The More Things Stay The Same, The More They Stay The Same
Author Archives: Gary May
Money. Lots of it! Tons and tons and tons of it! So much that for the first time, we're witnessing dealers that have been hands-on since 2008 starting to slip away a little from the stores and enjoy "away" time again. And that's great. Until, at least, you think about the last seven years again.
If "Digital" has taught us anything, it has demonstrated that small can become bigger faster, the big ones often look like Swiss cheese and that up and down markets don't care about much besides presence. After the last fourteen years around the Automotive Web and six and a half in dealerships, what is striking is that digital has shown ambivalence and opportunity at undeniable levels.
And most still ignore the power and upside. Making money can make us stupid.
Even with sales up 3% so far in 2014 and last year's finish around 8% over 2012 (our average client was up over 30% last year and tracking again), there still is a strong desire not to change anything. And most of what we see is still what could be categorized as "fly-by-the-seat-of-your-pants-trust-me-it-works" stuff.
When a tough market hits again, and it undoubtedly will, will we collectively be in a better place or will we still be grasping at straws and dumping expenses to match traffic and revenue? As shared by Jared Hamilton at last year's DrivingSales Executive Summit, we still aren't tapping into service marketing and penetration opportunities right now via digital channels (really any to speak of) while aftermarket still dominates search and revenue save for dealers really paying attention to categories such as tires, Quick Lube and equity mining. Digital covers all of those if CRM and marketing integration is done properly.
Tough times, and the subsequent good times, have taught us that when push comes to shove, no answer and direction is as good as solid ones. Because nearly everyone that was able to hold out between 2007 and 2009 is making money. Yes, the smarter ones are making more, however most are nearly printing money today.
Digital is still the "back marker" in a nearly-completely digital world. And the statistics for the entire market simply don't matter when it comes to your market. So what has digital taught you?
Share what you can about your experiences, good and bad, that steers what you do and don't do in digital today…
Best Practices: Professional Insight, Powerful Results
Many today rant about change and how someone moved their cheese. The mindset of those who expect a static retail world show many who effuse about “the Good Old Days” while using mobile apps for airline tickets, ESPN Mobile for football scores and drive times delivered to their home desktops prior to leaving for the office.
The paradigm hasn’t shifted as much as it’s already taken the dirt nap. If you’re not ready for consumer-based everything, it’s time to reassess where you fit into automotive retail.
As an industry, we fall grandiosely behind what consumers expect. Recently a friend of mine’s mother was shopping for a vehicle. They caught an ad (yes, a newspaper one) and showed up at the dealer to find out that the stacked rebate offer was sold only the day before. After reprimanding that they should have never looked at a newspaper anything, the shopper retooled and headed out via web-based information (the new 2013 vehicle was purchased yesterday, from an honest dealership).
Since the very-public FTC crack down (and resulting settlements) on dealerships just a couple months ago, it is easy to see that the cheese moving has nothing to do with our comfort zone, consumerism or reality. By and large, dealerships will continue to do as done: Get the customer in. foursquare them, throw the keys on the roof and keep them caged for a number of hours, lest they escape when the salesperson leaves for the “desk”.
A few weeks ago, at the Innovative Dealer Summit in Denver, my presentation included a statement: “given the chance, 75% of dealerships would turn off their websites tomorrow”. Frankly speaking, that’s likely not too far off from the truth. This is based on entering and speaking with hundreds of dealerships a year. What can be done to alleviate the burden from those that don’t want it?
Automotive retail must move at the speed of the consumer, not pull the wool over their eyes even faster! The longer we live in year-1995 speakers and training, the faster customers will leave and push consumer-direct sales and other alternatives. Remember folks, 1994 was the year that Ford initially launched FordDirect.com!
The tools, data (for some- to most-part), capabilities and technology are available to us today. Let’s not bury the positive side of retail with 6-hour visits, bait-and-switch tactics, “we’re always here” mentality and less-than-deserved experiences because we are still waiting for the “up bus”.
If you aren’t ready for the cheese to be moved (newsflash: it already did), move on. Let someone else fill your position rather than having your sales staff ask a potential customer “would you buy it for fourteen-five?” when you don’t intend to come off of seventeen and back that up with an awkward T.O. only to find the customer gone in a minute! Consumers expect more, and damn it so do you, so why do it?
Maybe it’s time to forget the cheese and move onto whine… (Oops, meant wine).
Best Practices: Professional Insight, Powerful Results
It's no secret that we're on the move. All of us. You might even say that the speed at which things change is breakneck. What is less known is that as we speed toward wherever "there" is, the more we seem to be willingly giving up. The homogenization of dealerships is rampant…and it's the dealer that checked the box.
Our industry moves at the speed of retail. There is no two ways about it. While the mainstream media still focuses on what happens with the OEMs, just know that you are the king, not the pawn. That is until you make a choice: hire the preferred vendor so you can co-op funds; use the standard POPs since it's easier; use the brand website so you don't have to "maintain" two. And so on.
Consumerism is driving retail, which is at conflict with the OEMs. At the same time, dealers by-and-large are giving up the ghost because of cost. Well folks, the greater cost is being minimized. You can want it as much as possible and you still won't have your cake and eat it to. At least not in the digital realm.
So while customers are screaming for attention, service, why-buys, value, appreciation, satisfaction and validation, you throw a redundant website, a canned script, a formulaic email, a prepackaged walkaround, a canned welcome and broken sourcing practices at them. All to hopefully deliver the same car that's available at multiple competitors.
Very few dealers are making the investment to differentiate everything about their operations. You will never sell more saving money. You will never retain more customers while cutting costs. You will never achieve market increases while focusing on consolidating services. You will accelerate your demise.
Progressive businesses continually stay in front of trends, measure more effectively, create opportunities, listen more effectively, invest wisely and attract more eyeballs and customers. Those that don't….don't.
The OEM-supported and mandated programs that are happening and a growing rate many times are being managed by companies simply adding on costs. Their insight doesn't push results, it standardized you. BDCs are being recommended for management by two preferred vendors for one manufacturer right now. You will sound and read just like your closest competitor. Is that your goal? No, is that really your goal? How much money will you save to get your Internet lead and phone closing rates up 10-50%?
If you save $1,000 a month since you can receive co-op funds with one BDC company, did you save money when you lost 20 units that should have been sold otherwise? Your social media is accelerating you to the same fate with most OEM-pushed companies. However since you don't read your own dealership posts, maybe it really doesn't happen.
At the end of the day, it's all good since the reporting says you're doing a great job. Right? Wrong.
The cost of being minimized, standardized and homogenized has still not hit an industry that's nearly minting money again hard enough between the eyes. To those that are fighting the fight, staying agile, focusing on results as much as the bottom line and not losing their grasp on where the digital consumer (which is all of us) is guiding us…here's to you! You'll be the ones who win.
For those who choose to be a mindless, factory clone, here's to wishing you the lost excitement, zest, fire and desire that you started with. You gave up the digital battle for whatever reason you did, hopefully you can save more than your money…
As online business continues to change, car dealerships still struggle with understanding, education and improved results. Edward Shaffer brings a wealth of experience to IM@CS
Interactive Marketing and Consulting Services (IM@CS) has chosen the National Automotive Dealers Association (NADA) conference starting January 25, to announce the addition of eBusiness Automotive Industry veteran Edward Shaffer to the dealer services team.
Mr. Shaffer will be responsible for in-dealer consulting covering dealer-direct and manufacturer program business. IM@CS educates, manages and supports with leading retailers their website, SEO, lead generation, client retention, social media and other tactical results-driven activities. By uniquely partnering with automobile dealers, industry-leading results have been generated over the past six years.
“We are excited to announce the addition of Edward to our expanding team, focusing on process improvement and implementation, eBusiness best practices and unmatched dealer education. His experienced gained at retail with the Park Place Dealerships organization translates to dealers’ bottom line” states Gary May, Founder and President of IM@CS.
“Retailers and OEMs are struggling, 20 years into the Automotive Internet era, with increasing conversion rates, understanding their digital results and attracting a larger client base. We have been able to produce well-above industry increases over the past six plus years. With Edward now in the field we can partner with more retailers who understand digital and solid process, that are looking for the next level in results” added May.
“I am thrilled to have been chosen by IM@CS to grow and continue the work Gary has started with dealers. This is the natural evolution of my career and I am looking forward to making a difference in our industry”, Shaffer said.
Shaffer and May will be attending the entirety of the NADA convention, allowing dealers to schedule appointments through Tuesday afternoon.
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About IM@CS – Founded in 2007 to address a large void in digital marketing education for car dealerships and other large-ticket businesses, IM@CS delivers on website/SEO, sales training, CRM/BDC, social media management and other marketing as well as key revenue areas untouched by most consulting and training companies. IM@CS has been featured at leading conferences and webinars including DrivingSales Executive Summit, JD Power & Associates AMR, Social Media Club Los Angeles, Innovative Dealer Summit, PCG Digital Marketing, Internet Battle Plan, DealerOn, KPA, eXteres and NADA 20 Groups.
2013 brought us so much change that we thought it would be best to provide you with a non-prediction, non-forecast, non-reflective perspective…just to throw you off (and get a few more reads). Cut to the chase right now? Naw…let's tease you a bit:
So we still live in a world hell-bent on immediate gratification. The perfect report. Flawless analytics. Immediate results. Impeccable product. Amazing customer service. And all for less than last year. Or last week…and our clients' clients want that, too.
Our challenges remain the same as they were over 13 years ago when the Auto Industry beckoned to me, selling cars to customers "over the Internet". Customers want a seamless, enjoyable experience that allows them to receive value, benefit and satisfaction. From consideration to contact to confirmation to courting to contract. We seem to fail at the essential points: reaching then, setting appointments and storing/sorting data.
Better websites and SEO and SEM and social media and reputation management, better products and marketing and incentives all show the glaring deficiencies we have as an industry when it still takes about 24 hours to get back to a "lead", make actual contact less than 40% of the time and sell under 10% (really under 8%) of them…
So our prediction is nothing will change; nothing more than a tick on the needle of progress. Oh sure, more dealers will do a "better job", their OEM and vendor suits will tell them so. Yes, for the most part the pie will shift its slices however it won't grow like it should.
More consolidation of vendors will happen. Manufacturers will continue roll out and/or mandate mediocre programs while not selling more cars or knowing how to actually measure a thing. Some of 2013's stars will fade while others will receive the spotlight. "Of course, that's the cyclical ways of commerce" you say…we say bull hooey.
2014 is the 20th year of the Automotive Internet, however over half of the market is still waking up to their year one. This is not meant to piss on anyone's parade, however it is a wake up call to the still-asleep-at-the-wheel. Those clinging to their manipulated audits while flying the flappy arm blow up man or building-sized animal, swearing that 3,000 people came in with their direct mail piece…
You can buy the new adaptive thingy. Roll out the chat-to-dance app. Boost your presence with the social-speed transmission. Serve mobile burritos to your clients. Then wrap it all up with some pay-per-view ultimate fighting service sauce. Or not change a thing and sell and maintain just about what you did in 2013. Why go through a business existence like this?
We need real education and investment. Not "training" and "cost". Curiosity killed the cat. And fear is the lengthened shadow of ignorance. So what will you do to support success before the next snake oil rep comes in with the "must have" toy or NADA party pass if you sign up?
2014 will not change a thing. Your customers will, if you allow them. Your OEM will not change a thing. Your service manager will, if you allow them. Your inventory will not change a thing. Your new actions will, if you allow them.
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Note: we've been quiet for a long, long time here on our blog. The "experiment" is done and we'll be more active again. So if you'd like to see a subject covered, let us know here, on Twitter, Facebook or by contacting us directly (310) 377-6481 or info at imacsweb.com.
A lot is in store for IM@CS in 2014 and we'd love to have you along for the ride. Not making it to NADA? Set up an assessment meeting with Gary, JD or Evelyn (for our Canadian friends), we are honoring 2013 pricing until January 15…
Thank you for reading (and participating on) our blog as we start year six of doing so for the Automotive Industry's superstars: the dealers.
2013 is shaping up to be a pivotal year for automotive retail (again). Results are in for March and the first quarter showing that, with exception to some brands, you're making money. However are you making enough money to make bad mistakes for your business? Look at your social media, chances are you're doing just that.
There's just no excuse for not participating in one of the essential areas for grown, increase in traffic, creation of leads and retention of clients. And by participate, what's meant is not completely being hands-off. Outsourcing your content (SEO, SEM, social, etc.) is critical for the majority of dealers but you must stay involved: review, analyze, modify, challenge and hold accountable. Never, ever let your vendors run wild on your content. Thousands of dealerships are, regardless if they pay for services.
Dealers will write checks to vendors from $300 to $4,000+ a month for social media content services for six months, not realizing that their pages look identical to hundreds of other dealers. Remember the following tips related to all of your content:
1. The majority of Facebook pages are not crawled by Google, Bing, or other search engines. The fact that your Lexus dealership has the same posts and a hundred other ones won't bother Google, just the people you're trying to engage. And if you have most social vendors and a large "Like" count, you've likely bought fans or acquired them through giveaways. On average, less than 2% engage on dealership Facebook pages because they're not authentic, don't represent their neighborhood/area or extend their brand. It's useless if it doesn't look, sound and feel like you. "Caption This" didn't work, doesn't work and won't work.
2. Add to the above a little annoying Facebook detail that dealers (and many businesses) continue to ignore: if you have a profile ("friend") page, you are not only in violation of Facebook Terms of Use (TOU) rules and can lose your page, you can't get all of the analytics, advertising and other functionality that come with a business page.
3. Google doesn't like duplicate content. You've heard it at least 10-20 times but you don't know what it means. Simply put, if you have the 78th blog to post a redundant article on the Chevy Volt from the auto show you're not an authoritative site and Google won't drive traffic to your blog from searches. That is unless you can get a lot (A LOT) of people to your post, to talk about and share your post as well as re-post. Good luck.
4. Twitter is an amazing tool, that most dealers' vendors simply automate posts from Facebook, YouTube and their blog. It's a shame. With Twitter you can actually listen. Yes, listen. Google doesn't show you real-time results for posts and discussions about your brand or franchise. Twitter does. And you can reply to them, unlike on Facebook. It's amazing what will happen in Twitter, over time, if you simply use it, ask questions and engage.
5. Google Plus is being underutilized by you right now. Google what? Yeah, Google Plus, which should now be integrated (merged) with your Google Local page (reviews). And oh boy, are there a lot of "experts" giving out the completely wrong information on using Google/Google Plus/YouTube and their other tools (as well as all things social) and your vendors are just responding with "thank you" or "we'll get back with you" on your positive and negative reviews. One thing that happens with G+ consistently? Content indexing quicker than any other platform. Well, Google owns it…and you're not posting on it.
Typically a quick (10-15 minute) review of all your social network assets will reveal nearly no advantage by paying your vendors for 80%+ of dealerships. Better yet, look at your Google Analytics and see if you have actual links to your website(s) from your social media networks. Even if you're not paying for your content services, why even do it if you're not doing it right? And if your social vendor happens to also provide you with "SEO" services, look twice as hard.
Puppets are cute, for puppet shows. Not for business. Stop being a social media puppet or just another case study for your vendor to get an OEM endorsement. It's not a silo. It's not "we have a social presence" or "we do social". Everything that carries your name must be known and understood by you. Quit turning over your business to others because you don't want to invest or because "it doesn't sell cars".
This post likely won't change much but so much improper marketing for data purposes or to perpetuate automation is being done in the digital realm today. Maybe we can change it. Don't be another puppet…
Best Practices: Professional Insight, Powerful Results
In a world at a breakneck pace and of mediocre marketing, it
is more important than ever to know what you’re doing if you hope to attract,
let alone keep, consumers’ attention.
Add to that the entire market essentially being mobile and you might not
be prepared at all to address your opportunities appropriately.
As things become more convoluted and confusing (add
consolidated at the vendor level) in digital, there are just as many opportunities
as there were five years ago, if not more. Trust us. The greatest areas of
change are (1) more businesses being online, (2) more solutions being provided
by manufacturers and turnkey providers, (3) software and automation becoming
more rampant and (4) the public having more access via mobile at breathtaking
speeds (read: they typically do not consume traditional advertising when
mobile).
What hasn’t changed much are the count of progressive
businesses, those willing to try new methods and technologies, applying
consumer feedback to businesses’ modeling and execution (especially customer
service) and the way businesses buy. Research, contrary to much perception,
really isn’t part of what executives and leaders facilitate or understand. When
is the last time you had a non-vendor evaluate your business’ performance, if
ever?
One thing that is creating massive side effects in digital
marketing is the silo-type approach to vendorship. At the beginning of the year
one of the Big Six manufacturers forced their franchises to choose between
three vendors in regard to “management” of their online reputation. This
created a real wrinkle for the retailers that (1) didn’t want to use the
companies for any/other services, (2) understood that the vendors, outside of using
existing automated software, struggle with actually properly setting up,
maintaining and responding to the reviews and (3) understood quickly that, many
times, just as many issues are created as are handled. Now consider this: What
are the benchmarks? What processes have been installed? When does the
reputation management process start?
Add to that you absolutely, positively will not succeed in
the online reputation management space without complete buy-in at every
franchise plus it must be supported throughout every organization, entirely top
to bottom.
From websites to search engine optimization, from mobile
websites to applications, from search engine marketing to text and live chat,
from customer relation management to integrated marketing, you can’t make a
decision without facts, capabilities, assessment, communication and absolutely,
positively a third party opinion. Why
would a business make a decision today, with the potential to inflict damage on
their multi-million dollar operation(s) and the future of hundreds of people,
based on what another dealer is doing 800-1,800 miles away or what a vendor
says when they’ll ask a second, third or even fourth opinion on a treatment or
drug?
Are you aware of the side affect of taking the wrong or multiple drugs? Yeah,
you’ve heard the advertisements for sinus medication that basically tells you
that you can die from taking their product if you simple breathe or walk after
ingesting it.
So here it goes: buying a potential vendor’s product
(especially if you’re dead set on switching after being “disappointed” with
your present one based on doing no more investigation then compared to now) may
cause loss of customers, lower service penetration rates, bleeding inventory,
loss of margin, decreased customer satisfaction, painful penalties from
headquarters, general business seepage, night sweats for the rest of your life,
or death.
Go ahead, make decisions without paying attention to the
side effects. It will either require hospitalization (aka another vendor change
and admonishment toward your 20 Group partners), resuscitation (aka realization
that no, they can’t do that, or it’ll be no better) or dizziness (aka having to
actually ask someone who knows better that’s NOT on the hook of vendors).
Disclaimer: No doctors were harmed in the making of this
blog post
Best Practices: Professional Insight, Powerful Results
Have you ever tried skiing? Uphill? Are you one for SCUBA diving? In a wading pool? Do you get your kicks running marathons? On a treadmill? How does this grab you: are you a fan of water skiing? On a dry lake bed? It seems that the more you try to distinguish your dealership today, there's someone from the factory telling you that all of the franchises in your brand should be the same. Nice. There's nothing better than showing up to a gunfight with a knife, right?
Know that we understand completely the advantage for the OEM. The level of standards, compliance and requirements shows more (not necessarily better) knowledge and what's happening with endorsed vendors shows that there may be a desire for (less than acceptable) results. "But they're the factory and I don't want problems". Well, Dear John, that train already left the station and you're the one who gets to sell the customers…right? Don't look now but the factory guys, umm, they don't know how to sell cars and neither do their bosses. Shhh, it's a big industry secret!
So how do you win at the "I want to get ahead and they want me to be behind some imaginary digital line that they don't understand" scenario? With more effort, time, cost and resources you can get 'er done! Welp, that's the short, hard to swallow answer. Can it get done? Yes, the same way you eat an elephant.
Look, they're the 800-pound gorilla (or, if you've been to counseling, the "white elephant in the room") and it's usually ugly if you don't take the extra cars they're shoving down your throat. How can the conversation about why the website vendor is failing them or the fact that the social media/reputation management company actually doesn't do what they say they do with any competency go better? It can't…not until there are real conversations at the headquarters. And folks, they've not even started yet. And the people in the digital posts at your OEMs facilities? Yes, they were selling factory replacement parts to you, at best, six months ago. No, everyone with a smartphone, a Facebook account and knows that CMS is content management system doesn't understand digital. Newsflash: SEO is alphabet soup to them.
Our 800-pound gorillas (read: all of them, not just the "big 6") need a major intervention from you right now. If you're reading this, you're in the top 5-10% of progressive dealers in the country. And don't think for a second that by having them out for a heart-to-heart or flying coach back to the OEM HQ for a fireside chat is going to take the covers off your website, CRM and marketing secrets because we still don't have over 17,000 dealers on mobile-optimized websites yet. However it's a step in the right direction and then 90% of your brand brothers won't have to scream that they don't know what their digitalmarketingleadmanagementpaidsearchretargetingonlinereputationconsultinggurus actually do (yes, please hashtag that!).
Did you hear the feedback from NADA? Yuuuuuuuuup! We're sure you did. Are the OEMs the bad guys? Not in the least. However the combination comes from vendors constantly selling (and them buying, BTW), relationships winning over logic and thousands of dealers fighting the "digital machine" for way to long. When a franchise gets over 50% of their traffic from sources they've not looked at in over a year, someone has to get involved. So they're not public enemy #1, they're just one massive speed bump that wrote a blank check to the wrong address.
Tip the scales in your direction, one pound at a time. (No gorillas were harmed in the creation of this post, but some will be offended – and so will many endorsed vendors)
Best Practices: Professional Insight, Powerful Results
Customer service. The term is thrown out like freebies,
party invites, pitches and proposals at NADA. Customer support? Customer
satisfaction? Customer focused? What do your vendors call it? Does that come
after reviewing how many days or weeks they’re allowed after you open a ticket
for something that should be a 1-2 hour operation? Customer service should be
about the…wait for it, CUSTOMER!
What we call customer service has morphed over the years, likely more based on
scale, capacity, programming and software than the requirement to actually take
care of the customer. Very few businesses, still today, put the customer first
however their marketing screams service.
And not following any of the “blueprint” norms really comes
through. Does your website, SEO, SEM, mobile, call tracking and chat companies
really show an amazing zest for paying attention to you? And back you up? And
surprise you from time to time?
Recently my experiences with a couple airlines showcased, in
more detail, what happens to really separate customer service from promises of
service and marketing. With the changes that Delta Airlines has applied to its
SkyMiles program to qualify for 2014 status, the reduction of benefits for my
level (Silver Elite) of status including the amount of complimentary bags you
can check in (now one, so “bag” is more appropriate) and, seemingly, the
ongoing increase in SkyMiles it takes to book an award ticket, coupled with the
number of flights I’ve taken on Alaska (claiming Delta SkyMiles) over the past
couple years with great on-board experience the decision to switch programs
happened last month.
While I’m no social media superstar or influencer, Delta has
followed me on Twitter for quite a while and has, for the most part, responded
to my tweets and mentions whenever they happen. My tweets talking about my
switch to Alaska Airlines resulted in no mentions from Delta’s online teams
(including @Delta and @DeltaAssist) to keep me loyal, however Alaska Airlines
(@AlaskaAir) followed immediately and has mentioned back as well as sent direct
messages. And that is on top of the significantly better experience when flying
them.
On my last flight, Alaska’s ticket counter staff was fantastic,
accommodating my bag without question (my previous flight they accommodated
two, one more than Delta and I didn’t have MVP status on Alaska!). My bag,
which was checked in 32 minutes before the flight made it and the gate agent
addressed every customer when boarding by their first name. Class acts for sure
and to top it off, the counter agent matched my Delta status on Alaska
effective immediately; One person, empowered to make that happen, however the impression
and experience did so much more. With a smile on her face making me smile and
thinking about how to make our customers’ experience even better.
So what does this make you think about? Your investment, or
lack of, in customer service? Whether you have a satisfaction agent or not?
Many companies wrap themselves in customer service; however
when was the last time they paid you a visit entirely based on anything but a report,
pitch, upsell or because they were asked to?
Best Practices: Professional Insight, Powerful Results
