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A December To Remember? For A Lot Of Reasons

No matter how tightly or loosely your association with the automotive industry, this is a month of reckoning for so many reasons. But most are still in 'wait and see mode'. That just flat out can't be comfortable and it's not right, so why is it done?  If you'd had the proverbial crystal ball, what would you have done months ago (if not years)?

It is interesting to hear about some level of negative consumer sentiment or backlash about the Toyota 0% advertising. When was the last time the public's voice rallied against dealers communicating with them too much or trying to sell them cars they didn't want?

Not to rip off Lexus and their annual end-of-the-year ad blitz, but will this be a December to remember? Some stores are talking about a small lift in their traffic, some about people buying again and some are just happy to get clients responding via email. How do you keep the water flowing?

These are constants in what IM@CS teaches daily:

1. Put everything in the customers' terms
2. Ask questions
3. Validate the customer (while talking less)
4. Answer their questions and ask a new one (yes, keep the conversation going)
5. Demonstrate a real reason to buy
6. Promote value, advantages and benefits

Then ask yourself what your marketing says and remember that if you keep doing the same things, don't expect different results. In a meeting with a dealer service provider Tuesday, their entire (refreshing) approach was to understand their clients' needs better. Almost everything we talked about related to engagement. So…what are you doing every day to think about how you communicate and relate to your clients?

Don't pay more attention than your precious time allows to think about the economy, bailouts, cut backs, fewer units sales, etc. Nothing affects you more than the leads you're not responding to, the terse or lacking responses and messages you leave, the appointments you don't confirm and the time you don't spend learning how to do things better.

Find every reason to make this a December to remember for your own reasons, get out there and be great!

Best practices: Professional Insight, Powerful Results

December 4, 2008 by Gary May 1
If My Ads Won’t Bring Them, Santa Will (and other misguided beliefs)

If the auto industry is living on one thing right now, it's hope. Not that hope isn't good, quite the opposite. But if your plan to drive traffic, sales and retention is based on the hope that people will see your ad, or that people will stop right off the freeway because your sign is there, please stop and think again.

Recently I was at a client, talking with a "non-Internet" salesperson. This person was complaining about the prospect of taking web leads since they were 'already responsible for about 600 orphans' in their system. Talk about kicking a gift horse in the mouth, but game on!

What you believe and what you perpetuate will, like it or not, manifest itself for you. Why is a person who contacts you via an email any less of a customer? Between 15 and 20% of Internet leads buy from the first store they contact. About 70% buy from a subsequent store. What are we doing or better yet not doing with our customers?

In a meeting last week, an OEM National Manager related a story about a neighbor of theirs. This person had submitted leads to all their area stores and was told by everyone that responded (not all did) that the request was for a vehicle that was not available in the entire region due to allocation not being built that way. Well, a dealer about 300 miles away got this person's next lead, found the car inbound to a dealer about 1,700 miles away, traded for it, shipped it in, the person flew in one way and drove their new car home (over 7 hours).

You could have the 'best' ads in the world (even online!), the 'best' inventory and even the 'best' facility, but you can't count on those to deliver customers (especially completely satisfied ones) to you…and neither will Santa (my sincere apologies to the jolly one).

Best Practices: Professional Insight, Powerful Results

December 1, 2008 by Gary May 0
You Know Something Your GM Doesn’t

No matter how you slice this one, it's not good. See, stores may build results and get things done bottom up. But unless things changed since the close of business yesterday, your store is managed top down. And the fact that you know things that your GM doesn't won't allow you to get far or make as much as you can.

While information is power, a powerful engine that's not started can't get you anywhere. Most stores operate today without the proper information at the management level, especially in regards to Internet department/lead management operation. It is in  your best interest to make sure management knows what's going on. And yes, while it is their responsibility to understand, it's your responsibility to inform.

While it is so easy to claim that you're too busy, can't get the time, don't see eye-to-eye and a hoard of other excuses to not getting real face time, you have to spend time with the top dog at the dealership. A few things that may pay great dividends in the 'support the Internet cause' meetings you have include:

    1. Performance snapshot
        – lead performance, website issues, vendor status, training and resource needs
    2. Marketplace issues
        – competitive forces, blind shop results, guest feedback (which means actually ask questions)
    3. Opportunities
        – Technology, new services/vendors, SEO improvements, competition asleep at the wheel

And the best way to do this (at least weekly) meeting is to come prepared. Not complaints without possible solutions, whining that you 'just can't do more', defensive stances or typical non-productive time. You have to know what's happening, show that you're acting in the best interest of your store, show him/her the 'win-win' and have a Plan B in the event that you don't get what you ask for.

Be careful not to guarantee a bunch more sales if they "spend just a little more each month". News flash: every GM has been through that. Look to create buy-in by leading your GM to water, making things their idea (you don't care about credit as much as you do the paycheck!), demonstrating a solid business case and talking about value, advantages and benefits that should result.  If you don't think you can pull it off, here's a hint: bring in a consultant for one day. (psst: it's worth it!)

Make sure your management, especially your GM (or owner if you have the Bat-Line) knows what is happening in the Internet department…you know, it's that 'trend' in your store that is just going to disappear over the next 3-6 months…right???

Best practices: Professional Insight, Powerful Results

November 26, 2008 by Gary May 0
Build It And They Will Come…

In hospitality, it's the Ritz-Carlton, Four Seasons and Luxury Collection hotels, in aviation you're talking about the A380 and B787, and in automobiles Bentley, Rolls-Royce, Maybach, Lamborghini, Bugatti and the like. These brands beacon to those that can afford them and those that can't. They represent some of the finest in quality and reputation.

Now would you rather shop at Nordstrom or Sears, dine at Spago's or the Golden Arches and golf at Trump or your local public course?  Fact is more consumers go to the latter but lust for the prior. It's about service, attention and recognition. There is no difference from someone entering a high-line store to another person leaving a mass-brand store.

Some hotels let you rest a little more comfortably at night, fast-flying jumbo-jets arrive at your destination with more room and luxury cars get to where you're going in more comfort and style. What people care about is the experience. Check your surveys, look at your testimonials and ask your customers. They want to be acknowledged, validated and respected. That's why they write about how great the experience they had, and very rarely that you made no money on the deal that they drove two hours for.

In a meeting today with one of the import brands, it was clear that they're still struggling greatly with how dealership staff communicate with, invite and ultimately deliver customers, especially via the Internet. And didn't know how to get the management knowledgeable and accountable.

People, it's not your multi-million-dollar facilities or your top-of-the-line auto flushers in the restrooms. It is entirely the feeling that you give, the welcome that you express and the confidence that you give them that they found the 'right dealership for them'.

Take a moment to think about an extraordinary experience you've had lately…now do whatever it takes to deliver the same experience for your next client..which should be arriving right about now…

Do more…do what it takes…do what you love…do what nobody expects…and do it with a smile!

Best practices: Professional Insight, Powerful Results

November 25, 2008 by Gary May 0
Week At IM@CS: Chats With The Industry

Keeping up with the 'Joneses' in the industry is something that most people want to do, if not beat them. The issues are typically time, resources, knowledge and access. While I've been using many of the online resources for a while, it's not the case for the majority of our industry friends.  Also, there is a reluctance at different levels of the industry due to misunderstanding and ignorance.

Part of what IM@CS brings into clients is eliminating mistakes or the 'what not to do and why' as compared to simply telling people 'do this'. There are a few newer resources that address that in a great way, and they deserve plugs.

First and foremost, it is imperative to stay up-to-date with education from your vendors and use their products fully. Second, leverage the eNewsletters, webinars and events that are free to 'inexpensive' (defined by you or your dealership) run by companies including Automotive News, Cars.com, KBB, Automotive Digest, Ward's, Dealer Magazine and more.

Then you have access to sites that are community based and living on the real-life, day-to-day, cut-your-teeth edge in order to provide value where it's needed most.  Here's two that are prominent players and should be bookmarked:

AutomotiveDigitalMarketing – What can you say that hasn't been said about the prolific Ralph Paglia? Don't waste your time (sorry Ralph), just go to the website and immerse yourself in the groups, discussions, blog posts and more because these are the people (about 1,600) making it happen at retail every day. http://www.automotivedigitalmarketing.com*
*The fact that this post will end up on the site as well is not an additional endorsement and no, we're not being paid!

DrivingSales – Jared Hamilton started this site as a way to stay in touch with people he had taken NADA courses with. Still in beta (and a number of bugs to work out), this is another community that aims to be the knowledge base for folks starting and maintaining their digital presence, including vendor rankings, video interviews and more. http://www.drivingsales.com

Nothing is static about our industry anymore. Your success depends on accumulating an incredible wealth of knowledge, deciding how to move forward and then doing it. Both sites are testimonies that these communities must exist and are of significant value. And if you have an idea, comment and question, go ahead and get it out there. Chances are there's at least one other person that has the same.

Best practices: Professional Insight, Powerful Results

November 23, 2008 by Gary May 2
Sharing The Pain, Silver Bullets And You

What is it that drives someone to perform? Along with the given family, friends, clients, bosses, partners and other tangibles and intangibles, it's simply that person's desire. Two things are clearly evident in the auto industry today: it's inextricably tied to the economy (if not one of the biggest drivers) and that companies reap what they sow, sometimes for an undeservedly long time. You can't change the economy but you can absolutely control what you do.

It's not rocket science to understand what separates a performer for an 'also ran'. While that may not be fair, it's reality. The winner always figures out a way to the desired result. They rise above circumstances and work on the cause side of the equation rather than the effect side. They also know that pointing a outward finger points three back at themselves.

Another wake-up call: even though the domestic auto manufacturers may not be building the most relevant cars in the world, the products sold by GM, Ford and Chrysler do not deserve the stigma attached to the cars from the 1980s until about 2000 or so today. If sentiment is the major indicator that it truly is, Detroit is still living the nightmare. In all fairness, however, I've seen more Traverse commercials in the past three months than I ever saw of 'Road To Redemption' ads.

What is it that continues to perpetuate that type of thought process today when products and services are truly better than ever? No one is impervious. Toyota is down around 50% over the past two months and layoffs there are eminent after the first of the year.

Sharing the pain is and will be one of the unfair realities (GM is holding incentive money from dealers for two weeks, which might bury more than a few stores) as is shortages of 'hot sellers' while your lot is filled with cars that don't move. And guess what…silver bullets just don't exist and likely never did.

So what can you do to change the perception of auto retail and service?  Quit letting the 'brands' dictate your actions and reactions. Build your own brand and reputation because people don't buy a Wrangler, Camry, Z, Malibu or Arnage from Jeep, Toyota, Nissan, Chevrolet or Bentley. They buy from you. Start staring at the front door less and start staring at your screen more (and then email and call more, too). Read what people are saying about you online and realize that's what everyone reads!

Start using the reports from your CRM, utilizing your analytics, update your website (including updating your staff photos that show people that are no longer there and not showing people that are), market your pre-owned inventory (you market it, not the third party sites), add video to your site, emails and follow ups, take more pictures of your happy customers at delivery, call a customer you haven't touched in 12 months…

Don't hold Honda or Subaru responsible for slow traffic and hold back
on expecting Mazda to deliver 24 more customers this month.  Think like, plan like, act like and then become a performer. You're the only thing between not having it happen and making it happen. Be more effective by doing above what is needed and you'll have everyone else thinking that your holster is loaded with silver bullets. Go on…be great!

Best practices: Professional Insight, Powerful Results

November 21, 2008 by Gary May 0
Get Busy Living Or Get Busy Dying

Could Andy Dufresne (Tim Robbins in The Shawshank Redemption) actually have been a car dealer? Everyone is holding their breath right now. Get busy living instead of waiting!!  Waiting is the same as dying.  Waiting for customers to return? Waiting for the bailout?  Waiting for consumer confidence to go up? What is it going to take to have retailers wake up?

There are great resources out there: DealerRefresh, DrivingSales and Automotive Digital Marketing, AskPatty, Automotive Dealers Network and more!  These are people putting it all out there and on the line every day.  Their knowledge, reputation, ideas and networks.  Every consultant, contractor and adviser would rather get paid.  If we can't help dealers do a better job, there's not going to be any business to go around.

It is not a question of if dealers can afford to get help or not.  The more waiting, the faster the inevitable death. It is time to make the investment in your staff, future, process and profits.

Dealers, get an outside opinion about your:

1. Online presence (go online and get off of the traditional marketing see-saw)
2. Lead process
3. Accountability
4. Oversight/Management
5. Appointment setting
6. Delivery process
7. CRM/Follow-up…
…and then stick with it.  Paying for something and then not doing it is a guarantee for failure.

OEMs, it is past the time to make a change from the same companies/individuals you've been using for years with the same or incremental lift in results.  Don't have a true eCommerce platform in your ongoing education and dealer training?  Do it.  And not part of hours or days of other sales, financing or fixed-op classes or training.  Focus on the one and only thing that is going to bring in the overwhelming majority of your dealers' sale traffic.

In the end, Andy created a plan, executed on it and made it to that beach, working on his boat.  When are you going to make your plan work?  Get busy living or get busy dying!

Best practices: Professional Insight, Powerful Results

November 19, 2008 by Gary May 4
IM@CS Survey: Getting Serious About Online

What will it take for dealers to get serious about online and focus on what drives traffic today and going forward?  It's a question asked often nowadays but not answered.  So, what do you think is the number one spur to get dealers to act and why?

1. Dealers/GMs understanding online more, or
2. Vendors making it easier to understand and work with them, or
3. OEMs somehow mandating minimums/standards, or
4. More dealers going out of business because they chose to ignore it (trickle-down effect)

Please leave as many comments as possible so we can also tailor some of the blog content going forward for more relevancy.

Thanks!  -IM@CS

Best practices: Professional Insight, Powerful Results

November 18, 2008 by Gary May 0
Week At IM@CS: Chats With The Industry

With more focus on the bottom line and getting more out of every dollar, it's more important to know that your suppliers are working for you.  Here's some that understand that:

Time Highway: Karen Dillon knows what it takes to deliver a value, but she also knows how to stay relevant. Things at many dealers in the country are being held together by 'service glue'.  With Time Highway's UI and ease of having customers book their own appointments online in real time, Check it out at  http://www.timehighway.com

Google: We've been talking about it, the JD Power conference recently featured it, there have been Webinars about it and, for some reason, dealers are still not using it. Have your website vendor(s) add it or do it yourself: http://www.google.com/analytics

DealerPeak: There are plenty of CRM companies out there. When it comes to adding value, making things simpler and supporting clients with great customer service, only a small amount over the past few years have really made it their mantra to evolve. There are other companies that offer lead management and more, just not like Jock and the team in Oregon.  http://www.dealerpeak.com

DealerImpact Systems: Brian Cox and the crew at DealerImpact used to just focus on websites. Many of their competitors still are and they've gone down the road of making sites deliver more traffic to you. They are extremely confident in the plug-ins and widgets they make, since consumers are actually using their tools on client sites.  I've known Brian for about four years and have followed DI's progression. http://www.dealerimpact.com


We'll try to keep these updates weekly and ultimately have an area where you can get in touch with the vendors.

Best practices: Professional Insight, Powerful Results

November 17, 2008 by Gary May 0
Debate All You Want…It’s Up To Washington…

Believe it or not, the auto industry and it's very immediate neighbors have always made the decisions. Whether it's to build large trucks or small cars, release vehicles from production with known problems or not, pay someone $60 an hour for a $25 an hour job, it doesn't matter as it was decided by the companies.

The 'Big 3' haven't listened too well to customers (and in some cases vendors) either, even though some listen better than others. And now, amidst some of the toughest times ever, our beloved industry must listen to no less bureaucratic 'stuff' than the unilateral decisions made inside Ford, GM and Chrysler offices for years.  Right now, we have no more influence on what happens with a potential bailout than every car dealer in the country actually listening to a consultant of company trying to apply new sales processes in their stores or having them switch their marketing to completely online.

Politicians will decide the fate of Detroit (and the immense trickle-down effect) regardless of what you and I think.  It's already happened with Wall Street. More than ever, regardless if the top executives listen, we can only 'vote' with our wallets.  And in case you haven't listened to or read the news lately, Americans are keeping their money in their pants, purses and mattresses.

We will all have to wait and see. It's not easy to watch this painful episode play out for so many reasons. Because now a whole lot of people (us) have to wait for a few people (them) in Washington to decide what happens next. So in the meantime, keep selling cars and do it better than you did yesterday.

November 16, 2008 by Gary May 0