Tag Archives

Posts with car tag.
Crunch Time: Are Your Vendors out To Lunch? Or Are You?

It's very telling, especially today, when a supplier doesn't deliver.
Over-commit, under-deliver. While there is no such thing as 100%
delivery, 100% of the time when there are variables like creative,
interpretation, third parties and even technology changing at a
breakneck, daily pace. However the fundamentals should never change:
communication, expectation, examination and verification.

Being
around the automotive online space for over 10 years, it has been
common to be around or even directly involved with what you might call
"sales coups without production capabilities" or "sell it and then we'll
build it". Most of the time letting clients know you're building
something as they buy it is completely fine. Selling something as
complete or pitching services you provide when you really don't is
something else.

Over the past few years, it's been website and SEO services. Lately it's social media and reputation management. Two sayings to remember: if it sounds too good to be true, it likely is; stupid is as stupid does. In all fairness, the impetus is always on the buyer. While that's not completely fair, everything deserves a second look or opinion. For one example, recently we've been in meetings hearing about services for a few hundred dollars a month promising positive reviews on hundreds of sites.

Even without prejudice, it is difficult to understand the reach, impact or importance of a positive dealership review on some obscure website. About florists. Being read eight states away from you. By someone who has no interest in buying a car.

Numbers are great. Especially transparent ones via Google Analytics or something similar. It's also great to have a string following in the social online around your business. Having 40,000 on Twitter and 10,000 fans on Facebook, most of whom never have or never will buy from you, refer people to you or possibly even realize what your business does. That's irrelevant. People moving into your PMA that own a car from your franchise? Great. Likely a potential customer. Someone on your social network that lives 8,459 miles away from you because you're giving away something for free? Worthless.

What's of less value than that? The people and companies that are selling the services because you don't have the time to know and understand better, let alone put resources against it. And the fact that you can do it for $300 less a month than another company that can do it for you? And you call yourself a business person? Please. The other day at an OEM meeting, we heard about dealers paying $2,000 dollars a month for social media services. There are real companies doing a better job for half the price. Dealers paying $8,000 a month for that?!?!?! Let's not even go there.

This is not about the struggles with real ROI in the digital space. Or people not understanding services. It's not even about pushing companies out of the industry that will intentionally pull the wool over dealers' eyes (that would take years anyway). It is about taking charge of what you want to do in your business, having goals, comparing apples to apples and making sense out of the insane amount of pitches car dealers face.

Many times it's your vendors that are out to lunch. Sometimes, it's absolutely you. Question reps and consultants. Question proposals and marketing materials. Question your staff on what to do. Heaven forbid, question your customers and find out what they want and expect first. And stop buying for the sake of it, because someone in your 20 group did or because a golf buddy (that operates their store completely different than you do) told you they found the magic bullet.

Get back to business. It's crunch time…

Best Practices: Professional Insight, Powerful Results

September 4, 2010 by Gary May 0
The Shortest Distance Between Two Lines Is A Straight Point

Another day has gone by in our industry and where are we? Did we break a record? Did we start a trend? Did we figure something out? Chances are we're in the same place we were 48 hours ago. While we'll leave the guessing how much other businesses out there have changed to the "experts" (yeah, we've got more of those today than we had yesterday!) but know for the most part we didn't blaze any new paths.

Another month has gone by and another interesting declination from a dealer that needs help (no, not the same one as one of our last posts):

"It's (so and so) from (such and such), is this a good time for you?"

"Uh, no. I'm working on ads for this weekend and Ive got a lot of other stuff to get done. You're either buying something from me or trying to sell me something. If you're trying to sell me something, it's the wrong time."

"That's completely understood."

"You'll have to call me back."

"Considering how busy you are, will you take my name and number?"

"No"

"OK, good bye"

While the distance continues to grow between the dealers that are moving forward and those that aren't grows, it's important to remind ourselves of where we're heading. You know, the road map. Goals set at the beginning of the year rather than two weeks ago. We all have them memorized now:

  • Regular review of website performance, stats, leads, etc
  • Weekly lead status and management
  • Complete (aka 100%) CRM use/integration for all departments
  • Updating of templates and scripts for all customer communication
  • Social media game plan
  • Reputation management
  • Vendor accountability
  • Read and participate more at events and online communities
  • Getting outside help occasionally because you can't staff for everything

It's not easy to look at all of the things thought or talked about considering everything that has to be done just to sell and service cars. Right?!?! Let alone add them to the heaping pile of responsibility that everyone has in automotive retail. Right?!?! Besides, it's hard selling cars today. Right?!?!

Wrong!!!! As Andy Dufresne put so well in Shawshank Redemption: Get busy living or get busy dying. Sure, you can bury your head deeper in the sand St. Diggerstein, or you can get real and get in business.

The shortest distance between two lines is a straight point. In other words one line is where you're at, the other is where you want to be. And the point is…go get after it. Quit stalling!! Besides, you said you're not going to fall for the banana-in-the-tailpipe.

Best Practices: Professional Insight, Powerful Results

August 19, 2010 by Gary May 0
Floor Traffic Down? Invite Them In! (Including 5 Ideas That Work If You Do)

Reading a number of great posts recently (while trying to ignore the blatant self-promotion via a popularity contest glorified by a number of industry members last week), all focused on getting dealers to make the shift to digital or social media, it hit me once again what we're all trying to do: get people in the door.

While a number of dealers (maybe 5% in the country) are seeing growth many are seeing flat or declining numbers. Others are experiencing unit lifts while dealing with large drop in gross or back end. And everyone is dealing with selling fewer vehicles in the past 18 months than in the previous 4-6 years.

So in this online world, what aside from actually selling a vehicle to a customer or servicing their car drives traffic? One thing that can be looked at, especially in a world of smaller budgets, staffs and sales is events. With rare exception over the past two years, the factories (and therefore the dealers) have spent less and less on driving valuable traffic via new-owner events, clinics, ride-and-drives, sponsorships, meet-and-greets and the like. While the quantity of tire kickers may be down, real purchase intention is down significantly less (we'll leave the statistics and "pent up demand" gibberish talk to others).

Fewer and fewer dealers are doing what it takes to being people in: WIIFM. Yes, the most popular radio station in the world. What's In It For Me! More and more consumers are out there, looking for answers on how to program their seat memory, sync their bluetooth, update their navigation system, find out the difference in maintaining their car at the dealership versus aftermarket besides price and a whole lot more. So…they're left with going to a discussion group/blog/forum/portal, relying on word of mouth or not knowing at all. And you believe you 'had them at hello' when you sold the car.

So no new owner clinics. No barbecues. No comparison drives. No meet the staff days. No fundraisers (let alone getting a link from the event website to your website with all of the traffic they're receiving. What's that? What's a link? What does that do?). Boy, that will work! Then tell yourself that the drop in floor traffic is fine since 70-90% of the same-brand stores in your PMA are also down rather than kicking ass. Forget about building a brand, or answering the questions that many customers won't ask you over the phone, or stopping that brand new owner from driving into (fill-in-the-blank)-Lube, let alone even retaining the customers you have and that WANT to come back for a good reason or two.

No. Maybe this whole thing is wrong. The factory is supposed to do and promote events. The factory is supposed to drive floor traffic. The factory is supposed to give you all of the handraisers in the area. The factory has to do all of the advertising so you can copy the ad and put it on your (mediocre) website. The factory is supposed to give you all of the pitter-patter of footsteps so you can just kick back, put your feet up (or in the golf cart), make money and retire in 20 years.

DING, DING, DING. Wake Up!!! (that was your floor traffic meter just hitting zero)

Best Practices: Professional Insight, Powerful Results

August 2, 2010 by Gary May 1
Death By Response: You Lost Me At Hello!

Let's take a moment to ignore the store front, avoid the showroom,
shed technology and just get back to being human. Do you know how to
talk and carry a conversation? Well, if you judge that by much of the
email and phone communication going on at automotive retail, you'd be
left with more questions than answers.

Face it, we have a lot
of room to grow when it comes to 'inviting' the public to car
dealerships. Oh sure, they'll continue to come when they have to buy.
They will find somewhere and someone to buy from. But the fact that most
of you had an easier time asking your first date out, shows we still
have issues when it comes to how to engage a person that wants to
buy!

Many people shrug off their verbal and written skills
when they can deliver a fair amount of cars each month. When lean times
come, they'll blame everything but the water cooler (maybe some will
actually blame the Sparkletts man) rather than look at their own
communication.

So here's a 4-step recovery program that should
help you (who needs 12 steps anyway?):

1. Know what you
want to say before you touch the phone or start typing

At least
with an email you can proof it before sending but most salespeople
aren't in the habit of doing that. The biggest hint that a salesperson
isn't ready for the call? Uh, um, er, ah, eh, well, gee, ayyyyyyye (the
long 'I' as they reach for something to say) and other stalling tactics
tell the customer on the other end of the phone clearly that there might
be a more professional person in the building.

2. It's about the
customer, silly

I did this. I did that. I'll talk with my
manager, I usually tell people that ask me that. I, I, I, I, I. Stop it!
It's about them, always has been, always will be. Go to a nice
restaurant for dinner, the waiter or waitress doesn't say "I have some
specials tonight"…do they?!?!?! No!! What you'll usually hear is
something like "would you like to hear what your choices are for
specials tonight?" or "Would you like to start with a drink or
appetizer?". Go to fast food and they say "can I take your order?". Are
you selling a hamburger value meal or a choice steak? (or Gorgonzola
salad for our vegetarian readers!). Change your focus to the customer
and you'll be amazed at how different your interaction goes.

3.
Questions are like water. Go without and you die.

You've get
them qualified. You walk them. You drive them. You sit them down. You
pencil them. You close them. If you stop asking questions, you likely
lose somewhere along the process. When the questions end, the
conversation ends. Sure, they can pick it up again. Our job? Keep them
talking. About the car, themselves, their family, their likes, anything.
Stop asking, you're on your own because you've lost control. Questions
(as well as answering theirs) are the lifeline of communication along
with emotion and everything else the expensive consultants and sales
coaches tell you is important (that you already knew).

4.
Validation and excitement. Oh, and courtesy!

Who can be excited
about calling you back if your message sounds like it was made in a
monotone machine? Ten messages down and ready for call 11? Get pumped up
again! Nobody wants to call a boring sales person back about what is
exciting for then. And how about validation? Can you relate to your
customers, even the ones with challenged credit? Don't kid yourself
because people can see through fake. And remember, especially in today's
social age (sorry, had to go there for a moment), their experience with
the 'less than exciting, not quite interested in me buying a car from
him/her' now translates to dozens, if not hundreds or thousands, more
people who may not shop at your store now.

And with regard to
courtesy, if you're not asking if the person you are calling is
available for you in a way that doesn't completely let them off the hook
from talking with you (because they must, must, must buy the perfect
car for them from you), you don't deserve to be selling cars. Don't ask,
don't tell. If you don't ask if they're available, they'll likely never
tell you they're buying from you.

In today's age with
complete transparency on the web, don't kid yourself into doing a less
than a complete, exciting job with your customers will work. We're not
saying to be something your not, but if you're in automotive sales and
expect to do well, just do it. It may not be fair that a book is still
judged by its cover but don't treat anyone trying to do business with
your store any differently than what you expect when you go into someone
else's.

Welcome back to the business about people. You can now
return to your technology-laden existence.

Best Practices:
Professional Insight, Powerful Results

June 17, 2010 by Gary May 2
Vendoritis Or Dealeritis: Part Deux

After the recent seminars and events in the Los Angeles area it seems more clear than ever: dealers want to do more, are mostly eager to address new opportunities (or old ones sold as new), are baffled by new technology including social media, are looking at the factories for direction and don't seem to have the right questions to ask the not-so-prepared, over-eager vendors.

In a number of panels that spanned these events, the tough questions either weren't asked or answered. This is not a knock on either the speakers or the crowds, most very qualified to talk about new media and marketing. It's just a fact. One panel on social media had some great experts. On data. Not one person doing it for an OEM or a dealer (or, judged from afar, likely even doing it themselves daily). Another panel had some great participants from very disparate areas of automotive talking about some specific activities they're doing. Truly great examples, results and actions were shared. The missing component was how the average dealer, yes including those in attendance, can implement a plan.

What is happening, as our world moves forward at a speed more reminiscent of the amazing La Mans cars running around Circuit De La Sarthe as this is being written, might be another dose of "ignorance is bliss". And that doesn't help anyone. Dealers asking their factories and reps for help (as was overheard quite frequently lately) are getting shrugged shoulders, "we're working on that right now" or "hire the right company or employee to handle that" responses. In other words, dealers are on their own.

So the dealers' sources for information are limited to their 20 group, industry events and magazines, word of mouth and the old fashion pitch by the vendor. Most dealership decision makers aren't reading the blogs and forums because if they were, they'd be asking questions and participating (yes, we regularly scan for them). So, as with the first "Vendoritis Or Dealeritis" post a while back, the question needs to asked again: how do dealers move forward?

Our industry is always in flux. Lately there has been a more interesting bend, however. Dealers and vendors, for example, fixated solely on SEO for the past year plus are now looking at poor conversion stats to fix.There will be the same issues with social media in a year: those that chose to hire crap automation and get to 5,000 Facebook fans and 10,000 Twitter followers will discover that it's not done anything for brand or business building since over 1/2 of their social media throng is over 500 miles away if not in another country.

When you take your eyes off the ball, you can't catch it. You likely won't even see it. Many today say "bullshit, I can do it all". Well, good luck to you. The best of the Fortune 100 acknowledge that they can't. Maybe automotive retailers can do it all: sell the cars they need to monthly and still talk up a great story online. Just like the vendors that do a mediocre job for you somewhere else in your store and tell you that they can add something to their plate. Yeah, and there's a bridge in the desert that I need to show you…

Best Practices: Professional Insight, Powerful Results

June 12, 2010 by Gary May 1
Focus Daniel-san, Focus!

Focus. We all need it. Sometimes we loose it. Hopefully we get it back. Focus is what, along with goals and direction, on the path to success. Simply put we're in the business of selling products and services, backing them up, and maintaining relationships with those that bought the products or services.

Broken focus is what allows us to view the products and services that we buy as those that will sell what our customers will buy. Yup…long sentence. What does it mean? It means simply stop thinking that websites, CRM, widgets, gadgets, software/SAAS and all of the other stuff (including social media) sells cars and then makes people service them at your business. People buy from people.

Don't get me wrong, we're all about more efficiencies and lower costs through all the items above. But if you think for a second that you can forget about an up, any kind of up, you're dead wrong. Companies continue at a break-neck pace to promote their "two cars pays for our service"and "with our leads you'll sell 8.7 more cars more month".

People sell cars, people sell cars, people sell cars. The 'best' lead, scored by some company that doesn't sell cars, sold to you by a company spending millions to promote themselves with your money, with the most gross ever not followed up on is a floating, polished  t**d. At the same time, the 'worst' perceived lead from your overpriced third parties, let alone your own website (if your cars actually showed up on Google from your own website which most don't), is closed in a 5 minute call or three emails because the person was dealt with quickly, honestly and had all of their questions answered.

Focus on setting appointments. Appointments that are confirmed. That then show up. That then are handled right. That then are closed right. Because they nearly all come from your website or some displayed listing. Focus on what drives people to your store…you and your co-workers.

It's amazing the amount of dealers spending $20,000 per month or more to sell a few more cars (plus salesperson's commission, managers' cut, overhead and all the rest) because they're convinced that without buying what they're selling, they'll be crushed. Yesterday a meeting at a store revealed that, while the staff was asking for more leads, one of their marketing sources had about 20 plus leads that weren't touched. At all. Yeah, it was from service marketing. So I guess people that service don't also buy?!?!?! Focus…

Your website is there to get appointments. Everything online and in marketing outside of your website is intended to drive traffic to your website. To get appointments. Everything else you use to drive impressions and retention is supposed to eventually drive people to your website. Please don't fool yourself. Look at your analtyics. Yours. Google's. Not your website company's 'unique' statistics.

Please focus. Dealers (And everyone in business that is trying to grasp online), it's time to stop. And focus. We're trying to invite people to buy cars and maintenance and parts and accessories. As an industry we say that but it's not how we buy services. We buy because our buddy did, our competitor did, all of our 20 group says to and so on.

It's down to focus. Remember that Daniel-san could block, sweep and jump AFTER he focused on painting and all the other chores that Mr. Miyagi gave him. No distractions. Complete focus.

So focus Daniel-san, focus.

Best Practices: Professional Insight, Powerful Results

May 13, 2010 by Gary May 0
When You Hit The Wall…Again. And Again.

From time to time, even with the best plans, strategy, resources and more, it becomes painfully clear that you're not going to make it. Unfortunately, some people experience this state of being for far too long. In automotive retail, there are even those that are paralyzed by it for, well, eons. In sports if you have two false starts you're gone. Why does 1,479 false starts constitute holding on to a process or salesperson at a dealership?

One of the many benefits of calling on dealers all over the country is the face time with some great people. Hearing many clearly defined business and action plans is inspiring and creates hope that things continue to look up. Having dealerships that used to track leads in archaic software, or even Excel, switching to advanced CRMs is inspiring. Chopping off the top salespeople or totally turning your sales department upside down and starting over? Now that can make even the greatest skeptic smile!

There is no question that times are changing for our retailers. About five years late. Some of the areas of greatest discussion recently (not counting social media) are how we keep the best and brightest, or attract them, and compensate them, how to incorporate tools that should help us but ultimately cost too much or don't do what they are supposed to, how to cut costs and how to stop giving up gross.

We don't claim to have the answers but have some thoughts to mitigate the typical course of (1) I can't change things so I won't even try, (2) I don't know where/how to start, (3) I tried before and failed, or (4) fill in the excuse you use: take risks in small doses in the right direction, ask for help because there is a lot of good, free advice (especially in the online automotive forums), start creating more buy-in with top management before you try to 'sell it' and simply convince yourself that the goals you envision are worth achieving!

Many times turning heads and making waves is actually less of a risk that doing the same things over and over and expecting a different result. We've all seen or known people who were burned out that we had pegged as being a superstar.

For most of us, the greatest help we can receive in avoiding 'hitting the wall' is common sense, some outside counsel and a firm dedication to what we know will work. Remember, we're here to (clap) pump…you up!

Best Practices: Professional Insight, Powerful Results

April 4, 2010 by Gary May 0
Is It The Chicken Or The Egg? Nope. It’s The Customer!

A long time ago we lost focus. Then got it back. A while ago we lost focus, and got it back. A short bit ago we lost focus. Somehow it came back together. Ah, the joys of the automotive industry. Factory, retail, supplier, service provider…all of us. It's about the customer, always has been, always will be. Why does the perpetual machine forget so easily?

In a world that where everyone expects to be right, as customers, it's amazing how far off base we are. This goes for how retail thinks about, talks about and, most of the time, treats customers. And unfortunately this is the way most dealers are treated as customers, too. Simply put we're in a world where commitment wins but when you look for support, it seems to have "left the building".

This is the case in today's world: consumer controlled content. Dealers wanting to move forward and their vendors standing in the way (many times backed by the factory/headquarters standing in their way). If you sell a car with rear seat entertainment and heated/cooled leather seats, you can't tell the customer "we're working on it, it'll be here soon" or "Oh, I'm sorry, that package can't get those options. Did I tell you it came with those?". So why is that what happens and, more often than not, is accepted by 20,000 dealerships from their vendors?

What may need to happen is a reevaluation of what is expected. What may need to happen is putting the customers (along with the chicken and egg) first. What may need to happen is more participation of online groups and communities rather than just a few speaking and providing a real value. Lately we're watched as the value has slipped, content to validate positions is more re-purposed than ever, pitches and and vendor tirades rule. Nobody can hear the egg break above the screaming.

Generally speaking, people don't want to be accountable. Are you a dealer or management? Beware of broken focus. Maintain your commitment to improve your business consistently online and offline. Remember that once a decision has been made, every decision is on purpose. We've (happily) watched dealers do this for the past two and a half years.

If you're selling, are you treating your business as an entrepreneur? Are you treating every customer as your next ticket or your last? Ask yourself: what's the most important part of my business? The walk, the drive/demo, the pencil, the close or the prospecting? If you didn't answer 'prospecting', and we're not counting walk ups, you've got to ask your self what you're doing.

Take time to take a step back and ask yourself why you're in business. If it's to excel, make it happen. If it's for a check, then you know what to do…hopefully.

Best Practices: Professional Insight, Powerful Results

March 15, 2010 by Gary May 1
Start With The End In Mind, But Mind What You Start

One of the beauties of working with those businesses that want to move forward is just that: the move forward. One of the drawbacks is the distractions that can stop clients in their tracks. Even the most excited dealer, on any given day, may end up with a list of fire drills that can stop a freight train. Downhill. When you start your move in the digital direction, it must be a complete commitment.

More and more principals and senior management at the dealer level are getting their hands, minds and ambitions set around their online presence, brand reach, consumer interaction and spending real time in understanding what is out there. By educating dealers rather than just taking over the whole ball of wax, change is visible. By involving them rather than avoiding them, cooperation is established. By partnering, accountability becomes easier.

Even with the greatest level of engagement, however, retail is still retail and some habits die hard. Dealers can't ignore their fixed operations for a day. Management can't (and won't) turn a blind eye to the sales floor for 24 hours. Not even the parts manager gets a day without a general manager visit. So how can you afford to go a week or two, if not longer, without chatting up what's happening online and not just leads.

Two areas that might need more work are setting expectations and goal setting. Too often relatively major aspects of online operation are glazed over that can easily be addressed by keeping both vendor and client accountable to updates, the calendar and results.

These days you hear about more dealer service providers being tasked by their dealerships, companies providing more amenable terms, dealers sharing more information with their 20 groups and huge attendance at events around Internet and social media efforts. Great! What is happening to hold the dealer responsible? The web and everything associated with it is so fluid today that it almost makes more sense to have a meeting about what's happening and how to adjust and direct once or twice a week compared to having another sales meeting. Folks, if you have the right staff, it's about bringing the people in…salespeople know what they're doing and not doing especially when they hear it from the desk consistently.

Set expectations, draw out what steps must be done to excel. We must start with the end in mind AND be completely committed to it. Advisers, consultants, webinars and conferences are what you start and maintain with. In other words those are tools, just like 3 by 5 cars, tickler files, walkarounds, and CRM software. They are the conduits to results you want: the sale. They don't sell cars but you can't exist without them.

If you have committed to put your emphasis online, no matter what phase of the process you're in, stick with it. This isn't toe-in-the-water. This is died-in-the-wool. You can't get anywhere without having both the keys and a destination. You can't take off without the right equipment and a flight plan (yeah you pilots of the auto industry, you know who you are). And you can't win online without being part of it, staying in it and knowing what you want out of it.

Best practices: Professional Insight, Powerful Results

March 4, 2010 by Gary May 0