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The State of Automotive Digital Advising: More Vanilla, Please!

Anyone who regularly reads our blog knows a few things. One, we tell it like it is. Two, we educate from fact and passion, not from the heart of from the pocketbook. Three, we do and cover what nobody else does across the entire scope of services. Four, we affect a sliver of the industry through the automotive social sphere. While none of these aspects alone are uniquely significant, it becomes more so when you consider what dealers are receiving from “advisors” today.

Recently we had a high-line dealer visit that also included a regional sales director from the OEM, which is a rare pleasure. They wanted to review the new digital assessment package from their third-party partner. While we were extremely happy that the digital marketing consulting company that had previously provided in-field services for the OEM and their dealers was no longer doing so, and there was clearly an improvement in the standard deliverables, frustration quickly set in.

In reviewing the report, it was clear that it took into account items that didn’t properly set up dealer expectations, or take into account how search algorithms have changed, especially mobile, contained improper SEO evaluation components (named search, for example) and wasn’t thorough (had both scoring and consistency issues).

So while the report was an improvement over the third-party and OEM agenda-only approach previously employed to advising the dealers, it showed that we are still significant;y off the mark when it comes to assisting a dealer in doing a better job online. While we’ll assume that the vendor’s intentions are completely altruistic, we once again see the misguided and completely subjective plight we’re in considering there are no “digital standards”, no “consulting certifications” and certainly no “results-based comparisons”.

What we do have is more vanilla. Yes, the OEMs to a large extent need the data; yes, there’s a much better way to go about it. And the challenge is how can you do that, counting on one or two companies, without true A-B testing, in a cost-effective manner? You can’t and all that happens is the dealers can operate off slightly better input rather than consultants taking ideas and bringing them back to the third party and OEM. Everyone loses in that scenario.

Yes, more money is being spent. And with that, more errors are being made. Stupid, unseen errors. How do you tell a dealer that 25-50% of their SEM spend is for terms they shouldn’t be buying, cities that are 500-1,500 miles away, with action-killing text and that 47% of their traffic is on mobile but 70% of their budget is going to desktop? Or that their website’s key pages have the same content as 100 other sites and incorrectly link to non-existent pages on their site? Or that their social media is a complete disaster that is not being seen, read or acted upon? OK, “tell them” you say. And then they bury their heads again or plead the “have to use what my OEM says to” line of garbage. No you don’t.

Stop getting vanilla. When the market drops again, and it WILL, there will be a larger dividing line digitally between dealerships. You can’t take an OEM digital assessment report, unfortunately still, and build better value, own more spots in SERP, turn your social media and social marketing around or answer your leads any better. You actually need to spend money doing that, using different vendors than everyone is using and learn how to understand this our evolving, digital world.

 

Best Practices: Professional Insight, Powerful Results

 

 

Things That Pissed Us Off In 2010 (Yes, They Pissed You Off, Too!)

We know it, you know it, they know it. Almost everyone knows it. Because if everyone knew it we wouldn't have ben put through it. But we were, you were and they were. Disclaimers: These are not in order of importance. Many companies are being called out, not all. This is a singular perspective.

So here it goes:

1. Automotive marketing overall: Sucked, still sucks, will likely continue to suck.
2. Dealership websites: 1995 called and wants its sites back. Give us a break and some new suppliers!
3. OEMs that don't publish new inventory: Get over it. customers leaving your brand are.
4. Automotive trainers that re-branded as web consultants: A new suit can't cover 1982 style.
5. Reputation management companies: Fudge is brown. So is bull%^&*. Fake customers? Envelope stuffers? Hooters girls? Please leave…
6. Motivational speakers that re-branded as automotive trainers: See line 4.
7. Social media companies: Charging dealers $3,000-5,000 plus per month? Larceny is still a crime.
8. DMS companies: Still make clients sign in blood for 15 year old technology, for 15 years? Nice. FAIL.
9. Website company dashboards: No, use this thing called Google Analytics. Quit fudging numbers. Block dealers' and your IPs for starters!
10. Inventory marketing portals: The luster is long gone. Run or acquire some companies for revenue!
11. Sales reps: Stop selling and start helping. Don't know much so you can't help? Sell elsewhere.
12. Ad agencies (Tier 1): Quit the facade. Traditional doesn't sell. Experiential does. Learn to like social. Get help.
13. Ad agencies (Tier 3): Quit lying to yourselves and your clients…You don't get digital. Get help.
14. CRM companies: If you don't do that, say you don't do that. Otherwise add it for free. Pariahs.
15. Website companies using Flash: 2003 called and wants their websites back. It's called HTML or PHP.
16. Facebook Personal Profiles: Businesses, we've been yelling. Set up pages. Not "friend" profiles!!
17, Social media companies: Setting up APIs and RSS feeds from OEMs is not social. It's plagiarizing.
18. Social media companies: Setting up inventory feeds as posts? If that's social, I'm tall, rich and hot.
19. Traditional media/ad networks still selling to dealers "old school". Shame on you (and your bosses).

Dealers, you're not in the clear either:

1. Hiring any service, including social, as a "pay for it and leave it" service? No such thing. Period!
2. Hiring any company because you "liked the rep when they were at ________ before". Failure…
3. Not taking the time to get educated on new aspects of your business? Hand the keys back to the OEM
4. "Trying" new things?! Sample spoons are for ice cream. Business is for big boys and girls. Just Do It!
5. Cutting your nose to spite your face? Chances are you're too lean. Hire the right people, not resumes.
6. Leaving everything up to the factory (especially some luxury brands). Wake up! It's your business!
7. Believing the you can turn your store's reputation over to an outside company?!?! I've got a bridge…
8. Not flinching on a new $4,000+ service to a company you're already cutting a $15k check to? Dumb.
9. Spending $3,000 on a 3-day conference 3+ times when you can get a month for that?! And get more!!!
10. Spending any money on your business and not taking ownership of the new spend. Why, why, why?
11. Paying any amount of ad money to traditional media and it's not integrated and tracked?! Foolish.

New-age definitions when you don't understand the spend:

CPM: Can't Provide Much
CRM: Can't Remember Much
ILM: Incredibly Lousy Marketing
CSI: Coached Senseless Investment
SSI: Serving Senseless Initiatives
I/O: Incredibly overpriced
OEM: Overlord, Empire, Master
PDI: Petty detailed injustices
Social: Someone outside control incompetently and loosely
IMS: Inventory Means Something
DMS: Decades-old Money-draining (or Mediocre-Moduled) Systems

We could go down the path a long way but here's the simple version of the message: quit doing things old ways, with old thought processes, with old beliefs, with old defenses, with old intentions, with old management. If you want to run a dealership the old way, get stuck in 1964, 1974, 1984, 1994 or 2004. If you want to thrive in this and the coming markets, wake up to the reality that business will not be the same. Even if we sell 17 million new cars again, it'll never be the same.

Some may be able to, by all appearances, just skim along on the surface, mesmerized by everything going on around them and still put up the numbers. For most of the businessmen and businesswomen in the retail part of our industry, it's a deep dive kind of time. Your success depends on you and how you build your business's presence, results, growth and more. Less than 5% of your colleagues are engaged, firing on all cylinders and moving forward in today's market.

There are a lot of things that pissed us off in 2010. And we may never do a post like this again. But somebody needed to do it. This might motivate some, light a fire in others and have some in stitches. No matter what, it's time for moving some more metal. There's not too many ways to do that today.

Are you pissed off enough to do something? We've been helping those that want to do something for the past three years and three months. Are you next?

Best Practices: Professional Insight, Powerful Results

Lead, Follow…Or Learn How To Lead! (Don’t Get Out Of The Way…)

We were young once and we were fearless! Then we got some schooling and some more, then we got trained, then we were led, then we completely forgot how in the heck to be fearless! Add today's worthless media, sprinkle in some naysayers, a fair dose of skepticism and you've got a full-blown problem.

How to fix it? Leadership, which is defined as the activity of leading; with the leader being "a person who rules or guides or inspires others". Let's throw out the 'rules' definition for our purposes here (there are too many examples of lacking leadership to touch that one).

So, not everyone is going to be or desires to be a leader. That is why 95% of the American public controls 5% of the wealth. There is nothing fundamentally wrong with being a follower. To be an effective leader, however, it takes more effort in a number of areas. First, you have to know where you are going (aka start with the end in mind). Second, you have to completely believe in what you are doing. Third, you must understand the task at hand. Fourth, you must be accomplished enough to know the fundamentals (26 plus times to make something a habit). Also, you can't be swayed by followers…ever!

We use the expressions "industry leader", "thought leader", "technology leader" and others like those too loosely many times. Leaders consistently and methodically do what needs to be done, many times without fanfare or credit. Leaders in the retail space are commonly not the loudest person of the staff (whether automotive, real estate or other markets). And remember: leaders are made, not born!

Today's market conditions and challenges are ripe with opportunity. It takes leaders to push through, know the target, set the course and get the whole team to go with them. Together Everyone Achieves More is not simply a saying. It's a mindset. It's a belief. It's a mantra. It's a reality. If you think for a moment that you can be a leader by yourself, you still have a lot to learn.

Don't worry though, because the true leaders haven't stopped learning as well. You'll see them reading, listening, attending, challenging, paying attention and many more activities around going forward. Will you make mistakes and missteps? Absolutely! If you're afraid of failure, learn to follow. If you're not afraid to fail, learn to lead and it will become natural.

Are you where you want to be right now? today? last week? If not, start leading. The old adage of "lead, follow or get out of the way" has two truths, not three. If you're in business and you get out of the way, you will die. Our 'next' economy has no space for that. Follow if you may, but there's too many risks associated with that.

It is my hope that you will learn to lead, desire to succeed through failure and compel yourself enough to change. Find leaders around you and tag along (if they're truly a leader, they'll absolutely want you around). It will be interesting to see which retailers reach out for help this month instead of following one more day or finding out that waiting is the last nail in their coffin…

Best Practices: Professional Insight, Power Results

Digital Dealer in 500 Words Or Less (It Should Be Way More…)

If you could find a fundamentally harder time to think about events, traveling, speakers and spending time (and money) in Las Vegas, it would be a stretch.  Fact is that you would be justified by not even thinking about anything but 'the next customer' right now.

For the 420 plus dealership staff that just spent the last three days at Digital Dealer: CONGRATULATIONS! The fact that you put your money where your mouth is about growing your business is a great step forward in addressing the market, getting a foot up on your competition and utilizing newer ways to connect with your customers.

Chances are you left with too many ideas and strategies to remember and that's great. Some of those ideas likely came directly from the speakers at the event. Now before you go rushing out signing up new vendors, canceling your existing ones, bringing in the flavor-of-the-week, well-polished messenger and other gotta-do-it-now activities, stop and think.

How does everything work with your direction, intentions, brand, budget and goals? Was there a Dealership Goal Setting 101 session? Shoot, I missed that one! Also I couldn't find the 'Connecting and staying in touch' networking event (although you do have a partial list of attendees). You most likely had more than enough time to talk with session speakers in the 10 minutes you had before the next session… If you paid to come to the event, you should have gotten everything you needed out of it. So check before you spend (yes, there were completely qualified, hard-working vendors speaking on stage but many biased as well, just to be straight).

There are likely multiple suppliers for the solution(s) that you're thinking about but chances are you didn't hear from their competition on stage (credit to the always honest Dennis Galbraith of Cars.com who pulls no punches, mentions their competition and tells people it doesn't matter who you're going to hire as long as you know what you need).

Mike Roscoe has put on a number of events that our industry needs…to this point. It's time to get all of your thoughts back to the team that runs the conference to make sure that the value stays in. With all of the attention on the OEMs and suppliers, dealers are not getting their fair support. In my mind, everyone that paid the money to expo in Las Vegas wants and needs dealers to be successful (and make a few bucks).

Now is the time to take our industry where it needs to go. We can't wait. We can't accept things as they are. We can't put our heads in the sand and cross our fingers that it will be better in 2-5 years. Take the bull by the horns or we'll be simply left with bulls–t. I'm proud to have the involvement with Digital Dealer, many of the associated companies and the great folks that attended.

Let's make sure that we can keep getting together a few times a year…

Best Practices: Professional Insight, Power Results

Success: A Four-Letter Word? Not Today

It used to be, by common knowledge, that success was defined by work (and how much you did). Now days it seems success is defined by smaller multi-million dollar losses, one more gizmo sold than the competition, not spending anything compared to what you did last year and more or the like.

I'm not the first to remind everyone not to lower the bar too far or get to the point where goal setting is replaced by complacency. But I may be one of the first to say: just remember why you got into business in the first place! Now, you may have been fortunate to fall into a highly profitable business/niche just because you had the money to get in. Good job (not great, though).

If you have built your name, presence and equity with a solid foundation, it's time to kick yourself into high gear. Maintain your business plan, don't create a new one for hard times. Adjust, don't start over. Keep your edge and aim to do better than 'just maintain'.

Right now it's more important than ever to:
1. Talk with EVERY prospect and client (don't talk at them)
2. Validate EVERY opportunity you have (people do things for their reasons, not yours)
3. Set goals and write EVERY one down (you can't hit what you can 't see)
4. Follow up with EVERYONE (the ones you don't stay in touch with become someone else's best client)
5. Support EVERY aspect of your business (not just what you're most comfortable with)

Hard work is more important than ever, just remember why you're doing it and what kind of results you're looking for. If you're determined to succeed, have all of your employees, vendors and clients supporting you, continually deliver products/services and great value on time and per your commitments, chances are you'll win.

What ever you decide to do, do it well and do it every time. Here's to success!!

Best Practices: Professional Insight, Power Results

OK, It’s Time To Get It…Follow Up Is The Key!

It doesn't matter who you are, what you sell or where you sell. Further, it doesn't matter if you're actively selling or making sales happen away from the front lines. There are a number of things that make business tick:

  1. Passion about what you're doing and/or representing
  2. Solid fundamentals; especially process
  3. Understanding and belief in your business' mission and/or goals

Some still count on their manufacturer's brand or their 'book of business' to bring in customers.  If you can still enjoy that luxury today, count yourself as extremely fortunate. For most businesses, that's not the case. But, it's not as difficult as many make it.

A few things are paramount and undeniable:

  1. People want to know what's in it for them
  2. People don't care how much you know until they know how much you care
  3. People want to understand value, advantage or benefit

Simply put, consumers want a reason to connect. The number one active failure is follow up, bar none. When you tell someone that you'll call them back in 30 minutes, keep your word. When you say that a customer will be taken care of, it's your job to ensure that (and be careful because their understanding of what that means may be dramatically different than yours!). If a person understands that something will be replaced, delivered or set aside, do it!

More and more, I find that follow up is atrocious. You'd figure with fewer sales, dramatically less people visiting businesses and more time to do the proper things, we'd be getting it right. It comes down to driving effective results, which comes from setting expectations and delivering! If you don't have good follow up you're dead. And not just an alert in your CRM…really do it!

Many time, follow up is the job of a customer service department or a BDC. No matter what, whoever handles follow up represents the whole company. I've heard it many times that a salesperson will excuse a customer's opinion or experience because "customer service did the follow up, not me". News flash: you're deaf, dumb and blind if you believe that.

Yes, first impressions are lasting ones. But the last impressions may be all for many consumers today and that could severely impact your business. If you don't leverage software or other technology, have reminders and build a plan (and cushion) into your day every day, you are in for a rude awakening.

Think about these things:

  • Time effectiveness = results / time
  • The principal of stewardship is taking responsibility over what you have
  • Success is the progressive realization of a worthwhile dream or goal
  • Change is made when you:
    1. Decide to make business happen
    2. Make a commitment to follow up
    3. Put action into decision and commitment

Make follow up a critical part of your business plan and do it right. It's not someone else's responsibility, it's yours. Or else it's someone else's business! And have a purpose to succeed.

No purpose –> No goals        Know purpose –> Know goals

Best practices: Professional Insight, Powerful Results