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The Disappointment Your Customers Experience Comes From Within

Let's face it, we're all consumers. Even the highest-paid CEOs in the world have to do it: shop and buy. They will engage a brand, a retailer, a transaction with one expectation in mind: satisfaction. Whether a $4 latte or a $4,000,000 property, there is a process we go through to self-determine the investment of time, research and transaction as well as intended outcome. So if your only measurement is analytics or items sold, you're sorely missing a huge part of what is needed.

Go to the majority of automotive websites, mobile sites, social media and advertising. Ask the average consumer, let alone highly-compensated executive, and you are likely to get an answer you don't like. Why is that? For the most part, we've been buying solutions while being complacent in our happy place: doing what we know and not changing that one bit.

The first layer of measurement was the showroom floor and service drive. Sentiment was shared, while not always freely, in a controlled environment where the impact was mitigated to the most part. That gauge has moved, for the most part, into the most transparent of places: the Internet.

And that is a double-dose of pain. So how do we change what is commonly referred to as one of the least-desired activities (going to a car dealership) that is connected with one of the most accessible of engagements (going to the web)? For starters, do it yourself. Go through your website. As a consumer. Hard as it may be, do it. Take off the dealer hat and pretend you actually need to find something you want. Easily. Quickly. The same way you'd buy an airline ticket on www.yourfavoriteairlinewebsite.com.

Then visit your website on your mobile device. If you are one of more than half the car dealerships in the country, you'll likely see a thumb-sized version of your full website. Disappointed yet? Now hop over to your Blog, if you have one of the best places to build your brand and capture eyeballs online. Because based on your website response, you likely don't offer the image, message, layout and experience you'd like yourself.

Have Facebook and Twitter pages? If not, don't necessarily jump in but if you do, look. What are you saying? Are you just displaying inventory, a feed of random content from somewhere else? Is it representative of what you do your store? Is it, like your CRM, automated? Or is it genuine?

And what about reputation management? While some have embraced it for more than a year or two, the neccessary processes and engagement still don't exist for the most part. And don't get disappointed yourself when you don't have a strategy and are ticked off with what gets displayed online.

Some dealers are starting the next generation of their dealership with consumer engagement. And guess what?! That's perfect. What better input than the people dropping thousands of dollars at your business? Customer advisory boards. Meet the dealership events. Club meets and other non-transactional ways to engage and ask your customers.

The disappointment your customers experience comes from within. And if you don't have a plan to assess, measure, change and improve consistently, the numbers that matter most will go in the least desireable direction.

If you are one of the dealers heading to Las Vegas for Digital Dealer, DrivingSales Executive Summit and JD Power Internet Roundtable, take advantage of the wealth of knowledge. But don't do it simply to compare and buy yourself. Stop. Sit down with other dealers, consultants and outsiders. Take a deep look at what consumers see. Ask the tough questions. Then engage the reps and vendors.

Start delivering online what you say you do in your brick and mortar existence. It's your greatest opportunity.

Best Practices: Professional Insight, Powerful Results

October 3, 2010 by Gary May 0
Getting Ready For Digital Dealer And DrivingSales Executive Summit? Here’s Some Tips

Tickets? Check. Hotel? Check. Registration? Check. FlipCam? Check. SmartPhone? Check. A plan to make what you take back with you work? Ummmm. Not checked!

Digital Dealer 9, DrivingSales Excecutive Summit and JD Power Internet Roundtable are right around the corner. Have you mapped out your sessions? Have you made a commitment to have executable items upon your return? Some alerady have planned for success.

So, here some ideas to get ready before you head to Las Vegas in a couple weeks. It might make the investment worth it!


 

October 1, 2010 by Gary May 0
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
Let’s Talk Next Spring (A Very Direct Monologue)

(Note: As a practice, IM@CS has not written in the first person. We
try to not call people out or make examples of them directly. This is a
slight departure from the past two years of blog writing for dealers. We
hope you enjoy it or are at least compelled to comment on this aspect
as well)

After talking with Internet sales staff and leaving
messages for management over the past months, I visited a prominent
LA-area import dealer recently to see about getting a few minutes with
the manager responsible for their web and eCommerce presence. After
finally having the courtesy to recognize that someone was trying to talk
with him (understanding two things very well: one you're busy and two
you likely have a lot of people calling on you and trying to sell you),
he gave me 45 seconds.

In that time, he was able to share that
the "departments are going through changes so it's not the right time
and we'll be able to put our eCommerce and Internet efforts on the
schedule next Spring". Not only is this one of the best qualifiers, it
is also a great indicator of how removed from reality most dealers
really are. This is not a judgement, we'll leave that to the customers,
staff and factory. But as a litmus test, that's just bad. Flat out bad.

Let's say you ignore every automotive publication. Let's say you never
attend a "digital" event in the industry. Let's assume you're not in a
20 group. Just for kicks, let's say you never talk with your staff.
Considering it's 2010, if you have spent any time on the Internet,
bought an airplane ticket, hotel room, checked a sports score or weather
conditions, how can you allow yourself to be ignorant of what ALL
consumers do?

By next Spring, your competition will be
significantly ahead of you. And maybe by my or another consultant or
vendor's doing. Maybe even intentionally. When you send that kind of
signal out, it's hard not to either try to convince you (unless the
manager was intentionally being dismissive) or leave the store and run
to the next closest store. I say this because it's being done. Every
day.

While I can't speak for others that may walk into the
store I'm referring to, I can guarantee you that if I take the time to
engage you, your website, templates, social media (if it exists), phone
skills and other aspects of your operation has been assessed. Don't even
think for a second that mine is a traditional "pitch", again
understanding that everyone that walks in with a briefcase is likely
trying to get money from you in exchange for services.

Just
know that sometime, really soon, your traffic will go somewhere else..
And with what your using for website and more, it won't even cause a
drop of sweat to fall.

With all the best intentions,

Gary May
IM@CS

July 28, 2010 by Gary May 0
Vendoritis Or Dealeritis: Part Deux

After the recent seminars and events in the Los Angeles area it seems more clear than ever: dealers want to do more, are mostly eager to address new opportunities (or old ones sold as new), are baffled by new technology including social media, are looking at the factories for direction and don't seem to have the right questions to ask the not-so-prepared, over-eager vendors.

In a number of panels that spanned these events, the tough questions either weren't asked or answered. This is not a knock on either the speakers or the crowds, most very qualified to talk about new media and marketing. It's just a fact. One panel on social media had some great experts. On data. Not one person doing it for an OEM or a dealer (or, judged from afar, likely even doing it themselves daily). Another panel had some great participants from very disparate areas of automotive talking about some specific activities they're doing. Truly great examples, results and actions were shared. The missing component was how the average dealer, yes including those in attendance, can implement a plan.

What is happening, as our world moves forward at a speed more reminiscent of the amazing La Mans cars running around Circuit De La Sarthe as this is being written, might be another dose of "ignorance is bliss". And that doesn't help anyone. Dealers asking their factories and reps for help (as was overheard quite frequently lately) are getting shrugged shoulders, "we're working on that right now" or "hire the right company or employee to handle that" responses. In other words, dealers are on their own.

So the dealers' sources for information are limited to their 20 group, industry events and magazines, word of mouth and the old fashion pitch by the vendor. Most dealership decision makers aren't reading the blogs and forums because if they were, they'd be asking questions and participating (yes, we regularly scan for them). So, as with the first "Vendoritis Or Dealeritis" post a while back, the question needs to asked again: how do dealers move forward?

Our industry is always in flux. Lately there has been a more interesting bend, however. Dealers and vendors, for example, fixated solely on SEO for the past year plus are now looking at poor conversion stats to fix.There will be the same issues with social media in a year: those that chose to hire crap automation and get to 5,000 Facebook fans and 10,000 Twitter followers will discover that it's not done anything for brand or business building since over 1/2 of their social media throng is over 500 miles away if not in another country.

When you take your eyes off the ball, you can't catch it. You likely won't even see it. Many today say "bullshit, I can do it all". Well, good luck to you. The best of the Fortune 100 acknowledge that they can't. Maybe automotive retailers can do it all: sell the cars they need to monthly and still talk up a great story online. Just like the vendors that do a mediocre job for you somewhere else in your store and tell you that they can add something to their plate. Yeah, and there's a bridge in the desert that I need to show you…

Best Practices: Professional Insight, Powerful Results

June 12, 2010 by Gary May 1
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
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
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

March 15, 2010 by Gary May 1
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