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Posts with management tag.
Is It The Chicken Or The Egg? Nope. It’s The Customer!

A long time ago we lost focus. Then got it back. A while ago we lost focus, and got it back. A short bit ago we lost focus. Somehow it came back together. Ah, the joys of the automotive industry. Factory, retail, supplier, service provider…all of us. It's about the customer, always has been, always will be. Why does the perpetual machine forget so easily?

In a world that where everyone expects to be right, as customers, it's amazing how far off base we are. This goes for how retail thinks about, talks about and, most of the time, treats customers. And unfortunately this is the way most dealers are treated as customers, too. Simply put we're in a world where commitment wins but when you look for support, it seems to have "left the building".

This is the case in today's world: consumer controlled content. Dealers wanting to move forward and their vendors standing in the way (many times backed by the factory/headquarters standing in their way). If you sell a car with rear seat entertainment and heated/cooled leather seats, you can't tell the customer "we're working on it, it'll be here soon" or "Oh, I'm sorry, that package can't get those options. Did I tell you it came with those?". So why is that what happens and, more often than not, is accepted by 20,000 dealerships from their vendors?

What may need to happen is a reevaluation of what is expected. What may need to happen is putting the customers (along with the chicken and egg) first. What may need to happen is more participation of online groups and communities rather than just a few speaking and providing a real value. Lately we're watched as the value has slipped, content to validate positions is more re-purposed than ever, pitches and and vendor tirades rule. Nobody can hear the egg break above the screaming.

Generally speaking, people don't want to be accountable. Are you a dealer or management? Beware of broken focus. Maintain your commitment to improve your business consistently online and offline. Remember that once a decision has been made, every decision is on purpose. We've (happily) watched dealers do this for the past two and a half years.

If you're selling, are you treating your business as an entrepreneur? Are you treating every customer as your next ticket or your last? Ask yourself: what's the most important part of my business? The walk, the drive/demo, the pencil, the close or the prospecting? If you didn't answer 'prospecting', and we're not counting walk ups, you've got to ask your self what you're doing.

Take time to take a step back and ask yourself why you're in business. If it's to excel, make it happen. If it's for a check, then you know what to do…hopefully.

Best Practices: Professional Insight, Powerful Results

It Doesn’t Matter How Much, You Can’t Afford Not Going All Out On The Web

With the end of the year quickly approaching and a focus on getting as many cars sold as possible, it''s also the only time you have to make sure your plan is right for your web presence in 2010.  We're talking about a plan.  If you don't have one, it's time do something that will really move the needle for you.

It's a bit of Branding 101, Internet 102, Process 201 (we'll say that since you've likely hired a more traditional "get them excited to do more of the same thing after the excitement of yelling at them wears off in 3 days" trainer although not in a while) and a number of other 'class' sounding names.  The long and short of it everything you're successful at will depend on your virtual existence.

So, when you decide to spend $X,XXX to $XX,XXX per month online, and stick with it for the long haul, start with:

WEBSITE: A thorough review of your websites via a true outside SEO review (we use @Grader at http://websitegrader.com), SEO keyword report from a third party (we use AutoFusion at http://www.autofusion.com) and a true review of best practices will have to open to change considering what most website companies offer.  If you're website is 6 years old, has 100-400 indexed pages, less than 100 inbound links and a page rank under 4, it's time to say hello to a more competent provider.

We're not going to list website vendors here this time.  Just start by knowing what you are paying for and (likely) not getting.  The most important part is how dynamic your site(s) and content are.  Yes, SEO is here to stay along with usability and design.

CRM/EMAIL MARKETING: While there has been a lot of focus on social media, email is still an effective tool for engagement.  That is as long as you make it relevant and compelling.  How do you do that?  Start really looking at who is in your database, not just deeming them as customers!  Without getting into the details here, start thinking about your message and what you would want act on instead of not thinking and leaving companies that know nothing about your business communicate for you.  Do yourself a huge favor and read what you're sending out before you simply spend money on someone to spread *&$! out there faster and more efficiently.

When you've got that done, we think that these represent some best-practice partners: VIN Solutions (http://www.vinsolutions.com), Dealer Socket (http://www.dealersocket.com)  and DealerUps (http://www.dealerups.com), which has been going though retooling since acquisition can really help you do your job more effectively with way less effort.

Using an email marketing company is important if you want to have more transparency and control (including scrubbing, deduping, targeting and more), remember to focus on content. Emma (http://www.myemma.com), Ratepoint (http://www.ratepoint.com) and Constant Contact (http://www.constantcontact.com) are leaders in their field in addition to the more auto-industry pervasive IMN (http://www.imakenews.com) in addition to surveys made easy by Survey Monkey (http://www.surveymonkey.com).  the investments made in the services is minimal compared to the results.  Again, your content must be timely, compelling and relevant or your just advertising and most people say 'no thanks' to that.

REPUTATION MANAGEMENT: What are other people reading before they ever talk to or visit you?  It's how a majority of people are deciding on where they spend their hard-earned money!  Will you spend $150 a night at a hotel with a 2-star ranking from guests?  Why spend $30,000 on a dealer that does?  Start by checking Yelp, DealerRater, Google and more.  Then set up Google, Twitter and other alerts to monitor your business' name for free is a great start.  Then there are services for a fee (in and out of the industry providers) from eXteres Auto (http://www.exteresauto.com) to Radian6 (http://www.radiansix.com) that know and understand online reputation and how to stay up on what's being said about you AND your competition.

SOCIAL MEDIA: It's all the buzz.  And for most dealers, It's another avenue to scream "BUY HERE". Start with trying to understand that it starts with social.  Think about how you're social.  If you're selling all the time, you're likely not effective.  And neither is selling all the time on networks.  Be different, unique, compelling (there it is again!) and someone that people want to talk with rather than ignore.  Here's a hint: if you get between 30 and 70% open rate on your emails but no clicks and/or your website visits crash two days later, and you're going to send the same kind of messages out via social media. there's one word for you: don't.

These are merely starting points and things to consider in your online branding.  One thing to keep in mind as well: when you do promote and advertise, make sure that your message is contiguous.  If you're a Toyota store and taking part in the Tent Event, everything you put on the web should be intertwined and you should have your store benefits and unique aspects promoted in addition to proper promotion.

If the above is already a stretch for your current resources and knowledge, get help.  There are dozens of consultants out there.  Don't hire an advertising agency to do this.  Don't take the word of your current providers.  Find out for yourself, ignore reps and figure out what you want from your money.

Get going, your competition already is or will be next.  And don't pay the Internet any more lip service about what you're going to do, start and do it so you can have the Internet paying you.

Best Practices: Professional Insight, Powerful Results

Why Hit The Panic Button When You Can Hit The Simple Button?

Can't you just hear it in the background when you try to explain the shift to digital/social marketing from traditional 'push' marketing to a business like, oh let's say, a car dealer? A chorus fills your head from 1978: "Aaahh Freak out!  Le Freak, C'est Chic, Freak out!". Scary enough, our sales volumes are near 1978 levels and we continue to advertise as if it were.

From forums on DrivingSales to articles on Advertising Age to the offices of medium- to large-sized dealer groups, there is still a debate. That's' mind boggling! Consumers are gobbling up media at alarming rates. Their chosen media, not advertising. Do you still believe it was the advertisers that killed the newspapers? It's much easier to accept than understand that people don't need to read yesterday's news that they already got online or on their cell phone the day before.

So, people do what people do when they just don't understand: freak out, panic, sweat, worry, bury their heads. Come on, take out the Simple button (thanks for the idea Staples!) and start working and communicating WITH everyone. If you don't understand SEO, social media, microsites, true CRM, integration and the whole list of items that aren't a print, radio or TV ad then simply ask our community. Stop being in love with your advertisements and start being in love with your customers!

Changing the way we generate traffic is not easy, but it is incredibly simple. What is usually missing from any effective digital strategy at dealers is (1) process, (2) stick-to-it-iveness, (3) oversight, (4) knowledge, (5) willingness and (6) a burning desire to succeed. Why wait when you can dominate? The wait mentality really gets my goat. You might as well sell you business if you're going to wait.

Last week while speaking at a NADA 20 Group, one dealer had less than 20% of their marketing budget in digital/online. His explanation? "Hasn't worked!". His process? Buying the same way he buys weekend spot or full-page ads. Folks, online is not a "stick-your-toe-in-the-water-and-see-if-it-feels-good" proposition. All of the transparency and accountability is there, no other media measures like online!!

Whether it's wanting to "own" page one of Google by partnering with a strong SEO company (especially if your website company thinks SEO is simply a typo of CEO), to sharing great content on Facebook or Twitter, effectively engaging service customers with a tool like Driverside, or doing effective CRM with a company like DealerSocket or VINSolutions, it's the same: if you don't know, ask.

If you don't have the best brand possible reflected online, over 60 percent open rates for your emails, positive onliine reputation, inventory that can be indexed by the search engines (you don't if it's framed-in on your website) and a community that communicates with you online, it's time to get your business in order before spending thousands and thousands of dollars every month because someone's convinced you that they can sell more cars for you (if they're that strong, hire them and get rid of your deadwood).

Polish up your Simple button and use it because you should be operating a profitable business and not a charity and blind contribution machine. In other words, make your business right before you continue to help make others right (and more profitable that yours)…

Best practices: Professional Insight, Powerful Results

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

Moving The Needle: From A Get Together To A Ground Swell

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

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

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

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

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

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

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

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

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

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

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

Best Practices: Professional Insight, Powerful Results

What Will You Focus On Tuesday After Clunkers Shuts Down? Start Inviting Your Customers In Again…

Imagine, if you can, that business becomes painfully slow. Sales, traffic, even service, is down anywhere from a little bit to 'oh-my-gosh-how-can-we-survive?' slow.  Then try really hard to imagine some gift-from-above program from an unannounced source drives a bunch of customers to your store for a few weeks.  Then…the program ends abruptly.  At the same time, consider that you expected the program to end at any time so you are not completely surprised by the news that the masked crusader and his money left town.

What will you do the next business day? How prepared you are, how well you communicate with prospects and customers alike, how creative you are and where you know your business comes from will dictate if Tuesday is satisfactorily busy or if it is just like another day before all the loads of Monopoly money arrived.

Most people we've heard from consider C.A.R.S. a blessing with all of the traffic and sales it generated, as well as a genuine pain in the butt.  Of course!  If you had the program to do for yourself, would you have done it any differently?  You absolutely would have.  So why are you going to be twiddling your thumbs come Tuesday?  What program you run is up to YOU, every day.

Now, that's not to say that you're going to be able to come up with $4,500 of "it'll get here someday" funds on nearly half of the deals you do next week or any other day.  However, it's entirely up to you how to drive people off of their scared little (and big) duffs and into your business.

It's not up to the factory, it's not up to the million-dollar advertisements, it's not up to the region or your 20-group and gosh-forbid it's definitely not up to the government.  Don't you want them out of your business…not in it?  What happens in your business, positive or negative, is up to you, your brand, your staff, your effort and your planning.

So when the here today-gone tomorrow spigot of funds is finally turned off by someone making a lot more than you with nicer benefits than you have and a pension you can't even dream about, get back into the habit of making your business happen.  Less business?  Get a bigger piece of a smaller pie!

Can't figure out how to make it work?  Ask someone for help or at least tell the receptionist that you're not "away from your desk all day" and that you'll start taking meetings again.  Business doesn't happen from thin air, it takes a lot of work and some good consistency.  And sometimes it takes outside ideas folks, as painful as that might sound to some 20-year plus veterans.

Besides, whether you call it natural selection, survival of the fittest or one of a myriad of other expressions that refer to 'business better then usual', it is always best when you're the master of your domain rather than waiting for the next shot in the arm.

Best practices: Professional Insight, Powerful Results

The First Half Is Done…Are You On Track Or Betting On The Second?

It is always a reality check (especially in sales) to review the mid-year numbers against goals. Even the most sophisticated of salespeople take the opportunity to evaluate, adjust, reassess, communicate and plan. Many others blame, accuse, defend, deflect and compromise, but rarely do what it takes: listen and learn. It's also the time of the year when middle-management does the infamous 'dance' (you know what I mean if you are in middle-management or deal with them).

Consistency is the key, learning is the foundation, staying up to date and applying methods are the tools, guidance is the framework (read: not management), teamwork is the conduit, commitment is the path and success is the goal. For those that truly stayed on the road to their goals, using everything just mentioned, the first half was likely less of a mystery than for everyone else. Maybe you even are ahead of the game!

Success never comes overnight, rarely is seen in the company of also-rans, doesn't hide from the real work and tends to stay around a great circle of influence (read: not the water cooler). If the first half of 2009 wasn't good for you, it's time to see the opportunities that exist for change, improvement, growth and dedication. All of us fail, which is a huge part of success. But if you continue to fail perpetually, it is time for more than self-talk and a spa day!

The second half of your year is in your control, up to you and completely dependent on what you believe will happen…plus a whole lot of action on your part! One of the benefits I continue to enjoy is the input from some of the best minds that anyone would want around them. People that all believe the second half is their half and are willing to do what it takes to make that happen.

Having missed my 'numbers' in the past, having been on 'losing' teams, having decided not to give it that little 'extra' effort and knowing from personal experience both how far and how close I've been to having that great half, it would be in your best interest to do whatever it takes to be part of the group of people that finish 2009 with a smile on their face.

So are you on track? Are you on the right track? If you just had to look down, find someone that will help you to win. If you're headed to your goals and dreams with nothing stopping you, that applause you hear is for you…rip up the second half!

Best practices: Professional Insight, Powerful 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

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

If Opposites Attract, Why Didn’t I Sell 30 Cars Last Month?

Let's face it, if the simple fact was that opposites attract, every dealership would sell out of cars…every month. Actually, that's not quite true. Opposites do attract, but we're talking about much more serious issues than simply attraction. Why in the world would someone want to buy from you?

First, there's the typical stuff: Are you prepared? Do you have the same opening and closing process that you use every day? Do you know/walk your inventory daily? Do you know your ad cars? Are you qualifying your customer correctly?

Now, and possibly more important, there's the newer stuff: Do you know your website? Do you know your competition's? How many leads can you handle correctly (and not just call or email once)? How often do you network (and not just online)? How is your follow up, really? Does management have your back or are you just off the back?

When you look at things realistically, you've never sold a car in your life. Not trying for semantics here, just a honest look under the hood. Ever had a green pea outsell you? Of course! Today it's much more about everything but the sale. Don't pull the wool over your own eyes.

When recommending new technology, companies or services to dealer clients, I continue to hear the same excuse as to why they won't use/buy/check out something that will be a complete benefit: "my people are just here to sell!" And there's the problem folks (or at least the biggest after credit and flooring/financing issues).

The more you act like you did when the gravy poured, the more you'll struggle. The more you treat customers like suckers, the more your showroom will chirp with the sound of crickets. However, the more you do things the you've ignored, the more you understand how to use technology, the more you keep up-to-date and trained, the more you listen to your prospects and clients, the more success you will experience.

The world's most expensive, luxurious, technological, streamlined, incredibly fast vehicle can't do crap if it's out of gas. The most beautiful facility with gleaming service bays, hi-tech lounge, ready-to-go espresso machine and great looking receptionist can't generate a dime without the right resources.

By the same token, quit expecting better results without doing the things that have to be done: having the right associates, educating them, using technology correctly, having the best vendors and support and 'filling up the tank to full'.

Start attracting business and maintaining it instead of…the opposite.

Best Practices: Professional Insight, Power Results