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Reputation Management: The Good, The Bad And The Ugly

This post should really be titled: Reputation Management: Can't I Just Ignore It? It's amazing that another year, and some great social media presentations, has passed with dealers still not understanding that they live and die by their reputation. They know it, they don't understand it. Or else everyone would be tackling their Achilles' heel.

It wasn't too long ago that dealers knew their customers by name, would give up their own car if a client's died on the way home, attended the events they sponsored and generally made sure their name (and brand) was sterling. Then came the 'glut years' of the mid-80s to about two years ago. Dealers practically printed money for 20 years or so and then the dance ended.

Volume, massive profits, huge staffs and even traffic have mostly gone in the same direction as reputation: downhill. With the exception of some forward-thinking and consumer-focused retailers, it seems apparent that our industry is completely fine with negative reviews on top of the other diminishing returns already listed. If there is one thing you do around social media, please let it be reputation management.

You may not be ready to tweet, post, share this, stumble upon anything, digg or have a bunch of fans, but chances are you are concerned about something other than how many other dealers sold cars out of your PMA. About 3/4 of the public will now now shop you based on other consumer write ups!!!!!! That should be enough to make any business owner or manager go online
and start participating in something other than fantasy football
leagues (not saying that anything is wrong with that!).

Maybe you don't realize how simple (read: it may not be easy but it's painfully simple) it is to participate, get everyone on board at your store and improve your results, or how quickly fewer than a handful of poor reviews can absolutely kill your business. You do have a choice no matter which way you go.

If you haven't been to Google, DealerRater or Yelp lately, it's time you did. Most of the traffic to your online store has been or will be viewing the comments others have made about you. And do it now. I've been talking with a large dealer in Los Angeles for four months who still hasn't decided to invest time, resources or effort in one of the greatest opportunities for more traffic, greater customer confidence, referrals (remember those????) and just plain common sense. I don't know what's stopping them and I don't know what's stopping you.

Just remember that there are three things that never work in the car business: hear no evil, see no evil, speak no evil. It's time you got up to speed on your online reputation and got a little more social. Maybe then we can get back to minting money again…

Best practices: Professional Insight, Power Results

October 18, 2009 by Gary May 0
How And When Do You Generate Your Traffic? Your Own Program Or Someone Else’s This-For-That?

Whether or not the money lasts in the government's C.A.R.S./Cash For Clunkers program, one thing is clear: automotive retail still waits for someone or something outside of the dealer to drive the traffic. With few (and great) exceptions, people started hitting lots hard over the weekend.The question remains: what happens that's entirely up to you before and after programs?

A couple of OEMs started a little early by creating buzz around doubling or even advancing dealers money. Dealers even sent out email and direct marketing (along with radio and newspaper….aaaaarrggggh!) to promote the fact that they'd have the CARS program at their dealership! Folks, that's just not enough. Remember that people what to know what's in it for them! If they can get $3,500 or $4,500 (or more) for their car ANYWHERE, why are you yelling that you simply have the program? Is your banner bigger? Big (something) deal!

Why not detail how you understand the program's details, that you have a special team at the dealership to promptly handle customers, that you have a 'Clunkiest of Clunkers' competition for a prize or that your staff's outfits are "older than your trade!' and have them come in powder blue ruffled suits? Now, I'm not saying that you need to look like your favorite scene for The Wedding Singer or a bit part in one of my favorite industry guy's videos…what I am saying is that you have to get your head out of the "same place, same thing" mentality and start thinking about how YOU drive traffic.

No consumer typically wakes up in the morning and says "I've got to make it by some dealerships today and spend some time at each one!". That should not be news to anyone. What differentiates you (or doesn't) is the special events, programs and 'why-to-buy-here' calls to action that invite people in. Why continue to fight over the same piece of pie when you can make yours bigger? And with the current economic issues, simply take a bigger piece of a smaller pie! But your way of doing business can't stay in "wait and see", "hold on for 90 more days", "not going to do anything just now" or "watching how effective (fill in the blank)'s promotion goes before we do anything" mode.

Look at your numbers, especially your regional/area performance. Losing sales in your PMA? Why? Asked your customers why lately? How many times have you blind shopped the competition? Did you optimize your website in the last 30 days (or simply put up a C.A.R.S page and/or compete for the same keywords)?

To expect business you need to plan for business:

  • Listen to everyone (yes, your staff is part of everyone)
  • Understand trends and performance
  • Track and adjust in real time
  • Communicate and set expectations
  • Brand, brand, brand, brand, brand, brand, brand

And remember, you can't live on someone else's brand (including the government's). It is also important to be real. If you don't understand something, say so! Ask questions or your vendors, partners, consultants and industry resources (as long as you are actually using them). If they can't do something, ask them to it and if they can't/won't: drop 'em like they're hot.

See the traffic on the highway? They are all going somewhere. They either have to or want to go where they're going. You might just end up being more people's destination if you play your cards right, plan to be successful and don't reply on ANYTHING outside your place of business to bring in the business.

Be a 'traffic-generating' leader, not a 'take what's left' follower…

Best Practices: Professional Insight, Powerful Results

July 31, 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
A Day With The Marketers…Automotive News Style

Today was a day filled with marketing statistics, reporting, ideas, videos, commercials, banter, conjecture and more. Ultimately what Automotive News set out to achieve again this year was, I my opinion, point the industry/crowd/listeners to what is and will be happening in the landscape of media and marketing. Did it happen?

Joel Ewanick from Hyundai detailed a number of aspects of the Hyundai Assurance program that has gained the brand major accolades in addition to being mimicked by over 100 companies. His retelling of the time line (just over 30 days) that they produced the campaign in along with the supporting aspects of such a program was impressive. The presentation lacked a 'forward' element, which I'm sure HMA already has done, but that's not likely what he was asked to speak about.

Scion's Jack Hollis struck what I thought was the closest blow to the nail from an engagement standpoint regarding experiential marketing, lifestyle and connection with customers. "We want community" is as close to where a marketer needs to be today! Great visuals were backed by his actual participation in events (and no, not just in a room to watch usability studies through a two-way mirror).

Judy Wheeler form Chrysler (replacement for the absent Steven Landry) had a good presentation that understandably had no major 'forward' view. After having their marketing budget slashed by 50% last week by the White House and Auto Task Force, there was not much to address besides the 'impending' marriage with Fiat. She did bring some ads that are in the hopper which centered around what Chrysler and Jeep brand "build".

John Maloney of Volvo hit on some solid points around their shift from the traditional 'national' unveiling and detailed a number of great points about the XC60's recent 'new' launch campaign. It sounds like Volvo will use the money-saving, impact increasing method again in the near future. He also focused on the brand's image with the new 'City Safety' accident avoidance system.

John Mendel from Honda spoke the words that you rarely hear today: brand, value, consistency. He repeated that call time and again throughout his session which included a throw-back to a nearly 50-year-old Honda motorcycle commercial! Flipping from decade to decade in content and conversation, Mr. Mendel was able to address the solid focus at Honda (along with their agency RPA) that should enable them to deliver more 'safe' marketing. Hopefully they do get a little more edgy than their Facebook and Twitter involvement…

And then there was Mike Sullivan, a.k.a. "L.A. Car Guy", bringing color and comedy to the stage for a retailer's perspective. He got into hard hitting numbers, results, marketing mix, Internet effect and other, more typical in better financial times, tangibles like charity, community involvement and other brand building mantras. Mr. Sullivan and his staff are more than dedicated to their marketing goals and seem poised to achieve success through their different initiatives. They still may have some room to grow on integrated media and retention, but they are clearly looking for more ways to deliver on their Interactive brand.

The closing panel with all the speakers answering questions got a little better, especially around the newspaper/print aspect. While Chrysler's recent direction was more heavily tilted toward print, the overwhelming opinion was a shift away from the paper and to the web. By the same token, these marketers have not hit pay dirt as many marketing efforts still leave behind the largest potential as well as target: the consumer. Content consumption has changed and even content creation has had a noticeable shift. Out industry still lacks the 'teeth' it needs, especially at retail, to really engage the consumer to become part of their lives, especially away from their vehicles.

Overall, it was a great time around well over a thousand ad agency, automotive marketing, manufacturers and service provider folks. Wonder what it'll be like next year…

Best Practices: Professional Insight, Powerful Results

May 20, 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
Waiting For The Opportunity That Already Passed? Try To Process That!

No knock to hear. No call to answer. No door to open. No question to respond to. The customer was never yours. It happens more than not and it's aggravating as hell to deal with…if you do at all. Today you have two choices:

1. Wait for the next 'up' and work in the same manner as before
2. Create, extend and perpetuate a brand and destination where people want to interact with you

The result will be massively different but the actions required are not so disparate. What are you providing clients with that they'll remember you by? Are you qualifying and inviting before you try to sell (yes, that includes the appointment). It's been estimated over the past few years that nearly three quarters of vehicle buyers online have ended up buying from a store other than the first contacted, sometimes the third or fourth.

No matter what it is you actually do, stay relevant. Which models are people looking at most on your site? Which specials have the most hits? Which emails you send aren't getting opened? When is the last time you tailored your home page to traffic trends?' What are you doing to create opportunities?

IM@CS spends a lot of time on process and branding. Without process, the best online marketing, CRM, emails, websites and more will not deliver the results you want. By the same token, all process and lousy brand, marketing and reach won't win you fans either.

Some day soon, you'll have to get out of comfortable and get with now. Leave what worked behind and start creating what's next. Use what happened yesterday to do it better tomorrow. You can't process (or make a process for) something that is not identified, understood and actionable. Remember the definition of insanity: doing the same things over and over again and expecting a different result.

What is it going to take to change perspectives from loss to gain? From hiding to opportunity? And from losing to winning? Just turning off the television won't do it. Those who are doing everything possible to not only brand and promote but connect with consumers will win, period.  It's a mindset and will take work.

Make sure the next chance is the one that didn't get away. People are begging for reasons to trust rather than fear. Guess what, you only have to worry about your customers! I'm not talking about the fact that Edmunds, KBB, Cars and Trader traffic is up 20%+. Do what it takes to attract every opportunity and capitalize on it "in your neck of the woods" as Al Rocker would say.

Stop waiting. Start acting. Start creating. Start adjusting, Start relating, Start understanding. Start executing. Start right now. I can guarantee you you'll get more opportunities. Remember that it's a numbers game and you have to start to win.

Best practices: Professional Insight, Powerful Results

February 5, 2009 by Gary May 0
Branding 101?…Not Until You Understand And Have A Brand

What is a brand? If reputation is a brand, a visit to a dealer ranks below one to the dentist. If awareness is a brand, most portals slaughter dealers in search where roughly 90% of automotive shopping takes place. If trust is a brand…well let's not go there. What is your brand and how do you build a brand today?

Recently my most engaged response to someone describing a brand was after spending some time on Dave Armano's blog http://darmano.typepad.com/ (click on the video on the right side about personal branding). You see, 'brand' has nothing do to with your inventory, your facility or your finely made espresso. Brand has everything do to with the experience your provide, your customers' beliefs in you, your handshake, your smiling staff and your ability to invite people back like they're coming some place special.

At the end of the day, your brand is all you have. Yes folks, 'what have you done for me lately' is in lockstep with 'will I ever return here'. While there are some great companies out there that will take your money and promote you online, offline, inline and out of line…what in the heck will they promote?

Sitting down with dealer principals and general managers, their responses to identifying their own brands are as canned as the marketing emails that every dealer in the same DMA sends out (yes, I've mentioned that lately and will again until dealers stop doing it). Everyone knows that a Lexus dealer will treat you like a guest in their own home, it's part of the covenant. Frankly Scarlet, we want to give a damn about something else.

With dealers (and other businesses) unfortunately in a position to provide much less to their communities as of late, the real brand and equity test is soon to come. If you do one thing this year well, build a brand. While there is no guarantee of eminent success, chances are your positive results will follow. Nobody asks for facial tissue, they ask for Kleenex. Nobody makes a photocopy, they make a Xerox. Unless you're from the Midwest, you ask for a Coke (but asking for a 'pop' just has a certain ring to it!) and not a soda.

Do everything you can to become a brand and more. There are those of you that do, don't get this message wrong. It's just that for most of the car dealers out there, your brand ends where the driveway meets the street. There is more you can and must do.

Start with your entire staff. Get them together. Ask what they believe your brand is. If the meeting lacks consensus, you have your work cut out for you. If you have one, get your customers to help. Want to get really 'techno-dealer'? Set up Facebook, Twitter and other networks that will work for you. Get reciprocal links from local businesses that are your clients and partners. Get influential people in your local area into your store, take care of them and they'll blog or contribute to forums about your business!

OK, enough for today. But Just Do It…and do it now…(you recognize that brand, don't you?)

Best practices: Professional Insight, Powerful Results

January 11, 2009 by Gary May 0
One Thing At A Time Online…All At Once

When it comes to the 'new age' of Internet existence for your business, it is important that you appear as good as possible when people find you online. When it comes to reputation, shoppers want to know what your customers say rather than what you say. They want to have transparency in inventory, see the actual cars and features. Online visitors want to know what you'll do for them, to understand how you work, dealership history, who makes up the team, what specials they can get and so much more.

So hop to it…get your blog entries published, inventory fixed, Twitter your specials, text your new inventory, moderate the discussion for your local enthusiast group's site, shoot videos of your CPO vehicles and stream them on your site and push them onto YouTube, get all of your clients to write online testimonials and refresh your website's content monthly and SEO every quarter (if not monthly). Done! Oops…not yet…sell 50 cars a month via the web while you're at it.

Stop the press! We've only be gathering email addresses regularly for a year? We haven't gotten our customers' cell phone numbers and carriers to message them? Nobody has been putting the most valuable client information in the CRM? How do 50% of our leads fall through the cracks, how do you truly track them? And why does the factory blind shop us 10 times a month? Hold on…how do you ask a customer to write an online recommendation? Where do I even send them?

OK, that may be a little tongue and cheek but it's not too far off for many dealers today. So how do you start from zero and get up to 75 immediately on the information superhighway? The best recommendation I can provide here is…act like a customer! What do your customers talk about more and ask from you daily? Consider that one of, if not the greatest influence on consumers is search.

Fact is that you have no choice but to trust more people with your dealership than ever before: vendors, customers and employees. Things are changing at breakneck speed with technology, social media and engagement. One bad customer experience written online may not ruin you overnight but it will affect people's opinion and become pervasive if not offset by more positive assertions.

Make it a goal in January to spread the online responsibilities among all of your front-end staff. Get your people comfortable with your online existence and build your brand, reach and reputation. Become a truly trusted brand with the best advocates out there. Your option is having someone else beat you to it.

It starts with one thing at a time, just do it all at once.

Best practices: Professional Insight, Powerful Results

January 8, 2009 by Gary May 0
Don’t Worry About 2009…Unless You Have To

If there has ever been a time to realize the benefits of creating and executing on new strategies, it is the coming year. For those who went digital, got behind online completely, build their brand and reputation where the public actually spends their time, engaged their clientele via effective software and database activities, you will already have a great look into how your 2009 will sort out. Keep doing what you're doing and don't worry.

Now, if you haven't spent time assessing, looking at, determining and then executing your Interactive strategy, you have one decision with two options. And if you do opt for the 'stay in business' route, be prepared for a significant amount of technology this year, even simply from an integration standpoint. Things on the software, video, mobile and other aspects of marketing are going to accelerate.

Over the weekend, a number of conversations I was around included statements about newspapers, relevancy and readership, none of them positive. Separately, two people will be buying vehicles by March, their impressions already biased by sites they like. Others talked about past experiences being indicative of the future. Many people talked about making brand decisions based on the automotive industry coverage in the media, so I straightened those out at least. But overwhelmingly, people are using the web and not thinking about stepping foot in a dealership that is not in their specific scope of consideration.

Everything points to us having to do a better job attracting and connecting to our customer base online. It's winter, when is the last time you've had a banner ad on the local online traffic reports or weather updates on your local network news' website? Do you have links from local businesses' websites that have purchased vehicles from you? Even though we've focused a lot of attention on this lately: how many customers are providing online testimonials for you? (read: not many! Need ideas to get your customers to do that? here's one: ask them).

Your 2009 results will be based on what you are doing today and have been doing for the past few months. Those leads and customers are going to share their experience with others. The brand impressions people received months ago will undoubtedly affect who walks in your door tomorrow. There is no denying that your 2009 will be build on your ability to create a more significant presence in the areas where people consume media and data. Who's blogging, commenting and Twittering for you?

Challenge yourself to layout a plan for the first quarter that is web-based, create an environment of support throughout your entire store and get everyone to assist in deploying your new brand strategy. Get creative, become savvier, see yourself doing things that are not comfortable but will deliver results and ultimately take back ownership of your future.

There are a number of events that are dedicated to the Internet side of the business at the beginning of 2009. Commit to making those a part of your strategy and don't back out. Go the extra mile to figure out what you are going to do instead of being a victim of current circumstances.

Leave the worrying to others that don't take the time to invest in their future. Be confident in your direction and commitments. Spend your time and energy on things that deliver results rather than doubt. Thank you for reading this, now do something else online to further your business!

Best practices: Professional Insight, Powerful Results

December 22, 2008 by Gary May 0