July Issue of Car Biz Today by CBTNews

The Ofﬁcial News Source of The Retail Automotive Industry

CAR BIZ TODAY CBTNews.com

JULY 2014

ISSUE 5

GOAL SETTING IS THE FIRST STEP TO SUCCESS

How many times have you loaded the family in the car for a vacation with no inkling of an idea of where you’re going? Never. So why would you attempt to increase your dealership’s volume without a clear plan on how to do it? Saying you’re going to increase sales is not the same as setting a goal. It’s more like a wish. Without a specific figure that you’re shooting for and a well-thought-out road map to reach that number, you might as well toss some pennies into a fountain. You’ll have the same outcome. On page 26, Joe Verde offers very practical advice for setting and reaching dealership sales goals. see PAGE 26

Joe Verde

BE A LEADER WORTH FOLLOWING DAVE ANDERSON see PAGE 8

5 WAYS LEADERS CREATE THE BEST WORK PLACES BRIAN TRACY

PRSRT STD US POSTAGE PAID Permit No. 915 Woodstock, IL

see PAGE 10

WITH THE OPENING OF TWO NEW DEALERSHIPS IN STUART, FLA., AND THE THRIVING BRICKELL Motors in Miami, Fla., Mario Murgado and his partners are looking at a bright future. His is a true American success story that began long before he entered the car business in 1981. As a Cuban immigrant who came to the U.S. on the Freedom Flights of the ‘60s, Murgado was taught from a young age not to squander opportunities available to him in this country. He began his auto career as a full-time salesperson while also attending college full-time. He moved quickly through the ranks at Braman Imports, becoming president of the group by the age of 31 and eventually one of Norman Braman’s first managing partners. Murgado is a true American patriot who loves his country and loves the car business. Read how he and his partners, Alex Andreus and Rick see PAGE 20 Barraza, are building one of the fastest-growing dealer groups in Florida.

STOP THE ARGUMENT BEFORE IT STARTS

ARE YOUR SOCIAL MEDIA EFFORTS WORKING?

You would expect that service appointments and reservations would increase your customer satisfaction index. After all, there’s a specific time that has been set aside just for that customer. The problem arises however, when there is a misunderstanding of what that specific time is designed for. Jeff Cowan explains how reservations and appointments can, in fact, destroy the very things your dealership is after: customer retention, positive reviews and upsells.

By now, everybody knows that social media is the go-to platform for consumers when shopping for a new vehicle. If your dealership isn’t utilizing social media to reach your potential customers, you could be missing out on countless opportunities. Even if social media is a large part of your marketing efforts, is it really positioned to bring in the leads and sales?

See PAGE 22

CBT NEWS 5 Concourse Parkway Suite 100 Atlanta, GA 30328

Jeff Cowan

With Protective Asset Protection, you protect your best asset your reputation. Learn more at protectiveassetprotection.com or call 888.326.2545

see PAGE 14

Kathi Kruse

IS YOUR DEALERSHIP WEBISTE READY FOR BUSINESS A dealer’s website is by far the most important digital asset – virtually every consumer visits a dealer’s site before setting foot in the showroom. But is your website designed to handle the explosive growth in mobile marketing? According to Ali Amirrezvani, most dealers are unaware of what type of website platform they are using. Knowing the difference between the three options available is crucial to providing your customers with a great mobile experience. see PAGE 24

Ali Amirrezvani

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July

DON’T BE LEFT OUT.

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Jim Riehl’s Friendly Automotive Group Lapeer, MI

Information you can’t get anywhere else. Another great reason to become a CARFAX® Advantage Dealer®. 855.349.4929

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CAR BIZ TODAY M

CAR BIZ TODAY MAGAZINE Email

newsroom@cbtnews.com Phone

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President and Publisher

Letter from the Editor

Jim Fitzpatrick

Vice President / COO

Bridget Everett

Managing Editor

Carol White

Part of the reason I love this business is the people I meet who have truly inspiring stories. Mario Murgado is a great example. At the age of 3, he was separated from his family and flown from Cuba to the United States to escape the turmoil of his native country. There was no promise that his mother, father and sister would be able to join him. There was only hope. His father was determined to give his son a chance at a bright future, even if that meant he would be cared for by his foster parents. As a mother, I’m not sure I could have sent my preschool-aged children – alone – to another country. But those were different times, and his father had incredible faith in our great country. Luckily, he was reunited with his family, and Mario was taught from a very young age to not take for granted all the opportunities the U.S. had to offer. His patriotism and love for this country exceeds that of many natural-born citizens today. I swear I could almost hear Lee Greenwood’s “God Bless the U.S.A.” when I spoke with the Miami-based dealer! As we celebrate the Fourth of July, it seemed fitting that we chose Mario as our Dealer Profile. His love for our country is matched only by his love for the car business. “It’s something I’ve always had a passion for, and I get very excited about it,” he said. His goal each day is to spread the joy by making his customers happy. Read his dealership’s success story on page 20. At Car Biz Today Magazine, we invite letters from our readers. We want to know what’s on your mind. Do you have an opinion or comment about one of the stories in this issue? Email me at cwhite@cbtnews.com and let me know. Have the best July ever!

Carol White Carol White | Managing Editor cwhite@cbtnews.com

Associate Editor

Russell Brown

Assistant Editors

Amy Ottman Beth Hogan

Art / Web Design

Andrew Goodman

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

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What WINNERS

DO TO

WIN I

f you are not interested in horse racing, you may not be familiar with the names Perry Martin and Steve Coburn. They make up the partnership of DAP Racing and are the owners of the 2014 Kentucky Derby and Preakness winner, California Chrome. The story of their horse is the stuff of legends and the story of these two men shows what someone can do when they have a vision to succeed. In a sport dominated by wealthy owners and millioan-dollar horses, California Chrome’s was a victory for the little guys. Coburn and Martin produced the winner of the world’s most famous race with only one horse in their stable. California Chrome will probably go down in history as one of the most unlikely champions of all time. Martin and Coburn are not your common Derby winners either. Coburn works as a press operator at a small company making magnetic strips for credit cards. Martin runs a laboratory that tests things like car air bags and medical equipment. They named their stable DAP, which stands for Dumb-Ass Partners after a comment from a trainer about the folly of buying their horse’s mother and getting into the racing business five years ago. Despite knowing little about horses, Martin and Coburn bought California Chrome’s mother, Love the Chase, for a mere $8,000 and bred her with a California stallion named Lucky Pulpit for $2,500. If they would have listened to the naysayers who dominate the sport of horse racing, they would have realized their chances were slim to none and given up before ever getting started. But, that isn’t what winners are made of, and standing in the winner’s circles after the Derby and the Preakness, they looked like the smartest horse owners to date.

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Keeping this in mind, the following is what winners do to win:

Just like those who told Martin and Coburn they couldn’t win, there are plenty of naysayers in the car business who still talk about how “this business will never be as good as it used to be” or “all buyers are liars” and “all that people care about today is getting the car for the lowest price.” If you are going to be a champion in the car business, you have to build a winner’s mindset and cut off the voices of those who are working hard at mediocrity. The status quo is fine for them, but not for you. Where they see an “up,” you see a potential customer for life. Where they see someone of which they can take advantage, you see someone you can serve and earn their business.

Rule #2 - Winners do not give away their dreams for a quick profit Coburn and Martin were so confident that California Chrome could win that they turned down a $6 million offer for a 51-percent share in the horse. They had invested their retirement savings to buy and train him with a bigger vision in mind and they refused to give up their long-term dreams for a short-term payoff. Besides, they said their horse was family to them.

Rule #3 - Winners do the same thing every day When you make a plan and you believe in what you are doing, you keep doing it every day, fully expecting to reach the goals you have set before you. You’re not just looking for the next “lay down” hoping that you will make a great commission; you treat each customer with the same commitment, dedication to quality, and enthusiasm. You improve your skills by educating yourself in things that work and by learning the best ways to meet and exceed the expectations of your customers. The faithfulness you show in carrying out your daily goals is the measure of your commitment to your long-term success.

Rule #4 - Winners don’t ask ‘why?’ They ask ‘Why not?’ Some people never realize their objectives because they dissect their dreams with the scalpel of doubt before ever really trying to achieve them. Risk taking is at the heart of every great success story and those afraid to take the risks will never reap the rewards. That doesn’t mean that you should just jump out there and do something because it is risky. Once you have determined in your heart and mind that you are willing to pay the price for success, step out into the unknown with confidence and don’t look back.

Rule #5 – Winners keep their eye on the goal line and not on the track If you have ever watched a horse race, you will notice that all of the horses have blinders covering their peripheral vision so they can only see straight ahead. If you want to reach the goal, you must keep looking straight ahead. You must put blinders on so you are not distracted by what is going on around you. That doesn’t mean that you ignore others and become unsociable. It just means you are focused and not willing to let what others are doing take you away from what you are trying to achieve.

”

Rule #1 - Winners never listen to those who say, ‘it cannot be done’

What we do after we arise from the disappointment is what makes all the difference.

”

Rule #6 – Winners face discouragement and keep going

The late Andrew Carnegie said winners “develop success from their failures, and discouragement and failure are two of the surest stepping stones to success.” How we deal with failure is what makes our success so sweet or our failure so lasting. Everyone faces a loss of confidence and everyone comes in second or even worse once in awhile.

Rule #7 – Winners are thankful and positive about every opportunity they get You may never get a shot at something like the Kentucky Derby or the Preakness, but every race in your life can be a great opportunity for celebration. Martin and Coburn did not win the Triple Crown they had hoped for, but they are celebrating the victories they have already experienced at the Derby and the Preakness. And I am sure they are grateful for having a chance to see their dreams come true. Whether you are just starting in this business or have been in it for a long time, learn to celebrate your wins and be grateful for every opportunity that comes your way. Take charge of your dreams and invest in yourself and what you desire to achieve. Don’t wait for luck to bring the payoff, go forward every day knowing that it may not be easy, but it will be worthwhile if you keep your eye on the goal and give it your very best. Winners win because they plan to win. They believe in themselves and in their dreams and they prove it every day by what they do. You too, will be a winner if you practice the same things in your own life and business. CBT

ETo see more from David Lewis go to CBTNews.com

David Lewis President of David Lewis & Associates Since 1986 David has been training dealers, general managers, sales managers, F&I managers and salespeople on the “Art of Inspirational Selling.” His unique ideas have helped thousands of dealerships nationwide achieve their sales and management goals. David is the author of “The secrets of Inspirational Selling,” “The Leadership Factor,” “Understanding Your Customer” and “The Common Mistakes Automobile Salespeople Make.” Visit his website at www.davidlewis.com

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ARE YOUR

LEADERS WORTH FOLLOWING Leaders err when they believe someone should follow them simply because they’re the boss or because they have a leadership title. Yes, people will comply with this sort of “I’m the boss” leadership to keep their paycheck and job, but they only commit to leaders worth following. If you are a positional leader who is hung up on a title, here is a humbling perspective: a title does not make you a leader. It simply buys you time to become one. In addition, it is a foolish notion to believe anyone has been made

Dave Anderson President of Learn to Lead

more competent by virtue of a change in title. Leadership is performance, not position _ it’s a daily choice you make, not a special place at a conference table where you sit. Don’t assume you have followers _ you may only have subordinates. How you act as a leader determines whether a subordinate converts to a follower. Remember, subordinates comply where as a follower is more likely to commit.

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 a thousand 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

There are a number of key traits that make a leader worth following. In fact, you may recognize many from what you expected from your leaders as you rose through the ranks, and still expect from them to this day. Competence Here’s a fair question: Do you know what you’re doing? Your people may like you, but if they see those who follow you closely being routinely led into minefields and blown up, they’re not likely to line up behind you for the same abuse. Strong work ethic Work ethic is more than an energy issue; it is a character issue. Work ethic goes beyond the hours you put in; it’s more accurately determined by what you put into the hours while you’re at work. Do you go the second mile daily, persist in the face of difficulties, and lead by personal example rather than by personal convenience? If so, you will inspire others to do likewise. If not, your sloth will set a sluggish pace and example for the entire team. Teachable Do you work on yourself? How many leadership books do you read each year? How many courses do you attend? Are you open to feedback, or have you assumed a “been there, done that” attitude that has turned you into a know-it-all? Suffering under a leader afflicted with “intelligence arrogance” is exhausting. While one may endure occasional arrogance from a boss, arrogant and ignorant is pushing it. Honest Do you lie? How about the little “white” lies like instructing the receptionist to tell a caller you’re not in when you are? Do your people see that you’re honest with customers and forthright in your advertising? Working for a liar is unsettling; people know if you lie to others, you’re also probably lying to them.

ETo see more from Dave Anderson go to CBTNews.com

Keeping commitments This is an integrity issue. Do you consistently do what you say you will do, when you say you will do it, and how you say you will do it? In addition, do you do so without excuse and regardless of the cost? Do you show up to work on time? Tardiness is a character flaw. It shows an unwillingness to keep the commitment to be at work at a certain time – a promise you made when you took the job. Tardiness also demonstrates an arrogant and hypocritical double standard – the same rules that apply to others don’t apply to you. It doesn’t matter how long you’ve worked at a company, or how high your position, no one “earns” the right to not keep a commitment. If this fact makes you uncomfortable, then good! Get your act together and be on time; early is even better. Acceptance of responsibility Does the buck stop with you, or when things go awry do you whip out your black belt in blame and point to other people or conditions to excuse your failures? Do you admit mistakes and share what you learned from them with your team? Little is more disheartening for a follower than to have a whiney, sniveling victim as a boss. Developer of human potential Do people grow under your leadership? Are you a consistent coach, trainer and mentor? Do you provide the tools and opportunities people need to reach their potential? Would your people say that you are more likely to stretch them or maintain them? How many of your people have been promoted in the past two, five or ten years? Leaders are in the stretching business. If you’re not consistently leaving people better than you find them you’re more babysitter than leader. Consistency Do you exhibit the seven traits listed above consistently, or only every once-in-a-while? Are you disciplined? Do you prove yourself over again each day, or only when your back is against the wall and time is running out? Even the most hapless sluggard may manage to do the right thing occasionally. However, effective leaders do the right things consistently, not just when they feel like it, or when it’s easy, cheap, popular or convenient.

There are numerous other traits that help determine whether a leader is worth following. The eight here are a good start. In fact, if your people were asked to score you from A to F in each of these categories, how would you fare? Could you be considered as a leader worth following, or simply a pretender with a title? If it’s the former, congratulations! If it’s the latter, you have work to do – starting now. CBT 8

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THE OFFICIAL NEWS SOURCE OF THE RETAIL AUTOMOTIVE INDUSTRY

A MESSAGE FROM THE CHAIRMAN

BY THE

PEOPLE, FOR THE PEOPLE

Dealers are in the sales business. We’re in the service business. We’re in the marketing business. But when all is said and done, we’re really in the people business. Where would we be without people to buy our products and services? Even more important, where would we be without our employees? I’ll tell you … out of business! So I’m happy to tell you that rising auto sales are having a positive impact on the economy, and dealers across the country are hiring. More than one million people were employed at U.S. new-car dealerships last year. It marked the first time that we reached this milestone since falling during the recession in 2009. New-car dealers employed 1,008,800 people in 2013, up 3.4 percent from the previous year, says NADA Data 2014, an annual report on dealership sales and financial trends. New-car dealers employed an average of 57 people with an average payroll of $3 million last year, up 3 percent. Total payroll for all new car dealerships in the U.S. was $53.7 billion last year.

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Franchised new-car dealerships are an economic engine on Main Street, U.S.A. And these good paying jobs cannot be outsourced or sent overseas. That’s what I call a business by the people and for the people! For a complete financial profile of U.S. new-car dealerships, download NADA Data 2014 at nada.org.

Forrest McConnell, III NADA Chairman

ETo see more from Forrest McConnell, III go to CBTNews.com

A staple of Internet marketing, landing pages drive visitors to do what you want them to do. When used in tandem with Facebook ads, Facebook landing pages give you an opportunity to create more value and carry visitors further down the sales funnel.

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WAYS

leaders CREATE THE BEST

PLACES TO WORK

Brian Tracy

Chairman and CEO of Brian Tracy International Brian Tracy International is a company specializing in the training and development of individuals and organizations. Brian’s goal is to help people achieve their personal and business goals faster and easier than they ever imagined. He has consulted for more than 1,000 companies and addressed more than five million people in five thousand talks and seminars throughout the U.S., Canada and 55 other countries worldwide. As a Keynote speaker and seminar leader, he addresses more than 250 thousand people each year. For more information on Brian Tracy programs, visit www.briantracy.com.

housands of employees were interviewed about what they considered to be the “best places to work.” The answers they had were different from what the managers expected. As a manager, are you considering what your employees want and using it to create a better work environment? By using the information provided by these employees, we can better decide how to use our leadership qualities to build employee self-esteem. This will motivate your employees to be more productive at work. As an employee, are these five ingredients of the best places to work being fulfilled in your current job?

WHAT MAKES A GREAT WORKPLACE? T

Informed

he first ingredient was a feeling of being “in the know.” A good job was defined as one where the employee felt that he or she was fully informed of what was happening in the company. The employee felt like an insider, like an important part of a larger group. Keep your employees informed of what is going on within the organization, whether it is a 10-minute meeting every day or a daily or weekly email. Employees will have more drive because they feel they are contributing something to the organization’s success as a whole. As an employee, do you feel that you are “in the know” with your company? Do you feel that it is one of the best places to work? If not, how can you become more involved in your organization? I promise that the more you know about your company, the more self-esteem and pride you will have in the work that you do for them.

Caring People

The second ingredient in a good job was a caring boss and friendly co-workers. Often, the human environment was more important than anything else. People feel the best places to work are where they get along well with everyone. The happier they felt with their work relationships, the better they worked, the lower the level of absenteeism was and the more productive they were.

ETo see more from Brian Tracy go to CBTNews.com 10

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A caring attitude is one of the great leadership qualities of a great boss. You inspire your employees’ attitudes and self-esteem. They will emulate your attitude and the way you act. If you are happy with your work, your employees will also be happy. Discover your talents as a leader by downloading my free report “Discovering Your Talents” from my website.

Challenged

The third ingredient of a good job was “challenging, interesting work.” This was work that keeps the employee busy and involved all day long. Give your employees a challenge that will keep them busy. They will respect you as a leader and have better self-esteem because they understand that you have faith in them. When employees stay involved in interesting work they will be passionate about what they are doing and enjoy their work more.

Trusting Work Environment

The fourth ingredient of a great place to work was a “high-trust” environment. This was defined as a job where a person could feel free to do his or her best and to make mistakes without being criticized or fired.

When employees felt that they were free to make mistakes with no punishment or hostility, they developed better self-esteem and pride in their work, they enjoyed their work much more, became more creative and worked more effectively with other people. Use your leadership qualities as a manager to allow employees freedom and trust them. You hired them, so trust in their abilities.

Fair Pay and Good Opportunities

The fifth ingredient for a good job turned out to be good pay and opportunities for promotion and advancement. To the surprise of many managers, the issue of pay was number five among factors that constituted a good job or one of the best places to work.

TAKE ACTION! Try using your leadership qualities to challenge and inform your employees. By creating a trusting work environment with great opportunities, you will increase your employees’ self-esteem and work ethic immediately. CBT

TAKE THE GUESSWORK OUT OF DIRECT MAIL! Do you know where your mail is going? Our real time dealer web portal keeps track of where the mail is sent and what areas respond. This allows you to send mailers to the most receptive areas and produce customers!

Take the guesswork out of Direct Mail! Our database shows exactly what is sent and the level of effectiveness and response rate for each event we do as well as each mailer you use. You can see what works best for your dealership, taking the guesswork out of direct mail!

Do you know what your Return is on your Investment (ROI)? The Wolfington Group provides results and information, in an easy to use dealer portal. You will see exactly where your money is going and how many customers and car deals it produces. You don’t have to take our word; we’ll show you the results!

Do you know of any residual benefits? After our sales event is finished, you will be able to expand your customer database. Your dealership will receive a full list of every single customer that we had any contact with including calling in, visiting the showroom and registering online. This list can include names, phone numbers, addresses, vehicle information AND EMAILS!

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To learn more, contact Molly in Account Services at

1-800-958-0595 SALES@WOLFINGTONGROUP.COM Molly Bofia

Dave LaMarre, National Vice-President of Sales and Marketing at: dlamarre@wolfingtongroup.com

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A Streamlined CRM

LEADS to Higher Profits By Randy Southerland

Building long-term relationships with customers is the goal of every dealer. Elead1One has been turning that desire into a tangible reality for more than 30 years. With corporate headquarters in Valdosta, Ga., and offices and personnel around the country, Elead1One has defined itself as one of the most trusted sources for customer relationship management software and solutions. Six of the top 10 dealer groups have chosen Elead1One to manage their day-to-day CRM operations and retail processes. Its clients range from OEMs such as Kia Motors, Hyundai Motor Co., and Ford Motor Co., of Canada to major dealer groups such as Sonic Automotive, Lithia Motors and Asbury Automotive Group. Elead1One got its start in 1985 as Fresh Beginnings, Inc., a classic cookie program providing customer-satisfaction fulfillment services to auto dealers. In those days the company delivered hand baked cookies in custom designed containers to automotive customers as one of the first survey efforts – predating many of the industry leaders in this space. “The difference was that we sent them to both sales and service customers with a handwritten card from the store that went directly to their workplace,” explained Bill Wittenmyer, partner. “When they opened it, their coworkers would often ask ‘where did you get that?’ It was really the first form of customer relationship management.” The business grew rapidly as the company evolved to meet the changing needs of auto dealers in a highly competitive economy. Two decades ago a new push began to help dealers not only survey customers, but also help them sell more vehicles and drive profits through service.

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Its first call center was manned by six people and located in space above a bank in Valdosta. “That was the first step in that transition of what we could do to help dealers make car deals,” said Wittenmyer. “That’s when we started to do follow-up and live calls. That led to appointment generation, which has grown exponentially over the years.” The call center expanded rapidly to cover nearly every aspect of automotive retail. With more than 800 live call specialists and world-class phone scripts utilized for every business opportunity, Elead1One phone agents perform more than 59 million live calls to auto customers every year. These calls include inbound sales and service appointments and overflow call handling, along with outbound campaigns for showroom, phone and internet custom followup, lead generation and appointment setting. The company handles database mining and long-term customer follow-up, as well.

says Wittenmyer. “They’re looking for one vendor that offers the best product suite, helping them streamline operations, sell more cars and achieve higher profits.” The less time that sales personnel, who are often impatient or lack attention to detail, have to spend dealing with multiple screens, the more they have to devote to their real job – talking to customers and moving them through the sales process. “It has to be streamlined and quick and have all the data and the knowledge available at your fingertips without having to go to many places to find it,” he explains. “That’s the biggest change. Dealers are much more equipped now to handle consumers. A few years ago, and certainly during my retail career, most salespeople were ill equipped to handle the customer. The customer had more

The company’s success has stemmed from its ability to persuade dealers to entrust its customer calls to a third party. “For dealers, the ringing phone is a central element to sales success, and turning those calls over to someone else can be a tough decision to make,” says Wittenmyer. The reality of auto sales is that, while showroom salespeople are great in person, they often don’t do a very good job in facilitating the process on the phone, according to Wittenmyer. The company cites data that says 80 percent of customer-todealership contact is made by phone, but only 7.8 percent lead to actual appointments. In addition, 4.2 percent of those calls go unanswered. With most car shoppers visiting an average of 1.4 showrooms before purchasing, not responding quickly and accurately means lost sales. As more dealers have realized that telephone selling is not their true strength, the company has experienced some of its largest growth in outsourcing of inbound calls. “Our dealers are really looking for a solution to take over the inbound part – the service first and then the sales calls second,” says Wittenmyer. “They are starting to realize that need.”

information at their fingertips than we did. We were unprepared, and yet we did it every day and they bought a car every three years.” Streamlining the sales process had the effect of not only making dealer employees happier, but customers as well. “We know that if the buying experience is streamlined and shortened in time, the customers will pay more money because it’s a better experience for them,” he says. Elead1One’s wide range of CRM solutions has extended into social media – one of the fastestgrowing areas of consumer engagement. In today’s market, consumers are searching for information through the web and making buying decisions based on social media. How well dealers are able to engage in this arena is vital to attracting buyers

to showrooms, but it must be done right to avoid turning customers off. “It needs to be relevant, it needs to be in real time and time-sensitive,” says Wittenmyer. “Your CRM must be dialed into your social media so that you can push messages out, whether it be a special sales promotion or an event at the dealership.” Mobile applications such as ELEAD Mobile Desking have freed customers from the limitations of desktop computing. From its beginning, the business has been family-owned, and now operates under the name Data Software Services L.L.C. Significant investment in technical development, upgrading of the contact center and expansion of the account-management teams has helped mold the substantial operation that exists presently. Today there are more than one hundred toplevel programmers working in its Florida office on developing and expanding its CRM and mobile tools. B e i n g independently owned is an asset for clients. It means decisions can be made faster and with fewer layers of bureaucracy. “Our dealers can literally get one of the owners on the phone,” according to Wittenmyer. Elead1One’s success can be measured in its expanding client list that includes the leading dealers and OEMs in the country. It’s evident in its changing product menu and a workforce that has grown to more than a thousand people across the country. “You have to be at the top of your game and constantly evolving,” said Wittenmyer. “You have to be competitive, but that doesn’t just mean being price-competitive. You have to be valuecompetitive. You have to be able to bring true value to the table. Dealers recognize that; they will pay more, just as their consumers will, as long as they’re getting the support and results they need. That’s the most important thing.” CBT

The company’s success is also based on its ability to listen and respond to dealers’ perceptions of their own needs. The desire for accessible and actionable reporting of data led directly to Elead1One’s development of its CRM software solution. Dealers not only wanted to be able to enter customer data into the system, but they also wanted to be able to see results in real time. “They want a one-source solution – one that can handle all of their needs without having to log into multiple systems or use multiple tools,”

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5 Ways

to Know if Your Social Media

Marketing Methods are

FAILING

ocial media is the go-to place where consumers get information and advice when it’s time to make a purchase. A recent Arthur D. Little study found that nearly 70 percent of surveyed customers spend more time online than offline for prepurchase information gathering, with a relevant number researching online only. Are your social media marketing methods positioned

1. The Louder You Speak, the Less You’re Heard I recently wrote about a client who decided to go with a “social media provider” because it was free. It’s been a few weeks now and their Facebook page has taken a hit, not only in growth of their page, but also engagement, reach, leads and sales. This provider basically turned the page into an Infiniti commercial. Over and over, they’re blasting out the “benefits” of their product. Now, Infiniti commercials have their place but it’s certainly not on your Facebook page two to three times per day. Two things happen when you blast messages about your products and services: People unfollow you. They simply don’t engage with content that’s solely about products and nothing about answering their questions or acquainting them with the reasons why people buy from you. Your content looks exactly like everyone else’s, thereby making you boring and forgettable. 2. You Speak Too Softly Content marketing is about getting the right message to the right customer at the right time. Marketing on each social platform where your customers are requires careful analysis to identify what to post and how often. Facebook has recently changed its algorithms, and posting relevant, useful content more often (say four to five times per day) is now suggested. To create a presence on Twitter you need to tweet at least six times per day. If you’re blogging, post at least twice per week. 3. You’re Getting ‘Results’ but You’re Not Sure What That Means Without clear objectives and goals in your social media marketing methods, you’ll have nothing with which to tie your result. I see many, many dealers feel successful because their Facebook page has a few hundred or a few thousand likes. Likes are only the first step of your overall social media marketing strategy. Engagement, reach, leads, customers and sales are metrics you must set goals around and measure to know for sure what your results mean and to determine what your next steps are. 14

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to capture those leads and sales? By now, your dealership may be using social media to connect with consumers to develop relationships prior to the sale. You also may be having second thoughts about how you’re going about it. It’s difficult to get trustworthy information, especially from vendors who sound like they know what success is. They’ll tell you how their product or service fixes all

your problems, but how do you really know if that’s true?

The best place to start is by taking a hard look at what you’re doing right now and see how it measures up to the proven social media marketing methods that successful companies employ. Check out these five ways to tell if your social media marketing methods are failing:

4. You’re Unable to Identify and Define Your Ideal Customer In the old days of networking, they used to say, “If you think your customer is everyone, think again.” It may seem strange but there are people out there who will never buy your products and services. Some will, some won’t, so what. Whether you’re a salesperson using social selling techniques or a dealer doing social marketing, it’s important to know who your ideal customer is so you can take advantage of social media’s targeting methods. Designing a winning content strategy to attract new customers or to engage your repeat customers enables you to provide value to the relationship. Figure out what questions your ideal customers have and be as helpful as you can with the content you publish. 5. You’ve Got a Rookie in the Starting Position Nearly every week, I hear from two or three people who’ve been given the title of “social media director” at the dealership when they’ve had no experience either in the industry or as a marketing professional. Sometimes it’s both. Would you put a green pea salesperson on the floor with no training or guidance? Would you trust your brand to someone who has no idea how to develop a solid marketing plan or execute it? For the love of Pete, please don’t leave your reputation up to a rookie. It’s OK to give someone you think deserves it a chance but please get them some one-on-one coaching. The money you spend today will pay large dividends in a few short months when you have a full-fledged social marketer in your organization. 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.

JOE VERDE

The #1 Training Company In The Car Business Need To Sell 20 More Units This Month? Gain momentum and beat the competition! #1) How’d you like to sell 2 more units for every 10 write ups you didn’t close? Then hold those Make A Deal Meetings every morning that we talked about awhile ago. Look over every deal that was worked yesterday but not delivered. Don’t say, “We tried everything we could,” because you’ll be amazed at how many ideas you can come up with when all of your managers as a group take a fresh look at those write ups. The results you can expect: In our dealer/ manager workshops, managers say they find a way to deliver 2 out of every 10 they didn’t close the day before. #2) When you work a deal that you don’t make and you’re ready to let the customer go – instead of having the salesperson give them back their keys, have a manager do it. With a smile on your face and no paperwork in your hand, give them their keys and say, “Hi folks – I’m the guy who’s been scribbling those numbers back and forth – I’m sorry we couldn’t get together”... visit a minute and then ask... “If there was one thing that kept you from getting this car right now, what would that be?” Then close the sale on that one thing. The results: 2 more sales for every 10 that you personally get involved in.

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DO YOU make these

MISTAKES on your

WEBSITE?

ave you taken the time to really evaluate your website? Have you really gone through every page and clicked on every link to see what happens or what does not happen? When was the last time you filled in every form to verify that the leads actually made it to your CRM? When was the last time you called all the phone numbers to ensure that they worked? When was the last time you did this same process on your mobile website? This process could make all the difference to your lead volume. The following best practices will not only increase your leads, but will also increase the time on site and decrease your bounce rate.

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Paul Potratz COO of Potratz

Paul and his team specialize in all aspects of internet marketing. He has been featured in The New York Times, The Wall Street Journal, the New York Post and on CBS. Paul has also been a featured speaker for NADA, Driving Sales, Auto Dealer People, Dealer Elite and Automotive Digital Marketing. Visit his website at www. exclusivelyautomotive.com

Party at the Water Park

If You Ask, You Will Receive

The Magic Number is 31

The first step is to ensure that absolutely no links on your website take the car shopper away from your site. The biggest mistakes I see on dealers’ websites are social media links or review site links that take the visitor away from the site. Social media is supposed to drive traffic to your website, not remove them from areas where they can convert. Your website is no different from your brick and mortar showroom. If a car shopper drove on the lot to shop for a car would you say, “Before you start shopping, would you like to board the bus around the corner? We are taking you to the water park to hang out with friends.” If your intention is to create a customer, you should try to keep them on the lot. The bottom line is: Don’t allow your website to offer distractions via unnecessary links.

This one is the easiest, but has to be the biggest tip missed: utilize calls to action. When looking at several vehicle detail pages (VDP), I often find there are too few calls to action. What would be the “word tracks” or “next steps” you would take with a customer if they were sitting in front of you in the showroom? These same word tracks or next steps should be on the VDP. If a shopper were in the showroom, you would move the shopper to appraise the vehicle, work out a payment, run the credit report and finally make an offer. Why not mirror these steps on your VDPs? I have heard several times that having these calls to action can make a VDP appear too busy, but the benefits outweigh aesthetics. Provide them with the tools they need and you’ll generate leads.

Study Shows 1 out of 5 Chances

Victoria’s Secret is on to Something

If a picture is worth a thousand words, imagine what a real video could do for you. I can’t begin to express how beneficial walk-around videos are for time on site and conversion. A vehicle walk around does not need a salesperson in the video nor do you want one in the video. The star of the video is the vehicle with a product specialist behind the camera doing a quality product review. The video does not have to be a Hollywood production. You can do it on a mobile phone and, as long as the audio is good, it will work. The video should be a minimum of 10 minutes long. I know you are thinking that 10 minutes seems too long, but I can assure you that it helps sell vehicles. If you doubt me then go to YouTube and search for the vehicles you sell. You will see hundreds of thousands of views and the longer the video, the more views. Google recently released a study that stated the top brands on YouTube uploaded an average of 31 videos per month. How many do you have? Spend some time building your video library and share this content with your website visitors. The more content, the more opportunities to create a quality lead.

This next tactic has stirred controversy with others in the industry and goes against common thought, especially of those who have not used A/B and multivariate testing. What is it? Remove the phone number and address from the home page top corner and place it under the “contact us” and/or the “about us” tab. This practice allows a digital marketing firm the ability to place “why buy from me” message retargeting code to car shoppers who will visit five dealers’ websites, but only show up to one. This practice will increase your odds due to brand exposure. It also helps decrease bounce rate by forcing visitors to click for information, and increase quality score and SEO value.

The clothing retail industry has trained the shopper to look for the bargains. Many shoppers go directly to the sales racks, and this is what happens on your site, as well. The only problem is most websites do not keep this page merchandised. In today’s world, e-commerce merchandising is critical. Not only should you merchandise new and used vehicles, but you should also promote service, parts, accessories and F&I products. It costs you nothing to do this. By showing the deals that you are offering for all sale categories, you increase your sales opportunities across the board.

What a Wise Man Once Said The final tactic is simply to keep repeating the steps above: make your plan, work your plan. This is not a “set it and forget it” strategy. It will require you to actively adjust and improve your website, but the more you put into it, the more success you will have. CBT

ETo see more from Paul Potratz go to CBTNews.com July

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TIPS

for selecting

the BEST

F&I performers

Kirk Manzo

President of the Manzo Group As a nationally-recognized speaker and professional trainer, Kirk has conducted hundreds of in-dealership programs nationwide and was a featured speaker at the 2008 NADA Annual Convention in San Francisco. As a certified member of the John Maxwell Team, Kirk facilitates mastermind groups, in-dealership workshops and coaching services based on Maxwell’s strategies on leadership and communications. www.manzogroup.com

When the game is on the line, who must execute the play?

he coach (dealer/general manager) or the player (F&I manager)? We all know the player is the one who must execute. Sure, the coach designs the play and sets up the strategy, but in the end, the player must be able to deliver the results. Therefore, hiring the best F&I employees for your team is crucial.

Tell me about a time when your dealer or general manager implemented a change in procedure with which you did not agree. What was that change in policy? Why did you not agree? Tell me more about that.

ow many times have your eyes, and possibly your ears, deceived you when selecting someone new for your store? Did the picture painted during the interview match the performance you received? A common error that occurs when selecting a new team member is to rely too much on just “gut feelings.” By the way, how has that worked out?

There is however, a principle you can apply that will help improve the likelihood that you select a high-performing player.

“It begins with an understanding that recent past behavior is a good indicator of future behavior.” Many candidates you interview for positions in F&I present themselves in the most favorable of lights – touting all of their abilities at length and selling you on what a great job they will do for you in the future. The scenario sounds rather appealing. In order for you to identify the best people, however, focus your attention and questions not on their future performance but instead on their past behavior. Ask candidates about their relationship with the GM and dealer at their last store. Some examples are:

ETo see more from Kirk Manzo go to CBTNews.com 18

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How did you communicate your concerns? How were those concerns received? How did you feel about that? What changes did you need to make to implement this new procedure? What was the final outcome? What did you learn as a result? Knowing what you now know, how would you have handled the situation differently? The above questions, while on the surface may appear to look like an interrogation. They are, in fact, merely designed to uncover very specific details about past behavior. The key is to not allow the candidate to “ramble on” about sweeping generalities, but rather to keep focused on recounting specific details of exactly what occurred. This same approach would apply to the handling of past customers who were particularly difficult. Asking questions related to interactions with vendor and suppliers, sales management, salespeople and, of course, banking and lender personnel provide the insight necessary to select the best candidate. Since each of us may exhibit some unintended form of bias, make certain that at least one or two other managers interview the candidates, as well. There is value in some divergence of viewpoint. Besides, if everyone at your dealership were exactly like you, would that truly represent the best allaround team?

Test candidates for ability Interviewing is one tool for evaluating talent. Testing provides another. Many companies, such as Art Niemann & Co., Predictive Index and Omnia Group, provide simple, costeffective options to test and evaluate candidates via online solutions.

The modest amount of time, effort and money required is well worth the small investment. Another element to consider when selecting the best candidates for your F&I department is to examine the position’s current job description. When was the last time it was updated? Does it include specific guidelines on getting involved early in the sales process versus waiting for the deals to come to them? Does it address the importance of locking the office upon leaving even if just to use the restroom or visit the sales tower? Does it specify performance targets such as penetrations by product, like vehicle service contracts, and not just per vehicle retailed? Are there penalties for having an excessively high number of days for contracts in transit? The other variable to update in the quest to attract and select the best players relates to your current compensation strategy. Does the job description correlate 100 percent to the compensation? It is often said that if you want to fully understand a job description, simply look at the pay plan. There is real truth to that statement. So how aligned is your current F&I pay plan with your current job descriptions? With a reasonable amount of effort, you can implement the above strategies. While defining sales and F&I processes impacts the store’s success, in the end it will be the people you select who will ultimately determine your store’s future. CBT

Connect with Qualified Car-Buyers in Your Market Today’s car-buyers are utilizing channels like online, email, direct mail and mobile to research their vehicle purchases. This means that dealers must keep up by developing integrated marketing strategies that reach consumers across multiple channels. Force Marketing is the leader at developing multi-channel marketing strategies that are proven to help dealers succeed.

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Car Buyers Mailed: 10,000 | Car Buyers Emailed: 7,000 Digital Lead Submissions: 23.6% | Click-Through-Rate: 12.86% Vehicles Sold from Campaign: 52 | Cost Per Unit Sold: $394 Want to hear more from the Owner at AutoCenters Nissan about this campaign? Force Marketing can give you a reference sheet – Call today 866-297-9514!

Call and speak to a regional marketing consultant today.

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July

Check out the Force Marketing YouTube channel for marketing tips: YouTube.com/ForceFeedTV

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Driven to SUCCEED B

ecause buying a car can be an emotional experience for consumers, many dealers are incorporating extra amenities to make their customers’ experience that much better. The new Brickell Motors’ dealerships – Audi Stuart and Infiniti Stuart – in Stuart, Fla., are a good example. “Our business is about making people happy. Our business is about joy,” said Mario Murgado dealer principal of the Miami-based company. “Buying a car is an emotional experience and it involves all the senses, at least I believe that, which is why I have a café in all of our dealerships, as it is equally important to nourish our customers and offer them hospitality and a great cup of coffee!”

20 Murgado CBTNews.com Mario President and CEO of Brickell Motors

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= And if the customer starts to waver in the deal, there’s always the golf putting green to ease the stress. “I believe that we tend to complicate things in this already-complicated and fast-paced world. It is important to me, that when purchasing an automobile it should be all about the experience and the exceptional moment for a customer to enjoy and start a relationship with you and your dealership. I had the opportunity to build these dealerships from scratch, thus allowing myself the possibilities to think out of the box and to add the diversion, fun and relaxation equation into the carbuying experience. Besides, I love golf!” he said. In addition to the Stuart stores, Murgado and his partners, Alex Andreus and Rick Barraza operate three rooftops in Miami – Brickell Buick and GMC, Brickell Honda and Brickell Luxury Motors. Murgado’s enthusiasm for the auto business is evident in his voice. “I love cars,” he said laughing. “I mean, I get so excited about it. It’s something I’ve always had a passion for.” Like many Cuban immigrants from the 1960s Freedom Flights, Murgado came to this country with only his father’s dream of a better life. Just five days short of his fourth birthday, the young Murgado was separated from his parents and sister and put on an airplane to Miami where he was placed in foster care until his family was expected to join him in the U.S. “I remember that day vividly like it was yesterday,” he said. “My father was so adamant about [leaving Cuba.]” Within hours of arriving at the airport and learning his family could not join him, Murgado landed on U.S. soil to begin a new life. His mother and sister arrived a few weeks later, but his father was unable to get out of Cuba for another nine months. Understanding Murgado’s background is key to understanding his drive to succeed in business. “My father always taught me to be grateful for this country and love this country because of how it opened its doors to us immigrants.” From a very young age, Murgado was encouraged by his father to be a good student and never take for granted opportunities available to him. “Education is the greatest gift you can give yourself,” he said. “No one can ever take that away from you.” Shoveling snow and cutting lawns in the Chicago suburb of Carpentersville gave Murgado his first taste of entrepreneurialism. Those jobs are also where he first learned the value of providing excellent customer service. His clients were willing to pay more for his services because they were assured their driveways would be shoveled by 6

Rick Barraza, Mario Murgado, and Alex Andreas

a.m. before they had to leave for work. A couple of back-to-back blizzards in 1978 were reason enough for the family to pack up and move to Miami. In 1981, Murgado landed his first sales job in retail automotive while attending college full time. At the time, Miami Dade College offered 6 a.m. classes, which allowed him to work in the afternoons at Braman Motors. By age 31, he became president of Braman Imports and eventually became one of Norman Braman’s first managing partners. “I loved that business and I am forever grateful to Mr. Braman. He gave me an opportunity. He believed in me before anybody else did.” That entrepreneurial spirit pushed Murgado to open his own stores in 2001. With Andreus and Barraza, Murgado acquired Brickell Motors in Miami. The partners’ relationship goes back to the Braman days, so when Murgado was looking to buy a dealership, he immediately thought of them. The three share camaraderie with – and faith and trust in – each other that carried them through the economic turmoil in 2009. “It was a time of grave concern,” he recalled. “GM decided to do away with the Pontiac franchise which was one of our franchises, so we went from four franchises to three. There was obviously loss of revenue and profit for us; however, my partners and I took it as an opportunity to look outside the box. While everyone was moaning, we were looking to gain market share and looked to internet marketing, developing a digital footprint and opening a business development center, and it served us well. So rather than looking at the obstacles I look at the opportunity and find a way around it or through it. How we face challenges and setback is what separates the character and spirit of an organization. There is tremendous strength in a team that has the right attitude and focus.”

The teamwork and camaraderie the partners share trickle down to the whole Brickell staff, according to Murgado. “I think one of the strongest elements that we have here is there’s a sense of ownership. We want you to think about how you want to grow and we want you to think that this could be your own business. If you’re a sales associate and you say to yourself, ‘This is my business and I can grow it and I can develop and I can do very well,’ that brings a very different person to us. That person has a different spirit, a different outlook a different attitude and a different desire to persevere.” In addition to setting goals for the dealership, the partners break them down by individual departments, and then break them down further by individuals so they can see how important their roles are to the success of the organization. “Management is all about responsibility. We have a responsibility to each and every one of those employees. We took them on. We hired them, so it’s our responsibility to be sure they are successful,” said Murgado. Continual education and training are part of that process, explained Murgado. “When [customers] come in here, they’re looking for someone who can answer their questions, who can be responsive, authentic and, more importantly, make them happy about what they are going to buy. Like in the movie ‘Field of Dreams,’ we believe if we spread enough joy in our business, people will come, employees will be here and we’ll be successful. “The automotive business is still a great business and I think it is the heart and bedrock for our country. We have to love it and take care of it.” CBT

July

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stop the

Argument

BEFORE IT STARTS How service appointments and reservations can destroy customer retention, survey scores and upsells

n my workshops, I always like to have plenty of Q-and-A time so that I can address the real concerns that keep service advisors performing at their highest level. One concern that never fails to be mentioned revolves around the issue of service appointments and reservations. Typically, when your business development center (BDC) or your service advisor sets your customers up with appointments or reservations, the customers assume it means the same thing as it does at a restaurant: When they arrive at the given time, their seat will be ready with no waiting. And just as when they make airline reservations, they expect to be on the plane backing up from the gate at that reserved or appointed time. When you set up reservations or appointments for your customers, they have been trained by business in general to believe that the work will begin at the appointment time. No matter how many times or how well you try to explain to your customers what is really going to happen upon arrival, the mere usage of the words “reservation” or “appointment” reinforce their belief that the work will begin at the exact time of the reservation. This is a serious problem. According to what I hear from your service advisors, and based on what we witness when providing training on your service drive, three-fourths of the customers your service staff work with every day have this misunderstanding at the initial write up. As your service advisors try to explain that the time set for the appointment was for the purpose of gathering information, the exchange with the customer quickly turns into an argument. Therefore, the write up and the relationship begin with an argument. An argument that your staff can’t win; an argument that takes about six minutes to resolve; an argument that only gets customers thinking that what they were told was just a ploy to get them in; and an argument that sets the mindset that you don’t do what you promise. Anytime you start a relationship like

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

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The simple and easy solution to stopping this and turning it around is as simple as implementing the following

two steps. this, you put yourself at a big disadvantage toward accomplishing the goals of customer retention, high survey scores and the chance to acquire any necessary up sells. Lose the Reservation In service, never use the words appointment or reservation again. Not verbally. Not on signs. Not in print. Not online. Not anywhere. Appointment and reservation times imply an exact time that an event is going to begin. “Check-in time,” on the other hand, implies that waiting will be involved. For instance, when you go to the airport you are encouraged to arrive two hours prior to check-in. Once you check-in, the next step is to wait for the reservation time when you will board the plane and take off. From now on, you are going to start scheduling check-in times for your service customers so that after they check in, they will wait for the appointed time set by the service advisor after they have had a chance to talk with the customer in person about their needs. In the customer’s mind, appointment and reservation times indicate that the event will commence at that specific time. Check-in time however, precedes an appointment time. In the customer’s mind, check-in time refers to a preliminary period designated for the collection of information. After the information is given, an exact time for work to begin can be determined. Check-in time and its implications are familiar to customers.

Explain Yourself Now that we have replaced the words “appointment” and “reservation” with check-in time, the following word tracks are how you are going to explain check-in times and stop the arguments forever. The first word track is delivered by your BDC or by the person scheduling the check in time.

“Mr. Customer, now that we have established your check-in time for 9 a.m. tomorrow, allow me to take a minute to explain to you what that means and what will happen once you arrive.

First, you will want to arrive as close to your check-in time as possible. Getting here early means you will have to wait and getting here late could result in you loosing your place in line. Once you do arrive, your factory-trained service advisor will be ready with all of the information you just gave me. During the first part of the check-in process, they will go over all of this information to ensure that I wrote everything down correctly, to make sure they understand what your concerns are, and to see if anything needs to be added to your list.

2 3

The second step in the check-in process is when you and your factorytrained service advisor will walk around your vehicle to collect numbers off your vehicle and do a quick visual inspection.

The third part of the check-in process is when it will be determined which department and which factory-trained technician will be the one bestsuited to diagnose and repair your vehicle. That decision will be based on what you and your factory-trained service advisor discussed and saw during the earlier part of the check-in process. Once that is determined we will then look at the schedule for that department and factory-trained technician and that will determine approximately when your vehicle will enter our stateof-the-art shop.” By using this one minute long word track, I have fully explained exactly what to expect upon arrival, exactly what happens if the customer is early or late, and exactly what will happen and why. I have explained that the check-in time does not mean reservation or appointment. I have explained and prepared the customer to wait. Once the customer arrives prepared, the service advisor has two word tracks to deliver: “Mr. Customer, thank you for arriving on time to get your vehicle checked in. Now that you are here let me explain to you what we will be doing to get your vehicle checked in. First, I will be going over all of the information you gave us on the telephone to ensure that it was written down correctly, to ensure that I understand your concerns, and to add anything that needs to be added. Once that is done, we will both walk around your vehicle to collect some numbers off of it and to do a quick visual inspection. Based on what we discuss and what we see during the visual inspection, we will select the department and or factory-trained technician that will be best-suited to address your concerns today. Once that is determined, we will take a look at their schedule which will dictate approximately when your vehicle will enter our state-of-the-art service department.”

Once all the steps of the check in are completed, the service advisor will follow up with the final check-in time word track: “Mr. Customer, now that we have reviewed all of your original concerns and done our visual inspection, I believe the department/factory-trained technician that would be best to diagnose and repair your vehicle would be ____. Right now they are working on another customer’s vehicle, so it is likely your vehicle will be entering our state-ofthe-art facility at approximately _____. Let’s give them about one hour to an hour and a half to complete your diagnosis, meaning you can expect a telephone call from me between ____ and ____ with an update on the status and findings regarding your vehicle. Fair enough?”

By using these two word tracks, which combined take one minute to deliver, you have done the following: 1. You have started the relationship on an up note and not with an argument.

2. You have done everything to the letter that your BDC told them you were going to do.

3. You have established the reality that when you say something is going to happen, it is going to happen. They can count on you. 4. You have saved about four minutes at the write-up by being in control of your customer and the write-up itself.

5. You have slowed the customer down giving yourself more time to build rapport and inspect the vehicle, which will substantially impact customer retention, survey scores and your ability to get necessary upsells.

6. The customer has been educated that speed is not the most important thing in getting their vehicle repaired.

IT’S REALLY THAT EASY By changing your verbiage from appointment or reservation to check-in time and by delivering these three simple word tracks, you will experience immediate impact and the arguing will end forever. I have always felt the best way to win an argument is to eliminate all possibility of an argument arising. You can always tell great service advisors by the number of scars they have on their tongues from years of biting back argumentative words. The solution I have presented here will do two things: stop the arguments before they start and save your service advisors from acquiring unnecessary scars. CBT

ETo see more from Jeff Cowan go to CBTNews.com

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IS YOUR DEALERSHIP WE

READY FOR BUS Your dealership’s mobile site might not be performing as well as you think it is

Until recently, most major dealership website companies provided a multi-URL solution – they would give dealers a desktop site and then a stand-alone mobile website. Website providers are finally catching up to the mobile explosion. Instead of the multi-URL solution, they are delivering adaptive (also referred to as “seamless” by some providers in the space) and responsive website platforms. It’s great that the market has matured so dealers have better mobile options than they’ve had in the past, but these options have also led to some confusion. There is a lack of education about the benefits, drawbacks and actual results delivered by the three different available solutions.

ost car dealers know that mobile is becoming the largest source of traffic for their dealership’s site. Most dealers think that they have a responsive website – the kind that Google endorses as the optimal mobile solution. But almost all of them are completely wrong. Of the three primary mobile platforms – multi-URL, adaptive and responsive – very few dealers have a responsive website. And most still have a multi-URL solution. (See chart)

5% 20%

75%

Responsive

Adaptive

Multi-URL

For car dealers, their website is by far their most important digital asset – virtually every consumer visits a dealer’s site before setting foot in the showroom. When you combine the importance of a dealer’s website with the explosive growth in mobile market share, it’s obvious that dealers’ websites must deliver a great mobile experience if they don’t want to get left behind. The average dealer spends nearly $500,000 each year trying to target local, in-market consumers. If you’ve spent all that money to get an in-market consumer onto your website, and they get a poor mobile shopping experience, think of the money you’ve wasted.

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MULTI-URL SITES VS. ADAPTIVE VS. RESPONSIVE DESIGN A multi-URL (or parallel mobile) website solution means that for every page of content on your website, for example “www.dealerwebsite.com,” there is a separate URL – such as “mobi.dealerwebsite.com,” “iphone.dealerwebsite.com” or “dealerwebsite.com/mobi/” – that provides the same content, but optimized for a mobile phone or mobile device. An adaptive design platform is similar in that it has a mobile version of your home page as well, but usually serves that content on the same URL. Both multi-URL and adaptive solutions depend on something called “user-agent detection.” This is website code that attempts to determine what kind of device (IPhone, Galaxy, Blackberry, Droid, Kindle, IPad, tablet, laptop, desktop, etc.) the visitor is using and then serve the desktop or mobile version of the site. Responsive websites do not rely on user-agent detection; they serve content that is already pre-optimized for each device based on its actual size, so the device simply displays the optimal version. If you’re not sure which of these three solutions you currently have, it’s fairly easy to check. Go to your site on a desktop browser, then go on a phone. If the homepage has a different URL for the phone, it’s probably the multi-URL/parallel mobile solution. If you get the same URL for both, you need to determine if it’s adaptive or responsive. On your desktop computer go to your site and slowly shrink your browser. If the layout and display of the site changes as you shrink the browser, the website is probably responsive, otherwise, it’s adaptive.

WHY GOOGLE RECOMMENDS RESPONSIVE OVER ADAPTIVE OR MULTI-URL It is very rare for Google to specifically endorse any particular technology, but Google makes a compelling case for responsive design. Most traditional dealership websites use the multi-URL approach, providing both desktop (dealerwebsite.com) and mobile (iphone.dealerwebsite.com) URLs for the same page of content.

EBSITE

SINE$$?

For each page on these sites, the SEO and inbound link equity are split between multiple URLs — which can negatively impact organic search traffic. One reason that Google prefers responsive design is that a single URL helps Google’s algorithm. When all the website content is stored on one set of URLs, it’s much easier for Google to index properly. If your site has a mobile and desktop version of your homepage, served on different URLs, Google may think it’s actually two different pages, both providing the same (or as Google says “duplicate”) content. A couple of years ago, Google provided very strict documentation for how website vendors who do not use responsive design should indicate to Google that both URLs are actually one piece of content. But even now, more than two years later, most website vendors don’t follow Google’s clearly defined annotations for desktop and mobile URLs. This can lead to duplicate content issues for each version of the page. Responsive sites, everything else being equal, generally have faster load times, because unlike multi-URL or adaptive websites they don’t require redirects that tell the browser how to display the site. Faster load times improve SEO – Google has specifically cited load time as a factor in its algorithm.

BETTER USER EXPERIENCE AND CONVERSION Multi-URL and adaptive websites rely on “user-agent detection” to determine which version of the website to display. Three of Google’s stated reasons that useragent detection can negatively impact conversion and user experience are:

It is dependent on the website provider to constantly update and optimize its site’s user-agent table.

User-agent mismatches – according to Google, a common mistake for sites is to inadvertently treat tablet devices as smartphones.

Load times are generally slower than responsive websites, due to redirects from user-agent detection. As a dealer, you are relying on your website provider to maintain an updated and optimized user-agent list, keeping track of all the new phones, tablets, phablets, wearables, etc., that are being released. Again, most providers in our space aren’t even keeping up with Google’s direction from two years ago.

TOTAL COST OF OWNERSHIP Multi-URL dealer websites have desktop, mobile, and in the best cases, tablet-optimized versions. That means that for every page that you – or your digital agency, or SEO vendor or content writer – create on your website, you have to create two or three versions just to have an optimal version of that content for desktop, mobile and tablet consumers. When you update a page, hire a new vendor or add a new PPC campaign, you need to do two or three times the work to update your site if you have a multi-URL solution.

MARKET EVOLUTION Currently there are principally four main device sizes (desktop, laptop, tablet and phone) but the market continues to change at an increasingly rapid rate. The 5.5” and 5.9” LG phones were just released in May. The IPhone 6 is expected to include an even larger screen than the IPhone 5, so that Apple can compete with other larger phones like the HTC M8, Sony Xperia Z and the Samsung Galaxy S5. Responsive design is the only solution that is already optimized for whatever consumer trends win out in the future. Right now, the typical dealer in one month gets traffic from over 500 unique screen resolutions. That number will continue to skyrocket for the foreseeable future. At the end of the day, every dealer should be moving to a responsive site, just as Google has recommended. The benefits are too powerful to overlook: 1 2 # 3 # 4 #

More Traffic More Calls/Leads Easier to Manage Less Headache

Mobile traffic will become an even bigger portion of your dealership’s website traffic. Every month that your mobile solution is subpar, you are costing your dealership traffic, leads and sales. To ensure your dealership is ready for the mobile revolution, make sure you begin your transition to some responsive website this year. CBT

Ali Amirrezvani President, CEO and Co-founder of DealerOn, Inc. Ali has spent the last 10 years helping his customers dramatically increase their sales and profitability from their websites and online marketing efforts. Ali is a renowned automotive online marketing guru and a noted author, writing on best practices and trends in automotive digital marketing. He speaks frequently at national automotive conferences, 20 groups, and manufacturersponsored training events. He is an avid blogger and online contributor, evangelizing digital best practices on every major industry forum. Visit the website at DealerOn.com.

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FIVE STEPS

TO SETTING L

et’s say your dealership’s goal is to increase sales 30 units per month and raise the gross by $600 per unit in 12 months. The easy math: you want to improve your current average by 2.5 units and your current average gross $50 per month.

TO HIT YOUR GOALS, JUST FOLLOW THESE FIVE STEPS:

REAC

SALES

EVALUATE EACH SALESPERSON'S SKILLS

To improve total production, you have to improve each salesperson’s production. The rating scale below can be used as an example of how to identify each person’s strengths and those areas that need improvement.

Look at each individual salesperson

First, you need the right team, so drop your dead weight fast. People who can’t, won’t or who refuse 01 to do their job will keep you from reaching any goal. (Read chapter 30 in my book “A Dealer’s Guide to Recovery & Growth.”) Next, track everything each salesperson is doing, so you know what is going on right now. (See chapter 9 in my book “Get Everything You Want in Sales - Goal Setting for Salespeople.”) You need current averages for each person’s total opportunities (calls, leads and floor traffic), their total activities (demos, write ups, prospecting and follow up) and their real production (units and gross).

TIP: If two salespeople are on a deal, some dealerships give the

full unit count to the one who closed it. That means a six-car guy who closed 12 deals hits the board as a 12-car guy and beats the salesperson who actually sold 10 on his own for the top salesperson award. When counting deals, if two people are involved, there are two halves.

TIP: Do not give a unit count for those nothing-to-do house

deals. Doing the paperwork and delivering a truck to your cousin is not the same as selling a vehicle, so stop pretending it is. Give them the money, but not the unit count. It messes up your averages, which means your goals won’t be effective.

Joe Verde

President of Joe Verde Sales & Management Training Inc. Joe has been in the car business since 1973. He has been the “eight-car guy” and the 38-car sales professional, a manager and dealer principal. His company was founded in 1985, and under his leadership, was rated the number-one training company again this year. Joe is a frequent speaker at NADA conventions and is in constant demand to speak around the world to automotive groups. The books mentioned in this article are free and available at JoeVerde.com/store. Joe can be reached at jverde@joeverde.

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RATE EACH PERSON FROM 1 TO 10 IN EACH SKILL: 1. ____ Organization Skills and Time Management 2. ____ Tracking Skills (Accurate / Consistent) 3. ____ Goal-Setting Skills / Goal-Achievement Record

BASIC SALES TIPS: 4. ____ First Impression 5. ____ Professional Greeting 6. ____ Rapport Building 7. ____ Investigation of Wants and Needs 8. ____ Feature, Advantage and Benefit Presentation 9. ____ Proper Demonstration 10. ___ Closing Skills 11. ___ Objection Skills 12. ___ Follow Up Skills 13. ___ Prospecting Skills 14. ___ Phone / Internet Skills 15. ___ Negotiation Skills TIP: Ten units is average, so six-, or eight-car salespersons can’t get 10s. To grow, drop the highballs and rate them honestly. TIP: There are no points on ratings for how hard they try or how nice they are. If you collect enough nice people who try hard and cannot sell – not only will you miss hitting any worthwhile goals you set, you can put the dealership out of business fast in any market.

right team, so drop " First, youyourneeddeadtheweight fast. "

CHING

S GOALS

WRITE A PLAN FOR EACH PERSON

Twelve salespeople aren’t a team; they’re just 12 people with 12 personalities and with totally different skill levels in the 20-plus key skills it takes to succeed in sales. Your goal as a manager is to turn those 12 people into an effective selling team. To do that, you’ll have to ditch the feeling, “I’m a manager, not a babysitter,” that some managers have and get as involved with your salespeople as your favorite coach does with players. Now as their coach and personal trainer, it’s time to sit down with each individual and come up with a game plan on what they need to improve. Create a daily plan on how you’re going to help them make those improvements. This is the critical one-on-one coaching and managing that nobody taught us how to do.

TEACH EACH SALESPERSON HOW TO IMPROVE

After you’ve found their strengths and weaknesses and developed a plan – the next logical step is to teach them how to improve. There are two “catches” with training salespeople to sell. First, you have to develop the skill you want to teach them. For example, if you don’t know how to follow up, how can you teach your salesperson how to follow up? That’s no different than a teacher who can’t do math trying to hold a class on multiplying fractions. Second, you have to become a good teacher. We’ve all had brilliant teachers who knew their subject but couldn’t make students understand the subject. Since most goals are about selling more, you have to learn to sell, teach, coach and manage to hit your goals. Learning to “sell” with them develops teamwork fast.

MANAGE ACTIVITIES AND ACHIEVEMENTS

To hit results goals – three more units and $600 more gross – you have to learn how to set and manage activity goals. “Go sell more!” isn’t the strategy or support salespeople need from you to produce more. To sell more units, they need more traffic – that means they need to make prospecting calls (activities). To raise the gross, they need to build more value – that means more demos and better presentations (activities). To deliver more deals, you need to see more write ups (activities). You really can’t manage sales or profit, but you can easily learn to manage their activities that generate more sales and profit.

Goal setting, your planning and your daily activity management is a very straightforward step-by-step process. Just set clear and realistic goals, know every person’s strengths and easy areas to improve, create effective plans, teach them what they need to know, and then just manage your salespeople’s related activities. If you will, there is a 94-percent chance you’ll reach every goal you set. Just don’t mess it up by trying to force, grind or push people. Slow down. Become a great sales coach and you will win the game every year.

BELIEVE IT. YOU CAN DO THIS! ETo see more from Joe Verde go to CBTNews.com

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WOMEN I

t isn’t exactly news that women are the more social gender. Sure, men like to get together, with and without women, to talk about their favorite subjects, of which car talk is usually a popular one. But women are naturally more social, and now it is proving to be true in the one place where social interaction has been getting a lot of attention from dealers – the internet. It wasn’t long ago, 2005 to be precise, when the Pew Internet and American Life Project reported that women trailed men in their use of the internet. Since then, social networking has become one of the most popular uses for the web. Americans now spend more of their online time using social media than any other activity. And women now dominate social networking on the web. A more recent 2013 Pew study indicated that in all social media sites, with the exception of LinkedIn, women constitute the majority of users by a wide margin. Fifty-eight percent of Facebook users are women, versus 42 percent men, and on Twitter it is nearly 2 to 1 (64 percent vs. 36 percent). On one of the newcomers, Pinterest, an amazing 79 percent of users are female.

Aside from being confirmation of my many exhortations that women are more focused on relationships, there is valuable information here for dealers as they focus more and more attention on social media for marketing. If you aren’t visualizing that most of the visitors to your Facebook page as women, and tailoring your content and messages to accommodate them, then you are not getting the most from your efforts.

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Women dominate social networks because they want to enjoy, encourage, facilitate, nurture and cultivate their relationships that much more than men do.

And because they are critical decision makers for their and their families’ purchases, it will pay off to bend in their direction.That doesn’t mean that you can’t or shouldn’t celebrate the pleasures of automotive excellence and performance. It should be mixed with content that celebrates the personal side of the car buying and owning experience. Women rationalize car ownership differently than men do, much as women rationalize shoe ownership differently than men. Women endow cars with more personal considerations. When she considers a vehicle, she will invariably envision how it fits her personal relationships, such as her friends and family. Will there be a place for the car seat when I find the right man to start a family?

Will my parents be comfortable in the back seat? Is there a place for my purse? (Okay, the last one is more of a personal peeve of mine.) A man will also consider his personal needs when making a car purchase, but more often than for a woman, the sound of the exhaust can be a personal need. Car makers spend lots of money on those sounds for a reason. So take a look at your website and your social media profiles and consider whether you need to rebalance your content. I suggest talking more about your people and what they are doing both in the

ARE SOCIAL

dealership and in their own lives, playing up your community activities, and inviting your “friends” to stop in to learn about new models and technologies.

Be sociable.

Also, take a look at the images you use on your site, your Facebook pages and in your print advertising Put images of women, couples and families in prominent places. And consider how you can also take advantage of another big element of women’s internet activity: sales, discounts and coupons. The internet is an ever-changing landscape that will undoubtedly continue to evolve, but I don’t think we’ll ever see the end of social media sites. It’s important to keep your finger on the pulse of the web and adapt to its changing reality so you don’t lose out on opportunities to excel. CBT

Delia Passi Founder of the Women’s Choice Award

Delia is an authority on building sales and loyalty among women. The Women’s Choice Awards allows consumers to identify businesses that are highly recommended by female clients. As a consultant to numerous Fortune 500 companies, Delia advises her clients how to better understand their female consumers, supporting them to increase deals closed, improve customer service, and gain the loyalty of these hard-earned customers. Prior to founding Women’s Choice Award, Delia was the group publisher of “Working Woman” and “Working Mother” magazines. She is also the author of “Winning the Toughest Customer, The Essential Guide to Selling to Women” (Kaplan, 2006). Visit her website at WomensChoiceAward.com.

ETo see more from Delia Passi go to CBTNews.com

REVEAL THE PRINCE ON

YOUR USED CAR LOT.

Learn how to certify your Other Makes & Models.

motortrendcertified.com/prince

MOTOR TREND® is a registered trademark of SOURCE INTERLINK, LLC. ©2014. All Rights Reserved. ©2014 Automobile Protection Corporation - APCO. EasyCare® is a registered trademark of APCO. All Rights Reserved.

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CREATING THE RIGHT MARKETING MIX Does your marketing speak to Millennials and Mature Adults?

arketing is about to get more challenging. Two studies were recently published that, on the surface, seemed unrelated, yet when taken together actually show that a massive demographic shift is approaching. One study, conducted by Foresight Research, focused on mature adults aged 55 and older. While the other, conducted by Cars. com in collaboration with GfK, focused on Millennials. Initially, it would appear that these two groups have dramatically different priorities when it comes to purchasing and servicing their vehicles. When you dive deeper, however, their priorities aren’t nearly as different as they first appear. A dults over 55 have become the largest current customer base for automotive dealers. Mature adults now account for half of new car purchasers, up from a quarter in 2008. When Foresight Research asked this group where they serviced their vehicles, one-third responded that they take their cars to the dealership, while only a quarter stated that they patronize independents. When asked which factors influenced their decision on where to take their vehicles, the top three responses were convenient location, quality of service and good customer service. Price ranked fourth for mature adults. Several other factors, such as experienced technicians, genuine parts and loaner cars, also ranked as important. According to the study, “Price is just lower on the list for the mature adults. It ranks fourth on why they

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go where they go for service. In fact, adults 55 or older were significantly less likely than the total population to cite “price matching/same price as other maintenance shops” as something that would encourage them to take their vehicle to a dealership for routine maintenance if they currently were going somewhere else.” Millennials, also known as Generation Y, account for the fastest growing customer segment and will account for 75 percent of all vehicles purchased by the year 2025, according to Time magazine. And, according to industry expert Dale Pollak, founder of vAuto “[Millennials] are the next big segment of car buyers, and they’re defining the buying process.” The Foresight Research study found that Millennials, unlike mature adults, report that price is the most important factor when choosing an automotive service provider. Even though price is reportedly their top factor, Millennials also say they are willing to pay for convenience and quality, as “nearly half of Gen Y consumers are willing to pay for services that make their lives easier.” As an example, 44 percent reported they would “pay to have a dealer pick up and drop off a loaner [car].” If they are willing to pay more for quality and convenience, it would be a logical conclusion that price may simply be used as an initial filter to help Millennials narrow their automotive service options. On the other hand A recent Cars.com/GfK study cited a lack of pricing transparency and trust as key reasons dealership service customers defect to independent automotive repair shops. The study blamed poor fixed ops digital marketing and visibility for this, and stressed to dealers

the importance of increasing their online digital marketing presence, including providing pricing for basic services on their websites. Pricing transparency is essential because Millennials are seeking a more retail-like experience. As consumers of all ages continue to increase their use of computers and mobile devices to research dealerships and service, the lack of pricing information available for basic dealership services contributes to mistrust by Millennials. It’s common sense that the mature adult segment has had a lot more life experience, which may lend to the price factor being less important to them. They’ve been patronizing dealership service centers for many years, whereas Millennials are just beginning their car ownership experience. Independents have done an excellent job in their pricing transparency and digital visibility. Millennials want to service their vehicles at dealerships, but they also need to have confidence in cost. This explains the massive growth in complimentary and prepaid maintenance packages being offered to and purchased by consumers during the car buying process. According to a recent study by Deloitte, a whopping 71 percent of Millennials considered free routine maintenance important when choosing a vehicle. And prepaid maintenance buyers have tripled ‒ from 15 percent to 46 percent – in the last five years, according to J.D. Power. Both of these types of programs offer peace of mind to consumers about future service-related repairs.

HERE ARE A COUPLE OF ITEMS TO CONSIDER WHEN DESIGNING A MARKETING STRATEGY THAT WILL APPEAL TO BOTH DEMOGRAPHICS:

1 2

BOTH MATURE ADULTS AND MILLENNIALS SAY QUALITY OF SERVICE IS IMPORTANT.

According to the 2014 Gen Y Automotive Consumer Study, 66 percent of Millennials and 72 percent of all other generations cited quality of service and confidence in the dealerâ&#x20AC;&#x2122;s ability to repair as being important. Dealers who place a focus on educating their customers about the services being performed, why they are necessary and what exactly will be done, will be light years ahead in the race to gain consumer confidence. Technology offers dealerships the ability to educate their customers and transform service repairs from an obscure concept into one that consumers understand. Be sure to include messages of expertise and service quality in your marketing since this appeals to both groups and is an important message for customer retention and acquisition.

CONVENIENCE WAS ANOTHER COMMON CONSIDERATION FOR BOTH GROUPS WHEN

it came to choosing an automotive service provider. According to the 2014 Gen Y Automotive Consumer Study, 66 percent of Millennials and 72 percent of all other generations cited quality of service and confidence in the dealerâ&#x20AC;&#x2122;s ability to repair as being important. Dealers who place a focus on educating their customers about the services being performed, why they are necessary and what exactly will be done, will be light years ahead in the race to gain consumer confidence. Technology offers dealerships the ability to educate their customers and transform service repairs from an obscure concept into one that consumers understand. Be sure to include messages of expertise and service quality in your marketing since this appeals to both groups and is an important message for customer retention and acquisition.

AN EFFECTIVE GROWTH STRATEGY IN DEALERSHIP AUTOMOTIVE FIXED OPS MUST CONSIDER BOTH GROUPS IN THEIR CURRENT MARKET POSITIONING SO THAT A RADICAL OVERHAUL WILL NOT BE NECESSARY WITHIN THE NEXT FIVE YEARS.

To maximize the opportunities that both mature adults and Millennials represent, work to ensure your customers have excellent experiences, are informed and educated on the services you provide and that your services are convenient (even at a cost), and that you offer pricing transparency for basic services. CBT

ETo see more from Scott Joseph go to CBTNews.com

Scott Joseph President of J&L Marketing

Scott Joseph has extensive expertise in marketing strategies and solutions, as well as experience with the challenges auto dealerships face. He founded the company in 1991, which has been recognized by DrivingSales as the highest-rated automotiveowner marketing agency for three years running. He is also a dealer principal of Johnson City Honda and a dealer partner of Cape Girardeau Honda and West County Honda. This has provided him a firm understanding of both the obstacles and opportunities of developing successful marketing strategies. Scott attended the University of Louisville.

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SEVEN TIPS TO HANDLE

the Issue of Price Whether you are dealing with a fresh walk-in prospect or with an internet appointment, how well you are prepared to handle the issue of price can make or break your sales performance, gross profit and income. Here are seven tips that can increase your effectiveness immediately in handling the issue of price. Tip No. 1: Avoid the Myth “Salespeople create numbers and managers create gross.” This statement is a myth. How well a salesperson establishes a relationship with a customer and asks questions that uncover wants, needs, emotions, previous buying patterns, communication styles, the customer’s “hope for gain” and more will determine gross profit more than anything a manager can ever do. A salesperson must create a buying environment and experience that transcends price. The price pendulum works. When value exceeds price, people buy. The value can be perceived in many forms and channels. Value can be perceived in the “3Ms” – Money, Me and Machine. Value can be communicated emotionally, logically, experientially and conceptually. It can be fear-based, happy-based, product-based, salesperson-based and more.

Tip No. 2: Sell Apples to Oranges What is it that’s different about your sales process? What creates that “wow” and makes your process so much better so that price becomes less of an issue? Create “apples to oranges” choices and distinctions on Money, Me and Machine. For example, use a different meet and greet such as, “Hi, folks, welcome to ABC Motors. Are you out beginning to look and shop around?” This takes the traditional response of “I’m just looking” away but does so in a positive manner. If you receive an email contact, then use video email to contact the customer back. You will be unique from all other dealerships that reply to the customer. First impressions count.

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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

Tip No. 3: Walk the Wheel Draw a circle with a series of lines coming out all around the circle. On one side of the line, you have one option. As an example, you could have “financing,” and then on the other side “leasing.” You could have a line with “long-term financing” and then “short-term” on the other. Keep doing this until you exhaust every possible scenario you can think of. When you think of better options, the issue of price will become less important in consideration. Your competition will often be very narrow in their focus.

Tip No. 4: Set the Stage How do you address price? Are you practicing Stone-Age sales techniques? Do you actually believe, as many sales trainers teach, that you can avoid the issue of price? Notice I said the “issue.” You would not stand for old-school “avoid and evade” techniques, and neither will your customers. Try setting the stage for price by addressing how you and your dealership handle price. There’s an old saying that, “You can’t sweep crap under the rug and expect the stink to go away.” Address the issue of price up front and with confidence. You will notice the trust and comfort you create with customers because of this.

Tip No. 5: Know What You Will Say Don’t wing it. Know exactly what to say to a customer when the customer asks you what your best price is. Competence equals confidence. When you are competent in handling the question, your confidence goes up and the customer will follow you anywhere and do anything.

There are five steps to successfully handling the price issue. Listen – You must fully listen to the customer’s question and show that you are listening by nodding your head. Do not try to use old-school bypass techniques that ignore the customer’s question. Agree - (“Absolutely!” “Sure!” “You bet!”) Let them know that you are very enthusiastic about answering their question and the answer is always yes! Address - (Use a word track like the one above) “Absolutely! I will be happy to get you a price and if you want that to include trade-in figures, terms, payments or anything else, I will get that for you, as well. Every vehicle on our lot has different market value based upon how long it has been in inventory, the supply and demand of the particular vehicle you pick out, any factory programs as well as any dealership promotions and specials. Let me check all of this to get you the right price.”

Segue - (Bridge from the addressing of the question to redirecting using a phrase, such as “by the way...”) “By the way, I wanted to ask you…” You have now completed four steps in handling the price issue. First, you listened. Second, you agreed with their question and did not try to avoid the question. Third, you addressed the issue with the correct statement. Fourth, you segued by using “by the way” to bridge between addressing the issue and then redirecting the conversation by asking additional questions. Redirect - (Ask questions about car buying and car trading.) Some examples of these questions are: “I know having four-wheel drive was important to you with your current vehicle, will that be just as important this time?” “I noticed you really like the X option package, would you like to look at XYZ to see the additional options and if they are something you might want? We can also look at a vehicle without the X package to let you see the difference, fair enough?” You can also ask additional questions about the trade in such as, “I don’t think I asked you, did you buy your vehicle new or pre-owned?” “What was the number-one thing that made you want to buy your current vehicle when you bought it and is that still a priority on this vehicle?” You are simply moving on with the direction of the sale and the process.

Tip No. 6: Dig Deeper, Dig Deeper, Dig Deeper Most salespeople only go skin deep with customers, but you could and should dig deeper. Go deeper by going to their trade in first. When you go to the trade in first, you are going to their comfort zone and unlocking their buying patterns and preferences. You will create role reversal in the selling process and discover how the customer communicates. The customer will explain what their “hope for gain” is by communicating their dominant keywords. About 95 percent of your customers will have one or two keywords that they repeat over and over that will communicate what is most important to them.After first greeting customers and beginning to communicate, tell them the following, “Let’s walk over to your vehicle for a quick second for two reasons. One reason is I can get all the information about your vehicle so when the market value is being determined I will have all the information necessary and that will save you a bunch of time. Second, as I am getting the information I want to ask you a couple of questions about the vehicle and from this I usually come up with a few ideas to save you some money, fair enough?” Notice I am anchoring in two things: saving time and saving money. Your customers all want to save time and money. Perception is reality. You are setting the perception of reality to save time and money. You are talking the language of the buyer.

Tip No. 7: Practice Give-Get

Never give something without asking to get something in return. This establishes value in your price, your proposal of the price and you. As an example, when a customer asks you for a lower payment than what was proposed, you can immediately respond to the customer that there are several ways to potentially lower their payments. First, the customer could put down more cash investment. Second, you could check and see if the bank would extend the term. Third, you could look at a different vehicle with less equipment, less expensive model or a pre-owned vehicle, or the fourth option would be a lease option, which often lowers the monthly payment. Notice that when the customer asks you for lower payments you offered four options that asked the customer to give something in return and neither of these options involved you lowering your price to lower the payment. You verified and validated the original proposal to the customer by using the Give-Get principle of negotiating.

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NEWS.COM

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June was a busy month for CBT News, as a number of industry insiders visited the Atlanta studios to speak with the news team. Juan Flores of AutoTrader.com’s Trade-In Marketplace, Alex Vetter of Cars.com and Brian Pasch of PCG Digital Marketing were a few of the experts who came in to speak with anchors Bridget Everett and Russell Brown about issues facing new-car dealers today. We also launched CBT Live, the industry’s first ever livestream video webinar. Viewers “tuned in” as Eric Mercado of Force Marketing shared some best practices in auto marketing. Participants were able to see – not just hear – Mercado

RUSSELL AND BRIDGET HOSTING THE SHOW FROM THE HARD ROCK HOTEL CORY MOSLEY, SPEAKER AND AUTHOR, MOSLEY AUTOMOTIVE

ALEX VETTER, SENIOR VP, CARS.COM

AARON WIRTZ, MEDIA AND MARKETING MANAGER, SUBARU OF WICHITA AND SUPER CAR GUYS

JONATHAN BANKS, EXECUTIVE ANALYST, NADA USED CAR GUIDE JENNIFER REID, SENIOR DIRECTOR OF PRODUCT MARKETING, EQUIFAX

JUAN FLORES, DIRECTOR OF OPERATIONS, AUTOTRADER.COM’S TRADE-IN MARKETPLACE

LARRY GAMACHE, COMMUNICATIONS DIRECTOR, CARFAX

RUSSELL AND BRIDGET REPORTING FROM SAN DIEGO

GRANT CARDONE, NATIONAL SPEAKER AND MOTIVATOR

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JASON BARBER, PRESIDENT AND FOUNDER, FRIENDEMIC

BRAD CORRELL, GM, LOGANVILLE FORD

HEATHER MACKINNON, VP OF NATIONAL ACCOUNTS, DEALERRATER

Covering the Auto Industry’s Top Events as he gave his presentation live, then submit their questions during the talk-show styled webcast. CBT Live is a great way for vendors to present their products and services to dealers nationwide. In June, the CBT News crew traveled west to cover DealerSocket’s User Summit. The three-day event took place at San Diego’s Hard Rock Hotel where Brown and Everett conducted interviews with many attendees and top executives of DealerSocket, including Jonathan Ord, CEO and Co-Founder. Featured speakers at the summit included Cory Mosley of Mosley Automotive, Jason Barber of Friendemic and Mike Haeg of Century Interactive to name a few. Look for us at upcoming industry events. CBT

MICHELLE KREBS, DIRECTOR OF AUTOMOTIVE RELATIONS, AUTOTRADER GROUP

RUSSELL AND BRIDGET GO BACK TO THE FUTURE FROM SAN DIEGO

JONATHAN ORD, CO-FOUNDER AND CEO, DEALERSOCKET

BRIAN PASCH, CEO, PCG DIGITAL MARKETING SPEAKS WITH RUSSELL IN THE STUDIO

RUSSELL AND BRIDGET HOST THE RED CARPET EVENT AT THE DEALERSOCKET USER SUMMIT

DELIA PASSI, FOUNDER, THE WOMEN’S CHOICE AWARD

MARK RIKESS, CEO, THE RIKESS GROUP

MIKE HAEG, DIRECTOR OF BUSINESS DEVELOPMENT, CENTURY INTERACTIVE

LARRY DORFMAN, PRESIDENT AND CEO, EASYCARE

ERIC MERCADO, NATIONAL DIRECTOR OF SALES, FORCE MARKETING

JONATHAN COLLEGIO, VP OF PUBLIC AFFAIRS, NADA

DAVID LEWIS, PRESIDENT OF DAVID LEWIS AND ASSOCIATES

JERRY THIBEAU, CEO/ FOUNDER, PHONE NINJAS

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ARE YOU

MAXIMIZING

YOUR LEASING POTENTIAL? LEASING IS BACK but this time leasing is hot for virtually all makes, models and segments. Prior to the recession, leasing was a significant part of the luxury brand segment. While this segment remains popular for leasing, 2014 lease levels have increased for trucks, compact cars and even plugins and hybrids. According to Experian, 30 percent of all new vehicles financed in the first quarter of this year were leases, up from 27.5 percent a year earlier. Experian also says it’s

getting easier to gain customer approvals for a lease, with the average credit score on a lease approval at 721 in January through March of this year, compared with 731 a year earlier. Your opportunity to lease more vehicles is staring you in the face. But are you maximizing your opportunity? Dealers can take important steps to ensure greater success when leasing a vehicle to a customer. Your ability to successfully implement these may result in higher lease penetration at your dealership, a higher customer satisfaction index (CSI) and ultimately, a lot more repeat business. The most successful dealers realize

the larger opportunity with leasing, because the goal of a lease customer is more than just the initial sale. It’s great that you moved inventory that month, but if that’s your goal, you’re missing the larger opportunity. Since most leases are written for 36-month terms, there’s a very good chance these customers will be walking back into your store three years later. If you really take advantage of the opportunity, they’ll return even sooner than that.

Here are three ways to ensure you have a better chance at gaining long-term repeat business with your leasing customer Provide Proper Lease Education

ustomers think of leasing as the low monthly payment. This is good news because there are still a lot of people who shop on price alone – even if they are shopping for leasefriendly models like luxury brands. Let’s be honest, the car is beautiful but they want a great monthly payment, and the low price can seal the deal for them. But the process of leasing is confusing. Credit is analyzed differently. Terms are much shorter. Mileage restrictions exist. Vehicles must be maintained at a higher level to avoid end-ofterm fees. Insurance requirements are typically different. And, last, do they understand the residual? You shouldn’t hide these areas from your customer. You should do the opposite and make time to properly explain all of these areas and the differences between leasing and financing – above and beyond the monthly payment. A person who truly understands the lease experience will have a better chance of coming back for another lease in a few years – or less.

Remove Their Fears of the Contract

Leasing is a contract. Unfortunately, most people have a negative perception of contracts in general. They’re sticky. They’re confusing. They come with restrictions. And, when something goes wrong, such as a loss of income or a move to a different location, contracts are not flexible. If customers drive the lease for three years and nothing ever changes in their lives, that’s great for them. Unfortunately, life happens. Changes can

Scot Hall

Executive Vice President of Swapalease.com Since 1995, Scot has served in a number of retail automotive positions, beginning with sales and sales management opportunities with BMW. Today, Scot leads a team of professionals by overseeing sales, operations, customer education and marketing for the leading lease transfer provider in North America. Scot has used his knowledge and expertise in retail F&I departments to develop more flexible lease programs for thousands of consumers for every automotive brand. Visit his website at www.Swapalease.com.

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take place for a person or family in the span of three years. In many cases, these changes can conflict with that vehicle choice. Sometimes, the payment no longer works (job loss). Sometimes, the car no longer works (new baby on the way). In either case, the contract gets in the way of that person making the proper adjustment. Sure, they’ll come back to you and ask for help, but the options you’ll offer may not work for them. They’re not interested in rolling negative equity into a new vehicle, nor are they in a financial position to pay off the lease. In this case, educate them on the option to transfer that lease to someone else. There are online marketplaces designed to help drivers escape the lease by transferring it to a different individual, anywhere in the country. When this happens, they’ll immediately be in position to get a different car.

Remarketing Opportunities

You might want to talk to your customer about lease transfer up front at the time of sale. Lease customers enjoy leasing because of their low monthly payment. However, the vast majority of them also like leasing because they like to get a different vehicle frequently. In fact, the average lease customer is ready for a new vehicle after just 13 months into the lease. You should realize this psychology and focus your remarketing efforts accordingly. Shortly after a year into the lease you should be inviting them back into the showroom for a test drive on the newest model. If successful, they’ll know they can escape their current lease at any time through the online marketplace. When this happens, your CSI will go through the roof and you might actually move two cars during that 36-month lease period, not just one. CBT

Implement these three practices and watch your lease rates go up

ETo see more from Scot Hall go to CBTNews.com

ASK THE PROS At CBT News, we are fortunate to work with some of the best trainers in the industry. 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.

“What do you do with a salesperson who sells 20 cars a month but never follows the rules set up for the sales department? They arrive late to meetings, they never put their cars back, and they are terrible on the phones?” Jim C., Oklahoma City, Okla.

DENNIS GALBRAITH

If you have, or are building, a sales system requiring everyone to be onboard, fully using your CRM, and integrating your website with your in-store operations, then fire them. The direct loss between his 20 cars per month and replacing him with the next person is probably less than he is costing you in other sales by disrupting the system. I hope this is the case, but don’t kid yourself. If you are a commission dispenser with rules but no process, then learn to deal with it. You need prima donnas and are lucky to have one.

CMO AT DEALER E-PROCESS

DEALEREPROCESS.COM

What is the number one thing I can do to increase my number of hours per R.O.? Barry L., Santa Monica, Calif. 1. Walking around every vehicle every time with your customer at the initial check-in equals a three-tenthplus increase immediately. 2. Become an expert at closing sales over the telephone. The biggest sales are here. With most advisors, an immediate five-tenths to one hour can be earned. Contrary to popular belief, customers see you closing and handling objections as you’re consulting them. They see it as you having supreme confidence in your factory-trained technicians, your products and yourself. 3. Become a student of the selling profession. The title “Advisor” is just that, a title. You are a professional salesperson.

JEFF COWAN PRESIDENT JEFF COWAN’S PRO TALK INC.

AUTOMOTIVESERVICETRAINING.COM

“How should I handle the prospect on the phone who asks for our best price?” James R., Bangor, Maine.

MARK TEWART PRESIDENT OF TEWART ENTERPRISES INC. MARKTEWART.COM

“Absolutely Mr. Jones, I will definitely get you the best price. I always get my customer’s the best price, trade market values and monthly budgets that I can. Each vehicle has a different market value based upon how long the vehicle has been in inventory, the supply and demand of the particular vehicle as well as any factory programs and dealership specials now and upcoming. In order to get the best price for you, let me ask a few questions if I may.” Redirect by asking questions on the new vehicle and trade in. Keep direction of the call and ask for an appointment by asking, “Mr. Jones, I also wanted to ask you, is this the only vehicle that you were considering? (No matter if they answer yes or no give the customer hope for gain and move for an appointment by saying the following: “Mr. Customer, the reason I ask is we have some other vehicles and models with different option packages, programs etc., that may have better prices. I thought you might want to also look at and compare those vehicles as well. What time would you be available to look those options, compare and then pick out the one you want so I give you all the information at once? Would this afternoon or evening work best for you?”

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JustFYI The Burn Factor Why it’s Important to Provide a Positive Social Media Experience According to a recent study by J.D. Power, providing consumers with a satisfying social media experience is key to driving current and future sales in both the showroom and the service department. The study found that consumers who are happy about their social media servicing and marketing experiences are more likely to purchase from the same automotive brand in the future. Those consumers also indicated that they would most likely return to the dealership for service. Twenty percent of consumers use social media as their primary source of information about automotive brands. Almost onethird of those social media users rely on recommendations from friends and family exclusively through social media.

No Thanks – I’ll Pass In the not so distance past, car buyers wouldn’t dare purchase a car without first taking it out for a test drive. But new research from DMEautomotive shows that a growing number of Americans are bypassing the test drive and making very few visits to the dealership during the car-buying process. Of the 2,000 automotive consumers surveyed, 16 percent passed on a test drive all together, while only 33 percent test drove only one car before buying. Sixty-eight percent reported that they had visited only two dealerships or fewer with 40 percent visiting only one dealer.

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Shoppers Feel the Advertised Car Lease Is Just a Mirage The majority of consumers shopping for a new car lease are frustrated with the disconnect between advertised automotive deals and the cars they end up looking at inside the dealership. The findings were part of a joint online study between Swapalease.com and Wantalease.com in April where more than one thousand drivers were asked about trends in the current car shopping experience for consumers interested in a new lease. The biggest frustrations when shopping for a new lease deal are: • Finding out the advertised lease was on a basic model with no options (48.8 percent) • Finding out the advertised lease generally did not meet the needs of the lease shopper (43.3 percent) • Finding out that there are hidden terms in the advertised Lease (52.3 percent of respondents)

Trust Me According to Women-Drivers.com’s 2014 U.S. Women’s Car Buying Report, trust is the No.1 reason women buy from their sales associate. Even if there is a dealership closer to her home, the report says 65 percent of women will travel farther away to do business with a dealership they trust and respect. When women leave the dealership and do not buy, two-thirds of them will not return. First impressions count.

You might think being out on the lot for only 10 to 15 minutes a stretch isn’t long enough to cause sun damage. But you would be wrong. According to the Sun Safety Alliance, when the UV Index reaches 10, a person without sunscreen can burn in 10 minutes or less. In fact, Drs. Katie Rodan and Kathy Fields say that 20 minutes of incidental sun exposure each day of the year can do as much damage to your skin as baking in the sun for two weeks. Yikes. Apply a sunscreen with a SPF of 15 or higher before you start greeting customers in the morning. To achieve adequate UV protection you should use products that provide broad-spectrum protection, which means protection against both UVB and UVA rays. For broad spectrum protection, look for products that provide an SPF of at least 15 and contain ingredients like Avobenzone (Parsol 1789) or zinc oxide. Don’t forget to apply to your neck, ears and lips!

It’s Hot. Drink Up. Lack of water can lead to dehydration, a condition that occurs when you don’t have enough water in your body to carry out normal functions. Even mild dehydration can drain your energy and make you tired. How much water do you need? For your body to function properly, you must replenish its water supply by consuming beverages and foods that contain water. So how much fluid does the average, healthy adult living in a temperate climate need? The Institute of Medicine determined that an adequate intake (AI) for men is roughly 3 liters (about 13 cups) of total beverages a day. The AI for women is 2.2 liters (about 9 cups) of total beverages a day. CBT

She could be a customer for life. It’s never about a single sale. At VinSolutions, we want every sale to turn into more opportunities — from service to shopping for that next vehicle. That’s why our CRM manages the entire buying and ownership cycle, and pushes powerful customer insight across your whole dealership. With VinSolutions, you stay connected to your constantly changing customers, and keep them coming back.

Demo our complete software solution today. vinsolutions.com/life | 800.519.2897 July

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