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DSES: Can You Feel Me Or Is It The Customer Experience?

DrivingSales Executive Summit 2014 is officially in the books. It was a sold out event once again that enveloped the Bellagio Hotel in Las Vegas for the better part of three days. Planned was a (digital) star-studded keynote speaker list plus some of the finest breakout speakers, many dealers, for those in attendance. Here's some highlights form the event from IM@CS' perspective:

Day One

Just as last year, there was a Canadian Breakout Session housing some of the top companies from our neighbors to the north along with some powerful presenters including Grant Gooley and Jeremy Wyant. Jay Radke and Brent Wees definitely brought the "eh" for a second time. Rumor is that next year will be bigger and better (and DSES will NOT be during Canadian Thanksgiving!).

After Emcee Charlie Vogelheim’s grandiose welcome of the attendees, DrivingSales' founder Jared Hamilton managed a uniquely powerful opening recognizing a few members of the car dealer community from stage for thie personal triumphs and celebrations. Most poignant was a heartfelt message and standing ovation for Courtney Cox Cole of Hare Chevrolet. Just completing her last round of chemotherapy a few days prior to the opening of DSES, her presence was missed however her spirit was felt.

The first keynote was Florian Zettelmeyer of The Kellogg School of Management hitting hard on data, telling dealership attendees to get smart on analytics. Well, it was more like "become data scientists", however put the message was clear. This year's Best Idea Contest followed and the audience was treated to some unique ways of approaching the "digital sprawl" that's occurring for dealerships (winner was a repeat of last year, Robert Karbaum). Add to that Mr. Vogelheim’s “costume” unveil, a cowboy shirt that was a present from CADA’s Tim Jackson.

Breakouts began and the session IM@CS attended was with Shaun Raines and Tom White Jr. As expected they hit their stride quickly offering specific actions to dealers that want to build a unique brand, market awareness and make customers the center of their world. Word back from other sessions was positive.

The Fireside Chat that followed had good information however it lacked some of the powerful punch from previous events (DSES and Presidents Club) that had the audience leaning forward or nodding/shaking heads in agreement/dischord. Jared guided Cars.com's Mitch Golub and DealerSocket's Jonathan Ord through a bevy of industry-directional questions and statements.

Day one's evening keynote was Brian Solis, who essentially is Altimeter Group's head analyst focusing on disruptive technology. As expected he brought insight, candor and a new perspectives to the majority-dealer audience, bringing up challenges and opportunities that the industry is facing now and in the near term. He touched on customer experience, the mobile audience, disruption occurring now that is effecting vehicle sales (Tesla and Uber were examples). He signed books immediately after as the reception began.

Day Two

Mike Hudson from eMarketer, a nicely-paced review of where the target is moving with consumers in regard to mobile, engagement, disruptive tech and how the sales funnel has move. Like Solis the evening before, he warned dealers and OEMs to stay up with consumer demand for information and provide only value-based experiences.

Breakouts followed and included such speakers as Bobbie Herron and Brian Armstrong in a joint session on utilizing a BDC or not and Jeff Kershner discussing the mobile-based shift for today’s showrooms. Then Jared hosted a fireside chat with two top executives from the newly-formed CDK Global (previously The Cobalt Group). The keynote before lunch featured Adam Justis of Adobe talking about how dealership marketing must be customer-centric and fully integrated, further pushing the “customer experience” drumbeat for the weekend.

After lunch it was Innovation Cup time and this year’s finalists covered a broad range of dealer services. Not all new however all had a updated take on what is essentially consumer engagement via their technology (NewCarIQ ended up with the win).

Then, it was time for speed listening with Jared Hamilton. His keynote this year, “Competing on Customer Experience”, was another blistering wordfest of reality and must-do strategy, followed by a first-of-its-kind video compilation of customer feedback on car buying experiences. The full study isn’t due until next year, however the teaser included a handful of truthful, hard-hitting testimonials that dealers must listen to.

Afternoon breakouts ensued, showcasing among others Eric Miltsch of Command Z Marketing on wearable tech, Megan Barto of Ciocca Honda & Hyundai on dealership culture, Mike Martinez of DMEautomtoive on putting mobile as your top strategy, Mario Clementoni of NADA on best practices and Joe Chura of Dealer Inspire on website/lead optimization. Chura gave out some valuable “freebies”, third party tips, software/programs and offers that included one from Google not previously known.

Closing our day two was a second-time speaker that couldn’t have come at a more appropriate time. Rand Fishkin of MOZ (formerly SEOmoz) dove right into what must-use best practices need to be deployed today for SEO to stick. Raising the bar he set two years ago, his presentation dealt with can-do/don’t-do advice and the Q&A addressed misinformation/misconceptions that many dealers hear regularly through auto industry sources.

Day Three

Charlie and Jared started the morning with the winners of the Innovation Cup then immediately into the 4^th Annual Digital Media Debate hosted by Joe Webb of DealerKnows Consulting. A slightly different format than previous years, two retail executives, two consultants and two vendors addressed topics ranging from Adaptive vs Responsive websites to relying on third party leads, conglomerate vendors versus specialized suppliers and one-price stores versus traditional.

The last round of breakouts showcased Christian Salazar of DealerFire on how consumers are finding your website and content, Aaron Wirtz from Subaru of Wichita recapping how the store addressed their potentially damaging PR debacle and turned it into a complete positive (that ended up going viral) and David Kain of Kain Automotive talking about how to make memorable connections with your customers that last.

Closing the 2014 DSES event was Bryan Eisenberg of Eisenberg Holdings. His presentation, bookending Florian’s from Sunday, was an appropriate ending note on the customer experience “Cool-Aid”. Hitting right on topic after topic regarding analytics, measurement, impending trends in consumer shopping and more, Mr. Eisenberg pulled no punches in telling dealers how they need to change their marketing practices to match the consumer path.

Charlie then reintroduced Jared for the shortest closing remarks of the six years DSES has been produced for the industry’s leading dealerships. It was a fitting end to what surely was the most information-filled conference of the year.

Kudos to the DrivingSales team!

Best Practcies: Professional Insight, Powerful Results

Gary May

www.imacsweb.com

Want R.O.I. on Anything? Start Using Anything! (Or Settle For B.S.)

One of the first questions that is asked of us when engaging a dealership is “what is the R.O.I. of (fill in the blank)?” Well our friends, from leads to software, to websites and PPC, the question that is being asked is wrong. If you ask what is the R.O.I. of a product, let me ask you what is the R.O.I. of air?

Well, it’s noting if you don’t use it.

Over the past seven years, we have proven over and over a multiple R.O.I. on all digital aspects compared to before we arrived. And remember, that is usually with no or little vendor changes. Why is this? Because there is no return of investment without education, understanding and utilization.

Dealerships usually buy due to fear or loss, standardization or acceptance of a product, or a unique opportunity (first-in-market). Rarely are those opportunities truly vetted out. While we are not saying to stop before purchasing a product or service that has market penetration because there is a compelling otherwise to do so, we are advocating full assessment prior to signing.

Take lead providers, for example. While most have taken a (B.S.) marketing position and away from you buying leads, most dealers have more “opportunities” in their ILM/CRM than they know how to handle. Buying more leads? Usually you drop your R.O.I.

Also, return on investment is calculated improperly. Is it closer to income and expense or profit and loss? Yes. Until you are properly educated, coached and assessed regularly, there is no R.O.I. because the assumptions are in the wrong place. Show me a dealer closing 10% of their leads, add another provider and, after six months, you will have a dealer with a higher cost structure closing 10% of their leads. Insanity.

Spoiler alert: do the math, work it and get results. For every new website, software, marketing tool and process, you must back it up with hard-core training (no matter how much that word sucks) and sustainment. That is how our average client that buys in fully to our processes and business rules doubles results in less than a year.

Recently we have heard about more catastrophic website or software installs than ever before. What’s the R.O.I. on a vendor search, pitches, proposal and negotiations, set-up fees, months frustratingly lost followed a switch back to the previous or another new provider?

Stop talking about R.O.I. until you spend more on your personnel, education, accountability, scoring, bonuses (not get-it-done spiffs, by the way) and intra-staff support. That’s when you get return.

Until then, you can continue to buy based off of “your competitor is using this and they’ll eat your lunch” or “only 5 more cars sold with our biz-bang-boom and you’re in profit!” or any other snake oil sales job you fall for.

Oh…and one more thing to consider. Results occur top-down with an true ownership, understanding perspective. Not bottom-up make this work garbage. So take that pill and swallow it…

Best Practices: Professional Insight, Powerful Results

Gary May

www.imacsweb.com

Consulting Conundrum: “You can do whatever you want, as long as…”

Yes, this is opinion. However don't take it as fable.

It’s the consistent vicious circle in consulting: do it all as long as it’s what is wanted at that moment, backed up by someone else, doesn’t bite back at the factory stance, mostly makes sense and when you can grab the proper attention. And don’t blink because all of that can change with one call or a visit from a nice set of pearly whites with a tan and a low-slung top.

In a dramatically fluid world, all of that is a constant.

Meeting with a dealer the other day, their factory (only) site has issues, their SEO/SEM isn’t close to completely transparent in work, reporting or results, their new CRM isn’t installed properly or completely and their sales team can’t seem to do their job. And the store is doing, what most would consider, fine.

In less than five hours, a solution to every hole that was shot in their operation was provided, a path to resolution (in some cases multiple) was drawn out and improvement benchmarks were communicated. All without spending a dollar more in vendors, leads, software or services. And everything was documented.

Very few of us in the consulting world face this; because most aren’t consultants. Most of them are resellers, reps, paid advocates, commission reapers, factory program overseers, old-school trainers with a new world attack and/or recently departed vendor/dealership staff. Consulting, ladies and gentlemen, is a craft rather than a hobby. True consultants create understanding, buy-in, advocacy and results, in that order. And they listen, a lot.

If your costs just went up north of $10,000 per month and you’ll see your consultant one day per month, you should check the other hand of the person you just signed a contract (warning sign) with and see if their fingers are crossed.

As the industry shifted slowly over the past ten plus years, it created a natural recommendation engine that exists more powerful than ever. Don’t believe me? Contact your OEM, ask for a solution or provider for a problem you have in any category, especially digital, and then ask about results for any one or a group of dealerships. And get that preferably in a report with before and after metrics, costs, process changes and net improvement.

Oh, and you might want to hold on to your four-leaf clover.

In a world where businesses still make decisions by how many “covers” or “articles” someone was been on/in or how many times they’ve heard of a potential partner during a golf outing or 20 Group, industry metrics are moving slower than the speed of solutions. Hellloooo, it should be the other way around.

There are no overnight solutions, silver bullets or cash cows, at least legal and/or ethical. Use tried and true sensibilities: ask for more recommendations than someone offers. Look at more live solutions than you are given, dig deeper before you spend deeper. Oh, and if it sounds too good………

Car dealers, do yourself a huge favor. Get a second opinion on everything as if you’d just received a heartbreaking medical prognosis. In both cases your life depends on it.

Best Practices: Professional Insight, Powerful Results

Gary May

www.imacsweb.com

Natural Unselection (It Takes Time…)

Yes, it is getting more and more difficult for business owners to make decisions today that will positively impact their business, especially in the arena of digital marketing. You might say “bull hooey” and protest that it has become easier. And you’d be half fright…

Nothing is more frustrating to a business owner that not understanding something that should otherwise be “easy” to do so. That’s where misguided trust and blind recommendations become so darn appealing. Attend a 20 Group and you just might be amazed as to how eloquent an otherwise inept presenter can be.

We live in a world of regurgitated content, many times so prolific that anyone can claim it to be theirs. Car dealers and executive management, typically, know what has been and possibly what is happening now. They’re still overwhelmingly blind to what is going to happen, even though it’s in front of their eyes. And smartphones.

However, the chasm that exists does so simply because the dots aren’t connecting. In other words, they “get” that they need to market in a new channel, or completely store prospective and customer data in CRM, or spend time understanding new reports. While there is no excuse, none whatsoever including “time”, to not do any or all of that, there is at least bandwidth to consider.

As much as it easy to blame the OEM for (many) programs of epically disastrous proportion, it is up to the dealer to make sure their house is in order.

The struggle that has presented itself over the past 3-4 years, and it’s gaining momentum by the way, isn’t whether to do more, invest more, hire more or attend more, it is truly around letting go of operations to those that they have in power and get immersed the way they did when they started selling, or working in the service drive, or washing cars for their owner-parent while memorizing the specifications to 95% of the cars each year. More than ever you must have a desire to consume, learn, test and challenge yourself. And, ahem, everyone around you.

Recently, especially if you get caught up in rumor, there has been more and more reports of OEM digital, education and training programs being under scrutiny. Enter in shock and awe. Well, at least for everyone but those unfortunate few of us who called into question the very under-budgeted, under-staffed, under-educated, under-facilitated, under-read, under-thought-through contracts. While the programs disserve the OEMs, dealers (at least progressive and knowledgeable ones) are pretty much disgusted. And no, the programs are not responsible for selling more than a negligible increase in amount of cars. Period.

Now here’s the conundrum….we can’t throw another conference at them. We can’t throw another “digital marketing”, or “social media”, or “digital consulting”, or “new age training“ company at them either (you can here the shotguns loading now). And you’ll not be able to convince them that the person visiting them with zero hands-on experience in anything he/she is talking about will make a difference. Unfortunately they might have to let that person visit to make the factory happy. Ugh.

Dealers and OEMs should be able to (stop everything they’re doing and) reevaluate the broken CSI, allocation and reward programs that current exist. Then, as one example, build new models that actually reward dealers who perform exceptionally for their sales and service customers, not exclusive to volume, according to only those customers (versus third party companies), transparent, benchmarked scoring (imaging that!) and overall investment (including but not limited to the facility).

Yes, customers expect more. And that’s not going to stop, ever. And yes, more cars are selling; same with large new-technology televisions, tablets and dinner reservations. When the “easy” sales stop again, fewer dealers will be ready for reality. At least the reality they’re living on and sold by people who shouldn’t be selling them…

Best Practices: Professional Insight, Powerful Results

Gary May

www.imacsweb.com

What Tough Times Have Taught Us About Digital

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

Gary May

www.imacsweb.com

You Didn’t Care About The Cheese In the First Place, So Move On

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

Gary May

www.imacsweb.com

Automotive Digital: The Cost of Being Minimized

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…

Gary May

www.imacsweb.com

What’s Not Coming In 2014: The Anti-Prediction

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.

# # #

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.

Gary May

www.imacsweb.com

Tipping The Scales. Against An 800 Pound Gorilla…

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

Gary May

www.imacsweb.com

The Year 2012 In Review? (What’s An Automotive Industry Nutshell?)

(Warning, 1000 words below!)

OK,
who's got their 2013 game face on? Nobody? Good, let's make things difficult!!!
2012 was one heck of a year: consumer demand is still up and growing for cars
(although demand still outstrips what sold), mobile use is skyrocketing (albeit
not remotely matched by dealers providing strong solutions), digital demand is
still growing at a breakneck pace (while use of traditional media by
dealerships is up), vehicle technology, especially in-car, is amazing and
overwhelming (while we still can't truly get a MPG sticker correct without driving like we're dying) and quality
is better than even with IQS improving (hand-in-hand with more
"media" coverage of massive recalls). Yup, 2012 was quite the year…

So ask
a car dealership what they're doing and about 16,500 answers will flutter
around "more _________ and less ________ while focusing on our key
strengths in _____________". And that, by the way, will be the answer
around January 5-15th because, unlike other industries that revolve around
retail, we seem to be focused on a date non later than January 5 to close the
year. Newsflash: 2012 is done. Make more calls, send more emails, offer more
dealer cash/rebates/incentives/consumer cash/financing discounts and leases and
you're still not going to sell more. Hello?!?! The "Oh, we pulled 10 more
from our competitor" crap doesn't fly. You'll sell what was essentially
already in the hopper and be happy with it.

Over the last twelve months we saw
highs and lows in the automotive industry, mostly driven by International
factors like economy, emerging markets, regulation, partnership and bankruptcy.
As a matter of fact, we are more tied than ever to what happens in Europe and
Asia, even considering how insular as we tend to be. Whether or not we get to
see a new Cadillac in the States depends more on what happens in Germany than
ever while BMW's success likely depends on what happens in South Carolina. 2012
saw the continued demise of storied as well as soft brands everywhere.

In the passing of this last year, it's
important to reflect on how we actually invited people into showrooms while not
making it any more enjoyable (except for the new showrooms which mostly made
the factory happy while getting better looking floor tiles and slightly better
tasting coffee to customers and some of those neat kids' play rooms we desperately needed). We
switched website CMSs, dealership CRMs, DMSs, SMSs and POPs but did satisfaction with
dealerships actually go up as much as 2012 IQS? Jaguar is still tops
(well, 2nd behind Lexus for 2012 models) on the list and they can't seem to
sell the damn cats…

What did 2012 deliver to your business?
If you've not asked your customers more than your factory reps, your
salespeople and your accountant, you will miss the boat by a larger gap in
2013. Yes, you will continue to sell cars next year and maybe, fortunately more
again, but where does that stop based on solely looking back or not at all?

Where your concentration needs to be,
right now, is around March 2013 because your next 6-8 weeks are already figured
out for the most part. No matter how many "cycles" we have, after 100
years of automobile sales most think that there is some magic to the last few
weeks of the year. Bullhooey.

If you want to succeed starting next
Tuesday, there is no other way to do it than be steadfast in every aspect of
your staff, processes, facility and follow through. Your greatest efforts need
to be put into place around the touch points (hint: it's not the cars!). Those
are showroom (real and virtual) and people. Nothing else matters without those. We are asked regularly how to "jumpstart" sales to the
effect that many talk about in the industry. If you've not been bombarded by
spam marketing and videos, it usually sounds like "100 to 500 cars
overnight with our processes" and "our sales events will have people
driving in from everywhere" and don't forget "our websites will
optimize so well (or drive leads so easily), no other dealer will be able to
touch your numbers, you'll dominate and just have to deliver cars". Rat
dung!

Get the best assets in your business
today that understand how everyday people use technology and expect to be
communicated with. If that means more green peas, then do it! Training?!?!
Tearing down your salespeople to build them back up means you have the wrong
people and wrong processes! It's not "that Internet thing" any more
than your cars are "those things that have engines and tires". It's
time to grow up and look forward. If you 15-pounder 15% of your customers, expect 50%+ of
your reviews to scream you suck.

If you want to look at things in a
nutshell, read another whitepaper about how great a solution is (6- to
12-months after it's relevant while you signed up to get marketed like mad by the
same company) and look backward. Our industry is depending on people who look
forward with only what's needed about past performance as indicators, nothing
else. Improve incrementally prior to making the huge, sweeping changes like we
hear about so much and maybe, just maybe, you'll see about 3-4 months that the
big stuff is not so big after all because you were able to move the needle
consistently. Overnight success is a short-term facade over impending disaster.
Count on it.

2013 can be great for many, even
amongst the raising concerns about economic and other pressures. The best
always raise to the occasion, it's just that it needs to be done in newer ways
more consistently. And remember to make changes with anything that you do by
benchmarking and recording first because so many will pull the wool over your
eyes and scream "we did it for you!". We see it every day. There are
some great dealership partners out there. Remember that opportunity is missed
by most because it comes dressed in overalls. It's work and most of the time
it's slow.

So relish in the success you've had in
2012, you deserve it! At the same time try not to look back all that much. It
will take longer to catch up than you realize. The automotive world moves at
the speed of retail. That is the only truth. So stop slowing yourself down more
than needed.

Much success in 2012 and thanks for
continuing to read…

Best Practices: Professional
Insight, Powerful Results