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On Your Mark, Get Set, Think, Plan, Then Go! And Then Review.

You hear it all the time: "this isn't rocket science", "a monkey can do this" and "you're kidding me, that's easier than chewing gum".  Yet process seems to be as rare as a walk-up customer these days when it comes to the Internet side of the business. Not necessarily the sales process, although there are still many that struggle with that, but the part that deals with planning, accountability, results and reviewing.

Based on the non-scientific data at the recent round of automotive industry events, many are surprised that the majority of leads from dealer (and OEM) websites still are not responded to well, timely, with engagement or even at all.  Most people from the consulting and coaching side of the business are not surprised.  While there is definitely more attention and dollars flowing toward the online part of retail, more opportunities are slipping away as software and solutions are expected to run the business.

CRMs, as great as some are today, websites, as well as they take visitors 'through the process',even social media, as poorly as most dealerships handle it, are not stand-alone solutions that take your store from zero to hero.  Your customers won't rank your vendors, they'll rank you.

Planning, visualization, tracking and accountability (yes, to someone else that can call 'bullshit') are all tools of the sales trade.  Not printing your queue every day or starting off with a priority list when you first sit down?  You will not experience success at the level you should.  Fact is your database, no matter how clean, can't sell cars.  It may be a goldmine, but it's covered up until you have a work plan that actually takes prospects and changes them into completely satisfied clients.

While it may seem that the top producrs always have things 'go their way', it's due to working smart, prioritization (that doesn't mean you chose which customers to respond to effectively), visualizing positive results ahead of time (not just saying 'yup, this one's mine and they're taking chromes! and window etching') and being consistent in what you do.

The 'best' location, dynamic website with strong SEO, a bulletproof CRM, well-written templates, intriguing videos and a mission statement that is generations-old with a mediocre staff to back it up will be out-gunned by a competitor with less-than-perfect technology but an eager, process-oriented, customer-connecting, motivated and excited group of individuals working as a team.

Not to take anything away from some great companies in our business, including many that IM@CS recommends, but we must remember that we're in the people business and the badge on the sheet metal is not more important than the person buying it, nor is the voucher more more important than the techniques to achieve it.  Think about that the next time you skip asking the next guest how you can improve their experience , what would excceed their expectations or simply how they see things happening to earn their recommendation.  Yes, asking and truly listening are on the path to perfection!

Ready, shoot, aim does work…as long as you understand how to improve every time and have had the chance to review where you are at and why.  Go get 'em tiger!

Best Practices: Professional Insight, Powerful Results

November 12, 2009 by Gary May 0
Why Hit The Panic Button When You Can Hit The Simple Button?

Can't you just hear it in the background when you try to explain the shift to digital/social marketing from traditional 'push' marketing to a business like, oh let's say, a car dealer? A chorus fills your head from 1978: "Aaahh Freak out!  Le Freak, C'est Chic, Freak out!". Scary enough, our sales volumes are near 1978 levels and we continue to advertise as if it were.

From forums on DrivingSales to articles on Advertising Age to the offices of medium- to large-sized dealer groups, there is still a debate. That's' mind boggling! Consumers are gobbling up media at alarming rates. Their chosen media, not advertising. Do you still believe it was the advertisers that killed the newspapers? It's much easier to accept than understand that people don't need to read yesterday's news that they already got online or on their cell phone the day before.

So, people do what people do when they just don't understand: freak out, panic, sweat, worry, bury their heads. Come on, take out the Simple button (thanks for the idea Staples!) and start working and communicating WITH everyone. If you don't understand SEO, social media, microsites, true CRM, integration and the whole list of items that aren't a print, radio or TV ad then simply ask our community. Stop being in love with your advertisements and start being in love with your customers!

Changing the way we generate traffic is not easy, but it is incredibly simple. What is usually missing from any effective digital strategy at dealers is (1) process, (2) stick-to-it-iveness, (3) oversight, (4) knowledge, (5) willingness and (6) a burning desire to succeed. Why wait when you can dominate? The wait mentality really gets my goat. You might as well sell you business if you're going to wait.

Last week while speaking at a NADA 20 Group, one dealer had less than 20% of their marketing budget in digital/online. His explanation? "Hasn't worked!". His process? Buying the same way he buys weekend spot or full-page ads. Folks, online is not a "stick-your-toe-in-the-water-and-see-if-it-feels-good" proposition. All of the transparency and accountability is there, no other media measures like online!!

Whether it's wanting to "own" page one of Google by partnering with a strong SEO company (especially if your website company thinks SEO is simply a typo of CEO), to sharing great content on Facebook or Twitter, effectively engaging service customers with a tool like Driverside, or doing effective CRM with a company like DealerSocket or VINSolutions, it's the same: if you don't know, ask.

If you don't have the best brand possible reflected online, over 60 percent open rates for your emails, positive onliine reputation, inventory that can be indexed by the search engines (you don't if it's framed-in on your website) and a community that communicates with you online, it's time to get your business in order before spending thousands and thousands of dollars every month because someone's convinced you that they can sell more cars for you (if they're that strong, hire them and get rid of your deadwood).

Polish up your Simple button and use it because you should be operating a profitable business and not a charity and blind contribution machine. In other words, make your business right before you continue to help make others right (and more profitable that yours)…

Best practices: Professional Insight, Powerful Results

October 27, 2009 by Gary May 0
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
What Will You Focus On Tuesday After Clunkers Shuts Down? Start Inviting Your Customers In Again…

Imagine, if you can, that business becomes painfully slow. Sales, traffic, even service, is down anywhere from a little bit to 'oh-my-gosh-how-can-we-survive?' slow.  Then try really hard to imagine some gift-from-above program from an unannounced source drives a bunch of customers to your store for a few weeks.  Then…the program ends abruptly.  At the same time, consider that you expected the program to end at any time so you are not completely surprised by the news that the masked crusader and his money left town.

What will you do the next business day? How prepared you are, how well you communicate with prospects and customers alike, how creative you are and where you know your business comes from will dictate if Tuesday is satisfactorily busy or if it is just like another day before all the loads of Monopoly money arrived.

Most people we've heard from consider C.A.R.S. a blessing with all of the traffic and sales it generated, as well as a genuine pain in the butt.  Of course!  If you had the program to do for yourself, would you have done it any differently?  You absolutely would have.  So why are you going to be twiddling your thumbs come Tuesday?  What program you run is up to YOU, every day.

Now, that's not to say that you're going to be able to come up with $4,500 of "it'll get here someday" funds on nearly half of the deals you do next week or any other day.  However, it's entirely up to you how to drive people off of their scared little (and big) duffs and into your business.

It's not up to the factory, it's not up to the million-dollar advertisements, it's not up to the region or your 20-group and gosh-forbid it's definitely not up to the government.  Don't you want them out of your business…not in it?  What happens in your business, positive or negative, is up to you, your brand, your staff, your effort and your planning.

So when the here today-gone tomorrow spigot of funds is finally turned off by someone making a lot more than you with nicer benefits than you have and a pension you can't even dream about, get back into the habit of making your business happen.  Less business?  Get a bigger piece of a smaller pie!

Can't figure out how to make it work?  Ask someone for help or at least tell the receptionist that you're not "away from your desk all day" and that you'll start taking meetings again.  Business doesn't happen from thin air, it takes a lot of work and some good consistency.  And sometimes it takes outside ideas folks, as painful as that might sound to some 20-year plus veterans.

Besides, whether you call it natural selection, survival of the fittest or one of a myriad of other expressions that refer to 'business better then usual', it is always best when you're the master of your domain rather than waiting for the next shot in the arm.

Best practices: Professional Insight, Powerful Results

August 20, 2009 by Gary May 1
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
“That’s What She Said!”…and other lies since you’re just not listening

You were the class clown, your friends' center of attention, captain of the sport team, oldest in your family, standout of sorts in various jobs and now you lead the sales ranks…and you're flat out lucky! Considering the last time you listened actively was to get an extra scoop of ice cream in eighth grade, it is hard to understand what, outside of ambition, fortune and favor, has you topping the charts. As a passive listener, you can remember that your first customer ever made a nice comment about your tie…

OK, that was a little over the top, but hopefully the message hit home.  How do you know what he said, she said, they said, if you're not listening!?!? Consider the amount of leads that are not sufficiently handled, floor ups that aren't greeted correctly (let alone qualified), prospects that aren't followed up with in a timely, contextually relevant way (sending a pre-populated eNewsletter DOESN'T qualify) and you can start to understand how broken things are for consumers.

Most dealers pay for a CRM, typically in addition to their (substandard but used for 'oversight') factory lead management system, and don't even use it. Store by store, a visit can reveal that most of the notes in a customer's file (if there are any) are easily described as archaic. Ask a salesperson to explain the notes, you'll typically hear "I don't have time to put in more detail" and "I've spoken with them so I'll know what's going on when they come in to buy the dang car". You might even hear "it's my customer, not the store's" from a more honest staffer.

Task the same salesperson with fundamental questions about the customer, family, kids, how long they've researched/shopped for the car they're buying,what their third color choice or second option package preference is and you might get a more educated look from a deer looking at the front of your car in the middle of North Dakota on a desolate highway that you're driving 95 miles per hour on at 2:38 in the morning. You know that look…

"What she said" is so dang darn important that, gosh forbid the person actually felt you cared about them, they might recommend more customers for you in the next three months than you had from all your past customers in the last 12 months. People, it starts with really listening. No, REALLY listening. Look at it this way: you were so lucky to have it the way you do. Two ears, one mouth. Like mom said, use them in the same ratio.

Try listening for a week. You'll get some interesting changes in your business., Do it for a month, you'll actually create a trend. Make it happen for six months and you'll likely never be held back like you were in the past. Take notes. Document how your business has shown you new opportunities. That might happen when you listen to your customer talk about something that they're passionate about. You'll actually pick up on it, share it with your boss before they leave in their new car…next thing you know your dealership is involved with an amazing event in your market that helps sell another 25 cars. All because you listened.

Listen, confirm, validate, document, review, share, store, leverage…and then listen again. It's the greatest tool you'll ever have, besides that whosimawhatsie you have our your desk that you've not taken the time to use once since the seminar you received it at 11 years ago!

Best Practices: Professional Insight, Powerful Results

July 22, 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
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