Car Biz Today Magazine April 2015 Issue by CBTNews

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CAR BIZ TODAY The Official News Source of The Retail Automotive Industry

April 2015

BOOSTING PROFITS

IN SERVICE JEFF COWAN ...see PAGE 30

TRIAL CLOSES WHAT DO THEY REALLY ACCOMPLISH?

DAVID LEWIS

ISSUE 13

DRIVING BOTTOM LINE PROFITS WHILE MAINTAINING

INTEGRITY

...see PAGE 24

SUCCESS IS A

CHOICE

MARK TEWART ...see PAGE 22

3 SIMPLE

GOOGLE TOOLS

VICTORIA RUSNAK President and CEO of The Rusnak Auto Group

AMY FARLEY

...see PAGE 20

PRSRT STD US POSTAGE PAID Permit No. 1459 Pewaukee, WI

...see PAGE 12

OFF THE HOOK David Metter, president of HookLogic’s auto division, explains how his company’s AutoHook suite of products is helping dealer clients and OEMs drive in-market shoppers straight to the showroom ﬂoor.

...see PAGE 26

CBT NEWS 5 Concourse Parkway Suite 100 Atlanta, GA 30328

...see PAGE ##

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CAR BIZ TODAY M

Letter from the editor

CAR BIZ TODAY MAGAZINE Email

newsroom@cbtnews.com Phone

678.221.2955 President and Publisher Jim Fitzpatrick Vice President / COO Bridget Everett Managing Editor Carol White

Dear Readers, I think we can all agree that dealers suffer from information overload when it comes to assessing the effectiveness of their digital marketing efforts. The data they’re given, whether it comes from an in-house marketing team or from an outside vendor, can be overwhelming. But interpreting what all that data means is vital to gauging which marketing strategies are working and which are not. Amy Farley explains three free Google tools available to dealers to help make sense of all that information. See page 12 for tips on using these helpful tools. So, how do you feel about trial closes? Most car salespeople have been using them their entire selling careers. But do they really work? Or do they hinder the sales process by putting undo pressure on your customers? David Lewis thinks it’s time to ditch the trial close and focus on the presentation to get the customer to the closing point. Read his take on the subject on page 24. Have you been to our website lately? If not, be sure to go to CBTNews.com and check out all the great information there to help you run a more successful dealership. When you click on the “Shows” tab, you’ll find a library full of videos on everything in retail automotive – F&I, Service, Sales, Marketing and much more. Let us know what you think by leaving a comment or emailing me at cwhite@cbtnews.com. Have the best April ever!

CAROL WHITE Managing Editor

Associate Editors Russell Brown Creative Director Simone Tieber Designer Betsy Alvarez Production Manager Jason Lowsy Creative Director - Digital Keith Tuggle Marketing Associate Roxanne Luhr Subscription Manager Tom Domagalski

Advertising Director of Sales Jane Howard jhoward@cbtnews.com d 678.221.2964 c 404.452.9551 Sales Assistant Alex Branam abranam@cbtnews.com

Customer Service info@cbtnews.com

Subscriptions To subscribe electronically, log on to cbtnews.com and click the subscribe link on the side bar. Alternately, forward your company name, your name, address, phone number and email address to info@cbtnews. com or CBT News, 5 Concourse Parkway, Atlanta, GA 30328. Please send address changes to the above email or mailing address. Permission to reprint or quote excerpts granted only upon written request. Advertising rates are provided upon request.

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AIADA 2015 Chairman Bradley Hoffman accepted the chairman’s gavel from 2014 Chairman Larry Kull in San Francisco.

ASSOCIATION NEWS

Spring Means ACTION for AIADA Members

he American International Automobile Dealers Association kicked off the year in January at its 45th Annual Meeting in San Francisco, presenting its dealer members with a full agenda and fresh opportunities to get involved.

DEALERS GATHER IN SAN FRANCISCO FOR ANNUAL MEETING

More than 300 dealers gathered at the annual meeting with international auto industry leaders, including Audi’s President Scott Keogh, on January 25 in San Francisco to celebrate the ways AIADA is moving forward. AIADA’s 2014 Chairman Larry Kull of New Jersey handed off the leadership gavel to 2015 Chairman Bradley Hoffman of Connecticut. They also recognized the lifetime achievement of Ed Fitzpatrick, who was the recipient of AIADA’s 2015 David F. Mungenast Lifetime Achievement Award. As Co-Chairman of Hoffman Auto Group in East Hartford, Conn., Hoffman has been a member of the AIADA board of directors since 1992. His plans for AIADA this year include focusing on the next generation of dealers. “For years I focused on the bottom line, but I’ve now reached a point in my life and my career where it’s time to broaden my view and look past the bottom line to what comes next,” said Hoffman. “What will the future hold for the next generation of dealers and their customers? What can I do to preserve and support this incredible industry that has provided my family and me with so much opportunity?” Hoffman told dealers that his job as chairman depends heavily on their involvement. “As you know, we are only as effective in Washington, D.C., as our membership is engaged,” he said. “Our elected oﬃcials need to witness firsthand that international nameplate auto dealers are a force to be reckoned with.” Noting that pivotal issues like pending trade bills, financial regulations, and labor issues hang in the 6

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balance, Hoffman urged dealers to refuse the urge to sit back and ride on the success of the industry so far. To do this, dealers need to be more persistent in developing relationships with their members of Congress, inviting them to their dealerships, supporting associations and groups like AIADA and AFIT-PAC. Hoffman signaled his belief that much can change in a year’s time and he intends to use his year as chairman of AIADA to take the association to new heights. “This will be a year of innovation,” he said. “It will be a year of continuing Larry’s battle to ensure that dealers’ rights are respected by the Consumer Financial Protection Bureau. It will be the year we pass trade promotion authority to ratify trade agreements with Japan and Europe. It will be a year to face forward.” Tapping into the leadership displayed by dealers, Hoffman invited them to join his cause in 2015. “Dealers are not and never have been followers. We are leaders who are constantly striving to do better,” he said, continuing, “Let’s make 2015 a year of inspiration and lead all members of our great association to new and higher levels of success.”

SPRING ISSUES: TRADE AND CFPB

AIADA remains committed to passage of trade promotion authority (TPA) and is hopeful to see legislation passed this spring. TPA—otherwise known as fast track negotiating authority—has played a crucial role in allowing past presidential administrations to negotiate free trade agreements and then present them to Congress for an up-or-down vote without threat of amendments or filibuster. The U.S. is currently engaged in ongoing trade negotiations with Europe and Pacific-Rim nations that would help international nameplate brands and dealers. However, the fate of these agreements depends heavily on whether President Obama can secure TPA. This spring, AIADA dealers have contacted their members of Congress and let them know to support

the TPA legislation. If you haven’t reached out to your senators and member of Congress, visit AIADA. org/get-involved to find out how you can take this important step. In addition to trade, the CFPB has also made waves this spring as it continues to assert dealer lending discrimination. Last month, a coalition of industry trade groups sent a letter asking the bureau to publicly respond to a recent Charles River Associates’ study that found the bureau’s methodology to measure dealer lending disparities to lack statistical support. AIADA and fellow automotive trade associations applauded the letter. Dealers should continue to engage their members of Congress to communicate the reality behind dealership business and lending practices. Visit AIADA’s website to learn more about inviting your member of Congress to your dealership for a first-hand look at the daily operation of your business.

SPRING AUTO SUMMIT AROUND THE CORNER

AIADA is preparing to welcome dealers to Washington, D.C., this spring for the 9th Annual International Auto Industry Summit May 11-12. This year’s program promises to provide dealers with information aimed at strengthening both their businesses and their ability to effectively engage Congress on the political and legislative issues that matter most. AIADA has a full program of speakers lined up, starting with the opening dinner, headlined by Robert O’Neill—a renowned member of Navy SEAL Team 6— who will discuss his involvement in several high-profile operations. Attendees will also hear from Erin Kerrigan, managing director of Kerrigan Advisors, on the state of the dealership buy/sell market; congressional speakers; and Washington, D.C., insiders like Politico’s chief White House Correspondent, Mike Allen. Gen Y Guy® Jason Dorsey will help dealers understand how to connect with millennial employees and customers. Additionally, AIADA and the Association of Global Automakers will unveil the results of this year’s Economic Impact Survey, and several OEM executives will be on hand for the always-popular panel discussion moderated by CBT News’ own Russell Brown. Registration for AIADA’s 9th Annual International Auto Industry Summit is limited. Register now by visiting AIADA’s website or calling 1-800-GO-AIADA.

LEADERSHIP

Why Do Women Visit More Dealerships Than Men? How to convert extra visits into dollars for your dealership. BY ANNE FLEMMING

omen visit 30 percent more dealerships than men prior to buying a car, according to a Women-Drivers.com study. Several reasons contribute to this difference. In a recent report from Kelley Blue Book, women are twice as likely as men to be undecided about which car they really want. Added to this is the fact that women are less confident (38 percent) about car buying than men (58 percent), and take longer to make a decision (75 days for women versus 63 days for men). One in 10 women know the exact vehicle they want, compared to one in five men. This means that when a woman is at a dealership, she may not be ready to make a buying decision. If a woman leaves a particular dealership, there is a 60-percent chance she won’t return. The tendency for women to shop at more dealerships, coupled with the longer sales cycle and different buying criteria can be turned into an advantage for a dealership if the right steps are taken to meet the needs of this ever-growing segment of car buyers.

3 WAYS TO HELP WOMEN CHOOSE THE RIGHT VEHICLE

Women have different selection criteria than men when deciding on a car. Understanding the differences can help women reach a decision more quickly, making it less likely she will feel the need to visit a competitor.

Because nearly one-third of women rate dealer’s websites as unhelpful, making sure that the website appeals to women will keep them on the site longer and help speed a buying decision. This means knowing and highlighting what matters to women, such as durability, safety and economy, not just MSRP.

Women rank respect and trust at the top of the list when it comes to working with a sales advisor. Customer excellence ranks higher in a purchase decision than finding the best price or deal. Creating a comfortable environment that establishes trust and respect makes the difference for sales now and in the future.

Women now account for half of car purchases and inﬂuence up to 80 percent of auto buying choices. According to a study by the University of

Michigan’s Transportation Research Institute, women drivers now outnumber male drivers 105.7 million to 104.3. Understanding these statistics and reﬂecting them in your sales approach and process are important to foster an environment of trust and respect.

3 WAYS TO ENSURE WOMEN BUYERS RETURN TO A DEALERSHIP

The top reason women gave for not purchasing at a dealership on their first visit is that they are still shopping. However, only four in 10 of those “shoppers” who leave a dealership without buying a car return to the same dealership. Given that women shop at more than one dealership, it is important to create an environment that welcomes a return visit to your dealership.

Establish trust and respect. Women place “respect” and “trustworthiness” as the top two reasons to buy from a sales advisor. Treating a potential buyer with respect and establishing trust at the outset of the sales relationship will create a positive environment, which in turn can increase a woman’s confidence in her buying decision. She will remember that trust and it will create a strong reason to return to your store.

Understand what a woman buyer is looking for. During the initial visit, a sales advisor should ask the right questions to understand a woman’s priorities. Are certain features non-negotiable? If the right model and color are not available right away, can the right car be found? Taking the extra step toward finding the right fit can bring a buyer back to the showroom.

Create an eﬃcient buying process. Women nationally report that the average time spent purchasing a vehicle at a dealership is 3 hours and 20 minutes. Reducing this time lets women know you respect their time and creates a positive feeling that will encourage return visits, positive reviews and referrals.

Dealership websites are at women’s top of the list for car research. Understanding and targeting women’s needs can help them make quicker and moreinformed decisions. For instance, a section on the dealer’s website that compares features important to women, such as safety and durability, will steer a buyer toward a particular car.

Kelley Blue Book’s study indicates that women are more interested in the practical aspects of a car. Women see a car as a way to get where they need to go, and are interested in durability, reliability and safety. Dealerships can focus on these aspects of a car on their website as well as in the showroom.

Women are interested in getting the exact vehicle they want, whereas men are looking for the best deal. Sales advisors should place a high emphasis on understanding the features a woman is looking for, and finding the best match. Asking the right questions will help a sales advisor understand a woman’s priorities.

4 WAYS TO ATTRACT WOMEN TO A DEALERSHIP

Women have several choices when deciding which dealerships to visit. An astounding 60 percent of women do not purchase from the dealership closest to their home.

Women are 50 percent more likely than men to rely on car dealership reviews and they prefer reading reviews from women. A dealership will benefit from encouraging satisfied and happy women clients to write reviews. This has an additional benefit to a dealership, because women who are satisfied are more likely to leave a higher-scoring review. TO SEE MORE FROM ANNE FLEMMING GO TO CBTNEWS.COM

ANNE FLEMMING President of Women-Drivers.com Prior to her involvement in the retail automotive industry, Anne spent 20 years in brand development and strategic product development for several international consumer product companies. Her leadership training led to the founding of Women-Drivers.com, which has been featured in the Wall Street Journal, ABC News, USA Today, Working Mother, Smart Money and other national media. Visit her website at Women-drivers.com and follow her on Twitter @Womendrivers.

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LEADERSHIP

CREATING THE

HIGH-PERFORMANCE

ORGANIZATION Having a skilled and talented workforce is central to a healthy and proямБtable dealership.

BY GREG SMITH

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CAR BIZ TODAY APRIL

A GROWING PERCENTAGE OF UNHAPPY EMPLOYEES ERODES CUSTOMER LOYALTY, DECREASES SALES AND INCREASES THE COST OF TURNOVER. AS THE ECONOMY REBOUNDS, YOU DO NOT NEED STAFF MEMBERS MERELY SHOWING UP FOR A PAYCHECK DOING THE MINIMUM.

ust imagine walking through the doors of your dealership noticing the happy and smiling faces of your staff. Your customers are providing rave reviews about your dealership and the service department increased business by 30 percent. Cars are ﬂying off the parking lot and you break another sales record this month. Things are getting better and better. However, for many dealerships this is more of a dream than reality. The high-performance organization thrives on one key ingredient – a skilled and talented workforce. This is one of the biggest issues facing owners today. Increasing employee turnover, decreasing job satisfaction, changing work ethics and declining job skills provide unique challenges to dealers the world over. Surveys show upwards to 70 percent of the workforce is not engaged at work. This is the highest level ever recorded in more than 24 years of research. A growing percentage of unhappy employees erodes customer loyalty, decreases sales and increases the cost of turnover. As the economy rebounds, you do not need staff members merely showing up for a paycheck doing the minimum.

THE PRIDE SYSTEM

The best places to work have one thing in common. They focus their resources to create a high-performance culture. According to the Disney Institute, “culture” is “a system of values and beliefs an organization holds that drives actions and behaviors and inﬂuences relationships.” Creating a high-performance organization involves a five-step process called the PRIDE system.

PROVIDE STRONG AND EFFECTIVE LEADERSHIP

Effective leadership is the most important element of the PRIDE system.

Provide strong and eﬀective leadership

Reward, recognition and

reinforcement

Increase employee engagement Develop the skills and potential of your workforce

Evaluate and make continuous improvements Dr. Edwards Deming said, “The aim of leadership should be to improve the performance of man and machine, to improve quality, to increase output and simultaneously to bring pride of workmanship to people.” Employees do not quit their company; they quit their boss. Our research shows 46 percent of employees that quit their jobs left because of their first-line supervisor. That is a painful statistic when you consider how TO SEE MORE FROM GREG SMITH GO TO CBTNEWS.COM

expensive it is constantly recruiting, hiring and training new people. Here are a few suggestions to consider: • Hold managers personally accountable and responsible for retaining their employees. • Start measuring the financial cost of turnover and apply the cost to the bottom line. • Conduct exit interviews to discover the real reasons people quit. • Train managers to become good leaders.

REWARD, RECOGNITION AND APPRECIATION

Fran Tarkenton said to find what motivates people, “you have to find what turns people on.” Personal recognition is a powerful tool that increases job satisfaction and motivation. A pat on the back or a personal note from a peer or a supervisor does wonders. Small, informal celebrations are many times more effective than a oncea-month or once-a-year event. Graham Weston, co-founder and CEO of Rackspace Managed Hosting, came up with a modified version of the traditional employee-of-the-month program. He gives the keys to his BMW convertible to his topperforming employees for a week. This creative way to reward people has a bigger impact than a cash bonus. He says, “If you gave somebody a cash bonus, it may not have the same effect. “When someone gets to drive my car for a week, they never forget it.” A successful reward and recognition program does not have to be complicated to be effective. A dealership in Louisville, Ky., has almost eliminated employee turnover by its programs. The employees participate in a profit-sharing plan that could possibly mean $700,000 upon retirement. They are eligible after one year, and become fully vested after six years. Other incentives and benefits provided include: • Every year, employees celebrate their work anniversary with a cake and a check for $200 for each year employed. • Twice a year employees’ children receive a savings bond when they bring in their “all A’s” report card. • To minimize the “we-they” syndrome, every Friday, employees rotate jobs for one hour. For example, the person in the parts department becomes a service technician. This builds a stronger team, and improves communication within the company.

INCREASE EMPLOYEE ENGAGEMENT

People may show up for work, but are they engaged and motivated? Job satisfaction increases when staff can submit their ideas and suggestions to management. This gives them a sense of ownership and pride in their work. Marsha Myers of Lee Hecht Harrison said, “Managers usually overlook the company’s most valuable asset and source of information – their employees. “Creative organizations can find new ways to drive revenue and reduce costs by seeking employee suggestions.”

Riverside Auto Group operates seven dealerships employing 190 people throughout Michigan’s Upper Peninsula and Wisconsin. We found what upset employees the most about their jobs was they “weren’t in charge” of anything. For example, if a guest came in for an oil change and happened to complain her windshield wipers did not work, the associate was powerless to fix the wipers. The associate had to go to a supervisor to get permission to change the wipers or had to tell the guest to make a separate appointment. The solution was to empower each associate to do whatever he or she could to help the guest – up to a $250 dollar limit. Now, each associate can take ownership of whatever the customer’s concerns are up to that amount without permission from a manager. Giving the employee the ability to improve customer satisfaction motivated the employees. This became a powerful motivator.

DEVELOP THE SKILLS AND POTENTIAL OF YOUR WORKFORCE

The National Center on the Educational Quality of the Workforce (EQW) found on an average, a 10-percent increase in the workforce education level led to an 8.6-percent gain in total productivity. Ongoing training and development is an important element of a successful organization. It helps people become more productive and effective at what they do. Trained employees will take more responsibility over their jobs. It also gives them internal mobility and a pathway of forward progression in the organization. All employees should have a written training and development plan.

EVALUATE AND MAKE CONTINUOUS IMPROVEMENTS

Continuous evaluation and never-ending improvement are key components in keeping a competitive edge. Walt Disney said, “If you are coasting, you are going downhill.” The dynamic work environment and changing consumer buying patterns requires increased vigilance. Organizations should be alert to anything causing job dissatisfaction and decreased performance. Instead of just focusing on the usual metrics, such as profit and loss and sales, dealerships should also focus on a few of the following: • Conduct exit interviews on the real reasons people leave your organization. • Ask employees who have been with your business longer than five years why they stay with you. • Ask new employees what attracted them to your business. • Evaluate which departments have better or worse retention rates than others. • Create a retention plan for those key individuals having the greatest impact on profitability and productivity.

GREG SMITH International Business Consultant, Author and Keynote Speaker For 25 years, Greg has been helping businesses accelerate performance, reduce turnover, increase sales, hire better people and deliver better customer service. He is the publisher of the Navigator Newsletter and has authored 11 books including 401 Proven Ways to Retain Your Best Employees and his latest book, Fired Up! Leading Your Organization to Achieve Exceptional Results. Visit his website at Chartcourse.com.

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By employing a traditional sales model – reliant on desk managers and multiple pencils – you’re going to continue to have a sales staff older than your customer base and experience turnover north of 100 percent. Adopting a more modern way of selling vehicles will attract and retain a younger sales force. Some ways to do that include:

Internet and phone leads – The younger generation is very technologically savvy and they love their smartphones. So dump your costly and ineﬀective BDC and hire sales people with the right skill sets to optimize where your greatest opportunities are – phone and Internet.



Information Sharing – Today’s buyer is very wary of any form of “hard sell” or a “pushy” salesperson or manager. The guts of today’s sales presentation should be about supplying prospects information they don’t already know. This means you need “geniuses” on your sales staﬀ – people who can not only conﬁrm what the prospect knows about their vehicle of interest but also “elevate” their knowledge and appreciation of the intended product.



LEADERSHIP

Sales Consultant Recruiting Made Easy Implementing signiﬁcant changes in your sales process will go far in attracting young, well-educated salespeople and increase your employee retention rate. BY MARK RIKESS

asily the biggest challenge I hear from dealers is they can’t find and retain young, well-educated salespeople. I believe that is because they are doing what they have always done and are expecting different results – seems pretty insane to me! The bottom line is that most dealers are shooting themselves in their own foot by not making significant changes to the position of auto sales. Some necessary changes include:

Training Salary – Don’t expect to attract an educated, younger and gender-balanced sales force if you aren’t oﬀering a training salary of at least $2,500 per month for a minimum of two months. $3,000 will even draw better candidates. 

Initial Training Plan – If you don’t have a 30-day new employee development plan, you’re just creating turnover in your sales force. One of the key questions today’s younger generation wants to know is, “How are you going to train me?” After the initial training you should have a mentoring strategy in place for further new-hire development



 Reward Sales Volume – By paying primari-

ly on gross you’re rewarding this younger generation for trying to make as much money as they can oﬀ of everyone they meet. The problem is that’s not how they are wired. They also need a reasonable salary or guarantee along with volume and possibly some gross rewards. If you’re still pretty much a “straight commission” store, go ahead and shoot one of your toes oﬀ.



Limit or Eliminate Negotiations – Do

you know any 25 year olds who are practiced in the art of negotiations? Or, even enjoy the aspects of negotiations? There aren’t many. That sound you hear is your recruitment window “shutting down.” By 10

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Millennials expect to have work-life balance. They are not going to put in the 50-plus-hour workweeks of yore. employing a traditional sales model – reliant on desk managers and multiple pencils – you’re going to continue to have a sales staﬀ older than your customer base and experience turnover north of 100 percent.  40-45 Hour Work Week – Millennials expect to have work-life balance. They are not going to put in the 50-plus-hour workweeks of yore. Your “work-till-they-drop” sales managers will need to get over it and create a reasonable and ﬂexible schedule. 

Always Be Recruiting – When you recruit

primarily out of need, by deﬁnition you’re lowering your standards of whom you’ll hire. Again, you’re exacerbating turnover by hiring “Mr. Right Now.”

Management Compensation – At least half of your sales managers’ compensation should be tied to salesperson productivity, with 10 units being the minimum standard. This type of compensation plan forces managers to move from “deal managers” to “people developers.” Tell me how you reward me and I’ll tell you how I’ll behave.



 Affordability Consulting – Today’s modern sales force needs to be able to provide prospects with payment estimates for both financing and leasing. The basic idea is that if you get prospects in cars that are more affordable more quickly, you sell more cars! Most dealers are under the old mindset that they need to protect their back-end gross by not granting salespeople the training and ability to provide payment estimates. The reality is customers are not focused as much on price as they are on “does it fit my family’s budget?” Not allowing salespeople to discuss payment options may slightly improve your F&I PRU but it will come at the cost of sales volume. Which would you rather have?  Empowerment – Prospects hate watching your sales staff get up and abandon them when they don’t “bite” on the first pencil. You know who hates this process as much? Younger, well-educated salespeople. Step into the new era of auto retailing by transitioning your management team from being desk managers to becoming a great support system by engaging, observing and coaching your sales team while they are making actual presentations.

Transparency – Start by defining what you mean by transparency. If you can’t define it you can’t achieve it. There should be a “pricing rationale” for your first quote. Before serving up a number have your sales staff explain how you determine your vehicle pricing. I strongly recommend that you use a third-party pricing guide, such as Edmunds, KBB, etc., as your first quote, then either eliminate or limit negotiations.



So take that gun away from your foot and change many aspects of your traditional business sales model. If you don’t, you’re going to keep getting what you got – and losing more toes in the process.

MARK RIKESS President of The Rikess Group Mark is a highly regarded expert on progressive retail practices, providing management-consultant services to dealers, suppliers and manufacturers. As a second-generation automotive dealer, he began with an early focus on performance improvement and implementation of results management processes in the dealership-operating environment. Mark founded TRG in 1989, and has consulted more than 150 dealerships. You can reach Mark at MarkRikess@gmail.com.

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Joe Verde

“We have trained in your classes and on JVTN® since 2011. This year, we switched to the controlled rollout on JVTN®, and now we control what courses our team trains on, and wow, what a difference it has made! Along with doing group training on M-W-F, all of our managers do one-on-ones daily with our sales team and use your Monthly Planning Guides. Now we practice exactly what we need to take our store to the next level. We focus on the selling process, we don’t skip steps in the presentation and we use your 3-pass negotiation method to create urgency. It’s been incredible! We realized a 29% increase in our units in 2014 from 565 to 725 and more importantly, we took our gross up $711,347 for a 71% increase! Joe, it’s not magic … but it works like magic. Having a clear plan for the day, week, month and year – and the proper tools to execute that plan is what dreams are made of.” – Brian Nesbitt, GM, Fred Beans CDJ, PA

10 Million Reasons Why You Should Train On JVTN®

hat is JVTN®? It’s simply the most powerful online automotive sales training in the world! Over 10 million chapters of our courses have been taken by salespeople and managers who get immediate results by developing the critical skills we cover that most would never learn otherwise. What would Joe Verde teach our salespeople? The complete sales process... How to sell a car today. No salesperson will be left behind, not knowing what to say or do when they get a customer. Word for word – we’ll show them what to say from the greeting to the delivery! How to close the sale, overcome objections and bypass price on the lot. We teach your salespeople the words and processes to handle every objection, including price, that comes up during the sale, closing and the negotiation. How to build your business by phone / internet. Phones ring and leads come in daily, so we teach salespeople the complete process of taking calls and leads and making outgoing contacts, to turn more lost sales into be-backs, and more contacts into appointments that show. How to follow up, prospect and retain your customers forever. Again, word for word on everything they need to say and do to build your future business. JVTN® even includes a powerful, easy to use mini-CRM built just for salespeople.

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JOE VERDE

Escape The 8-Car Rut If you’re in sales, I’m assuming you want to sell more and make more money. If that’s true and you’re stuck at 8 or 10, the first thing you have to understand is selling isn’t just about loving cars, being friendly, certifying on product knowledge, and showing people vehicles. To get past average, you have to learn how to sell. A lot of people justify not learning more because they don’t want to ‘push or trick people’ into buying. If that’s how you see selling, that misinformation about professional selling may cost you the greatest income opportunity you’ll run into in this lifetime. I learned to sell the wrong way and hated it for 5 years – I just couldn’t afford to quit. I finally ran into the information I needed to develop my skills to turn my own 8-car rut into a 38-car rut instead, and you can, too. You can learn how to sell 20-30 every month and easily earn over $100,000 every year. Develop skills to hit 20-30-50 units a month and avoid pressure because that creates resistance, and makes sales tougher, not easier. Pros don’t push, they lead a prospect to the sale. One of the most important tips I remember that completely changed my thinking about who to listen to and become more successful was… “Never take advice from anyone who isn’t as successful as you want to be.”

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MARKETING

SIMPLE GOOGLE TOOLS

THAT EVERY DEALER SHOULD BE UTILIZING Utilizing free analytic tools can simplify a dealer’s approach to digital marketing. BY AMY FARLEY

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enry Ford once said he knew that half of every dollar he spent on advertising was wasted. He just didn’t know which half. What might he think if he were alive today, when dealers are constantly bombarded with data and information about the effectiveness of their digital marketing efforts? Whether you rely on an in-house digital team or work with one or multiple vendors, the data you’re given can be overwhelming. It’s important to find a way to interpret it in an objective way that paints a picture of your digital marketing success. Fortunately for dealers, three readily available tools exist that can help them simplify their approach to digital marketing, and meet these challenges head-on. These are three common questions that dealers have, and three tools that can help answer them.

1. How do I attribute the peaks

and valleys in website traffic to my marketing team’s efforts?

Solution: Google Annotations One of the most challenging things about digital marketing is determining what strategies were and were not effective in driving traﬃc and conversions on your dealership’s website. If you’ve ever noticed a spike in web traﬃc within your Google Analytics data, but found yourself unable to pinpoint the cause in order to replicate it, then you know that this can be frustrating. Google Annotations, a free tool within Google Analytics, can help. Annotations are notes within Google Analytics that anyone with access to your account can make and view. These notes appear as small icons along the graph of

campaigns, new model launches, store events and more. These all provide important context that will help you determine why your website traﬃc rises or falls.

Attributing success to a specific traﬃc source and campaign can allow you to evaluate which of your digital marketing efforts are the most worthy of your time.

2. How do I track the effectiveness

3. How do I optimize my website to get more organic search leads?

of my digital marketing channels and campaigns?

Solution: Google UTMs (Urchin Tracking Modules) Many dealers find it diﬃcult to evaluate the reports they receive from all of their third-party vendors. It can be challenging to interpret the data, how it works together and how it relates to a dealer’s site traﬃc and conversions. One solution that unifies that data into one central location – Google Analytics – is the usage of Google UTMs.

ALL THREE OF THESE TOOLS ARE EFFECTIVE AND FREE FOR DEALERS AND DIGITAL MARKETING PROVIDERS TO USE, YET ALL THREE ARE UNDERUTILIZED WITHIN THE AUTOMOTIVE INDUSTRY RIGHT NOW. your website traﬃc, and correspond to a given date. They can help you mark events or changes that have an impact on your data, allowing you to notice and remember what caused spikes or dips in visitors to your site, conversions and other metrics. When you click on an Annotation icon, it will pop up and display the note that was created for that date. You can also view an itemized list of all Annotations in the admin panel, allowing you to take a zoomed-out view of what’s affecting your site data. All of your digital marketing providers can utilize this tool, if they have access to your Google Analytics. You will be able to see exactly what they are doing within your account, and determine whether or not the steps they’re taking are working. Your providers can record the actions they take to optimize your account, so that you can tell if a PPC campaign or a tweak to your site content had an effect on your traﬃc. You can also choose to record things like other marketing

UTMs are a way to track the sources that your website traffic is coming from in a specific, granular way. These tracking codes are added to your URLs and can be used anywhere that you’d like to track your traffic – in marketing emails, PPC campaigns, landing pages and even third-party sites like AutoTrader.com and Cars.com. Without UTMs, Google Analytics attempts to determine the source of site traffic, but it’s not always successful. In many cases, the traffic source will be listed as “Direct,” indicating that the visitor came directly to your website by typing in the URL or clicking on a bookmark. This provides you with very little insight. Once UTMs are implemented, though, you can determine not just the source that brought visitors to your site, an email message for instance, but also the specific campaign, for example, “Memorial Day Email Blast.” It gives you the best possible insight into which campaigns are driving traffic and conversions, and which are not.

Solution: Schematic Markup The goal of any search engine optimization strategy is to make your dealership’s website more visible within organic search rankings. Schematic markup allows you to do this in a way that’s more effective than ever before. Schematic markup, also known as schema, is code that is placed on the back-end of your website in order to help search engines better parse and understand what your content is about. By implementing these simple snippets of code, you can show a search engine that the “Leaf” is a vehicle in this context, for instance, rather than something that falls from a tree. While search engines can sometimes figure these things out on their own, schema allows you to cut the guesswork out entirely. Schematic markup is also recommended because it can be used on images and videos. Search engines are limited otherwise in how they read these types of content, so using schematic markup codes lets them know what those images and videos contain. They can understand, for instance, that an image of a Nissan logo describes an automotive brand. This allows items like that to contribute to your overall SEO strategy in a way that they couldn’t before. The goal of any search engine is to connect users with the search results that are the most relevant to their query. The three major search engines – Google, Bing and Yahoo – collaborated on schematic markup in an effort to deliver better results to users, and as such, the schema code that you use on your site will work for all three. If your digital marketing provider or the team that handles your search engine optimization strategy is not using schematic markup yet, then now is the time to begin. Take advantage of this opportunity to ensure that your dealership is the most relevant result for a user’s search query. All three of these tools are effective and free for dealers and digital marketing providers to use, yet all three are underutilized within the automotive industry right now. Use these tools to interpret your data and manage your digital marketing vendors more effectively. Like corporate management consultant Peter Drucker once said, “What gets measured gets managed.”

AMY FARLEY Media and Communications Manager at Force Marketing Amy is a skilled writer and editor with a keen interest in digital trends and topics in the automotive industry. She utilizes her knowledge of what is new in retail automotive marketing to help Force, an automotive digital, direct mail and email marketing firm based in Atlanta, Ga., evolve the dealer-tocustomer shopping experience. Visit the website at Forcemktg.com.

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DATE

FEB 9-11

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C N N

H OT E L C E N T E R

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Attention Dealers, GMs, GSMs, Sales Managers, F&I Managers, Marketing Directors, Service Managers, Internet Managers, BDC Managers and Pre-Owned Managers CBT Automotive Network is proud to announce the 2016 CBT Automotive Sales, Service and Marketing Conference & Expo. The retail automotive industry's top leaders and keynote speakers will come together to present more than 100 powerful sessions and thought-provoking panel discussions during this dynamic three-day event. Mark your calendar now for February 9-11, 2016. We'll see you in Atlanta!

Visit CBT Conference and Expo.com for more information

MARKETING

3 Tips to Strengthen YOUR DEALERSHIPâ&#x20AC;&#x2122;S

WEB PRESENCE Having an online presence that appeals to tech-savvy consumers is critical to keeping them engaged and eager to visit your dealership. BY ZACH KLEMPF

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CONSUMERS CAN TELL IF YOU DON’T PUT EFFORT INTO YOUR SOCIAL MEDIA AND THEY WILL MOVE ON TO A DEALERSHIP SITE THAT OFFERS THEM MORE ONL INE. A BEST PRACTICE IS TO SHARE ENGAGING MULTIMEDIA CONTENT DAILY.

ealerships without any meaningful online presence are the equivalent of restaurants without a featured cuisine and menu – there’s nothing to whet your appetite and make you want to walk through the door to sample the goods! All dealerships need an integrated digital presence that leverages SEO, Mobile Platforms and Social Media to be relevant for today’s connected consumer. Tech-savvy consumers showed their preference to shop online with Deloitte reporting that the average consumer spent 10 hours comparison-shopping online before even visiting a dealership. They hit the showroom floor super informed and sometimes more knowledgeable than your sales team about competitive brands and innovative features on the latest models. Competition is fierce to get and to keep their attention to buy from your dealership, and adopting an engaging online sales and marketing strategy is a critical component of any dealership’s strategy for success. In order to have an effective online presence for your dealership in 2015, consider these three tips:

AVOID THE TBT WEBSITE FOR DESKTOPS

Does your website look like it’s a Throw Back Thursday (TBT) web design? Retro is a great look if it’s a conscious choice and actively managed, but a real turnoff when it’s obvious that your site has not been touched in months. Unbelievably many dealership sites haven’t been changed in years and leave consumers totally unimpressed after a site visit. Does your website offer an eye-pleasing design that works seamlessly across multiple platforms like smartphones, tablets and desktops? Many dealerships are under the mistaken impression that their website performs equally well on mobile as well as on any browser. Nothing could be further from the truth because many dealership websites are not truly responsive to mobile devices or equally strong across all desktop browsers and screen sizes. The best way to check this is to visit your dealer website in stealth mode yourself from your mobile phone and go through the same process any customer would. Have friends, family and recent customers do the same and ask for their honest feedback. What works on the site for them in looking for a car and what doesn’t? Is the design visually appealing and simple to navigate? Would they answer this question differently for a desktop visit versus a mobile one? Can they easily view your available inventory and answer basic feature and options questions without having a degree in website navigation or constantly dodging annoying pop up ads and windows? What type of content and site “look and feel” will keep them coming back to your site over your competitors? And don’t forget to make sure they can quickly reach out to a salesperson for a follow-up conversation directly from your website to make that crucial one-onone connection in real time via media of their choice – phone, IM, text, email, social media messaging, etc. – whenever possible. Make sure your dealership stands out from the rest of the cookie-cutter dealership websites. Whether this means high-quality videos or having an interesting

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blog that your dealership runs or even creating a lifestyle community page around the car brands you sell, you need to stand out online. Consumers can tell if you have a dated agency style website. Ditch the static old site and make your dealership site memorable. Updating does not have to mean a complete scrap and fork lift rebuilding of your website from the ground up. It can be as simple as making customizations to your current template that go above and beyond the standard in the industry and revamping the content to be more interesting and catchy. The key here is constantly managing and changing the look and feel of your site to keep it fresh, attractive and relevant.

SEARCH ENGINE RANKINGS ARE KING

Where does your dealership rank when online customers search for a vehicle with their city and/or zip code for one of the brands you carry? (i.e. 2015 Ford Mustang 30342) Do you show up in the first couple of results on the first page or in “no-man’s land” three pages down? If a dinky little dealership down the street consistently outranks you, you may need to rethink your SEO strategy. Car dealerships specifically need to plan a strong local SEO strategy. I recommend Google as the best search engine to start with to improve your search rankings. Google has a different ranking for local search results and below are a few simple steps you can take to ensure you rank high:

•

Create a Google My Business account and fill out all the fields. Be sure to keep this updated and current every quarter. Have high-quality links building to your site and use a mix of both local links and links with domain authority. Ask your customers for Google Reviews, Yelp Reviews, as well as other rating sites. Make sure these reviews are associated with your dealership address and website URL address and posted on your social media sites. Determine what your dealership’s Alexa rank is compared to your competition. This will give you a good idea of what kind of traffic your site is getting relative to your geographical customers and similar franchises.

If these simple steps seem like Greek to you, consider hiring a digital marketing resource with SEO expertise and SMM experience to help you get started.

WOULD A MILLENNIAL ‘LOL’ AT YOUR SOCIAL MEDIA HANDLES?

Dealerships are notorious for being dated with social media and often have a lack of understanding on how to effectively target customers besides the basics of just creating a Facebook and Twitter account. Two of

the biggest faux pas I see is to offer little or no original content on their profiles, and to update too infrequently. Consumers can tell if you don’t put effort into your social media and they will move on to a dealership site that offers them more online. A best practice is to share engaging multimedia content daily. If daily content updates seem daunting, try starting with at least monthly content updates and move toward bi-weekly updates as soon as you can comfortably manage it.

IS YOUR GM AN SMM DINOSAUR?

If your GM is scared of Social Media Marketing (SMM) and refuses to take a step forward to a digitalfirst connected dealership, then “Houston, we have a problem.” Neglecting the impact that your dealership’s online presence has on your overall business is a serious mistake in an “always on” automotive consumer marketplace. Not all of these three steps will apply to every dealership. Focusing on any one of them – boosting your SEO, embracing SMM or updating your website more frequently – will definitely position you for more digital success in 2015 whether you adopt a do-it-yourself or outsource it approach. If your dealership hires an agency to handle these aspects of a digital sales and marketing plan, you still need to make sure they are delivering on your digital objectives. Stay engaged and informed on how your money is being spent and what your online signal strength measures. Constantly compare your website to competitors and keep a close eye out. Create original content for your social media groups to bring back the personal element to your showroom. Lastly, remember that it takes time to build your dealership’s online presence and don’t expect instant results overnight.

Here are some basics for several top social media networks: TWITTER

Retweet interesting consumer focused articles on Twitter, as well as local news. Be sure to use trending hashtags (“#s) and follow people who are influencers in your city. Post pics of new inventory when it hits the lot and reward followers with service discounts and brand giveaways to keep them engaged online.

FACEBOOK

Have a personality on your Facebook page that defines your dealership’s mission and atmosphere. This could include uploading videos of your salespeople showing off new inventory, having contests for customers, demonstrating new features from your showroom floor and customer purchasing and service testimonials.

INSTAGRAM AND PINTEREST

For the more adventurous dealers, consider how to take advantage of these two image-based social networks. Instagram and Pinterest can be especially effective for luxury dealers who shoot very high-resolution images of their inventory and have a strong “lifestyle” image associated with their brands. Tap into that brand energy by building a community of interest for your dealership on these two visual platforms.

ZACH KLEMPF CEO of Selly Automotive Zach’s background includes working in both automotive and high-tech industries in Silicon Valley. As a millennial CEO, he has his finger on the pulse of that generation’s shopping preferences. His expertise is in digital marketing, CRM and general dealership technology. Visit his website at SellyAutomotive.com.

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DEALER PROFILE

DRIVING

WHILE MAINTAINING

BOTTOM LINE PROFITS

INTEGRITY

Victoria Rusnak has set her sights on growing her family’s business while maintaining the level of integrity her father instilled in the company. BY CAROL WHITE

W Victoria Rusnak, President and CEO

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hen Victoria Rusnak joined her father, Paul Rusnak, in business, she knew she would have some pretty big shoes to fill. After all, he had built one of the largest and most successful dealership groups in Southern California. It was important for her to bring her business know-how to the Rusnak Auto Group to help grow the company’s profits. At the same time, she wanted to be sure her plans for growth maintained the level of integrity that clients have come to expect from the dealerships. Victoria was brought on in 2006 as the chief operating of�ice. In 2013, she was tapped to succeed her father as the president and CEO, and today she is poised to take the company to a new level. Mr. Rusnak, who remains as chairman of the company, got his start in the auto business in 1960 with the purchase of a Triumph dealership in Los Angeles, Calif. Through the years, he bought and sold a number of dealerships that included both non-luxury and luxury brands. But his fascination with European sports cars is what led the group to being an almost exclusive dealer of high-end automobiles, which includes Bentley, Rolls-Royce, Maserati, Audi, BMW, Land Rover, Mercedes-Benz, Porsche and Volvo. The only non-luxury brand currently represented is Hyundai. Today, the group is ranked among the country’s top 100 dealership groups with 10,592 new units sold in 2014. Unlike a lot of dealers’ kids, Victoria did not grow up in the car business. Prior to joining her father in the business, she sold cars at his Chrysler store in Pasadena and helped with inventory during summer breaks, but a career in auto wasn’t on her radar. After obtaining her law degree from Gonzaga University School of Law and a Masters in environmental law from George Washington Law, she opened a small law �irm in Seattle, Wash., where she specialized in business and real estate law. It was during this time that Victoria began working with her father on some of the company’s real estate issues and came to realize the magnitude of the Rusnak Auto Group. “I had this awakening that this company had grown so big and there really wasn’t a plan of who was going to take it over and help my dad run it,” she said. “I planned to have a legal and business career, but I was afforded the opportunity to join the dealership, and it sort of came to pass. I offered to come help and he appreciated it.” Victoria has two sisters, one who is not involved in the auto business and the other, Elizabeth Rusnak Arizmendi, who is vice president of public relations for the company. Victoria admits that “not much prepares you to run a family-owned major dealership group” but her business education and experience with her own law practice did help her to see the business with a new set of eyes. “It gave me the ability to look at the organization from a professional point of view, rather than just the old-time, family-run operation. That helped me tremendously and ultimately helped the organization because I was able to implement a lot of economies of scale and put together a professional corporate team.” When Victoria joined her father in 2009 as the COO, she brought some new ideas that involved restructuring the company from an entrepreneurial mindset to a corporate model. Although she and her father had “philosophical differences” in opinion about how that corporate model should look, he was open to her ideas and understood that some of them made sense in the long run.

As for the employees, most of them had a wait-andsee attitude about the reorganization. “I wouldn’t say they weren’t receptive, but I think they were a little bit

major position in the company. That included donning a service vest and performing oil changes in the service drive. “It was really fun! I got to know the technicians.”

EVEN THOUGH THE COMPANY LOOKS FIRST FOR PROFESSIONALMINDED CANDIDATES, AS A FEMALE DEALER, VICTORIA FEELS SHE’S POSITIONED TO HELP OPEN THE DOOR FOR MORE WOMEN TO ENTER THE CAR BUSINESS Today, Victoria still makes a point to stay connected afraid of the changes,” said Victoria. “I would say the bigwith her service employees by participating in “tech gest obstacle I had to overcome is I had to prove to them talks” where she gets together with the technicians to that it was going to be OK. I just had to forge the path discuss the business, how things are going in the shop, and hope that people were going to come with me. And what their needs are, etc. “I can’t speak for other people, for the most part, they did.” but I think a lot of bigger compaVictoria says that �illing her fanies just don’t spend the time dother’s shoes is an impossible task, ing that.” but over time she believes she has Recruiting and retaining quality earned the respect of her employtalent, like with many other dealees. “It takes time. You make misers, is a priority for Rusnak Auto takes, but that’s part of the process Group. Even though the company of gaining experience, and that’s looks �irst for professional-minded part of the process of upping your candidates, as a female dealer, Vicgame.” toria feels she’s positioned to help Introducing new technology open the door for more women to to the dealerships, scaling down enter the car business. She believes the number of vendors across the that working in a male-dominated board, implementing a more strucindustry is a non-issue for female tured marketing department and millennials because they’re already ramping up the human resource accustomed to working with and efforts are paying off. In 2013, the being around their male counterRusnak Auto Group became one of parts. The solution to attracting the top 100 dealership groups in Paul Rusnak, Chairman of more women is education. the country and moved up in the The Rusnak Auto Group “I think that they just need to rankings in 2014, according to Ausee the path. I think sometimes tomotive News. they don’t see the opportunity of earning the kind of Victoria was not naïve in thinking that relying on her money that you can earn in this business. The way that business acumen alone was all she needed to run a sucI’m trying to attract more women into the business is to cessful auto group. She enrolled in NADA’s Dealer Canditalk about it – a lot.” She was recently invited to speak to date Academy, and to further understand all the workings a group of students at the University of Southern Caliof a dealership, she implemented what she called “walk in fornia about how to buy a car, but grabbed the opportuyour shoes,” where she spent a half day to a day in every

nity to speak to them about the rewards and perks of the car business. “I told them that our industry is like the ultimate retail. You can sell Chanel purses and make money. But you can sell Porsches and make a lot of money.” While it has long been suspected that women are better suited for consultative positions, a recent study by a team from Cambridge University found that the parts of the brain linked to emotions, calculating risks and the ability to listen were more prominent in women than in men. And no one will dispute that having the ability to listen to a customer’s wants and needs is crucial in the sales process. Which is why Victoria believes women and car sales is a perfect �it. Today’s consumers want to be helped in buying a car – not sold to, she said. Paul Rusnak also knows the value of listening. “One of the best pieces of advice my father has given me is to listen more than talk, and then form your own opinion. It’s pretty good life advice,” said Victoria. With women emerging as the dominant decision-makers in car purchases, Rusnak Auto Group has incorporated training for its sales associates on best practices in working with women shoppers – all in an effort to enhance growth in the marketplace. Speaking of growth, the group is actively looking to acquire more dealerships, but not just for the sake of adding stores. “It has to be the right brand and the right market. That’s what it’s really about,” said Victoria. Being a private, family-owned corporation “affords you the opportunity to be nimble to make decisions at a pace that is comfortable for your organization.” And if things go as she plans, Victoria will double her company’s pro�its while maintaining the level of integrity and pro�itability – and the reputation – of the auto group her father founded more than a half century ago.

By the Numbers: Number of Stores: 15 Number of Brands: 11 Number of Employees: 800 Number of New Units Sold in 2014: 10,592 Number of Used Units Sold in 2014: 4,004 APRIL

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Success is a Choice It takes more than just ‘showing up’ to be successful. BY MARK TEWART

oody Allen said, “Eighty percent of success is just showing up.” If that were the case 80 percent of people would be wildly successful millionaires. You must show up – and do something! Success is created through habitual productive actions. I see tons of people in dealerships that show up everyday. They meander through the day like a zombie, they get by, they pay their bills, they go home to watch hours of reality TV and they survive. They showed up. Showing up is not enough. Most people show up. The question is, “Can you really show up?” There are 1,440 minutes in every day. Do you use them productively? All humans are capable of so much more than we allow or choose. I use the word allow, because you have to first allow yourself to be successful. Most people have preconditioned thoughts, beliefs and patterns that limit everything they do and the way they do it. Your patterns started to develop in childhood and your self-image was made like a waﬄe in a griddle. The people in your life started to pour what they chose for you and your image into that griddle and it spread out into that mold. Your self-image became grilled into your subconscious just like a waﬄe is grilled into the mold of the griddle. Others chose for you based upon what they thought and you allowed it. You probably did not realize that by allowing what they were choosing for you and who they thought you were, that you were possibly choosing your life at an early age. Unfortunately, it was a passive choice based upon what others told you or demonstrated for you. Others decided what you were good at or not good at. Others decided what you were chosen for and not chosen for. Others told you what you should try or not try. Others told you what you should fear. Others demonstrated in school, church and home what the 22

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pecking order was and exactly where you should be in that order. Others decided your caste just like if you had grown up in the caste system in India. You were brainwashed by people you liked, loved and trusted. Many of these people brainwashed you

You will become successful when you are more motivated to let go of where you are than you are to holding on. with their beliefs and limitations out of so-called love for you. They wanted to protect you. Without realizing it, those people held dominion over you then and they still do. You are a victim to what others have decided for you. You are a slave to others everyday by the choices you make and the life you live. You will become successful when you are more motivated to let go of where you are than you are to holding on. Don’t be a victim. When you continue your current thoughts, emotions, habits, success and failure patterns based upon the past and what others have selected for you then you are a powerless victim. You have given dominion of your power to others. You are acting everyday as a remote control robot guided by others. Stop It!

This is your life! This is your power! This is your choice! So choose it! You choose to win or you choose to lose but the choice is always yours. No excuses. Never allow one excuse or you will allow a million. Allowing excuses becomes your go-to comfort food. It’s like a nice warm blanket you wrap yourself in to feel better. If you choose excuses you can be confortable in your mold that was created for you. You can be that waﬄe everyone else wants to be. What do you want? I invite you to take a pencil and paper and write down what others started to tell you about what your weaknesses were, limitations, what you should or should not do when you were young. I want you to write down what experiences gave you pain, feeling of failure, embarrassment or gave you the feeling of lack, scarcity or not quite measuring up. When you write down all those things, I ask that you put them in perspective. Are they true? Why? Who said? Why do they matter? What makes those experiences forever? What makes those failures, feelings or embarrassments forever reality? One thing makes them so – choice. You must realize that everything is a choice. Let go of everything. Make your fantasy your reality. All limitations are fear-based. Ask yourself the following three questions: • What is the worst that can happen? • What is the best that can happen? • What is the most likely to happen? Will the worst kill you? Can you recover in your lifetime? Stop mentally choosing the worst-case scenarios and choosing to believe in average results for you. I tell my son everyday when I drop him off at school, “Think big, live large and you are in charge?” Think past your comfort zone. Think past your current chosen reality. This is big! Don’t even worry about believing your thoughts yet. The first step is to allow yourself to think in these terms.

TO BE SUCCESSFUL, YOU MUST GET OUT OF YOUR OWN WAY

One way to identify how you limit yourself is to recognize the mental game you might be playing with yourself that I call the “When-Then Syndrome.” When I get to (blank) then I will (blank). When I earn $(blank), then I will (blank). When I learn (blank), then I can (blank). Or maybe you play the “Someday Game.” Someday, I am going to (blank). Someday, when this all settles down, I will (blank). Someday, this will be better. Unfortunately for many, those “somedays” never come. Unfortunately, those somedays are the built-in excuse of comfort. It’s the comfort food of choice by many that keeps them lazy, unproductive, unsuccessful and unhappy. It’s a built-in tool of professional victims. Shedding poor or average begins with complete responsibility. Take responsibility even when you don’t think it’s your fault. Take responsibility every time for everything because it eliminates all excuses and makes you stronger. Taking responsibility forces you to deal with everything and becomes your success habit for processing things immediately and moving on rather than bogging yourself down in the negative thoughts and emotion that can tie you into victimhood.

MARK TEWART President of Tewart Enterprises Inc. Mark is a sales expert and professional speaker, trainer, consultant, entrepreneur and author of the best seller, “How to Be a Sales Superstar – Break All the Rules and Succeed While Doing It.” He has a 27-year career ranging from sales to becoming one of the youngest executive managers in the country at the age of 27 to now being a professional speaker, consultant, founder and president of four successful companies. Mark is also a professional member of the National Speakers Association and the Author’s Guild. Visit his website at www.MarkTewart.com.

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TRIAL CLOSES –

What Do They Really Accomplish? Ditching trial closes will put your customers at ease and enhance their buying experience. BY DAVID LEWIS

nyone who is familiar with what I teach, or has been exposed to my training for any length of time, knows how I feel about trial closes. Having been associated with the car business for going on 35 years, I can truly say that I see no value in them unless you are trying to put pressure on the customer. It amazes me how many professional trainers still recommend and teach trial closes as a way to sell cars. I understand that it may be acceptable for someone whose sole motivation is to sell a car today at all costs, but if you are trying to build a long-term career based on customer satisfaction and loyalty, the damage of trial closes is undeniable. Consider the following trial close that has been very popular for many years: “If we can come together on terms and numbers are you willing to buy the car today?” Let’s dissect this trial close and examine this question, which is usually put to a customer after they have landed on a vehicle they seem to like.

“IF WE CAN COME TOGETHER ON TERMS AND NUMBERS…” The first thing we see is that this question immediately puts the emphasis on price. You are no longer selling the vehicle, yourself or the dealership. Your total emphasis and incentive for the customer is based on the price they are willing to pay. With most customers, you just put them on the defense. In an effort to push the deal forward for fear of loss, you just told the customer that you will do what it takes price-wise to sell them a car. You haven’t finished presenting all that you have to offer, yet you have started negotiating on the lot before you have earned the right to ask for their business. Moving along to the second half of this trial close:

“…ARE YOU WILLING TO BUY THIS CAR…? ” Here you have another problem. You don’t know if the customer has taken mental ownership of the vehicle, yet you are pressuring them to make a buying decision before they even know that this is the car for them. If you have managed to ease some of their defensiveness before you made that statement, you have just reignited it and put them on full alert. They are now thinking, “This person only cares about selling me a car. They are not at all interested in my wants or needs.” The final word of your trial close question is:

“…TODAY.” This is the epitome of a pressure word and by using it, you have now aﬃrmed what most people feel about TO SEE MORE FROM DAVID LEWIS GO TO CBTNEWS.COM

car salespeople: “They want to sell me a car today no matter what I want, or if it is the best thing for me.” Let’s look at another trial close that is gaining its own popularity with some salespeople:

“ON A SCALE OF 1 TO 10 HOW WOULD YOU RATE THIS CAR?” That would be good if you were asking someone to judge a chili cook off, but what kind of answer are you looking for? If they say seven, which most do, then what is your response? The common one is, “So what would it take to make it a 10?” Now you are increasing the pressure even more. Did you listen when they were telling you what they were looking for during the qualification process, or were you so busy trying to sell them something that you never took the time to find out what they really wanted? If this car doesn’t fit what they are looking for, why are they even at the place where you would ask that kind of question? This is just another example of things that have given us such a bad reputation in the marketplace. It is also another example of deviating from a struc-

and with the dealership, it is time to go to the closing table and not before. Why would you want to start closing on the lot when you are probably only three to five minutes from completing your presentation and going to your desk? Why take the risk of negotiating at this point rather than to have the customer sitting comfortably in your oﬃce where they would be expecting you to begin negotiations? If you do start negotiating on the lot exactly what do you think you will be negotiating? Price and price alone! Trial closes send a signal to the customer that you lack confidence in your vehicle and in them as buyers. Every customer knows that you are in the business to sell cars and they have come there because they are most likely looking to buy one. Let your sales presentation have its full effect before you start trying to close the deal. Pressure only makes them wonder why you have to use it and drives them to think maybe you are willing to go lower in the price rather than to lose the sale. When you have taken ample time in every aspect of the process before moving to the next step, by the time you reach the opportunity to ask for the sale, both you and the customer should know whether they are on the

REMEMBER, IT’S NOT JUST THE CAR THEY ARE LOOKING FOR MOST OF THE TIME; THEY WANT A SALESPERSON THEY FEEL COMFORTABLE WITH AND A DEALERSHIP THAT THEY BELIEVE WILL BE ONE THEY WANT TO DO BUSINESS WITH. tured process before it has been brought to the place of asking for the close. Remember, it’s not just the car they are looking for most of the time; they want a salesperson they feel comfortable with and a dealership that they believe will be one they want to do business with. A well-structured sales process doesn’t require trial closes because the salesperson isn’t going to get to the close until they have earned the right to ask for it. Until the customer has shown evidence of mental ownership and they have had a tremendous demonstration drive followed by a great external walk around and a strong service walk, the trial close has no value. When you know they are comfortable with the vehicle, with you

right car and whether or not they like it enough to buy it. Shortcutting the process with trial closes is shortcutting your chances of selling the car and making a good gross. If you have done a good job, why should you need to do that? You don’t. In my experience, trial closes create less sales and lower grosses. It pits the salesperson against the customer and in the end, creates negative tension that could have been avoided completely. Have confidence in yourself, your abilities, in the dealership and the vehicles that you sell. Do a great job presenting those things and if the customer is happy, you won’t have a problem when it’s time to ask the closing question.

DAVID LEWIS President of David Lewis & Associates David Lewis is the president of David Lewis & Associates Inc., a national training and consulting company that specializes in the retail automotive industry. He is also the author of four industryrelated books, The Secrets of Inspirational Selling, The Leadership Factor, Understanding Your Customer and The Common Mistakes Automotive Salespeople Make. Visit his website at DavidLewis.com.

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VENDOR PROFILE

OFF THE HOOK Dealer clients of HookLogic are seeing an incredible 60-percent show-to-close ratio. BY CAROL WHITE dles the gift-card redemption in less than 30 seconds. The customer immediately receives an e-code on their mobile device so that the dealership can move on to what is really important – selling the car. “We get a 99.2 percent accuracy rate on that data we collect because we give the customer something in exchange for their information. There has to be something in it for them,” said Metter. HookLogic partners with big data companies including IHS/Polk, Shift Digital, and Urban Science in order to match registration data. If, for whatever reason, the shopper cannot visit your dealership immediately, they are given the option to save their offer in Apple’s Passbook or Google Wallet – which are notification- and location-based apps – to redeem later. So when that shopper is in the area of your dealership, they’ll get a notification reminding them they have an of-

DEALERS USING THE COMPANY’S AUTOHOOK SUITE OF MARKETING SOLUTIONS SEE ALMOST DOUBLE (ABOUT 32 PERCENT) THE AMOUNT OF SHOWROOM TRAFFIC. fer from you. And by using latitude/longitude geo-fencing, notifications can even be sent to shoppers if they’re in or near one of your competitors. Conquesting the elusive mobile shopper who doesn’t visit your website has been an impossible task in the past. But HookLogic has a secret weapon. Through its partnership with Verve Mobile, anytime a shopper is on

HookLogic’s Ann Arbor, Mich., offices are located in a former microbrewery. Pictured are John Behrman, left, chief product officer, and David Metter, president of HookLogic, auto. 26

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one of the hundreds of in-network mobile sites and apps, such as music (Pandora, Spotify, etc.) or mobile news sites (TV, radio), they’ll receive a dynamic offer from your dealership, specific to their geo-fenced location. The company’s platform is not a “spray and pray” proposition. Potential customers can be targeted depending on where they are in the funnel, the make and model they’re considering, from where they are shopping, their market area and aged inventory, for example. The offers themselves can be modified also based on a number of criteria – a $50 incentive might be offered to a customer traveling farther to get to your store, while someone around the corner might receive a $25 gift card or nothing at all. “AutoHook was offering dynamic content on dealer websites years before others thought about it. We go down deep and watch a consumer’s behavior to make sure they’re really intenders. As a for-

mer car salesman, I don’t want to waste salespeople’s time. My goal is to make sure that we drive the best opportunity with the highest propensity to buy into the showroom so the salespeople can do what they do best. And that is sell a car,” said Metter. But don’t dismiss HookLogic as simply being a giftcard company. “We do use gift cards to incentivize the consumer, but we do that as a means to an end.” Aside from the increased ﬂoor traﬃc and, ultimately, higher close rates, the real benefit for dealers and OEMs is the invaluable information they receive in monthly registration data and attribution reports, according to Metter. “Because the information is accurate and can be matched against registration data at an industry-best rate, the dealer can tell who showed up and bought, but more importantly, who didn’t,” said Metter. “So if 35 people show up at your dealership, I can give you reporting that says 22 of those shows purchased at your dealership. But I know which 15 of them left the dealership, and more importantly, where they purchased – did they stay in brand or did they go to another brand? And the majority of the time, they stay in brand and just pick another dealership to purchase from.” This information helps dealers get a handle on which sales processes are working and which ones might need some work. “In the past, dealers have not understood why customers went elsewhere, but this information can help them get a glimpse of where the breakdown is,” explained Metter.

PHOTOS BY DOUG COOMBE

f you waIf you want to sell more cars, you have to get shoppers into your showroom, according to Captain Obvious. That, of course, is easier said than done. With 95 percent of online shoppers opting to pass on the dreaded lead form, how can your salespeople reach those stealthy in-market consumers? HookLogic has the answer, according to David Metter, president of the company’s automotive division. Give them what they want. A friendly, knowledgeable sales associate? The lowest price? A huge selection in inventory? Great customer service? OK, yeah, they want that. But your competitors are using the same playbook. What you need is a “hook,” something that will make it worth their while to take one of your vehicles for a spin, thus driving more showroom traﬃc for your salespeople. Like maybe a $25, $50 or even a $75 incentive. It sounds too simple, but it works. Dealers using the company’s AutoHook suite of marketing solutions see almost double (about 32 percent) the amount of Internet showroom traﬃc. “And the show-to-close of those customers is over 60 percent. It’s crazy,” said Metter. A recent report showed that Ford dealers using AutoHook’s Web2Show website solution generated 32,155 leads with 9,838 walk-ins for a 31 percent show rate. Of those, nearly seven in 10 bought a car for a 68-percent show-to-close rate. Getting the consumer to the showroom and emotionally connected to the car that they are interested in is what it’s all about. HookLogic offers its dealer clients three solutions – Web2Show, Lead2Show and its newest offering, Mobile2Show. With all three products, AutoHook drives the highest-intent buyer into the dealership, tracking their path the entire way. They show up at your dealership, go for a test drive, and with an 8-digit code specific to that shopper (and marketing path) HookLogic han-

The auto division of HookLogic came about in 2007 after a chance meeting between Metter, who was the CMO of MileOne Automotive headquartered in Maryland, and HookLogic’s founder, Jonathan Opdyke. Originally, the company operated within the travel sector. The two men pondered the idea that if it worked for the travel industry, why wouldn’t it work for the car business? MileOne began fully testing the platform in 2008, right about the time the market tanked. But the auto group not only was able to keep its head above water, but also managed to outperform many of its competitors. “Our total number of sales went down, but our market share went up incredibly and our cost per sale went down dramatically,” said Metter. “A lot of it was attributed to being able to figure out who to go after and when to go after them to win market share in our area. Our competitors had no idea what we were doing” In 2011, Metter joined the HookLogic team, bringing the AutoHook product to market. Today, HookLogic’s platform is endorsed by several OEMs including Ford, GM, Chrysler, Kia and Subaru, and is used in some way by more than 5,000 dealerships nationwide. “AutoHook is creating the attribution railways, both in showroom visits and sales, that OEMs, agencies, vendors, and dealerships can easily tie into their current marketing programs,” he said. Metter predicts that the auto team at HookLogic will grow about 50 percent by the end of 2015, with the majority of that growth in the mobile sector.

From left, Ani Hagopian, Andrew Mock, Cory Beadle and Dustin South enjoy a friendly game of foosball at the company’s Ann Arbor, Mich., facilities.

A Dynamic Workplace

Conference rooms at HookLogic sport cool names like “Motown Funk” and “Classic Rock.” “We’re the first to market with our mobile showrooming solution for auto dealers,” he explained. “Our mobile solution gives dealerships a competitive advantage in the marketplace where consumers are shopping. They’re using their mobile devices in almost every aspect of their car-buying process, especially when they get down to that moment of truth. Their mobile device is essential to that last-minute decision.” So, in a nutshell, this is how the Mobile2Show solution works: a serious, in-market shopper is visiting your website, possibly showrooming from a competitor’s lot, and a message dynamically shows up from your dealership offering them an incentive to come test drive the vehicle they’re researching on your site. The customer then enters their email or mobile number – no need for their name at this point. Through HookLogic’s partnership with Contact at Once!, the BDC or salesperson can then send a text to that shopper extending the offer to test drive.

HookLogic has won three Automotive Website Awards for marketing innovation. Metter credits the development and auto teams for the success his division has enjoyed. HookLogic is headquartered in New York City, but the auto team is based in Ann Arbor, Mich., just a few minutes from the University of Michigan campus. The proximity to the school enables the company to showcase its innovations and talent to prospective employees. And if that doesn’t hook ‘em, perhaps the office environment will. HookLogic’s Ann Arbor offices are housed in an historic 11,000-squarefoot building built in 1927 that was home to a popular microbrewery before it moved out of state. Fifty of the company’s 145 employees work in the legendary building, which features an open-air space, high ceilings and exposed brick walls – the perfect venue for tailgating during the Wolverine’s home football games. It’s a dynamic, dog-friendly workplace with PingPong, foosball, company-issued earphones (for when the employees need to block out distractions in the wide-open bullpen area) and creatively named conference rooms, such as the Motown Funk room and the Classic Rock room. Employees are free to come and go as they please with no set office hours, and their vacation time is unlimited. Hiring the right people means that management doesn’t

have to babysit the employees. “Our employees have bought in to what our mission is,” said Metter, “and so putting a time table on when they have to be in the office and when they have to leave and when they take lunch, I think, restricts some of their creativity. We have an unlimited amount of vacation time, however, there’s not one employee that abuses that. In fact what we see is they take less vacation time because they like being at work, they like their co-workers and they like the environment that we’ve provided for them.”

David Metter President of HookLogic, Automotive

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F&I

BEYOND THE

Headline Learning how to read the whole credit report and getting the full consumer story can help you avert potential missteps. BY JENN REID

onsumer credit reports may rarely win a prize for their memorable prose, but they should be at the top of your reading list if you want real insight into a vehicle shopper’s credit history. To get the essential facts that matter when talking to vehicle buyers and lenders, you also need to make sure that you read more than just the headline – or in a credit report’s case, the corresponding credit score number. Like headlines, numbers may not always tell the full story. When sales and F&I managers first glance at a consumer credit report, all those lines of text, numbers, abbreviations and acronyms may seem as foreign as an owner’s manual is to most car buyers. But, don’t fret; reading a credit report isn’t nearly as frustrating. By taking just a few minutes to learn what it all means, you

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might ultimately save time, money and improve your credibility. For starters, the information you see on a report may vary depending on the credit bureau that your dealership works with, but the general layout is usually the same (the example outlined below is from an Equifax credit report). Along the top, the first thing you typically see is that one piece of information that most everyone understands – the consumer’s three-digit credit score. It’s followed by a brief narrative that provides items that impacted the particular score – great talking points when speaking with vehicle shoppers. Now that you’ve read the headline, it’s time to get the full story. Learning how to read and interpret the entire report offers benefits that can help avert potential missteps. Viewed in a vacuum, a solid credit score may

well signal “all systems go,” but important additional data in the report can ensure that you evaluate potential financial risks more effectively. For example, imagine the consequences if you moved ahead or spot-delivered a deal without seeing that crucial line of information about an individual’s recent bankruptcy filing – an action that, depending on the consumer’s prior history, may not have affected the credit score yet. Conversely, a person could have a low credit score despite having turned a corner and sustained a timely payment history, which demonstrates that he or she may be able to effectively manage an auto loan. Dismissing this potential sale based solely on that credit score means you’ve opened the door for a competitor who is able to recognize that this person is becoming financially stable.

So, what nuggets of information can you expect to ﬁnd in a report, and how do you correctly interpret them? Let’s have a look at both the basics and other valuable pieces of content.

ALERTS

SUMMARY OF FILE ITEMS

A variety of alerts or indicators may be found on a credit file. Flags that indicate name, address or Social Security number discrepancies are returned when a difference is found between the information provided in the inquiry, compared to what is on the consumer’s file. Consumers may also place alerts or narratives on their file. Alerts include indicators of potential fraud or active military status, and may also include consumer contact information for verification. It’s important to note these alerts, as they may signal when you should proceed with caution.

This line in the report provides a snapshot of all of the information available in the consumer’s ﬁle before going into more detail in the following sections. Here are some things you can determine from the consumer’s ﬁle:

CONSUMER REFERRAL MESSAGE This brief line states the name of the credit bureau that ran the report along with contact information for consumers to use in case one of the aforementioned fraud alerts needs to be temporarily lifted. It is also where customers can go to get a copy of their consumer report. Remember, dealers are not credit reporting agencies and should not be providing consumers copies of their reports.

This section includes the information you need to verify to ensure that you have the correct financial profile for your customer. Along with the basics, such as name, birthdate, Social Security number, addresses, and past and current employers, this section offers extra details on existing fraud alerts, as well as a summary of the individual’s recent credit history. Make sure to pay particular attention to the listed addresses. A report that calls out several places of residence should raise questions about whether the person lives where they say they do, and where they are planning to keep the vehicle. This uncertainty may cause lenders to hesitate, or add additional stipulations to deals since they need to know where to send monthly account statements or, in the event of default , where to find the vehicle.

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Here’s where you’ll see any information about declared bankruptcies, collection items, judgments and tax liens. Details for these items include dates, case numbers, collection agency names and outstanding balances.

 The oldest open and newest reported dates of trade  The presence of public records or other information  The number of tradelines  The range of high credit amounts for open trades

For an Equifax credit report, the spelledout numbers following these abbreviations refer to the number of accounts that fall under speciﬁc rate codes, which indicate the current status of a consumer’s account:  ZERO: Account is too new to rate, or approved but not used  ONE: Consumer pays as agreed  TWO: Consumer pays 30-59 days past due and is not more than two payments past due  THREE: Consumer pays 60-89 days past due and is not more than three payments past due  FOUR: Consumer pays 90-119 days past due and is not more than four payments past due  FIVE: Consumer pays 120 or more days past due and is more than four payments past due

PERSONAL INFORMATION

PUBLIC RECORDS

 SEVEN: Account included in Chapter 13  EIGHT: Repossession  NINE: Charged oﬀ  OTHER: No rate reported

INQUIRIES Inquiries provide insight into a customer’s request for an extension of credit. Up to two years of inquiries, which includes the requestor and the request date, may be displayed on a credit report. Be sure to pay special attention to previous inquiries. If you notice that multiple inquiries were made by other dealerships, you should consider asking your customer about it to ensure there aren’t any underlying problems present that prevented previous transactions that you can account for when obtaining ﬁnancing.

TRADELINES The tradeline section of the credit report is the detailed view of a consumer’s payment history. Each line details the name of the lender reporting the information, report and open dates for the account, credit limits, term lengths or monthly repayment amounts, balances owed as of reported date and past due amount as of reported date. Each tradeline is classiﬁed with one of the rate codes detailed above in addition to a letter designating whether it is a revolving, open or an installment account.

Digesting all the valuable information in a credit report isn’t just good for you and your dealership – it’s also a great tool for ensuring transparent communications with your lending partners as well as your customers. Reading is indeed fundamental – especially when it’s a credit report. JENN REID Sr. Director of Product Marketing, Automotive Services at Equifax Jenn brings a unique perspective to Equifax Automotive Services with broad professional experience in the dealer, lender and OEM faces of the automotive industry. Her established relationships in the automotive space with dealers, and first hand experience in helping customers make purchases, and combined 14 years in the automotive space bolster Reid’s reputation as an industry expert. Follow Jenn on twitter @AutoJenn.

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FIXED OPS

SHOW ME THE FIXED OPS

– Rod Tidwell, “Jerry McGuire” 1996

Taking a cue from Hollywood could boost your service department’s CSI scores and bottom line. BY JEFF COWAN

ave you ever watched an older movie and asked, “Why don’t they make them like that anymore?” I know why they don’t. It’s because no one would buy a ticket and go. It is not that the old movies were bad; they aren’t called classics for nothing. However, the production values are so low-grade compared to today that modern audiences just cannot look past the antiquated technology. The story alone is simply not good enough in most cases, to hold the audience’s attention. Movie producers are in the movie business to make money. You are in the automobile business to make money. It’s as simple as that, and like the movie industry, you have to keep things modern and relevant or you won’t keep the attention of your customers.

“If you build it, they will come” – Ray Kinsella, “Field of Dreams” 1989

Hollywood and the movie industry understand that if what they are producing is not the latest and greatest, the public simply will not buy a ticket. It is all about the experience. Even from the viewing perspective, the movie industry is constantly changing the audience’s experience. IMAX theaters and 3D movies were all the rage a few years back. Now they are actually changing the seating. There is a chain of theaters called Cinepolis Luxury Cinemas, which has taken movie watching to a whole new level. These theaters offer state-of-the-art screens, sound and projectors. Every seat in the house is a leather recliner that rivals the best recliners you may have in your own home. These establishments deliver everything right to your seat from simple snacks to full entrées and even a complete range of adult beverages. They know that with all of the advancements made to in-home theater systems, the experience in the commercial theater must equal or be greater than what you can get at home or elsewhere. It is working big!

“Hokey religions and ancient weapons are no match for a good blaster at your side, kid.” – Hans Solo, “Star Wars” 1977

The auto industry knows that you have to constantly change to lure the customer through the front door. Even though you can buy cars like the Ford Mustang and Chevy Camaro that look retro and evoke nostalgia, they clearly are updated technological pieces of art. They are not the same cars. People like the old, as long as it is new.

“Surely you can’t be serious.” “I am serious. And don’t call me Shirley.” – Dr. Rumack “Airplane!” 1980 I am dead serious when I say that, on the service side, we keep producing the same old, tired crappy experience, the same way we did three decades ago and we can’t seem to figure out why we struggle so much to attract new customers and retain them. What follows are some ways we can bring our “production values” up to a standard that would show our customers that what we are offering is not the same old rerun, but the latest and greatest and that we will do what it takes to stand out. Nothing that makes sense should be off the table. Let’s break this into three categories: your building, your people and your brand.

“A Nose? You lose the race by a nose; you’d better fall off tryin’!” – Dutch Doogan, “Seabiscuit” 2003 YOUR BUILDING

“I don’t know what we’re yelling about! Loud noises.” – Brick Tamland, “Anchorman: The Legend of Ron Burgundy” 2004

There are three things that drive your customers crazy. The first is the noise factor. If the write-up area is any louder than a Starbucks at 7:30 in the morn-

YOU ARE IN THE AUTOMOBILE BUSINESS TO MAKE MONEY. IT’S AS SIMPLE AS THAT, AND LIKE THE MOVIE INDUSTRY, YOU HAVE TO KEEP THINGS MODERN AND RELEVANT OR YOU WON’T KEEP THE ATTENTION OF YOUR CUSTOMERS.

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MONEY! ing, it’s too loud. If your customers or service advisors have to raise their voices during the write up, your drive is simply too loud. Based on our observations, this is a bigger problem than you may realize. The second is your customers hate it when a place is so nice that it is intimidating and no fun. The dealership I take my car to for service is a prime example. It is new and it has a very fresh, contemporary look. The problem is that it does not look or feel inviting. Although they may have accomplished their goal of looking avant-garde, the problem is that it has the look of an art museum and the feel of a morgue. It even seems to affect the employees, as they have zero personality. You can be modern and fresh and still have personality.

“Oh, this is your wife, huh? A lovely lady. Hey baby, you must’ve been something before electricity!” – Al

Czervik, “Caddy Shack” 1980

The third thing your customers hate about your shop is when it looks old school. With the advent of ﬂat screen televisions and the versatility of computers, there are a multitude of ways you can make even the oldest and most outdated shops look current and modern.

YOUR PEOPLE

“Be our guest. Be our guest. Put our service to the test!” – Lumiere, “Beauty and the Beast” 1991 Next we need to address your staff. There are two areas here that scream for your attention. First is appearance. When I first started visiting service drives everyone wore coats and ties. Then dealers started relaxing their standards and have so to the point that many times a customer cannot tell who is an employee and who is not. A coat and tie may be overkill but a uniform look is not. It may not even be a bad idea to have a uniform designed.

“Bad beer. Bad service. Don’t people know not to come in here?” – Bartender, “Desperado” 1995

The second big area of concern with the staff is consistency. Do your customers receive the same level of service from everyone they come in contact with? Do all of the employees speak the same language (word tracks)? Think Ritz Carlton, Disney, Apple, Starbucks, Nordstrom’s, etc. Every move and every word of every employee is scripted. Consistency is what makes those and so many other companies stand out.

YOUR BRAND

“What we’ve got here...is failure to communicate.” –

Captain, “Cool Hand Luke” 1967

Finally, let’s talk about your brand. Do you have one for service? Don’t feel bad. From what I have seen, less than 1 percent of the dealerships I encounter have a brand for service. We so diligently work on the sales side to carve out our brand. In every marketplace you have the “low payment” store, the “biggest selection” store, the “lowest price” store, the “best buying experience” store, but rarely do you ever see the service side develop a brand and promote it. Not having a brand for service is very perplexing to me. When I address this with dealers and general managers, their standard reply is that they allow each service manager to run the department as they see fit. Meaning, if they have multiple locations they have multiple brands. This is very frustrating to your customers. They like to know that if they visit one location and like it and buy a car from that location, their experience with the service department will mirror the satisfactory experience they had with the sales department. When you have a brand you will have to have a process to support that brand. That in turn will make it infinitely easier to measure the individual success levels of each location and will practically guarantee that your customers will be happy. Here again we address the importance of consistency. By allowing your service managers to run the shop as they see fit, you are guaranteeing multiple brands, multiple processes and massive inconsistency from place to place. Every successful franchise thrives on its brand and consistency.

“My Mama always said, ‘Life was like a box of chocolates; you never know what you’re gonna get.’” – Forrest Gump, “Forrest Gump” 1994 Don’t put your customers in a situation where they don’t know what kind of service they are going to receive. Create a standard of quality that is consistent and you will create a loyal customer. What I have presented to you are a few areas that you can and should look at in an attempt to bring your shop up to level that your customers deserve and are demanding. Today’s customer is the most selective I have ever seen. They are not patient and they instantly recognize when the movie you are playing is old, outdated and has less than state-of-the-art production techniques. If you fail to work on this, frankly, your customers won’t give a damn! They will just go where the seating, story and presentation are superior. Or as Bill Murray, in “Ground Hog Day” so succinctly put it, “Ned, I would love to stand here and talk with you, but I’m not going to.”

JEFF COWAN President of Jeff Cowan’s Pro Talk Inc. Jeff, in his 28th year of training, is recognized as the creator of the modern-day walk around and selling processes for service departments. Currently partnered with NADA, EasyCare, NCM, MPi and other vendors and manufacturers, Jeff is the nation’s authority when it comes to training service advisors and service support staff. Visit his website at AutomotiveServiceTraining.com and sign up for free, weekly training.

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FIXED OPS

At Your

Service

Developing a servant-like leadership culture and mindset can transform the service department from a necessary evil into a very proﬁtable, necessary evil. BY MICHAEL ROPPO

mart dealers, leaders and managers know that running and operating a service department like a well-oiled machine isn’t easy, but boy is it rewarding! Customers come and go and today’s automobiles are so complex that some issues can confuse even the best technicians, which can create stretches of downtime, frustration and lost time. It can also lead to debates about who’s going to pay; customersensitive issues; how to better price labor and services; how to pay technicians; and how to keep everybody busy and happy – all while generating 60 to 100 percent of the total dealership’s net profits. Far too many dealers run the service profit center of their business at break-even or a loss, maintaining the department as a crucial offering for customers – a necessary evil of sorts. While service may not exceed the revenue earned by selling vehicle units, there are several concepts employed by top dealerships to consistently turn a profit. Some examples of those concepts are:             

Create and sell more value Be more open Answer the phones properly, timely and in a valuable way Build and provide more value to every customer Get out of the “can’t-do” business and get into the “can-do” business Get into the express service business and provide value Improve the hour per repair order Improve customer relations Increase gross profit retention percentages Maximize scheduling Create a value-added service organization Maximize the selling and effective labor rates being collected Choose to stay busy no matter what it takes instead of making excuses

From my training and consulting experience, these are just some of the areas that can be further inﬂuenced to generate and retain profitability. However, the more 32

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successful and better operating dealership service departments are the ones who employ people with a passion and a real enthusiasm for service, “valueadded service” that has combined creative value-added marketing with a professional team of technicians to build a service department that is the core of any successful operating dealership. Truly outstanding service, even in sales, must be the focal point and source of all our business! It is where the product and the dealership either become even more valuable or devalued as a brand – everything revolves around the service department. For us, the product

defining a sales-to-service-and-back-to-sales customerretention model that serves the needs of our clients and our industry. The level of service we provide – or don’t – determines the level of wins or losses that are created in our business and industry as a whole.  

 

It’s all about presentation, and the goal isn’t to just up-sell the customer as much as it is to address any safety or warranty issues and values to build trust that begets future business. is only as great as the level of service we provide. If dealers didn’t have the service department, they most likely wouldn’t be in business. I am a tech by trade and I like the enjoyment I get from building fast cars and diagnosing engine problems. I have taken a very serious approach to running a dealership’s service department with a high level of performance culture required for generating careers, results and profitability. Why? It’s very well worth it! As one of my mentors, Grant Cardone, has said, “Success is my duty, obligation and responsibility! Especially in the area for providing premium levels of service!” I am very passionate about

The best operating dealerships are service driven even in sales. The best operating dealerships follow many modern industry best practices and operational inventories. The best operating dealerships have established a few of its own best practices along the way. The best operating dealerships are customerservice driven and are providing truly outstanding levels of service to their valued customer base.

These dealerships have a servant-like leadership culture and mindset that provides the personal touches, where every service and customer-facing team member will go over the vehicle at every delivery with them to confirm the value in the repairs and services that were performed. They explain why they were done, show the old parts and give them a list of recommendations for the next appointment date that is set. It’s all about presentation, and the goal isn’t to just up-sell the customer as much as it is to address any safety or warranty issues and values to build trust that begets future business. In the long run, more and more successful operating dealerships are realizing the untapped potential and the profitability and income which can be generated and retained from a profit center which many refer to as the back pain or the very necessary and profitable evil department called Serve Us! Get it? Got It? Good!

MICHAEL ROPPO Director of Fixed Operations and Training /QPS of Automotive Domain Results Michael has more than 30 years experience in training and consulting for Automotive Domain Results and its parent company, The Mironov Group. He helps dealers attain maximum profitability, customer satisfaction and retention, by improving the quality of their management teams and the personnel who come in contact with their customers. Visit his website at AutomotiveDomainResults.com

TO SEE MORE FROM MICHAEL ROPPO GO TO CBTNEWS.COM

C O MI NG IN MAY !

SERVICE DRIVE

Jeﬀ Cowan

TODAY.COM

Don Reed

Lee Harkins

Online Daily Newscast

Anne Fleming

CBT AUTOMOTIVE NETWORK IS PROUD TO ANNOUNCE TWO NEW VENTURES IN RETAIL AUTOMOTIVE! ServiceDriveToday.com, an online news source, and Service Drive Magazine, a monthly print publication, will bring Dealers, GMs, Service Directors and Fixed Ops personnel the news, information, trends and training tips they need to operate a smooth and proﬁtable service department.

Brian Pasch

ServiceDriveToday.com will reach more than 50,000 service personnel each day, while Service Drive Today magazine will be delivered to more than 17,000 Fixed Ops Directors and Service Managers in the U.S. and Canada. Access to the industry’s top Fixed Ops Trainers and Consultants is now just a click away.

Monthly Magazine

Drive more service proﬁts with Service Drive Today! Rich Holland

Go to ServiceDriveToday.com and sign up for your free subscription. ServiceDriveToday.com is a member of the CBT Automotive Network

News INDUSTRY

Richard Klaben, president of Klaben Ford Lincoln, Inc.

Fitzpatrick Honored With Lifetime Achievement Award

akland, Calif., auto dealer Ed Fitzpatrick was the recipient of the 2015 David F. Mungenast Sr. Lifetime Achievement Award. Presented by the American International Automobile Dealers Association, the award is given annually to a leader who possesses similar community spirit and devotion to the international nameplate auto industry as the award’s namesake. David F. Mungenast’s legacy as a dealer, husband, father and member of his community inspired AIADA’s board of directors to accept nominations every year for the award. Fitzpatrick owns Fitzpatrick Dealership Group—California’s largest African American-owned dealership group. He is also an active member of the auto retail industry, serving in a variety of leadership roles, including chairman of the National Association of Minority Auto Dealers (NAMAD), founding president of the Toyota/Lexus Minority Dealers Association and board member and chairman of the California New Car Dealers Association. In addition to his work in the auto industry, Fitzpatrick has been recognized for his generosity in supporting causes within his community, and has been recognized through numerous awards such as the NAMAD Lifetime Achievement Award, the California New Car Dealers Association Dealer of the Year Award and Time Magazine Quality Dealer of the Year Award.

Westbrook Toyota Receives 25Year Award

on Lorensen, right, dealer principal of Westbrook Toyota in Westbrook, Conn., received the 25-year anniversary award from David Christ, the manufacturer’s New York regional general manager.

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Klaben Ford Lincoln Receives National Award

laben Ford Lincoln in Kent, Ohio, has been awarded a 2015 DealerRater US National Overall Dealer of the Year award, which recognizes auto dealerships across the U.S. and Canada that deliver outstanding customer service, based on consumer reviews written on DealerRater.com. Klaben Ford Lincoln Inc. was rated #1 Overall in the nation. “Earning this award is a reﬂection of our entire team’s commitment to delivering the most satisfying customer experiences,” said Richard Klaben, President, Klaben Ford Lincoln, Inc. “What makes this award so significant is that the people we value most – our customers – are the judges. I couldn’t be more proud of this impressive accomplishment since every Klaben team member in every department plays an integral part in customer satisfaction. This recognition aﬃrms that our joint efforts, on a daily basis, do indeed make a difference. I am truly grateful to our customers and my fellow team members for this distinguished honor and recognition.” Klaben Ford Lincoln, Inc., is part of the Klaben Automotive Group which also includes Klaben Chrysler Jeep Dodge, Inc. in Kent, Ohio, and Klaben Ford Lincoln of Warren, Inc. in Warren, Ohio.

Syracuse Dealers Raise $254,000 for Charity

he Syracuse Auto Dealers Association’s 17th Annual Auto Show Charity Preview, the largest fundraising event in Central New York, raised almost $ 254,000 for 13 charities. Co-chaired by Jim Barr, left, of Crest Cadillac-Acura, and Gino Barbuto of East Syracuse Chevrolet, the event donates 100 percent of ticket proceeds to fund the area’s local participating charities. More than $2.7 million have been distributed since the event’s inception.

shopping. I constantly have to build more value in the products, our dealership and myself. Regardless of what a person may be buying, there is someone that will offer it for less. However, it is more than price. I want them to know that the purchase is only the beginning of our relationship. I will be there for them to help them navigate through the whole ownership experience. We have a great service department and technicians that have over 35 years at our dealership… they know the products.

SALES SUPERSTAR

TO WHAT DO YOU ATTRIBUTE YOUR SALES SUCCESS?

I attribute my success to never quitting! I have some qualities, such as kindness, persistence, a hunger for learning and hard work, which have added to my success. My Dad is one of my heroes. I believe that growing up on a farm ingrained in me a great work ethic. I don’t like to sit around. I would be remiss if I did not mention all the great people I get the privilege of working alongside of. Our team is full of great leaders and a dedicated staff. We truly are a customer-focused dealership.

NAME: LINDA TOUGAS DEALERSHIP: EAU CLAIRE AUTOMOTIVE GROUP, LOCATION: EAU CLAIRE, WIS.

WHAT ADVICE WOULD YOU GIVE SOMEONE NEW TO AUTOMOTIVE SALES? Joe Verde advises salespeople

FAMILY: I have a son, Dallas Tougas, and a daughter, Amy Underwood, along with my three amazing grandsons and five siblings. My father, Ian Tougas, remains on the family farm in Minnesota where we Celebrated Century Farm in 1999. My mother Gertrude passed in 2007. I also have an incredible spiritual family at The Church of Christ in Eau Claire.

matters. I constantly try to learn more, push myself to work harder and I avoid as much negativity as I can. I try to read things that are inspirational and motivating. Grant Cardone offers great sales training. The owner of our dealership is a wealth of knowledge and we can get as much training as we are motivated to get.

HOW MANY UNITS DO YOU AVERAGE A MONTH?

SALES IS AN EMOTIONAL BUSINESS! I WILL BE THE FIRST TO TELL YOU, I AM NOT THE BEST. WHAT I DO HAVE IS A HEART FOR PEOPLE.

My 90-day average is between 17-20. I also have had days where I have sold three to five in one day. Last year was my second full year in the auto industry and I sold 203. HOW MANY YEARS IN THE AUTO BUSINESS? Three

years in June.

WHAT MADE YOU WANT TO BE A SALESPERSON IN THE AUTO INDUSTRY? It was never my intention

to make a career selling automobiles. It happened by accident. Sales is an emotional business! I will be the first to tell you, I am not the best. What I do have is a heart for people. I had no idea I was competitive, until I began this career.

WHAT DO YOU LIKE MOST ABOUT YOUR JOB?

The thing that I enjoy most about my career is meeting so many incredible people. I find so much joy helping someone make their dream come true! I have many customers who have commented to me, “You made this so easy!” or “This was the best car-buying experience ever!” I stay busy – I am not one to sit at my desk. Over the course of a day, I typically put on about 6 miles of walking. There is always something to do. My goal is to offer people a different buying and ownership experience! WHAT MOTIVATES YOU? One day I received my

paycheck and on it, my boss, Mike Keil, wrote, “That’s my girl,” and I knew for the first time in my life this was my opportunity to forever change myself and my life. Someone saw in me someone great – that mattered more to me than the paycheck itself. God motivates me. I strive to become the woman He created me to be. When my head hits the pillow at night and I review my day – I sleep great when I know that I gave 120 percent. WHERE DO YOU FIND INSPIRATION? I have always

had a heart for the underdog. God has always had a heart for the underdog! I get my inspiration from the greatest book in the world – the Bible. I have a few close friends that cheer me on – it all

HOW DO YOU FIND NEW CUSTOMERS? I am

currently going from business to business in the area dropping off folders with information about Abra Auto Body, Eau Claire Automotive and myself. It is my hope that my customers will “insist” that their family and friends come to see me when they are looking for an automobile.

WHAT’S THE GREATEST CHALLENGE IN YOUR POSITION AND HOW DO YOU OVERCOME IT? Some people believe

that I have a strong, outgoing personality. The truth is I have to walk through the fear of meeting people every single day. I feel nervous and fearful on a daily basis. So, I welcome everyone with a firm handshake and a smile. I am responsible for my actions and me. The Internet allows people to do a lot of price

to “avoid the huddle.” I would tell a new salesperson the same thing. If you feel desperate or afraid, customers sense it. You will hear all sorts of things in the huddle that do not build confidence, but rather are judgmental. Study your products. Be enthusiastic and persistent! When I focus on the customer and their needs, I do great.

WHAT ARE YOUR INTERESTS/HOBBIES OUTSIDE OF THE DEALERSHIP? Relationships and my spiritual

well-being are the most important in my life. I enjoy visiting my kids and grandsons. I travel to visit my Dad and other family members. Last year I made a transformation with the help of my diet coach I was able to lose over 60 lbs and 67 inches. My body has never been this size. I feel great and my self-confidence has grown. I love to write and have authored a book titled “Fresh Laundry”, and am working on a second book. I am a constant work in progress. I read inspirational books and draw on the wisdom of others close to me. I hope to own a Jeep Cherokee Trail Hawk one day! I enjoy giving back, so when I have the opportunity to volunteer for events through work and community, I do.

NOMINATED BY MICHAEL KEIL, DEALER PRINCIPAL, EAU CLAIRE AUTOMOTIVE GROUP, NISSAN-CHRYSLER-DODGE-JEEP-RAM AND ABRA AUTO BODY I would like to nominate my top sales professional, Linda Tougas. Linda had never sold in her life when we hired her. We new right away she was special with her very enthusiastic and friendly manner. After a slow start as she got her confidence and product knowledge down pat, she shot right to the top! We have a Chrysler, Dodge, Jeep and Ram store, as well as a Nissan store on the same lot. Linda has averaged 18-plus units with several three-month averages of 22! She is always the first one in the store in the morning where she enthusiastically greets everyone to make sure our team gets off to a great start. She is the first one with a snow broom in her hand when it’s time to clear the lot – which happens a lot in Northwest Wisconsin! I have been in the auto retail business for 30 years and can truly say she is by far the one that stands out. As the dealer, I train all new hires and have been training sales and service writers for 25 years and no one has ever wanted to learn more and accept training more than Linda. Who’s Your Superstar? Do you have a salesperson who pushes the envelope each month and consistently lands at the top of the leader board? Does one of your professionals make considerable contributions to your community while maintaining a lead position in your dealership? We want to know! Send your nominations to the editor at newsroom@cbtnews.com and let us know why he or she is your store’s Superstar!

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ON THE SET WITH

AUTOMOTIVE NETWORK

Jared Rowe, President of AutoTrader.com

Chip Walker, President of Custom Facilities

Gary Tucker, CEO of DealerRater

Mike Esposito, General Manager and CEO of Auto/Mate

Grant Cardone, CEO of Cardone Training Technologies

Celeste Briggs, Director of Womenâ&#x20AC;&#x2122;s Retail at General Motors

Cory Mosley, Mosley Automotive

Allen Huska, Director of Fixed Operations, Andean Chevrolet in Cumming, Ga.

Brian Faulkenberry, Moderator at NCM Associates

Troy Smith, President of Search Optics

Victor Antonio, Sales Coach and Motivato

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Steve Munyan, President of Hire the Winners

Jeff Faulkner, Principal at The Rawls Group

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Cody Lusk, President of the American International Automobile Dealers Association

Chip Eichelberger, Motivational Keynote Speaker

Shaun Kniffin, Marketing and Technology Director of Germain Motors in Ohio

Lori Wittman, VP and General Manager of VinSolutions

Randy Nelson, Director of Education of the Metro Atlanta Automobile Dealers Association

Dean Evans, CEO of LotLinx

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ASK THE ?

PROS

t CBT News, we are fortunate to partner with the best trainers in the industry. Whether it’s information on sales,

F&I, marketing, management or ﬁxed ops, our contributors are the go-to professionals for reliable, relevant advice for dealership personnel. You have access to the foremost authorities in the retail automotive industry. Need a new closing technique? Wondering what’s the best way to increase sales in the service lane? Send us your questions at AskThePros@cbtnews.com. We’ll forward your inquiries to our ensemble of experts.

THERE’S BEEN SOME TALK IN THE INDUSTRY ABOUT DOING AWAY WITH A DEALERSHIP’S BDC. WHAT IS YOUR OPINION ON THE SUBJECT? –Jon C., Birmingham, Ala.

David Kain, President of Kain Automotive: BDCs, when they are well operated, are exceptional values for the dealerships that have them. In my opinion, BDCs are professional structures used in dealerships to accomplish critical actions that the dealership employees struggle with due to time, skill set or effort. I’ve been getting airtime and print space for my saying, “I’ve been to more BDC funerals than births.” And that statement is accurate. The reason is because most BDCs are setup as strategies instead of structures to accomplish strategies. When designed properly, BDCs are awesome and help dealerships increase sales and gross profits without adding undue cost burdens. When designed poorly, or at the forced direction of an OEM, they tend to be expensive, unproductive and therefore live short lives. If you have a BDC in place you will want to pay particular attention to a few elements that are important to your overall dealership strength. 1. Does your BDC manager have a profit/loss statement that they provide to your dealership management each month that outlines results, costs and profits? 2. Does your ﬂoor sales team rely too heavily on the BDC for their own success instead of creating opportunities for themselves? Does your BDC develop and elevate talent for other roles in your dealership? 3. If you don’t have a BDC in place you will want to determine why your team is unable to accomplish the critical actions that drive more sales and profits. 38

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1. Does your team handle inbound calls and Internet leads effectively? 2. Does your team nurture sales and sales clients to increase loyalty? Whether you have a BDC or you wish to develop one, don’t stop there. Neither will deliver on the immediate and long-term needs of your dealership. For that, you’ll want to develop a BDD – Business Development Dealership – that I’ll explain further in my next article.

CAN YOU EXPLAIN HOW PROGRAMMATIC ADVERTISING WORKS? –Jackson S., Alpharetta, Ga.

Nick Cybela, Sr. Director of Digital Strategy for Force Marketing: Programmatic advertising is a key trend that allows savvy advertisers to leverage data to determine what ads to buy, and do so at a lower cost than what would ordinarily be available to them. It can be applied to display or video buys and represents a huge opportunity for dealers to leverage their own tactics, data, attribution models and strategy towards capturing more buyers and service customers. In the past agencies needed to negotiate with several ad networks (such as Google, JumpStart, or AdMob) directly which involved RFP’s, ongoing negotiation and extensive insertion orders. However, with over 300-plus hours being uploaded to

Fortunately, there are several tools available to combat this including DFA which confirms what local area’s impressions were actually served, and built in functions to eliminate fraudulent activity. It is critical for dealers to ask their providers how they are accounting for and battling fraudulent activity—which is thought to make up as much as 40 percent of display inventory in certain cases. They should also monitor their Google Analytics and utilize Google UTM’s to measure their ongoing efforts.

WHAT IS THE BEST WAY TO MARKET TO SUBPRIME CONSUMERS WITHOUT TARNISHING OUR BRAND? –Ralph G., Jackson, Miss.

Richard Mashburn, Sr. VP of Sales for Global Lending Services: In my opinion it’s really about making sure customers know that subprime lending is available in your dealership, letting them know that you’re open to working with all types of customers with all types of credit. A customer is a customer, and you have products and solutions for all customers. There are many ways to focus on the subprime customer specifically including, strategic direct mail programs and Internet advertising and direct leads. The goal is to get the customer in the door and sell them a vehicle regardless of their credit position. As a dealer, it’s your job to coach your staff on how to identify and sell to customers who have less than perfect credit. It’s not just about making

The great thing about programmatic (computer) driven purchases and optimization is that they run 24/7 across all of the online advertising space. YouTube alone and 571-plus new websites created every minute, this ecosystem has gotten increasingly complex and struggles with various challenges that make this process extremely ineﬃcient for a car dealer who competes for local (versus national) attention. The great thing about programmatic (computer) driven purchases and optimization is that they run 24/7 across all of the online advertising space. One of the common misconceptions is that Real Time Bidding (RTB) is the same as programmatic. In actuality, real time bidding is a key portion of a programmatic strategy involving unsold or “remnant” inventory of sites – but programmatic allows for direct buys with specific networks or websites (ex: CarAndDriver.com). Many dealers miss, or aren’t aware of some of the greatest opportunities within their display retargeting and programmatic strategy. The best performing campaigns that we see involve site retargeting, which reaches customers who visited the site but didn’t convert; CRM and oﬄine data imports which enables dealers to reach customers who came to their showroom or service bays and didn’t convert (or are due back); and contextual retargeting which helps improve consideration and awareness towards in-market shoppers. Google is a key part of any strategy, but only represents one ad network out of dozens available. We have found that by setting customized optimization goals within a leading programmatic platform including vehicle detail page views, lead submissions, phone calls, and hours and directions across a multitude of networks also including (but not exclusive to) Google Display, drives an average of 67 percent more qualified visitors. Fraud is also an endemic issue facing programmatic, real time bidding and display/retargeting.

subprime part of your advertising but really part of your culture and your selling practices. The subprime market equates to about 30 percent of the population – that’s a lot of opportunity. Before launching additional advertising make sure you have reviewed your bureau histories and compared your subprime deliveries to the number of subprime credit bureaus you are already pulling. Keep in mind that there was another subprime customer on the lot or in your service department that didn’t complete an application for every bureau you pulled. Once you are confident you have maximized the existing opportunity, then make it clear you offer financing options for all types of credit in all of your traditional advertising. Lastly use direct mail and internet lead providers to get you that application boost when you’re fully ready. Good luck!

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