CBT News Magazine - May, 2014

COVERING THE INDUSTRY’S TOP EVENTS

CAR BIZ TODAY

see PAGE 28

For Ccmplete interviews with Elway, Painter, and Fields go to CBTNEWS.COM

MAY 2014

ISSUE 3

Entire contents ©2014 Car Biz Today. All Rights Reserved.

A SECOND CHANCE TO MAKE A FIRST IMPRESSION The weak economy might have kept people away from the dealerships for several years, but Jeff Cowan, an authority on fixed ops training, sees that as a unique opportunity for dealers.

He reveals the silver lining behind the Great Recession and explains how dealerships have an unprecedented opportunity to change how a lot of consumers have viewed service departments in the past. His advice on reinventing the service lane is key to getting customers to rethink the service experience.

In his article, Jeff gives five tips to ensure that a trip to the dealer’s service department is worth the customer’s time and effort.

JEFF COWAN President of Jeff Cowan’s Pro Talk Inc.

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KEEP CUSTOMERS FOR LIFE

by DAVID LEWIS Would you rather be walking the lot every day looking for new customers or sitting at your desk writing deals for previous loyal ones and the referrals they send your way? When you consider that repeat customers usually bring in higher grosses with less haggling over the price, it’s a no brainer, right? That’s one reason dealerships spend thousands of dollars on their customer relationship management tools - to manage their current and future customers.

But even the most sophisticated CRM system can’t turn a customer into a loyal, repeat customer. What is really needed is the good old fashioned human touch. David Lewis, president of David Lewis and Associates has extensive experience in training dealership personnel on how to retain customers. He explains why selling is a relationship-based occupation and why it takes more than the occasional email to let them know their business is appreciated. Building a strong customer relationship depends on what you do when your customer is not in the market for a vehicle. It’s that extra touch that will keep them coming back to you when they are ready to buy. see PAGE 8

THREE KEYS TO MOBILE SUCESS AT YOUR DEALERSHIP

INSPIRING YOUR EMPLOYEES TO REACH THEIR PEAK PERFORMANCE

10 KEYS TO DEVELOPING AND RETAINING YOUR TOP EMPLOYEES

Is “failure” really a bad thing? It is if you don’t learn from your mistakes and correct them. Mitch Cummins president of Opportunity Max encourages readers to look closely at their digital footprint and fix the areas that aren’t working.

One of the most important aspects of your job as leader of your organization is to pass on your knowledge and skill to those who report to you. Brian Tracy, international speaker, trainer and consultant offers tips to inspire your employees to reach their full potential.

Once you’ve expended the effort to hire the very best employees for your team, what are you doing to keep them?

Dave Anderson of Learn to Lead offers 10 tips to help you hold on to and develop the talent you have.

see PAGE 13

see PAGE 27

Mitch Cummins

CBT NEWS 5955 Shiloh Rd. East Alpharetta, GA 30005

President of Opportunity Max

Brian Tracy

see PAGE 16

Chairman and CEO of

Dave Anderson

Brian Tracy International

President of Learn to Lead

CAR BIZ TODAY M

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CAR BIZ TODAY MAGAZINE Email

newsroom@cbtnews.com Phone

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EDITORIAL STAFF President and Publisher

Jim Fitzpatrick

Vice President / COO

Letter from the Editor

Bridget Everett

Managing Editor

Carol White

Associate Editor

Russell Brown

Assistant Editors

Amy Ottman Beth Hogan

The retail automotive industry is changing at a fast and furious speed, and I am thrilled to be a part of it. Keeping up with the new technology and evolving market can be an impossible task without good, reliable sources. That’s where we come in.

Art Director

Yueying Zhang Art / Web Design

Both CBTNews.com and Car Biz Today Magazine have partnered with the top leaders in the industry to deliver useful content on various topics such as training, recruitment, retention, marketing, F&I and fixed ops. The content in Car Biz Today Magazine is targeted to the retail automotive audience…not the OEMs. Our goal is to provide you with information, news and interest stories that are important to you.

Steven Abernathy

Just as the retail auto industry is changing and growing, we are evolving also. Because feedback on our first two issues was overwhelmingly positive, we are going from a bi-monthly publication to a monthly magazine. This is a positive step forward and we are excited to be able to bring even more information your way.

Jane Howard jhoward@cbtnews.com 678.679.1268 404.452.9551

One of our new departments is Ask The Pros on page 32. We have a deep and wide pool of experts who are always willing to share their vast knowledge with our readers. Whether it’s a question about sales, service, F&I, marketing or management, our contributors are the go-to professionals for reliable, relevant advice for dealership personnel. Send us your questions!

And your photos! Car Biz Today wants to know what is happening at your dealership. Are you celebrating an anniversary this year? Are you planning a grand opening? Tell us about your charity events. We want to hear about all the good things happening at your store, and we want to spread the news with photos of your events.

Car Biz Today Magazine is here for you, the retail automotive dealer. Let me know how we can better serve you.

And don’t forget to give your feedback on the articles you see in this month’s issue. You can send your Letters to the Editor to cwhite@cbtnews.com. See you next month!

Have your best May ever!

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Special Thanks

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TO OUR ADVERTISERS

What’s New at CBT Bridget Everett Vice President / COO of beverett@cbtnews.com

CBTNEWS.COM

The last two months at CBT News and Car Biz Today Magazine have been very busy, and we are just getting started. CBT has seen tremendous growth over the last year, and with that growth came the need for a new managing editor. Carol White comes to CBT with a wealth of knowledge in writing and publishing. I am very excited to have Carol join Car Biz Today, so please join me in welcoming her to the CBT team.

Also with the growth, we have a need for larger studios. This month we will be moving into our new state-of-the-art studios in the Perimeter area of Atlanta, just across the street from AutoTrader.

We recently had the chance to cover a few exciting events across the country geared specifically for you, the dealer. We were in Denver for the Innovative Dealer Summit hosted by the Colorado Auto Dealers Association and our good friend Tim Jackson. The event proved to be educational and informative with some of the best trainers and speakers in the industry. It took place at the Sports Authority Field at Mile High, which made for a different kind of experience. Russell Brown, the CBT News team and I were able to bring you coverage right from the field at the home of MVP quarterback John Elway.

Russell and I caught up with the quarterback/car guy at the Denver Auto Show Preview Party. He owns several dealerships now and has been in the retail automotive business for more than two decades. He talked to us about the difference between leading a football team and running a dealership. You can find the interview at CBTNews.com on our archive page under “interviews.”

Immediately following the Summit and Denver Auto Show, we headed to New York City to cover the events leading up to the New York International Auto Show. First stop was the NADA/JD Power Automotive Forum. There we sat down with the industry’s top executives including Ford’s Joe Hinrichs and Mark Fields, JD Power’s John Humphrey, Audi President Scott Keogh, GM’s Mary Barra and NADA Chairman Forrest McConnell, to get their take on the current state of the auto business. Be sure to watch those interviews at CBTNews.com.

A highlight of our NYC trip for me was the 50th Anniversary party for the Ford Mustang. A 2015 Mustang was placed at the top of Empire State Building for the celebration. This event had special meaning for me as I grew up with multiple mustangs in my dad’s garage. He had three ‘65s and six ‘66s over the years. For years leading up to my sixteenth birthday, I pictured myself behind the wheel of one of them on my way to high school, with my twin sister in another one right behind me. That never happened because my dad is a very smart man.

CBT News will be bringing you coverage all year from events just like these, so stay tuned to CBT News.com. And if you see us out there while we are on the road, be sure to stop and say hello.

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Beginning Wednesday, May 21

INTRODUCING A NEW KIND

OF WEBINAR

No more long, boring Powerpoint webinar presentations!

CBT Live is an HD Video Streaming Webinar.

Now you can watch the presenter and ask your questions in real time via chat, email or twitter.

SUBSCRIBERS: Tune in every Wednesday at noon EST to watch, learn and participate in our new free livestream video webinar series

VENDORS: Present your product or service directly to new car dealers and their personal on an upcoming CBT livestream webinar

This up-close and personal experience not only benefits the participants, but also the companies hosting the live stream webinars. Upon completion of the webcast, the presenters will have a professionally produced recording of the show that they can use in their marketing efforts and on their websites.

CBT Live has broken the mold on the way webinars are conducted.

Visit CBTNews.com for information on upcoming livestream presentations.

Call us today for more information about having your company featured on an upcoming CBT livestream webinar broadcast 678.679.1268 MAY

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How to keep your

CUSTOMERS

For Life

In today’s business world, most of us understand that perception equals reality.

No matter what we think of ourselves, it is how others perceive us that will determine who we are in their minds.

This becomes extremely important if you are a salesperson desiring a lifetime business relationship with your customers.

Do they see you just as the person who sold them their last vehicle, or as the professional sales representative who takes care of all their transportation needs? Doing the first does not mean you can take the second for granted.

Keeping your customers for life starts with realizing that selling is a relationship-based occupation. You win loyal customers by earning their business time and time again. It is the attention you give them when they are not buying a car that determines whether or not they return to you when they need another vehicle.

Effective customer follow up today requires more than just an occasional card or call to let them know you’re there. It means helping alleviate some of the pressures of this busy world by taking on some of the tasks that occasionally require their time and attention. Doing things that are genuinely beneficial to the customer is a much better way to earn their loyalty than just staying in touch to let them know you are there.

Not all sold customers will become loyal for life no matter what you do. Some will move away and others just aren’t the kind of people who take such things that seriously. Your focus should be on the ones who are looking for an ongoing relationship with you and with the dealership. After the sale these individuals will use your service department and give you an open door to continue to earn their loyalty by providing them with a unique and unexpected treatment that they won’t get from another salesperson.

Being a liaison for your customers transportation needs is an effective way to stay in touch, without becoming the pesky salesperson who is just looking for referrals. By contacting your customer every five to six months to let them know that it is time for an oil change or other service, you become a worthwhile asset and are genuinely helping them with things that really matter.

ETo see more from David Lewis go to

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CBTNews.com

One way to do this is to contact your customer mention the referrals of family and friends they that will bring the benefits you were hoping for and remind them when their vehicle is due for will send your way when they are looking to buy when you got into this business. CBT service, and let them know that you would be a car. glad to set up the appointment for them. If you get voice mail just leave a message asking If this all sounds like a lot of work to you them to get back with you so you can schedule just think of the benefits you can expect in the service at a time that is most convenient for return. Keeping your customers for life is a them. process accomplished one person at a time. It starts with a simple “meet and greet” done in a The best way to manage this is to maintain a professional and respectful way, and is followed manual file or a CRM with all of your customers by a sales process designed to help the customer entered, and set up by date. This will let you accomplish their goals for coming to your know when their next service is due. You may dealership. Add to that great customer service also want to set up a separate file that is in that they are not likely to find elsewhere and you alphabetical order. This one you check daily are well on your way to building a base of loyal to see if any of your customers have service customers for life. appointments set for the next day. If so, you can call them and remind them so they won’t miss Ask yourself this question: Would I rather David Lewis the appointment. Also, ask if there is anything be walking the lot every day looking for new President of David Lewis & Associates you can do that would make their appointment customers or sitting at my desk writing deals for more convenient. previous loyal ones and the referrals they send Since 1986 David has been training me on a regular basis? dealers, general managers, sales You might offer to drive them back to work or managers, F&I managers and home or to the mall and pick them up when the That should be easy to answer, and when you salespeople on the “Art of Inspirational Selling.” His unique ideas have service is finished. If the service schedule would consider the fact that selling to loyal repeat helped thousands of dealerships take them away from work you could even offer customers usually brings in higher grosses with nationwide achieve their sales and to pick the car up and bring it in for them and less haggling over price, their value becomes management goals. David is the return it after the work was done. even more meaningful. author of “The secrets of Inspirational You can bet that this has never happened to After 35 years working in the retail automotive them before and you will catch them pleasantly industry I absolutely believe that you can have a off guard by doing so and establish yourself as fantastic career if you set your sites on the high someone who takes exceptional care of your ground and see your customers as the valued customers. How unique and inspiring would assets they really are. Buyers aren’t liars, they are that make you in their eyes? You worked hard the reason we can all make a good living in this to earn their business when you sold them the business. Treat them with that in mind and they car; now you are doing the same when they aren’t will reward you with their repeat business and all buying anything that would put any money that goes with a successful career in automotive directly in your pocket. sales.

When you consider that the average American will own 12 to 15 cars during their lifetime, and the average household today has two to three cars in their driveway or garage, earning someone’s business for life is well worth the effort. Not to

Selling,” “The Leadership Factor” and “Understanding Your Customer.” Visit his website at www.davidlewis.com

Take good care of your customers with things that will make their lives easier and they will remember you when they or someone they know is in need of a new vehicle. This is the way you keep customers for life and build a lasting career

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LEVERAGING AN Ryan Leslie

REPUTATION If you’ve been living under a rock for the last three years you may want to sit down before reading this article. The days of car shoppers driving down “dealer row” without conducting any research beforehand are over.

With the latest information on models and pricing more accessible than ever through mobile devices, new-car shoppers can decide what they want and how much they want to pay before even walking into a dealership. With an abundance of online reviews readily available, consumers can even decide to whom they award their business based on the feedback of other consumers.

When I say “to whom” I don’t mean which dealership, I mean which employee.

It’s a brave new world!

If dealers hope to attract today’s well-educated and data-equipped consumers, it’s imperative that they fully leverage their online reputations. Recent findings from Dataium reveal that:

“

Consumers are 90 percent more likely to visit a dealer website and 5.3 times more likely to convert to a lead after reading a positive review or seeing an above-average rating for that dealer online.

”

It’s clear that a strong online reputation is invaluable. Reading about other customers’ experiences helps shoppers feel more confident in their dealership choice.

Many dealers are finding that reviews have helped them place a greater emphasis on fostering a culture of customer service within the dealership. Some have even built extremely successful marketing strategies based entirely on leveraging their positive reviews to increase sales and drive more traffic to their service departments.

Whether the dealership has yet to establish a review collection process or is reevaluating its current process for collecting and leveraging written reviews, the following guidelines will ensure a successful strategy.

Build a strong foundation The first step is to build a collection of online reviews. Dealers should start by encouraging the sales team to ask customers to rate their experience on a credible third-party review site. This goes beyond a verbal request. A customer might have a great experience and have every intention of writing a review, but simply forget to write it after leaving the dealership. Without being intrusive, sales reps should gently remind customers with emails that contain links to a review site.

Dealers can also use their customer relationship management systems to connect with former customers to see if they would consider writing a review.

It’s important to ask customers to share their feedback, but this request should be tactful. Customers should never feel pressured by sales reps while at the dealership, nor should they be bombarded with emails after they leave. Even if the sales process proved to be the ideal experience, aggressive follow ups could ultimately lead to a negative rating or a customer’s refusal to write a review. Just like sales, building a strong foundation of reviews is somewhat of a numbers game. Ask every consumer for feedback, but don’t expect every consumer to participate.

A strong foundation, meaning lots of review content, is an important first step in a solid strategy, but it is far from a complete strategy. What good are a bunch of reviews if they aren’t being actively leveraged? Think like a collector, it’s time to display your collection so that others can enjoy and appreciate your reviews.

ETo see more from Ryan Leslie go to CBTNews.com

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Director of the Dealer Experience Team at DealerRater.com Ryan is a frequent contributor to industry forums and has presented at multiple industry conferences and dealer associations as a recognized thought leader on reputation management. His automotive career began in 2003 as a “lot monkey” hanging window labels and taking digital photographs for dealer specialties.

He is passionate about real reputation management for dealerships and is dedicated to helping the best dealers differentiate themselves and their employees from the rest. Visit the website at www.dealerrater.com.

Spread the word As more customers share their feedback and a dealer’s overall rating solidifies, it can be tempting for dealers to simply assume that prospects will find reviews on their own. To maximize an online reputation, dealers should leverage their overall rating in marketing collateral. Traditionally, dealer marketing has focused on available inventory, offering the lowest prices available or maintaining the region’s largest inventory. Your reputation, who you are as a business, is likely the untapped differentiator that can provide a leg up on the competition.

Consumers want to be assured that they won’t be cheated or pressured during the sales process, so they’ll take notice when reviews promise a good experience.

Along with incorporating reviews into traditional marketing collateral, dealers should promote their reputation within their own premises. While customers are waiting to speak to a sales rep, they can use their smartphones to research the competition. During this downtime, dealers can focus the customer’s attention by displaying their overall rating or snippets from positive reviews in the showroom and waiting room. These displays will catch customers’ attention and prompt them to look up other reviews. The more time customers spend reading about the positive experiences of other shoppers, the more confident they will be in their purchase or lease.

Don’t forget the service department While managing an online reputation mostly focuses on driving vehicle sales, the impact of reviews on service departments cannot be underestimated.

Dealers have much more competition in this arena. Although many dealers tend to focus on the same-make dealer across town, independent repair shops and do-it-yourself solutions are a much greater risk to fixed ops revenues. A dealer with a highly-rated service department can use its reputation to stand out from all other service options. The service department should implement the same protocol as the sales department by requesting reviews from customers in the service lane and promoting them in marketing collateral.

Internal motivation Along with attracting customers to drive sales and increase repair orders, online reviews can be used to motivate the dealership’s employees. Management should forward exceptional reviews to employees, so they have a tangible example of what business practices are working and which are not. Bad habits can then be remedied since the staff knows how to improve customer service. Reviews can also be used to show employees that their hard work is paying off. Nothing encourages sales reps more than positive customer feedback.

Dedication yields long-term success Managing an online reputation is not an overnight solution.

It will take time to build up positive reviews and properly leverage them to attract customers. Yet over time, the focus and commitment to a review-based culture will prove its value. In fact, some dealers who have successfully managed their reputations will have customers who travel long distances because they were so impressed by a consensus of online reviews. Car shoppers have already taken note of the importance of online reviews. It’s time for dealers to do the same. CBT

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News from Rising Dealers Network Launch is a Success During its 44th annual meeting and luncheon in New Orleans, AIADA Grassroots launched the Rising Dealers Network, a new program for young, up-and-coming dealers.

The network seeks to foster the next generation of international nameplate auto retail professionals who are committed to growing and innovating within the auto retail industry.

“Today’s young leaders are the key to our industry’s future. They have a unique understanding of the strategies and practices that will carry the auto retail industry into the coming years,” said AIADA President Cody Lusk. “We look forward to integrating their insight and experience into AIADA’s mission.”

During the annual meeting, many auto professionals took interest in the Rising Dealers Network and joined on the spot. These young professionals will create a national network dedicated to meeting the needs of AIADA’s younger members and future leaders. AIADA is also hosting a special reception for members of the network on May 7 in Washington, D.C., during its 8th Annual International Auto Industry Summit.

DEALERS WHO WANT MORE INFORMATION ON AIADA’S RISING DEALERS NETWORK CAN VISIT THE ASSOCIATION’S WEBSITE AT AIADA.ORG/RISINGDEALERS, CALL 1-800-GO-AIADA, OR FIND THE GROUP ON LINKEDIN.

Spring Means Dealer Visits

Several members of Congress have contacted AIADA indicating they are interested in meeting with international nameplate auto dealers in their districts. To help connect dealers with their representatives, AIADA hosts the Dealer Visit Program.

Spring is a great time for dealers to host a dealer visit and use their influence to voice their concerns and frustration with Washington, D.C. Dealers have the power to steer the debate in the right direction and focus the conversation on issues that are important to the auto retail industry.

Ryan Mayer, president of Tameron Honda Eastern Shore in Daphne, Ala., hosted U.S. Rep. Bradley Byrne at his store in April.

Ryan Mayer, president of Tameron Honda Eastern Shore in Daphne, Ala., hosted Rep. Bradley Byrne at his store in April. Mayer said the visit was a positive experience and allowed him to introduce Rep. Byrne to his staff and explain a few of the legislative issues impacting his dealership this spring.

“The congressman toured our facility where he was able to meet a number of our employees. We then discussed a wide range of issues pertaining to our business locally, nationally and globally as well,” reported Mayer. “He was very receptive to the talking points you forwarded to me and seemed genuinely interested in helping our business.”

AIADA URGES DEALERS TO NOT BE SILENT. LET WASHINGTON, D.C., HEAR YOUR VOICE BY HOSTING YOUR REPRESENTATIVE AT YOUR DEALERSHIP. TO LEARN MORE ABOUT THE PROGRAM, VISIT AIADA’S WEBSITE.

Understand the Issues This Spring Finally, AIADA is working to help international nameplate dealers understand the issues that uniquely impact them. AIADA was founded in 1970 by a group of Volkswagen dealers and has since been dedicated to educating, informing and advocating about the benefits international nameplate dealers and their manufacturers bring to the U.S. Trade has long been a primary focus of AIADA. This spring, AIADA has concentrated its efforts on driving support for pending free-trade agreements with Pacific Rim nations as well as Europe by urging Congress to implement Trade Promotion Authority (TPA). TPA is necessary to allow a straight up-or-down vote on pending trade agreements in Congress.

As part of these agreements, AIADA is also urging the removal of 25 percent tariff on imported trucks. The tariff was implemented in 1963 in retaliation after Europe levied a tax on U.S. frozen chicken. The target at the time was Volkswagen, which imported a small pickup truck to the U.S. However, more than 40 years have passed, and today the tax is 19 times higher than the average U.S. tariff on manufactured products and 10 times higher than the 2.5 percent tariff on cars.

Tax policy also serves a pivotal role in AIADA’s agenda, whether fighting for the permanent repeal of the Death Tax, supporting the LIFO accounting method, advocating for the Like-Kind Exchange tax transaction or maintaining the Advertising Cost tax deductibility. Each of these tax issues are currently on the table and part of the House Ways and Means Tax Reform package. Adding their voice to this debate on Capitol Hill will help dealers ensure that their positions are heard.

Finally, this spring dealers should be aware of pending federal regulations coming down the pipeline. From 2009 to 2012, more than 13,000 final rules were published in the Federal Register. In comparison, fewer than 12,400 were finalized from 2005 to 2008. These numbers represent an avalanche of regulations, many of which stand to impact dealers.

During the current period of economic uncertainty, regulatory overreach by government entities has put an unnecessary burden on American businesses.

One of these entities—the Consumer Financial Protection Bureau (CFPB)—has continued to pursue dealer lending reserves. Although dealers fought for and won a “carve-out” in 2010’s financial reform legislation, the bureau continues to implement a policy aimed at restricting dealership lending practices.

AIADA continues to monitor these and other developments to ensure international nameplate dealers are represented in the process.

VISIT AIADA.ORG FOR MORE ON WHAT AIADA IS DOING TO REPRESENT INTERNATIONAL NAMEPLATE DEALERS IN OUR NATION’S CAPITAL AND TO FIND OUT HOW YOU CAN GET INVOLVED.

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Three Keys for

Mobile Success

AT YOUR

Dealership

Vice President of Mobile and Direct Sales for Black Book

M

obile technology is changing how cars are purchased – not just for the consumer, but also for the dealerships. While consumers use tablets and smartphones to find inventory, research competitive prices and even select the car they want, dealers are turning to this technology to research wholesale inventory, evaluate pricing data and research history reports for vehicle conditions.

In order to keep up with the continued traffic of consumers, dealers today are relying on mobile technology to help make quicker decisions on bringing in the right car at the right price to refill inventory on the lot.

Mobile technology works for consumers because it equips them with the knowledge they need in order to make the right decision. Car buyers, however, have time on their side. In most cases, the rhythm of research and purchase is up to their calendar.

Dealers, unfortunately, don’t have that luxury. Instead, they must make split-second decisions at an online or physical auction, competing against a multitude of other dealers. For this process to be effective, a mobile app must be ultra-efficient and timely, it must be easy to use with an interface that eliminates confusion and it must connect the entire automotive decision channel for a dealer’s business to maximize profits.

Efficient and Timely Time is particularly important when it comes to dealers and mobile apps. “The mobile app I use must be a one-stop shop where I can see everything in a single source,” said Josh Lukasik of Georgiabased Don Jackson Automotive. “Speed of the app is also critical, and sometimes it all comes down to the type of Internet service you have.”

This is where frustrations and challenges mount for dealers, who appreciate the mobile aspect of technology but still find challenges in its deployment.

Lukasik isn’t alone in his assessment, given the unstable nature of Internet connectivity and WI-FI reliability. This is particularly noticeable at physical auctions where dealers lose out on the right car at the right price because of slow Internet connections.

After all, what’s the point of having a sleek-looking mobile app with all the technological bells and whistles if a slow Internet connection limits your chance of squeezing the most profit out of a car?

Consumers and dealers are ultimately leveraging mobile technology for roughly the same activity.

They both have a desire to get the right car at the right price. The main difference, of course, is consumers aren’t trying to rely on their mobile app to make a split-second decision on the fly with hundreds of other car shoppers all competing for the same car.

Jim Bailey, general manager of Jefferson Motor Company, uses mobile technology mainly for appraising cars, car auctions, trade-ins and market reports. Internet connectivity is one area where its impact on app performance often goes under the radar. “There are many times when I’m not paying

ETo see more from Mike Williams go to CBTNews.com

attention to connectivity issues,” he said. “The tricky part is that some areas of the dealership have better connectivity than others, which can delay the process depending on where you are when you need to make decisions.”

Mike Williams Prior to joining Black Book in 2012, Mike was on the senior management team at the largest auction in the U.S. He has been credited with growing the online wholesale market through innovative products, processes & venues. Partnership projects with most factory & lease leaders in the wholesale industry were a hallmark of his time at Manheim, taking online sales at the PA location from a couple hundred units a year at his arrival, to over 85 thousand at his departure, when he left to pursue new creative endeavors.

Visit Black Book at www. blackbookauto.com.

Mobile technology is the critical platform that allows for this interconnectivity across the automotive decision channel.

The simplicity of the mobile app itself is another potential sticking point for dealers. While a growing number of dealer professionals are comfortable with the current smartphone movement, a large percentage of dealers rely on legacy tools and even printed material when evaluating the right vehicles for inventory.

One common denominator among the many automotive professionals that use mobile apps is that there is a lot of advanced technology at their fingertips. In many cases, the tools and resources have given these professionals the ability to streamline their overall automotive business process. However, in spite of all the technological advancement, if the app and usage can’t match the speed of business at which today’s car operations work, it won’t have an impact on the ability to drive higher profits.

While their expertise provides these individuals with the ability to profit off cars, their lack of technological know-how greatly reduces their advantage over the competition. What’s needed is a technology platform that enables old-school knowledge with today’s advanced technology solutions.

Today’s car business is as cutthroat as ever, and gaining a competitive edge is what everyone’s looking for. This competitive edge will be found in the timing of information access, the ease-of-use of the tools and the ability to communicate for a collective decision that maximizes profit on each vehicle unit. CBT

Easy to Use

Ultimately, the right mobile app must come with a simple user design that allows even the most timehonored industry professionals to make his or her decision on the go.

Interconnectivity Making a buying decision falls on more than just one individual. Today’s automotive industry is highly connected across a number of different subsegments that include lenders, used and new dealers, remarketers and other data purveyors. A sales cycle that requires speed and accuracy of collateral data has forced each different subsegment to be highly dependent on one another in order to achieve the most profitable results.

In many cases, dealers within the auction lanes must be in constant communication with decision makers back at the dealership, with all having access to the same data. This allows them to collectively make a split-second decision on whether or not to add a vehicle to the inventory.

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Rethinking F&I Success Measurement

Rich Moore Director of Sales Training for Protective Asset Protection Rich first ventured into the auto industry in 1985 in sales.

Since that time he has held sales and sales management roles in different industries.

After several successful years on the sales side he moved into the training arena and has been both trainer and training management over the years.

Rich joined Protective in 2011.

Visit the website at www. protectiveassetprotection.com

Most dealers are well aware of the F&I department’s impact on their bottom-line. Chances are, if you ask most dealers, general managers and F&I managers how they measure F&I success, they will cite gross profit per vehicle and service contract sales acceptance as their preferred metrics.

While these are important metrics for evaluating F&I performance, there are some additional measurements that dealers should consider. In particular, there are three performance indicators that will enhance a dealership’s ability to assess the strengths and shortcomings of the F&I processes and personnel. With these additional metrics, dealers and their respective managers can better understand what types of deals are making their way to the F&I office, how effectively F&I products are being presented and how well customers are receiving F&I products.

Here are three performance metrics to consider adding to monthly reports.

This metric can provide greater insight into the inner workings of the dealer’s F&I process. By consistently tracking F&I products per delivery, a dealer is able to better evaluate how well the F&I sales process is functioning. A higher products-per-delivery likely means the F&I staff are having success presenting the value of the full suite of products. Conversely, a continual decline in this metric often indicates the need for enhancements in the F&I presentation process or additional training to improve F&I managers’ sales skills.

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F&I Product Sales by Salesperson

In most dealerships, a clear division of duties exists between the salesperson and the F&I manager. However, a salesperson’s actions on the dealership lot, telephone and showroom floor play an essential role in the success of the dealership’s financing and protection product sales.

How the salesperson manages the interaction between the customer and the F&I professional has a major impact on the ability to finance the purchase as well as sell protection products, such as vehicle service contracts. By tracking the sales acceptance rate of F&I products by salesperson, a dealership has a better opportunity to assess the sales team’s understanding of the F&I process and provide training for salespeople when necessary.

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Customer Satisfaction

Customer satisfaction is something every successful dealer evaluates on a regular basis. Often with all the work that goes into tracking and analyzing customer satisfaction, there is one important department in the dealership that is overlooked. While dealerships are careful to ensure they maintain positive customer service scores for their sales staff and service department, the F&I department is often forgotten.

By placing greater emphasis on the F&I process within customer service surveys and regularly monitoring the scores, dealers can help ensure that their F&I process and personnel are providing a customer experience that strongly supports the sale of protection products.

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F&I Products per Delivery

Measuring F&I products sold per retail delivery (that is, F&I products sold divided by retail deliveries) takes the analysis of the F&I process a step further than the more common measurement of profit per retail delivery. More dealers should track and monitor this metric to better understand the needs of their customers.

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These three metrics are not meant to replace existing reports that many dealers use to evaluate the success of their F&I operation. Instead, the addition of these measurements will provide greater insight into the processes that drive the successes of the F&I department. By expanding the way dealerships track and evaluate their F&I processes, the opportunity for a stronger bottom line only grows. CBT

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10 Keys

to Retaining Talent Dave Anderson President of Dave Anderson’s LearnToLead

Dave is president of Dave Anderson’s Learn To Lead, an international sales and leadership training and consulting company. Prior to beginning Learn To Lead, Dave enjoyed an extensive and successful career in the automotive retail industry. He has presented more than 1,000 workshops and speeches over the past decade on sales and leadership development and has spoken in 15 countries. Visit his website at www.learntolead.com

At a Fortune business conference in 2003 a moderator asked Indra Nooyi, now Chairperson and CEO of PepsiCo, “As a leader, what keeps you awake at night?”

Without a second’s pause Nooyi replied, “Retaining my talent.”

Any leader wishing to measurably grow their organization would be wise to list the same concern at the top of their list. I’ve compiled a list of principles to help you retain talent. There’s good news and bad news. The good news is that these are principles, and if you follow them you will succeed in your employee retention endeavor.

The bad news is that these are principles, and if you ignore them your organization will suffer immediate consequences.

HIRE RIGHT

If you don’t hire people with the character and competence to achieve your objectives, they’ll most likely fail and leave or they’ll fail and you’ll fire them.

Either way, you will incur an incredible toll in wasted time and resources, lower morale, broken momentum, squandered opportunities, lost personal credibility and a diminished customer experience.

LEAD BY EXAMPLE

Good people won’t let their potential rot on the vine as they suffer under selfish, corrupt or incompetent leadership. If they do hang around to endure your tenure at amateur hour they may comply with you but won’t commit to you.

According to a Gallup poll the number-one reason people leave an organization is to escape a lousy manager. This is precisely why my company will not train a sales team before we’ve trained their managers. We believe it’s foolish for dealerships to take live eggs, stick them under dead chickens and then complain because they don’t hatch.

DEVELOP THE TALENT IN YOUR CHARGE

If you have good people and you don’t train, coach and mentor them, you don’t deserve them. In fact, you deserve to lose them, and in time, you will.

And while they’re with you, you don’t deserve great results from them. You’re expecting a prize without first paying the price to develop the human capital in your charge. As a leader you have an obligation to take the human capital with which you’ve been entrusted and make it better than it is today.

SET CLEAR EXPECTATIONS

Good people want to know what success looks like -- what they need to learn, what they’re supposed to do, where they’re supposed to be and by when.

Keeping them guessing demotivates them and causes them to work longer and harder, but without the laser-like focus necessary to excel. Create the clarity necessary to focus and motivate your team and you’re far more likely to retain them.

OFFER FAST, FREQUENT, HONEST FEEDBACK

Once expectations are set, good performers want to know how they’re doing. If they’re great, tell them. And if they’re failing, tell them that too and then show them how to turn things around. Feedback is the breakfast of champions and the majority of workers say they don’t get enough of it. And when they do get it, it’s too late to make much difference. Eliminating gray areas with fast, frequent, honest feedback builds performance and helps retain your talent.

HOLD THEM ACCOUNTABLE FOR RESULTS

Don’t fall for the politically correct, “hug and burp them” philosophy that people want to be coddled and resent accountability. Solid players only resent accountability when you’ve never set clear expectations in the first place. Human beings need the discomfort of accountability to focus, engage and grow to their potential. If you truly care about your people you’ll hold them to a high enough standard to bring out their best.

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INSPIRE WITH MISSION AND VISION

Good people don’t just want a job, they want a cause. They yearn to be part of something special, and to make a difference. Think about this: people quit jobs, but they will die for a cause that engages and inspires them. That being said, it’s the leader’s job to create and cast a unifying mission and vision that brings a team together and lends more meaning to the workplace.

Vision-driven organizations attract and retain winners because the winners like to be where the action is -- where something special and bigger than them is taking place. On the other hand, visionless organizations are infamous for having a majority of their team members bring their hands to work while they check their heads and hearts at the door. What a shame, because you’re paying for all of it. Engage them with a meaningful purpose and direction and you are far more likely to retain them.

EMPOWER THEM

If your best people don’t feel challenged, trusted or that they’re growing into new responsibilities, you’re likely to lose them. It’s just a matter of time.

Empowering them with broadened latitude and discretion in order to stretch their abilities and make them more valuable are essential retention tools. By finding ways to make your people less dependent on you, you’ll elevate their morale and growth and find yourself more effective as you do not have to personally make every decision, solve all the problems and have every idea. One of the best leadership lessons of all time is that you can’t do it alone. This principle also helps you retain talent as they are empowered and unleashed to contribute to the dealership at a higher level.

ENGAGE THEM

High performers like to feel let in on things, and want an opportunity to contribute their ideas to enhance the organization’s welfare. While vision, mission, values and performance expectations are the top leader’s to define, engaging the team works retention magic. Ask for their ideas on how to reach the vision, become more effective in their roles and better serve customers.

People support what they help create and they want to weigh in before they buy in. Adopting a philosophy that “none of us is smarter than all of us” and making clear that any idea is a good idea until you find the best idea communicates to your team that you understand that leadership is a dialogue not a monologue. Engaging them in this manner ensures that you get far better insight and ideas than had you tried to figure everything out by yourself and then dictate a plan to which no one commits.

REWARD THEM FAIRLY

Three key retention tools have nothing to do with money, scheduling or benefits. First, give them the opportunity to become part of something special.

Second, give them the opportunity to become more as a human being. And third, give them the opportunity to make a difference. The first nine tips address these vital needs. But in addition to these “heart” issues, you must also be fair with the “head” issues. You must pay for performance.

If you pencil-whip people every time your withering ego gets bent a bit because you think they’re making too much money, you will lose them, and rightfully so. At LearnToLead we have a small staff and are extremely picky about whom we hire. But we pay very well and absorb 100 percent of benefit costs for our associates including health, dental, vision, life, AD&D, long-term disability and pension. I understand this isn’t for everyone, but my philosophy is that I want my teammates to be totally focused on their work and not worried about what is and isn’t covered for them and their families.

It works for us! We’re a 15 year-old-company that grew sales and net profit more than 50 percent higher than last year, and have attracted talent from far larger, deep-pocketed organizations. CBT

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Today’s Lesson from

ABRAHAM WALD

THE ‘HOLE’ STORY During World War II, the Allies used these big, lumbering bombers to pound the bad guys. These planes carried plenty of firepower, but it’s not exactly safe to fly something described as “lumbering.” They were taking a lot of hits and it was no secret that flying them was dangerous.

A team of super smart scientists and engineers was assembled to study the planes and figure out how to fortify them with armor. Armor was really expensive, however, and adding too much made the planes too heavy. Efficiency was vitally important so they would examine the shotup planes when they got back from missions and map out spots that attracted the most enemy firepower.

As would be imagine, the planes that made it home safely were heavily shot in the wings, nose and tail. That meant these areas needed armor reinforcements, right? No, No, No! Wrong!

Luckily, the team included a genius mathematician named Abraham Wald. He had the vision to point out that the planes needed to be reinforced in the areas of returned planes that didn’t have any holes.

Whoa! Why is that?

Here’s why: The planes that got shot in these “clean” zones never even made it home to be examined. A bomber that took shots to the tail survived the mission and made it back to the base to be evaluated and scrutinized. A pilot that got shot through the cockpit didn’t come home and was thus excluded from their inspections and data.

Before Abraham Wald intervened, the team was making a classic but detrimental mistake. They quickly fell in love with some obvious key metrics and then focused their attention and energy on improving those metrics only.

So what can a dealership take away from this lesson? As was the case of the World War II bomber plane study, a dealership’s efforts will be wasted if it doesn’t first identify the right things to optimize. The famous American inventor, Charles Kettering, said it best, “A problem well-stated is a problem half-solved.”

If a dealership is taking advantage of a call-tracking system, that’s a step in the right direction. But is it examining the right metrics -- the metrics that will eventually lead to increased sales? Just like Abraham Wald realized the right way to examine and improve a bomber plane, it’s time for dealerships to examine the right metrics and avoid the inconsequential ones.

USELESS METRIC 1: NUMBER OF INBOUND CALLS When a prospect calls a dealership, what is the ultimate goal?

Don’t overthink it. The goal is to set an appointment. It’s that simple. Appointments get people in the door and driving cars off the lot.

Many dealerships, even those that consider themselves top performers, instead use their call tracking as way to merely count inbound calls.

The desired outcome of the phone call should be to set up an appointment. Therefore, it would be necessary to refocus on requesting the appointment on every single inbound call. Every single one. This should be considered the homerun of the phone culture. Plaster the walls with reminders to request the appointment. When the phone rings, remember that requesting the appointment helps sell cars.

When the appointment request is the basis for a successful inbound call, the number of appointments will soar.

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USELESS METRIC 2: TIME TO ANSWER Most dealerships do a great job of ensuring that every single call is picked up quickly by a receptionist. That’s awesome, but what happens next? Once that call gets forwarded on, brace yourself for an uncomfortable ride.

For example, an East Coast car dealership bragged about a 98-percent answer rate and an average pick-up time that was under six seconds.

That seems great until we take a closer look at metrics that really matter.

First, what percentage of callers actually connected to someone who could help them? And second, how long did it take for those true connections to happen?

The results were startling. Only 57 percent of the dealership’s calls were ultimately connected with someone who could help the caller. The other 40-plus percent gave up on hold after a few minutes, were forwarded to voicemail boxes that were too full, declined to leave a message or left voicemails that begged for a call back.

And what was the average true connection time on those 57 percent?

Cue the Jeopardy song -- close to 45 seconds. YIKES. Stop identifying the time it takes a receptionist to pick up. It means nothing. Instead, focus on true connection rates and times. Did the call actually reach someone who can help and how long did that take?

This is the lowest hanging fruit at a dealership right now. Improving these metrics will instantly mean more sales-related conversations that lead to appointments.

USELESS METRIC 3: NUMBER OF OUTBOUND CALLS PLACED It’s 9 a.m. on Tuesday and Salesman Steve announces to his manager, “I’ve placed my 25 outbound calls today Boss! Not bad, huh?” Not bad, but not necessarily good. And here’s why: Nearly 90 percent of outbound calls from a dealership don’t reach the intended target.

Chances are Salesman Steve only had two to three actual conversations this morning. Most of his calls went nowhere. The process of simply requiring a set amount of calls ignores the fact that the goal of every outbound call should be to reach the right person.

A large dealership in North Carolina, for example, was able to increase the number of its connected outbound calls by 20 percent, without adding a single employee or purchasing costly training.

How did it do it? Management shifted the metric of success from number of outbound calls dialed to number of calls actually connected.

Magically, the sales agents started getting smart about when to place calls. They got better at getting the right person on the phone. The improvements in a true outbound-connection rate lead to more sales conversations, appointments booked and cars sold.

It’s easy to get caught up in the wrong metrics. “It’s the way we’ve always done it,” is a common argument for keeping things status quo on the phone front. But just like the bombers in Abraham Wald’s study, a dealership’s bottom line could be at risk of attack if the correct metrics are not recognized and reinforced. Identifying the metrics that matter most will help lead to improved sales, customer satisfaction and employee satisfaction. CBT

Mike Haeg

Director of Business Development for Century Interactive As director of business development, Mike is dedicated to helping dealerships “Own the Phone.” He is passionate about fusing technology, people and process to improve the bottom line. Outside the office, don’t be surprised to see Mike at a local live music venue, jotting down his crazy ideas or knee deep in a good book. Visit the website at centuryinteractive.com

The Iowa Automobile Dealers Association elected its 2014 officers April 11 at its annual meeting.

They are, from left, Immediate Past Chairman Jeff Finch of Wes Finch Auto Plaza; Secretary Brad Deery of Deery Brothers of West Burlington; Chairman Dave Edwards of Edwards Chevrolet Cadillac; Vice Chairman Jeff Weber of Anderson-Weber Toyota Scion Lincoln; and Treasurer George Grask of Cedar Rapids Truck Center. The new officers will each serve a one-year term. Finch will serve on the executive committee for an additional year.

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VENDOR PROFILE

in

Autobytel

HIGH GEAR

INNOVATOR OF THE AUTOMOTIVE INTERNET INDUSTRY, AUTOBYTEL REFLECTS

ON ITS RICH HISTORY…AND STEPS ON THE GAS FOR THE ROAD AHEAD

But even with a host of accomplishments, Autobytel was not immune to setbacks, including the fallout of the dot-com crash, a Securities and Exchange Commission refiling as Enron was on the front page of virtually every major news outlet and a recession that took a particularly hard toll on the U.S. economy and the automotive industry.

In 1995, former Southern California car dealer and entrepreneur, Pete Ellis, was busy fleshing out ways to revolutionize how cars were bought and sold here in the U.S. His idea centered on selling vehicles to QVC’s popular telephone-in audience (hence the company’s original name, Auto-By-Tel), but things quickly changed when Ellis learned of a newfangled technology known as the “Internet.”

Autobytel.com soon launched, forming the foundation for every automotive website that exists today, and has racked up a series of significant milestones along the way: Pioneer of the automotive Internet The first online company to advertise during the Super Bowl in 1997 and again in 1998, which changed the trajectory of the company The seventh most-recognized e-commerce brand in the world A permanent member of the Smithsonian’s National Museum of American History The list goes on.

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In 2008, Jeff Coats, who was serving on the board of directors, was asked to take the role of chief executive officer. Stepping into the position after a series of executives who all had very different visions for the company, Coats quickly recognized that the quality of the company’s core business (new- and used-car leads) needed to be improved and sourcing needed to be changed.

“The previous management team had focused more on trying to build an advertising-driven consumer website called ‘MyRide,’ and the core leads business really didn’t get much incremental investment or attention,” said Coats.

At the time -- just prior to the recession when car sales were near alltime highs with an average annual Seasonally Adjusted Annual Rate of 17 million -- Autobytel was aggregating a majority of its leads from third parties who wanted to take advantage of the ripe business opportunities during the prerecession heyday. Some of these lead generators were more focused on lead volume, instead of lead quality, and car dealers were becoming disenchanted.

Coats’ first order of business was to repair the company’s primary revenue stream. Instead of being reliant upon the volume and quality of leads delivered by outside providers, he refocused the company’s efforts on its long-standing ability to generate its own internal high-quality leads through targeted search engine marketing campaigns, and an overhaul of the company’s popular flagship consumer website, Autobytel.com. He also decided to sunset MyRide.com and purchase an SEM company named CyberVentures.

“In-market car buyers demand rich content and the tools and services that enable them to buy cars intelligently and easily,” said Coats. “We focused our efforts on retooling our website to help them do just that. When you provide an excellent online consumer experience, everyone benefits.”

Under Coats’ direction, the company’s efforts have paid off. From 2011 to 2013, Autobytel leads resulted in an incredible 1.25 million new-car retail sales, representing 3.62 percent of all new-car retail sales nationally, with conversion rates of its internally-generated leads closing at nearly three times the industry average. The company’s YouTube channel generated more than 25 million views at the end of last year, and at that same time, Autobytel’s stock price was trading at five-year highs.

2013 brought many other milestones for the company that forged online car buying and selling, including acquisitions of, and investments in, products and services that enable dealers to sell more cars.

JEFF COATS

CEO OF AUTOBYTELL

In September, the company announced it had invested in AutoWeb, a unique pay-per-click advertising marketplace that expands dealer and manufacturer reach among inmarket car buyers. During that same month, it acquired Advanced Mobile, now known as Autobytel Mobile, to offer the industry a full suite of mobile products.

In November, it invested in SaleMove to enhance communications between dealers and car buyers, and earlier this year, it announced it had acquired competitor AutoUSA an AutoNation division, expanding Autobytel’s dealer network to more than 5,000 while adding key sales and management personnel to its employee roster in the process.

Phil DuPree, former president of AutoUSA, joined Autobytel as executive vice president of Dealer Services, with a 16-year history that includes serving as president of AutoUSA and vice president of AutoNation’s e-commerce division.

Scott Pechstein, vice president of sales for Autobytel, says the company’s relationship with R.L. Polk, means Autobytel offers dealers and the industry sales insights.

R.L. Polk purchased CarFax in 1999 for $1.4 billion which expanded their data capabilities and has been an important part of Autobytel’s recent growth. Autobytel sends 100 percent of its Internet leads to Polk each month for registration match.

“There is tremendous value in being able to match leads with actual state vehicle registrations,” said Pechstein.

“We can show dealers how many Autobytel leads converted to a sale and if the sale was lost to another dealer. They can also see if the consumer bought a used car from a new-car lead and vice versa.”

“Beyond offering some of the highest quality leads in the business, we can provide dealers with a whole suite of products and services to increase online sales,” said DuPree. “We’re particularly excited about our mobile products, including text leads, which we see as a prime growth opportunity for dealers, and TextShield which helps dealers comply with texting regulations. Our online customer engagement platform called SaleMove will change the online automotive landscape.”

Dupree says SaleMove enables dealers to communicate with car buyers by providing virtual tours of an automotive website by bringing the showroom experience to the Internet and allowing for text, audio or video one-on-one interaction.

“The average number of dealership visits is down, so it is important for us to give our dealer network the ability to communicate and engage with car buyers in the customer’s preferred contact method, wherever they may be – at home, at work or on their smartphones,” said DuPree. “We’re focused on opening up new channels of communication between dealers and consumers, and that’s been helpful in driving sales for our dealer body.”

And Pechstein says Autobytel’s relationship with Polk helped launch the company’s Dealer Insights Series – video training presentations introduced last year that highlight Internet customer motivations and best practices when it comes to improving conversion rates and guiding people to the right vehicles.

“When you boil it down, it’s really about moving people in the right direction, the right way, to the right cars. And there are certain steps you can take based on actual lead-to-sales data, including things you might not have thought about, to improve how you do that,” said Pechstein.

Prior to joining Autobytel in 2000, Pechstein worked in sales for Tuttle-Click Automotive Group, and watched Autobytel innovate years ahead of its competitors. “At the time, Autobytel was the driving force in Internet leads but the focus shifted and lead quality suffered. But we’re back and the quality of our core leads products has never been better. In fact, we delivered over 5.1 million leads in 2013.”

As nearly 20-year innovators of the automotive Internet, Autobytel is leading the way for the road ahead. Coats points to the successes the company achieved early on as the driving force behind where the company is headed.

“We were founded by a former car dealer and throughout our entire history, car dealers have always been our DNA,” he said. “We’re constantly improving and expanding to deliver products that can help dealers improve and expand their sales. It’s really as simple as helping them sell more cars.” CBT

PHIL DUPREE

EXECUTIVE VICE PRESIDENT OF DEALER SERVICES

PHOTO BY MINDY SCHAUER MAY

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Aptitude Vs. Attitude YOUR CLOSING ATTITUDE IS MORE IMPORTANT THAN YOUR CLOSING SKILLS for the order. Shy away from closing enough times and you won’t put bread on your family’s table.

What happens when you ask for the order and get it? You win! If you ask for the order and you don’t get it, you don’t lose. You break even! That’s right, you break even.

You cannot lose by doing your job. Your job is to ask people to exchange money for your automobiles. When you do your job correctly you have every right to ask the prospect to buy from you.

Let me provide an example of using a “closing attitude” combined with a very specific closing question. I use this technique when I have established trust in the relationship and when I have identified the buyer’s needs. The key is that I am certain I can exceed the needs or criteria he or she has voiced to me. This consists of a statement followed by a closing question. The statement communicates my attitude and the question is used as a closing technique. It goes like this: “Mr. Buyer, I’m confident we can meet your needs.” (Statement) “How can I transfer that confidence to you?” (Question)

Several weeks ago, a colleague and I were discussing different closing techniques in Zig Ziglar’s “Secrets of Closing the Sale,” and I was curious about which, of the more than 50 techniques highlighted in the CD set, was his favorite.

To my surprise, he informed me that he didn’t have a favorite close. If my colleague, who is a highly successful sales professional, didn’t have a favorite close, then he certainly had something “secret” he used to put him at the top of his game.

“Zig didn’t teach me a closing technique as much as he taught me a closing attitude,” he said. “The attitude helps me close more sales than the techniques do.”

A closing attitude. Now, that’s powerful!

The statement represents your confidence, your belief and your attitude. It conveys to the customer that you can solve his or her issue. The question allows the buyer to voice what needs to happen for a sale to take place. The purpose of this technique is to have the buyer tell you what criteria are required for a successful sale.

The words “confident” and “transfer” are two very powerful words in this technique. Of course, you need to revise this to best fit your selling situation.

You may want to modify by saying: “Based on what we’ve discussed, I am confident we can find a unit that meets your desires. How do I transfer that confidence to you?”

Or “Based on what you’ve said, I am confident we can find the right fit for you.

What’s the best way to transfer that confidence to you?”

Have you thought about your closing attitude lately? Do you have a closing attitude? And, if you do, what type of attitude is it?

It takes courage to ask this question, especially at first. However, if you really are confident you have the best solution, it becomes a lot easier.

The way you feel about closing is often more important than the technique you use to get to the close. You probably have a number of strong closes.

However, if you lack a strong closing attitude, you will never get to use those closing techniques.

When you ask buyers to purchase from you today, they want to know that you believe their decision is a solid one. This is where your positive closing attitude will help you. Exhibit confidence during this stage of the process and you will be able to expect sales success, not hope for sales success.

You may have a good attitude about your dealership, about your service and about the manufacturer. However, what is your attitude about closing? Selling is what we do “with” our prospect, not something we do “to” our prospect.

My colleague was absolutely correct. A positive closing attitude will close more sales than the techniques! CBT

Closing should be the logical conclusion to your selling activities. It should not be the stage of the sales process that is adversarial between you and your customer. The buyer should be as eager for this stage as the seller is.

Think for a minute. Why are you asking your customer to buy a car from you? The logical answer is so you can feed your family, not your ego. Do you have the right attitude toward closing? Are you excited about closing, or are you hesitant? If you don’t want to bruise your ego, you may be hesitant to ask

Bryan Flanagan Founder of Flanagan Training Group

Bryan began his career as a delivery boy with IBM, which led to a 14-year career with the company in sales, people management and sales instructor. In 1984, Bryan joined the Zig Ziglar Corp. serving as director of training before founding Flanagan Training.

He can be reached at bryan@flanagantraining.com

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AS INDUSTRY TRENDS SHIFT

IS YOUR CRM CAPABLE OF DELIVERING THE BEST RESULTS?

The economy is springing back from the Great Recession, and more and more consumers are returning to dealership showrooms and service drives. As they enter the dealership this time around, they’re armed with more information and expecting more from every touch point with the dealership.

Using the right customer relationship management tool in your dealership can help you deliver a memorable, pleasing consumer experience every time and turn a one-time visitor into a repeat customer.

But, how do you know if your CRM solution is the right one?

The right CRM solution is a combination of an effective tool to manage interactions, a solid process, and people committed to the process and tool.

Try answering these three questions when thinking about your CRM solution:

IS IT FOCUSED ON THE CONSUMER EXPERIENCE? A complete CRM solution will do more than just help your dealership manage leads. It should be built to help your dealership connect with and manage the customer experience for the entire lifecycle of the vehicle, from the sale to each service visit. Plus, the solution should allow your employees to evaluate the customer’s vehicle information for trade-in opportunities, as well as improve staff communication so that customer needs and expectations can be better met.

Ed Pontis Director of Product Planning at Reynolds and Reynolds Ed and his team are responsible for the product direction of all Reynolds apostrophy customer relationship management and variable operations solutions.

Prior to joining Reynolds and Reynolds, Ed was a director with a large international consulting firm. There, he was part of the CRM practice focused on the consumer product industry. Ed brought with him some of the leading practices from these other consumer segments to Reynolds’ CRM solutions. Visit the website at www.reyrey.com

The best CRM solution becomes your partner in helping your team members do what they need to do – provide a great customer experience and, of course, sell vehicles. It’s a simple, easy-to-use solution that helps you meet consumer expectations and your business needs. You’ll do less while the CRM solution does more, which leads to the next question.

IS IT EASY TO USE? Imagine if every employee could personalize his or her screens in your CRM solution.

With the right CRM solution, they can do just that.

Your staff would have the power to decide how they want to search for a customer, view their calendar, track the number of walk-ins for the month, and more. Better yet, they can personalize their screens and figure out how to use the solution to their benefit within minutes. Having that level of flexibility and ease of use helps improve efficiency and effectiveness across your staff, by allowing each individual user to view the solution in the way most comfortable – and effective – for the person.

Let’s say your sales manager loves to view monthly vehicle sales in graph form, but your general manager prefers to see the same sales numbers in list form. The right CRM tool will be flexible enough to show a graph to your sales manager and a list to your GM. It doesn’t have to be one way for all users – it’s one way for one user. It’s a smarter, more efficient way for each employee to work.

IS IT ACCESSIBLE? The accessibility of your CRM solution is more important than ever. The ability to use the solution anywhere across any device with access to the Internet – PC, tablet or smartphone – and sync it with your data management system allows for a more efficient, productive experience for both employees and consumers. The most accessible CRM solutions allow you to enter information directly into your customer database, so you can store and retain customer information and eliminate rekeying it later.

Be careful, though. Some providers only offer app-based CRM solutions. Yes, they work on tablets and smartphones, but in many cases the information entered into the app isn’t entered into your DMS database directly, which means the information isn’t available to all employees at the same time. Some apps, too, are limited with their functionality, focusing only on lead management, for example.

But the right CRM solution can be mobile enough to be taken outside of and beyond the dealership and can write data immediately back to your customer database, giving you more functionality and flexibility so your employees are armed with the most current information they need to effectively manage every customer interaction anytime, anywhere.

The right CRM solution – the one that’s focused on the consumer experience, easy to use, and always available – is an integral part of how your dealership can achieve operational excellence in sales and service and improve the customer experience at each interaction. Consumer expectations are helping to change the way dealers do business, and those expectations aren’t going to diminish anytime soon. In fact, they’ll probably grow. Now is the time to take the steps to get the right solution to meet customers on their level. CBT

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Retail First or Wholesale Now A Three-Point Plan to Effectively Manage Market-Troubled Used Vehicles

A general manager at a Midwest Acura dealership recently asked for guidance on a common question: Should you wholesale used vehicles right away if they have a high market days supply?

The question came up after the GM noticed that his used vehicle manager had just wholesaled a fresh trade-in—a 2013 Hyundai Santa Fe for $400 in wholesale profit.

Dale Pollak Founder of vAuto Inc. Dale is a highly sought-after speaker and author of several books on his Velocity Method of Management™. He is one of the leading authorities on automotive dealership management strategies, and offers dealerships a better way to appraise, manage and price their pre-owned vehicle inventory. He provides strategic development and integration for his company as well as other AutoTrader Group companies. Visit the website at www.vauto.com

ASSESS EACH VEHICLE’S MARKET AND PROFIT POTENTIAL

The used vehicle manager’s assessment didn’t look past the Santa Fe’s market days supply. He incorrectly reasoned that this was reason enough to wholesale the vehicle. Meanwhile, the GM dug in a little deeper to assess the car. He saw that, even with a high market days supply, a semi-aggressive price position—six percent below the market, or a 94 percent price-to-market ratio—might attract the attention the vehicle needs to stand out, and yield a $1,000 front-end gross profit.

“My opinion would have been to try and retail it,” the GM said. “The used-car director thinks he’s preventing age and inevitable losses by wholesaling a car that has unfavorable market data. That car would have been at 94 percent price-tomarket if we set the profit objective at $1,000. Do you have an opinion on this?”

The GM also calculated that the vehicle could well have generated $1,600 in “total gross” profit ($1,000 front-end, $200 in service/parts, $400 in F&I) as a retail unit.

I told him that, assuming they could recondition the vehicle and sell it for the $1,000 in gross profit, it seemed best to retail the vehicle, rather than wholesale it right away. I asked the GM if he knew of any other reasons the used vehicle manager chose to wholesale a fresh car, such as duplicates in the inventory, the wrong color/equipment, a mechanical red flag, etc.

As part of the GM’s plan, we agreed that he’d work with the used vehicle manager to conduct the more thorough “total gross” oriented assessment of every used vehicle’s retail potential. This assessment would rely on market days supply, cost to market and price to market (the three essential metrics for market-based used vehicle inventory management) to size up each unit.

“No,” he said. “His opinion was that the car has a 140-day market days supply and, by definition, lots of competing cars. Therefore, it probably doesn’t have any retail opportunity and it’s probably destined for age and losses.”

Unfavorable market data doesn’t mean you should be afraid of a car, but it does mean you have to be careful.

The GM and I came up with a “retail-first” game plan to help his used-vehicle manager step up, rather than step away, from fresh used vehicles that happen to have less-than-optimal market data:

The GM’s plan calls for a 30-day maximum retailing window for vehicles with market-challenged profit/retail potential. Along the way, the used vehicle manager will assess each vehicle’s online performance (the search results page and vehicle details page views) and price-to-market position at least twice a week.

They’ll play with pricing and promotion if the vehicle doesn’t draw sufficient buyer interest. If a vehicle hasn’t sold in 30 days, they’ll wholesale the car, no exceptions.

PLAN YOUR EXIT STRATEGY

MEASURE YOUR RESULTS

In implementing the “retail-first” plan, the GM wisely decided he would run an experiment. The goal: See whether his “retail-first” instincts, or the used-vehicle manager’s wholesale-now decisions, offer the most profitable path forward for the dealership. “We’re going to start tracking how the cars sell and how they gross,” he said. “If I’m wrong, then we’ll see that these cars are aging and they’re not worth it. If I’m right, we’ll win 70 percent of the time and lose 30 percent of the time and we’ll still be up ahead.”

The GM’s retail ratios seem about right. In today’s used vehicle market, it’s inevitable that dealers will win with some cars, lose with others and draw even on the rest.

ETo see more from Dale Pollak go to CBTNews.com

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The challenge for him and other dealers is to get used vehicle managers to recognize that not all used vehicles are easy, fast sellers, and such cars require more attention to retail them profitably. Likewise, it’s important that the managers understand that even if they lose on a deal, chances are better than good that the dealership as a whole will see some benefit.

As the GM said, “You can’t hit the ball if you’re not willing to take a swing.” CBT

SOCIAL SELLING 5 TIPS TO PREVAIL IN THE SHIFTING

CONSUMER BUYING PROCESS Know your prospect’s behavior, inside and out

The tendency for dealers is to generalize about who their customer is. We all want to believe that “everyone” is our customer but that’s simply not true.

The more you identify the behaviors of your ideal customers, the better a marketer you’ll be.

Surprisingly, many dealers still don’t see a lead from someone online as a “real customer.” As a bricks-and-mortar store, there’s a tendency to depend on what’s right in your face when it comes to prospects. You open, people come in, they buy.

I recently had an interesting exchange through the comments on one of my blog posts about what constitutes a “real customer.” The commenter was trying to persuade me that online Ups are not as valid as “real Ups” -- people who drive by and stop in. I passionately disagree.

The commenter wrote, “I visit a LOT of dealerships. In most it is difficult to get a real UP waited on because the Gen Y sales staff is busy keeping up with social meeting, texting with both friends and customers, and staying glued to gadgets they think are their salvation.”

Respectfully, there is absolutely no difference between a Gen Y salesperson using their technology and a Baby Boomer salesperson using their preferred technology to connect with customers and friends. That’s networking. So a “real UP” is someone who walks on the lot? Hmmm, I believe a real UP is anyone who the salesperson communicates with about a purchase.

Consumers have changed the way they choose their cars and dealers must adapt. The same goes for most every bricksand-mortar retail business out there. Radio Shack is closing, Loehmann’s is gone and the list of those companies that did not adapt is growing daily.

BMW’s media planning agency, Vizeum, researched the consumer decision-making process and found that it is very different from even five years ago. It has become more complex and a lot shorter.

Traditionally, a car purchase journey begins with a trigger, such as a new addition to the family or a promotion. Those triggers still exist, but customers today head online rather than to a dealer. Part of that process is asking opinions of their friends and family using social media, then checking out online reviews from consumers like them.

People used to go into dealerships a couple of times before making their choice. Now they’re doing all their research online and they’re going into the dealership with a clear picture of what they want. That’s a huge challenge for dealers. They must learn how to tap into that changed consumer decisionmaking process.

Many OEMs and dealers are not providing their customers with the expected dialogue ability. The current approach is not matching the customers’ needs. This is an emerging issue and one that I fear may be the death of auto retail as we know it.

How can you prevail?

You may prefer the phone or face to face to communicate with prospects and customers. Others prefer email. More and more, consumers prefer social media. It’s a matter of your own mindset and what you’re comfortable with, however, it’s the same for consumers.

It’s incredibly short-sighted to think that everyone connects in the same way, especially if your job is to sell stuff. We must take into consideration how the prospect prefers to connect because that’s where the sale happens. Here are five social selling tips to prevail in this transitional time for all dealerships:

Be where your customers are

Seventy percent of customers would appreciate getting advice at a location of their choice. Meet your prospects where they are and guide them down the sales funnel. Whether it’s digitally or in real life, use good ol’ fashioned conversations to connect with them wherever they are in the research/buying process.

Instead of interrupting what people are interested in, BE what people are interested in

Create content that engages at each consideration stage of the buying process. Serve up content that answers their questions and converts them into customers.

Establish a strong program for social selling

Superior networking skills have never been more valuable. Today, social media makes it easier to connect and network with those people most likely to refer you and/or buy from you. Turn your salesforce into networking superstars. Training for social selling is certainly an option. To be ahead of the game, implement an internal process for content creation and publication.

This will acclimate your salespeople to the medium and provide evidence of how social selling can positively impact their sales.

Make it difficult NOT to convert

One important component of social selling is to attract the lead and escort the buyer down the sales funnel (digitally or not) with optimal conversations.

Sales don’t happen without these conversations. Ensure your salespeople are adept at asking questions, listening and responding in kind so that your prospects can come to the purchase decision with as much ease as possible.

If you’re running social ads, make sure you have a well-designed landing page to welcome people when they click. Converting leads into sales is no easy task so increase your chances of conversion by having the right offer and the right call to action.

Social selling is a hybrid of networking, marketing and public relations, with a bit of advertising thrown in. It’s selling through social media to close more leads. You may still be a bricks-andmortar store but answer this: If your customer is online and your inventory is online, then why aren’t your salespeople online? CBT

Kathi Kruse President of Kruse Control Inc. Kathi is an automotive social media marketing expert, blogger, speaker, coach and author. Her passion for the car business spans a 30-year career managing successful dealerships in Southern California. Kathi is the author of “Automotive Social Business – How to Captivate Your Customers, Sell More Cars & Be Generally Remarkable on Social Media.” Her Kruse Control blog is the leading automotive social media blog in the U.S. and Canada. Visit her website at www.krusecontrolinc.com

ETo see more from Kathi Kruse go to 26

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NEWS.COM

CAR BIZ TODAY

The CBT News crew was on the road again covering industry events in California, Colorado and New York. News anchor Russell Brown and the CBT film crew headed to Santa Monica, Calif., to report on the events at Edmunds.com Hackomotive.

During the three-day competition, which consisted of 12 teams looking to create a better car-shopping experience for customers, Brown caught up with Edmunds.com CEO Avi Steinlauf and Chief Marketing Officer Michelle Denogean.

According to Steinlauf, dealers should turn their focus to mobile technology in 2014 as 40 percent of Edmunds.com digital traffic comes from mobile devices such as smart phones and tablets.

Back in Atlanta, the news crew had the opportunity to attend Audi’s rollout of the new A3 at Jim Ellis Audi, and the grand re-opening of Wade Ford, where news anchor Bridget Everett interviewed Ford Motor Company’s CEO Alan Mulally.

According to Mulally, grand-opening events like the one at Wade Ford showcase the very best that the manufacturer has to offer.

Then in April it was on to Denver, Colo., for the Innovative Dealer Summit and the Denver Auto Show. The summit, a one-and-a-half-day forum, addressed the most pressing sales, profitability, technology, best practices, social media and other emerging issues in dealership operations today. It took place at the home of the Denver Broncos in the Sports Authority Field at Mile High.

GRAND REOPENING OF WADE FORD ATL GA

JOHN HUMPHRIEY / SENIOR VP J.D. POWER

DRIVING SALES PRESIDENT’S CLUB

MARY BARRA / PRESIDENT GENERAL MOTORS

JOE WEBB / DEALER KNOWS

TIM JACKSON / PRESIDENT OF CADA

JOHN ELWAY / NFL HALL OF FAMER AUTO DEALER

SCOTT PAINTER / CEO TRUECAR

JOE HINRICHS EVP FORD/PRES OF THE AMCS

DAVE ANDERSON / PRES OF LEARN TO LEAD

JIM FRANCHI / PRES AUTOTRADER

SHAYNE WILSON / PRES OF METRO ATLANTA AUTO DEALER’S ASSOCIATION 28

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AVI STEINLAUF / CEO EDMUNDS.COM

LARRY DORFMAN / CEO EASYCARE

ALAN MULLALLY / CEO FORD MOTOR COMPANY

JEFF COWEN / JEFF COWEN’S PRO TALK

JIMMY ELLIS / VP OF JIM

Covering the Auto Industry’s Top Events While there, the CBT News team interviewed TrueCar’s CEO Scott Painter and Super Bowl MVP and car guy John Elway.

Those interviews can be seen in their entirety on CBTNews.com Next stop for the travelling news crew was New York City for the J.D. Power and NADA 2014 Automotive Forum. Hosted by the New York International Auto Show, the one-day event brought together leaders from OEMs, suppliers, retailers and the media to discuss how industry and economic conditions will shape the future.

At the New York International Auto Show, Everett spoke with Mark Fields, Chief Operating Officer of Ford Motor Co., while CBT News Founder and President Jim Fitzpatrick interviewed Forrest McConnell, chairman of NADA; Scott Keogh, president of Audi of America; and Ford’s Joe Henrichs. Those interviews can also be viewed on CBTNews.com.

One of the highlights of the New York show was the 50th anniversary celebration of the iconic Ford Mustang. In replicating the pony car’s debut at the 1964 World’s Fair in New York, the company displayed the all-new 2015 Ford Mustang convertible on the observation deck of the Empire State Building. CBT

MARK HUNTER / THE SALES HUNTER

SPORTS AUTHORITY FIELD AT MILE HIGH

FORREST McCONNELL III / NADA CHAIRMAN

BILL WITTENMYER / ELEAD1ONE AUTOMOTIVE FORUM PANEL

KARL BRAUER / KELLEY BLUE BOOK

SCOTT KEOGH PRES/CEO AUDI OF AM

ALI AMIRREZVANI / PRESIDENT OF DEALERON

JOHN FITZPATRICK / CEO FORCE MKTG

PHIL SURA / UNITYWORKS MEDIA MICHELLE DENOGEAN / EDMUNDS.COM

APRIL RAIN / DIGITAL RAIN

M ELLIS AUTOMOTIVE GROUP ATL

MARK FIELDS / COO FORD MOTOR COMPANY

FORD MUSTANG 50th CELEBRATION

GRANT CARDONE / CARDONEON DEMAND.COM

PETER WELCH / NADA PRESIDENT MAY

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Grant Cardone

Entrepreneur and New York Times best-selling author Grant, a national speaker and motivator, is a respected, highlyregarded master salesperson whose passion is to teach people how to sell themselves, their products and services regardless of economic climate. His books, audio packages and seminars provide people of all professional backgrounds with the practical tools necessary to achieve high levels of success. Visit his website at www.grantcardone. com. Follow Grant on Twitter at @grantcardone

LEASING IS HERE TO STAY

Leasing has hit record levels for several reasons. One is because there is a major demographic and psychological shift taking place among consumers. People don’t feel the need to own things today the way they did 50 years ago. The equity concept was blown out of the water with the latest housing crisis where people found themselves underwater in their homes. More people had more negative equity in their home than in their cars.

For the 80 million millennials (those born in the 1980s and ‘90s) who have less and less attachment to owning anything in their lives, leasing is the preferred choice. These days a two-year cell phone contract is being met with resistance. Millennials want the freedom and adventure of moving from product to product as technology advances. They don’t want to be stuck with outdated products, or cars for that matter. This is not just a millennial phenomenon. The desire to have the latest and greatest is moving across every generation today.

Then there are the cash-rich and competitive manufacturers who are just as responsible for this leasing phenomenon. The deals the manufacturers are subsidizing are sick. GM wants to take share from Ford and Dodge’s truck business so they increase residuals a few points, stretch the term two months and reduce the down payment.

When the luxury car manufacturers start competing for share it really gets crazy. Audi, Lexus, BMW, Infiniti and Mercedes are all fighting for the same market so you will see an ES for $339 a month and almost anyone can get approved for it. Then, watch the imports go at each other by backing the lease paper on a sub 500 FICO score. People who can’t rent a car will get approved on a 28-month lease.

So how can a dealership lease more cars and trucks? Here are four steps to leasing more cars: Write everyone. Everyone.

Show - don’t sell - the lease It is no longer necessary to prepare a buyer for a lease as it was a decade ago. The marketplace has changed and the customer is now ready to see alternative ways to pay for the vehicle. There’s no need to get the buyer ready for a lease any more than the need to get them ready for longer terms.

Always compare the lease price to a purchase price When you present the purchase price, present the lease price at the same time.

Do not ask if they want to see a lease, just present the option – always, always, always – even if the lease terms are not good.

This will make the purchase look better and vice versa.

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Use electronicly generated worksheets to show lease Time is the enemy when selling cars today. A recent study cited in Car Biz Today Magazine showed that the longer the sales process, the lower the gross profit. Utilizing an electronic worksheet (pictured left) when presenting the lease and purchase speeds up the negotiating process and gives the customer something to see, not just hear.

Showing the lease and the purchase together not only saves time, but it provides buyers with choices so they can make sense of which option works best for them. CBT

ETo see more from Grant Cardone go to CBTNews.com

Art the

of

SELLING TO

ONLINE SHOPPERS

THERE IS A “RIGHT” COMMUNICATION SEQUENCE TO GETTING YOUR CUSTOMERS INTO THE SHOWROOM Communication tactics are the art of selling an appointment and, in turn, selling a car. However, there are critical steps that must be taken before a lead becomes an appointment. All effective lead handling processes (the science) must be coupled with effective communications tactics (the art) in order to achieve exceptional results. The following communications sequence - sell the reply, sell the call, sell the visit and then sell the car – is recommended to get the buyer into the dealership.

Selling the Reply

To achieve a high connection rate (where you are interacting with your prospective customers by email, phone, text or chat) you will need to sell a reply in your communications attempts. This sometimes is as simple as luring them to reply to a quality voicemail. One method that seems to work very well is a simple, “I have just checked on the vehicle you asked about and have gathered all the information including the price, equipment, incentives, etc., and have it right next to me, so when we are able to talk by phone I can provide it right away.” The key is to leave a voicemail that gets a reply call back.

In an email you can use even more simple elements. Please don’t ever send an email that doesn’t contain a question mark. The human mind needs the stimulant to acknowledge the need to respond. They may ignore it but a well-crafted question works great to sell a reply. Something as basic as, “What kind of vehicle do you drive now?” or, “Have you ever owned a (your brand)?” is sometimes all it takes to engage the customer. The more genuine the question is, the better. A question that I like and works well is, “Would you like me to send you a quick video of the vehicle?” Show them how much you are willing to help and you’d be surprised at how well that works.

Selling the Call

In studies we have conducted, we seldom see a vehicle sold to an Internet prospect without first having a phone conversation. That’s why it’s imperative that your email, phone messages and texts sell the benefit of a telephone call.

This may sound difficult but if you approach it in the best interest of the customer they seem to be fine with a quick call. Watch how you phrase it and you’ll be impressed how often they are open to a call. Try approaching it with a simple, “I have the information you asked about and can go over it in just a couple of minutes by phone. Is there a convenient time for a quick call today?”

Selling the Visit

Consumer behavior studies continue to show that a visit to a dealership is not at the top of the list for a lot of car shoppers. If you look at your own website you’ll see that we almost stress that they don’t need to visit the store to buy. But the dealership is where all the magic happens and you will want to develop a few lines you can emphasize to your customer regarding the value of a visit to the dealership.

ETo see more from David Kain go to CBTNews.com

A study released by J. D. Power suggests that online shoppers visit only 1.3 dealerships in person prior to making a purchase. That means that, after they visit

David Kain President of Kain Automotive David has a unique background that includes automotive retail, OEM executive leadership and digital sales training and consulting. His 20 years in retail included various positions in sales and service at Jack Kain Ford, where he remains a partner today.

David was the COO and cofounder of FordDirect.com, the Internet lead provider to Ford and Lincoln dealers.

In 2003 he developed Kain Automotive. Visit his website at www.kainautomotive.com

the 24 sources of information online and offline, according to Google, there are a lot of reasoned decisions by customers to not go to a dealership. A test drive is not the be all and end all it used to be to inspire a visit either.

This is where a sales person can get really creative, making the visit a truly wonderful event and describing it as such. You might say, “We have a special Internet buying process that makes it really easy for our online customers. I will have the vehicle you asked about pulled up and ready to present and let you take it for a fun test drive. You can bring your own music so you can listen to the stereo, open the sunroof and let some air in, put it through the paces you would in a normal daily drive. Then if you decide it’s the vehicle you’d like to buy we can provide you with your special Internet price, top value for your current vehicle and payments that fit your budget. If you like what we provide you can take it home with you or you can just take the information home and decide on your own time. How does that sound to you?”

The key is to allow them to be in control while motivating them with a well-puttogether process. This is much more effective than the old, “We got your request. When can you come in for a test drive?” Surprisingly this still works with a lot of customers but we prefer a more inspired customer when they arrive. And if we set the appointment up right, they normally buy on the first visit.

Selling the Car

What’s great about doing all the steps right is how easy it is to sell the vehicle when the customer arrives. I am not a big proponent of preselling the vehicle before they arrive because so many buyers change their mind. I would rather the buyer come in with a vehicle in mind but for you to have flexibility to show them others if the first choice doesn’t work.

It is important to realize you have to set the stage for a proper visit. There are several techniques to help you do that. Having your customer’s name on an appointment board, for example, proves to the customer they are special. I especially like having the vehicle pulled up front, displaying a placard or mirror dangler with the customer’s name on it, so they see it when they arrive.

Sales managers who are aware of the appointment can also do a “fly by” with knowledge of the customer, and say, “David tells me you have owned five Toyotas” or “I hear you have a nice Fusion to trade in” for example. Anything you can do to make the customer feel like they have arrived at the right place makes the sell that much easier.

Bringing the science and the art of communication together will allow you to achieve extraordinary results. And if you follow this sequence in the communication process I can assure you that you will sell more appointments and more cars. CBT MAY

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ASK THE PROS At CBT News, we have a deep and wide pool of experts who are always willing to share their vast knowledge with our readers. Whether it’s information on sales, service, F&I, marketing, management or fixed ops, our contributors are the go-to professionals for reliable, relevant advice for dealership personnel.

You can 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.

When is the best time to sell a lease?

Jeff G., Las Vegas In the past, leasing was a form of ownership that was presented when initially conducting the Meet & Greet, whereas today it is more of a payment option. Consumers today buy a car they want, from a salesperson who inspires them and at a dealership where they want to conduct business. Thus how the customer pays for the car is not our initial concern. Making that inspiring presentation must be our initial goal.

The option of a lease should be presented as a form of payment in the initial quote. The salesperson has two options: If you want to make leasing the dominate form of negotiations, then start every quote out with just a lease and if you want to give the customer options, then present all initial quotes with price, finance payment and lease payment.

DAVID LEWIS

What is the best way to get more prospects in a demo drive?

Patrick M., Roswell, Ga.

GRANT CARDONE

Make a giant claim. “If the time you spend driving this car with me is not a great, memorable experience I will pay for the gas it took to get you to see me.” Make them an offer they can’t refuse, as Mr. Corleone said. Partner with a local car wash and when they test drive a car, they get a certificate for a free car wash. Be clever and give them something that sets your dealership apart.

Most of your clients have driven cars before. You have to make it exciting and worth their time. Remember the last demo ride they were given was probably average at best. Why should I drive there? What’s in it for me that I have never experienced? Make sure you already have answers to these questions to get them driving. Then know how you will present the car once they get in it for the test drive. Know what you will say and when, and truly deliver a great experience.

Better than all that, bring the car to them. Last year I posted on Facebook asking a luxury dealer in Miami to bring me a Porsche to my office with the address to test drive. No one brought me a car and two guys called and asked me to come to them. That was an opportunity!

When is the best time to ask for referrals?

Thomas R., Cleveland

MARK TEWART

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I believe the optimum times are during the close of the sale and just after the close of the sale. Many would argue that this is distasteful but I disagree. When you are closing a sale, you can express to the customer in negotiations that to move closer to their figure you would have more leverage and if they could provide you one or two referrals that might help make up for selling the vehicle at a lower than desired profit level. After you have closed the sale is also an optimum time because the customer is excited and feels good about you and the dealership. You must ask for referrals correctly. Example: “Mr. Customer, on a scale from one to 10 how good has your experience been?” (assuming the customer is completely happy) Then ask, “Out of your friends, family, neighbors and co-workers, who would be the most likely person to buy in the near future?”

MAY

A SECOND CHANCE TO MAKE A FIRST IMPRESSION 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

As the recession loosens its tight grip on our economy and businesses, vehicle sales are beginning to steadily climb nationwide. As a result, a very important decision is looming for auto dealers. Many of the customers who are purchasing today are doing so for the first time in several years. As they return to the dealership, what customers find and experience today will redefine their expectations and impressions for the foreseeable future.

We are getting a second chance to make a first impression.

“

The auto industry, from the manufacturer

down, has an unprecedented opportunity

to alter the once-speculative impression that most consumers have had regarding the dealership service business.

”

In my opinion, General Motors and Ford have seized this opportunity and have begun to campaign to change the image of the dealership service department. Their television ads are

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compelling and they insinuate that things are different and for the better.

They push to inform customers about the advantages of factory-trained experts and factory products -- all good and long overdue.

But when consumers return to the department, is what they experience going to be different or just more of the same? Is anything really going to change?

The following recommendations are mandatory for every dealer and manufacturer to prove that things really are different and the dealership service experience is worth the customer’s time and effort.

A NEW MINDSET Drop the aged mindset of “service and repair” and embrace the mindset of “service and service retail.” You are in a retail business that sells services and products. For this reason, the experience your customer receives will have to match that of what would be found at any major retailer. You have to look, act and feel like a retail establishment. If your customer is a Nordstrom’s or Macy’s customer, mimic them. If they are comfortable with Target, or find themselves steering towards Wal-Mart set out to mimic the corresponding experience. Although all of those retailers

food everything. McDonald’s insight into identifying and meeting customers’ needs has been one of the biggest contributors to its worldwide success and why it outnumbers other food franchises 3-to-1.

If you can expand your preconceived notions of why you exist, then you can put a big hurt on the independent and chain quick-lube stores that still view themselves as existing only to serve a narrow market. All they offer is quick lube and very little else, just like KFC offers chicken and very little else.

You can offer quick lube plus repair, maintenance and warranty – and you should.

Be a true one-stop shopping experience.

What has kept the quick-service business from catching on at most dealerships is that the idea is being over thought. It’s really not that hard. Hang a sign that says “Quick Oil Change” or “Quick Service,” make some very minor internal adjustments, promote within and promote outwardly to the community.

Make sure your staff understands that “quick” is on the outside of the building to bring the customer in. Their job on the inside of the business is to inspect the vehicle and make the customer aware of all needs. This ensures profitability through quick service.

are vastly different in what level of product and service they offer, all are bright, exciting places to visit. They have set an expectation for their customers.

NEW SERVICE AND PRODUCT DISPLAYS Your retail space should be used to generate sales and inform customers. For example, tire stores have set the benchmark with tire walls displaying 30 or more tires in three rows from floor to ceiling. The top row is labeled “best,” the middle “better” and the bottom “good.” All the tires are either mounted on chrome wheels or have perfectly-fitting center product-information cards. These displays are engaging, clean and exciting! They have these world-class displays not only for the tires they sell, but also for the other products they offer. And the sales associates know how to sell from them.

If your displays do not look as crisp and sharp as the aftermarkets stores’, you will be perceived as not being so. Even stores that are low on space can create displays through the use of monitors and flat-screen televisions.

QUICK LUBE OR QUICK SERVICE Many dealers have been straddling the fence on this decision for years. The bottom line is you have to be in this business, and the quicker you get in the better. You exist to serve your customers’ automotive needs, and customers demand full service.

When McDonald’s restaurant first opened it was known as McDonald’s Hamburgers.

Today it is simply known as McDonald’s.

You know why? Because its corporate leaders realized that their restaurants exist to fill all their customers’ needs. Today the menu offers hamburgers, chicken, fish, salads, breakfast, desserts and kids meals. It’s not just fast-food hamburgers anymore, its fast-

Although building separate buildings, service lanes and the like are not bad ideas if you have the room and means to do so, it is not an actual requirement for your dealership to accommodate the extra business.

EXTENDED SERVICE AGREEMENTS There is simply no excuse for not selling extended-service agreements on the drive.

Period. With people driving their vehicles longer, putting more miles and wear and tear on them, the need for this product has never been greater.

And with the recent advancements in software, it has never been easier to sell it on your service drive utilizing the skill of your service advisor.

to be your excuse for not buying into this sure-fire profit maker.

LATE NIGHT AND WEEKEND HOURS This topic always causes a firestorm, but this is an issue that not only needs to be discussed, but discussed and reviewed on a semi-annual basis. You have to look at the community that you are in, what your competition is doing and then decide from there what is best for you and your business.

I know that late-night and weekend hours are never fun to consider, let alone actually work, but your complaints will fall on deaf ears. A few years ago while my team was in the Super Bowl for the first time, I spent the first quarter on stage at the NADA convention presenting a workshop. Three out of my last four birthdays were spent flying to or flying home from a workshop.

My situation is simple: if I refuse a job when someone calls, they will simply pick up the telephone and call someone else. The NADA, a manufacturer or a dealer group is not going to plan an event around my schedule; and customers won’t plan their schedule around yours when they can find someone else that will accommodate them just as easily.

I believe that you should implement all of these recommendations to some degree or another. The sooner you do, the sooner you will reap the rewards.

The “new” economy that emerged over the past several years has created a very unique opportunity we all must seize; we are getting a second chance to make a first impression. CBT

This is another idea that has been overthought. This is one of the easiest and most profitable products that you can sell on your drive. It is a product that is a true win - win for everyone.

The manufacturer, dealer, manager, service advisor and customer all win.

America loves insurance. And more now than ever customers are taking measures to protect themselves against unexpected crisis.

To make this venture successful you have to be willing to do four things; pay the advisor the same as you would pay an F&I salesperson, allow the profits to stay in the fixed ops department in which it was sold, be willing to invest in the very inexpensive software to make the transaction lighting fast (less than three minutes) and be willing to train your staff how to expertly execute.

What’s at stake? Consider this: if your F&I department has the national average of a 46 percent penetration at the time of the vehicle sale in extended service agreements, that means that potentially more than half of your customers who purchase a vehicle at your dealership and return for service do not have an extended warranty. Imagine what the profits could be if you got just 5 percent of them each day to invest in one? Huge profits are at stake. So don’t allow short sightedness and some whining from the F&I department

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? . y . . r o t So S r u o Y s ’ t a h W

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

Facts tell and stories sell. If you want to become really good at sales, then you must know how to tell your story. People think in pictures and they can and will follow a story. People learn better from stories and become emotionally connected to stories. What is your story and can you tell it and tell it well?

What makes you who you are? You are different from anyone else. Your life experiences, background and everything about you makes you unique. Unfortunately, if you are like most people, you think you are typical and that there is nothing exceptional or unique about yourself, and if that is what you think, you are absolutely wrong.

You could tell any customer 50 things about your product and he might remember a few of them.

But, if you shared with a customer five things about yourself, he will remember all of them. People buy from people — not salespeople. People don’t necessarily like salespeople but they do like people to whom they can relate or to whom they can connect by their story.

Stories make you a real live person instead of a commoditized salesperson. A customer can get a product anywhere, but he can’t get you anywhere else. If you don’t believe that, you are doomed to sell less than you could and should. You will also be

doomed to experience frustration in sales because you have relegated yourself to the position of “order taker.” Stop selling products.

Telling your story does not mean you have to dominate a conversation or talk only about you.

However, you have to weave it into a conversation and eventually tell how it might relate to your customer.

A conversation occurs when two or more people are communicating with one another. A conversation is rarely about a product alone. The conversation more often than not includes opinions, experiences, background and a personal spin to your product.

To have a true conversation, you will not only share your story but will also learn your customer’s story. A story is not only what a customer is looking for. It is the who, what and why of a customer.

Imagine asking customers deeper questions rather than “what product or model are you looking for?”

Dig deeper, dig deeper, dig deeper.

The story is there and your customer wants to share that story. When customers share their stories and you truly listen, you have now connected you, your product and service to them. The connection is deeper and more emotional than other salespeople will have.

The following simple questions will allow a customer to share his story with you and begin not only a conversation, but a relationship.

“Mr. Customer, what is the most important thing to you when you buy?”

“Mr. Customer, what was the first thing that made you want to buy what you currently have?”

“Mr. Customer, tell me how you plan on typically using (your product)” “Mr. Customer, do you work near here? Where?

How long have you worked there? What do you do? How did you get into that?”

“Mr. Customer, as you have been shopping, what one thing has kept you from moving forward in making your decision?”

Think about some of the best books you have read or the best movies you have seen. Did they have a compelling story? Think of the most interesting and compelling people you have ever met. Did they have a great story? Did you want to know more?

Know and communicate the stories of you, your product and business. Just as importantly, you should know the story of your customer. Stories create influence and connection. Influence and connection have created more sales than any product or price ever has.

Price creates commodity and lowest price wins in a commodity environment. Price cutting is a self-inflicted wound created by the salesperson with a weak and untold story. In your next three sales encounters, work on sharing your story and understanding your customer’s story. You will be amazed at the results. CBT

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GYM? You work too many hours. By the time work is over, a trip to the gym is pretty low on the list of things you want to do. Maybe you could hit the gym on your lunch break. What lunch break?

Exactly. Time is sales and you have inventory to clear. I could tell you a multitude of hour-and-ahalf long workouts to do at a well-equipped facility that would bring you to your goals pretty quickly, but there’s a reason you’re not already doing that: Lack of time.

and athleticism. And if you want to build some muscle, you can use tempo to build more time under tension. For example, a 3-second eccentric (squatting down movement), hit the bottom and change direction, and a 3-second concentric (standing up movement). Do this for 12-15 reps.

Swings (intervals)

So what should you do on your lunch break?

You could grab a pizza or a greasy cheeseburger, fries and a large soda. But why not go in another direction? Why not incorporate a workout you can do at the office? The key is to find one that fits even the busiest of lifestyles.

The best way to squeeze training into your day and get results without even leaving your office - is to use smart kettlebell training.

What’s a kettlebell? Where do I find one? What size do I need?

Most sporting goods stores sell kettlebells. Which size you should buy depends on a few factors like your age, weight, fitness level and your general amount of weight-lifting experience. For men, I recommend starting with a 16-kilogram (35-pound) kettlebell, and for women, an 8-kilogram (18-pound) kettlebell. As you gain experience and improve your work capacity, slowly increase the size. Just make sure that you continue to challenge yourself!

This thing looks weird. the heck do I do with it?

What

See how far you can throw it. Just kidding. Bad idea. There are tons of possibilities. Some are more beneficial for strength, some are great for fat loss.

I’ve found it to be the most useful single implement to use in the absence of a fully-equipped gym.

And yes, you can do this in your office. Just don’t eat popcorn beforehand, these things can do some damage if you drop them.

Ok, enough fluff. Here’s what you need to do:

Goblet squats

A goblet squat is simply a squat with a kettlebell loaded on the front of your chest. Easy. However, when I say squat I mean all the way down! As low as you can. That’s how we develop real strength

The simplest way to use kettlebells for weight loss is to do timed interval swings. To perform a kettlebell swing, start by holding the handle with both hands in front of your body and your arms and shoulders relaxed. Push your hips back to the wall behind you while maintaining physical contact between your forearm and inner thigh. Once your hips are loaded, thrust them forward and extend your hips fully, creating a swinging movement with the kettlebell. Repeat this movement, using rhythm and momentum for the prescribed time interval. For fat loss, use short work sets (20 seconds) with short rest sets (10 seconds) and complete eight to 10 rounds for a super-efficient and effective workout.

Complexes

Complexes combine several exercises in rapid succession (for example 20 swings, 15 squats, 10 overhead presses) and are designed to be tough and to improve conditioning. You can get creative with these once you discover more advanced movements.

Perform the complex all the way through as fast as possible, then take a short rest period and repeat about four to five rounds, building volume as your conditioning improves.

While fitting a workout routine into your busy day might be challenging, it’s certainly not impossible.

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Mitch Cummins President of Opportunity Max With more than 25 years of experience as an innovator, leader and result-driven automotive sales and marketing executive, Mitch has successfully developed national sales training and marketing campaigns for GM, and has taken underperforming dealerships to new levels of profitability. Early on he embraced the digital revolution, quickly recognizing the significance of being able to precisely track the results of advertising and marketing via the Internet. Visit his website at www. oppmax.com

These days, people don’t like to talk about failure. It’s a dirty word in today’s culture. Instead, people only want to talk about success. Think of all the thousands of self-help books with the word “success” in the title.

In today’s culture, nobody fails. Even in sports, kids are given trophies just for participating. If nobody fails, then nobody gets their feelings hurt. There is a very real fear of failing.

That attitude, however, is counterproductive to achieving your dealership’s marketing and sales goals.

In order to succeed, you have to address the failures.

You see, it’s not about fearing to fail. It’s about failing to correct mistakes. Motivational speaker Denis Waitley said, “Failure should be our teacher, not our undertaker. Failure is delay, not defeat. It is a temporary detour, not a dead end. Failure is something we can avoid only by saying nothing, doing nothing and being nothing.”

The truth is we learn from our mistakes. In fact, some of our greatest successes have come from misfires. Thomas Edison is credited with saying, “I’ve not failed. I’ve just found 10,000 ways that don’t work.” If Edison hadn’t pressed on with his research, we may still be reading from gas lamps.

Adopting that same “can do” attitude when it comes to finding solutions to problems is the key to turning a failure into a success. This is especially true of your digital marketing strategy.

Perhaps you’ve heard the expression “a death by a

thousand cuts.” Well, with every click of the mouse, you have an opportunity to succeed - or fail - at making a sale. And it all starts with communication.

A study conducted by Shopper Sciences and commissioned by Google revealed this about car buyers: • 71 percent use a search engine • 61 percent search dealers’ online inventories • 59 percent comparison shop cars online • 56 percent seek information from a dealer website • 49 percent search online for a dealership The purpose of the study was to identify what is shaping customer decisions on the path to purchase.

One conclusion was that dealers are challenged to generate enough influence online during the research stage. So what does this survey teach us about how today’s customers are buying cars? The answer is simple: If you are not successfully connecting - or communicating - with these customers online, then you will not succeed in growing your business.

How does your dealership’s website compare to your top 10 competitors’ websites? Where is it failing?

Where is it succeeding?

Is it generating enough influence with the consumer?

If the answer to that last question is “no” then there are some practical ways you can turn the fear of failure into a celebration of success, including:

• Inspect what you expect. It means don’t take anything for granted. Examine your entire digital marketing footprint, diligently seek out points of failure and fix them immediately.

• Review your website’s heat and scroll maps to see which pages are the most effective and which need an overhaul.

• Conduct mystery chats to make sure your business development center staff is following up every hot lead.

• Freshen up your customer emails with new, compelling graphics.

• Motivate your customers to visit your dealership with exciting and unique-themed events.

• Take out your smart phone, open your Yelp app (you mean you don’t have one yet?) and find out whether you’re a one-star failure or a five-star superstar compared to other dealers in your area.

• Investigate what your competitors are doing.

Conduct mystery shops. Gather intelligence. Get inside their heads. Then counterattack with a strategy that neutralizes their effectiveness.

• Demand accountability. Hold your team to the same standard of excellence you hold yourself.

•

Do the little things right.

If you put just some of these suggestions into practice and then make sure to execute them consistently, you will see improved results. Remember to always look at things from the customers’ perspective. It’s all about them, not all about you.

And you would be wise to adopt the philosophy of Gene Kranz, flight director of the Apollo 13 mission which almost took the lives of three astronauts.

“Failure is not an option,” he said. “When bad things happened, we just calmly laid out all the options, and failure was not one of them. We never panicked, and we never gave up on finding a solution.” Because of his tenacity, his grace under pressure and his leadership, the Apollo 13 crew came home safely.

“Failure” only becomes a dirty word when you fail to see the opportunity to turn it into success. CBT

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