ALABAMA
AL ABAMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION | AUGUST/SEP TEMBER 2019
Mental Toughness and Sales Success TRAIN TO OVERCOME |
PAGE 8
DALLAS, TEXAS Permit No. 2079
PAID
VISIT US AT W W W.AL ABAMAIADA.ORG
2019
PRSRT Standard U.S. Postage S TAT E A F F I L I AT E
& DAY ON CAPITOL HILL - SEP T.23 -25
2 AIADA AUGUST/SEPTEMBER 2019 WWW. ALABAMAIADA.ORG
SALES MATTERS |
INDUSTRY NEWS
By John Chapin
SALES SUCCESS
Are you IN or are you OUT? I was recently speaking with a manager at a real estate office about what makes some agents successful and others unsuccessful. He told me, “John, I can sum up the difference between the successful agents and the unsuccessful agents with one quick example: during a major blizzard when everything is shut down and everyone is at home, my top agents are making phone calls to prospects because they know they have a captive audience, and the rest of my agents are posting pictures on Facebook of the cookies they’re baking.” I’ve noticed a similar phenomenon when I speak. Afterwards it’s always the top salespeople who line up to buy my book. The mediocre and poor salespeople, on the other hand, always give me an excuse for not investing in the book – either they don’t read or they can’t afford to buy the book. Here’s another example that outlines the difference between success and failure in sales. Several years ago I worked for the largest banking equipment distributor in the world. The top salesperson was a guy named Pete. One day while Pete was out making prospecting calls, he got in a car accident. In fact, he totaled his car. Luckily, he didn’t get hurt too badly. He ripped his pants, got some cuts on his nose and forehead, but for the most part, he was OK. When the paramedics insisted he go to the hospital and get checked out, Pete adamantly refused. Regardless of the car accident, he was determined to get the rest of his sales calls in. After pleading with Pete for a while, they finally gave him some butterfly stiches to close the facial wounds and sent him on his way. Pete jumped into a cab and completed his calls for the day. While that’s a pretty good story on commitment, it doesn’t end there. Like most top athletes and people who are among the best in their field, Pete was determined to find the advantage in wrecking his car and it didn’t take long to find it. He remembered two hard-to-reach prospects he simply could not get through to. He’d call, stop by in person, email, send items through the mail, and use any and every trick and technique to get through, but he simply wasn’t able to get to these two prospects. Pete now saw the car accident, and his current condition, as an opportunity to change things. He took the cab to both offices. When he arrived – torn pants, bloody face, butterfly stiches and all – he told the receptionist, “Hi, I’m here to see Mr. Prospect. You have no idea what I’ve been through today to see him.” Now these gatekeepers, who had bulletproof teeth and had been shutting Pete down for months, were now off selling to the decision maker why they had to see Pete. I can imagine it sounded something like, “You’re not
going to believe this. There’s a guy out in the reception area with torn pants and blood on his face. I mean it’s not Halloween, right? You have to see this.” The result was Pete got in to see both prospects that day. They both laughed as he told his story. The best news is three months later Pete ended up getting one of them as an account and it became his fourth largest account. While that’s a great story about commitment, there’s another point to be made here. Both of these prospects were owners of medium-sized businesses. As such, they undoubtedly have some slackers who work for them. You know the type – the ones who take every sick day, holiday, vacation day, family day, and look for every excuse to take days off and work as little as possible when they are actually there. Yet here’s a guy who got in a car accident and had a perfect excuse to take the rest of the day off, but he’s still out working. Do you think that gives Pete some instant credibility? You bet it does. Do those owners know that if Pete says he’s going to do something, they can count on it? Of course. Now let’s compare Pete’s story to that of a low-performing salesperson at the same banking equipment company. This guy showed up to the weekly sales meeting with a coffee stain on his shirt. I said, “Wow, tough drive into work, huh?” His response, “Yeah, luckily my appointment was able to reschedule.” I asked what a coffee stain had to do with rescheduling an appointment. He said, “Well, obviously I can’t go out calling on prospects looking like this.” While missing an appointment because he had a coffee stain on his shirt was bad enough, also notice he said “appointment” versus “appointments.” That one appointment was his one for the day, and probably his one for the week. So we have the top sales rep who gets in a car accident and actually makes two more calls than he had planned on versus the lowest performing sales rep who uses a coffee stain as an excuse to make no calls. I think the difference between the successful and unsuccessful is pretty obvious. One is committed and determined to make the calls and do whatever it takes to be successful. The other is simply going through the motions and trying to stay on the payroll while doing as little work as possible. One’s all in. The other, for all practical purposes, is out. John Chapin is a sales and motivational speaker and trainer. He has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling.com or email johnchapin@completeselling.com.
TRUECAR CEO CHIP PERRY RETIRES
Industry Veteran to Continue in Advisory Role TrueCar president and chief executive officer Chip Perry has retired. The company said it intends on Perry continuing in an advisory role, with Michael Darrow appointed by the board as interim president and Chip Perry CEO. Darrow’s current post is executive vice president of partner and OEM development and president of TrueCar’s ALG subsidiary. “I feel beyond proud of the work the TrueCar team has done over the past few years,” Perry said. “We have righted the ship, rebuilding our dealer network to over 16,500 dealers while concurrently completing our Capsela technology re-platforming effort. “This is a critical foundation upon which to build a differentiated, end-to-end car buying experience. Additionally, TrueCar Trade and our expansion into digital retail through our DealerScience acquisition are rapidly advancing us toward becoming the preeminent shopping-to-showroom solution. “With these critical puzzle pieces now in place, I believe TrueCar is well positioned to create even more fabulous new products and services that will provide significant additional value to consumers, dealers, and OEMs.” Perry was named TrueCar’s president and CEO in late 2015, taking over for Scott Painter. This was just the latest in a long automotive career for Perry, who founded what is now Autotrader in 1997 and served as its CEO until 2013. TrueCar chairman of the board Chris Claus said, “On behalf of the board of directors, I want to sincerely thank Chip for the leadership he has brought to TrueCar over the last few years, rebuilding our dealer customer base, reinventing our technology platform and setting the stage for TrueCar’s growth as a bestin-class online automotive marketplace. “We are grateful to Chip and wish him all the best in his retirement. We appreciate his deep commitment to TrueCar, and we thank him for his service.” WWW.ALABAMAIADA.ORG AUGUST/SEPTEMBER 2019 AIADA 3
ASSOCIATION NEWS
NEW MEMBERS
Welcome to the following new members: Ryan Jones
Vince Wasik
Phillip Lozito
Bobby Ledbetter
Greg Buttram
Sean/Kewanda Vandiver
Steve Robertson
Larry Whitehead
Ace Auto Sales Fyffe Bic Automotive Centre
Inside
05..........................Executive Director’s Message 07..................................................Google Reviews 08.............................................Mental Toughness 09.................Cost-Free Ways to Increase Profits 10................................NIADA Government Report 14.....Success Objectives & Social Media Metrics
Advertisers Index
Lobel Financial............................................................. 9 Manheim............................................................. 11 NextGear Capital..............................................6-7 vAuto................................................... Back Cover Warrantech.......................................................IFC
What’s New
CONVENTION SESSIONS ONLINE
If you missed the 2019 NIADA NABD Convention & Expo, or a particular session, you can now watch education content online! You can also view education from last year’s convention. Check it out at NIADA.tv, the exclusive host of the 2019 NIADA Convention Sessions.
Office
120 Vulcan Road Birmingham, AL 35209 Phone: (205) 942-1000 Fax: (205) 942-3565 Website: www.alabamaiada.com To become a member of AIADA, please call (800) 239-2423
NIADA Headquarters
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. The Alabama Independent Automobile Dealers Association is published bimonthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of AIADA or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2019 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Christy Haynes PRINTING Nieman Printing
4 AIADA AUGUST/SEPTEMBER 2019 WWW. ALABAMAIADA.ORG
Mike Wallingsford CMA Used Cars LLC Section
Eagle Automotive LLC Huntsville
Good Hands Auto Sales LLC Valley Grande
LR Auto Sales Birmingham Birmingham Mazy B Inc. Madison
Twin City Used Cars Ft. Payne
Port City Tractor Inc. Mobile
Michael C. Monte
Monte’s Auto Sales Inc. Trussville
BOARD OF DIRECTORS PRESIDENT Chad Tillery
Jemison Cktillery@Hotmail.com
PRESIDENT ELECT Robert Case
Hartselle Robertsautosales1@Live.com
TREASURER Randy Crump
Jasper Fas_jasper@Yahoo.com
CHAIRMAN OF BOARD Todd Oden
Lance Turner Anniston
Willie Colvin Tuscaloosa
Tim Duke Trussville
Birmingham Mtomotorsinc@Gmail.com
Jay Saul
Bessemer Runderwood@ Anthonyunderwood.com
EXECUTIVE DIRECTOR Randy Jones
Randy Little
SECRETARY Erek Yarbrough
DIRECTORS Barry Searcy
Kelly Steely
VICE PRESIDENT Roderick Underwood
Pleasant Grove Yarbroughbiz@Yahoo.com
Muscle Shoals
Joey Bryant Sylacauga
Jasper
Satsuma
Del Miles
Jacksonville Hoover
Chris Mundy Columbiana
Jennifer Gant Harlow Arab
Michael Bratton Jr. Phenix City
Jerry Giles Tuscaloosa
Danny Delich Georgia
Ricky Young Boaz
Patrick Graves Moody
Mike Osaji Harvest
Jeff Demeis Hoover
INDUSTRY NEWS
NEW CFPB DEPUTY DIRECTOR
Brian Johnson
Consumer Financial Protection Bureau director Kathleen L. Kraninger recently announced Brian Johnson will serve as the deputy director. Mr. Johnson first joined the bureau in December 2017 as senior advisor to the director and was named principal policy director in April 2018. He has served as acting deputy director since July 2018. “I’m glad to announce officially that Brian will be the bureau’s deputy director,” said Kraninger. “Not only has he done a fantastic job serving in the acting capacity, he has been an invaluable part of the team. Brian’s extensive experience on consumer and financial policy will continue to serve the bureau in its focus on preventing consumer harm and using all of the tools Congress gave us to protect consumers.” Johnson joined the bureau from the House Financial Services Committee, where he spent over five years serving in various capacities, including senior counsel, chief financial institutions counsel, and policy director. During his time on the committee, Mr. Johnson led the policy and legislative work for the Financial Institutions and Consumer Credit Subcommittee on issues related to consumer protection and credit, mortgage origination, credit reporting, banking and data security. Prior to joining the committee, Johnson worked for the attorney general of Ohio and the White House Domestic Policy Council. He received his B.A. in economics, as well as his J.D., from the University of Virginia.
ASSOCIATION NEWS
ACCELERATE |
By GWC Warranty
BIG AUCTION WINS
Outside-The-Box Ideas to Stand Out
The used car industry is more competitive than ever before. Everywhere you turn you and your competition are going head to head on the vehicles customers in your area want. Overcoming this obstacle is all about standing out from the crowd. And what better way to step out from the crowd than to step out from your normal acquisition habits? Sometimes the hidden gems are simply hiding in places you haven’t looked before. And once you find them your customers and your bottom line stand to benefit. Hop in the Car Sometimes the best finds reside a few miles farther away than you’re used to. If you’ve been hitting the same auctions year after year, it might be time to extend your radius a bit. You might just score a car that’s what you’re looking for and more for your customers. Hop on the Internet Online auctions may be a new frontier but might just be the ticket to the cars you and your customers desire. Test the waters and get on the web to see if you can find a new frontier for vehicle acquisition. Not to mention if you find some you like you can start finding cars from the comfort of your office chair. Hop on the Phone You might even be able to find some dealers outside of the live or virtual auction lanes. If you’re in an area near a senior home, you might be able to make a connection to get vehicles as new residents are looking to offload them. Or maybe you operate near a college and graduates moving onto new jobs are trading up to a new car. Both scenarios give you the opportunity to find unconventional avenues to score big when acquiring new inventory.
EXECUTIVE DIRECTOR’S MESSAGE Keeping Your Eyes on the Digital World While Living in the Real World
I want to publicly thank our AIADA dealers for all you do! Speaking not for just myself, but for many others, AIADA dealers are the best! AIADA dealers know we live in a digital marketplace. We realize we need to adjust to fit our customers’ needs. This is what I am hearing from some of our dealers: It seems like we are always being told we need to change the ways we reach our potential customers in the social media marketplace. Today’s consumer tends to check it out online first. Your future customer will read about the vehicle, know where to start looking and think they know the best price! And sometimes they see this one: at some stores, if you don’t like the vehicle, you can return for a refund. Scary, isn’t it? I don’t believe any of us really know how to shop online. There are hundreds of apps, all of which say they are right for me. But which app is really right for me? Which app shows me the best price and best value? Today’s car buyer almost always starts shopping in the social media marketplace. AIADA has vendors to help you get the most out of social media, to put your dealership in the digital marketplace. AIADA and our vendors are always researching trends and analyzing the online process to help you have the best position in the social media marketplace. I do enjoy the convenience of shopping online. I want to see all the new types of vehicles in the market and which ones will fit our needs. But in today’s digital world, our AIADA dealers know the importance of relationships! This is not the last vehicle this customer will buy, and we want to show our customers we are someone they can trust! To earn this trust, your customers should know you have the help of the fifth largest independent dealer association in the nation. AIADA and our vendors work hard to find new ways to save you money. Finding the best vehicles is getting harder and harder, but AIADA and our vendors will keep you in the know with the newest technology! AIADA will help you keep up with all the changes in state and federal regulations to help make buying a vehicle problem free for your customer. Furthermore, AIADA dealers understand it’s not just between the dealer and the customers, but also our vendors. AIADA dealers know one cannot be successful without them! Our vendors are working hand-in-hand with our dealers to find out their needs and help them with the newest technology. We
are thankful for our AIADA vendor partners – they show us all the new technology to put us a step ahead of our competition! In today’s digital marketplace, your AIADA dealer knows the importance of relationships! This is the reason AIADA dealers are extremely successful. AIADA dealers are putting the human spirit in the digital marketplace by building a stronger community for all of us to live and raise our families. AIADA will never replace our community with the digital concept. But AIADA will continue to work with our AIADA dealers to know the most effective ways to use social media. You can enjoy all the benefits of our digital/social media marketplace without losing the human touch!
AIADA will never replace our community with the digital concept. But AIADA will continue to work with our AIADA dealers to know the most effective ways to use social media. We are starting a new customer service campaign: “Before you buy your next vehicle, look for the AIADA logo on your dealer’s front door!” AIADA dealers work hard to be the best! Buy from the dealers who invest back in you and your community! If you don’t have an AIADA logo for your door, call us at (205) 942-1000. Become an active member of the fifth largest independent dealers association in the nation. AIADA – Helping Alabama become the best place to own an independent dealership and raise our families. AIADA dealer owned – the power of many! WWW.ALABAMAIADA.ORG AUGUST/SEPTEMBER 2019 AIADA 5
INDUSTRY WATCH | By Auto Remarketing Staff
LATEST SAFETY FEATURES PIQUING INTEREST
Recent Survey by CarGurus While your used inventory probably doesn’t have any self-driving cars – yet – your store already might have models containing the latest safety features a large number of consumers surveyed by CarGurus want. Along with gauging interest in vehicles having features such as a rear-view camera or blind-spot monitoring, the company’s newest automotive consumer research findings showed that over the past year there was a perception shift regarding selfdriving cars. CarGurus learned consumers expressed greater enthusiasm for self-driving car development overall, and also showed a stronger likelihood of owning a self-driving car in the next 10 years. Specifically, the survey found: • Respondents excited about the development of self-driving cars increased from 21 percent in 2018 to 32 percent in 2019, and the respondents concerned about them decreased from 47 percent to 37 percent.
6 AIADA AUGUST/SEPTEMBER 2019 WWW. ALABAMAIADA.ORG
• 28 percent of respondents specified they could own a self-driving car in the next 10 years, more than double the 13 percent from last year. “Consumer sentiment around self-driving cars is changing fast, with enthusiasm rapidly replacing skepticism,” said CarGurus director of customer insights Madison Gross. “These benchmarked results demonstrate that today’s consumers are becoming more comfortable with the idea of either owning an autonomous vehicle, or having them on the road, and it will be fascinating to continue to monitor this perception shift.” While dealers cannot yet go to the wholesale market and find self-driving vehicles heading down the lanes, managers can offer vehicles that have advanced safety features some owners already have or hope to get in their next vehicle. CarGurus’ survey delved into that topic, too: • Rear-view camera: 34 percent already own and 43 percent extremely interested.
•B lind-spot monitor: 11 percent already own and 61 percent extremely interested. •S urround-view camera: 4 percent already own and 51 percent extremely interested. •A utomatic emergency braking: 8 percent own and 45 percent extremely interested. •A daptive cruise control: 14 percent already own and 38 percent extremely interested. •L ane-keep assist: 8 percent already own and 41 percent extremely interested. •D river-attention monitor: 5 percent already own and 37 percent extremely interested. •A utomatic parking: 2 percent already own and 37 percent extremely interested. When looking into which companies consumers trust the most to develop self-driving cars, the survey found Tesla remains atop the most trusted, and increased its lead over last year. The next-most-trusted companies to produce a self-driving car are Toyota and Waymo. Seventeen percent of respondents selected “None” for which company they trust, which is a shift from the 27 percent in last year’s survey. CarGurus’ research looked into which vehicle owners would consider buying a self-driving car from their current brand, if it were available. Survey orchestrators found: •5 6 percent of Honda owners would consider
108 people saw your review!
ONLINE MARKETING | By Kenny Atcheson
buying a self-driving car from Honda. •5 1 percent of Toyota owners would consider buying a self-driving car from Toyota. •4 3 percent of Chevrolet owners would consider buying a self-driving car from Chevrolet. •4 1 percent of Ford owners would consider buying a self-driving car from Ford. CarGurus asked respondents whether they were ready to take a ride in self-driving cars provided by services such as Uber and Lyft. The survey showed: •3 5 percent of people who currently use ride hailing services are likely to take a ride from these services in a self-driving car. • Of those who currently use ride hailing services, 22 percent trust Uber the most to develop a self-driving car and 13 percent trust Lyft.
GOOGLE REVIEWS
3 Critical Updates
Google techs have been busy changing things again, including three critical updates. First, they are proactively asking Android phone users to write a review on Google for each place their phone has been physically located within the last few months. It is amazingly accurate. In one session I was asked to give a rating on Google about my experiences at places I had visited in South Dakota, Orlando, Tampa, Dallas, San Antonio, Phoenix, Las Vegas, Henderson, and more. My Android phone tracked the restaurants, hotels and dealerships I visited during that same time period. What Google techs did not know was I wasn’t a customer at any of the dealerships I visited. I was consulting and conducting employee training on customer service, sales, and online reviews. But I was asked for a review anyway. Here’s what stands out: If someone visits your dealership and does not buy, a Google prompt will still ask for a review. Is a non-buying customer more likely to write a negative review than a customer who buys? Second, Google is incentivizing people to write a review. Google has offered free access to Google
People like your review
Congratulations, your review helped people over 100 times! Millions of people rely on reviews like yours to learn what places are like.
tools that are not available to everyone else at this time. You can’t incentivize customers to write a review, but evidently Google muckety-mucks can. In another update, they are encouraging people through positive reinforcement to write more reviews on Google, such as the pictured example I recently received from Google. Having spilled the beans about Google’s inner workings, here are some dos and don’ts regarding online reviews. Don’t •Don’t write a review about your own business. • Don’t let employees write a review about your dealership. • Don’t write negative reviews about the competition. • Don’t exchange positive reviews with your buddy’s business. • Don’t incentivize customers to write a review. Do • Do recognize that the way your team treats people has a big impact on reviews, but it’s not all that matters. You need to do more. • Do respond to all reviews. It shows customers, prospects and Google powers-that-be you are listening. • Do use a system to keep most negative reviews internal while at the same time boosting positive reviews into the public realm, such as on Google. Kenny Atcheson is the founder and president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. His website can be found at www.DealerProfitPros.com.
WWW.ALABAMAIADA.ORG AUGUST/SEPTEMBER 2019 AIADA 7
SALES MATTERS |
By John Chapin
MENTAL TOUGHNESS AND SALES SUCCESS
Train to Overcome
In a recent article, I mentioned the five foundational personality qualities necessary for sales success: people skills, mental toughness, work ethic, attitude, and character (honesty and integrity). If someone is missing any one of these, they won’t make it in sales over the long haul. Of the five, I find the one that is most overlooked is mental toughness. Not just in the initial search when looking for a new sales rep, but also after the person is hired. When someone comes to you, they either have good people skills, work ethic, attitude and character, or they don’t. You can’t teach those. They also come to you with some level of mental toughness. It may be high, low, or somewhere in the middle, but they at least have some. That said, mental toughness is a skill that can be, and should be, developed after they’ve been hired, similar to sales skills and product knowledge. This is where many companies miss the boat. While most companies have some form of product and sales training, very few do any mental toughness training, and mental toughness can make or break a salesperson. Why mental toughness training? There’s a saying that 90 percent of life is mental, or as Yogi Berra reportedly said, “90 percent of life is half mental.” Whether or not you like math or Yogiisms, one thing is true: sales – like life – is pretty much 100 percent mental. Think about it. One hundred percent of our waking hours, and most of our sleeping hours, are done through our brain. With the amount of rejection required to be successful in a sales career, one needs to have a high level of mental toughness. When people fail at sales, 99.9 percent of the time it’s due to a lack of activity: they didn’t make enough calls, talk to enough people, or get enough qualified prospects to make enough sales. What causes the lack of activity is either fear of rejection (addiction to the approval of others), complacency (the comfort zone), or an inability to persist and persevere when they encounter repeated failure and rejection. The cause of each of these is a lack of mental toughness. What is mental toughness training and how do you do it? In short, mental toughness training is training people to overcome the mental hurdles they encounter in sales and in life. Essentially, it’s developing someone’s grit and determination.
8 AIADA AUGUST/SEPTEMBER 2019 WWW. ALABAMAIADA.ORG
You do it by discovering what they’ll fight for and what they’ll die for and then helping them use those emotional hot-buttons when they are down or otherwise unmotivated. This requires a deep dive into the psyche via targeted questions that cover the past, present, and future in all the major areas of life. What you’re after here is their why. Why do they do what they do? Why do they get up in the morning and go to work? Why is it critical they succeed in their career? A powerful why is the key to having a high level of mental toughness. As Nietzsche once said, “He who has a [powerful enough] WHY to live, can bear almost any HOW.” In other words, if the why is powerful enough, a person will go through almost anything to achieve their goals. That means they’ll push through rejection, won’t allow themselves to get complacent, and even when they are feeling down and beat up, they’ll still have the persistence and perseverance to keep moving forward. While finding someone’s why involves some extensive questioning over several weeks, in short, you discover someone’s why in two areas: pleasure and pain, which is the language of the brain. On the pleasure end, what are they running toward? What do they want for themselves and the people in their lives? Do they want a house on the lake or a new sports car? Do they want to send their kids to a specific school? Do they want to take a trip around the world with their family? Do they want to retire and travel? What are their goals and dreams, and how much money do they need to make those goals and dreams a reality? Start with goals but keep in mind for most people positive goals aren’t enough to keep them motivated long-term. As a result, we need to leverage pain. Pain is a more powerful motivator than pleasure for humans. What “pain” is someone running from in the present, hoping to avoid in the future, or striving to overcome from the past? What has happened to them that motivates them? Did they get fired from a job? Did someone tell them they’d never amount to anything? Is there an ex-spouse or ex-boss they’re going to show they made a mistake? Are they afraid of not having enough money? Are they afraid of how they’ll feel if they don’t provide for their family? Where are the issues, or the pain? What are the motivators or demotivators behind those? When you think of motivation, think of the 3 Ps: people, possessions, and proof.
A powerful why is the key to having a high level of mental toughness. As Nietzsche once said, “He who has a [powerful enough] WHY to live, can bear almost any HOW.” What do they want for the people in their lives, including themselves? What possessions do they want and what values do those possessions fulfill, such as peace of mind, security, love, and excitement? And what do they have to prove to themselves and others? Do they need to prove they are worthy, important, capable of taking care of their family, or good enough? When you discover what’s truly important to people, what they are willing to fight and die for, then you and they will have the necessary emotional hot-buttons to push for them to get through fear, step out of their comfort zone, and get back up after they’ve been knocked down. John Chapin is a sales and motivational speaker and trainer. He has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling.com or email johnchapin@completeselling.com.
MANAGEMENT MATTERS | By Danny Delich
SMALL CHANGES MAKE BIG DIFFERENCES
Cost-Free Ways to Increase Profits (Part 2) Even though independent dealerships operate on more restricted budgets than the big franchised dealerships, there are a number of small, cost-free changes they can implement to drive an increase in profits. As we discussed in Part 1 of this series, fancy advertising campaigns, costly building renovations, and giant sales events aren’t the only ways to increase profits. This 2-part series discusses 10 small, costfree changes independents can implement to make big differences in their profit margins and overall morale. In the previous article, I detailed five “soft changes” independents could implement separate from interaction with the customer. In this installment, I’ll share five “concrete changes” that will help you increase your profit margins once you’re working with the customer. Make Five Extra Follow Up Calls Per Day Once a prospect leaves, it’s easy to write them off and move on. Perhaps you make it a point to follow up on a slow day, just to see what turns up. Your prospect came to you because they wanted to buy a car! Making five extra followup calls per day will result in (at least) one extra sale per week. That translates to 52 extra vehicle sales per year. Follow Up Immediately According to the NADA, you have 72 hours from the time a customer walks onto your lot to the time they buy a vehicle. If they leave and you don’t follow up, they’ll purchase a car from your competitor within 36 hours. Make the follow up calls! Add an Additional F&I Product Anyone who’s ever worked in retail – at any level – can tell you the value of an “add on.” Most times, all you have to do is ask. Make sure to ask your customers to buy your F&I products. With some simple training, your F&I manager can become on of your best auxiliary up-sellers. Bird Dog Nothing motivates referrals like a cash reward! Offer a $100 “bounty” to anyone who refers a buying customer. Make sure to mention it to each customer on delivery – once motivated, they can be fantastic salespeople while showing off their new vehicle to friends and family. Remember Your Friends! We all appreciate being appreciated. Keep a spreadsheet of your customers’ birthdays and contact information. Always send a “thank you” card to buying customers and send them a birthday card. In a sea of dealerships it’s the small considerations that make you stand out. You have your foot in the door because you just sold them their newest vehicle. They trust you. Don’t let them forget you during the couple of years until trade-in!
Earn more money! Implementing the 10 small, cost-free changes I presented in this 2-part series to increase your profits may seem daunting – especially if you’re unfamiliar with the technology or programs involved. However, the opportunity to earn extra profits is worth the time and effort to learn and grow. Reaching out to your IADA can be a valuable
first step in making the change. They have the resources and connections to help you make it happen. So dust off that bucket list – especially the items you were afraid you couldn’t afford. You’ve just been given a roadmap to a cost-free bump in your profit margin. Make the most of it. Danny Delich is senior vice president at Peak Performance Team.
WWW.ALABAMAIADA.ORG AUGUST/SEPTEMBER 2019 AIADA 9
WASHINGTON UPDATE
| By Shaun Petersen
NIADA GOVERNMENT UPDATE Latest Government Issues and Activity
R E G U L ATO RY
The Federal Trade Commission reached a settlement with dealership software provider DealerBuilt over data security failures that allowed hackers to gain access to the personal information of more than 12 million consumers from the databases of 130 dealership clients. The 2016 data breach was traced to an unsecured storage device installed on DealerBuilt’s network by an employee. The device created an open connection port that allowed transfers of information. The breach was discovered by a dealer who found his customers’ data online and alerted DealerBuilt, his DMS provider. According to the FTC, DealerBuilt was made aware of the open port on its storage device by a news reporter. The FTC cited LightYear Dealer Technologies, known commercially as DealerBuilt, for violating the FTC Act, saying its failure to employ reasonable security measures was an unfair practice. More significantly, it also cited violations of the Safeguards Rule, claiming DealerBuilt meets the Gramm-Leach-Bliley Act’s definition of a “financial institution.” The violations included failing to develop, implement and maintain a written information security program; failing to identify reasonably foreseeable risks to the security, confidentiality and integrity of customer information; and failing to implement basic safeguards and regularly test their effectiveness. The settlement prohibits DealerBuilt from handling consumer data until it has a security program in place that complies with Safeguards Rule, and requires the company to obtain third-party assessments of its security program every two years. It also requires a senior DealerBuilt officer to provide the FTC with annual certifications of compliance. The FTC does not have authority to seek monetary penalties for a first violation, but if the company violates the settlement, it could be fined up to $42,530 per violation.
NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities.
L E G I S L AT I V E
Sen. Richard Blumenthal (D-Conn.) has again introduced a bill – with Sen. Ed Markey (D-Mass.) as his co-sponsor – to ban the sale of used vehicles with an open recall. The Used Car Safety Recall Repair Act would require used vehicle dealers to repair any outstanding safety recalls before selling, leasing or loaning them to customers. Blumenthal called it “a no-brainer measure to protect American consumers and our roads from unsafe cars.” Blumenthal has introduced similar bills multiple times over the years but all have been defeated before coming before the full Senate for a vote, thanks in part to NIADA, which opposes such legislation and has lobbied extensively against it. NIADA has already met with legislators to advocate against Blumenthal’s latest recall bill. While NIADA opposes legislation banning sales of used cars with open recalls, the association strongly recommends that its dealer members check their inventory for any open recalls and have them repaired prior to sale if possible. If the repair cannot be completed immediately – primarily because parts are not available – NIADA strongly recommends dealers disclose the existence of the open recall to their customers at the time of sale.
Region III vice president Scott Allen hoists the PAC Cup to celebrate his region’s victory in the 2018 competition, which raised a total of $212,000 for the NIADA-PAC Fund.
PAC
The PAC Cup competition is officially underway. The friendly fundraising competition pits NIADA’s four geographical regions against each other, with the Cup going to the region that contributes the most to the NIADA-PAC Fund through the National Policy Conference in Washington D.C., which is coming up Sept. 23-25. Last year’s competition raised a record $212,000 for the PAC Fund – more than double the previous mark. For the first time, Region III, representing the nation’s midsection, won the Cup, barely edging four-time defending champion Region II (Southeast). This year, more than $22,000 has been contributed so far, with Region I taking a slim early lead over Region III in the competition. The PAC Fund allows NIADA to contribute to candidates for office who will protect the interests of the used vehicle industry and small business. The PAC Cup will be awarded at the Tuesday night dinner during the National Policy Conference, at which NIADA will also honor legislators who support our industry. During the NPC we’ll also present the third annual NIADA Legislator of the Year award to a lawmaker who has made an outstanding effort to advance the cause of independent dealers and small business. The winner will join previous recipients Rep. Mike Kelly (R-Pa.) and Rep. Roger Williams (R-Texas) in that prestigious honor. The NPC includes briefings with federal regulatory agencies that oversee the used vehicle industry – and your dealership – and is highlighted by the Day on the Hill, your chance to meet face-to-face with members of Congress to tell them your story, your concerns and how your business and customers are impacted by the decisions they make. For more information or to register, visit www.niadapolicyconference.com.
10 AIADA AUGUST/SEPTEMBER 2019 WWW. ALABAMAIADA.ORG
GRASS ROOTS
Colorado IADA is among the organizations fighting an executive order issued by Gov. Jared Polis proposing to adopt California’s strict standards on the percentage of zeroemission vehicles offered for sale by new car dealers. The new standard would mandate that 10 percent of manufacturers’ fleets in the state must be zero-emission vehicles, such as fully electric cars. The Colorado Air Quality Control Commission announced it will hold a hearing this month on whether to adopt the proposed ZEV Rule. State officials and the major auto manufacturers have had talks but have not been able to agree on a voluntary alternative. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
WWW.ALABAMAIADA.ORG AUGUST/SEPTEMBER 2019 AIADA 11
PRODUCTS & SERVICES | By Auto Remarketing Staff
“NO QUESTIONS ASKED” TradeRev Unveils Pilot Program When wholesale vehicle buyers feel they did not get what they pay for, they often must go through a cumbersome process to return the vehicle. With a new TradeRev pilot program, buyers can now return vehicles with “no questions asked.” TradeRev, a business unit of KAR Auction Services, has been piloting what it describes as an industry-first return policy since May. “With No Questions Asked, we’re making things as simple as possible for buyers – you don’t like the car, you get your money back,” said TradeRev executive vice president of global operations Keith Crerar.
Through the pilot program, buyers can notify TradeRev within two business days of vehicle delivery to use the return policy. At that time, TradeRev refunds the purchase price less any initial transport charges and buy fee. TradeReady vehicles (inspected by TradeRev), as well as as-is vehicles, are eligible for the program. The company will continue the return policy as a pilot, with plans to roll out availability to all users over the next year. TradeRev president Becca Polak said TradeRev is working to improve the user experience, eliminate friction and build
customer trust. “When buyers feel they didn’t get what they paid for, they enter an arbitration process that involves the seller and can take time,” Polak said. “For dealers, time is money. Our No Questions Asked return policy helps dealers buy with confidence, knowing they can return a vehicle if it’s not what they expected and get their money back quickly.” Crerar said, “The policy aims to remove all potential pain points for the buyer and is a prime example of how TradeRev is standing behind its commitment to make buying fast, fair and easy for dealers.”
MARKETING MATTERS | By Kenny Atcheson
ANOTHER STRATEGY MAY GET REGULATED The Future of Ringless Voicemail
A new court case may have major implications for an effective and inexpensive strategy. First, here is a history of a few other historical examples. Text marketing offers 90 percent open rates – better than anything else. Businesses learned of these high open rates and quick response rates from marketing companies such as Dealer Profit Pros and a lot of dealers started doing it. Consumers got annoyed and wrote letters to Congress. As a result, Congress and/or FCC heads made it tougher to succeed by texting customers. Popups on websites were all the rage when they were first devised. They couldn’t be ignored. Well, popup blockers took care of that. Google Adwords even made it against their terms and conditions to send an ad that contained a popup to a page. Facebook Ads offered great targeting. Facebook has more information on Americans than the federal government. I did some pro bono work for a new Christian preschool in my area. I was excited to use targeting based on “geographical location,” “parents with kids between the ages of 1 and 5,” and “parents who identify as Christian.” There was only one problem. Facebook removed the religious affiliation targeting. They’ve since removed lots of other targeting after Zuck’s visit to Congress. Cold-calling – although a pain – was effective and had no cost other than labor. If it was being done by a commission-only
12 AIADA AUGUST/SEPTEMBER 2019 WWW. ALABAMAIADA.ORG
salesperson there was no upfront cost – only commissions paid after the sale. It was great. Then government muckety-mucks came up with the Do Not Call list. And now a new court case… When ringless voicemail first came out, I jumped for joy. It was fast, inexpensive, and a whole lot less annoying than robocalls. Even if robo-calls were 100 percent legal and compliant, I don’t like using them because nearly everyone is annoyed by them. (*Pro tip: don’t annoy potential customers.) A ringless voicemail is as it sounds. Ringless voicemail providers assured, “You can get tens of thousands of voicemails to potential car buyers without their phone ringing, within minutes for very little money – and they won’t know it’s automated.” Personally, I have found most consumers are not fumed by receiving voice messages, but they despise robo-calls. Unfortunately for advertisers, the U.S. District Court for the Southern District of Florida has concluded ringless voicemails are “calls” under the TCPA and therefore subject to its regulations. In the Schaevitz v. Braman Hyundai, Inc. case, the dealership used a ringless voicemail provider to transmit unsolicited pre-recorded voicemail messages to individuals’ cell phones. None of this article is meant to be legal advice. I am not an attorney. However, in my personal opinion, this
Florida case could lead to nationwide recognition of the outcomes of the case, meaning the Do Not Call list will apply. What Does it Mean? This article is not meant to discourage or encourage any of the strategies mentioned thus far. Many still work well, just not as well as they used to because of regulations. Or they require further analysis and rules to be adhered to. There are definitely two things every dealer should do: • Use a multi-media approach. The more media strategies you use, the less likely a new rule, regulation, or law will affect your business. In addition, different people respond to different types of media. • Use strategies that will never be outlawed or overly regulated. Direct mail and referrals are two of those strategies. The United States Postal Service is not going anywhere. It legally has to exist. There are a number of advantages to using direct mail in our 2019 Direct Mail Quick Tips Guide. Email jean@DealerProfitPros.com if you would like a free copy. Referrals won’t be outlawed either. There may be limitations on paying for referrals (check with your attorney) but word of mouth will always be effective – if you treat people awesomely. Kenny Atcheson is the founder and president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. His website can be found at www. DealerProfitPros.com.
INDUSTRY NEWS
| By Auto Fin Journal Staff
EQUIFAX OFFERS DATA TO FINTECH SANDBOX STARTUPS
Promoting Technological Innovation Equifax is sharing in hopes of cultivating technological innovation. The global data, analytics and technology company recently announced a joint collaboration with FinTech Sandbox to help drive global fintech innovation. Equifax highlighted that startups can now leverage various forms of consumer and commercial data from the company in an effort to help these new businesses develop products for the benefit of the industry and consumers. Nonprofit FinTech Sandbox promotes innovation in the financial sector by making data and infrastructure available to well-qualified fintech startups. In return, Sandbox startups collaborate with current and past residents by sharing learnings and advancements with respect to the fintech ecosystem. Participating startups pay no fees, and no equity is taken, according to a news release from Equifax. In addition to data, Equifax said it will give ACCELERATE |
analytical support to the Sandbox by allowing access to its Ignite portfolio of data and advanced analytics solutions. The portfolio can securely and comprehensively support the full analytical lifecycle – from data access and transparency to visualization and deployment – using a single, connected suite of advanced analytics processes, technology and tools. “The fintech industry is moving fast, and I’m so proud that we have an opportunity to collaborate around our shared mission for advancing the industry,” said Equifax AtlFi and fintech leader Sharla Godbehere. “We look forward to helping influence the Sandbox’s next generation of leaders with our data and analytical tools. “We’re also offering our expertise in this space. Being a fintech company, we understand the challenges of bringing all the pieces together to make a product work. This is an exciting opportunity to partner and share our personal insights and experience
with these startups.” Equifax has earned a spot on the IDC FinTech Rankings list consecutively for the past 15 years since it has been produced. It has one of the most comprehensive vendor rankings within the financial services industry.
By GWC Warranty
MAKE IT A BIG YEAR WITH A MENU
Land More VSC Sales
Selling more service contracts and higher quality F&I products all starts with how you present them to customers. If you do it right and do it often, you stand to make big gains in the F&I office. It’s been proven time and again that running through your menu of service contract options in a strategic way is the best way to land more VSC sales. Stick to the plan and you can look forward to a profitable uptick in F&I business. Consistency Is Key A menu sell is going to work if you do it every time with every customer. Anything less and it’s nothing more than a shot in the dark. You won’t land a VSC sale every time, but your chances only improve with each time you go through the full presentation – not to mention the practice you get along the way. Start From the Top Executing a masterful menu sell starts at the highest level of coverage you offer. Working your way backwards through the menu highlights the components and
coverages that drop off as you decrease the coverage level. This points customers in the direction of making a decision on what certain components and coverage perks are worth to them. And when a customer makes the decision on their own they’re more likely to feel they bought something rather than being sold something. Ask the Right Questions It’s important to tell a story to help customers understand why they need a VSC. The best way to go about this is to ask questions to understand what matters to a customer. Are they looking for a commuter car? Or maybe it’s a customer who prioritizes style and image. Whatever it is, digging in to understand what customers find important about their vehicles can shape your story. For the commuter, you can sell practicality and protecting their job. For the image-conscious buyer, a VSC helps protect their investment and get the vehicle back on the road quickly. WWW.ALABAMAIADA.ORG AUGUST/SEPTEMBER 2019 AIADA 13
SOCIAL MEDIA | By Kathi Kruse
TOP SUCCESS OBJECTIVES & SOCIAL MEDIA METRICS
Optimize Your ROI
One of the best things about social media Here are the top five dealership business marketing is that it’s measurable. objectives we encounter at Kruse Control, I’m still caught off guard when I hear some including the relevant social media metrics dealers don’t track their social media metrics you’ll want to track. or review their data. But I do understand, Retain Current Customers because so many dealers truly aren’t sure •R each. Reach is an important social metric what metrics to track or what the data might for all business objectives. However, it’s far indicate. easier to sell to existing customers than it is Defining the right social media metrics is to strangers. key to meeting dealership business objectives •E ngagement (comments, likes, shares, and makes it so much easier to measure ROI retweets, re-grams). Engagement is the (return on investment). kingpin of everything social. How are Two factors weigh heavily in existing customers engaging with your computing ROI: costs and metrics. content? Costs are the investments required to meet • Reviews. Customers do not consume in dealership objectives. Many dealers don’t silence. What common words or themes are measure and analyze each cost associated with customers saying? social media marketing: • Return visits from social media. How are •A ttention (there’s a reason it’s called “paying you tracking visitors to your website? What attention”) tactics are you using to engage them on an •L abor/Human Resources ongoing basis? •F inancial Engage New Potential Customers • Training • Increase in likes and followers. Is there a •O rganizational Development specific plan to increase your audience? •S ocial Technology Which platform, by how much and by •A gencies and/or Consultants when? •P aid Media (i.e. Facebook ads) •C ontent. What types of content are getting • Employee Engagement most engagement? Metrics are how you measure the result of •N ew opt-ins from social media. Are you your investments. One accurate measurement offering valuable information at no-charge is worth a thousand expert opinions. in exchange for contact info? Tracking the right social media metrics to •C ustomer acquisition. How many, at what determine ROI is challenging. With real-time cost, over what period of time? data providing cues to re-work certain tactics, •A udience demographics. Are the people it’s crucial to designate someone whose job you’re reaching actually your target is to track and analyze. Restructure of the customers? dealership’s organizational framework may Improve Customer Satisfaction be required. •R esponsiveness to messages and A marketing team’s comfort in working reviews. Everyone likes to be heard. with data and analytics is critical. Tracking Responsiveness gives prospective the right metrics is important but so is customers a glimpse of how you handle knowing what to do once you have the concerns, issues and questions. data, especially when things aren’t going as •R esponse time. Forty-two percent of social planned. customers expect a response within 60 Measuring metrics and analyzing results minutes. Is your store prepared to handle is formidable and you should take careful social media inquiries within the hour? consideration. Sometimes a social media •O nline reviews. What’s the company’s audit is called for. Due to the unique nature of practice for building a successful review the data, and the social aspect of the medium, funnel? it’s essential to isolate issues and determine •N egative feedback (reviews, hide posts, true success. unlike page, unfollows). How often is it Achieving dealership objectives with happening? How is this handled within the social media requires experiential knowledge organization? to make metrics meaningful. If you need Establish Earned Authority and Trust guidance, seek out trusted advisors who can • Traffic and time on your website help you accurately measure and analyze your from social media. “Social signals” let results. Google know your site is being talked Tracking and auditing results is about. Hopefully, there’s a live human most beneficial when you know the right managing your social channels to keep the metrics to measure. engagement high.
14 AIADA AUGUST/SEPTEMBER 2019 WWW. ALABAMAIADA.ORG
• Links to your site from social media. When social signals (traffic from social sites) turn into social shares, further value comes into play. People share good content and link to your site. Social media then becomes a huge win for SEO. •A mplification (shares by others). This is evidence your content resonates. Sharing provides “social proof,” which is a psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior for a given situation. We view a behavior as more correct in a given situation to the degree we see others performing it. • Opt-ins for “free helpful content.” One of the best ways to develop trust is to offer valuable tips/information at no charge in exchange for an email address. Have you explored this tactic? Have you considered a putting together a PDF with car buying tips? • Video views. How much time did people spend viewing your videos (such as walkaround or “how-to” videos)? How many watched each video all the way through? Increase Sales • Facebook ad spend vs results. Are you setting goals for Facebook ads? Does your vendor track these goals? How did each ad achieve its intended goal? • F acebook ad relevance. How did your offer resonate with the intended audience? • Organic vs paid engagement. Are your posts resonating with your audience before you pay to promote them? •G rowth of audience who visited your website from social. Which campaigns brought the most visitors? • Leads. Are you tracking results using dedicated landing pages and lead forms? • C onversions. How many sales converted from Facebook ads? •R evenue generated. What is your monthly revenue earned from Facebook ads? Determining the costs and tracking the right social media metrics will provide the data to measure your actual return on investment. Use these recommendations to put optimal processes in place. Your marketing decisions will become better informed, your social media will be more successful and the puzzle pieces will finally fit together on social media ROI. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@krusecontrolinc.com.
Choose Your Conference Experience
ELITE Package
Express Package
Early Bird:
Early Bird:
Regular Rate: $895
Regular Rate: $695
$695
• Training for new & experienced operators • Network with industry experts • Capital to fund your operation • Collections & underwriting training • Best practices that work today and in the future • The latest marketing strategies • Legal and compliance updates • Exhibit hall with all the latest products & services • New industry technology • And MUCH MORE!
REGISTER NOW
• All Educational Sessions • Includes General and Breakout Session • Exhibit Hall Access (4 sessions) • Includes Food and Beverage • Separate Check-in Counter • VIP Meet & Greet Reception • Monday, VIP Sky Bar Party
Marriott Marquis Chicago McCormick Place 2121 S Prairie Ave Chicago, IL 60616
$495
• All Educational Sessions • Includes General and Breakout Session • Exhibit Hall Access (4 sessions) • Includes Food and Beverage
Room Rate: $199/night + tax Reservations: Phone - 312.824.0500 (Reference BHPH Conference)
Visit: NABDsubprimeconference.com or call: 832.767.4759 1
BHPH DEALER
→ AUGUST 2019
AUGUST 2019
← BHPH DEALER 1