’t make a difference. It still comes down to the right people who want to use the tools you’re providing them and investing in. MG: I try to stay abreast of online developments and trends. The days of one person’s expertise in every area being sufficient to keep the dealership on top are gone. A good GM or dealer must depend on key experts overseeing various projects and departments while pursuing leading-edge strategies and technologies. Anyone claiming to have all the answers is sowing the seeds of disaster. A more sophisticated brand of leadership dictates the importance of administrative, organizational and motivational proficiency, all swathed in humility and compassion. JA: Read, read and read some more. There is no shortage of information being thrown at us on a daily basis. Tons of emails, blogs, articles, LinkedIn messages, Facebook posts and magazines get delivered to us throughout the day. I have a handful of “purveyors” of information I follow regularly, who provide industry-related information, and I try to read as many books as possible. Whenever I am reading a great book on leadership or management and the author references another great book, I make sure to add it to the list. Contrary to popular belief, audio books count, too; I use my commute to listen to a book a week. JO: In order to maintain a competitive advantage, it is critical that you
educate your entire staff and equip them with tools and techniques that are needed to deal with the age of information. Attending seminars like the Dealer Digital Conference, NADA, NCM and Driving Sales can assist you and your staff understand new technology and develop best practices used by top dealerships across the country. Next, How have customers have changed — and how haven’t they?
If you have questions or are a dealer who would like to be considered for the panel, please contact us at thepanel@autosuccessonline.com.
THE
DEALER PANEL
CONNECT THE DOTS TO INCREASED REVENUE. WE’RE THE ANSWER. In a business world filled with distractions and chaos, there is one thing that is critical, and that is to connect. When you connect with your customers, you do more than talk, you create a positive customer relationship that leads to continued business and repeat revenue. When you connect open slots in your shop to customers needing repair, you’ve created a great customer experience, and more revenue. And when dealerships connect to the most relevant information on a customer’s vehicle captured through our process, business intelligence has now connected you to even more revenue. Begin connecting today by engaging Traver Connect’s robust Automotive Service BDC. Now, every service call will be answered, OEM recommended services will be presented, and an increase in service appointments will be made. This Service BDC helps absorption, increases your average repair ticket, and enhances your overall customer experience.
To connect is to succeed, and we will help you do it. Afterall, ‘connect’ is our last name.
For a free phone survey, contact us today: 855.891.0010 • TraverConnect.com
s&ts sales & training solution
JackGarrity
partner at Dealership for Life \ jgarrity@autosuccessonline.com \
@Dealership4Life
JOHN HIESTER UNIVERSITY: New Types of Hires, New Ways to Sell
John Hiester started operating his first Chevrolet dealership 14 years ago and did $12 million in sales. Today, he operates two Chevrolet dealerships and a Chrysler Jeep Dodge store with sales of approximately $300 million. Effective customer retention training has been key to this growth. In the past few years, John noticed things were changing — the way customers found dealerships, that they were coming in armed with far more information and that they wanted a different kind of experience when they arrived. Other industries were attracting college-educated, career-minded individuals to adapt to this new type of consumer. Unfortunately, most of these people wanted nothing to do with car sales. Three years ago, John decided to find out what he could do to attract these individuals. He invited several interns to share their fears and feelings about the car business and found three common themes. First, he learned that Millennials feared negotiation. Second, they did not want to worry about a variable pay plan. And finally, they did not like the stigma of being in car sales. Further, he learned that many needed to justify a career choice to parents or others with a designated career path. John decided to create positions in his dealerships that would remove these fears and create a clear path for advancement. John created a “product specialist” position strictly to demonstrate vehicles to customers. The BDC sets appointments for customers to come in and, after the manager greets the customer, a product specialist
Breaking Down Barriers to Digital Car Sales
helps the customer find their perfect vehicle, demonstrates it and takes them for a test drive. The specialist is not compensated if the vehicle is sold; their only goal is to be a servant and to do a great presentation. The product specialist does not negotiate the deal. When the customer returns from the test drive, they sit down with a manager to make the deal. The product specialist is the first of seven levels that eventually lead to F&I school and a position in management in as soon as 18 months after being hired. “I promoted a sales manager to GSM and had to hire an outside replacement from another dealership. I never wanted to have to go through that again,” John said. He knew that having people properly trained in customer retention and satisfied with their position within the company was crucial. “One of our first steps was to bring on board a partner that trains our people for every customer touch point to maximize retention,” John said. How did John put together this career path and decide the type of candidates he wanted to hire? He started by having a one-day offsite meeting with all of his managers. He asked them to list the three people in the organization who, if cloned, would make it possible for them to dominate the industry. Once they decided on the three people, they were asked what makes them special. They determined these individuals all got their tasks done, were professional servants and had both character and integrity. This provided the blueprint for the type people John wanted to hire to grow his organization. Today, all hiring and firing decisions are made based on this blueprint. “We seek individuals who match us,” he said, “not just people who are good at their job.” John’s pastor told him, if he wanted to do this, to not to do it small. John created a separate logo and a complete curriculum. Now, new hires first must attend John Hiester University. During this time, they are paid to learn to be product experts and study a written, repeatable process. John has a 55-page manual and several books that are required reading before new hires can join the team on the floor. “I have GMs in all four of our locations today,” he said. “My role is to teach leadership to our candidates. We have a common vocabulary in our organization.” The sales floor is still split with the new product specialists working alongside salespeople who were with him before this new program. Customers working with a product specialist close at 37 percent compared to the salespeople’s 28 percent. The profit is higher, as well. This new system has worked so well in sales that John decided to try it in service. The traditional role of the service writer was to sell services. People who are good at sales are often bad at follow-up, causing the customer relationship to suffer. John references a Dave Anderson quote: “It’s hard to teach a horse to climb a tree. You need to hire a squirrel.” John now has three product specialist for every two service writers. The service writers still sell service, but are now compensated on the overall shop. The product specialists are on salary and keep customers in the loop through the process, from entry through diagnosis to repair to completion. “We just started this two weeks ago, and it is already cost effective and being well received by our customers,” he said.
Download the whitepaper: nakedlime.com/resources/whitepapers
28 read, listen, watch, share, succeed.
The John Hiester University has become an integral piece of the organization and is allowing John to attract young, talented college grads into an industry that most would have never considered. John’s goal is retain every customer with a superior ownership experience — and now he has the people and retention partner to make that happen.
ms marketing solution
CodyFishman
marketing intern for ActivEngage \ cfishman@autosuccessonline.com \
@ActivEngage
STAYING IN THE GAME: Live Chat’s Role in the Evolution of Online Shopping
Everything is completely different about how we shop these days. Whether you have your coupons emailed to you every week, or you use a mobile device to price match potential purchases, everything about shopping revolves around technology. Consider Amazon, a quarter-trillion dollar company that has climbed to its level of success because the buying process is so darn easy. You sit at home, browse through items at your leisure, add the desired item to the cart and pay, then wait for that new phone case to be dropped off at your door. Amazon’s buying process is not only simple, but it’s also proof that consumers love buying services and products online. Even the car buying process has gone digital, with startups like Beepi, Carvana and Vroom selling purely online without physical dealerships. All of these companies offer delivery services with a seven-day test ownership policy. But Vroom has even gone as far as to offer a no-haggle pricing strategy. Why is this important? Not only do customers love the Amazon/eBay shopping style but, unless you start investing in your customer’s online experience, you’re going to keep losing sales to the online car buying alternatives. A New Breed of Shoppers
Consumers may have fallen in love with the convenience of online shopping, but today’s shoppers are a picky bunch. This is mainly due to the fact that the majority of online shoppers in the U.S. are Millennials and Generation Z (the mobile-first generation). These generations have grown up with technology, so they’ve become accustomed to an eCommerce way of life. Millennials and Generation Z are impatient because quick access to goods and services has been commonplace in their adolescent and adult years. For example, e-readers became hugely popular with students during the early 2000s because books could be bought and accessed with the touch of a finger. Being a Millennial myself, I may have some personal bias here. But if your Website is outdated and not user-friendly, you’re setting your business up to fail in today’s market.
30 autosuccessonline.com/podcasts
Thanks to the Internet, prospective customers judge your company before ever stepping inside your physical location, and they have no remorse for switching to the competitor with the swank Website and cool gadgets.
Live chat can bring life to your online venue. You see, Web visitors are virtually anonymous, and there is no way of contacting them unless they fill out a lead form, call or drive into your lot. Asking customers to go further out of their way to find information while they’re on your Website is just asking for your bounce rate to increase. Again, online shoppers are impatient and want answers now.
As a customer, I want the swank Website, and I want the cool gadgets when I’m shopping online. Those are the things that pique my interest and show me “this company might be different” because I’ve done the whole shopping online vs. in-store shopping comparison. By far, shopping from my comfy couch outweighs the hassle of instore shopping. And I know I’m not the only one.
This is where live chat pulls ahead of the pack with online lead conversion because it is the only solution that allows online shoppers to get real-time assistance, right when they need it. In fact, live chat is so effective that companies such as AutoNation, Carvana, AutoTrader and almost every OEM offer it at their digital dealership.
“Live chat may be the online communication tool of the future, but it cannot make up for a poorly designed Website or the lack of customer service a shopper will face at your physical store. What live chat can offer is interactive and real-time assistance which, when combined with the proper follow-up processes, results in a stellar customer experience.” Think about it. Do you want to be standing in line for 30 minutes at Chipotle while your stomach begins to cannibalize itself because all you had to eat today was your morning brew of coffee? Or do you want to be the person who ordered their burrito bowl with extra guac on the Chipotle mobile app and gets to feast in a timely fashion? Bringing Your Website To Life
As I mentioned before, customers will judge your company up and down just from looking at your Website. You can’t really blame them since your Website is supposed to be a virtual representation of your business. As in, your Website should be a stark representation of the quality that your physical facility is capable of. The question is, how do you give customers an online experience to match your in-store experience?
I should clarify: Live chat may be the online communication tool of the future, but it cannot make up for a poorly designed Website or the lack of customer service a shopper will face at your physical store. What live chat can offer is interactive and real-time assistance which, when combined with the proper followup processes, results in a stellar customer experience. Still not convinced? Consider this: If live chat got you just one car sale a month, it would pay for itself. Take that into consideration at the next budget meeting and make your customer’s online shopping experience second to none. Besides, even if you don’t convert every shopper, the real-time assistance and plethora of resources available to your customers will leave a lasting impression in their top-of-mind awareness. And a positive brand association is the second-best outcome, aside from a sale.
Can you handle moving UP TO 15 or more EXTRA units this month? Ideal Direct, in partnership with Experian Automotive, now offers live credit driven data.
Targeted Direct Mail • Experian’s Exclusive “In the market model” – This list actually pin-points prospects in the market for a car. If you are looking for great lower tier prime and sub-prime prospects, this list works. We have had dealers sell over 40 units in a month. • Campaigns start as low as $.65 a piece.
Call 855-393-2666 today and get your market locked up.
For Special offers, “Like” us on Facebook Search Ideal Direct Ad Group or www.facebook.com/IdealDirectAdGroupInc
www.idealdirectadgroup.com contact@idealdirectadgroup.com
s&ts sales & training solution
JasonGirdner
CEO of TECOBI \ jgirdner@autosuccessonline.com \
@TecobiPower
CONTACTING YOUR CUSTOMERS WHERE THEY ARE COMFORTABLE — AND LISTENING
This year, more than 1.5 million vehicles are projected to be sold each month. Each. Month. With record sales numbers for auto dealers in 2015 and numbers for 2016 looking to be even better, is your dealership achieving record sales numbers as well? To take advantage of this boom time, it’s crucial that you get your message across more effectively to these customers who are going to buy cars this month, and one of the best ways to do this is via texting — a platform with which almost all these customers are comfortable using. Why is this
Ranked #1
in Dealer Satisfaction Two Years in a Row “We congratulate Autosoft on being recognized as one of the best-of-the-best by the people to whom their services count the most—the dealer community.” - DrivingSales CEO and Founder, Jared Hamilton
important? Because comfortable customers are buying customers — and they spend more. According to a Pew Internet Research study, Millennials are currently America’s largest generation, at about 75.4 million in 2015. Baby Boomers top out at just under that at 74.9 million and don’t forget the Generation X’ers. That’s a lot of potential buying power spread across three generations. A major challenge for dealerships is bridging the wide range of preferred communication styles of these different generations, from traditional advertising for older customers who may still read a newspaper to younger generations who have grown up in the digital age. What’s the solution? Texting. The previously mentioned Pew Internet Research study found that 68 percent of Americans in 2015 owned a smartphone. When given the choice, more than half of those people — 100 million Americans — choose to text rather than call. The majority of those texts are opened and read within five minutes of being sent. Largely overlooked by the automotive industry, texting is an effective way to reach more buyers. Look out into your customer waiting area. How many of those people are on their phones? More than 30 percent of smartphone users use them for vehicle purchases, and that number is rapidly trending upwards. With a solid texting strategy, not only can you retain customer loyalty, but you can also help to build new customers in an era in which the trendiest social media can change from month to month. Be careful, though; texting is also an area which your salespeople can easily take over if you are not in control of the process from the beginning. The last thing you want is a disgruntled employee leaving with a list of customers which he or she has been texting. Maintaining control of text conversations is one of many reasons why it’s important to have the aid of a qualified and experienced texting partner.
See why Autosoft is the two-time, consecutive winner of the Highest Rated DMS award and request a demo at www.autosoftdms.com/one. © 2016 Autosoft. All Rights Reserved. AS16-0140
32 success-driven solutions
An effective texting campaign leads to increased response times and more comfortable, well-managed and controlled conversations with your customers, which ultimately lead to more walk-ins and more vehicles sold. It’s imperative that you consult with a company that has not only expertise but the most up-to-date automotive texting technology as well to help you drive this portion of your marketing campaign. For reliable advice on a solid and savvy texting strategy, feel free to contact me.
ms marketing solution
JeremyAnspach
CEO & founder of PureCars \ janspach@autosuccessonline.com \
@JeremyAnspach
WHAT DEALERS CAN LEARN FROM BACK-TO-SCHOOL SHOPPING TRENDS
At first mention, back-to-school season may inspire thoughts of new backpacks, pencils and notebooks. While the event typically focuses on retailers, car dealerships can get in on the action, too. Like Memorial Day or tax season, back-toschool shopping is a major sales event, and auto marketers should be paying close attention to how shoppers conduct research and make purchases this time of year. Many dealers are already pushing makes and models with great gas mileage (for commuting to school) or a large truck and a slidable second row (for carpooling), but auto marketers can also learn how to better engage and convert consumers based on back-to-school shopping trends. According to recent research, here are some of today’s most common back-to-school shopping behaviors and how dealers can embrace these patterns to better sell themselves: Mobile is King
More than half of college students use smartphones to comparison shop. — Across many industries, consumers are turning to mobile devices for researching and purchasing needs. To get in on this action, dealers need mobile-friendly Websites that are easy to navigate. Likewise, auto marketers would be wise to invest in geolocation advertising technologies, which can leverage shoppers’ mobile behaviors and send them alerts and updates as they pass by a dealership. Seventy-nine percent of shoppers plan to use a mobile device while shopping in-store for back-to-school. — In addition to researching via mobile before purchase, dealers should be aware that car buyers are also using mobile to confirm information while onsite, too. With this in mind, dealers must make sure that onsite teams are up-to-date on sales information and car features/details. With mobile search powers available on the lot, shoppers can double check sales information at a moment’s notice, and even confront sales representatives when there’s disagreement. If this happens, customer trust and loyalty will suffer. In-store Still Matters
Eighty percent of college parents and 74 percent of college students are most likely to purchase supplies
34 autosuccessonline.com
fixed ops. For example, dealers can send text alerts to customers when they are in need of another oil change.
in-store. — To facilitate this trend, auto marketers need consistent ad copy that communicates continuity between the two worlds. What shoppers see online must be consistent with what is available for purchase on the lot. For example, a shopper will be extremely disappointed if she engages with an ad for the perfect red Toyota online, but finds that there’s no inventory left when she arrives at her local dealership.
What’s more, geolocation technologies can again enhance this engagement. Not only can a dealer communicate when a driver is in need of a tune up, but the alert can go out as that driver passes by the dealership, perhaps when commuting home from work. The real-time nature of this engagement creates urgency and can help dealers more easily earn repeat business.
Dealers should also streamline online and in-store marketing efforts by paying closer attention to market trends. During periods of economic uncertainty, shoppers will logically look to make more affordable purchases. Auto marketers can reinforce this belief by first promoting less-expensive makes and models (or car features like great gas mileage). Then, they can drive stronger ROI from online advertisements by having in-store representative push similar inventory.
Almost half of college students and 30 percent of parents with school-aged kids use social media to search for deals and coupons via their smartphones. — Popular social networks like Facebook and Twitter may seem foreign to some dealers, but they are a major opportunity for auto marketers to engage in-market car buyers. The proof is in the pudding. Nearly a fourth of prospective car buyers use Facebook to conduct research before an auto purchase, and dealers behind the curve on social engagement are clearly missing out.
Conversion is in the Details
When buying school supplies, price is the top consideration for 86 percent of parents. — When conducting auto research online, consumers typically shop by key metrics like price, make and model, color, gas mileage, etc. To capitalize on this behavior, dealers need Websites that are searchable by key characters, as well as the vehicle details pages that make it easy to compare makes and models. To grab shoppers’ attention further, dealers must generate online ad copy that centers on this information. For instance, price should be front-and-center for an advertisement found on Facebook and then clearly reiterated in any retargeting, social or video campaigns. Old Can be New Again
Thirty-nine percent of parents of children from kindergarten through high school say they will reuse last year’s items instead of buying new. — Many shoppers are in the market for new cars, but dealers can also drive revenue by focusing on fixed opportunities. Mobile is a fantastic technology for connecting with drivers around
Don’t Forget Social
To make the most of social, dealers must focus on generating ads with great relevance and value. Social has many benefits. First, it allows dealers to deploy highly personalized advertisements. Auto marketers can reflect a shopper’s previous search behavior in the content of a Facebook ad. Second, social is persistent. Car buyers are not likely to make this lifetime purchase quickly, and social channels allow dealers to repeatedly engage shoppers over time without feeling obtrusive. And third, as mentioned above, social easily aligns with consumers’ growing preference for mobile and facilitates the buyer’s journey from anywhere, at any time. With 2016 back-to-school season already underway, dealers should continue to develop a marketing strategy best suited to engage and convert shoppers. To win shoppers now and into the future, auto marketers must implement mobile strategies, align online and in-store sales efforts, highlight details and incorporate social channels as soon as possible.
FRONT-LINE READY IN 3 TO 5 DAYS!
Manage Your Recon Process Right From Your Smartphone
What Workflow Technology Can Do: • Upload photos of any vehicle reconditioning
• VIN-scan trade-ins for open safety recalls
• Real-time reporting on status, times & bottlenecks
• Automated daily updates on open safety recalls
• Locate vehicles through geolocation technology
• Get notifications when vehicle status is updated
• Update vehicle status with QR-code scanning
• Get approvals with the click of a button
• Manage vendors with automated tasks lists
Scan for a Demo
• 100% fitted to your particular recon process
FOR PRICING, INFO OR A LIVE DEMO:
Call, Scan the QR Code or Visit our Website
RapidRecon.com • 650-490-4460
MANAGING TIME-T0-MARKET AND HOLDING COST
FRONTLINE READY
s&ts sales & training solution
JackBehar
CEO of InterActiveTel \ jbehar@autosuccessonline.com \
@InterActiveTel
DIAL-IN PHONE SKILLS WITH CALL RECORDING AND MONITORING
What’s old is new again, at least when it comes to the old-fashioned phone call. Thanks to smartphones and the ease of clickto-call links, dealership phones are ringing off the hook, with calls now outpacing Internet leads four to one. Yet, a recent study from Dealix of more than 3,000 phone calls revealed that dealers missed opportunities nearly three-quarters of the time. A separate study from CallSource found that the average dealer converts only 8 percent of qualified sales calls into showroom appointments. That’s a problem, considering callers are typically low-funnel shoppers with higher close rates. In addition to hurting your bottom line, poor phone skills also hurts your reputation. The preponderance of social media means an unhappy caller can post a negative comment about your dealership any time of the day or night. In this environment, dealers who take their ringing phones seriously and train employees to follow an established process and script will reap the rewards. That’s why forward-thinking dealers are beefing up phone sales training and installing call recording and monitoring systems. These systems are the best training tools out there to help your staff handle calls more successfully, which in turn leads to more satisfied customers, more sales and better customer retention. Call recording and consistent monitoring can help your team: Deliver a consistent brand message — Like the majority of dealerships, your store likely
36 read, listen, watch, share, succeed.
has a motto or philosophy you live by. This brand message conveys your values and gets people excited about what you have to offer. However, it can only do that if you share it with every customer who calls. Capture leads and convert them to appointments — The ultimate goal of every call is to get the customer to come to the dealership. Yet the Dealix study found that 72 percent of dealers did not ask for an appointment. Of those who do, too many leave it up to customers to throw out a day and time — giving them the perfect opportunity to back out — instead of offering them some time slots. Suggest an alternative vehicle — How would your staff respond if a caller’s first vehicle of interest was already sold? Would they suggest an alternative vehicle? In the Dealix study, 35 percent of dealers did not. They let a great lowfunnel shopper hang up the phone and call a competitor. Don’t let that happen at your store. Prepare to answer common questions — Can your staff rattle off your service center hours? Can they give directions to your dealership? Do they know what sets your store apart from your competition? These are common questions and the answers should come easily to every staff member. Effectively handle unhappy customers — How does your team react when confronted with a dissatisfied customer? The right training
can diffuse a situation and maybe even earn you a repeat customer. The wrong response could end up as the subject of a nasty social media post that the world can read. When you’re ready to improve call handling with a recording and monitoring system, staff preparation can go a long way towards acceptance and even enthusiasm for this new training tool. Spring it on staff and you risk rebellion against a presumed “big brother” tactic. Before you roll out the system, call a staff meeting to explain the reasoning behind your decision. Point out the tool is there to help them succeed, not to punish them. Take the time to craft a plan that outlines proper responses to common customer inquiries and questions. The plan should also outline steps for call monitoring and feedback. Perhaps choose two calls a week — one positive and one negative — to review with sales, support and service respectively. Celebrate what is great about the first call, and offer constructive criticism on the second. If you are sensitive to the fact that everyone is learning, and avoid embarrassing or belittling team members, the message that call recording and monitoring is a helpful tool — not a punitive one — will resonate quickly. Today, when most buyers carry smartphones, an influx of phone calls is the new normal. Yet, too few dealerships train their staff on how to properly handle a customer on the phone. Be the store that handles every call promptly and professionally with the help of call recording and monitoring — you’ll reap the rewards in the form of more sales, higher customer satisfaction and greater customer retention.
SUCCESS STORY SEPTEMBER 2016 · NO 9
ERIC FREHSÉE
TAMAROFF MOTORS, INC.
1
HONDA
# DEALER
IN MICHIGAN HOW DID TAMAROFF HONDA DO IT? Å CONTINUED INSIDE
CONTINUED FROM THE COVER
Competition between auto dealerships in the Detroit, Michigan market is off the charts. Eric Frehsée, General Sales Manager at Tamaroff Motors, Inc., can look out his dealership’s window and see the neighboring dealership selling a lease on a fully loaded Jeep for $200 a month; the Hondas and Nissans Tamaroff sells are not even priced in that playing field. So, Frehsée knew he and his dealership would have to work harder to capture their market share and more. Strategic thinking and planning have played a huge role in helping to make customers believe in the brand, but it’s not an easy market. Detroit is the only market where Cadillac, Buick and Lincoln outsell Honda, Toyota and Nissan. This is a huge challenge for Tamaroff Motors. Over the years, Tamaroff Motors has had their fair share of challenges. The group is a family-owned business that was started by Marvin Tamaroff in 1969. In his time, he has sold every type of vehicle — from Buick to Rolls Royce. A true automotive pioneer, the 90-year-old Tamaroff still comes to the dealerships weekly to check in, ask questions and offer advice. He has an eye for the business and his passion has continued down the family tree. Marvin’s son, Jeffrey Tamaroff, is now leading the dealerships, along with his son, Jason Tamaroff and nephew, Eric Frehsée. The dealership has seen a lot of changes and a lot of growth over the years. They
have exceeded the competition in sales and most recently were named “The No. 1 Honda dealer in the State of Michigan.” The group has two campuses. The first campus, Tamaroff Motors Inc., has more than 22 acres that includes a Honda store, Nissan store, an indoor storage building, a leasing company, a photo studio, a body and collision shop, detail department and a shared service department. Tamaroff’s other location, the Jeffrey Campus, is 20 miles east and includes a Honda store, an Acura store, a Kia store and a Nissan store with a service department and parts and body shop for each. It also includes a photo studio. “The only thing constant in the business is change,” said Eric Frehsée, which is the mantra that helped develop the dealerships into what they are today. To survive the downturn and then take advantage of the rising market, many changes had to be implemented — and everyone had to be on board. It started with the dealership’s website. If you look at www.tamaroffhonda.com, you will find one of the most informative websites in the business. It took Eric and his team nine months to blueprint and execute this site. He wanted an online place customers could visit and get all the information they wanted — including price — so that when they were ready to purchase the vehicle, there would be no frustrations and all their frequently asked questions would be answered. This not only made for a happy customer, but it also provided his team with a new sales tool. They are able to guide the customer through the site in person or over the phone, all the while building their authority and value in the eyes of the consumer. This has been invaluable to the team.
“
“OUR GOAL IS TO BE THE NO. 1 IMPORT DEALER IN THE STATE”
“
SUCCESS STORY Ä
Eric Frehsée General Sales Manager Tamaroff Motors, Inc.
Once the website was complete, next came the strategic digital marketing plan. Tamaroff partnered with Team Velocity to target not just a large audience, but the right audience and send them the correct message to bring them to the store. This directed marketing is crucial because of the tight group of dealerships in a limited geographical space in Detroit. Being able to contact the perfect buyer in such a market may sound simple, but finding the right formula is difficult and finding a company specializing in this will save not only time, but money, as well. Another challenge that targeted marketing campaigns were able to overcome was to bring in lost customers. The Tamaroff Group had an array of customers in their database who, for whatever reason, had not been communicated with in a timely manner or were simply lost in transition. With the strategic campaigns and the right messages, Tamaroff was able to bring those lost customers back to the store and regain them as long-term clients.
TAMAROFF HONDA A complete marketing strategy also must deal with the service department. Tamaroff had many customers who were loyal to getting their service completed at the dealership but had never purchased a car from them. Team Velocity was able to set up a program to help turn those customers into repeat service customers, and Tamaroff car buyers, as well. “Having a partner as driven and cuttingedge as Tamaroff Honda continues to make our products and processes stronger,” said Justin Byrd, President of Team Velocity Marketing. “We continuously strive to be the perfect partner and deliver optimal results for the Tamaroff organization.”
The final piece of the puzzle was to get everyone on board. Team culture and support can make or break a company, especially when changing the processes and marketing within a company. Tamaroff has many seasoned team members who have been with the company for a long time, which says as much about Tamaroff as it does their loyalty. Thanks to the leadership skills that the dealership has honed over the past five decades, Tamaroff Motors has found methods to keep the team positive and ready to grow — even during challenging times. In some dealerships, team members who have been with a company for a long time get set in their ways and become unwilling
to change or try new ideas. By valuing flexibility in the face of new technology and ideas, Tamaroff not only became the No. 1 Honda dealer in the state of Michigan, but also the No. 1 Nissan dealer in the Detroit market. “Our goal is to be the No. 1 import dealer in the state,” Frehsée said. Thanks to smarter, more directed marketing and outstanding customer service, achieving that goal is well within Tamaroff’s abilities. To learn more about Tamaroff Honda and the strategies outlined in this article email: successstories@autosuccessonline.com
Hang Tags Email
Direct Mail
Online Display Ads
Point of Sale
Apollo Technology Platform
Mobile
Responsive Offer Site All of Tamaroff Honda’s targeted marketing is managed from a single platform. This allows them to deliver consistent branding and offers across all of their media channels and monitor the results from all of their campaigns from a single, web-based dashboard.
SUCCESS STORY
SUCCESS STORY
12%
UP
TAMAROFF HONDA
IN THEIR PERFECT MARKET IN 2016
1
#
HONDA DEALER
IN THE STATE OF MICHIGAN
17%
UP
FOR THE FIRST HALF OF 2016 (JAN - JUNE)
YOY
IN A NUTSHELL By valuing flexibility in the face of new technology and ideas, Tamaroff not only became the No. 1 Honda dealer in the state of Michigan, but also the No. 1 Nissan dealer in the Detroit market. ADAPT TO CHANGE - “The only thing constant in the business is change,” said Eric Frehsée, which is the mantra that helped develop the dealerships into what they are today. To survive the downturn and then take advantage of the rising market, many changes had to be implemented — and everyone had to be on board. STRATEGY - Tamaroff partnered with Team Velocity to target not just a large audience, but the right audience and send them the correct message to bring them to the store. This targeted marketing is crucial because of the tight group of dealerships in a limited geographical space in Detroit. PERFECT MARKET - Being able to contact the perfect buyer within the perfect market may sound simple, but finding the right formula is difficult and finding a company specializing in this will save not only time, but money, as well. With the strategic campaigns and the right messages in place, Tamaroff was able to bring lost customers back to the store and regain them as long-term clients. TEAM CULTURE - Tamaroff has many seasoned team members who have been with the company for a long time, which says as much about Tamaroff as it does their loyalty. Thanks to the leadership skills that the dealership has honed over the past five decades, Tamaroff Motors has found methods to keep the team positive and ready to grow — even during challenging times.
Å READ FULL STORY
ls leadership solution
AdamRobinson
chief hireologist for Hireology \ arobinson@autosuccessonline.com \
@Hireology
INCREASING THE ROLE OF WOMEN IN RETAIL AUTOMOTIVE
Despite of many organizations’ dedication to improving gender equality, the automotive sector has been slow to make progress. Research from Ernst & Young found that the share of women in senior and managerial positions in the automotive industry actually decreased from 17 percent to 16 percent between 2009 and 2013. As of 2015, just 18.5 percent of dealership employees were women, according to the National Automobile Dealership Association’s most recent Dealership Workforce Study. And out of that number, the vast majority — 91 percent — are in an office or administrative support position — leaving just 8 percent occupying high-priority roles. With an overabundance of male employees in the retail automotive industry, there’s an obvious disconnect between the buyer and the seller. Why Dealers Should Encourage Female Leadership
Women make up roughly half of the total workforce in the U.S., but this reality is not reflected inside today’s dealerships. Considering the shift that many dealerships are facing in how they operate, it’s increasingly important to improve diversity in the workplace. • Increasing Purchasing Power Women account for an ever-growing percentage of vehicle purchases, influencing 80 percent of car-buying decisions. For even more concrete evidence of the impact women are having on the auto industry, look no further than their share of new car purchases. According to J.D. Power, nearly four in 10 car purchases were made by women in 2013, demonstrating growth over the previous five years. Women are increasingly earning higher salaries, are marrying later and are deferring or choosing not to have children at all. This makes female car buyers a demographic with expanding influence on the direction dealerships take with retail operations.
“As of 2015, just 18.5 percent of dealership employees were women, according to the National Automobile Dealership Association’s most recent Dealership Workforce Study. And out of that number, the vast majority — 91 percent — are in an office or administrative support position — leaving just 8 percent occupying high-priority roles.” in brick-and-mortar locations. A more gender-diverse dealership will better equip your business with a clear understanding of what your customers want and how to develop processes that facilitate trust, strong customer relationships and loyalty. • Improving Dealership Performance The 2015 NADA Data report found that the total number of dealerships is increasing more quickly than each dealership is adding new staff. Meanwhile, total dealership payroll has been consistently growing over the past five years, meaning dealership employees are earning more on average.
The future of dealerships is skewing toward improving customer experiences. Certainly, a vehicle’s final price tag will always be a key factor in the decision-making process. However, the experience customers have from the beginning of their research phase to the final pen stroke on the agreement is becoming a true differentiator for dealerships.
If dealerships are continuing to increase the amount of money they’re willing to invest in their talent, shouldn’t they be investing more wisely? A growing body of research supports the claim that diversity helps enrich the performance of your business. A 2015 article from McKinsey & Company showed that gender-diverse organizations were 15 percent more likely to outperform other companies that have a more homogenous talent roster.
There’s growing competition for market share, requiring insight into your buyers’ decision-making process. Consumers want a transparent, seamless experience across all channels, including online and
By diversifying your dealership’s talent, you’re able to integrate a broader range of perspectives and insights about not only your customers but business practices, as well — compared to having a company
42 autosuccessonline.com/about-us
operated by people who all look, think and act in very similar ways. Changing the Way You Hire
According to research from Ernst & Young, 90 percent of automotive companies believe they need to adjust the way they’re recruiting, hiring, retaining and promoting talent — specifically, in the way they’re attracting women. Data from McKinsey & Company shows that women are largely relegated to entry-level positions, particularly in the retail sector, where women occupy 46 percent of entrylevel positions but just 13 percent of C-Suite roles. In other words, there are opportunities for women to get their foot through the door, but they face obstacles in moving up through the organization. Increasing the representation of women in retail automotive will likely require a shift in the way dealerships not only recruit talent, but the internal structures and policies they put in place. For instance, there needs to be a greater emphasis on clearly conveying your dealership’s culture and values. This fundamentally begins with your dealership’s career site. Including videos that showcase the workplace environment, the existing talent and the pathways for professional development on your career site is one way to effectively convey this information. At the same time, the job titles and descriptions you use can have a major impact on the type and quality of talent you attract. For instance, changing the name and function of a “sales consultant” to that of a “product specialist” is one way that many dealerships are improving participation among women. This improvement is due to the shift in work schedules and payment plans — moving away from solely commission-based pay and offering a five-day workweek. Improving benefits, including paid maternity — and paternity — leave are also considerations that will help dealerships increase gender diversity and improve performance. Keep the Momentum Moving Forward
While the retail automotive sector is behind in giving women a stronger representation in their payroll, there are dealerships that are making significant progress — and are witnessing the payoff in terms of lower employee turnover, improved sales figures and happier customers. In order to attract and retain the right people, dealerships must choose the culture and employment brand they’d like to convey, while ensuring their internal structures and hiring strategy reflects that vision.
WHEN YOU KNOW YOUR COMPETITION’S NEW VEHICLE INVENTORY BETTER THAN THEY DO,
THEY’RE NO COMPETITION AT ALL.
Conquest helps you sell more new cars with: MARKET INSIGHTS Access exclusive knowledge on what vehicles and options customers want so you can create demand and sell more. PRECISION PRICING Price your inventory to drive sales and maximize margin – instantly factoring in discounts, incentives, and rebates. INVENTORY OPTIMIZATION Optimize your inventory through trade or options, with live market insights on exactly what customers want. LISTINGS MANAGEMENT Get more VDPs and showroom traffic by seamlessly keeping third-party listings up to date with vehicle information, rebates and images.
Conquest from vAuto, the leader in vehicle inventory management, gives you an advantage over your competitors with live market data for insights that go beyond your OEM system. Now, you can have a deeper understanding of your own brand and a broader knowledge of competitive models – right down to the most popular options. So you can optimize and price your inventory to create demand and drive sales. Conquest gives you powerful knowledge across manufacturers that you can’t get anywhere else. And when you know more, you sell more.
GET THE UPPER HAND BY VISITING VAUTO.COM/NOCOMPETITION, OR CALL 888-536-4086 TO SCHEDULE YOUR PERSONAL, ONLINE DEMONSTRATION TODAY!