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The Shiny New Tool Loses Luster: When The Belt Is Full

Come on, let's admit it. If someone launches a new tool, application, service, widget, doohickey, gizmo or gadget, we'll all explode. We are so full of tools, you likely feel like the Craftsman section at your local Sears…

Fact is we can probably expect more and that is what keeps pushing the bar forward. With the store closures, OEM staff reductions, agency layoffs and more you can likely look forward to more consultants, new software, increased industry service providers and just plain more 'stuff'.

And considering how most owners, GMs and GSMs buy stuff, there may be cause for more companies wanting to get their piece of a smaller spend pie because they're 'new, shiny, better, sexier or have great advertising'. Folks, we're not using all the tools you have currently, even if you don't really know how to use them in the first place (Ok, you can put all of your hands down because we know you haven't seen your so-called rep in nearly a year who promised the latest training you needed months ago).

More than ever, it's not about sticking with who you already have, simply saving a buck or not taking meetings with new vendors (excuses today are a penny a dozen). Simply put, you get what you pay for. If you are saving $200 a month between one service and another, you had better know what you're missing. If you're not investing in your staff's education/training (yes, I hate that word but the old guard will understand it), you might as well lower your unit forecast by 25-40%. And if you're not willing to take 'another meeting', you might as well hand a few extra dollars to your competitor down the street and take the rest of the week off.

Overwhelmed by technology? Don't ignore it, please! Don't understand something? Get a non-manager in your office that will use the tool/service and get THEIR take on it first hand, don't just give them a sell sheet and have them make a decision.

Over the next couple weeks, IM@CS is going to take a deeper dive into services available to the industry and write 'em up. We'll cover mobile, chat and inventory to start and see where it takes us. We hope to clear up misconceptions, especially around price since nearly everyone seems to be completely misguided on saving a buck versus being more effective. And then we'll try to take it from there…hope you get to use the information in profitable ways!!

Best practices: Professional Insight, Powerful Results

July 10, 2009 by Gary May 0
AutoTrader.com Wants You To Know: Chip Perry and Alan Smith Video

Picture 31 AT_Perry_SmithAlan Smith, Sr. Vice President of Dealer Sales, and Chip Perry, CEO, have created a video to share their take on the current issues shaping AutoTrader.com and dealership business today and what they're doing to deliver more value to the market. This is definitely not something you see often in any industry, let alone automotive, so chances are watching the whole video would be beneficial especially if you're an AT.com client.

With the uncertainty in our business and the necessity for more companies to be proactive and 'open book', it will be interesting to see if more providers attempt messages like this one.

Click on the video caption or here to launch the video page on AutoTrader.com's media website

June 30, 2009 by Gary May 2
I Think We Can…I Think We Can…We Better Think We Can

Boy, things were really humming there for the longest time and then the train ran off the track, or maybe the wheels simply came off. No matter what, we got to find out what it would be like for the industry to have a brake test. But instead of 60 to 0 in 137.6 feet, it was more like 17 million to under 10 million in a blink (try that supercars!)

Add to that the fact that somewhere along the way, we got just a little more than complacent…ok, we got really frickin' complacent! Now we have the choice to do things over the way 'we' did, or go down the road less traveled.

So we have to ask ourselves collectively some tough questions. Do we advertise the same way we did? Do we communicate the same way that we did? Do we build the same way we did? Do we sell the same way we did? If so, how can we expect different results? And for those that want to wait, how can you expect anything doing that?

Many indicators seem to show that we're doing a lot of the old things and just a few new things, and neither incredibly well. To get the results we truly want, it is so important to be realistic, admit when we can't do what's expected, challenge ourselves to new ways of thinking and get out of the way when it's time. If this train is getting back on the track, it had best be a brand new track and the engine clearly needs replacement rather then modification.

No matter what you're doing, start thinking and acting like consumers and start believing that success is our only goal. I'd like to tell you that the latest ads on TV, spots on radio, full pages in the magazine and full-disclosure rant in the newspaper were absolutely effective. Since I don't do any of those activities, I can't. And none of the people I regularly hang out with or talk with do either.

If we start thinking and believing that we can, and it truly shows, it'll likely happen. It's not rocket science. It's not about ignoring other very related issues. If we are going to be successful, we have to do it by ourselves. We have to believe that the results will be there because we did everything we had to…not somethings, everything.

And I think we can, I think we can (insert favorite choo-choo noise now).

Best practices: Professional Insight, Powerful Results

June 27, 2009 by Gary May 0
What Innovation Matters Most Right Now?

Are you excited by the latest technology in the newest model arriving at your showroom? Were you going crazy waiting for FedEx/UPS/USPS last week for your latest iPhone? Can't believe that your newest CRM ties your site, third party leads, phone calls, mail automation, showroom visits and more together? Didn't have to break traffic laws a week ago since you Tivo'd the first 10 minutes of the NBA finals knowing that you'd work late? All that is absolutely fantastic, but it's not the innovation that matters most.

Nothing that technology delivers, nothing that (supposedly) makes our lives better, nothing that is guaranteed to make our businesses run like clockwork matters until someone understands it, knows what to do with it and ultimately figures out how in hell to apply it, will mean anything…until there is a reason to use it in the first place.

In other words, why use Tivo (as good as it and DVRs are!) if you don't watch, let alone care about, anything on television?

What you care about getting done, so that you move closer to your dreams, goals and ambitions, should be the driver in using technology. The greatest innovations we can use best centers around communication. SImple. Period. Communication!

If you don't have anyone to communicate with and nothing to communicate about, technology means nearly nothing. As passionate as you can be about the latest $400-$4,000,000 items that center around innovation and technology aren't worth the patents they're built from until there is a real reason behind them.

If you're in business and plan to stay in business, use the latest and greatest but please have a purpose first. And make sure the purpose dovetails with process. Are you one of the stores that works on one CRM for 'the floor' and one for 'the Internet'? Why, why, why, why, why? Oh, I see…you like keeping other companies in business more than you want to save your own…ok. Got it!

One race matters and it's not to the sales title. It's the human one. Nobody will care about you until you show that you care about them first. Then you build a relationship (read: listen). Then use technology until the cows come home to communicate, track, follow up, excite, invite, connect, compel, validate, reward, incent, share, promote and so on and so on. And never make the technology more important than the relationship or the message. People ignore MASSIVE amounts of otherwise compelling content. We call it advertising (and most of it sucks people…especially in the auto industry).

For now, stick with the best innovation you have no matter what: your brain. Use it wisely, use it well, use it regularly…

And see you at the finish line!

Best Practices: Professional Insight, Powerful Results

June 20, 2009 by Gary May 0
The Letters Of Success…Acronym Style (Sort Of)

It's important that, from time to time, we stop to focus on the principles behind the goals we're aiming for in business and delivering the best customer experience. No matter what you're selling, you have to believe in what you do 110% and your business needs effective management, tools and support. Success comes from doing things over and over again, learning perpetually, listening intently and doing those things always.

Too often in 'our' industry there is a reluctance to look forward since the 'past' worked so well (sounds like a cop out to me!). In an attempt to bring us back to reality, here are some ways to think about the fundamentals in a way that hopefully works for you…

Practice
Responsible
Overall
Customer
Engagement through
Sales and
Service

Being
Responsible
Advocates of
Name and
Dedication

Keep
Nearby:
Opportunity
Willingness
Listening
Education
Dedication
Guidance and
Experience

Total
Employment of
Comprehensive tools
Handling
Needs:
Ongoing
Loyalty
Outreach and customer
Generation for
You

It's a must for suppliers, not just retailers:

Validate
Every
Need and
Direction
Of your
Retailers

This one is a little blatant (and selfish) but you'll surely get the point:

Considered
Other
Non-performing,
Senseless ways and
Ultimately
Learned
That I
Absolutely
Need
To hire one

All humor aside, it is critical to aim for success, build environments for success and be part of success. Remember that you don't find success (and it doesn't find you), you create it. One of the most niche products I've come across in the past 20 years is Camelback's hydration pack. They carved out quite a following. Their slogan? "Hydrate of Die". True: if you don't hydrate, you will die! And if you don't find a way to learn, do things differently (not just for the sake of it) and plot your course for success, you will die. Failure is part of success. Resistance, running, avoiding and simply burying your head in the sand, however, are futile.

Lead, be great, plan and succeed!

Best practices: Professional Insight, Powerful Results

June 15, 2009 by Gary May 0
Some Good Time With Some Dealers…MPG Style (Why Weren’t More There!?)

Tuesday's MPG event at Proud Bird at LAX was another great session. While we're typically greeting marketers, OEM executives and industry suppliers, this was a great departure and informative (if not inspiring!). Charlie Vogelheim moderated the panel and the room finished the day with great questions. In between, it was all perspective, passion, personality and even a little bit of 'personal'.

Enter Jon Gray (Orange Coast Jeep Chrysler Dodge), Peter Hoffman (Sierra Automotive Group) and Beau Boeckmann (Galpin Motors). OK, there were three domestic dealerships on the panel so you could say the 'bend' was deserved. That being said, dealership owners I've met have all spoken the same way regardless if they were a domestic or import store owner. Fact is these guys know the business and definitely from a perspective rarely caught in the 'media' headlines after networks and publishers are done devouring the OEM stories.

The three principals were asked about everything from the cost to sell a car, how long they've been in business, how many employees they have, involvement with charities…to their take on government involvement in the automotive industry, specifically GM and Chrysler (with the two dealers speaking about being 'in the clear' of store terminations…for now).

One of the most interesting answers the panel gave was in regards to the impact of the Internet on car sales. All were in agreement that our favorite technology has added cost to dealership sales operations, not decreased, while acknowledging that the transparency has provided some significant advantages to their business.

As expected, the most pointed comments were about Washington's takeover of GM and Chrysler (let's say Fiasler since the Fiat purchase is complete as of this morning) and Ford's ability to stay out of the Cirque d' AutoBiz. They spoke of close friends and associates being on the short end of the decision stick.

Reflecting on how auto retail has changed, Boeckmann talked about how attrition in their local market area over the past years has taken the Ford dealership count from 9 to 3. Hoffman related the story of Oldsmobile's unwind a few years ago and how different it is this time around. Gray talked about how disconnected the factory reps are from the reality of dealership business. Both Hoffman and Boeckmann talked about Saturn's new life, albeit from polar opposites: Galpin still has their Saturn franchise while Sierra sold theirs. They both hope for the best with Penske's purchase of the brand.

Boeckmann provided a unique perspective in being a retailer that has a very close relationship with headquarters, even getting to have input on future cars. Mostly, the three businessmen related how hard it is to get both consumers and manufacturers to think of dealerships in a positive light.  All three are obviously passionate about what they do and provide to their communities, and very likely more so today. Even if most dealerships today are in defense mode, these three seem to have a forward-thinking perspective that is completely refreshing backed by the fact that none are throwing in the towel anytime soon.

These retailers don't have golden parachutes, multi-million (or
billion) dollar bailout packages, rarely get to sell cars for the same
price every time (as the factories do), and  are searching for the
logic behind the banks over-reactive pull back (and well as the search for loans so consumers can buy cars). Having seen a handful of dealerships speaking on panels over the past four years, it is clear that it needs to happen much, much more. Kudos to the Motor Press Guild for having the three fine retailers in for a dose of reality (and even a little bit of business and political conjecture).

June 10, 2009 by Gary May 0
If We Only Had A Lightbulb To Screw In…And Other Mistakes We Make

How many times have you heard the proverbial saying…"How many (fill in the blank) does it take to screw in a light bulb?", even lately jokingly about the group of 'car czars' circling around Detroit. While we might focus on the joke or moral of the question, how many of us have the light bulb to start with?

If we always focus on the activities and not the goal, it is easy to understand why all the hubbub is around who gets to 'do' things. Considering how things are now, I'd be more concerned with making sure we have the right bulb, that it fits, that it will provide the right illumination and that we know where it came from in case we need more. Then I'd focus on who gets to have the joy of screwing it in!

And this is not endemic to just finding the right action person, it's perpetuated in so many other areas. Larry Pinci (of Sell The Feeling) put it well in a meeting we had not too long ago: "are you on the cause side of the equation or the effect side?". If you're in wait mode, or even better in 'head in the sand' mode, right now you're not on the right side of the equation.

Today I had a great conversation with a dealer in the Ventura area of Southern California in which we discussed branding, something he's been trying to get the owner to act on for quite some time. Part of the build up was him answering pointed questions about experience on their website, consumer engagement and reach. As we talked, he came up with some great answers as to what the site lacked. Until we know what the solution or goal is, the bulb turning (activities) doesn't matter!!!!!

VENDORS: Same thought process when considering how many vendors are pitching dealership GMs and principals today. Want to create a business partner or a sale? (hopefully you answer that one correctly). Want to have an opportunity or 5 minutes and get tossed? (and that one). So why are you trying to get something "sold" before you even know that there is a need identified. Hint: not a need, every business has needs. Rather a need that has been identified!!!!

With so much of what happens today being knee-jerk, defensive actions, it is that much more important to have your goals identified and clearly understand your starting point. Don't' make the same mistakes as the pack! Remember that the last action needed to complete a task is not the one to concentrate on. You must focus on the first one and realize that you'll separate yourself from the rest by the time your goal is reached.

And when you finally flip the switch, it'll be that much more illuminating!

Best practices: Professional Insight, Powerful Results

June 5, 2009 by Gary May 0
What Bankruptcy Means To You And Me…Just Between Car People

Chances are you'll wake up June 2 and head to work, just like on June 1, with most people doing the "same place, same thing" jig and trading their time for money. Sometime (and consistently) over the coming months, however, that will change for far too many people. What we do and what becomes of us will define what impact Chrysler's and General Motors' bankruptcies will ultimately have as well as what will be written.

What bankruptcy means is "a legally declared inability or impairment of ability of an individual or organization to pay its creditors". What it means to you and me depends on what starts on our June 2. It's no secret that a myriad of factors slayed the once-giants. Without getting into the gory details let's say simply that a 'change order' is due (while salespeople might not get that, production folks will!). If everyone continues to focus on the OEMs and not the retail and supplier channel, we'll likely have more 'little' bankruptcies to talk about, soon.

Chances are the real place of change (not discounting what needs to happen at car companies' headquarters) is at dealerships. No doubt the ads will tout change, listening to the public, making better/safer cars and the like. With all of that, people still buy cars from dealerships and not the factories. People buy cars from people. Those people need to be given reasons, explanations, respect, validation and more for ANY purchase they do now.

If you are in retail and are not willing to make difficult changes, you must ask yourself why you're in retail. Bankruptcies will add layers of scrutiny, questions, doubt, consumer pullback and more. You must be prepared to proactively address your market, your clients, your prospects, your business model and more.It might even have people believing they can practically steal your inventory for pennies on the dollar (and tell you they should be able to since the creditors will get about the same!).

There is no such thing as "business as usual". Even in great times, that type of mentality will get you cut at the knees. The market is always in flux, even throwing some curve balls just because the world gives back what you want.

You see bankruptcy is a part of business, unfortunately. It will mean exactly what you want it to mean for you, your staff, your customers and suppliers. If you continue to drive a value, offer benefits, show genuine interest and respect, do what you say you'll do (hello auto industry – wake up!!), give real reasons to return, guess what. People will really do business with you. They have with other businesses in the throws of bankruptcy.

What does bankruptcy mean? What do you want it to mean? Don't allow it to be a crutch, an excuse, a reason to wait, a sign of weakness, a road hazard or anything but a word. If anything, let the transparency be a fear and lethargy removal machine, an opportunity creator and really go out there to be IN business rather that OUT of business. The rest is up to you.

Best practices: Professional Insight, Powerful Results

Author's note: At no time over the past year has IM@CS changed its focus for dealerships: process, branding, communication and accountability. Customized solutions tailored for each client. Commitment to your business and our word. It's time for a partner like that…

June 1, 2009 by Gary May 0
When A Spade Is a Spade…And Knowledge Is Only Part Of The Game

Too often in sales we live off of past glory, or lack of. While past performance is not an indication of future results, it may just be what many people look for (look up the definitions of comfort and settle). So, salespeople, what are YOU doing to change your reality? Waiting for the next sucker?

Business has changed. Has your team changed with it? Take a look at your paycheck before you answer. Many people talk about change the way they will talk about the Laker's win tonight: as a passing interest. Change has to be constant, supported, visualized and cemented with goals. Don't find example with those businesses and individuals that aren't making it, challenge yourself and your organization by following only the ones that are.

Being someone that exercises change means that some times you're morph won't be noticed, or may be doubted and misunderstood. Confidence and influence are signs of change. Knowledge is the foundation, true. Only constant application, focus, modification and evaluation breed real change. Add regular accountability and you have nothing short of change.

What's the difference between the person who comes in on time and reads the brochures and the one who comes in a little earlier to walk the inventory? Or the sales pro that peppers conversation with technology buzz words versus the person that actually takes personal time to understand and use it?

Today a GSM related a great story to me about a salesperson that wrote postcards to clients every day. They were personalized, had value, reminded the owner of money-saving tips for their car and more. Is it any surprise that salesperson exceeded all expectations? Is it any surprise that the person built a large business? Is it any surprise that the person came from outside the auto industry?

Calling a spade a spade is only part of the game. Anyone who's listened to the news and repeated it to someone else know that. Knowing is only part of the game. What game do you want to be in? If you'e in sales, you need to excel. Who what you want, know how to get it, know when you want it by and don't accept anything less.

If you do those things, you don't have to be like the rest of the people. People will still question you…even question your past! Let them…you'll figure out what they're focused on. Stay focused on the prize! Nobody ever got far looking backwards…

Best practices: Professional Insight, Powerful Results

May 28, 2009 by Gary May 2
Week At IM@CS: Chats With The Industry

It's been a while, maybe to long! Considering what is happening in the market, it's time to get back on track with the folks that power the industry (yes, besides consultants!). This is another mix of providers touching different aspects of marketing and services that hopefully give you a leg up (if not a whole body length or two).

You've heard it here before and you'll likely continue to hear it: accountability. I've not yet met a vendor that tells you everything. Even the most up front company will tell you that they can/do something and then shuffle (some like mad) to get it done, even if they know how to do it. Not only do I expect this, the challenge of new things for clients makes some companies tick, while many just hide.

More than ever, dealerships want the services they pay for to get the
customer in so their sales staff can "close 'em". Just leaves you to
guess that many salespeople still believe that they shouldn't have to work for the close.

Mobile Web: Face it, you have to do it, it's absolutely here (if not passing the auto industry like a freight train), consumers want it and technology is changing faster than prices for NBA Finals tickets right now.

Advanced Mobile Solutions has a great platform they're rolling out for automotive. They know mobile, understand that life-on-the-go will extend beyond iPhones and Android Phones very soon, have the backbone to support it and want to push the ball forward. Many of the platforms I've seen for dealership inventory are lacking. This company has some great promise…oh, yes they can also do your mobile/text marketing so you can have one vendor doing both correctly http://www.advancedmobile.us

Widgets: Plenty of people still question the staying power and how steadfast of a marketing tool having some real estate of a consumer's desktop is, let alone if they'd download it. Outside of iGoogle and the 'techie' folks, many believe that this market is absolutely huge.

Already featured last December in a "Week At IM@CS", DealerBug needs to be checked out seriously (yes, by you!). This versatile tool allows great presence, branding, analytics and adaptability. It's not a question of when you need it, only how will you use it. They're delivering customized widgets for everything from pre-order vehicles (like Camaro), to car clubs (Mustang, Corvette, IS-F, EVO, etc) and developing inventory-based communication. Relevancy and timeliness has a new home on your customer's screen http://www.dealerbug.com

Live chat has developed into a tightly debated sector of consumer engagement on dealership website (and now even on videos and ads playing on non-dealership properties like YouTube). No matter what, dealerships that do it right…get the results.

ActivEngage happens to be where IM@CS believes the market is right now for car dealership live chat (ie real-time car sales folks). Every time there seems to be a wrinkle in the 'get-em-on-the-website' process, this company appears to have the iron for the job. I've been impressed this year in watching the value that they continue to provide http://www.activengage.com

Hopefully we'll keep this section of the blog a little more alive. Please give some feedback on any companies that you believe should be featured or if your experience with any ones that are featured has been less than desired (in all fairness).

Best Practices: Professional Insight, Powerful Results

May 10, 2009 by Gary May 0