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Take The Walls Down On Both Sides

Two items that we talk a lot around but typically don't address directly are the 'blocking and tackling' in the retail business. One stops people from the inside, the other from the outside. The first limits a broader brand experience while the second keeps customers away. Slowly eliminate both and you'll win.

Dealership firewalls, website blocking, limiting controls and other less-than-trusting measures remove timely access and ability to become involved in what is the greatest area of traffic generation today. Add to that the understanding of what is happening in the market during the time in each person's day that it matters most. Whether posting to Facebook, sending test leads to competitors, scanning forums and reputation sites (likely for what Google alerts notified the store of), or seeing a competitor's site updates and overall becoming involved in the essential aspects of branding and reach, being online is essential.

No, just block everything. Enter the typical excuses for limiting adult access to the web at dealerships: time waste, inappropriate content, non-work activities and more. Wow, great thing that your IT director has that closed down!! Whew, and you thought smoking on the point, chatting incessantly on cell phones, water cooler banter about the dealership's 'less-than-perfects' and simply hanging out for the next up was a time suck. Boy the Internet did change everything.

So all of that other stuff is now ok and some barely negligible photo of a little known celebrity topless on some remote beach in Europe is wrong? It may be but the technology that allows a complete blackout of surfing the web in what can be extremely productive time can also be set up to allow the right use. Have someone violating your store's TOU? Then fire them for the same reason that you would for violating other company policies. Ok, enough about that dealership mistake that is completely circumvented by someone's web-enabled device.

The second issue is blocking the other stuff that your store also needs: customers. If you've not woken up to 2010 (or 2009, or even 2008 and before for that matter) and realized that people are judging you before ever deciding to step foot in your showroom you've got to take the blinders off. The days of hiding aspects of your operation, be it front-end or back-end, and surprising customers when they do decide to come in will kill you.

Dealerships that don't decide it's time for transparency are not only kidding themselves, they're also hurting the next store that dissatisfied customer is going to head to. It doesn't matter if it's tackling the next 'up' because it's your turn, stuffing someone that doesn't understand that you could have actually saved them money, stranding someone in the showroom because the used car manager can't find their keys or a litany of other lies and excuses, mistreat customers and you will have fewer of them. And they will let everyone else know online.

There is an abundance of complete disclosure on the web related to everything automotive. So why pretend it's 1994 at a dealership? Because that's what a GM knows or a GSM pushes? Sorry, that has no place in business and deserves to be eliminated completely from our industry's retail locations. The archaic practices that still exist need to replaced by true business excellence. Customers will build a wall so fast around your dealership it'll make your head spin.

So if these are your challenges for 2010, put new plans and goals into action. The walls inside and outside your store will bring your business to a halt. Removing them and getting everyone involved in building your business is the best course you can start the new year with.

Simply put in the words of John Mellencamp in "Tumblin' Down":

Saw my picture in the paper
Read the news around my face
And now some people don't want to treat me the same…
When the walls come tumblin' down

You don't control your reputation, the factory, area pricing or everything else than happens around you, especially on the web and you'll never again control customers. What you do control is your brand, actions and messages. You can influence your customers and that, my friends, is powerful.

Take down the walls…

Best practices: Professional Insight, Powerful Results

What Did Thanksgiving Do For You?

If you're in sales, chances are you needed the Thanksgiving day break.  Badly. If things are good or not-so-good, the day off allows you at least to decompress.  If you're in automotive, many would say that the break is more than deserved.  You should return with two things: the day off and something new.

Too often we take the greatest chance to improve and dismiss it with a focus on the short-term gain.  Will you return simply energized or with new, more aggressive goals and a dedication to really build your brand?  It's not only the things we're thankful for, it's also the things you plan on being thankful for.

If you sell, are you doing everything you can?  Using your CRM as a static database or a real tool?  Is the day after Thanksgiving the day that you start leveraging your website with live chat, video, widgets, blogs, calls-to-action to convert your traffic (campaigns, truly unique offers, integrated items, etc) and more.  Or maybe it's not time to do that.  Right?

Is it time to start customizing your newsletters and other email marketing instead of thinking that simply sending things out means you get results?  Maybe Friday is the day that you start holding vendors accountable.  Or when you start leveraging social media and online reputation management?  Yes, that means you'll have to start asking, connecting and setting expectations.

In order to expect different results, you must do different things and do them consistently.  If there's ever been a time to distinguish yourself, your brand, your dealership, your clients, your community and your industry, it's now.  The gloves are off.  The transparency is ever clear.  The opportunities are there.  The opportunities are yours.

Chances are most of your competition is going to be doing something when they come in Friday: the same thing.  What are you going to do?

Best Practices: Professional Insight, Powerful Results

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

Customer Relationship Management: It’s The Message, Not Software That Sells

Three vendors, multiple pitches, agonizing internal conversations, budget decisions, integration, contract, training and the big fat check (every month). Now: simply turn it on and have it send messages for you and you win! Right? Wrong!

How in the world are we continually convinced that a solution 'in the box' is the right one for our multi-million dollar businesses?  Are most dealers now buying software and technology the same way that we've bought DMS for the past 20 years?  We have Dell build our own laptops down the finest detail, change the covers on our cell phones so they're more 'us', put 20's on our otherwise stock cars, and wear clothes that says 'me'. But we send out messages to everyone that's the same and expect them to respond, let alone come in, buy and refer? What a joke!

Here's a clue: if it takes more work and you don't see the results immediately, you're probably heading in the right direction. Why would you send a message (email, text, direct mail, etc) to someone that has a F-150 XLT from your store an offer for a $29 oil change that has small print disclaiming the offer is for 4-cylinder cars? How about sending someone that just leased a new Lexus IS250 from your dealership three months ago an offer that's $40 less per month or that has $1,000 less drive off for the same payment?

If you want to use CRM, treat it like a CRM tool by segmenting your customers in your database, updating regularly, creating different campaigns (start with something difficult, let's say like whether they're male or female) and start with unique messages and offers. It might even work!

Do you use your CRM, an eNewsletter and a company that markets specifically for declined service follow ups (if not more vendors)? Since you've created your own mess, at least hold each vendor responsible to running consistent (non-concurrent) uniquely-branded content that offers readers something that they won't likely want to ignore. What's meant by ignore? If you statistics show supposedly great open and click rates and you don't see a relative increase in traffic, people are likely ignoring your messages.

Have you started using social media as a CRM avenue? Think about it this way: do you believe that you have more customers opening your newsletter (with the same content as everyone else in your PMA) or using Facebook regularly? Don't answer out loud, but why don't you put your current, and archived, newsletters with a link on your Facebook Fan Page and every time you update, all of your followers get it in their feed and emai?

Instead of spending $10,000 a month on direct mail with a 2-6% open rate, send them via Twitter, Facebook and Plaxo for practically $0 and schedule the offers to be sent on specific dates, specific hours and with exact details. Considering that likely under 5% of direct mail is actually integrated into all marketing, your social media CRM efforts will pay huge dividends with less effort. Remember not to forget the most important part, the message.

If you believe that Customer Relationship Management is still about advertising, be prepared to have your (rear end) handed to you by more dynamic, engaged dealerships that have embraced the digital CRM revolution in addition to their CRM software. If the emails you send out to leads don't even have a link to your favorite reputation management site, links to your social media profiles and at least a 'why to buy' item like an intro video or photos of the car they will likely buy, you need to stop and really think over your CRM plan.

Treat Customer Relationship Management as its name implies rather than the 'other' CRM: customer-regardless mumble-jumble. Oh, and one more point: never stop asking questions. It's what you do when you stop talking and start listening.

Best Practices: Professional Insight, Powerful Results

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

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

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

 

“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

The Letters Of Success…Acronym Style (Sort Of)

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

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

P
ractice
Responsible
Overall
Customer
Engagement through
Sales and
Service

Being
Responsible
Advocates of
Name and
Dedication

Keep
N
earby:
O
pportunity
W
illingness
L
istening
E
ducation
D
edication
G
uidance and
E
xperience

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

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

Validate
Every
Need and
Direction
Of your
Retailers

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

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

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

Lead, be great, plan and succeed!

Best practices: Professional Insight, Powerful Results

When A Spade Is a Spade…And Knowledge Is Only Part Of The Game

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

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

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

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

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

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

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

Best practices: Professional Insight, Powerful Results