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Week At IM@CS: Chats With The Industry

It's been a while, maybe to long! Considering what is happening in the market, it's time to get back on track with the folks that power the industry (yes, besides consultants!). This is another mix of providers touching different aspects of marketing and services that hopefully give you a leg up (if not a whole body length or two).

You've heard it here before and you'll likely continue to hear it: accountability. I've not yet met a vendor that tells you everything. Even the most up front company will tell you that they can/do something and then shuffle (some like mad) to get it done, even if they know how to do it. Not only do I expect this, the challenge of new things for clients makes some companies tick, while many just hide.

More than ever, dealerships want the services they pay for to get the
customer in so their sales staff can "close 'em". Just leaves you to
guess that many salespeople still believe that they shouldn't have to work for the close.

Mobile Web: Face it, you have to do it, it's absolutely here (if not passing the auto industry like a freight train), consumers want it and technology is changing faster than prices for NBA Finals tickets right now.

Advanced Mobile Solutions has a great platform they're rolling out for automotive. They know mobile, understand that life-on-the-go will extend beyond iPhones and Android Phones very soon, have the backbone to support it and want to push the ball forward. Many of the platforms I've seen for dealership inventory are lacking. This company has some great promise…oh, yes they can also do your mobile/text marketing so you can have one vendor doing both correctly http://www.advancedmobile.us

Widgets: Plenty of people still question the staying power and how steadfast of a marketing tool having some real estate of a consumer's desktop is, let alone if they'd download it. Outside of iGoogle and the 'techie' folks, many believe that this market is absolutely huge.

Already featured last December in a "Week At IM@CS", DealerBug needs to be checked out seriously (yes, by you!). This versatile tool allows great presence, branding, analytics and adaptability. It's not a question of when you need it, only how will you use it. They're delivering customized widgets for everything from pre-order vehicles (like Camaro), to car clubs (Mustang, Corvette, IS-F, EVO, etc) and developing inventory-based communication. Relevancy and timeliness has a new home on your customer's screen http://www.dealerbug.com

Live chat has developed into a tightly debated sector of consumer engagement on dealership website (and now even on videos and ads playing on non-dealership properties like YouTube). No matter what, dealerships that do it right…get the results.

ActivEngage happens to be where IM@CS believes the market is right now for car dealership live chat (ie real-time car sales folks). Every time there seems to be a wrinkle in the 'get-em-on-the-website' process, this company appears to have the iron for the job. I've been impressed this year in watching the value that they continue to provide http://www.activengage.com

Hopefully we'll keep this section of the blog a little more alive. Please give some feedback on any companies that you believe should be featured or if your experience with any ones that are featured has been less than desired (in all fairness).

Best Practices: Professional Insight, Powerful Results

May 10, 2009 by Gary May 0
What Are You Paying Attention To? You…Or The Customer?

You know what? I can't blame you!  Now days it so easy to just think about yourself and your needs when a customer comes through the door toward you. Things are so slow on the showroom floor, you might have to role play with a set of 22" chromes (but they might not talk back) or do a walk around with the receptionist! No matter what, you can't stop focusing on what is truly most important.

The customer, how you treat them, what they expect, what they're prepared for and everything to do with that is what everything comes down to. Things may seem different, but don't lose your perspective! What you're paying attention to and how you represent yourself and your dealership is so critical…

If you're a pit bull dressed in Armani, you may get a sale but the next one will wait until after the 5 o'clock news has stopped talking about the attack (so to speak, of course). By the same token, don't wait for your general manager to come up to you to check your pulse.

Stay locked on your customer and really pay attention to them: their needs, their actions, their demeanor, their family, their surroundings and, yes, their engagement with you. Figure out how to influence them by paying close attention to these things and more. Half-baked salespeople get half-baked results, period.

In all fairness to the sales staffs, what is management paying attention to? What is it about your motivations that steers your team's results certain ways? Here in the Southern California area, one of the luxury brands' SUVs (which launched within the last month) was being sold at MSRP for, unfortunately, just a few days.

Then someone (alas, it always starts with someone) had to take the price down to between invoice and $500 over. On a brand new car. That people will pay window for. That people have waited for. In a market and industry where profit must be king today (behind paying attention to clients). Even without a unit to sell!

And for what? For leadership? To force other dealers? For the brief satisfaction? It's mind boggling how counter-productive dealers can be…and then complain to anyone who will listen about how bad things are. What are you paying attention to? Whatever it is, it's not beyond your nose.

In this teetering-on-the-edge-before-the-next-round-of-bad-news world, start paying attention to and doing the things that will get you the results you want, that continue to pay you, that build a volume of completely satisfied clients and ultimately keep you and your customers happy.

And it shouldn't be too hard since the next dealer is probably doing the same thing that caused them to lose the last customer!

Best Practices: Professional Insight, Power Results

April 5, 2009 by Gary May 0
CSI: A penny for your thoughts, $10,000 if you say that I suck

What is it about CSI, or through interpretation of what it means, that has had dealers begging for their life and coaching customers? Especially today when someone may be cordial enough to tell the factory that they were completely satisfied in the hand-written survey (when they may not have) only to have another customer completely lambaste you online…

More importantly, why does the focus on CSI happen at the end of the delivery? Because they'll remember? Hardly! Because if you coach them before they leave, they'll help you more? Not likely! Complete satisfaction happens from 'hello'. The foundation for a completely satisfied client is based on the 'completeness' of the experience. Many dealers believe that it still depends on that last smile and wink.

With the proliferation of the automotive Internet and anonymous customers, why in the world would you not want to start at the start? If a waiter took care of you for the last 5 minutes of your visit after ignoring you for the first hour and a half, are you going to leave a 25% tip?

Customer service and complete satisfaction need to take place:

1. when you first meet; regardless if in-person, phone or Internet
2. throughout your communication: set expectations, deliver on them and ask questions!
3. in your walk, drive and delivery: make sure the customer feels taken care of
4. before the customer leaves: check that everything has been handled via review, yes review
5. after they leave: send an email immediately to ensure their satisfaction and give yourself and your dealership the chance to handle any issues before anything becomes a problem

Too often customers feel cornered and pushed to provide a positive review but are actually neutral (or worse) on the whole experience. There is absolutely nothing wrong with checking, asking and making sure the customer is having a great experience throughout their time at the store.

Another thing, stop ignoring the customer when the rear left tire clears the driveway. And I don't mean a newsletter, a fancy Hallmark and/or their special VIP card. Complete satisfaction never ends people.

The best salespeople will typically ask (yes, ask!) their customers something along the lines of "how would you be able to feel that you were completely satisfied?". Not "what will it take…?" There is a difference. If you don't know what it is you need help that this blog typically doesn't cover.

Remember that CSI is someone else's interpretation of your customer's interpretation of your performance and how you interpret satisfying them. Don't spend three minutes on it, spend thirty days on it, every month. Oh, and ask all of your customers to write their reviews of you online (you've never heard that before!).

The pennies you get for people's positive thoughts will add to thousands of dollars over time…and you might just save your dealership $10,000 at a time.

Best practices: Professional Insight, Powerful Results

January 31, 2009 by Gary May 0
Week At IM@CS: Chats With The Industry

Information: Admit it, even when you're 'on top' of your DMS, know your monthly P/L and even memorize 2,000 customers' names…you still struggle. We live and die by information. When do you act on it? How do you act on it? Is it
relevant? How is it stored? Do you use it to learn? Do you seek it with the determination of an honors student with a 4.3GPA or the person who slides to the back of the classroom? Doesn't matter: your world is ruled by it. Here are some ideas
about what you can do with your information and some great places for more:

Visible Customer:
Have an ILM? Pay for a CRM? If it's not strong enough or your staff can't use it effectively, it's no better than MICKEY MOUSE. Still need to build one-to-one relationships
with your customers? Sean Stapleton and the team at Visible seem to
understand what dealers need to a degree that very few vendors do today
from an execution perspective. The product line is inline with today's needs and their background happens to be solid enough to rest an entire football team on (in case you were wondering). http://www.visiblecustomer.com

Dealer Refresh: A few weeks ago a couple newer automotive "community" sites were mentioned that IM@CS reads and participates in. When it comes to industry blogs (including this one) there is a recognized leader through the observations and words of Jeff Kershner at http://www.dealerrefresh.com Check it out if it's been a while or if you've never laid your eyes on the content from one of Mile One's and the industry's finest.

Arkona: Every once in a while, one of our clients completes their 218-year contract with their existing DMS supplier. Having been around and watching Richard Holland's company for the past four plus years (and acknowledging DealerTrack's great acquisition as well), Arkona seems to do that little bit more, a little bit faster, a little bit easier for a little bit less with a little more focus on you (yes, that's being a little nice to the 'other' guys). Check out their product: http://www.arkona.com

Survey Monkey: "I can't trust my staff to get the data", "No customer is going answer my questions, they don't even answer our surveys" and "it's not my job to follow up with the customer, our CSR does that" are just a few excuses heard typically in the halls, showrooms and back offices of dealerships daily. There is a free way to get your client opinions and comments with a little bit of set up work. If you need to ask more than 10 questions, you'll pay a little but it's worth every penny. What you do with the data is up to you, but get it! http://www.surveymonkey.com

There are many more ways to accrue, store, work with and ultimately monetize your data, but hopefully the above serve as one to a few more than you had before. We'll try to keep these updates weekly and ultimately have an area where you can get in touch with the vendors.

Best practices: Professional Insight, Powerful Results

January 14, 2009 by Gary May 0
Branding 101?…Not Until You Understand And Have A Brand

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

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

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

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

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

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

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

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

Best practices: Professional Insight, Powerful Results

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

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

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

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

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

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

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

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

Best practices: Professional Insight, Powerful Results

January 8, 2009 by Gary May 0
The Step You Cut Out In 2009…Might Be You

Fact is, more often than not, when you cut corners in sales the one that is affected most is you.  It is also a fact of business life that we're replaceable, as I've experienced myself. Why is it then that most people don't typically go the extra mile, especially when it is so needed?

This is not to say that there are not plenty of go-getters out there. Today it is critically important to think about making the most of every opportunity, especially with fewer prospects and less marketing dollars. Here is a list of common mistakes when it comes to achieving sales success in a down market:

1. Customer assumptions (examples: won't qualify, didn't want the aftermarket wheels, etc)
2. Market assumptions (examples: should call prospects less, nobody will buy when stocks are down, etc)
3. Other assumptions (examples: every lead will be for the unit we don't have, every customer is a jack, etc)

Taking out critical steps and not following sounds processes is what leads to failure. It's not the lead, not the market, not the model and not the customer. Successful sales people always do more than it takes and live by process. Take the time to build for your success by taking every step necessary. Some ideas you may want to consider for a successful 2009:

1. Create a set of tasks that you achieve every day and make them habit
    Set 1: start of day list (nothing else gets done before this does)
    Set 2: process on every sale with a required sign off or completion checklist
    Set 3: accountability checks throughout the day (follow ups, contacts, management)
    Set 4: end of day list (prepare for the next sales day before you leave and have tasks written down)
2. State, write down and maintain goals
    A. Make them visible and be accountable to them daily, weekly and monthly
    B. Track so you're not surprised
    C. Have others challenge you and check on you (do this with those who are more successful)
3. Learn, learn, learn
    A. Pick up something new as often as possible, even daily (task, idea, expert advice, etc)
    B. Apply sound principals
    C. Check for success, if it's not working…drop it

If you can do at least the above items and don't cut out any steps, you'll not only likely be successful but chances are you'll have saved your own job. In working with dealers last year, at least one sales person at every client didn't know how to work their compensation backwards. In other words, they had no idea how to make the $5,000, $7,500, $10,000 a month they said they wanted to based on more than a simple desire and some idea of units. To top it off, they usually had very little to none of the steps above to guide them.

If you're ready to reinvest in yourself as well as reinvent yourself, the time is now, the reason is you, the purpose is to do what needs to be done and the end game is success.  If you don't want to be in sales, clearly don't want to work Internet
leads and have no desire to do anything but 'wait', you're definitely looking at one clear outcome.

Little steps lead to bigger ones. You learned that as a child and then lost it in the hustle-and-bustle of our world. Remember that walking is controlled falling, that's all. You can fall without failing. Do what it takes to do what you do better. Make 2009 a great year of successes…starting now. Go out there and be great!

Best practices: Professional Insight, Powerful Results

January 2, 2009 by Gary May 0
Stay In The Driver’s Seat and You’ll Put More In Theirs

When it comes to the selling of cars today, it's not any easy task. Compared to the past twenty plus years, the cake walk has slowed to a drunk crawl. So what allows some folks in the 'Internet' sales world to deliver 15, 20 or even 25 and more per month? Control.

Staying in the driver's seat is not about dominating a conversation (or having a monologue with a prospect in front of you) or barely raising above a whisper for the fear of the person leaving the lot. Control is first about confidence, knowing that what you have to offer is more important than the piece of inventory that you're trying to sell. Being a dynamic listener and taking the time to qualify your customer keeps you from falling into sales (although there is nothing wrong with that, don't make it habit).

One of the greatest parts of staying in the driver's seat is learning, whether about the client or yourself. When you learn, you are taking steps toward the art of being in control. Once realized, you are no longer a victim or circumstance or, as Larry PInci of Sell The Feeling puts it, on the 'effect' side of the equation.

If you are typically in the driver's seat, you'll likely have your 2009 plans carved out (if not already in motion), have your targets planned for January, realized some things that you will both do and not do to cause change in the coming year and, chances are, have some 'use-of-technology' goals on the radar.

It is interesting to watch some of the data that comes out monthly (if not weekly as of late). Look at the trend in truck and SUV leads and sales over the past month. Surprised that people are buying them again, even with all of the focus in Washington D.C. over relevancy and MPG tied to providing loans to the domestic OEMs? Give people a reason to buy and they will.

Remember that people do what they want to do. Sometimes they need permission. When someone wants to buy a house, do they go to a dry cleaners or trash collector? Do you watch E! Television when you are considering which college to send your child to? Understand your market, your customers, your skills and your opportunities. Use control for all it's worth…heck you might even influence someone!

Stay in the driver's seat and people will come to you when it's time to buy a car.

Best practices: Professional Insight, Powerful Results

December 27, 2008 by Gary May 0
If You’re Living By Service…Don’t Die By Service

We don't touch on service much here…time for a little breather!

More dealers than ever are floating (or simply sinking slower) on the revenue from their service department. This trend should be supported with an overwhelming conviction to completely satisfy customers. The risk is just too large to lose clients both on the front and the back end of the store.

Things being what they are, it should come as no surprise that achieving such a goal is as far away as the next 20 walk-in customers. Equally as daunting, many service directors have had their budgets and discount capabilities slashed when exactly the opposite should be done. At the same time, it would be great to report that at least some budget has been thrown over to the web for marketing. But the jury that we could ask on that one was laid off.

Folks, don't kick the gift of traffic in the mouth! By the same token, don't give away the farm either. Instead live by balance, planning (yes, plan ahead, execute on the plan and don't change the ding-dang plan) and accountability. Make sure that your service marketing completely and clearly explains the benefits of servicing at your dealership, tangible perks (VIP club, fixed pricing or discounts, upgraded loaners, pick-up/drop-off, etc), guarantees and anything else that puts you up a level.

Get your customers to write up their positive experiences (and to offset the bad ones) on sites like DealerRater, CarFolks, MyDealerReport, Yelp, Google, etc. Provide maintenance clinics at your store (since you're already doing new owner events every one to three months, right?) to help your customers get more for their money and feature your parts and accessories. And then set up service scheduling on your site to make it easier for your customers (TimeHighway, XTime, UDC, MyCarPage).

This is not rocket science, it's customer sense. Over the past two days I've been told about two completely different examples related to service departments:

One via a friend in Michigan talking about his BMW. The service light came on, he called the dealership 30 miles away and the service writer informed him how to avert the visit (the 'fix' worked). He could have still had my friend drive to the dealership, get a complimentary inspection, spend time at the store with -insert a salesperson's name here-, and sent on his way with a $30+ charge. Instead they created a customer for life (with the exception that the service writer didn't get his email/text address, log the call in the CRM and create a GREAT follow up for the event).

The other you'll have to read for yourself here on Edmunds' Inside Line which is just plain astonishing.

Now is the time to go the extra mile, not cut off a few inches. There's nothing worse than stepping over a dollar to pick up a penny. Do what it takes to deliver the best experience everywhere in your dealership. And start with your next customer…

Best practices: Professional Insight, Powerful Results

December 10, 2008 by Gary May 0
Tear It Apart and Rebuild It…Better

Most of us who have spent any amount of time in sales realize that our
database/contact/Rolodex carries an incredible amount of value, in many
cases more than our skills or abilities. With the prevalence of CRM and
other database software, many believe that the job is done. Nothing can
be further than the truth.

Today it's more important than ever to continually tear down the client
database and make sure it delivers the most value and revenue possible.
Auto retailers are notoriously bad in this area and, quite honestly,
deserve the reputation. When we send the same newsletter, flier, direct
mail, etc to every customer/prospect, what type of message are we
delivering?

Better put, consider John Doe who's shopping for a Heeker Shnazer Beta
1. He sends two leads directly to two Heeker Shnazer dealers and also
requests quotes from dealers through CarsStink.com and
DontBuyACarHere.com which send the leads to three more Heeker Shnazer
dealers. When he doesn't buy for a few weeks, every dealer sends him
virtually the same eNewsletter linked to the same site with the same
content! It's great to be fast, respond, ask questions and try to get
the appointment but what are we really doing to connect with our guests?

If you are not segmenting your database and your customers, specifying
your content and setting expectations, someone else will. Or worse yet,
the lacking experience continues to validate consumers' opinion of car
dealers.

So, what does it take?
1. Start understanding why your 'ups' are in the market and actually put that info in your CRM
A. Empty nesters
B. Soccer mom
C. Petmobile
D. Weekend driver
2. Create a field so you can segment your database based on those categories
3. Set certain fields in your CRM that must be completed
A. email and/or text (customers cell & service carrier allow you to text message for free)
B. Reason in market
C. Follow up parameters
D. What they do (work, leisure, family, etc)

Remember, contextually relevant content will bring a person back. If
they don't open your first three emails/eNewsletters, they most likely
won't open one 36 months from now (if they don't unsubscribe in the
first place) when they're in market again. Don't blame your email
marketing company, you're the one that bought the same service your
competitor did. Remember: YOU are the marketer. Not the brand you sell.

Don't waste all of the data that you get when you're qualifying,
walking and delivering your customers or store it in the computer
behind your eyes. Work your database, update your database, market your
database and use your database effectively.

If you regularly check and rebuild your database, it will pay you back
handsomely. Do it yourself so you are not depending on something or
someone else to do it, which is the road to failure. Once you start
being really relevant, you won't believe where all the customers came
from.

Be smart, be efficient, be relevant, be timely, be smart…be successful.

Best practices: Professional Insight, Powerful Results

December 8, 2008 by Gary May 0