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Posts with vendor tag.
Dealeritis or Vendoritis? Has The Game Changed At All?

There seems to be a perpetual struggle in the dealer world between the client needing services, needing to change/improve, needing to stay in front of the competition and the vendors needing new places to hock their wares, prove their value, bang the 'we're the leader' drum and pay back their investors. They're both right while not typically paying attention to each other.

In the course of recommending vendors, after assessing the needs of the client, it is sometimes difficult to pinpoint what services will be beneficial. This is more the case today with some providers offering truly integrated, real-time solutions. There are times when, over the course of an engagement, fitting vendors are brought in to do their jobs, but in hindsight it's realized that one larger provider could have done the work. And likely at a lower price while providing a more streamlined experience.

It is always appropriate to push for the larger picture and achieve more but automotive retail has been hit hard over the years with less-than-promised services at outrageous prices and lackluster support. This has been painfully evident with DMS and CRM systems. Many dealers are numb to the pitch today. But have they turned a deaf ear and a blind eye when now is the right time to hear them out again?

Many consultants have the benefit of working with leading-edge and/or forward thinking dealerships and it is a pleasure. In providing best practice recommendations (i.e. the suggestions are honest and the vendor doesn't pay anyone a finder's or recurring fee) it is always necessary to keep goals in mind while ensuring the possibility of exceeding them. Too often the client feels it's the vendors job to 'perform' and the vendor feels it's the client's job to do so as well.

Getting over this 'dealeritis' and 'vendoritis' type of game is essential. and many think it's not happening fast enough. One event started changing things last year and we need more change.

What suggestions do you have to get vendors and dealers together in not-simply-for-large-profits-for-the-promoter forums around the country? Can it be sponsored so the cost is free-to-low for everyone and vendors pitch or should it be a pay-your-way-and-bring-a-sack-lunch event? This is the year of the automotive community: pitch in so you'll win!

Best Practices: Professional Insight, Powerful Results

January 15, 2010 by Gary May 0
It Doesn’t Matter How Much, You Can’t Afford Not Going All Out On The Web

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

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

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

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

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

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

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

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

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

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

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

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

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

Best Practices: Professional Insight, Powerful Results

November 29, 2009 by Gary May 0
What Did Thanksgiving Do For You?

If you're in sales, chances are you needed the Thanksgiving day break.  Badly. If things are good or not-so-good, the day off allows you at least to decompress.  If you're in automotive, many would say that the break is more than deserved.  You should return with two things: the day off and something new.

Too often we take the greatest chance to improve and dismiss it with a focus on the short-term gain.  Will you return simply energized or with new, more aggressive goals and a dedication to really build your brand?  It's not only the things we're thankful for, it's also the things you plan on being thankful for.

If you sell, are you doing everything you can?  Using your CRM as a static database or a real tool?  Is the day after Thanksgiving the day that you start leveraging your website with live chat, video, widgets, blogs, calls-to-action to convert your traffic (campaigns, truly unique offers, integrated items, etc) and more.  Or maybe it's not time to do that.  Right?

Is it time to start customizing your newsletters and other email marketing instead of thinking that simply sending things out means you get results?  Maybe Friday is the day that you start holding vendors accountable.  Or when you start leveraging social media and online reputation management?  Yes, that means you'll have to start asking, connecting and setting expectations.

In order to expect different results, you must do different things and do them consistently.  If there's ever been a time to distinguish yourself, your brand, your dealership, your clients, your community and your industry, it's now.  The gloves are off.  The transparency is ever clear.  The opportunities are there.  The opportunities are yours.

Chances are most of your competition is going to be doing something when they come in Friday: the same thing.  What are you going to do?

Best Practices: Professional Insight, Powerful Results

November 26, 2009 by Gary May 0
Customer Relationship Management: It’s The Message, Not Software That Sells

Three vendors, multiple pitches, agonizing internal conversations, budget decisions, integration, contract, training and the big fat check (every month). Now: simply turn it on and have it send messages for you and you win! Right? Wrong!

How in the world are we continually convinced that a solution 'in the box' is the right one for our multi-million dollar businesses?  Are most dealers now buying software and technology the same way that we've bought DMS for the past 20 years?  We have Dell build our own laptops down the finest detail, change the covers on our cell phones so they're more 'us', put 20's on our otherwise stock cars, and wear clothes that says 'me'. But we send out messages to everyone that's the same and expect them to respond, let alone come in, buy and refer? What a joke!

Here's a clue: if it takes more work and you don't see the results immediately, you're probably heading in the right direction. Why would you send a message (email, text, direct mail, etc) to someone that has a F-150 XLT from your store an offer for a $29 oil change that has small print disclaiming the offer is for 4-cylinder cars? How about sending someone that just leased a new Lexus IS250 from your dealership three months ago an offer that's $40 less per month or that has $1,000 less drive off for the same payment?

If you want to use CRM, treat it like a CRM tool by segmenting your customers in your database, updating regularly, creating different campaigns (start with something difficult, let's say like whether they're male or female) and start with unique messages and offers. It might even work!

Do you use your CRM, an eNewsletter and a company that markets specifically for declined service follow ups (if not more vendors)? Since you've created your own mess, at least hold each vendor responsible to running consistent (non-concurrent) uniquely-branded content that offers readers something that they won't likely want to ignore. What's meant by ignore? If you statistics show supposedly great open and click rates and you don't see a relative increase in traffic, people are likely ignoring your messages.

Have you started using social media as a CRM avenue? Think about it this way: do you believe that you have more customers opening your newsletter (with the same content as everyone else in your PMA) or using Facebook regularly? Don't answer out loud, but why don't you put your current, and archived, newsletters with a link on your Facebook Fan Page and every time you update, all of your followers get it in their feed and emai?

Instead of spending $10,000 a month on direct mail with a 2-6% open rate, send them via Twitter, Facebook and Plaxo for practically $0 and schedule the offers to be sent on specific dates, specific hours and with exact details. Considering that likely under 5% of direct mail is actually integrated into all marketing, your social media CRM efforts will pay huge dividends with less effort. Remember not to forget the most important part, the message.

If you believe that Customer Relationship Management is still about advertising, be prepared to have your (rear end) handed to you by more dynamic, engaged dealerships that have embraced the digital CRM revolution in addition to their CRM software. If the emails you send out to leads don't even have a link to your favorite reputation management site, links to your social media profiles and at least a 'why to buy' item like an intro video or photos of the car they will likely buy, you need to stop and really think over your CRM plan.

Treat Customer Relationship Management as its name implies rather than the 'other' CRM: customer-regardless mumble-jumble. Oh, and one more point: never stop asking questions. It's what you do when you stop talking and start listening.

Best Practices: Professional Insight, Powerful Results

November 1, 2009 by Gary May 1
A Season Of Events: Will It Be Boom Or Bust?

We're on the cusp again: in the next 90 days we're looking at events including DrivingSales Executive Summit, JD Power Internet Roundtable, Dealer summit, Synergy Sessions, Digital Dealer, Auto Training Events and more.  The more dealers that we hear from, the more we hear the same thing: "show me the beef!!".  What's the message?  Drive value for the industry, especially the dealers, or don't bother inviting me to the same old thing!

Today, more than ever, it's a "what have you done for me lately" world in retail.  Dealers need information, partners, cooperation, support and solid direction.  By the same token, dealers need to get off their duffs and start really using all of their tools.  Not buy more and do the same thing.  Dealerships that move forward will do so because they understand their market, their brand and their opportunities.  Not because a piece of software or the factory will just feed them customers all day long.

Our industry is filled with some great providers, vendors, consultants and leaders.  It's hard to know that when, for the most part, the same ones are featured redundantly wherever you look.  It is everyone's responsibility to ensure that, once you drop your two grand to spend a few days away from the dealership, a true learning and sharing experience is had.  Each session should be compelling for everyone attending and it should lead to change.

Here's a concept: event follow up.  If there's a session on social media and 250 people are in the room, everyone should have a follow up about 10 days later with a brief questionnaire, offer of assistance and a general "to keep on track" message.  Headed up a panel on mobile marketing?  Where's the text message thanking people in attendance a week after the event with a unique offer with a reminder of best practices?

And here's the hook: the speakers and promoter will do it for no additional fee.  Sorry overpaid (oops, nicely paid) folks, it's time to give back.  Without the dealers in business, it's hard to collect the "non-negotiable" $150-200 per hour.  Ready for another noble concept: the more customers we keep in business, the more customers we'll have.

SImply having a 'next event in the series' because you said you would is no justification for actually having one.  No doubt we all love to network, gallivant about with industry friends and colleagues over pricey dinners and drinks, hit some balls around on a course you don't get to do so normally and plenty of other arguments for the break from reality.

What changes dealership operations over a 60- to 90-day period is really what at stake.  Pushing the needle forward is an absolute necessity right now.  Speakers, vendors and organizers setting the bar, delivering on expectations and then making sure dealers can execute is the only realistic invitation to an industry starved for sales and results.

So will we be looking at one of these nicely-promoted events truly being a conduit for change or only a way from some folks to take home a profit (again) and some 'at a boy's?  The way that we've done things is not the road forward.  That's not the sole responsibility of the event promoters, but it would sure be nice if someone changed the channel…heck, how about changed a lot of minds…

A season of events: let's make sure that people take back more than photos…

Best practices: Professional Insight, Powerful Results

August 14, 2009 by Gary May 0
How And When Do You Generate Your Traffic? Your Own Program Or Someone Else’s This-For-That?

Whether or not the money lasts in the government's C.A.R.S./Cash For Clunkers program, one thing is clear: automotive retail still waits for someone or something outside of the dealer to drive the traffic. With few (and great) exceptions, people started hitting lots hard over the weekend.The question remains: what happens that's entirely up to you before and after programs?

A couple of OEMs started a little early by creating buzz around doubling or even advancing dealers money. Dealers even sent out email and direct marketing (along with radio and newspaper….aaaaarrggggh!) to promote the fact that they'd have the CARS program at their dealership! Folks, that's just not enough. Remember that people what to know what's in it for them! If they can get $3,500 or $4,500 (or more) for their car ANYWHERE, why are you yelling that you simply have the program? Is your banner bigger? Big (something) deal!

Why not detail how you understand the program's details, that you have a special team at the dealership to promptly handle customers, that you have a 'Clunkiest of Clunkers' competition for a prize or that your staff's outfits are "older than your trade!' and have them come in powder blue ruffled suits? Now, I'm not saying that you need to look like your favorite scene for The Wedding Singer or a bit part in one of my favorite industry guy's videos…what I am saying is that you have to get your head out of the "same place, same thing" mentality and start thinking about how YOU drive traffic.

No consumer typically wakes up in the morning and says "I've got to make it by some dealerships today and spend some time at each one!". That should not be news to anyone. What differentiates you (or doesn't) is the special events, programs and 'why-to-buy-here' calls to action that invite people in. Why continue to fight over the same piece of pie when you can make yours bigger? And with the current economic issues, simply take a bigger piece of a smaller pie! But your way of doing business can't stay in "wait and see", "hold on for 90 more days", "not going to do anything just now" or "watching how effective (fill in the blank)'s promotion goes before we do anything" mode.

Look at your numbers, especially your regional/area performance. Losing sales in your PMA? Why? Asked your customers why lately? How many times have you blind shopped the competition? Did you optimize your website in the last 30 days (or simply put up a C.A.R.S page and/or compete for the same keywords)?

To expect business you need to plan for business:

  • Listen to everyone (yes, your staff is part of everyone)
  • Understand trends and performance
  • Track and adjust in real time
  • Communicate and set expectations
  • Brand, brand, brand, brand, brand, brand, brand

And remember, you can't live on someone else's brand (including the government's). It is also important to be real. If you don't understand something, say so! Ask questions or your vendors, partners, consultants and industry resources (as long as you are actually using them). If they can't do something, ask them to it and if they can't/won't: drop 'em like they're hot.

See the traffic on the highway? They are all going somewhere. They either have to or want to go where they're going. You might just end up being more people's destination if you play your cards right, plan to be successful and don't reply on ANYTHING outside your place of business to bring in the business.

Be a 'traffic-generating' leader, not a 'take what's left' follower…

Best Practices: Professional Insight, Powerful Results

July 31, 2009 by Gary May 0
The Shiny New Tool Loses Luster: When The Belt Is Full

Come on, let's admit it. If someone launches a new tool, application, service, widget, doohickey, gizmo or gadget, we'll all explode. We are so full of tools, you likely feel like the Craftsman section at your local Sears…

Fact is we can probably expect more and that is what keeps pushing the bar forward. With the store closures, OEM staff reductions, agency layoffs and more you can likely look forward to more consultants, new software, increased industry service providers and just plain more 'stuff'.

And considering how most owners, GMs and GSMs buy stuff, there may be cause for more companies wanting to get their piece of a smaller spend pie because they're 'new, shiny, better, sexier or have great advertising'. Folks, we're not using all the tools you have currently, even if you don't really know how to use them in the first place (Ok, you can put all of your hands down because we know you haven't seen your so-called rep in nearly a year who promised the latest training you needed months ago).

More than ever, it's not about sticking with who you already have, simply saving a buck or not taking meetings with new vendors (excuses today are a penny a dozen). Simply put, you get what you pay for. If you are saving $200 a month between one service and another, you had better know what you're missing. If you're not investing in your staff's education/training (yes, I hate that word but the old guard will understand it), you might as well lower your unit forecast by 25-40%. And if you're not willing to take 'another meeting', you might as well hand a few extra dollars to your competitor down the street and take the rest of the week off.

Overwhelmed by technology? Don't ignore it, please! Don't understand something? Get a non-manager in your office that will use the tool/service and get THEIR take on it first hand, don't just give them a sell sheet and have them make a decision.

Over the next couple weeks, IM@CS is going to take a deeper dive into services available to the industry and write 'em up. We'll cover mobile, chat and inventory to start and see where it takes us. We hope to clear up misconceptions, especially around price since nearly everyone seems to be completely misguided on saving a buck versus being more effective. And then we'll try to take it from there…hope you get to use the information in profitable ways!!

Best practices: Professional Insight, Powerful Results

July 10, 2009 by Gary May 0
The Letters Of Success…Acronym Style (Sort Of)

It's important that, from time to time, we stop to focus on the principles behind the goals we're aiming for in business and delivering the best customer experience. No matter what you're selling, you have to believe in what you do 110% and your business needs effective management, tools and support. Success comes from doing things over and over again, learning perpetually, listening intently and doing those things always.

Too often in 'our' industry there is a reluctance to look forward since the 'past' worked so well (sounds like a cop out to me!). In an attempt to bring us back to reality, here are some ways to think about the fundamentals in a way that hopefully works for you…

Practice
Responsible
Overall
Customer
Engagement through
Sales and
Service

Being
Responsible
Advocates of
Name and
Dedication

Keep
Nearby:
Opportunity
Willingness
Listening
Education
Dedication
Guidance and
Experience

Total
Employment of
Comprehensive tools
Handling
Needs:
Ongoing
Loyalty
Outreach and customer
Generation for
You

It's a must for suppliers, not just retailers:

Validate
Every
Need and
Direction
Of your
Retailers

This one is a little blatant (and selfish) but you'll surely get the point:

Considered
Other
Non-performing,
Senseless ways and
Ultimately
Learned
That I
Absolutely
Need
To hire one

All humor aside, it is critical to aim for success, build environments for success and be part of success. Remember that you don't find success (and it doesn't find you), you create it. One of the most niche products I've come across in the past 20 years is Camelback's hydration pack. They carved out quite a following. Their slogan? "Hydrate of Die". True: if you don't hydrate, you will die! And if you don't find a way to learn, do things differently (not just for the sake of it) and plot your course for success, you will die. Failure is part of success. Resistance, running, avoiding and simply burying your head in the sand, however, are futile.

Lead, be great, plan and succeed!

Best practices: Professional Insight, Powerful Results

June 15, 2009 by Gary May 0
If We Only Had A Lightbulb To Screw In…And Other Mistakes We Make

How many times have you heard the proverbial saying…"How many (fill in the blank) does it take to screw in a light bulb?", even lately jokingly about the group of 'car czars' circling around Detroit. While we might focus on the joke or moral of the question, how many of us have the light bulb to start with?

If we always focus on the activities and not the goal, it is easy to understand why all the hubbub is around who gets to 'do' things. Considering how things are now, I'd be more concerned with making sure we have the right bulb, that it fits, that it will provide the right illumination and that we know where it came from in case we need more. Then I'd focus on who gets to have the joy of screwing it in!

And this is not endemic to just finding the right action person, it's perpetuated in so many other areas. Larry Pinci (of Sell The Feeling) put it well in a meeting we had not too long ago: "are you on the cause side of the equation or the effect side?". If you're in wait mode, or even better in 'head in the sand' mode, right now you're not on the right side of the equation.

Today I had a great conversation with a dealer in the Ventura area of Southern California in which we discussed branding, something he's been trying to get the owner to act on for quite some time. Part of the build up was him answering pointed questions about experience on their website, consumer engagement and reach. As we talked, he came up with some great answers as to what the site lacked. Until we know what the solution or goal is, the bulb turning (activities) doesn't matter!!!!!

VENDORS: Same thought process when considering how many vendors are pitching dealership GMs and principals today. Want to create a business partner or a sale? (hopefully you answer that one correctly). Want to have an opportunity or 5 minutes and get tossed? (and that one). So why are you trying to get something "sold" before you even know that there is a need identified. Hint: not a need, every business has needs. Rather a need that has been identified!!!!

With so much of what happens today being knee-jerk, defensive actions, it is that much more important to have your goals identified and clearly understand your starting point. Don't' make the same mistakes as the pack! Remember that the last action needed to complete a task is not the one to concentrate on. You must focus on the first one and realize that you'll separate yourself from the rest by the time your goal is reached.

And when you finally flip the switch, it'll be that much more illuminating!

Best practices: Professional Insight, Powerful Results

June 5, 2009 by Gary May 0
Week At IM@CS: Chats With The Industry

It's been a while, maybe to long! Considering what is happening in the market, it's time to get back on track with the folks that power the industry (yes, besides consultants!). This is another mix of providers touching different aspects of marketing and services that hopefully give you a leg up (if not a whole body length or two).

You've heard it here before and you'll likely continue to hear it: accountability. I've not yet met a vendor that tells you everything. Even the most up front company will tell you that they can/do something and then shuffle (some like mad) to get it done, even if they know how to do it. Not only do I expect this, the challenge of new things for clients makes some companies tick, while many just hide.

More than ever, dealerships want the services they pay for to get the
customer in so their sales staff can "close 'em". Just leaves you to
guess that many salespeople still believe that they shouldn't have to work for the close.

Mobile Web: Face it, you have to do it, it's absolutely here (if not passing the auto industry like a freight train), consumers want it and technology is changing faster than prices for NBA Finals tickets right now.

Advanced Mobile Solutions has a great platform they're rolling out for automotive. They know mobile, understand that life-on-the-go will extend beyond iPhones and Android Phones very soon, have the backbone to support it and want to push the ball forward. Many of the platforms I've seen for dealership inventory are lacking. This company has some great promise…oh, yes they can also do your mobile/text marketing so you can have one vendor doing both correctly http://www.advancedmobile.us

Widgets: Plenty of people still question the staying power and how steadfast of a marketing tool having some real estate of a consumer's desktop is, let alone if they'd download it. Outside of iGoogle and the 'techie' folks, many believe that this market is absolutely huge.

Already featured last December in a "Week At IM@CS", DealerBug needs to be checked out seriously (yes, by you!). This versatile tool allows great presence, branding, analytics and adaptability. It's not a question of when you need it, only how will you use it. They're delivering customized widgets for everything from pre-order vehicles (like Camaro), to car clubs (Mustang, Corvette, IS-F, EVO, etc) and developing inventory-based communication. Relevancy and timeliness has a new home on your customer's screen http://www.dealerbug.com

Live chat has developed into a tightly debated sector of consumer engagement on dealership website (and now even on videos and ads playing on non-dealership properties like YouTube). No matter what, dealerships that do it right…get the results.

ActivEngage happens to be where IM@CS believes the market is right now for car dealership live chat (ie real-time car sales folks). Every time there seems to be a wrinkle in the 'get-em-on-the-website' process, this company appears to have the iron for the job. I've been impressed this year in watching the value that they continue to provide http://www.activengage.com

Hopefully we'll keep this section of the blog a little more alive. Please give some feedback on any companies that you believe should be featured or if your experience with any ones that are featured has been less than desired (in all fairness).

Best Practices: Professional Insight, Powerful Results

May 10, 2009 by Gary May 0