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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
A Week In Vegas Automotive Style (In A Few Paragraphs)

It's the conference time of the year for the automotive biz and this last week didn't disappoint. Having attended both the first-ever DrivingSales Executive Summit and the venerable JD Power Internet Roundtable it was clear, to some degree, as to what the leaders are looking for, discussing and sharing.  My first observation? Not enough dealers were present.

Nobody is trying to hold one group more accountable than the other and while budgets and money are tight, our industry moves at retail not at the supplier, vendor, media or marketing levels. Yes we need to have product that is appealing, ways to communicate effectively about it, means to get people buying the product (hello banks…), staying up with the breakneck speed of technology and keeping the general public excited. All those things aside, it's your good 'ol neighborhood retailer that gets the metal to move.

So, the DSES at the Hard Rock had two days to get the dealers that want to be in front in the best possible position with data, technology, new capabilities and compelling roundtable conversations. For a first-time event, it seemed to have hit its mark. With an agenda that covered current market data, SEO and relevant trends, new technologies and vendor offerings, analytics and social media, what was really impressive was the 'how to' part of the summit. Real conversations with real people answering the tough questions.

Networking is great and does has its immense value (including to this author) but the in-the-trenches, getting your hands dirty stuff is what moves the needle for any business. When someone is interested in doing something, they usually want to know the how, why, when and where. It was refreshing to be a part of the event put together by Charlie Vogelheim and Jared Hamilton.

DSES' range of speakers was atypical and that was a breath of fresh air. Compete's Skip Streets couldn't handle the glaring lights beaming down on him but the content prevailed. It was wonderful to get to hear BlueKai's new approach to media buying and consumer targeting from Dave Armitage. The presentation given by Driverside and R.L. Polk was very different considering it dealt with the back end of the retail business: service. Chris Brogan (New Marketing Labs) and Aaron Strout (Powered) quite frankly gave the road map to the industry without strings: customers, social media, branding, listening, content and value.

Switch gears to an event that I've been participating in since the first one back five plus years ago: JD Power's Internet Roundtable at Red Rock. Well attended by the OEMs, agencies, service providers, portals and dealers. The IRT has changed some over the past few years but it has lacked the 'punch' that it had a couple ago with the breakout roundtable discussions. One undisputed aspect: Everyone's socks were knocked off by Jim Farley's session Thursday morning, period. I've never heard more compliments and conversation after a speaker, ever. And if you haven't taken note of Ford's digital efforts over the past year, maybe you should.

In attending (and participating via Twitter) in a number of other sessions,the content seems to have drifted from subject at times but the speakers knew the craft from the social media, to the leads presentation to the media integration panel. Bar none, the crowd needed to be involved during or, at a minimum, after the sessions. The 'juice' comes from squeezing the *&$%!)#$% out of people and the occasional challenge to their stance.

Where JD Power's event always drives immense dividends for our industry is the lunches, dinners and hallway banter. I've always enjoyed taking part especially considering their influence and reach and, whether or not they are liked and appreciated at any given time, the company's heritage: focus on the customer. Hopefully our industry continues to listen considering consumers control everything today.

The IRT organizing team deserves props for getting social media on the agenda again but it still doesn't get the representation it deserves considering it makes up (along with online marketing and websites) the majority of automotive traffic now and for the future.

What both events need: more dealer participation, more dealer participation and maybe some more dealer participation. The media pays attention to SAAR, manufacturers, balance sheets, production, trends, bailouts and a whole lot of other things that have nothing to do with saving an industry. if you'd like to argue whether the magic number is 11.5M units or 13.1M, that's fine. Just as long as we're helping those that sell the cars in the first place.

The progressive dealers need to be up on stage talking about how they've changed their business and what ways they're moving forward. There may be a day in the near future in where the retailer is just as important as the company paying $20,000+ to speak or that changing up the agenda to showcase an undiscovered nugget is more relevant than some OEM's marketing exec giving the same presentation about their (somewhat) radical approach to marketing for the 20th time. (disclaimer: not talking about Mr. Farley here).

So this latest round of automotive Vegas-ness goes in the record books. Thank you DrivingSales Executive Summit and JD Power Internet Roundtable for having platforms that brought hundreds of thousand of dollars into Sin City. Now the question is: who has the guns to not make it a year until the next time the industry can learn?

Who can drive the education and engagement in the next 90 days without the trip, hotel, expense account and wad of one dollar bills (ooops, did I say that?).

Best Practices: Professional Insight, Powerful Results

October 17, 2009 by Gary May 1
The Great Dealership Debate That Shouldn’t Be

"Hear ye, hear ye! For all of you, thou shalt be indentured in thar' olde sales department.  And for the rest of ya blubbering fools, 'yer lucky to call the Internet department over yonder home!"  Boy, sounds like a clip right out of a bad Tom Cruise period movie about horse sales from the 17th century, right?  And to top things off, he loses his English accent about 17 minutes into the flick…

All right, it may not be that bad where you work, and it may be the 21st century, but why is there still a separation between most dealership sales 'departments'?  Why is there still a debate about whether or not they should be integrated?  Is it because the favorite 'floor' sales person loses status and the spooned deals?  What is it about the 1987 mindset that carries otherwise unacceptable practices forward?

Your entire sales department shouldn't be handling Internet leads because nearly all customers are now shopping online.  It's not enough to make those not taking website ups handle "online jacks" simply because there is not a trickle of showroom traffic to speak of, and definitely not to support the size of your team.  Do it because it is simply the right thing to do.  How you do it is up to you.

Dealers: quit responding to the market, conditions, volume and what you perceive to be business indicators and start being proactive: building, planning and expecting more.  Nobody ever built a birdhouse, let alone an empire, by standing still and waiting.

Yet people that otherwise can absolutely, positively produce more numbers, revenue and profit are not in organizations that support the opportunity, vision or appropriate business model.  While a good number of dealers have shifted their resources to completely cover all aspects of sales including web-based leads (and you deserve a lot of credit for doing that), most of the market continues to have a small segment handle what continues to be debated as a different kind of customer.

Fact: Consumers no longer bend around businesses, especially those with dated practices.  If you haven't checked in a while, they're no longer around.  Competition, the Internet and consumer-generated content/virtual word of mouth have changed our industry.  Businesses must listen to, connect with, communicate with and engage with the consumer on their terms.  To use an old adage: quit trying to find a square peg into a round hole.

If you no longer drive to the airport, stand in a 52 minute line and deal with a counter agent to buy an airline ticket, why are you expecting people to deal with an automotive retailer in ways that are also 20-plus years old?  Remember this next time you're in line returning a high-tech item that
you bought online from your favorite electronics retailer: you'll
likely find yourself in the same line as the people who bought items in
the store.  Imagine that…the same line!

It's time to look at your business with new eyes and focus.  Don't do anything less than you'd expect from the places you do business with.  No debate about it: there is no such thing as an Internet department.   There are only the ones that haven't figured it out yet…

Best practices: Professional Insight, Powerful Results

September 24, 2009 by Gary May 0
Moving The Needle: From A Get Together To A Ground Swell

It is going to take lots more than talk, snake oil and rain dances to turn our hobby back into an industry with integrity, consistency and accountability (if we even had those in the first place).  It is more than about time to make change rather than simply talk about it.

Somewhere between the low-ball numbers form some industry experts and the pipe-dream estimates provided by others, there is a more accurate one and that's where we'll ultimately end the year.  Fact is the number is still going be a boatload below what it was just a couple years ago.  Now we can do our best to get to some better 'state of the industry' but the last time I checked, it still happens through selling and servicing cars the right way: one at a time.

Let's face it: consumers control content, the banks are controlling most of the consumers' spending (or at least for now), and there's no love lost for the venerable car dealer.

A couple weeks ago there was a Automotive LA Dinner, put together by Philip Inghelbrecht of TrueCar, and it was a great example of trying to get together to move the needle.  Eleven industry colleagues, most meeting for the first time, came from as far as 150 miles apart to meet in the Long Beach area and share insight, expertise, information, backgrounds and opportunities.  Our next meeting is supposed to be around the New Year, I hope sooner.

Next month's DrivingSales Executive Summit is going to be different.  charlie Vogelheim and Jared Hamilton wanted to put the dealers' future and opportunities in the spotlight, rather than the typical highest-paying sponsor or best-known industry speaker or colleague spearheading an event.  I hope this becomes a series of events with unprecedented support for the attendees, instead of greasing the skids for someone else.

The list of companies hosting webinars to get information out there for free is compelling: Cars.com, Powered.com, Automotive News, Ward's, Dealer.com and more are spending time, money and attention on where the water level really is: retail.

When the needle really starts moving in the right direction is when most of the events and support are the rule, not the exception.  It's a matter of finding the folks who weren't particularly impressed with an event, sitting down with them and finding out how to improve things.  Video after video, post after testimonial about how great an event or speaker or consultant was when half of the people in attendance leave a room is not going to benefit anyone.

Our responsibility is to improve, educate, compel, engage, support, enlist and activate.  Simply going through the motions and putting a new cover on old tricks (like reusing a one- or two-year old article and calling it fresh) , saying the you can deliver on something and then not or simply doing nothing at all – i.e. 'waiting' like so many dealers like to play it – is a move in the way wrong direction.  Don't get the wrong assumption: getting back to basics is great. Great for teaching someone how to close that doesn't.

You can't get a newspaper person to get the web, so don't try to.  You can't get a person who's never used a cell phone to text a message, so don't try to. But if we act like a village (no laughter, please) and raise the collective water level, we can do amazing things.  The needle can move much quicker in the direction we want and need if we eliminate the roadblocks, maintain above the status quo and help one more person each day achieve something more.

And maybe, just maybe, we might get someone who's never turned on a computer to end up taking 70 leads a month and closing at the third or fourth highest rate in a dealership.  We might see more dealerships starting to implement true customer satisfaction tools, employ true SEO practices, get advanced training on their CRMs, get a higher ROI from truly targeted service marketing and even utilize mobile web (I don't care if it's 0.005% of online users now, it won't be next week, next month or next year so quit using ridiculous excuses!!!).

Remember: it's our job to help move the needle, not someone else's.  Let's get the needle movers together.  Unite!…and stay thirsty my friends…

Best Practices: Professional Insight, Powerful Results

September 18, 2009 by Gary May 0
Come On! What’s Social About A Price? Nothing!

After tip-toeing around this subject
for most of the year, it's time to take a more direct approach.  With more
car dealers using "social' media these days, seeing the overwhelming
amount of non-conversations are staggering!  A quick visit to the majority
dealer accounts on Twitter and Facebook reveal the following:

  • use of what are supposed to be social sites and
    services for essentially 'unpaid' advertising
    • The home of the $199 lease
    • Largest volume dealer in the
      area
    • Amazing inventory
    • More models arriving daily

  • use of auto-follow and auto-retweet programs to 'simplify'
    building followers
    • 30-day old accounts with
      2,000+ followers
    • Retweets of Automotive News
      articles
      • Consumers can't access as
        it's subscription only, and why share?
  • limited contextual links and content
    • video links are exclusively to
      store's site or YouTube inventory/walk-arounds
    • Using same links over and over
      with only slight modifications


Here's the hint that will hopefully get you to use social media for what it's
intended for: it's called social for a reason.  There is absolutely
nothing remotely social about car prices, lease specials, inventory, and 'buy
here!'.

Social is about conversation, influence, sharing, participation and ultimately
growing your virtual community.  And take note: this happens after
time.  It's organic and you have to learn.  It's not about control,
rants (although those can be fun in moderation), telling, limitation or
virtually throwing the keys on the roof.  Nobody cares about 100 tweets
telling how much you'll promise to save them, less the fine print.

Share funny stuff, eye-opening stuff, cool videos, first-to-market stuff,
did-you-know stuff, share fun events, invite people over to do things for free
and ultimately build a relationship around having conversations.  You'll
be amazed at how many customer service situations you can remedy, how many
times you can correct someone's misunderstanding about a capability or spec on
a vehicle and ultimately plant some seeds so that, when it's time, you already
have a customer that doesn't give a rat's behind that you are giving away gross
on "1 car at this price'.

So take some time and learn, understand and start participating instead of just
posting.  Just participating in social media doesn't give you any passes
or kudos.  Be real, be original, be compelling and be relevant.  If
you know you're market, friends, followers and customers, chances are you'll be
more successful.

Dealership staff: Don't talk to people.  Talk with people.  Listen to
people.  Create a valid, unpaid following that is interested in what you
share.  Be fun.  Be intentionally unintentional.

Go ahead, dare to be unique and different.  You might just end up being really social…

Best Practices: Professional Insight, Powerful Results

 

September 3, 2009 by Gary May 1
First Of The Month Syndrome: You’re Not Starting Over

Month end is behind you, save for those few deals that are going to be back-dated to August 31. Hopefully with C.A.R.S. you didn't need to do that. Now it's a whole new month and you're thinking "I'm at zero, clean sheet of paper, time to hit my numbers!"  Since we know so many people that do that, there must have been one parent in all of our families that, when we were infants, whispered in our ears "you'll think like you'll get paid, you'll start over on the 1st, you'll scurry like hell to get everything done on the last day of every month". Man, talk about a dysfunctional     family!

So here you are, 20-40 years later, convinced that a calendar determines your effectiveness and runs your life.  While nobody is here to tell you it's not how you get paid, quotas are set, assessments are handled and forecasts are created, quit thinking that way.  You're not starting over.

Especially in today's Internet-based world, the first of any month is just another day to tackle the 30-100 leads in your queue.  You can let the management and executives control the way a company operates but you don't have to be controlled by a calendar.  When you remove yourself from that process, your vision grows and you can see things in better perspective.  Again, don't start a revolt or fight the way your GM runs your store.  Just start to believe there's people (your customers) that work and believe in a 365-day world.

When you start planning beyond 30 days, in reality most folks hope on 30 and plan less, you can better see marketing effectiveness, referrals building, many leads actually taking 5-12 weeks to buy (rather than ignoring them until the week before and finding out they bought elsewhere), track trends and cycles, even bring customers back for parts, accessories, warranties and more!

If you truly believe that your number is 'zero' when the last month expires and the new one starts, maybe look at how you're holding yourself back.  It might just be your condition, but for those that can change, it might be the most fun you've ever had at a dealership…and possibly the most money too!

Best Practices: Professional Insight, Powerful Results

September 1, 2009 by Gary May 1
Cars.com Webinar: Cashing in on Web 2.0, Using Social Media Sites to Drive Sales

CarsDotComLogo

Register Now

As online communities grow in ever-increasing numbers, are you a part of the conversation or standing on the sidelines? Social media sites such as Facebook, MySpace and Twitter allow you to engage your customers outside the store and develop relationships that drive repeat and referral business. This webinar examines the rules of engagement on these sites to help you understand the channels and how you can capitalize on them.
Register Now

In this session led by Kathy Kimmel, Cars.com director of automotive consulting and dealer training, you'll learn how to:

  • Identify which social media sites connect your store with in-market shoppers
  • Incorporate social media sites into your sales process
  • Develop site-specific tactics that help you engage car buyers and encourage open communication
  • Determine who should manage your social media presence

Friday, August 14, 2009 12:00 pm EDT / 9:00 am PDT

Register Now

August 7, 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
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