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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
A Day With The Marketers…Automotive News Style

Today was a day filled with marketing statistics, reporting, ideas, videos, commercials, banter, conjecture and more. Ultimately what Automotive News set out to achieve again this year was, I my opinion, point the industry/crowd/listeners to what is and will be happening in the landscape of media and marketing. Did it happen?

Joel Ewanick from Hyundai detailed a number of aspects of the Hyundai Assurance program that has gained the brand major accolades in addition to being mimicked by over 100 companies. His retelling of the time line (just over 30 days) that they produced the campaign in along with the supporting aspects of such a program was impressive. The presentation lacked a 'forward' element, which I'm sure HMA already has done, but that's not likely what he was asked to speak about.

Scion's Jack Hollis struck what I thought was the closest blow to the nail from an engagement standpoint regarding experiential marketing, lifestyle and connection with customers. "We want community" is as close to where a marketer needs to be today! Great visuals were backed by his actual participation in events (and no, not just in a room to watch usability studies through a two-way mirror).

Judy Wheeler form Chrysler (replacement for the absent Steven Landry) had a good presentation that understandably had no major 'forward' view. After having their marketing budget slashed by 50% last week by the White House and Auto Task Force, there was not much to address besides the 'impending' marriage with Fiat. She did bring some ads that are in the hopper which centered around what Chrysler and Jeep brand "build".

John Maloney of Volvo hit on some solid points around their shift from the traditional 'national' unveiling and detailed a number of great points about the XC60's recent 'new' launch campaign. It sounds like Volvo will use the money-saving, impact increasing method again in the near future. He also focused on the brand's image with the new 'City Safety' accident avoidance system.

John Mendel from Honda spoke the words that you rarely hear today: brand, value, consistency. He repeated that call time and again throughout his session which included a throw-back to a nearly 50-year-old Honda motorcycle commercial! Flipping from decade to decade in content and conversation, Mr. Mendel was able to address the solid focus at Honda (along with their agency RPA) that should enable them to deliver more 'safe' marketing. Hopefully they do get a little more edgy than their Facebook and Twitter involvement…

And then there was Mike Sullivan, a.k.a. "L.A. Car Guy", bringing color and comedy to the stage for a retailer's perspective. He got into hard hitting numbers, results, marketing mix, Internet effect and other, more typical in better financial times, tangibles like charity, community involvement and other brand building mantras. Mr. Sullivan and his staff are more than dedicated to their marketing goals and seem poised to achieve success through their different initiatives. They still may have some room to grow on integrated media and retention, but they are clearly looking for more ways to deliver on their Interactive brand.

The closing panel with all the speakers answering questions got a little better, especially around the newspaper/print aspect. While Chrysler's recent direction was more heavily tilted toward print, the overwhelming opinion was a shift away from the paper and to the web. By the same token, these marketers have not hit pay dirt as many marketing efforts still leave behind the largest potential as well as target: the consumer. Content consumption has changed and even content creation has had a noticeable shift. Out industry still lacks the 'teeth' it needs, especially at retail, to really engage the consumer to become part of their lives, especially away from their vehicles.

Overall, it was a great time around well over a thousand ad agency, automotive marketing, manufacturers and service provider folks. Wonder what it'll be like next year…

Best Practices: Professional Insight, Powerful Results

May 20, 2009 by Gary May 1
What Are You Waiting For? It’s Already Been Here And The Train Left The Station…

Many people that are concerned in all types of businesses talk the same talk today: waiting. Some have been waiting for a new administration, some for a car czar, some for banks to loosen up, some for 'the bottom' and some just for the fun of waiting.

When you're in business, you can't wait especially when it costs you money. In the car business, it's been about waiting for people 'to really go online' or for the 'next up', or even the holy grails of 'cheap gas', 'more hybrids' or 'better advertising'. You can wait as long as it takes you and your business to turn the lights off.

Or you can become the car czar, the new administration in your dealership, the VP of Internet sales or even the authority for your entire area. Why do reporters cover auto stories IN FRONT of the "fill in the brand" dealership WITHOUT interviewing staff? The point is you can't wait, you have to act!

When I was at CarsDirect.com nine years ago, I heard a lot of 'nobody will buy a car online!'. Now my memory is likely not spot on, but I believe sales hit over 12,000 units that year. Anyway, you can keep waiting for people to hit your showroom after visiting your (mostly) average websites or stop waiting, start changing and keep changing.

Waiting does not typically evolve into a leadership position, even if it does work in your benefit every now and then. Now there is inherent risk in not waiting and taking a position on the front lines. But now is the best time to make the move.

It sounds like NADA dealership attendance (via pre-registrations) is down around half, depending who you talk to. That means A LOT of people will save one, two, maybe three thousand dollars over the weekend. It will likely cost them tens if not hundreds of thousands of dollars this year. What are you waiting for? I'll see whoever is going there to share ideas, meet vendors and start making more decisions that will grow business.

Oh, I'll be Twittering from NADA (@imacsweb on Twitter)

Best practices: Professional Insight, Powerful Results

January 21, 2009 by Gary May 0
Week At IM@CS: Chats With The Industry

There are some great companies out there and this section of our blog is intended to both look at best practices and provide a more level playing field for those that don't have the marketing dollars or field representation. Sometimes, it's just that the vendor is newer to the space and should get a helping hand.

Both of the companies listed here are neither new or very small, but they do have those qualities. Both are headed by experienced leaders and provide a great service.

1Micro: Integration means different things to different people. Doing a great job with prospects before, during and after their dealership experience requires skill, knowledge and a solid level of integration. 1Micro provides an impressive system at any level, including key systems and CRM. Back at the Digital Dealer conference in April '08 I had the chance to get a thorough introduction by Kris Terp and I've been impressed since. Check them out at http://www.1micro.com

Jazel: Websites are websites until they have strong SEO, are dynamic and allow dealers with different skill levels to admin them. So Steve Hastert and his team at Jazel provide more than just a website, which is what more and more dealers need today. They also have an ad agency background so they know how to drive traffic, create eye-candy and also keep things simple if you prefer that. Oh, they do lead management as well, so you may even be able to simplify things if you like http://www.jazelauto.com

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 3, 2009 by Gary May 0
Week At IM@CS: Chats With The Industry

With the year coming to a close, it was time for a bigger perspective break from our traditional focus on smaller companies. This is a look back a the bigger conduits that may not always have had the spotlight, considering the focus on the OEMs, economy and other reasons. IM@CS would like to give credit to the following:

HomeNet: If Jesse Biter and the team at HomeNet don't continue to impress, you're not looking. With everything else they're doing to make inventory 'that much better', they added their IOL community to the list of accomplishments. Then they polished off the year by getting Neal Gann on board…great work Jesse and the folks at HomeNet! http://www.homenetinc.com

DealerSocket: We continue to be impressed by their product, innovation and support. The industry is focussed on CRM now, but there has to be more than strong intent to help dealers succeed or put out a great campaign to solicit signups. Some of the smallest and largest dealers in the country rely on Jonathan Ord's company daily and they seem to be sold on the whole package and not an image, great stuff! http://www.dealersocket.com

Automotive Digest: Outside of the fact that their content has been finding its way into the inbox here for a long time, their content is relevant, compelling, easy to read and timely. Chuck Parker and the team of contributors and editors seem to focus on what dealers need most, especially in the online world. There a number of titles to satisfy nearly everyone on your holiday list!! Dealer Digest Daily is the IM@CS favorite. http://www.automotivedigest.com

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

December 22, 2008 by Gary May 0
Don’t Worry About 2009…Unless You Have To

If there has ever been a time to realize the benefits of creating and executing on new strategies, it is the coming year. For those who went digital, got behind online completely, build their brand and reputation where the public actually spends their time, engaged their clientele via effective software and database activities, you will already have a great look into how your 2009 will sort out. Keep doing what you're doing and don't worry.

Now, if you haven't spent time assessing, looking at, determining and then executing your Interactive strategy, you have one decision with two options. And if you do opt for the 'stay in business' route, be prepared for a significant amount of technology this year, even simply from an integration standpoint. Things on the software, video, mobile and other aspects of marketing are going to accelerate.

Over the weekend, a number of conversations I was around included statements about newspapers, relevancy and readership, none of them positive. Separately, two people will be buying vehicles by March, their impressions already biased by sites they like. Others talked about past experiences being indicative of the future. Many people talked about making brand decisions based on the automotive industry coverage in the media, so I straightened those out at least. But overwhelmingly, people are using the web and not thinking about stepping foot in a dealership that is not in their specific scope of consideration.

Everything points to us having to do a better job attracting and connecting to our customer base online. It's winter, when is the last time you've had a banner ad on the local online traffic reports or weather updates on your local network news' website? Do you have links from local businesses' websites that have purchased vehicles from you? Even though we've focused a lot of attention on this lately: how many customers are providing online testimonials for you? (read: not many! Need ideas to get your customers to do that? here's one: ask them).

Your 2009 results will be based on what you are doing today and have been doing for the past few months. Those leads and customers are going to share their experience with others. The brand impressions people received months ago will undoubtedly affect who walks in your door tomorrow. There is no denying that your 2009 will be build on your ability to create a more significant presence in the areas where people consume media and data. Who's blogging, commenting and Twittering for you?

Challenge yourself to layout a plan for the first quarter that is web-based, create an environment of support throughout your entire store and get everyone to assist in deploying your new brand strategy. Get creative, become savvier, see yourself doing things that are not comfortable but will deliver results and ultimately take back ownership of your future.

There are a number of events that are dedicated to the Internet side of the business at the beginning of 2009. Commit to making those a part of your strategy and don't back out. Go the extra mile to figure out what you are going to do instead of being a victim of current circumstances.

Leave the worrying to others that don't take the time to invest in their future. Be confident in your direction and commitments. Spend your time and energy on things that deliver results rather than doubt. Thank you for reading this, now do something else online to further your business!

Best practices: Professional Insight, Powerful Results

December 22, 2008 by Gary May 0
Live By Process or Die By Process: A Message To Management

Dealers/General Managers and General Sales Managers, this is where the accountability starts: You and Process. I've not yet entered a store where the Internet business excelled despite management (ok, for more than one month). Heading into 2009, you must understand all of the fundamentals, be able to speak to the critical points with ease, know your vendors along with holding them accountable and stay up on what's happening in your store as well as outside.

The opportunity to hide behind anything that keeps you from being engaged with your online identity, understanding what your (Internet) sales staff is doing, knowing how your leads are being handled and taking part in how you message all of your customers has to end. In order to lead, be able to influence your staff and hold meaningful conversations with your sales team you must:

    1. Embrace the web and your presence (likely for the same reasons you use the Internet)
    2. Immerse yourself in learning, reading and understanding technology and the tools
    3. Have complete transparency (logs, reports, analytics, vendor updates/meetings)
    4. Validate the use and effectiveness of the web in everything you do

Stores are managed top down, period. People have faith when their leadership does the things that matter, support and recognize them.  A few questions to ask yourselves:

   Do I:
    1. have a clearly understood web plan, marketing platform and the appropriate staff?
    2. read magazines, e-newsletters and industry information that informs and validates the efforts?
    3. take time to sit down with staff that handles my Internet business?
    4. clearly define goals that make sense and hold people accountable?
    5. support online efforts by staying in touch with both my staff and customers?
    6. know at all times what my online brand, messages and staff are doing to promote completely?

It is not enough to put up a website, buy leads, plug in a CRM and wait for customer to run in. Think like a customer, act like a customer, ask like a customer, shop yourself like a customer and task your staff like a customer. Then you must make sure that you have a viable process and support it. Not half way. Not three quarters of the way. All the way.

Failure is not an option when you understand, plan and execute. Process is a great thing that breeds results. Process also shows areas of failure, possible improvement and validates all of your efforts. Remember, you can have the latest and greatest of everything but it won't matter if you can't back it up.

Make it your goal to set all of these things in motion now so your 2009 is something to talk about. More customers will enter your store online now than will ever physically walk into your dealership. Make sure you are 100% confident that those people will see and experience exactly what you want them to. Then do it over and over again…oh, and change your website a bit regularly just in case they actually spend some time on it…

Best practices: Professional Insight, Powerful Results

December 17, 2008 by Gary May 0