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Volume, Fiasco, Titles, Consolidation, Arrogance and Big Decisions

We are at the next crossroads, for now let’s call it the end of 2015 and the beginning of a new year. There’s more road crossing later. Wow, the past year had a lot of ups (and ups) and downs. And in the end, more cars were sold with fewer showroom visits and more hours spent online. If you agree with that statement, you can stop reading now…

First, let’s hit volume. At the time of posting this, we’re on pace to possibly topple record sales in automotive, if not get extremely close to doing so. There are some surprise winners and some more surprise losers. All in all, the increase was predicted and, with some exceptions, most everyone will be keeping their lofty jobs at our glorified manufacturers (why do most people on automotive blog spell that darn word -and many others- wrong?).

Fiasco. Well, we didn’t see that BIG one coming, huh? It’s too early to say what will come of the Volkswagen TDI (as well as Audi and Porsche) debacle, so it’s suffice to say that the “ouch” outcome is due to come in 2016. The key is that people will still buy their vehicles, it’s a combination of consumer perception and how the retailers handle the opportunities.

Titles, the least favorite of ours being “millennials”, do nothing other than distract car dealers, enable marketing companies (and some barely-average people to become experts in the field) to take advantage of ploys and create enough hysteria to take people’s attention off of what matters: taking care of the customer, stupid.

Consolidation, especially the big one in 2015, serves the car dealer, right?!?!  Holy crap piles of nothing Batman, more dealers on a single-serving platform!! That’s got to be serving the shareholder more than the client, but don’t tell anyone Boy Wonder! Sure, you can see the episode with Adam West and Burt Ward roll out in your mind now, with the “BOOM”, “CRACK” and “UGG” blasts behind every customer service call now…  It’s a great idea when you want your business to be on cruise control, unless you take a good look at the while picture and realize that we’re not well-served until a point that all of the technology is integrated and the data is utilized across enterprises. Until then, it’s called dropping the amount of checks you issue and nothing else. Yeah, and the website will be fully responsive in 2016 (bwahahahaha!!!)

Arrogance showed its beautiful face again in ways we hadn’t since 2004-2007, when dealers were nearly printing money. Near-record profits with slightly more optimized operations after the shit hit the fan in 2008 and 2009 showed our dealer body to some very-needed net profits this year. Along with that came the thoughts that showed as an ongoing lack of understanding what the public wants with an automotive experience, still underutilized digital marketing (yes, please hand your capabilities to the OEM vendor. That’s smart) and a continued focus on increasing spends in unmeasured media or supporting digital vendors that should have died five plus years ago (you know who you are).

All that’s left is the big decision: are you going to wait longer or finally commit the right resources and people power to the proper partners, building your results, true bottom line efficiencies and leading in your market? More dealers have decided, or are deciding right now, to follow (i.e. relent to OEM control of their digital marketing) the herd to irrelevance. It can’t be said more easily or with more conviction, if you’re going to be led by the same company that works with everyone else in your market, or trust the advisor that works with your competitor, you lose. Done properly, most dealers can increase their digital spends at half of what they drop in traditional, increase their sales and service, put the rest into resources for their staff (including adding staff) and come out thousands of dollars ahead each month, net. They don’t because…….because…..because…they didn’t do it that way before.

For those who do it right, 2016 already started over a month ago. If you need to focus on the last 25 days of the year more than anything else, how well did you plan for and execute during 2015?  Or maybe, you simply have the wrong partner(s) in the first place…

 

Best Practices: Professional Insight, Powerful Results

December 6, 2015 by Gary May 0
A Blue/Black Dress. A White/Gold Dress. A Car Sold? Whatever…

Expose your business. Better yet, expose yourself!!

 

It’s not about who bares it all. No, the game is about who gets the exposure at the right time. And most of the time, we perform poorly.

 

Marketers have been talking for decades about exposure, impressions, brand recall and market share. And while nobody (at least here) needs to be convinced that exposure should be primarily online, we’ve once again been shown that the conversation shouldn’t be about advertising.  Yes folks, exposure leads to conversation. All kinds of exposure… 😉

 

So what does the color of a dress have to do with car sales? Both a whole lot, and absolutely nothing. Within a short while of the “dress” explosion last week, automotive b-to-b social media was abuzz with puns,  memes and conversations.  Some of those actually made it to the retail channel. No OEM or retailer had an “Oreo” moment due to what color a dress was. And it was all an experiment anyway.

 

Marketers are being shown up, at an alarming rate, by the media of individuals. And we are still concerned with the “right” newspaper ad for the weekend? Millions of people joined an online conversation about screen resolution and perception, yet nobody sold a car from it.

 

And there could have been some massive fun, too. “Buy a new (fill in car brand) and receive a (fill in department store) gift certificate toward any color dress you want” could have shown up on websites, email blasts and social media within minutes. No, it was all about the weekend ad, which gorilla looks good on the roof, or what new incentives will be, or pouring over month-end reports, instead of selling more cars through created connections.

 

What’s more disarming than making someone laugh? What’s more unexpected than having someone think they just had the least “automotive” experience they’ve ever had?

 

Exactly how to make a popular culture phenomenon part of your marketing is not the point here, realizing that you have the opportunity to capitalize on more of these types of occurrences is.  Ad agencies and media companies aren’t the ones who do this on the fly. We are.

 

Salespeople (and managers) are so focused on the “script”, the “road to the sale”, the “processes” and the such, we take so much of the human element out of making car buying fun.. 2009 was the first time we had a client sell a car specifically (and nearly solely) through social media. Stop thinking about what to say and simply start the conversation. Even if you don’t have a dress on…

March 2, 2015 by Gary May 0
You Didn’t Care About The Cheese In the First Place, So Move On

Many today rant about change and how someone moved their cheese. The mindset of those who expect a static retail world show many who effuse about “the Good Old Days” while using mobile apps for airline tickets, ESPN Mobile for football scores and drive times delivered to their home desktops prior to leaving for the office.

The paradigm hasn’t shifted as much as it’s already taken the dirt nap.  If you’re not ready for consumer-based everything, it’s time to reassess where you fit into automotive retail.

As an industry, we fall grandiosely behind what consumers expect. Recently a friend of mine’s mother was shopping for a vehicle.  They caught an ad (yes, a newspaper one) and showed up at the dealer to find out that the stacked rebate offer was sold only the day before.  After reprimanding that they should have never looked at a newspaper anything, the shopper retooled and headed out via web-based information (the new 2013 vehicle was purchased yesterday, from an honest dealership).

Since the very-public FTC crack down (and resulting settlements) on dealerships just a couple months ago, it is easy to see that the cheese moving has nothing to do with our comfort zone, consumerism or reality. By and large, dealerships will continue to do as done: Get the customer in. foursquare them, throw the keys on the roof and keep them caged for a number of hours, lest they escape when the salesperson leaves for the “desk”.

A few weeks ago, at the Innovative Dealer Summit in Denver, my presentation included a statement: “given the chance, 75% of dealerships would turn off their websites tomorrow”. Frankly speaking, that’s likely not too far off from the truth. This is based on entering and speaking with hundreds of dealerships a year. What can be done to alleviate the burden from those that don’t want it?

Automotive retail must move at the speed of the consumer, not pull the wool over their eyes even faster!  The longer we live in year-1995 speakers and training, the faster customers will leave and push consumer-direct sales and other alternatives. Remember folks, 1994 was the year that Ford initially launched FordDirect.com!

The tools, data (for some- to most-part), capabilities and technology are available to us today. Let’s not bury the positive side of retail with 6-hour visits, bait-and-switch tactics, “we’re always here” mentality and less-than-deserved experiences because we are still waiting for the “up bus”.

If you aren’t ready for the cheese to be moved (newsflash: it already did), move on. Let someone else fill your position rather than having your sales staff ask a potential customer “would you buy it for fourteen-five?” when you don’t intend to come off of seventeen and back that up with an awkward T.O. only to find the customer gone in a minute! Consumers expect more, and damn it so do you, so why do it?

Maybe it’s time to forget the cheese and move onto whine… (Oops, meant wine).

 

Best Practices: Professional Insight, Powerful Results

April 29, 2014 by Gary May 0
The Year 2012 In Review? (What’s An Automotive Industry Nutshell?)

(Warning, 1000 words below!)

OK,
who's got their 2013 game face on? Nobody? Good, let's make things difficult!!!
2012 was one heck of a year: consumer demand is still up and growing for cars
(although demand still outstrips what sold), mobile use is skyrocketing (albeit
not remotely matched by dealers providing strong solutions), digital demand is
still growing at a breakneck pace (while use of traditional media by
dealerships is up), vehicle technology, especially in-car, is amazing and
overwhelming (while we still can't truly get a MPG sticker correct without driving like we're dying) and quality
is better than even with IQS improving (hand-in-hand with more
"media" coverage of massive recalls). Yup, 2012 was quite the year…

So ask
a car dealership what they're doing and about 16,500 answers will flutter
around "more _________ and less ________ while focusing on our key
strengths in _____________". And that, by the way, will be the answer
around January 5-15th because, unlike other industries that revolve around
retail, we seem to be focused on a date non later than January 5 to close the
year. Newsflash: 2012 is done. Make more calls, send more emails, offer more
dealer cash/rebates/incentives/consumer cash/financing discounts and leases and
you're still not going to sell more. Hello?!?! The "Oh, we pulled 10 more
from our competitor" crap doesn't fly. You'll sell what was essentially
already in the hopper and be happy with it.

Over the last twelve months we saw
highs and lows in the automotive industry, mostly driven by International
factors like economy, emerging markets, regulation, partnership and bankruptcy.
As a matter of fact, we are more tied than ever to what happens in Europe and
Asia, even considering how insular as we tend to be. Whether or not we get to
see a new Cadillac in the States depends more on what happens in Germany than
ever while BMW's success likely depends on what happens in South Carolina. 2012
saw the continued demise of storied as well as soft brands everywhere.

In the passing of this last year, it's
important to reflect on how we actually invited people into showrooms while not
making it any more enjoyable (except for the new showrooms which mostly made
the factory happy while getting better looking floor tiles and slightly better
tasting coffee to customers and some of those neat kids' play rooms we desperately needed). We
switched website CMSs, dealership CRMs, DMSs, SMSs and POPs but did satisfaction with
dealerships actually go up as much as 2012 IQS? Jaguar is still tops
(well, 2nd behind Lexus for 2012 models) on the list and they can't seem to
sell the damn cats…

What did 2012 deliver to your business?
If you've not asked your customers more than your factory reps, your
salespeople and your accountant, you will miss the boat by a larger gap in
2013. Yes, you will continue to sell cars next year and maybe, fortunately more
again, but where does that stop based on solely looking back or not at all?

Where your concentration needs to be,
right now, is around March 2013 because your next 6-8 weeks are already figured
out for the most part. No matter how many "cycles" we have, after 100
years of automobile sales most think that there is some magic to the last few
weeks of the year. Bullhooey.

If you want to succeed starting next
Tuesday, there is no other way to do it than be steadfast in every aspect of
your staff, processes, facility and follow through. Your greatest efforts need
to be put into place around the touch points (hint: it's not the cars!). Those
are showroom (real and virtual) and people. Nothing else matters without those. We are asked regularly how to "jumpstart" sales to the
effect that many talk about in the industry. If you've not been bombarded by
spam marketing and videos, it usually sounds like "100 to 500 cars
overnight with our processes" and "our sales events will have people
driving in from everywhere" and don't forget "our websites will
optimize so well (or drive leads so easily), no other dealer will be able to
touch your numbers, you'll dominate and just have to deliver cars". Rat
dung!

Get the best assets in your business
today that understand how everyday people use technology and expect to be
communicated with. If that means more green peas, then do it! Training?!?!
Tearing down your salespeople to build them back up means you have the wrong
people and wrong processes! It's not "that Internet thing" any more
than your cars are "those things that have engines and tires". It's
time to grow up and look forward. If you 15-pounder 15% of your customers, expect 50%+ of
your reviews to scream you suck.

If you want to look at things in a
nutshell, read another whitepaper about how great a solution is (6- to
12-months after it's relevant while you signed up to get marketed like mad by the
same company) and look backward. Our industry is depending on people who look
forward with only what's needed about past performance as indicators, nothing
else. Improve incrementally prior to making the huge, sweeping changes like we
hear about so much and maybe, just maybe, you'll see about 3-4 months that the
big stuff is not so big after all because you were able to move the needle
consistently. Overnight success is a short-term facade over impending disaster.
Count on it.

2013 can be great for many, even
amongst the raising concerns about economic and other pressures. The best
always raise to the occasion, it's just that it needs to be done in newer ways
more consistently. And remember to make changes with anything that you do by
benchmarking and recording first because so many will pull the wool over your
eyes and scream "we did it for you!". We see it every day. There are
some great dealership partners out there. Remember that opportunity is missed
by most because it comes dressed in overalls. It's work and most of the time
it's slow.

So relish in the success you've had in
2012, you deserve it! At the same time try not to look back all that much. It
will take longer to catch up than you realize. The automotive world moves at
the speed of retail. That is the only truth. So stop slowing yourself down more
than needed.

Much success in 2012 and thanks for
continuing to read…

 

Best Practices: Professional
Insight, Powerful Results

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December 29, 2012 by Gary May 0
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

December 7, 2010 by Gary May 7
LA Auto Show Day 1…In A Nutshell

Well that was a blur….and a pain in the feet. It's always that way after sitting in the office, or the car, or client's dealerships and OEM offices. But to stand for all but 90 minutes in a day is tough. Anyway, the day was full to say the least. After breakfast (Thanks Motor Press Guild!), it was time to listen to Stefan Jacoby, Volvo's new CEO. Hmmm. Insightful but the conversation around the table with High Gear Media at breakfast was more than a bit higher on the engagement meter.

Then it was time for the Volt road trip replay, oops, the GM press conference. Aside from the obviously dirty car and great impact that their trip from Detroit to LA provided, the car part of it didn't have the normal sizzle. The Camaro convertible was nice…

IMG_20101117_092044

VW's booth was packed. And that's not only becase of the food spread after their conference. Lots about the EOS convertible and Heidi Klum, not enough about the Golf Blue-e-motion or next-gen Passat. Not earth-shattering, but better than GM. Could have been more "we're taking over the industry by 2017".

IMG_20101118_142653

Jaguar (ok, and Land Rover too), which has surprised my since changing ownership, seems to be getting their swagger back (pun intended). The concept and approved-production cars seem to be edgier and willing to take more risk than in the past 10 years. The stand didn't seem to really work for the media trying to see but it was clear that they're gaining on the buzz factor.

Mercedes may have won the "our press event can kick your press event's butt" based on the Ducati and cupcake tie in, but so did the car stuff. It was the second bland presentation of the day (both German) but the CLS63 is just simply rocking and the B Class did get a lot of nods. They'll continue to sell cars and compete for the luxury sales title with Lexus and BMW. It seems to be about little notches in the bedpost these days….

Porsche was about the Cayman R. And food. And wine. The historical video was cool and the Cayman definitely hits on way higher marks than the past version. They didn't disappoint this year and their booth (room) always seems to be just beyond pristine. So someone should tell their people to turn down the stuffed-shirt feeling and have some fun. Isn't that what Porsche is about anyway?! (that and a lot of dead presidents).

IMG_20101117_122002

Sorry, Nissan was accidentally missed but onto Fiat. After taking part in Mini and Smart press conferences and being around the Audi A1 marketing machine, it's not surprising to see a small car. I hope the 500 can make the brand, dealers and customers happy. I'm still reserving comment but my temperature is going to have to go up slightly…soon.

IMG_20101117_122313

Subaru is just killing it in sales and they don't need much in the way of redesigning their product line. So that's when it was lunch.

Ford continues to impress. Got to hear/see about a few of the buzz models and spent 15 minutes chatting with @ScottMonty. The upcoming Focus ST definitely got my attention on the spec's alone. Then there's chatter about an electric Focus. What really was fun? Slot car racing and a new simulator (they've had some over the past few years at LA Auto Show, SEMA, NADA, etc). Still bummed that I missed them when they were penny stock just a few years ago…

IMG_20101118_125903

Honda seems to be going steadily, but slowly, down the path of alternatives. You can count on that. Honda's Fit EV keeps the drum beating but their gas cars are so efficient, where is everything going? The cars still need more life (but the last two seem to at least be designed by someone with a pulse) but their engineering is so sound, you just have to listen for 40 minutes. (Actually I started a conversation with Brian Glickman from Edmunds so my story should be changed!). No oohs or aaahs but some nodding heads at the close.

Skipped Dodge and Lotus for compelling conversations and walking around before the early departure this afternoon.

A few things are clear:

  • Budgets are coming back, spurred by sales and profits. The booths are bigger again, there's espresso machines and music blaring, heck all companies had their lights on the whole time! The buzz is back and it feels good. As one of my friends said today, even the carpet padding is a couple grades up from the last couple years and that's a great sign!
  • Giveaways are cool, but if it's less than two inches by two inches or you wouldn't want/keep it yourself, send it back to the ad agency or widget maker.And make sure everyone there gets your media kits…you never know how many of the non-media people acutally do stuff for lots of dealerships!
  • IMPORTANT: Now get the excitement from the show flloor to the dealers, back it up with better education than they've been receiving and we'll really have something to celebrate. Retail sells cars. Not the OEMs.

That's my story and I'm…sticking to it! Maybe another round tomorrow. Press conferences are Hyundai, Audi, Infiniti, Mitsubishi, Chrysler, Wheego, Morgan and Perana.

Best Practices: Professional Insight, Powerful Results

November 17, 2010 by Gary May 0
When The River Runs Dry…Pave It!

Retrench! Dig in! Block and tackle! Just wait! Awww bullshit…. More and more today it seems that the chasm between the "doers" and those choosing "planned obsolescence" is growing. You hear a lot of good stories out in the field about who's doing what and which dealers are killing it. Then the numbers come in. Reality check.

So why is it that there are dealers growing market share (the minority) while there are those than seem to want to accept and participate in a challenged market (majority)? With everything facing dealers today, and it's a bleepstorm, it seems that the path of least resistance is the one leading the wrong way. Resources, blogs, data, events/conferences, outside assistance and more, are readily available. And to the point that they're so underused, they're essentially abused.

Have you hit the end of your rope? Down-sized to the point that your store is no-sized? Pushed the factory guy back on allocation to the point that they're giving you 365-day terms just to take cars? Listening to your 20 Group buddies' stories of success and smiling while shrinking in the back of the room? OK, so stop it. If the river is dry…why not pave it? Heck, make it a raceway!

There are no silver bullets but there are a number of effective shortcuts, that get you to where you want to be. No matter what your newspaper sales rep or the online inventory advertising company reps tell you, that's not where the customers are. Sure, they go there after they end up feeling like they can't get a straight deal, attention and common courtesy starting with your website or showroom. Sorry….

Yep, the proverbial question: how do I pave the dry river?

Lead responses: effective, in the shortest possible time. with validation, options and the most engagement that drive the strongest replies, appointments, profit anad retention.

Events: inexpensive, regular, value-based, informative, community-engaging, need-supporting, fund-raising, cooperative and non-self-serving.

Social media: Compelling, revealing, engaging, fun, relevant, contextual, intuitive, brand-building and even a bit giveaway-ish for the "what's in it for me?".

You see the river can be paved fastest when it's filled by things that consumers are looking for. What doesn't pave the rider, or fill your showroom, or get the phone ringing is what's been used for the longest time: lost leaders, false advertising, packing (especially recently), full-page ads, large traditional media spends, bait-and-switch and everything else that you know is despised by consumers (and us really).

Here's a wake up call: no matter how much the river fills with water soon (if you're waiting) or how nicely you can pave it, do things differently. "Old guard" stuff, as nostalgic as it is, is about as good for the auto industry as tainted meat is for McDonald's, faulty engines for Boeing and corrupt processors for Dell. So stop accepting, if not endorsing, it.

Paving the dry river bed takes strategy, commitment, insight and foresight, transparency and a willingness to change the size, shape and location of the sandbox. What do you have to lose? Not as much as you have to gain!!!!

Pave it like you own it….

Best Practices: Professional Insight, Powerful Resutls

November 5, 2010 by Gary May 2
Hey, It’s Digital

Another event in the history books. Digital Dealer 8 provided a new round
of talk, perspective, conjecture, ideas and repetitiveness. Well
attended, the eighth iteration of the event made way for a full expo,
some great sessions, loud receptions and the proverbial automotive
industry buzz.

It was a bit funny last week when two things occurred that caused me to
think about what it is to be "digital", take the leap of faith, change
some (ok, a lot) of the broken practices in our business and bring as
many willing people along with us. Brian Pasch and Ralph Paglia both had
digital device "snafus" in front of a bunch of people. And it was
funny. While some loudmouth from the crowd chirped "it's digital"
(please, no guesses) , it caused me to reflect on how connected we are
to everything digital. And what we continue to do wrong, including the
so called education of the dealers looking for assistance.

Automotive retail's entire existence is based on success in the digital
realm. We don't need a bunch of people, many barely versed themselves,
standing in front of rooms of people telling them that the train has
left the station. Dealers need real assistance, in real time, in real
terms, from real people to build real results.

One thing that tends to rub me is the intention versus goal aspect of
the conferences. What's happened to AAISP? certification programs? "put
the dealer before profits" and all of the other chatter over the past
four years? This is not a post meant to call bullshit on everything but
to avoid it completely would be a disservice. At many conferences, more
netowrking and business happens away from the event than at the event.
And…there is a belief structure that has to be maintained.

It strikes me as odd when people attend events that can have a
significant impact, offer extremely relevant information and otherwise
influence attendees in a positive way are charged the most, treated as
less-than-desireables and not invited to particiapte in the most basic
way. Actually it's flat out wrong. The leading events let the audience
and industry decide what's best. Not the promoter.

Changes in the industry are happening at such a rate now that those in
position to create, promote and execute on large-scale events need to be
more in line who they claim to help. Watch the bottom line? Sure you
should make a profit if you're going to be bold enough, especially in
these economic times, to front cash (which can be significant) and put
an agenda together.

Ego and enforcement also have no place in today's events. Protocol,
yes. Guidelines, yes. Omnipotent overlords focused on anything besides
what drives the most value need to, well…be somewhere else. The
digital shift is about practices, assistance, positioning, data and
more. Our industry has been dealt a deserved blow in the digital space
due to ignorance, denial and a refusal to recognize our own customers
and public. How can the auto industry be so large yet engage and learn
so little?

In my opinion, there should be more Internet department directors
(pardon the phrase), field reps for the larger companies and consultants
that are not beholden to vendors on stage. Those are the people moving
the industry digital every day. Attendees don't want pitches. They need
honest answers. They need examples. They absolutely want to understand
what to do. Not being told. Not being sold. Remember, just like a
customer at a dealership, they want to buy from someone they trust, that
listens to them, that can deliver on value and promises. Why should the
B-to-B part of our business be any different?

It time to start doing the work instead of talking the talk. No more
"we do that" and then scramble to execute it for the first time. No more
canceled cook-offs. No more delays in production. And a lot more
customer service. That's what we need at retail. That's what we need
from the companies making the claims and filling the magazines with ads.
The one's retailers are trying not to do themselves anymore. Because
they're listening to us.

Because, hey. It's digital.

Best Practices: Professional Insight, Powerful Results

May 1, 2010 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
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

March 20, 2009 by Gary May 0