Tag Archives

Posts with sales tag.
Crunch Time: Are Your Vendors out To Lunch? Or Are You?

It's very telling, especially today, when a supplier doesn't deliver.
Over-commit, under-deliver. While there is no such thing as 100%
delivery, 100% of the time when there are variables like creative,
interpretation, third parties and even technology changing at a
breakneck, daily pace. However the fundamentals should never change:
communication, expectation, examination and verification.

Being
around the automotive online space for over 10 years, it has been
common to be around or even directly involved with what you might call
"sales coups without production capabilities" or "sell it and then we'll
build it". Most of the time letting clients know you're building
something as they buy it is completely fine. Selling something as
complete or pitching services you provide when you really don't is
something else.

Over the past few years, it's been website and SEO services. Lately it's social media and reputation management. Two sayings to remember: if it sounds too good to be true, it likely is; stupid is as stupid does. In all fairness, the impetus is always on the buyer. While that's not completely fair, everything deserves a second look or opinion. For one example, recently we've been in meetings hearing about services for a few hundred dollars a month promising positive reviews on hundreds of sites.

Even without prejudice, it is difficult to understand the reach, impact or importance of a positive dealership review on some obscure website. About florists. Being read eight states away from you. By someone who has no interest in buying a car.

Numbers are great. Especially transparent ones via Google Analytics or something similar. It's also great to have a string following in the social online around your business. Having 40,000 on Twitter and 10,000 fans on Facebook, most of whom never have or never will buy from you, refer people to you or possibly even realize what your business does. That's irrelevant. People moving into your PMA that own a car from your franchise? Great. Likely a potential customer. Someone on your social network that lives 8,459 miles away from you because you're giving away something for free? Worthless.

What's of less value than that? The people and companies that are selling the services because you don't have the time to know and understand better, let alone put resources against it. And the fact that you can do it for $300 less a month than another company that can do it for you? And you call yourself a business person? Please. The other day at an OEM meeting, we heard about dealers paying $2,000 dollars a month for social media services. There are real companies doing a better job for half the price. Dealers paying $8,000 a month for that?!?!?! Let's not even go there.

This is not about the struggles with real ROI in the digital space. Or people not understanding services. It's not even about pushing companies out of the industry that will intentionally pull the wool over dealers' eyes (that would take years anyway). It is about taking charge of what you want to do in your business, having goals, comparing apples to apples and making sense out of the insane amount of pitches car dealers face.

Many times it's your vendors that are out to lunch. Sometimes, it's absolutely you. Question reps and consultants. Question proposals and marketing materials. Question your staff on what to do. Heaven forbid, question your customers and find out what they want and expect first. And stop buying for the sake of it, because someone in your 20 group did or because a golf buddy (that operates their store completely different than you do) told you they found the magic bullet.

Get back to business. It's crunch time…

Best Practices: Professional Insight, Powerful Results

September 4, 2010 by Gary May 0
Focus Daniel-san, Focus!

Focus. We all need it. Sometimes we loose it. Hopefully we get it back. Focus is what, along with goals and direction, on the path to success. Simply put we're in the business of selling products and services, backing them up, and maintaining relationships with those that bought the products or services.

Broken focus is what allows us to view the products and services that we buy as those that will sell what our customers will buy. Yup…long sentence. What does it mean? It means simply stop thinking that websites, CRM, widgets, gadgets, software/SAAS and all of the other stuff (including social media) sells cars and then makes people service them at your business. People buy from people.

Don't get me wrong, we're all about more efficiencies and lower costs through all the items above. But if you think for a second that you can forget about an up, any kind of up, you're dead wrong. Companies continue at a break-neck pace to promote their "two cars pays for our service"and "with our leads you'll sell 8.7 more cars more month".

People sell cars, people sell cars, people sell cars. The 'best' lead, scored by some company that doesn't sell cars, sold to you by a company spending millions to promote themselves with your money, with the most gross ever not followed up on is a floating, polished  t**d. At the same time, the 'worst' perceived lead from your overpriced third parties, let alone your own website (if your cars actually showed up on Google from your own website which most don't), is closed in a 5 minute call or three emails because the person was dealt with quickly, honestly and had all of their questions answered.

Focus on setting appointments. Appointments that are confirmed. That then show up. That then are handled right. That then are closed right. Because they nearly all come from your website or some displayed listing. Focus on what drives people to your store…you and your co-workers.

It's amazing the amount of dealers spending $20,000 per month or more to sell a few more cars (plus salesperson's commission, managers' cut, overhead and all the rest) because they're convinced that without buying what they're selling, they'll be crushed. Yesterday a meeting at a store revealed that, while the staff was asking for more leads, one of their marketing sources had about 20 plus leads that weren't touched. At all. Yeah, it was from service marketing. So I guess people that service don't also buy?!?!?! Focus…

Your website is there to get appointments. Everything online and in marketing outside of your website is intended to drive traffic to your website. To get appointments. Everything else you use to drive impressions and retention is supposed to eventually drive people to your website. Please don't fool yourself. Look at your analtyics. Yours. Google's. Not your website company's 'unique' statistics.

Please focus. Dealers (And everyone in business that is trying to grasp online), it's time to stop. And focus. We're trying to invite people to buy cars and maintenance and parts and accessories. As an industry we say that but it's not how we buy services. We buy because our buddy did, our competitor did, all of our 20 group says to and so on.

It's down to focus. Remember that Daniel-san could block, sweep and jump AFTER he focused on painting and all the other chores that Mr. Miyagi gave him. No distractions. Complete focus.

So focus Daniel-san, focus.

Best Practices: Professional Insight, Powerful Results

May 13, 2010 by Gary May 0
It’s Time To Do A Few Things Well

Most people that read this blog that are in automotive retail probably have one thing in common: they can do one thing really well. Sales, finance, management, etc you're likely not fresh in your position or field. You've been trained, taught, updated and (even if not very effective) sent to seminars, events and trade shows. People looking for more information, especially in this format, are those that want to learn…to be better, earn more or lead their field.

So, it's time for you and your colleagues. Time to do a few things. This is not a way to say that you're only doing one thing. Rather that the automotive retail, and even most of the headquarters, needs to venture outside of the comfort zone in regards to being more effective, using multifaceted strategies and new technology to deliver better results.

There is raging debate on what works and doesn't tied into whether or not fads and technology work: social media versus the tickler file, direct mail versus ads, text marketing versus a note, text codes/integrated mobile marketing versus billboards, Internet departments versus the floor, CRM versus the 3 by 5 and the salesperson's memory. Folks, what are afraid of? What investment is not worth it if customers will consume it? And why is the debate still going on at all? If it works for you, do it.

Oh, and then there's the budget and resource excuse. It used to be that the argument was simply "if I drop my newspaper and TV ads, traffic will stop". We all know today, without question, that's not the truth. Period. Now days it's "I can't staff competent people to handle live chat", or "how can I have someone post on social media ll day and still sell the cars they're supposed to?".

That's not the point. It's simple: do the same things, get the same results. Stop thinking of a technology, solution or new mouse trap as a stand alone aspect of your business! Everything creates either consideration or traffic that should convert. You might think about things this way:

1. Your website is the center of the universe. All traffic should ultimately go there. Leads convert there or because of the information gained there. While not the most dynamic part of your marketing, it is one of most easily tracked, can be modified nearly on the fly, enjoys the benefits of multiple sources and provides seamless integration. Oh, and you own it (or if you don't, you now know you should!)

2. Invasive marketing is meant to drive specific contact or leads but rarely meant to drive traffic to the website (which should change): direct mail, outbound calls, inserts and other forms of non-requested contact. Still works but typically not tailored correctly for higher conversion. If dealers started using their data correctly, ROI would increase (or start actually). Upside is that the receiver is not expected to do anything other than look or open their mail or drive by something while the downside is that tracking is poor and is not on the consumers terms.

3. Passive marketing is meant to involve your customers with your brand and includes events, ride-and-drives, social media, giveaways and more. Benefits are that it can be tracked more accurately than any other off-site media, costs are typically lower than (if not practically dirt cheap) traditional marketing, engages consumers at their want/need/desire level and offers great sharing and word-of-mouth.

Two and three are supposed to make one work better, consistently. It's incredible to think of someone that controls the marketing spend at a dealership or group using invasive marketing as the majority of their focus while the same person doesn't use the media they buy when they consume content! Put even more appropriately, why do you market or advertise expecting it to work when you've not successfully asked or tracked how your customers engaged, used and responded to your marketing? The first dealer that says they source successfully over 50% of the time, your staff is…well…not being honest.

It's our job to know what our customers want, not what we want them to want. If you're a top producer at your dealership, how can you deliver more? The answer isn't that you can't. Or that there's not enough time in the day. Or that you're waiting for the new model because nobody wants to buy what's being replaced. It's time to do a few more things well.

Are we recommending that you get into a fist fight with your GM about opening up the firewall that your IT director clamped down so tight you can't get an email out to your mother? No. What we are recommending is that you find the time and ways to make your time and results more effective and productive.

These things don't happen by themselves. We need to push ourselves into uncomfortable territory for a while and commit to seeing the results through.And don't lay down because your factory rep doesn't understand how your CRM works or what a tweet is or that you can actually talk with people on Facebook.

Do one new thing…then do two things…and they will come! Yes, silly, the customers.

Best Practices: Professional Insight, Powerful Results

April 12, 2010 by Gary May 0
Webinar: Ward’s eDealer 100

Picture 8

Ward’s will introduce you to successful dealers
from the Ward’s e-Dealer 100, each of whom have implemented unique sales
strategies for driving sales. The Ward’s e-Dealer 100 is considered the
industry’s benchmark for measuring top franchised new car dealerships
by Internet sales, and we have selected dealers from our list to offer
insights into the business practices that helped get them on our
ranking. Our webinar discussion will offer real-world examples and best
practices to help you craft effective new Internet strategies. You can’t
afford to miss it!

Ward's e-Dealer 100
Wednesday, April 14th, 2010 — 2:00 PM ET | 11:00 AM PT

Sponsored by:

Picture 10             Picture 11


Register_Button

April 9, 2010 by Gary May 0
When You Hit The Wall…Again. And Again.

From time to time, even with the best plans, strategy, resources and more, it becomes painfully clear that you're not going to make it. Unfortunately, some people experience this state of being for far too long. In automotive retail, there are even those that are paralyzed by it for, well, eons. In sports if you have two false starts you're gone. Why does 1,479 false starts constitute holding on to a process or salesperson at a dealership?

One of the many benefits of calling on dealers all over the country is the face time with some great people. Hearing many clearly defined business and action plans is inspiring and creates hope that things continue to look up. Having dealerships that used to track leads in archaic software, or even Excel, switching to advanced CRMs is inspiring. Chopping off the top salespeople or totally turning your sales department upside down and starting over? Now that can make even the greatest skeptic smile!

There is no question that times are changing for our retailers. About five years late. Some of the areas of greatest discussion recently (not counting social media) are how we keep the best and brightest, or attract them, and compensate them, how to incorporate tools that should help us but ultimately cost too much or don't do what they are supposed to, how to cut costs and how to stop giving up gross.

We don't claim to have the answers but have some thoughts to mitigate the typical course of (1) I can't change things so I won't even try, (2) I don't know where/how to start, (3) I tried before and failed, or (4) fill in the excuse you use: take risks in small doses in the right direction, ask for help because there is a lot of good, free advice (especially in the online automotive forums), start creating more buy-in with top management before you try to 'sell it' and simply convince yourself that the goals you envision are worth achieving!

Many times turning heads and making waves is actually less of a risk that doing the same things over and over and expecting a different result. We've all seen or known people who were burned out that we had pegged as being a superstar.

For most of us, the greatest help we can receive in avoiding 'hitting the wall' is common sense, some outside counsel and a firm dedication to what we know will work. Remember, we're here to (clap) pump…you up!

Best Practices: Professional Insight, Powerful Results

April 4, 2010 by Gary May 0
Start With The End In Mind, But Mind What You Start

One of the beauties of working with those businesses that want to move forward is just that: the move forward. One of the drawbacks is the distractions that can stop clients in their tracks. Even the most excited dealer, on any given day, may end up with a list of fire drills that can stop a freight train. Downhill. When you start your move in the digital direction, it must be a complete commitment.

More and more principals and senior management at the dealer level are getting their hands, minds and ambitions set around their online presence, brand reach, consumer interaction and spending real time in understanding what is out there. By educating dealers rather than just taking over the whole ball of wax, change is visible. By involving them rather than avoiding them, cooperation is established. By partnering, accountability becomes easier.

Even with the greatest level of engagement, however, retail is still retail and some habits die hard. Dealers can't ignore their fixed operations for a day. Management can't (and won't) turn a blind eye to the sales floor for 24 hours. Not even the parts manager gets a day without a general manager visit. So how can you afford to go a week or two, if not longer, without chatting up what's happening online and not just leads.

Two areas that might need more work are setting expectations and goal setting. Too often relatively major aspects of online operation are glazed over that can easily be addressed by keeping both vendor and client accountable to updates, the calendar and results.

These days you hear about more dealer service providers being tasked by their dealerships, companies providing more amenable terms, dealers sharing more information with their 20 groups and huge attendance at events around Internet and social media efforts. Great! What is happening to hold the dealer responsible? The web and everything associated with it is so fluid today that it almost makes more sense to have a meeting about what's happening and how to adjust and direct once or twice a week compared to having another sales meeting. Folks, if you have the right staff, it's about bringing the people in…salespeople know what they're doing and not doing especially when they hear it from the desk consistently.

Set expectations, draw out what steps must be done to excel. We must start with the end in mind AND be completely committed to it. Advisers, consultants, webinars and conferences are what you start and maintain with. In other words those are tools, just like 3 by 5 cars, tickler files, walkarounds, and CRM software. They are the conduits to results you want: the sale. They don't sell cars but you can't exist without them.

If you have committed to put your emphasis online, no matter what phase of the process you're in, stick with it. This isn't toe-in-the-water. This is died-in-the-wool. You can't get anywhere without having both the keys and a destination. You can't take off without the right equipment and a flight plan (yeah you pilots of the auto industry, you know who you are). And you can't win online without being part of it, staying in it and knowing what you want out of it.

Best practices: Professional Insight, Powerful Results

March 4, 2010 by Gary May 0
The Square Peg, The Round Hole and Public Opinion. How Can The Dealer Win?

The factory, the product, the media coverage, the recalls, the blitz of lacking and half-cooked information. When does the dealer get the coverage? When they're closing, exposed as corrupt or so-called environmentalists torch their lots. Welcome to the square peg and the round hole in the automotive industry, if not the perfect storm.

And who's to blame for the lopsided ego-train? Yes, the factory is guilty: plain as day. More than not, they treat the dealer like a flea on the 800-pound gorilla. But so is the dealer base. For the last couple decades, the dealers have waited for the new models, created mediocre-at-best, self-indulgent print and radio ads, greeted fearful (or at least resentful) customers in less-than-desirable locations and then wondered why they have the (earned) reputations they do.

With exception to the leaders in the industry, dealers have not done much to truly brand and distinguish themselves. Don't get 'yer panties in a wad yet: We're not saying that you don't impact your communities, gainfully employ many or that you don't feed tax revenue into your city's coffers. What we are saying is that the dealer brands have not matched, let alone eclipsed, the nameplate and that is sad. Today would be one of those days if you happen to sell one of two import brands…and we all know that the domestics have had their days as well.

There has not been a better time ever to build a sustainable brand aside from what the factory does. And wouldn't you want to do something different?!?!?! Have you paid attention to most car ads? Have you seen the POPs that are created for showrooms? You're better off putting one of those 40-foot high lizards or cylindrical men with billowing arms on your roof! Actually, please don't do that, 1986 called and they want their marketing back.

How does the dealer win today?  Start competing with the factory by becoming your own media. On the web it's more achievable for less money than you'd ever imagine, if you do it right. You might even start working with your customers and actually source, communicate and retain them successfully. There are some OEMs that actually want to take over your CRM and relationships but it's not because they can do it any better than the dealer can. Truth is it's not happening correctly at retail. This evening I was talking to a successful local dealer group that has one of their import stores source nearly every walk-up the same way in their CRM: simply click the first drop down choice. CRAP!

The foundation for winning is simple, it's just not easy: unbreakable processes, management from the top down, complete comprehension of systems and support and a die-hard commitment to the customer. If we don't do that, it's all for naught.

These are still very trying times in automotive (special mention to the banks!). Maybe we can all start by simply trying to keep ourselves from making it any harder. Start internally. Then make sure your 'home' is in great shape. Then concentrate on the customers. Then, alas, take care of the factory.

Best Practices: Professional Insight, Powerful Results

February 2, 2010 by Gary May 0
Why 2010 Is The Year For The Dealer In The Automotive Communities

You've seen them. You've registered. You've looked a couple times. You've even mentioned them at some of the events you attend to be in the 'know' . But the most you've been involved with what is likely the greatest area of information and opportunity for quicker growth ends with exactly that: not much. Post a comment on a forum? Nonsense. Ask a tough question of your peers? Waster of time. But your processes, results and even poorly rated vendors don't change and the answers are staring at you, through that nice flat screen you convinced your general manager you had to have.

So what will it take to propel dealership involvement in the communities? If we don't change retail, as great as the products have gotten, the fact that new cars are now launched on the web or mobile devices exclusively rather than traditional advertising (about stinking time), the fact that you read reviews of hotels and restaurants on review/forum sites and a list of other valid reasons, the dealer voice online is about as frequent as (fill in your least favorite 80's or 90's pop star here, mine's Cher) appearing on the Billboard Chart's number one spot today.

We can all agree, or let's just say we can, that a lot has had to change in automotive retail. And some are doing it with rewarding results. Even with 'better' results, it's not enough to drop your marketing expense by $50,000 a month compared to a couple years from now, redesign your website and expect cars to fly off the showroom floor. We must share and help each other.

Considering how many have chopped expenses including travel and 20 groups, stopped attending most events and don't even see their reps as much as before, how can you not leverage the online automotive industry communities? That is a rhetorical question considering how many dealers still step over a dollar to pick up a penny.

And let's have real involvement rather the same old list of suspects. A changing of the guard is totally needed, appropriate and refreshing. Does your favorite publication use the same contributors every month? (yawn) Boring! It's no different online.

Dealers, here is the challenge: write down your two or three biggest challenges. Everyone posts them starting tomorrow, for the next 50 weeks. Stupid questions? No such thing! Someone already asked the same or close question? See who else can answer it. What are you afraid of? This is your opportunity to learn while everyone else does. No two people will execute exactly the same so make sure you've got your spin on it.

As an example, after last October's DrivingSales Executive Summit, the comments were consistent not only about the value of the event but the content was more in line with what dealers needed. It was dynamic. The speakers were fresh. The subjects impacted attendees. Then, crickets on the website.

Folks, this is THE year for the automotive online community. Our future success depends on what we do today and for the next 354 days. We have one of the best industries out there, we should treat it as such.

Best Practices: Profession Insight, Powerful Results

January 10, 2010 by Gary May 0
This Is What Happens When You Do It Right

It's not every day that you come across as example of what you're preaching, especially when it's in the automotive world. To be brutally honest, it almost never happens around social media, blogging, websites and the like. And then, just like in the movies, a kid gives you hope. This is not a typical post at all for us but this much-needed fresh air deserves credit.

A jaunt down dealership social media lane today will reveal about 85% plus of franchises screaming "buy here" and all sorts of offers, incentives, links to inventory and other huge no-no's. Finding stores that are actually talking with the public is so rare you'd think that, even considering the poor reputation car dealerships have, all hope of being real humans was gone.

Enter Scott Mitchell and his online brand: www.IAmAudi.com, or @I_Am_Audi on Twitter. After following his social media moniker for a while, I ventured to his site/blog and was even more impressed. Not being a client (nor his Audi store in Oregon) and never having met, his content comes across purely and without a drop of pretentiousness. This is interesting considering the Audi history, massive brand awareness of late and knowing how aggressive they're being in (old school) offline marketing and (new school) online marketing, Scott's property could have screamed "Audi Is King'.

Rather you get taken along on a ride (drive) through Audi's past, present and future. The articles are engaging and have purpose. With a fair balance of statistics, news, photos and '4 ring' passion, there's not a list of current incentives or begging you to come in to the store.

Have a question about Audi? Find this site or his Twitterperson and you feel like you're going to get an answer without having to sit around a showroom for 20 minutes, let alone have a salesperson hounding you for the 'best deal of the year'.

And outside of the link to and map location of the dealership employing him (kudos to that general manager!) there's not an ad, money generating link or anything else that hints at outside-interest-ladened affect. Folks this might be the wholly grail. Look, listen and learn because there's a new resource around.

Great job Scott, welcome to the 'gets it' club…oh, are you on Facebook?

Best Practices: Professional Insight, Powerful Results

January 5, 2010 by Gary May 0