Author Archives: Gary May

How And When Do You Generate Your Traffic? Your Own Program Or Someone Else’s This-For-That?

Whether or not the money lasts in the government's C.A.R.S./Cash For Clunkers program, one thing is clear: automotive retail still waits for someone or something outside of the dealer to drive the traffic. With few (and great) exceptions, people started hitting lots hard over the weekend.The question remains: what happens that's entirely up to you before and after programs?

A couple of OEMs started a little early by creating buzz around doubling or even advancing dealers money. Dealers even sent out email and direct marketing (along with radio and newspaper….aaaaarrggggh!) to promote the fact that they'd have the CARS program at their dealership! Folks, that's just not enough. Remember that people what to know what's in it for them! If they can get $3,500 or $4,500 (or more) for their car ANYWHERE, why are you yelling that you simply have the program? Is your banner bigger? Big (something) deal!

Why not detail how you understand the program's details, that you have a special team at the dealership to promptly handle customers, that you have a 'Clunkiest of Clunkers' competition for a prize or that your staff's outfits are "older than your trade!' and have them come in powder blue ruffled suits? Now, I'm not saying that you need to look like your favorite scene for The Wedding Singer or a bit part in one of my favorite industry guy's videos…what I am saying is that you have to get your head out of the "same place, same thing" mentality and start thinking about how YOU drive traffic.

No consumer typically wakes up in the morning and says "I've got to make it by some dealerships today and spend some time at each one!". That should not be news to anyone. What differentiates you (or doesn't) is the special events, programs and 'why-to-buy-here' calls to action that invite people in. Why continue to fight over the same piece of pie when you can make yours bigger? And with the current economic issues, simply take a bigger piece of a smaller pie! But your way of doing business can't stay in "wait and see", "hold on for 90 more days", "not going to do anything just now" or "watching how effective (fill in the blank)'s promotion goes before we do anything" mode.

Look at your numbers, especially your regional/area performance. Losing sales in your PMA? Why? Asked your customers why lately? How many times have you blind shopped the competition? Did you optimize your website in the last 30 days (or simply put up a C.A.R.S page and/or compete for the same keywords)?

To expect business you need to plan for business:

  • Listen to everyone (yes, your staff is part of everyone)
  • Understand trends and performance
  • Track and adjust in real time
  • Communicate and set expectations
  • Brand, brand, brand, brand, brand, brand, brand

And remember, you can't live on someone else's brand (including the government's). It is also important to be real. If you don't understand something, say so! Ask questions or your vendors, partners, consultants and industry resources (as long as you are actually using them). If they can't do something, ask them to it and if they can't/won't: drop 'em like they're hot.

See the traffic on the highway? They are all going somewhere. They either have to or want to go where they're going. You might just end up being more people's destination if you play your cards right, plan to be successful and don't reply on ANYTHING outside your place of business to bring in the business.

Be a 'traffic-generating' leader, not a 'take what's left' follower…

Best Practices: Professional Insight, Powerful Results

July 31, 2009 by Gary May 0
“That’s What She Said!”…and other lies since you’re just not listening

You were the class clown, your friends' center of attention, captain of the sport team, oldest in your family, standout of sorts in various jobs and now you lead the sales ranks…and you're flat out lucky! Considering the last time you listened actively was to get an extra scoop of ice cream in eighth grade, it is hard to understand what, outside of ambition, fortune and favor, has you topping the charts. As a passive listener, you can remember that your first customer ever made a nice comment about your tie…

OK, that was a little over the top, but hopefully the message hit home.  How do you know what he said, she said, they said, if you're not listening!?!? Consider the amount of leads that are not sufficiently handled, floor ups that aren't greeted correctly (let alone qualified), prospects that aren't followed up with in a timely, contextually relevant way (sending a pre-populated eNewsletter DOESN'T qualify) and you can start to understand how broken things are for consumers.

Most dealers pay for a CRM, typically in addition to their (substandard but used for 'oversight') factory lead management system, and don't even use it. Store by store, a visit can reveal that most of the notes in a customer's file (if there are any) are easily described as archaic. Ask a salesperson to explain the notes, you'll typically hear "I don't have time to put in more detail" and "I've spoken with them so I'll know what's going on when they come in to buy the dang car". You might even hear "it's my customer, not the store's" from a more honest staffer.

Task the same salesperson with fundamental questions about the customer, family, kids, how long they've researched/shopped for the car they're buying,what their third color choice or second option package preference is and you might get a more educated look from a deer looking at the front of your car in the middle of North Dakota on a desolate highway that you're driving 95 miles per hour on at 2:38 in the morning. You know that look…

"What she said" is so dang darn important that, gosh forbid the person actually felt you cared about them, they might recommend more customers for you in the next three months than you had from all your past customers in the last 12 months. People, it starts with really listening. No, REALLY listening. Look at it this way: you were so lucky to have it the way you do. Two ears, one mouth. Like mom said, use them in the same ratio.

Try listening for a week. You'll get some interesting changes in your business., Do it for a month, you'll actually create a trend. Make it happen for six months and you'll likely never be held back like you were in the past. Take notes. Document how your business has shown you new opportunities. That might happen when you listen to your customer talk about something that they're passionate about. You'll actually pick up on it, share it with your boss before they leave in their new car…next thing you know your dealership is involved with an amazing event in your market that helps sell another 25 cars. All because you listened.

Listen, confirm, validate, document, review, share, store, leverage…and then listen again. It's the greatest tool you'll ever have, besides that whosimawhatsie you have our your desk that you've not taken the time to use once since the seminar you received it at 11 years ago!

Best Practices: Professional Insight, Powerful Results

July 22, 2009 by Gary May 0
The Shiny New Tool Loses Luster: When The Belt Is Full

Come on, let's admit it. If someone launches a new tool, application, service, widget, doohickey, gizmo or gadget, we'll all explode. We are so full of tools, you likely feel like the Craftsman section at your local Sears…

Fact is we can probably expect more and that is what keeps pushing the bar forward. With the store closures, OEM staff reductions, agency layoffs and more you can likely look forward to more consultants, new software, increased industry service providers and just plain more 'stuff'.

And considering how most owners, GMs and GSMs buy stuff, there may be cause for more companies wanting to get their piece of a smaller spend pie because they're 'new, shiny, better, sexier or have great advertising'. Folks, we're not using all the tools you have currently, even if you don't really know how to use them in the first place (Ok, you can put all of your hands down because we know you haven't seen your so-called rep in nearly a year who promised the latest training you needed months ago).

More than ever, it's not about sticking with who you already have, simply saving a buck or not taking meetings with new vendors (excuses today are a penny a dozen). Simply put, you get what you pay for. If you are saving $200 a month between one service and another, you had better know what you're missing. If you're not investing in your staff's education/training (yes, I hate that word but the old guard will understand it), you might as well lower your unit forecast by 25-40%. And if you're not willing to take 'another meeting', you might as well hand a few extra dollars to your competitor down the street and take the rest of the week off.

Overwhelmed by technology? Don't ignore it, please! Don't understand something? Get a non-manager in your office that will use the tool/service and get THEIR take on it first hand, don't just give them a sell sheet and have them make a decision.

Over the next couple weeks, IM@CS is going to take a deeper dive into services available to the industry and write 'em up. We'll cover mobile, chat and inventory to start and see where it takes us. We hope to clear up misconceptions, especially around price since nearly everyone seems to be completely misguided on saving a buck versus being more effective. And then we'll try to take it from there…hope you get to use the information in profitable ways!!

Best practices: Professional Insight, Powerful Results

July 10, 2009 by Gary May 0
The First Half Is Done…Are You On Track Or Betting On The Second?

It is always a reality check (especially in sales) to review the mid-year numbers against goals. Even the most sophisticated of salespeople take the opportunity to evaluate, adjust, reassess, communicate and plan. Many others blame, accuse, defend, deflect and compromise, but rarely do what it takes: listen and learn. It's also the time of the year when middle-management does the infamous 'dance' (you know what I mean if you are in middle-management or deal with them).

Consistency is the key, learning is the foundation, staying up to date and applying methods are the tools, guidance is the framework (read: not management), teamwork is the conduit, commitment is the path and success is the goal. For those that truly stayed on the road to their goals, using everything just mentioned, the first half was likely less of a mystery than for everyone else. Maybe you even are ahead of the game!

Success never comes overnight, rarely is seen in the company of also-rans, doesn't hide from the real work and tends to stay around a great circle of influence (read: not the water cooler). If the first half of 2009 wasn't good for you, it's time to see the opportunities that exist for change, improvement, growth and dedication. All of us fail, which is a huge part of success. But if you continue to fail perpetually, it is time for more than self-talk and a spa day!

The second half of your year is in your control, up to you and completely dependent on what you believe will happen…plus a whole lot of action on your part! One of the benefits I continue to enjoy is the input from some of the best minds that anyone would want around them. People that all believe the second half is their half and are willing to do what it takes to make that happen.

Having missed my 'numbers' in the past, having been on 'losing' teams, having decided not to give it that little 'extra' effort and knowing from personal experience both how far and how close I've been to having that great half, it would be in your best interest to do whatever it takes to be part of the group of people that finish 2009 with a smile on their face.

So are you on track? Are you on the right track? If you just had to look down, find someone that will help you to win. If you're headed to your goals and dreams with nothing stopping you, that applause you hear is for you…rip up the second half!

Best practices: Professional Insight, Powerful Results

July 5, 2009 by Gary May 0
AutoTrader.com Wants You To Know: Chip Perry and Alan Smith Video

Picture 31 AT_Perry_SmithAlan Smith, Sr. Vice President of Dealer Sales, and Chip Perry, CEO, have created a video to share their take on the current issues shaping AutoTrader.com and dealership business today and what they're doing to deliver more value to the market. This is definitely not something you see often in any industry, let alone automotive, so chances are watching the whole video would be beneficial especially if you're an AT.com client.

With the uncertainty in our business and the necessity for more companies to be proactive and 'open book', it will be interesting to see if more providers attempt messages like this one.

Click on the video caption or here to launch the video page on AutoTrader.com's media website

June 30, 2009 by Gary May 2
I Think We Can…I Think We Can…We Better Think We Can

Boy, things were really humming there for the longest time and then the train ran off the track, or maybe the wheels simply came off. No matter what, we got to find out what it would be like for the industry to have a brake test. But instead of 60 to 0 in 137.6 feet, it was more like 17 million to under 10 million in a blink (try that supercars!)

Add to that the fact that somewhere along the way, we got just a little more than complacent…ok, we got really frickin' complacent! Now we have the choice to do things over the way 'we' did, or go down the road less traveled.

So we have to ask ourselves collectively some tough questions. Do we advertise the same way we did? Do we communicate the same way that we did? Do we build the same way we did? Do we sell the same way we did? If so, how can we expect different results? And for those that want to wait, how can you expect anything doing that?

Many indicators seem to show that we're doing a lot of the old things and just a few new things, and neither incredibly well. To get the results we truly want, it is so important to be realistic, admit when we can't do what's expected, challenge ourselves to new ways of thinking and get out of the way when it's time. If this train is getting back on the track, it had best be a brand new track and the engine clearly needs replacement rather then modification.

No matter what you're doing, start thinking and acting like consumers and start believing that success is our only goal. I'd like to tell you that the latest ads on TV, spots on radio, full pages in the magazine and full-disclosure rant in the newspaper were absolutely effective. Since I don't do any of those activities, I can't. And none of the people I regularly hang out with or talk with do either.

If we start thinking and believing that we can, and it truly shows, it'll likely happen. It's not rocket science. It's not about ignoring other very related issues. If we are going to be successful, we have to do it by ourselves. We have to believe that the results will be there because we did everything we had to…not somethings, everything.

And I think we can, I think we can (insert favorite choo-choo noise now).

Best practices: Professional Insight, Powerful Results

June 27, 2009 by Gary May 0
What Innovation Matters Most Right Now?

Are you excited by the latest technology in the newest model arriving at your showroom? Were you going crazy waiting for FedEx/UPS/USPS last week for your latest iPhone? Can't believe that your newest CRM ties your site, third party leads, phone calls, mail automation, showroom visits and more together? Didn't have to break traffic laws a week ago since you Tivo'd the first 10 minutes of the NBA finals knowing that you'd work late? All that is absolutely fantastic, but it's not the innovation that matters most.

Nothing that technology delivers, nothing that (supposedly) makes our lives better, nothing that is guaranteed to make our businesses run like clockwork matters until someone understands it, knows what to do with it and ultimately figures out how in hell to apply it, will mean anything…until there is a reason to use it in the first place.

In other words, why use Tivo (as good as it and DVRs are!) if you don't watch, let alone care about, anything on television?

What you care about getting done, so that you move closer to your dreams, goals and ambitions, should be the driver in using technology. The greatest innovations we can use best centers around communication. SImple. Period. Communication!

If you don't have anyone to communicate with and nothing to communicate about, technology means nearly nothing. As passionate as you can be about the latest $400-$4,000,000 items that center around innovation and technology aren't worth the patents they're built from until there is a real reason behind them.

If you're in business and plan to stay in business, use the latest and greatest but please have a purpose first. And make sure the purpose dovetails with process. Are you one of the stores that works on one CRM for 'the floor' and one for 'the Internet'? Why, why, why, why, why? Oh, I see…you like keeping other companies in business more than you want to save your own…ok. Got it!

One race matters and it's not to the sales title. It's the human one. Nobody will care about you until you show that you care about them first. Then you build a relationship (read: listen). Then use technology until the cows come home to communicate, track, follow up, excite, invite, connect, compel, validate, reward, incent, share, promote and so on and so on. And never make the technology more important than the relationship or the message. People ignore MASSIVE amounts of otherwise compelling content. We call it advertising (and most of it sucks people…especially in the auto industry).

For now, stick with the best innovation you have no matter what: your brain. Use it wisely, use it well, use it regularly…

And see you at the finish line!

Best Practices: Professional Insight, Powerful Results

June 20, 2009 by Gary May 0
Live Webinar: Pitfalls and Best Practices for Building Online Communities

Powered_Logo

Pitfalls and Best Practices for Building Online Communities

Featuring Forrester Principal Analyst, Lisa Bradner


Date:  Wednesday, June 24th
Time:  3:00 PM Eastern Time/10:00 AM Pacific Time
Duration:  60 Minutes

Online
communities offer marketers tremendous business advantage, but
content-rich, highly engaging communities don’t just happen—they are
planned, designed, and continuously nurtured to deliver real ROI that
can help businesses grow. While many platforms abound offering the
promise
of community nirvana, we’ll draw from our extensive experience to show
how and why successful community building extends way
beyond technology tools.

We’ll share best practices and success stories and discuss how to:  

  • Build a solid foundation for your online community initiative
  • Leverage what you learn from community members in your organization
  • Drive participation and engagement among community members
  • Avoid the 7 deadly pitfalls of community development and management

Register_Button

June 18, 2009 by Gary May 0
The Letters Of Success…Acronym Style (Sort Of)

It's important that, from time to time, we stop to focus on the principles behind the goals we're aiming for in business and delivering the best customer experience. No matter what you're selling, you have to believe in what you do 110% and your business needs effective management, tools and support. Success comes from doing things over and over again, learning perpetually, listening intently and doing those things always.

Too often in 'our' industry there is a reluctance to look forward since the 'past' worked so well (sounds like a cop out to me!). In an attempt to bring us back to reality, here are some ways to think about the fundamentals in a way that hopefully works for you…

Practice
Responsible
Overall
Customer
Engagement through
Sales and
Service

Being
Responsible
Advocates of
Name and
Dedication

Keep
Nearby:
Opportunity
Willingness
Listening
Education
Dedication
Guidance and
Experience

Total
Employment of
Comprehensive tools
Handling
Needs:
Ongoing
Loyalty
Outreach and customer
Generation for
You

It's a must for suppliers, not just retailers:

Validate
Every
Need and
Direction
Of your
Retailers

This one is a little blatant (and selfish) but you'll surely get the point:

Considered
Other
Non-performing,
Senseless ways and
Ultimately
Learned
That I
Absolutely
Need
To hire one

All humor aside, it is critical to aim for success, build environments for success and be part of success. Remember that you don't find success (and it doesn't find you), you create it. One of the most niche products I've come across in the past 20 years is Camelback's hydration pack. They carved out quite a following. Their slogan? "Hydrate of Die". True: if you don't hydrate, you will die! And if you don't find a way to learn, do things differently (not just for the sake of it) and plot your course for success, you will die. Failure is part of success. Resistance, running, avoiding and simply burying your head in the sand, however, are futile.

Lead, be great, plan and succeed!

Best practices: Professional Insight, Powerful Results

June 15, 2009 by Gary May 0
Some Good Time With Some Dealers…MPG Style (Why Weren’t More There!?)

Tuesday's MPG event at Proud Bird at LAX was another great session. While we're typically greeting marketers, OEM executives and industry suppliers, this was a great departure and informative (if not inspiring!). Charlie Vogelheim moderated the panel and the room finished the day with great questions. In between, it was all perspective, passion, personality and even a little bit of 'personal'.

Enter Jon Gray (Orange Coast Jeep Chrysler Dodge), Peter Hoffman (Sierra Automotive Group) and Beau Boeckmann (Galpin Motors). OK, there were three domestic dealerships on the panel so you could say the 'bend' was deserved. That being said, dealership owners I've met have all spoken the same way regardless if they were a domestic or import store owner. Fact is these guys know the business and definitely from a perspective rarely caught in the 'media' headlines after networks and publishers are done devouring the OEM stories.

The three principals were asked about everything from the cost to sell a car, how long they've been in business, how many employees they have, involvement with charities…to their take on government involvement in the automotive industry, specifically GM and Chrysler (with the two dealers speaking about being 'in the clear' of store terminations…for now).

One of the most interesting answers the panel gave was in regards to the impact of the Internet on car sales. All were in agreement that our favorite technology has added cost to dealership sales operations, not decreased, while acknowledging that the transparency has provided some significant advantages to their business.

As expected, the most pointed comments were about Washington's takeover of GM and Chrysler (let's say Fiasler since the Fiat purchase is complete as of this morning) and Ford's ability to stay out of the Cirque d' AutoBiz. They spoke of close friends and associates being on the short end of the decision stick.

Reflecting on how auto retail has changed, Boeckmann talked about how attrition in their local market area over the past years has taken the Ford dealership count from 9 to 3. Hoffman related the story of Oldsmobile's unwind a few years ago and how different it is this time around. Gray talked about how disconnected the factory reps are from the reality of dealership business. Both Hoffman and Boeckmann talked about Saturn's new life, albeit from polar opposites: Galpin still has their Saturn franchise while Sierra sold theirs. They both hope for the best with Penske's purchase of the brand.

Boeckmann provided a unique perspective in being a retailer that has a very close relationship with headquarters, even getting to have input on future cars. Mostly, the three businessmen related how hard it is to get both consumers and manufacturers to think of dealerships in a positive light.  All three are obviously passionate about what they do and provide to their communities, and very likely more so today. Even if most dealerships today are in defense mode, these three seem to have a forward-thinking perspective that is completely refreshing backed by the fact that none are throwing in the towel anytime soon.

These retailers don't have golden parachutes, multi-million (or
billion) dollar bailout packages, rarely get to sell cars for the same
price every time (as the factories do), and  are searching for the
logic behind the banks over-reactive pull back (and well as the search for loans so consumers can buy cars). Having seen a handful of dealerships speaking on panels over the past four years, it is clear that it needs to happen much, much more. Kudos to the Motor Press Guild for having the three fine retailers in for a dose of reality (and even a little bit of business and political conjecture).

June 10, 2009 by Gary May 0