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The Great Dealership Debate That Shouldn’t Be

"Hear ye, hear ye! For all of you, thou shalt be indentured in thar' olde sales department. And for the rest of ya blubbering fools, 'yer lucky to call the Internet department over yonder home!" Boy, sounds like a clip right out of a bad Tom Cruise period movie about horse sales from the 17th century, right? And to top things off, he loses his English accent about 17 minutes into the flick…

All right, it may not be that bad where you work, and it may be the 21st century, but why is there still a separation between most dealership sales 'departments'? Why is there still a debate about whether or not they should be integrated? Is it because the favorite 'floor' sales person loses status and the spooned deals? What is it about the 1987 mindset that carries otherwise unacceptable practices forward?

Your entire sales department shouldn't be handling Internet leads because nearly all customers are now shopping online. It's not enough to make those not taking website ups handle "online jacks" simply because there is not a trickle of showroom traffic to speak of, and definitely not to support the size of your team. Do it because it is simply the right thing to do. How you do it is up to you.

Dealers: quit responding to the market, conditions, volume and what you perceive to be business indicators and start being proactive: building, planning and expecting more. Nobody ever built a birdhouse, let alone an empire, by standing still and waiting.

Yet people that otherwise can absolutely, positively produce more numbers, revenue and profit are not in organizations that support the opportunity, vision or appropriate business model. While a good number of dealers have shifted their resources to completely cover all aspects of sales including web-based leads (and you deserve a lot of credit for doing that), most of the market continues to have a small segment handle what continues to be debated as a different kind of customer.

Fact: Consumers no longer bend around businesses, especially those with dated practices. If you haven't checked in a while, they're no longer around. Competition, the Internet and consumer-generated content/virtual word of mouth have changed our industry. Businesses must listen to, connect with, communicate with and engage with the consumer on their terms. To use an old adage: quit trying to find a square peg into a round hole.

If you no longer drive to the airport, stand in a 52 minute line and deal with a counter agent to buy an airline ticket, why are you expecting people to deal with an automotive retailer in ways that are also 20-plus years old? Remember this next time you're in line returning a high-tech item that
you bought online from your favorite electronics retailer: you'll
likely find yourself in the same line as the people who bought items in
the store. Imagine that…the same line!

It's time to look at your business with new eyes and focus. Don't do anything less than you'd expect from the places you do business with. No debate about it: there is no such thing as an Internet department. There are only the ones that haven't figured it out yet…

Best practices: Professional Insight, Powerful Results

Moving The Needle: From A Get Together To A Ground Swell

It is going to take lots more than talk, snake oil and rain dances to turn our hobby back into an industry with integrity, consistency and accountability (if we even had those in the first place). It is more than about time to make change rather than simply talk about it.

Somewhere between the low-ball numbers form some industry experts and the pipe-dream estimates provided by others, there is a more accurate one and that's where we'll ultimately end the year. Fact is the number is still going be a boatload below what it was just a couple years ago. Now we can do our best to get to some better 'state of the industry' but the last time I checked, it still happens through selling and servicing cars the right way: one at a time.

Let's face it: consumers control content, the banks are controlling most of the consumers' spending (or at least for now), and there's no love lost for the venerable car dealer.

A couple weeks ago there was a Automotive LA Dinner, put together by Philip Inghelbrecht of TrueCar, and it was a great example of trying to get together to move the needle. Eleven industry colleagues, most meeting for the first time, came from as far as 150 miles apart to meet in the Long Beach area and share insight, expertise, information, backgrounds and opportunities. Our next meeting is supposed to be around the New Year, I hope sooner.

Next month's DrivingSales Executive Summit is going to be different. charlie Vogelheim and Jared Hamilton wanted to put the dealers' future and opportunities in the spotlight, rather than the typical highest-paying sponsor or best-known industry speaker or colleague spearheading an event. I hope this becomes a series of events with unprecedented support for the attendees, instead of greasing the skids for someone else.

The list of companies hosting webinars to get information out there for free is compelling: Cars.com, Powered.com, Automotive News, Ward's, Dealer.com and more are spending time, money and attention on where the water level really is: retail.

When the needle really starts moving in the right direction is when most of the events and support are the rule, not the exception. It's a matter of finding the folks who weren't particularly impressed with an event, sitting down with them and finding out how to improve things. Video after video, post after testimonial about how great an event or speaker or consultant was when half of the people in attendance leave a room is not going to benefit anyone.

Our responsibility is to improve, educate, compel, engage, support, enlist and activate. Simply going through the motions and putting a new cover on old tricks (like reusing a one- or two-year old article and calling it fresh) , saying the you can deliver on something and then not or simply doing nothing at all – i.e. 'waiting' like so many dealers like to play it – is a move in the way wrong direction. Don't get the wrong assumption: getting back to basics is great. Great for teaching someone how to close that doesn't.

You can't get a newspaper person to get the web, so don't try to. You can't get a person who's never used a cell phone to text a message, so don't try to. But if we act like a village (no laughter, please) and raise the collective water level, we can do amazing things. The needle can move much quicker in the direction we want and need if we eliminate the roadblocks, maintain above the status quo and help one more person each day achieve something more.

And maybe, just maybe, we might get someone who's never turned on a computer to end up taking 70 leads a month and closing at the third or fourth highest rate in a dealership. We might see more dealerships starting to implement true customer satisfaction tools, employ true SEO practices, get advanced training on their CRMs, get a higher ROI from truly targeted service marketing and even utilize mobile web (I don't care if it's 0.005% of online users now, it won't be next week, next month or next year so quit using ridiculous excuses!!!).

Remember: it's our job to help move the needle, not someone else's. Let's get the needle movers together. Unite!…and stay thirsty my friends…

Best Practices: Professional Insight, Powerful Results

Everything About Social Media That Can Be Explained In A YouTube Clip (Where Else Would It Be?)

This has to be the easiest post ever. And probably the best since it’s in someone else’s voice (video). This is one of the best ways to ingest some compelling data around social media, even if you take it with a grain of salt.

Whether you believe in the fundamentals of social media or not, understand the impact as well as influence or not, agree with the investment of time and resources or not, this should at least open your mind to the scope and reality. If you’re in business, you should be using every tool in the shed rather than excluding one since it didn’t come with instructions and a guaranteed return of investment.

Enjoy, let us know what you think!

Best Practices: Professional Insight, Powerful Results

Powered Webinar: From Zero to Community: Practical Advice for Growing and Nurturing an Online Community

Live Webinar on Thursday, September 17th

Featuring Newell Rubbermaid, The Community Roundtable and Powered

A successful social marketing program requires the same comprehensive,
well-planned approach that traditional marketing programs demand, and it
entails careful consideration of how your company will participate. At the
heart of most social marketing programs is some form of online community that
can help integrate social media elements into a cohesive program aligned with
your marketing objectives – from creating customer engagement to brand
loyalty and advocates. Online communities take dedication, perseverance and
commitment that go far beyond building a site or joining an existing social
network community.

How to drive ongoing, active engagement within a branded online
community
Tips for leveraging social media such as Twitter and Facebook to
drive awareness of your community initiative
How online communities help address the need of your customers at
every stage of the buying cycle
The importance of community management on the health of a
successful online community

Come On! What’s Social About A Price? Nothing!

After tip-toeing around this subject
for most of the year, it's time to take a more direct approach. With more
car dealers using "social' media these days, seeing the overwhelming
amount of non-conversations are staggering! A quick visit to the majority
dealer accounts on Twitter and Facebook reveal the following:

use of what are supposed to be social sites and
services for essentially 'unpaid' advertising

The home of the $199 lease
Largest volume dealer in the
area
Amazing inventory
More models arriving daily

use of auto-follow and auto-retweet programs to 'simplify'
building followers

30-day old accounts with
2,000+ followers
Retweets of Automotive News
articles

Consumers can't access as
it's subscription only, and why share?

limited contextual links and content

video links are exclusively to
store's site or YouTube inventory/walk-arounds
Using same links over and over
with only slight modifications

Here's the hint that will hopefully get you to use social media for what it's
intended for: it's called social for a reason. There is absolutely
nothing remotely social about car prices, lease specials, inventory, and 'buy
here!'.

Social is about conversation, influence, sharing, participation and ultimately
growing your virtual community. And take note: this happens after
time. It's organic and you have to learn. It's not about control,
rants (although those can be fun in moderation), telling, limitation or
virtually throwing the keys on the roof. Nobody cares about 100 tweets
telling how much you'll promise to save them, less the fine print.

Share funny stuff, eye-opening stuff, cool videos, first-to-market stuff,
did-you-know stuff, share fun events, invite people over to do things for free
and ultimately build a relationship around having conversations. You'll
be amazed at how many customer service situations you can remedy, how many
times you can correct someone's misunderstanding about a capability or spec on
a vehicle and ultimately plant some seeds so that, when it's time, you already
have a customer that doesn't give a rat's behind that you are giving away gross
on "1 car at this price'.

So take some time and learn, understand and start participating instead of just
posting. Just participating in social media doesn't give you any passes
or kudos. Be real, be original, be compelling and be relevant. If
you know you're market, friends, followers and customers, chances are you'll be
more successful.

Dealership staff: Don't talk to people. Talk with people. Listen to
people. Create a valid, unpaid following that is interested in what you
share. Be fun. Be intentionally unintentional.

Go ahead, dare to be unique and different. You might just end up being really social…

Best Practices: Professional Insight, Powerful Results

First Of The Month Syndrome: You’re Not Starting Over

Month end is behind you, save for those few deals that are going to be back-dated to August 31. Hopefully with C.A.R.S. you didn't need to do that. Now it's a whole new month and you're thinking "I'm at zero, clean sheet of paper, time to hit my numbers!" Since we know so many people that do that, there must have been one parent in all of our families that, when we were infants, whispered in our ears "you'll think like you'll get paid, you'll start over on the 1st, you'll scurry like hell to get everything done on the last day of every month". Man, talk about a dysfunctional family!

So here you are, 20-40 years later, convinced that a calendar determines your effectiveness and runs your life. While nobody is here to tell you it's not how you get paid, quotas are set, assessments are handled and forecasts are created, quit thinking that way. You're not starting over.

Especially in today's Internet-based world, the first of any month is just another day to tackle the 30-100 leads in your queue. You can let the management and executives control the way a company operates but you don't have to be controlled by a calendar. When you remove yourself from that process, your vision grows and you can see things in better perspective. Again, don't start a revolt or fight the way your GM runs your store. Just start to believe there's people (your customers) that work and believe in a 365-day world.

When you start planning beyond 30 days, in reality most folks hope on 30 and plan less, you can better see marketing effectiveness, referrals building, many leads actually taking 5-12 weeks to buy (rather than ignoring them until the week before and finding out they bought elsewhere), track trends and cycles, even bring customers back for parts, accessories, warranties and more!

If you truly believe that your number is 'zero' when the last month expires and the new one starts, maybe look at how you're holding yourself back. It might just be your condition, but for those that can change, it might be the most fun you've ever had at a dealership…and possibly the most money too!

Best Practices: Professional Insight, Powerful Results

What Will You Focus On Tuesday After Clunkers Shuts Down? Start Inviting Your Customers In Again…

Imagine, if you can, that business becomes painfully slow. Sales, traffic, even service, is down anywhere from a little bit to 'oh-my-gosh-how-can-we-survive?' slow. Then try really hard to imagine some gift-from-above program from an unannounced source drives a bunch of customers to your store for a few weeks. Then…the program ends abruptly. At the same time, consider that you expected the program to end at any time so you are not completely surprised by the news that the masked crusader and his money left town.

What will you do the next business day? How prepared you are, how well you communicate with prospects and customers alike, how creative you are and where you know your business comes from will dictate if Tuesday is satisfactorily busy or if it is just like another day before all the loads of Monopoly money arrived.

Most people we've heard from consider C.A.R.S. a blessing with all of the traffic and sales it generated, as well as a genuine pain in the butt. Of course! If you had the program to do for yourself, would you have done it any differently? You absolutely would have. So why are you going to be twiddling your thumbs come Tuesday? What program you run is up to YOU, every day.

Now, that's not to say that you're going to be able to come up with $4,500 of "it'll get here someday" funds on nearly half of the deals you do next week or any other day. However, it's entirely up to you how to drive people off of their scared little (and big) duffs and into your business.

It's not up to the factory, it's not up to the million-dollar advertisements, it's not up to the region or your 20-group and gosh-forbid it's definitely not up to the government. Don't you want them out of your business…not in it? What happens in your business, positive or negative, is up to you, your brand, your staff, your effort and your planning.

So when the here today-gone tomorrow spigot of funds is finally turned off by someone making a lot more than you with nicer benefits than you have and a pension you can't even dream about, get back into the habit of making your business happen. Less business? Get a bigger piece of a smaller pie!

Can't figure out how to make it work? Ask someone for help or at least tell the receptionist that you're not "away from your desk all day" and that you'll start taking meetings again. Business doesn't happen from thin air, it takes a lot of work and some good consistency. And sometimes it takes outside ideas folks, as painful as that might sound to some 20-year plus veterans.

Besides, whether you call it natural selection, survival of the fittest or one of a myriad of other expressions that refer to 'business better then usual', it is always best when you're the master of your domain rather than waiting for the next shot in the arm.

Best practices: Professional Insight, Powerful Results

A Season Of Events: Will It Be Boom Or Bust?

We're on the cusp again: in the next 90 days we're looking at events including DrivingSales Executive Summit, JD Power Internet Roundtable, Dealer summit, Synergy Sessions, Digital Dealer, Auto Training Events and more. The more dealers that we hear from, the more we hear the same thing: "show me the beef!!". What's the message? Drive value for the industry, especially the dealers, or don't bother inviting me to the same old thing!

Today, more than ever, it's a "what have you done for me lately" world in retail. Dealers need information, partners, cooperation, support and solid direction. By the same token, dealers need to get off their duffs and start really using all of their tools. Not buy more and do the same thing. Dealerships that move forward will do so because they understand their market, their brand and their opportunities. Not because a piece of software or the factory will just feed them customers all day long.

Our industry is filled with some great providers, vendors, consultants and leaders. It's hard to know that when, for the most part, the same ones are featured redundantly wherever you look. It is everyone's responsibility to ensure that, once you drop your two grand to spend a few days away from the dealership, a true learning and sharing experience is had. Each session should be compelling for everyone attending and it should lead to change.

Here's a concept: event follow up. If there's a session on social media and 250 people are in the room, everyone should have a follow up about 10 days later with a brief questionnaire, offer of assistance and a general "to keep on track" message. Headed up a panel on mobile marketing? Where's the text message thanking people in attendance a week after the event with a unique offer with a reminder of best practices?

And here's the hook: the speakers and promoter will do it for no additional fee. Sorry overpaid (oops, nicely paid) folks, it's time to give back. Without the dealers in business, it's hard to collect the "non-negotiable" $150-200 per hour. Ready for another noble concept: the more customers we keep in business, the more customers we'll have.

SImply having a 'next event in the series' because you said you would is no justification for actually having one. No doubt we all love to network, gallivant about with industry friends and colleagues over pricey dinners and drinks, hit some balls around on a course you don't get to do so normally and plenty of other arguments for the break from reality.

What changes dealership operations over a 60- to 90-day period is really what at stake. Pushing the needle forward is an absolute necessity right now. Speakers, vendors and organizers setting the bar, delivering on expectations and then making sure dealers can execute is the only realistic invitation to an industry starved for sales and results.

So will we be looking at one of these nicely-promoted events truly being a conduit for change or only a way from some folks to take home a profit (again) and some 'at a boy's? The way that we've done things is not the road forward. That's not the sole responsibility of the event promoters, but it would sure be nice if someone changed the channel…heck, how about changed a lot of minds…

A season of events: let's make sure that people take back more than photos…

Best practices: Professional Insight, Powerful Results

Cars.com Webinar: Cashing in on Web 2.0, Using Social Media Sites to Drive Sales

As online communities grow in ever-increasing numbers, are you a part of the conversation or standing on the sidelines? Social media sites such as Facebook, MySpace and Twitter allow you to engage your customers outside the store and develop relationships that drive repeat and referral business. This webinar examines the rules of engagement on these sites to help you understand the channels and how you can capitalize on them.
Register Now

In this session led by Kathy Kimmel, Cars.com director of automotive consulting and dealer training, you'll learn how to:

Identify which social media sites connect your store with in-market shoppers
Incorporate social media sites into your sales process
Develop site-specific tactics that help you engage car buyers and encourage open communication
Determine who should manage your social media presence

Friday, August 14, 2009 12:00 pm EDT / 9:00 am PDT

Register Now

Social Media Is Just Like Sales: It’s What They Say And Think That Matters, Not You

It's been said that in business, it's not what you know but rather who you know. In social media it's not much different! It's not what you say, it's what everyone else thinks about what you say (and who repeats it that has a significant following). In today's auto industry social landscape, we're ruled by "buy here", "special of the day", "unbelievably cheap oil change", "home of the bla-dee-blah-blah-lease!" and more ranting and ravings about "me me me" than I'd care to acknowledge.

It seems that the opportunity for a bunch of folks to so-called "save" their dealership from "paid advertising" and more importantly "relevant advertising" by getting "free advertising" has horribly skewed the mindset of otherwise savvy people. I can see it now…just imagine with me….(fake clouds of dry ice are filling the stage in your mind)…

"Hey boss, you're not going to believe this! Me, your amazing but otherwise unknown Internet salesperson, just came up with the way to save $20,000 a month or more from your advertising budget! Guess who ran smack dab into Twitter and Facebook!? ME!! If you can manage, I'll take over our social stuff and you can get someone else to close all of the leads that I'll generate FOR FREE!! Ok, ok, ok, get this: I'll put all of our inventory on Facebook, post all of our specials on Twitter, upload videos to YouTube for vee-ess-ee-ohh or something like that, put photos of happy customers on Plaxo and get EVERYONE to do write ups on Yelp, Google and all the industry reputation sites! And guess what else?! I'll respond to every comment, squelch every heater and unwind and steal our competition's customers…all online!! Whatdayathink boss???!!"

Simply put, social media is not for advertisements. Ads do have their place in social media and some sites, but that's not the driver. Create conversations, share unique and exclusive information (being first still 'sells'), point to great videos, old commercials, one-of-a-kind events, validate both satisfied and unsatisfied customers, promote events that you donate or are somehow involved with and THEN take time to put up a special (and make it really special)…I hope this is getting through…

If all you post is "buy here, buy here, buy here", nobody will listen, care or interact. Imagine going to a number of parties over the summer, getting to know the regulars, and one person is promoting their business and trying to get you to buy incessantly. You'd avoid them, almost at any cost for sure.

Now think to yourself: "why would I want to be that person online"?

Kick the "sell, sell, sell" binge and start some great conversations that turn to great relationships that turn into a larger book of business than you'd otherwise have. Go be great in social media and leave the selling to the tweeps that don't get it.

Best Practices: Professional Insight, Powerful Results

Blog

The Great Dealership Debate That Shouldn’t Be

Moving The Needle: From A Get Together To A Ground Swell

First Of The Month Syndrome: You’re Not Starting Over

What Will You Focus On Tuesday After Clunkers Shuts Down? Start Inviting Your Customers In Again…

A Season Of Events: Will It Be Boom Or Bust?

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