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Posts in Best Practices category.
If Opposites Attract, Why Didn’t I Sell 30 Cars Last Month?

Let's face it, if the simple fact was that opposites attract, every dealership would sell out of cars…every month. Actually, that's not quite true. Opposites do attract, but we're talking about much more serious issues than simply attraction. Why in the world would someone want to buy from you?

First, there's the typical stuff: Are you prepared? Do you have the same opening and closing process that you use every day? Do you know/walk your inventory daily? Do you know your ad cars? Are you qualifying your customer correctly?

Now, and possibly more important, there's the newer stuff: Do you know your website? Do you know your competition's? How many leads can you handle correctly (and not just call or email once)? How often do you network (and not just online)? How is your follow up, really? Does management have your back or are you just off the back?

When you look at things realistically, you've never sold a car in your life. Not trying for semantics here, just a honest look under the hood. Ever had a green pea outsell you? Of course! Today it's much more about everything but the sale. Don't pull the wool over your own eyes.

When recommending new technology, companies or services to dealer clients, I continue to hear the same excuse as to why they won't use/buy/check out something that will be a complete benefit: "my people are just here to sell!" And there's the problem folks (or at least the biggest after credit and flooring/financing issues).

The more you act like you did when the gravy poured, the more you'll struggle. The more you treat customers like suckers, the more your showroom will chirp with the sound of crickets. However, the more you do things the you've ignored, the more you understand how to use technology, the more you keep up-to-date and trained, the more you listen to your prospects and clients, the more success you will experience.

The world's most expensive, luxurious, technological, streamlined, incredibly fast vehicle can't do crap if it's out of gas. The most beautiful facility with gleaming service bays, hi-tech lounge, ready-to-go espresso machine and great looking receptionist can't generate a dime without the right resources.

By the same token, quit expecting better results without doing the things that have to be done: having the right associates, educating them, using technology correctly, having the best vendors and support and 'filling up the tank to full'.

Start attracting business and maintaining it instead of…the opposite.

Best Practices: Professional Insight, Power Results

April 2, 2009 by Gary May 1
How Best To Help During The ‘Auto Crisis’: IM@CS Breaks Silence

With the exception to recent Twits (@imacsweb on Twitter) on the state of the auto industry in the form of short blurbs and links, I've steered clear of commenting deeper. This blog's focus (and definitely going forward) is to educate, motivate, inform, guide and challenge…let alone be a positive light rather than a black hole. Maybe it's time to change that for one day since, chances are, it's not going to get prettier anytime soon. So without further ado, here we go:

1. The OEMs are broken (read: all), and retail is more so

With all the focus on manufacturers, loans/bailouts, government intervention, production cuts, layoffs, and the potential disintegration of the economy, no significant focus has been put on the prominent issue (in my mind): where cars are sold. We're still a reactive industry and that's no way to get ahead folks.

2. Brands for most part aren't connecting with consumers, salespeople do even less

Advertising can't happen the way it has: push, force feed, capture, bombard. Marketing has changed: one-to-one, relevant, contextual, timely, engaging, valuable. Get rid of the "when can you come down?!" mentality. You don't want that as a consumer so stop doing it. Why are you doing the same thing and expecting a different result?
Dealers: Oh, here's a new one. It doesn't matter what logo you sell on the piece of rusting metal: start selling your brand and if you don't know what your brand is, create one.

3. Budgets: Want to 'cut and wait'?…ok, in English that roughly translates to 'suicide'

If you want out, an exit strategy is recommended. If you're planning on staying in business, DO business.
OEMs: Why in the world would you cut Interactive for TV today? Don't worry, that's a rhetorical question. Shame on you. Want to stay with a current vendor instead of the newer, agile, lower cost one? Won't take meetings or talk to new suppliers: big mistake.
Dealers: You can have a viable to completely comprehensive marketing program for less than $10,000 per month (larger; less than $15,000, small, less than $7,000). Don't stop spending because it's the flavor of the week. Spend smarter, educate and support your staff (replace those you need to), understand what you're doing, get accountability and do more.

4. While 'news' media is garbage (but sells), the industry does little to battle conventional sentiment

Anyone that watches network/local news could have a better experience banging their head against a brick wall. People (smart and not-so-much) are still watching it. So what are you doing to educate your prospects, clients and others that you have a great brand (NOT the franchise!), have great products and services, have great ways to provide them with your products and services, will exceed their expectations and that you're there for them?

5. Consumers control consumption and engagement…and were still printing and running car ads?

Quit trying to fight a battle we'll lose every time. People consume content they want, when they want, how they want and where they want. Ads don't work: TV, radio or other methods are not effective. Shred newspaper, drop cable, hang direct mail out to dry and cut radio (dealers only: take your conventional ad agency out for their last expensive lunch). Communicate with people on their terms and be goshdarnwhoopdydoopty good at it.

6. Technology is the way, coupled with education and topped with strategy

Yes, new stuff can be vewy, vewy scawey (sorry, that's my best Elmer Fudd). The industry tries something new, early adopters scowl, doubting Thomas-es shake their heads and executives shrug shoulders, everyone quits. The providers get frustrated because nobody gave it a chance and consumers don't get what they want. Other major industries seem to be able to roll just a little easier. No excuses work here, just get over it and do what needs to get done.

We can run and hide, point fingers and continue to run business the way we have. Or we can pick up ourselves by the bootstraps, collaborate (boy would the earth move if that one happened), check egos at the door, innovate and get damn proud about the largest industry in the US that provides 20 out of every 100 tax dollars nationally.

OEMs: Expect more from your marketing dollars: effectiveness, return, creativity and impact. Talk to and truly consider every company that walks in your door. Try it. It might be better than what you think you have now. If you're not sure, ask a bunch of consumers and (yes) listen.
Dealers: Bank tanked? Call your local credit union! Salespeople can't cut it? Don't let your desk manager go, let him/her sell again (chances are they have the chops). Marketing: online, email, mobile (yes, mobile), CRM, one-to-one, social media and more.

This may not have the answers you are looking for. Hopefully, however, it has made you think again about at least one aspect of your current condition and started your shift from 'effect' mentality to the 'cause' side.

If we don't do it, there won't be a 'we'

Best Practices: Professional Insight, Power Results

March 25, 2009 by Gary May 0
Success: A Four-Letter Word? Not Today

It used to be, by common knowledge, that success was defined by work (and how much you did). Now days it seems success is defined by smaller multi-million dollar losses, one more gizmo sold than the competition, not spending anything compared to what you did last year and more or the like.

I'm not the first to remind everyone not to lower the bar too far or get to the point where goal setting is replaced by complacency. But I may be one of the first to say: just remember why you got into business in the first place! Now, you may have been fortunate to fall into a highly profitable business/niche just because you had the money to get in. Good job (not great, though).

If you have built your name, presence and equity with a solid foundation, it's time to kick yourself into high gear. Maintain your business plan, don't create a new one for hard times. Adjust, don't start over. Keep your edge and aim to do better than 'just maintain'.

Right now it's more important than ever to:
1. Talk with EVERY prospect and client (don't talk at them)
2. Validate EVERY opportunity you have (people do things for their reasons, not yours)
3. Set goals and write EVERY one down (you can't hit what you can 't see)
4. Follow up with EVERYONE (the ones you don't stay in touch with become someone else's best client)
5. Support EVERY aspect of your business (not just what you're most comfortable with)

Hard work is more important than ever, just remember why you're doing it and what kind of results you're looking for. If you're determined to succeed, have all of your employees, vendors and clients supporting you, continually deliver products/services and great value on time and per your commitments, chances are you'll win.

What ever you decide to do, do it well and do it every time. Here's to success!!

Best Practices: Professional Insight, Power Results

March 20, 2009 by Gary May 0
Cracking The Code: Marketing Presence

What is it about marketing that has dealers so perplexed? It's not the act of marketing your brand, inventory, service panache, amazing staff, luxury facility, location, exclusive offerings and more that matters as much as how you do it and the completeness of your marketing.

It used to be enough to 'silo' advertise: one ad in the newspaper, one direct mail, one newsletter, one TV spot (over and over again…) and the like. The issue was that if the target didn't see/threw out/ignored/didn't fully read, etc your ad, you were done for. Remember: people want to consume content when they want, how they want, where they want, the amount they want and react to it the way they want.

So why are you content with a website and some email blast activities? That's not marketing as much as it is a band-aid. Think of it this way: how complete is your coverage? Would you buy insurance for two tires, a headlight, the drive shaft and tailpipe and not the rest of the car? Why are you partially marketing then?

Not only does your content need to be timely, contextual and relevant, it needs to be able to be seen by anyone, any time and anywhere.  Do you have a mobile site with inventory? Do you text message? Is your website dynamic? Are your eNewsletters actually engaging and do they drive results (traffic and sales)? How is your Facebook and Twitter volume in addition to your other social media efforts?

You wouldn't want to leave the house with one sock missing, half your collar sticking up, two different shoes and a jacket with a hole in the back (although I've seen some salespeople looking like this…) so don't leave your marketing undone or incomplete.

And another thing: you don't have to do everything you hear about. Do what you do well, learn news ways to market and effectively communicate, work with your vendors on new technology and push the envelope consistently. Every dealer tells me the same thing: "I just want to sell cars and not worry about the other stuff!". You have to worry about it and do something as well, but if you market the same way you did six months ago, how are your results going to be any different?

Build a presence that you're proud of and work it…or someone else will work you!

Best Practices: Professional Insight, Power Results

March 18, 2009 by Gary May 0
You Might Drop The Ball, But Don’t Let It Become An Anchor

When you're in sales, management or any position dealing with customers, you're likely to do it: drop the ball. It's part of the continual education process. Even today with unbelievably well-working software, applications, technology and our electronic leashes, it's inevitable that you'll not do what you were supposed to do.

So why do some people drop the ball only occasionally and recover while others seem to live in the mire of their undone tasks? Perspective, ambition and goals as well as an undying commitment to the customer. If you find that you consistently leave the 'little things' undone, get help. It's most likely that you have the ability to, but lack some of the keys to break through to success.

Lately I've had the pleasure of reading articles in ADM and Selling Iron (Brain Food) that deal with the "if we had done this, we wouldn't have had to do that" mentality. And they're totally right! Car dealerships are notorious when it comes to taking care of customers. So why not go the extra mile and make sure that you've followed up, called, delivered, asked, surveyed, invited, confirmed, qualified and more?

Many salespeople I talk to or witness after they've dropped the ball have the same issues:

1. Lack of ownership (ie. blame someone else at the dealership or the customer!)
2. Didn't set a reminder or some other tool to support accomplishing the task
3. Didn't adequately pass off the task to another responsible party (when needed)
4. Didn't ensure that the customer was completely taken care of/satisfied
5. Didn't care (which is just plain pitiful so go sell flowers or oranges on the street corner PLEASE)

If you make a commitment to handle something, do it. It doesn't matter if it's part of the sales process (which has its own ramifications), or simply sending the spare key to the customer after it was dropped in the showroom. In today's environment, it's more important than ever to dot your i's and cross your t's. The stuff that would be swept under the rug just a couple years ago will have you looking for a new job now.

We're all likely to make mistakes. Do everything you can to avoid those mistakes but following a process and following up. If you can't handle something simply don't make the comitment that you will. The difference in learning from salesmanship mistakes and not repeating them versus dropping the ball repeatedly and refusing to improve is dramatic. It's also what's separating many dealerships today.

Don't be an anchor, pick up the ball and run Forrest, run!

Best practices: Professional Insight, Powerful Results

March 10, 2009 by Gary May 0
How Are Your Numbers? It Is A Numbers Game Alright So Change Things!

Anyone with a background in sales has heard, read and/or said the following: "it's a numbers game". And it's amazingly true no matter what your industry or product. The best in any field contact, communicate and retain better based on the fact that they've got to get to more people. So what is your excuse?

Let's face it, sales are not only down (some estimates last week put February's number at well under 700,000 units) but they're expected to be so for quite a while. If you're 'expecting' a turn-around in the next year or two (many are) and you're waiting…you're dead. Einstein was credited with saying "the definition of insanity is doing the same thing over and over and expecting a different result". Do you fall into that description? If so, there are a few categories you can slide into going forward:

1D: If you view things one dimensionally, keep talking to people. Only talk to more people. Again, it's a numbers game. Let's say your "nut" is $6,000 per month. How can you do that if traffic is down 50%? You've got to stretch your mind and get out there and talk with more people. Heck, you may have to actually give your business card out at lunch, dinner, baseball games and chamber of commerce meetings.

2D: You are used to doing more but two dimensional people just do more of the same type of activities. You've built a referral network on top of your walk-ins and repeats but it's just not delivering. Start doing new activities including taking copious notes about your clients and get your database to start working for you.

3D: Yes, you are among the people that make things happen: showroom, network, database, online, social media, email, text messaging and even, yes, live chat. While you have the greatest opportunity, don't get complacent. Since you have more people to contact from, it should be the easiest for you to move ahead!

If you don't like your numbers, do something about it. And don't do the same thing you did last time. Really do something new, creative, different, innovative. Your greatest obstacle is not your inventory or customers or location or facility…it's you. Suggest things, move things, try things, change things.

Your challenge is to work the numbers. Don't stop short under any circumstance. Plan your work and work your plan. Make sure the numbers make sense which means one thing: there's more of them.

Best practices: Professional Insight, Powerful Results

March 1, 2009 by Gary May 0
What Are You Doing About What Your Competition Is Not?

Everyone's worried about their bottom line, revenues, expenses, marketing,future and what's going to happen next. Worrying so much they have forgotten how to think forward and act intuitively. Better yet, they're not even paying attention to what is not being done by competitors (in and out-of-brand) that can easily be capitalized on.

Two years we were talking about 'an edge'. Now most every dealership is talking about falling off of it. Nothing has changed…nothing! Now, you may have to be more selective and conscience. But you have to market, you have to connect, you must communicate and you absolutely need to build.

Here's a little secret about what 80-90% of dealerships in your market are not doing (or doing effectively at all):

  • Online marketing: SEO, SEM (paid search/PPC, banner ads, etc)
    • Google Analytics (please!)
  • Customer Relationship Management: email, events, incentives
  • Social networking: Facebook, Twitter, Plaxo, etc for increase engagement
    • And drives first two bullets!
  • Reputation management: DealerRater, CarFolks, MyDealerReport, Yelp, etc
    • And drives first three bullets!
  • Capitalize on resources for education
    • Automotive Digest, Digital Dealer, AutomotiveDigitalMarketing, Driving Sales
  • Capitalize on resources for training
    • Consultants, brand events, networking (chamber, local businesses, etc)

More often than not, 10% or less of the 'things that must get done' are and even when they do get done, they're not maintained. Some of the MOST fundamental activities are just not being done and for what?

  • The road to hell is paved with good intention
  • The road to debt is paved with discounts
  • The reason that 90% of people fail is the inability to deal with people
  • Nobody ever earned a dollar without spending one

These are the times when (as a good friend of mine in the industry put it) you can get a larger piece of a smaller pie or you can save yourself to death. Most everything listed here can be done for free to hundred of dollars per month.

One of IM@CS' clients has reduced their marketing expense by nearly 85%, increased their brand exposure, delivered more cars in the past month than they did over the past six, is driving over 25% more web traffic and nearly doubling their own website leads over the past three quarters. They're doing all of the above.

It's completely up to you. So what are you doing about what your competition is not? Someone has to wake up first and get going. It might as well be you!

Best practices: Professional Insight, Powerful Results

February 19, 2009 by Gary May 0
OK, It’s Time To Get It…Follow Up Is The Key!

It doesn't matter who you are, what you sell or where you sell. Further, it doesn't matter if you're actively selling or making sales happen away from the front lines. There are a number of things that make business tick:

  1. Passion about what you're doing and/or representing
  2. Solid fundamentals; especially process
  3. Understanding and belief in your business' mission and/or goals

Some still count on their manufacturer's brand or their 'book of business' to bring in customers.  If you can still enjoy that luxury today, count yourself as extremely fortunate. For most businesses, that's not the case. But, it's not as difficult as many make it.

A few things are paramount and undeniable:

  1. People want to know what's in it for them
  2. People don't care how much you know until they know how much you care
  3. People want to understand value, advantage or benefit

Simply put, consumers want a reason to connect. The number one active failure is follow up, bar none. When you tell someone that you'll call them back in 30 minutes, keep your word. When you say that a customer will be taken care of, it's your job to ensure that (and be careful because their understanding of what that means may be dramatically different than yours!). If a person understands that something will be replaced, delivered or set aside, do it!

More and more, I find that follow up is atrocious. You'd figure with fewer sales, dramatically less people visiting businesses and more time to do the proper things, we'd be getting it right. It comes down to driving effective results, which comes from setting expectations and delivering! If you don't have good follow up you're dead. And not just an alert in your CRM…really do it!

Many time, follow up is the job of a customer service department or a BDC. No matter what, whoever handles follow up represents the whole company. I've heard it many times that a salesperson will excuse a customer's opinion or experience because "customer service did the follow up, not me". News flash: you're deaf, dumb and blind if you believe that.

Yes, first impressions are lasting ones. But the last impressions may be all for many consumers today and that could severely impact your business. If you don't leverage software or other technology, have reminders and build a plan (and cushion) into your day every day, you are in for a rude awakening.

Think about these things:

  • Time effectiveness = results / time
  • The principal of stewardship is taking responsibility over what you have
  • Success is the progressive realization of a worthwhile dream or goal
  • Change is made when you:
    1. Decide to make business happen
    2. Make a commitment to follow up
    3. Put action into decision and commitment

Make follow up a critical part of your business plan and do it right. It's not someone else's responsibility, it's yours. Or else it's someone else's business! And have a purpose to succeed.

No purpose –> No goals        Know purpose –> Know goals

Best practices: Professional Insight, Powerful Results

February 15, 2009 by Gary May 0
Best Practice Consutling: How And Why Do It? Can’t I Just Watch An Online Video?

Why hire a consultant or contractor? Why pay someone for a little work when I can bring on a new employee for the same or less? Consultants only tell you what you already know but charge you for it! I don't want an idea or process person, I want a do-it person!

Yes, those are common comments (direct or indirect) that reflect some of the frustration that is typically borne out of paying for something that you believe you're getting versus what you actually get. Truth is the greatest benefits a business can ever receive is accurate 'outside' information.

Many people ask what 'best practices' are or why the term is used instead of just 'consulting'. Since there are many ways to interpret how a goal is set, course of action is drawn, possibilities determined and application is completed, it is important to ensure constant collaboration. Fact is, so many aspects can be viewed subjectively. Also consider that anyone can sell or buy what's in a book or what has already been done. More often than not in today's climate, what's necessary are customized or completely unique solutions that must be applied. The partnership between provider and client along with very specific goals are the glue.

The Wikipedia defines best practices as follows:

An idea that asserts that there is a technique,
method, process, activity, incentive or reward that is more effective
at delivering a particular outcome than any other technique, method,
process, etc. The idea is that with proper processes, checks, and
testing, a desired outcome can be delivered with fewer problems and
unforeseen complications. Best practices can also be defined as the
most efficient (least amount of effort) and effective (best results)
way of accomplishing a task, based on repeatable procedures that have
proven themselves over time for large numbers of people.

Despite the need to improve on processes as times change and things evolve, best-practice is considered by some as a business buzzword
used to describe the process of developing and following a standard way
of doing things that multiple organizations can use for management,
policy, and especially software systems.

As the term has become more popular, some organizations have begun
using "best practices" to refer to what are in fact 'rules', causing a linguistic drift in which a new term such as "good ideas" is needed to refer to what would previously have been called "best practices."

Simply put, it describes a concept of being dynamic and staying out front via perpetual process improvement. If the goals for your business include fundamental advancement, engagement, education and awareness, it may just be what you need.

There are some great consultants out there. Take the time to find one that works based on your needs, not theirs. Right now more dealerships than ever need help. Things are changing so rapidly and they won't stop. Get someone from outside your business to help things run better for your business. And listen…you'll thank me later.

Best practices: Professional Insight, Powerful Results

February 11, 2009 by Gary May 0
What Do You Think It Will Take To Change? Hello?

Sometimes it helps being a cynic and a pessimist, or at least devil's advocate but at the end of the day you're either your own worst enemy or best ding-dang advocate.  It is always beneficial to see things with a different perspective but critically important to maintain your identity and job jump in the pool for the sake of it, no matter how fun the party.

Recently I've read two good articles. One by Joe Webb (President of Dealer Knows) in Digital Dealer Magazine. The other a blog post by Matt Watson (VIN Solutions) on AutomotiveDigitalMarketing.com. Both deal with perception versus reality, pitch versus practice and simply understanding what you have and need before you're had.  Two common carriers of bias at the dealership level: a rep and an excited, overzealous  employee. Both are doing their job but if you to change anything you've got to address everything.

While results typically flow bottom up, change is managed top down. Changing your online results will not come from some videos on YouTube and some 'vSEO' on your website. Update all of your touch-points, become contextually relevant and timely, make sure your brand connects and apply process consistently. Changing how your employees act will not come from a new company policy solely either.

SEO and SEM are hot topics…and should be managed in tandem with your website and CRM. Having a bunch of disparate systems and efforts out there is like fishing with two poles…3,000 miles apart from each other. It just doesn't make sense!

Search engine optimization is an ongoing task with great opportunity, not a "got it with my website two years ago" item. When was the last time you looked closely at your analytics or, better yet, looked at your site with an overlay so you can see real numbers and statistics against what you think your consumers see. That's always an interesting meeting with my clients.

Change is never done. If you don't continue to change because you need to, because your competition is or because you can and make the right changes…you lose. The change everyone has been talking about for months is cutting everything and everywhere with very little regard. You see, that's not a change from troubled times in the past, especially for dealers and OEMs.

Our greatest changes are still in front of us. Are you ready? And what do you think it will take to change? Think about it and do it.

Best practices: Professional Insight, Powerful Results

February 9, 2009 by Gary May 0