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AutoSuccess Best of the Best NADA 2009 – Details Page 4

December 2008

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AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or [email protected]. Subscription rate is $69 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220.

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CLOSING THE EXECUTION GAP

MichelleOldershaw

TomHopkins

PaulCummings

OUTWIT, OUTPLAY AND OUTLAST THE CURRENT MARKET

StephenR.Covey

CLOSING THROUGH THE BUYER’S EYES

MichealYork

TURNING NON-BUYERS INTO BUYERS

ADDITIONAL BUSINESS WITHIN YOUR DEALERSHIP? RichardVanderport

Dr. JohnC.Maxwell

SeanV.BradleyINTERNET SALES 20 GROUP XII

WIN BY PUTTING YOUR PEOPLE FIRST

LOSSES INTO LESSONSFour Fail Safe Strategies

CHANGE - THE ONLY THING THAT REMAINS CONSTANT

WELCOME TO THE MARKETPLACE OF SLOPPY SELLING

9 WAYS TO BETTER MANAGE MARKETING COSTS LarryCochran

EMPLOYMENT VALUE PROPOSITION

MattBaker

IMPROVISING YOUR APPROACH TO IMPROVEMENT

JohnBrentlinger

PaulSnider

THE BEST PRICE GUARANTEE

AlCarl

LOYAL CUSTOMERS MEAN DOLLARS FOR YOU

BrookeSamples

GENERATING MORE REVIEWS:Six Steps to Building Your Dealership’s Online Reputation

GET A GRIP ON YOUR MARKETING EFFORTS:Tips for How to Better Manage Your Web Analytics

MarcSmith

RichardF.Libin

SeanStapleton

8

www.autosuccessonline.com

StephenR.Covey

CLOSING THE EXECUTION GAP

leadership

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In an earlier column, I pointed out a vast

“execution gap” in most organizations. So many crucial initiatives fail, so many change efforts collapse, due to this yawning gap. Several months ago, FranklinCovey asked 11,000 people in the U.S. workforce to tell us about their execution discipline. Figure 1 details the magnitude of the execution gap. If the typical organization is like this, execution is obviously at high risk.

The execution gap is a human issue. It has little to do with market strategy or technology, or with any of the issues that typically occupy the time of executive leadership. It has to do with people. Either they execute, or they don’t. To close the gap, organizations must practice the four disciplines of execution.

Focus On the Wildly Important GoalsPeople are genetically wired to focus on

one thing at a time. Nevertheless, we ask our people to “multitask.” The result is frustrated workers and poor results. The leader’s job is to make crystal clear those few goals that are “wildly important” and get everyone focused there.

Some objectives are clearly more critical than others. As I watch the security people at the airport process passengers, I am impressed with their courtesy and effi ciency. But if one terrorist gets through the system and disaster results, the courtesy,

professionalism and effi ciency will count for little. That’s because these workers have one wildly important goal that must be achieved. How crucial it is, therefore, that everyone agrees on what is “wildly important” and focus on it.

Create a ScoreboardPeople can know the goal, but if they don’t know the score, they are working in the dark. Imagine going to a football game without a scoreboard. Everyone must know the score all the time to know what to do.

Scoreboards motivate people. The scoreboard must be created by and be visible to everyone. One fi rm I am acquainted with helps people save money on prescriptions. Their goal is to save their customers a certain amount of money this year, and every day they post their progress toward this goal. No one in the fi rm questions what is “wildly important,” because together they have decided what it is, and they never take their eyes off the score.

Translate Goals into ActionGoals that have never been achieved require behaviors that have never been tried before.

How often do leaders announce a new goal without giving thought to how it will be executed? One company I know of announced that every store in its retail chain was to increase sales revenue by 15 percent that fi scal year. Store managers and staff accepted the goal, but had no notion of how to execute. Leaders must involve the front line in defi ning what everyone must do differently to accomplish the new goal.

Engage the Team WeeklyIt isn’t enough to meet once a year and decide what the work group is going to do. In the most effective teams, people meet weekly to account for their commitments, examine the scoreboard, resolve issues and decide how to support one another. Former Mayor Rudy Giuliani, widely credited with the renaissance of New York City, met daily with his staff to do these things. Re-engaging less than weekly allows the team to drift off course and lose focus.

Originally ran in CLO Magazine.

Stephen R. Covey, Ph.D., is co-founder of FranklinCovey, and is the author of The 7 Habits of Highly Effective People. He can be contacted at 866.892.6363, or by e-mail at [email protected].

YOU SELL CARS.WE HELP YOU SELL

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xQ Question – % of 11,000 respondentsI clearly understand my organization’s important goals – 44%We set goals that we have passion about – 19%Percentage of time I spendworking on my organization’s most important goals – 49%I have clear “line of sight” between my owntasks and the organization’s most important goals – 9%

FIGURE 1: Execution Gap Magnitude

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sale

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CLOSING THROUGH THE BUYER’S EYESYears ago, I spoke at a banquet for

top salespeople. Before I gave my talk, the speaker introduced someone in the audience and said, “This man earned twice the national average in sales last year….” The speaker’s manner suggested that it was quite an achievement. But, considering the large number of successful sales professionals in the room, that feat wasn’t all that impressive, so everyone craned their necks and looked at the man in puzzlement. The next words out of the speakers’ mouth made all the difference. He said, “and he’s totally blind.”

There was a burst of applause. Then, the speaker said, “I’m sure many of us are wondering how you got into the top third in sales achievement with your handicap.”

“Wait a minute,” the blind man replied, “I don’t have a handicap. I have an advantage over every other salesperson in my fi eld. I have never seen a product I’ve sold, so I have to close through my buyers’ eyes. What I do is what all of you sighted people could do. And you’d make more money if you did.”

He was 100 percent correct. You must see the benefi ts, the features and the limitations of your vehicles from the buyer’s viewpoint. You must weigh them on their scale of values, not yours.

Get Yourself Out of the WayPotential clients don’t come to your dealership to fi nd out what you like. They don’t know you and don’t care what you drive — unless you drive a competitor’s vehicle. If you do, don’t mention it. It will make them doubt your sincerity as you tout the benefi ts of Brand A when you’ve just told them you drive Brand B. Also, if you would drive a Brand A vehicle but can’t afford it, don’t tell them. They’ll wonder just how good a salesperson you are. Don’t do or say anything that might raise their sales resistance.

Always keep in mind that people don’t just buy your vehicles. They buy the dealership reputation. They buy the brand credibility. And, they buy you. They need to feel that you’re a product of the product — that you truly believe in what you sell.

People will say “yes” to you based more on your conviction and enthusiasm than your product knowledge. If you don’t truly love the vehicle brand and models that you sell, you need to either fall in love with them or fi nd another brand to represent. Your lack of love for what you do will show through and instill something other than confi dence in your potential buyers.

Don’t Tell Them What You Like About the VehiclesStop turning potential buyers off by saying, “What I like most about this feature is…” As I said, they don’t care what you like. They need you to care about what they like, and want and need.

The only way to learn what their needs are is to ask questions. Typical automotive salespeople think their job is to capture the clients when they walk in, ask generally what they’re looking for and quickly start walking in the direction of those models.

Champion automotive salespeople don’t do that until they’ve gotten the buyer talking about what their new vehicle needs to do for them. The only talking you should be doing at this point in the sales cycle is asking questions.

“What brought you in to our dealership today?”“Are you interested in a new vehicle, or were you thinking of something used?”“What type of driving do you do? Mostly in town? Or longer highway driving?”“Do you typically carry a lot of cargo? Or, are you more likely to have a car full of passengers?”“What type of gas mileage do you get in

your current vehicle? Is that an important aspect of your decision today?”

Do you see how these types of questions help you mentally fi lter through the hundreds of vehicles on the lot? Even if Jim Martin comes in saying he wants a new 4-wheel-drive truck, you may learn that Jim’s wife is expecting their fi rst child soon and that they’ll need an extended cab at the least — something young Jim may not be thinking of because he’s always had a single-cab truck and likes them.

Mary Porter may come in wanting something sporty, but in drawing her out, you learn that she has two big dogs that she takes along on trips out of town on the weekends. In that case, the defi nition of “sporty” just went from being a two-seater to something larger, didn’t it?

You are an expert advisor in the automotive industry. When people talk about their needs, you think solutions. Most of your potential clients will make vehicle ownership decisions once every two or three years. You are involved in those decisions daily and know so much from the experience your clients have with their vehicles. You think beyond basic wants and needs and go deeper into what’s truly going to be the best choice.

There’s an old saying that “Knowledge is power, when properly applied.” Keep that in the forefront of your mind when you speak with potential buyers. The more knowledge you gain about their needs, wants, desires and fi nancial situation, the more likely you are to help them make a wise decision about their next vehicle…and the one after that.

World-renowned master sales trainer Tom Hopkins is the chairman of Tom Hopkins International. He can be contacted at 866.347.6148, or by e-mail [email protected].

12

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LarryCochran

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According to a recent study, nearly eight percent of money that a dealer spends is used on marketing and advertising costs. It is more critical than ever that these costs are properly managed and used in a way that will help win sales without losing your overall gross.

For decades, dealerships used a combination of radio, TV and newsprint to communicate with consumers. Today, many dealerships are still reliant on these media to deliver their message. With the advent of digital marketing, and the challenges of this current selling environment, these methods are simply not enough to lead to successful selling. Here are nine ways where the use of digital marketing can help dealerships better spend their limited dollars.

1. Improve Your Web Site with Impactful, Interactive ContentThere are many options available today

to use your Web site as a profi t center for all areas of the dealership. State-of-the-art Web sites include virtual salespeople to assist navigation through the site, online inventory that delivers a comprehensive description of all available vehicles, and the ability to sell parts and accessories in real-time with secure shopping carts.

2. Begin the Transition from Traditional Marketing Sources to Digital Advertising A study by Capgemini showed that 83 percent of “in market” car shoppers visit the Internet fi rst to research vehicles. In the age of the Internet, online advertising clearly can broaden a dealer’s sphere of infl uence, and go far to attract and engage consumers the way traditional advertising vehicles — newspaper, radio and TV — cannot. Research continues to prove that digital ads consistently generate the highest conversions into

dealership showrooms, completed lead forms on dealer Web sites, and telephone calls into business development centers. And best yet: These leads belong only to the dealership doing the advertising, and are not shared like those purchased from third-party lead providers. In other words, display advertising generates good-quality leads from “in-market” consumers interested in what your dealership has to offer, not some generic inquiry made by a consumer who doesn’t really know what they are looking for or who they want to buy from. With the killer combination of the right message, the right placement, and the right marketing strategy, automotive retailers make every online ad initiative pay off with increased sales and profi ts in all areas of the dealership. The power behind the optimal digital advertising solution includes a premier advertising network, which encompasses hundreds of popular Web sites to accomplish the following:

• Provides maximum exposure for your dealership

• Generates high lead conversion rates • Provides geographic and demographic

optimization• Guarantees premium placement on

the sites your shoppers visit most frequently

Every dealership must spend money to sell cars, and that’s why successful dealers are realizing that online marketing provides the best return on investment and are shifting budgets from traditional media to online initiatives including digital advertising. You do not have to increase your advertising budget to take advantage of digital advertising — you just have to allocate your current budget in the areas that will draw the most attention to your Web site and leads to your store: the Internet.

3. Implement a Live Chat Service to Build a Stronger Bond with Dealership CustomersMore than 30 percent of the Internet leads go unanswered by an average dealership and 23 percent of online car shoppers took their business to a different brand due to unresponsiveness. To take advantage of these opportunities, dealers need a cost-effective way to keep in touch with consumers. With a Live Chat solution, customers get the same engaging experience online as when they visit the dealership. With most services it is a matter of simply adding a “Chat” button to a variety of areas on the Web site, and it is ready to go. In many solutions the “chatters” are part of an outsourced solution so dealers can establish this special communication channel without adding the cost of additional staff.

4. Use eNewsletters to Communicate Your Sales and Service Specials — and Cut Print and Mail CostseNewsletters deliver increased awareness that helps in developing a relationship with consumers, as well as providing them with current and relevant information that will drive more dealership revenue. Monthly content can include OEM-specifi c news, vehicle-relation information, service topics, lifestyle articles, regional news, monthly dealership specials and dealership custom articles.

5. Move Functions Such as Credit Approval to the Web In this economy, many car purchasers are struggling to get credit, but there is still a large group who can qualify. By utilizing a guided online credit application and pre-approval process for online consumers, dealers can improve F&I productivity while also generating qualifi ed leads. Some of the features of a successful online fi nance site include a “virtual presenter” that guides customers through the process of completing an online application from the convenience of their home, utilizing a secure environment for sensitive customer data, and a customer account that saves the fi nance application for review, edit or withdrawal.

6. Consolidate Your Vendors Many dealerships use as many as six or seven different vendors to manage their customer communications initiatives. By consolidating to just a few providers, dealerships not only save time in vendor

management, but also can take advantage of discounts by consolidating their marketing buys. The right dealership choice for a provider would be the vendor that can deliver an entire digital marketing system, not just the Web site with a few add-ons. When dealers purchase a holistic system provider, they can ensure that all of the prospect and customer management bases are covered, including the ability to fi nd consumers, bring them to the Web site, convert them into customers and continue to market dealership services to them in a tight closed-loop process. Another aspect of a successful vendor choice is how the provider can integrate all of the customer management interactions including phones, showroom walk-ins and service drive ups. Finally the right provider will help provide the tools and consulting that enable a strong follow up. Today, many of the consumers who provide information to dealers through the Web site are never contacted, leading to signifi cant lost opportunities.

7. Consider Your SearchEngine OptionsSearch is no longer a generic, one-size-fi ts-all offering. For example, there is Search Engine Optimization (SEO), in which the dealership tailors its Web content to improve rankings in key search engines. There is also Search Engine Marketing (SEM), in which special locations can be purchased to improve the number of consumers seeing the dealership links. The right combination of SEO and SEM can strongly improve the traffi c fl ow to dealer Web sites. The right SEO provider also utilizes the most advanced tools in the automotive industry including rules-based management (day parting and ROI Bidding), click fraud monitoring as well as aggregate campaign creation, bid management and reporting.

8. Improve LeadManagement Using the WebTo better manage Internet, phone and showroom leads, dealers can implement Web-based applications that allow sales teams to access leads and reports from anywhere

they can reach the Internet. These tools use Sales Force Automation (SFA) and Customer Relationship Management (CRM) functions to help take full advantage of their prospect and customer databases.

9. Measure Your AdvertisingMany dealers are enhancing sales performance and reducing cost per unit sold by measuring the effectiveness of their advertising campaigns with innovative call tracking and monitoring tools. This priceless information allows dealers to clearly see which ads are the least productive and which ads generate the most leads for the money. They rely on this intelligence technology to powerfully manage leads by utilizing a unique toll-free number with each targeted ad campaign that allows them to analyze results and micro-manage information about each initiative.

The implementation of any one of these ideas could have an immediate impact on your costs. By considering all of them, dealers can build a successful formula for weathering these current challenging selling conditions and setting up their dealerships for future growth.

Larry Cochran is the vice president and general manager of digital marketing for BZ Results. He can be contacted at 866.456.1296, or by e-mail [email protected].

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sale

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LOSSES INTO LESSONSFour Fail Safe Strategies

This article is written specifi cally for individuals who have a burning desire and a willingness to do the work in order to achieve at the ultimate level. I always laugh when you see a speaker ask this question “How many of you really want to win?” I’ve often wondered if the speaker really expected someone to stand up and shout out “Not me, man — I want to lose!” So, let’s accept that we all want to win. That’s really not the point, in my opinion. The key is simple: Wanting to and being willing to and actually doing what you must in order to be the best requires completely different levels of commitment. This article is about what you do after your losses. How do you respond? “The key is not the will to win... everybody has that; winners know it is the will to prepare to win that is important.”

— Bobby Knight

Now it is time for some straight talk from me directly to you. Are you happy where you are in your career today? Are you achieving at the level that fulfi lls you personally? Do you feel you are coming close to reaching your personal potential? Do others look up to you and admire whom you are and what you do as a sales associate, sales manager, parts counter associate, technician, general manager or dealer? Are you considered a leader at your dealership? What about in your state, region, country or industry? How far up the ladder of success must we climb before you become unnoticed? How far must we take the questions before your impact becomes so distant no one even knows your name? These are tough but fair questions for those who want the highest level of success possible. One more question: “Can you live with the pain of not fulfi lling yourself?”

“Pain is temporary. It may last a minute, or an hour, or a day, or a year, but

eventually it will subside and something else will take its place. If I quit, however, it lasts forever.”

— Lance Armstrong

Now it is time to explore the “Loss to Lesson” formula for success. I have shared this with many people and I will tell you only two percent take massive action and utilize the process. I am very proud of this select group of people because they are the students of mine who have accomplished miraculous achievements in many areas of their lives:

• A struggling salesperson on the verge of quitting who now owns his own dealership

• A dealer who had rampant turnover because he was abusive to his people who now owns multiple franchises and has garnered the love and respect of his people

• Fathers and mothers who had let their careers rob them of the joy of being real parents to their children, who today have reconnected with their families and found immense happiness.

This formula works if you follow the steps consistently and take action.

“Action may not always bring happiness, but there is no happiness without action.”

— Benjamin Disraeli

Loss To Lesson Formula

Change Your StateAnytime we experience a loss, setback or disappointment, it is only natural that it will affect our outlook and our emotions in a negative manner. For this reason, it is critical that we manage our state so we can be more effective and effi cient. Negative emotions rob us of our capacity to perform at a high level. The key is to interrupt the negative pattern and change your state into a positive emotional platform. Immediately

after the loss, do something that stokes your emotions in a positive way and then move on to Step Two.

Reduce the Loss to WritingFirst things fi rst, you need to go purchase a hardcover journal, unless you are organized and savvy enough to do this on your computer. Any time you experience a loss of any kind, a setback or disappointment, at the end of the day write a one-paragraph explanation of what happened. The key is to be brutally honest with yourself about what happened and why. Our goal is “to kill the loss monster while it is little” and actually turn the experience into a learning event.

Question Up The EventThe next part of the formula is to answer these questions about the events or circumstances that created the loss, setback or disappointment. What did you do well this time? What will you do differently next time in order to produce the desired result? What will you never do again in order to produce the results you desire? What is the most important thing you have learned from this experience and how will you use it to produce better results in the future? Remember, when you ask better questions, you always get better answers.

Take Massive Action NowFrom the empowering questions and supporting answers you will fi nd pearls of wisdom. These pearls of wisdom will allow you to reduce your future mistakes and avoid the pitfalls that created previous losses. Unlike most people, you will actually benefi t from your losses because you will see the power of the lessons contained within each loss. The key is to take massive action on what you learn from the loss.

Paul Cummings is president and CEO of Paul Cummings Enterprises. He can be contacted at 866.865.3171, or by e-mail at [email protected].

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By the time you read this, many changes

will have recently taken place: our country will have a new Commander In Chief, new lawmakers will have been elected, the NASCAR season will be over and hopefully our country will be well on its way to a full recovery. One thing will not change: Thousands of prospects will continue trying to arrange credit in hopes of buying another car. During the third quarter of 2008, the number of applicants has really not gone down; the number of approvals in all credit categories, however, has.

What does all of this mean to automotive industry professionals? It means that hard-working Americans still want and need good transportation, and we have to stop talking about all the negative and get back to basics of selling cars. This is not the fi rst time credit has been tight, and for sure it will not be the last. Just because it is tight, however, doesn’t mean that there is none available. Below are some tips to help navigate through the troubled waters of automotive sales and fi nance.

Consider New Finance SourcesNow is the time to look at every available fi nance company in your market. Yes, discounts may be high, along with interest rates. If you can pick up extra sales by adding companies that will work with various customers, though, it’s win – win.

Over Advances Are GoneThe days of fi nance companies advancing outrageous amounts are quickly becoming a thing of the past. We enjoyed that while it lasted, but now is the time to get realistic and realize that fi nance companies can no longer afford the losses as a result of over advancing.

Present an ApplicationThat Makes SenseSlow down, go back to conducting proper interviews, build a solid case as to why the loan should be approved, structure deals on cars the customer can afford plus deals that offer your fi nance company a comfortable position.

Overcoming Negative EquityThe best way to overcome negative equity is this: Right Car, Right Bank with Right Customer. When you put a customer in the right car and structure the deal with the right

bank, your chances are much greater.

LeadsStop buying from too many sources and stay with industry leaders. When you work with too many providers, duplicates will show up simply because consumers will go on multiple sites in hopes of getting a loan. Consider “in the market” leads that can be ordered with specifi c criteria and score ranges that fi t your fi nance companies parameters.

Cash Is KingStop being afraid to ask for cash. If a deal is structured on the right car a customer can afford, and the fi nance company can see that the applicant has made cash investment, it becomes much easier to gain an approval.

Buy SmartWhen purchasing inventory, look for vehicles that work for your fi nance companies and offer reasonable payments for customers with all types of credit history. Remember that high payment does not always equate to high gross!

Positive AdvertisingAll advertising should let customers know you have credit available for all types of buyers. This sends a positive message at a time when consumers are being told by the media that credit is not available. Make sure you put your toll-free loan by phone number on all ads so calls are not missed overnight.

Look For Ways To Get Deals DoneStop thinking about how many are turned down; start looking at ways to get more approvals and deliveries. Ask for cash, co-maker, pick the right car that puts your fi nance company in a good position, make terms attractive and, fi nally, learn enough about your customer’s credit history so you can present reasons why your underwriter should consider some type of approval.

In closing, we all know that 2008 was, at best, a diffi cult year; there remains, however, a market to sell vehicles and dealer professionals who work smart and are not afraid to change. These professionals will continue selling as they have for many years.

Paul Snider is the CEO of Voisys. He can be contacted at 866.492.9209, or by e-mail at [email protected].

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CHANGE – THEONLY THING THATREMAINS CONSTANT

17

the #1 sales-improvement magazine for the automotive professional

Now is a good time to realize that there is an

additional business within your dealership that is mostly untapped. If not now, when is a good time to bring additional fi nancing to a new level?

The realities car dealers must face during the next several years will force them into diversifi cation. Remember when the fi nance and insurance department was a new idea? “Unheard of — it will never work!” Did you ever hear those statements?

Now the F&I department is a constant profi t center. That was an additional step for your company and added additional income to your dealership.

So, what is the next step in the fi nancing world? A fi nance company within your dealership. Dealers who are proactive will likely fi nd a way to succeed. Those who wait for new cars to come back to previous levels may have a long wait. So now is the time you should consider an additional business in your fi nancing department.

Per NADA, average profi t in a new car dealership for 2007 was 1.5 percent of sales. Yet many well-run successful “buy here, pay here” dealers returned many times that percentage.

Many franchise dealers are revisiting what they previously decided against: diversifying into additional fi nancing via the “buy here, pay here” non-prime fi nance business.

The opportunity for exceptional returns has never been greater. The credit-impaired sector of our economy is growing at a record pace. The Washington Post says that personal bankruptcies increased 40 percent last year, and this year likely won’t be any better.

The traditional secondary lenders are gone. Plenty of new car buyers are getting turned down who would have been an automatic approval months ago. Where does that leave the credit-damaged customer? These people don’t want to walk to work, and don’t want to take the bus, even if they could. There is a void, and you can be a part of a solution —instead of having an additional void within your dealership — if you know how to attack it.

You know what it takes to open a new car dealership: a great facility located on the right real estate, plus capitalization to run the store right — you need a lot of money to get into business. A “buy here, pay here” dealership can be opened for approximately $750,000, with some of that investment dedicated to acquiring used car inventory. Ask any dealer today, and they’re tell you that new car dealerships are dependent on their manufacturers. Profi tability is directly affected by inventory availability. Non-conventional fi nancing dealers are not accountable to a manufacturer and are free to specialize in their own segment or segments of the used car industry. What you stock can be based upon customer demand, not quotas.

All of your customers want to get a vehicle,

sale

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ADDITIONAL BUSINESSWITHIN YOUR DEALERSHIP?

and the vast majority will need fi nancing to get it. All your customers want to improve their credit at the time of sale. When the customer cannot buy from your dealership, they go somewhere else and get a vehicle. You don’t have to say goodbye to all your credit turndowns. Who should get the additional business? You or someone else?The biggest fear most dealers have is how to set up and stringently follow the correct processes and procedures that avoid disaster and allow success. Dealers should have that fear, they should know that “winging it” won’t work, and they should be prepared to seek experts who know the best practices and proven methods.

The risks can be high, and a dealer needs to make sure he or she has a system that is proven, and then make sure it’s followed to minimize this risk. Going forward, some will take a new fresh look at this part of the business. Will you?

Richard Vanderport is the president of Lender to Lender Franchise System.He can be contacted at866.455.1671, or by e-mail [email protected].

18


Unfortunately, the ups and downs of the

market have become all too familiar these days. As the media continues to hint at the possibility of recession, the American consumer (and in turn the American dealer) have been coerced into tightening their spending until things “get better.” Yet the truth is that no one really knows when the outlook will improve and consumer purchasing will strengthen.

To be honest, this market has placed the American public in a real life Survivor situation; complete with challenges which test the patience of each American consumer and business owner. So how does one outwit, outplay and outlast when things appear to be so dismal? It’s all in how you look at it.

Over time, my company has come to live by 151 different rules which help us overcome the challenges we face on a daily basis. Given the current state of the economy, I have singled out a few key rules below, which have helped us continually work toward success.

Attitude CheckWe all know that attitude is everything, and in today’s market, this couldn’t be truer. With the continual outpouring of negative media, it’s hard to separate yourself from the downer mindset that seems to be an increasing trend.

Rule #45: The only thing you can control is your response. In this case, one person or business cannot control the current market conditions. However, we can control the way we respond to them. Negativity is an infection on the verge of an outbreak. Protect yourself and your staff by refusing to give in.

Rule #23: Speed of the leader = speed of the team. If the speed of the leader equals the speed of the team, believing that there’s

nothing you can do to drive traffi c or get deals bought isn’t the mindset that will keep you charging forward. You get out of it what you put into it. If we opt to believe that everything’s impossible, we’re going to be in for a bumpy ride. Instead, take the road less traveled and put faith in what seems to be impossible.

Believe it or not, there’s opportunity out there. The trick is that you have to look a little harder these days to fi nd it. Rule # 26 touches on this point by stating: If the competition is doing it, do the opposite. As companies decrease their advertising (or decide to close their doors), coveted market share goes up for grabs. For those dealers who have embraced the power of a positive attitude, this provides an excellent opportunity to try a different marketing approach and capture competitor’s market share when they are defenseless against it.

When Only the Best Will DoIt’s no question that your best sales people are your greatest asset. Yet when dealership traffi c begins a steady decline, how do you hold on to your MVPs?

Don’t let yourself give up and don’t let your team give in. It’s true that things aren’t as ideal as they used to be, but it is the manager’s responsibility to keep their sales force motivated, especially when times are tough.

Rule #49: Movement equals improvement. Consider looking into “momentum boosting” advertising campaigns aimed at driving traffi c to your store. The burst of activity these campaigns provide will reignite some excitement on the sales fl oor, which is a step in the right direction when infl uencing the attitude of your team.

Rule #20: When you want it more than they want it, it is time to let them go. While eliminating salespeople is often a diffi cult

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OUTWIT, OUTPLAY AND OUTLAST THE CURRENT MARKET

task, there are times where it is a necessary step. Rule # 42 describes this best by stating: It’s better that one person perish than the whole team go down in fl ames.

It’s Got To Be GuaranteedWhile there are infi nite ways to reach consumers in the new marketing age, not all opportunities or ideas are created equal.

Rule #71: Ideas don’t work; people do. Look to partner your sales and marketing efforts with companies that are willing to put their services on the line with money-back guarantees.

These guarantees not only create security for your fi nancial investment, but also act as a key differentiator between run-of-the-mill sales and marketing companies and those which are truly confi dent in the solutions they provide.

In general, guarantees act as a win-win for the dealer and the marketing company. Dealers gain return on investment (or their money back), while the marketing company gains the opportunity to put their proven programs to work, generating movement within the dealership which in turn creates improvement overall.

In The End…In the long run, the market’s effects are only as bad as you make them out to be. Constant negativity will produce no positive results. Consider the effects of a negative attitude on the performance of your store. Trust in guaranteed advertising to make your investments worth while and you’ll see results that will keep your greatest assets (your people) working toward success.

Matt Baker is the vice president of sales for G&A Marketing. He can be contacted at 866.618.8248, or by e-mail [email protected].

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JohnBrentlinger

WIN BY PUTTINGYOUR PEOPLE FIRST

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We are now down to the last line of

defense in making dealerships profi table. Manufacturing is down, the market is soft, traffi c is sporadic and buyers are waiting to see how low prices will go. If you’re struggling with what to do or which direction to take, I propose that that you have one of two options. The fi rst one is disastrous; the second one will work, if you have the courage and self-discipline to see it through. Option Number One: Panic. Look back at the last recession, see how long it lasted, how deep it went and what cuts you had to make to get through. Then, just do what you did the last time. Start with the manager who has been with you the longest, has been the most loyal, and decide that it is his fault. Fire him. Wow, the bottom line looks better already. Then go to the next manager who has been just as loyal, worked just as hard, given the best years of his life to you, sacrifi ced time with his family, his wife and kids because you told him that was necessary for him to advance his career. Fire him too. Looky here, your bottom line is looking good. Keep paying yourself the same money, of course; the only trick here is to make the bottom line look good. Then start with the salespeople. Fire the ones you were tired of anyway, you know, the veterans who just wore out their welcome, the ones who just don’t have the fi re they did 20 years ago. Don’t let personal feelings get in the way. Don’t think about all the plans in their life which didn’t happen because they put you fi rst. All that matters here is your bottom line. Don’t worry about the lives and families of those who have given their life and times to help you get where you are now. After

all, they’re just salespeople, they’re just managers, they are expendable. Remember, they’re a dime a dozen, as soon as the little blip in the economy is over, you can go get you some more salespeople and managers. They of course will get the same speech. “If you are loyal, if you are committed, if you are serious about coming to work for my dealership, if you put your family in it’s proper place, dealership and work comes fi rst, you will be rewarded later.” Yeah, great speech, that’ll work, should have done it six months ago. Know what? You’re a disaster and what goes around comes around. That’s option number one. Option Number Two:This is your last and best option. All the foundations we thought would always be around are gone. All you have left are your people and your customers. That’s it. You can’t count on anything else. You can’t count on your advertising, your Web site, your Internet leads, your walk-in traffi c, your out-of-town closers, your huge sales, your consultants or your location. All you have left is your people. You want to stay alive? Then put your people fi rst. Your managers, your salespeople, your offi ce people, your techs, your detail, all of your employees, your people — put them fi rst. You want your people to put their customers fi rst don’t you? You want your customers to be treated like family, don’t you? How in the world do you think your people can put the customer fi rst if you don’t put them fi rst? You have only two things to sell — the product and the experience of buying the product. If you want your people to give your customers a good buying experience, then your people must fi rst have a good experience to share with their customers. And that is your responsibility. It is the responsibility of your managers. If you

must fi re someone, fi re all the managers who are jerks with your people. A jerk in management or leadership can ruin your dealership. Stop hiring jerks. Stop letting jerks manage your people. Stop looking the other way. Stop saying, “But he’s good for the bottom line.” Screw the bottom line, because you won’t have a bottom line to worry about if you keep letting jerks run off your good people. The days of terrible management and poor leadership are about over. How you treat your people over the next 18 months will determine who stays in business and who does not. Loyalty in a dealership works two ways. Get to know your people. Learn how to help your people. The job of every leader is to make sure that your people reach their full potential. Learn as much about your people as you want your people to learn about their customers. The market for good salespeople and good managers is shrinking fast. Find a way to train your managers to get the most and best out of the people who have been loyal to you for all these many years. Cut anything and everything but your people. Put everything on the block except the honesty, loyalty and dedication of those who have spent most of their adult lives in your service. Take care of them, teach them, be patient with them. Train them by example to serve better, help them become all they can be. If you take this option, your bottom line will take care of itself. Put your people fi rst, they in turn will put their customer fi rst. You can be proud of this option, and this option will keep you in business.

John Brentlinger is a sales and management trainer, executive coach and author. He can be contacted at 866.859.6504, or by e-mail at [email protected].

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26


Seems it’s getting easier to be cheesier.

Feeling down is up and down and out is IN. There’s lots of talk about how bad or down or sad or off “things” (meaning you?) are now. Let’s review….

What’s the prevailing mood in the marketplace right now? The amount of negative attitudes and information must be approaching some all-time high. And there is certainly a time to address negative news, but there is also a right time and place to do it.

And if that’s true, then there is most certainly a time and place to read, listen, hear and speak positive messages that get us and the people around us focused on positive results. Without focusing on positive actions and attitudes, selling has gotten just plain sloppy.

I’ve seen it over and over in the past few weeks. Salespeople and store clerks and servers and owners, all negative and not-paying attention to paying customers, or those trying to become paying customers.So don’t underestimate insulating yourself from all the negatives around you. Does attitude matter when it comes to profi ts?

Recently in a selling publication, Mark Victor Hansen, co-author of the Chicken Soup for the Soul book series that has sold over 120 million copies to date, was featured in an interview with the headline, “STAY POSITIVE: It’s the Only Way to Win!” Suppose he knows anything about winning and selling?

When it was easy (whenever that was, you decide) sales rocked along, managers stopped training to do more managing.

Now it’s not as easy; conditions have changed in the market and most selling professionals are unarmed and unprepared, proposing little more than price incentives and giving little or no or sloppy presentations.

As a consultant and coach for selling organizations and masterminds, I’ve asked the leaders and managers of an insurance company, a business machines company,

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WELCOME TO THE MARKET-PLACE OF SLOPPY SELLING

a chemical and janitorial company and a media company to put fi ve of their selling professionals (“professional” just means you’re doing it for pay — look it up) in the front of the group and sell me something. Actually, I asked them to give me the fi rst fi ve minutes of their “selling show” or presentation.

The results? Even from experienced and seasoned selling veterans — brutal! They stuttered and stammered and tried to “clever” their way through it, but the bottom line was that none of them had any idea how their “show” started. If we go to a Broadway play or some other show or concert, do you think they’ve rehearsed how it begins?

Right. And it begins the same way every time. It’s called “the Law of the Dress Rehearsal.” And it’s why parades are going on at 3 a.m. at Disney even though no one else is there. When the real show begins, everyone knows what to do, where to stand, and what to say. In acting, it’s called blocking and it usually involves a script. Not in sales, though; it’s all about experienced individuals winging it as they do that “hoo-doo-that-they-do-so…SLOPPY.”

Champions do the basics very well. Fundamentals win. And even champions can get sloppy with their fundamentals and forfeit their success.

Dale Carnegie, in timeless selling wisdom that most salespeople have never read or heard, once wrote that “It is useless to try and sell something to someone without fi rst having made them want to listen.”

Have you felt that lately when someone was trying to sell you something? For the next 30 days, take this test. Pay attention to how the selling presentation or the “show” opens. Just for the fi rst couple of minutes. You’ll see sloppy in action.

Unprepared and under-achieving selling professionals giving boring proposals or half-baked presentations that are little more than “Well, would you be interested at this price?” or worse “What’s it gonna’ take to get your business today?” Save your strength…not today, and not ever.

What can you do about it? For starters…

1. Stay PositiveFundamental to success and easier to do than buying all the negative stuff, especially when you’re trying to sell me something. Top performers get top pay, contrary to some of the “share the wealth” stuff you’re hearing lately. That is not how the free enterprise marketplace-of-ideas (and winning attitudes) operates. Profi ts are better than wages, and if you get better at winning profi ts and helping people buy, you’ll command more money for the value you bring.

2. Commit to Your Craft This one should be simple too. If selling is your chosen profession, how can you not be reading and studying and learning about the best in selling history and having a coach or mentor or teacher you’re learning from now? And if you’re depending on some manager to fi ll that role, you’re cheating yourself. Sometimes getting better means getting paid instruction. Buy some books, attend some seminars or maybe join a coaching or mastermind program – try it; you might be surprised how your investment pays off in greater sales and profi ts.

3. Don’t Follow the HERD People are sheep. For the most part, sheep do what other sheep do who are doing what they see other sheep doing. Don’t do it. Become uncommon; go upstream. if all around you seems negative, kick your attitude up a notch and see who notices.

If this list seems easy to do, that’s because it is. But it’s easier not to do, and that’s the option most will choose. If you’d like my short list on becoming uncommon as a selling performer, e-mail me at the address below.

Let’s help stamp out sloppy selling in our lifetime.

Michael York is a professional speaker, writer and business consultant. He can be contacted by e-mail [email protected], or visit www.MichaelYork.com.

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INTERNET SALES20 GROUP XIIThe 6th habit in Dr. Stephen Covey’s 7

Habits of Highly Effective People book is the habit to “Synergize.” Let me break that down for you. Synergy is defi ned as “two or more agents that come together are greater than their individual effect.” In effect, one plus one equals three. My favorite way to explain synergy to my children is to say that peanut butter is good, and jelly is good, too. But, if you put them together, they make an even better sandwich. Synergy is such a powerful word I chose it as half of my company’s name.

Unfortunately, most dealership’s Internet departments operate as silos in the dealership. They are an island. Even going into 2009, there is still not 1,000 percent (not a typo) buy-in. On the fl ipside, the ISM or Director has to MacGyver the department in order to keep things afl oat. I highly suggest that dealerships work more towards full cooperation and buy in from the top down in their stores. Have the entire management team involved in what is going on. Have the fl oor sales team work with the Internet team, making phone calls, setting appointments too, TOing deals, lost opportunities, etc.

I’ll give you an example. I have a large Honda dealer in Virginia that was tracking their “dead deals” from their Internet department. They were fl oored at just how many of these deals were getting deaded. The problem was that there wasn’t a high level accountability. Seeing this, the dealership created a process protocol that whenever an Internet coordinator deaded a lead, it went straight to one of the designated fl oor sales team members that went into lead revival mode. The result? They sold seven units last month due to lead revival initiatives.

Let me break down the math. Let’s say you have an Internet department that is buying or generating 500 leads a month. If you sell to 10 percent of these, or 50 units, you will have 450 leads left over. Some are bogus, some have bought elsewhere and about 250 to 300 will carry over to next month. So, you go into next month with 250 to 300 leads, plus that month’s additional fresh

500 leads. You are looking at a residual fl ow factor of 750 to 800 leads within 60 days.

Now, let’s go back to all of those leads that were dead for price, distance, trade, credit, bought elsewhere, no answer, etc. Who TOs those dead leads? Who verifi es that they really are dead? Who tries to revive them? For most dealerships the answer is no one. Let’s take it a step farther here for a moment. I have stores that are literally receiving thousands of leads per month. If you are a dealership that receives 1,000 leads a month, those probably cost your dealership about $20,000. If you close 10 percent, that will be 100 units sold, and 900 leads not sold. There were probably at least 450 leads deaded that month. That is $9,000 dead money. Multiply that by 12 and that’s $108,000 in lost money for the year. Doesn’t it make sense to have someone at least go over those leads, check them, and try to resurrect them? Just like there should be 100 percent TO on the showroom fl oor, there should be 100 percent TO in the Internet department.

Dealerships should create strategy for their Internet departments — their Internet Dealerships — that will utilize the resources of all of its team members, from the Internet coordinators to the Internet sales managers and directors, to the salesman on the showroom fl oor to all of the managers in the dealership.

With 87 to 97 percent of people going online before they ever step foot into a dealership, it is important that there is no us/them mentality between the Internet department and the rest of the dealership. There is no Internet department, but an Internet dealership mentality. There needs to be full buy in from top down, full communication and participation to maximize success for your initiative.

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at [email protected].

Start seeing your business differently.

Effective selling starts with great relationships.Your business is all about the relationships you build with each and every customer. By treating your customers as your most valuable asset, you can build relationships that promote your dealership and improve your profits. Visible Customer brings your customer database to life—helping you market to customers at a time and in a manner that matters. Start seeing your business differently. Start seeing your customers.

Get to know your customers at visiblecustomer.com/as or call us at 800-673-9870.

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Building an online reputation

through third-party review Web sites takes commitment and patience, but is important. More and more customers rely on the experience of other customers when deciding where to buy their next vehicle. The strongest reputations come

from authentic reviews provided by your customers. Dealerships need to work directly with customers to have them provide thoughtful, detailed reviews. There are several actions that you may take to help guide the customer toward writing a review about their experience at your dealership.

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GENERATINGMORE REVIEWS:Six Steps to Building Your Dealership’s Online Reputation

Make the AskFirst, simply ask. Encourage your sales and service team in face-to-face meetings and during phone conversations to ask customers to review your dealership on review sites. You may choose to hand out cards to all sales and service customers with a reminder of the review Web site addresses. The address information may be added onto the back of your business cards as a gentle reminder. Train employees about each review site and show them where to fi nd your dealership’s review page.

E-mail Reminders Follow the fi rst ask by sending customers an e-mail reminder. The e-mail may be a targeted e-mail or may be part of other service follow-up communication. By including a link to the review Web sites with the suggestion to “Add a Review” in your e-mail message, your customers will have the next step at their fi ngertips.

Promotional RemindersIncorporate the “Add a Review” message into existing printed materials. This suggestion may be placed on service reminder letters, promotional fl yers, desk toppers and showroom posters. You may consider adding a link directly from your Web site to the review Web sites.

Follow the RulesBe careful to adhere to the terms and conditions of each review Web site. Some maintain strict policies about family members of dealership employees writing reviews. Some sites will also fi lter out reviews that are written at the dealership.

Thank Your CustomersThank customers for taking the time to review your dealership. Respect customers who decide they are not comfortable adding their review comments and work with those who have had a negative experience.

Promote, Promote, PromoteAs you see your reputation building, share the good news. Promote your review status and review quotes on your dealership Web site, in printed material and advertisements. Customers will want to participate when they know their voice is recognized.

Michelle Oldershaw is the director of marketing for DealerRater.com. She may be contacted at 866.414.0058, or by e-mail at [email protected].

Our well-being and happiness are tied to

the notion that our lives can improve. We hope for a better future for our dealership and sales career, our kids and ourselves. We dream of a tomorrow that’s better and brighter than today.

Here are a few improvements many of us desire to see:

• We hope to lose weight and improve our fi tness

• We hope to earn more money and improve our fi nancial standing

• We hope to argue less with our spouse and improve our marriage

Over the next year, if we knew our health would deteriorate, our economic situation would worsen and our closest relationships would unravel, then we’d be depressed. In fact, even if we knew our lives would stay the same, most of us would feel unsatisfi ed. We’re always looking to improve the quality of our lives — it’s human nature.

Unfortunately, many of us never go beyond hoping for improvements to actually making them. I’d like to share some insights to help you improvise your approach to improvement both for your life and sales career.

Develop HabitsThe secret of your success is determined by your daily agenda. Leaders who make successful improvements share a common denominator: They form habits of daily action that most never develop. As my friend Andy Stanley says, “Your direction determines your destination.” The steps you make each day, for good or ill, eventually chart the path of your life.

Consider the analogy of saving for retirement. Financial advisers counsel us to invest for retirement early in our careers and consistently throughout life. If we do, we can quit working at 65 with a sizeable nest egg. However, if we neglect funding our 401(k) each month, then we end up with nothing. We may still “hope” to win the lottery and secure our fi nancial future, but we’ve lost the ability to control our fate.

Befriend DisciplineWe live in the ultimate quick-fi x culture. Everyone wants to be thin, but few people eat healthy and exercise. Everyone wants fi nancial stability, but many refuse to be bothered by a budget. Rather than trouble

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IMPROVISING YOUR APPROACH TO IMPROVEMENT

ourselves with discipline, we opt for diet fads or speculate in the stock market. When we don’t see long-term improvements, we discard one fad in favor of another.

In life, there are two kinds of pain: the pain of self-discipline and the pain of regret. The pain of self-discipline involves sacrifi ce, sweat and delayed gratifi cation. Thankfully, the reward of improvement softens the pain of self-discipline and makes it worthwhile. The pain of regret begins as a missed opportunity and ends up as squandered talent and an unfulfi lled life. Once the pain of regret sets in, there’s nothing you can do other than wonder, “What if?”

Admit MistakesWhen trying to improve, we not only risk failure — we guarantee it. The good news is that mistakes generally teach us far more than success. There’s no sense pretending we’re perfect. Even the best of the best have moments of weakness. That’s why it’s important to be honest when we fall short, learn from the mistake and move forward with the knowledge gained.

Measure ProgressYou cannot manage what you cannot measure. Identify the areas in which improvement is essential to your success and fi nd a way to track your progress. Keeping score holds you accountable and gives you a clear indicator of whether or not you’re actually improving.

Change ContinuallyContinual change is essential for improvement. One of the great paradoxes of success is that the skills and qualities that get you to the top are seldom the ones that keep you there. The quest to improve forces us to abandon assumptions, embrace innovation and seek new relationships. If complacent for too long, we’ll fall behind the learning curve. Once this happens, it’s a steep, uphill climb to get back to the top.

The desire for improvement has a degree of discontent in it. Personal growth requires apparently contradictory mindsets: humility to realize you have room to grow but also confi dence that improvement is possible.

John C. Maxwell is an internationally recognized leadership expert, speaker and author, and the founder of EQUIP and INJOY Stewardship Services. He can be contacted at 866.411.3222, or by e-mail at [email protected].

33


32


With any dealership marketing campaign,

gaining a better understanding of the results will show you where and what to plan for in the future — and likely gain more success for your business. This fact is true whether your campaign is in a newspaper or on your Web site — measuring results is a fundamental and essential part of any marketing effort.

Savvy dealership Internet and marketing managers have learned that paid (pay-per-click) ads on search engine sites yield more valuable visitors than free (organic) listings. In fact, a 2008 online retailers’ study conducted by Engine Ready showed that paid traffi c converts at a 20 percent higher rate and results in an 18 percent higher order value on average than free listings. The results of this survey — and a multitude of others — illustrate that using paid search has grown in prominence as an important component of successful Web marketing. However, while creating a pay-per-click campaign with one of the major search engine sites is a simple task, maximizing the return from one is fraught with challenges.

Maximizing the return on your paid search investment begins with knowing where Web traffi c comes from and whether it “bounces” or not. The answer is found in

Web analytics, which is simply the study of online behavior in order to improve it.

One of the better known – and free – analytic programs is Google Analytics, with

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other major players such as Omniture, WebTrends and Core Metrics. These major players deliver more robust data, but also require an investment to use their services. There are hundreds of analytic systems available today with varying degrees of data elements and cost. In fact, nearly every major dealership management system provider who offers a Web solution has a Web analytics system available with that solution. Selecting an analytics program and learning how to use it prior to implementing your paid search campaign is a wise investment of your time.

So what’s important to measure with an analytics system? In a word, everything! Every element of information has the potential to be of value in a Web campaign and needs be studied and analyzed. Here are a few key points to consider for measuring with your analytics system:

Conversion RateConversion rate speaks to the number of visitors that come to your site and act in a manner you desire out of the total number of visitors. For your dealership, this would include visitors who fi lled out a lead form, requested a bid quote, made a phone call or scheduled a service appointment online. You can effectively generate traffi c to your Web site, but if you cannot identify what that traffi c does once it arrives, you cannot effectively manage or grade the performance of your paid search efforts. Answering the questions “How many leads did we see out of our efforts?” and “How much did it cost to generate x number of leads?” will enable you to place value on the campaign, and tracking the conversion rate will accomplish this.

Tracking the Source of the LeadThe lead source can speak volumes about the quality of Web traffi c. Studies have shown that the most productive and profi table traffi c typically fl ows in this order:

• Directly to the Web site• From paid search traffi c• Other sites referral traffi c• Free (organic) traffi c

Additionally, search engine traffi c can vary in quality from one search engine to another, with one providing a signifi cantly higher level of productive traffi c than another, and even this can vary by region and industry. The use of a good analytics

system will uncover these trends and give you the ability to make the necessary adjustments to your Web campaigns, making them more effective and profi table.

Track the Performance ofKeyword-Specifi c Traffi cPay-per-click ads run on keywords, and the difference in conversion rates can vary dramatically from keyword to keyword; where one can sometimes deliver 200 to 300 percent more than another. Once you are able to evaluate the performance level of keyword-specifi c traffi c, you will be able to make adjustments to your bid rates and emphasis accordingly, focusing on the most cost effi cient and useful keywords. Keep in mind that the more productive a keyword is the more you should be willing to pay for it, and that any non-performing keywords should be eliminated from the campaign.

Working with a good analytics system will also help you identify keywords that current customers are using to fi nd your site through organic search, and can help you identify keywords used on your site’s internal search engine. Using these search terms in your pay-per-click campaign will give you the opportunity to capture new customers similar to your existing ones.

Paid search is an extremely effective way to market your dealership, but it’s only as good as your performance tracking tool. If you don’t know the results you’re getting — and why — from your Web campaigns, then you are wasting money and opportunity. Proper use of an analytics tool and ongoing performance assessment will help dealership Internet and marketing managers generate value for their dealerships, and better understand what works for their business. Spend time getting to know and understand your analytics system of choice. Review the information on a daily basis. Modify your campaigns accordingly, and, ultimately, add more to your bottom line.

That’s what any marketing campaign is all about.

Al Carl is the search engine optimization (SEO) / search engine marketing (SEM) product planning manager of Web Solutions at Reynolds and Reynolds. He can be contacted at 866.406.8374, or by e-mail at [email protected].

GET A GRIP ON YOUR MARKETING EFFORTS:Tips for How to Better Manage Your Web Analytics

34


“So what’s important to measure with an analytics system? In a word, everything! Every element of information has the potential to be of value in a Web campaign and needs be studied and analyzed.”

36


Most would agree that things in our industry

are pretty ugly. We all know our industry runs in cycles, but this speed bump is one that many of us hoped to avoid. As with any speed bump, you want to slow down and decide the best way to approach it.

Dealers are falling into two camps on their approach to the situation. The fi rst camp is the dealers who are hunkering down, cutting staff, advertising and generally being very cautious with their business. Essentially they’ve taken a “bunker mentality.” The second camp seems to be using this time as an opportunity to build on their strengths and look at this market to enhance training, and to build or re-build their teams to be more effi cient and productive. These dealers are also looking at their most important asset; their customer base. They know by keeping more of their customers they can gain a larger “share of wallet” and keep revenue growing.

NADA says the biggest expense and income opportunity in your dealership is the attrition of your customer base. This is one of the best places for dealers to focus their energies and resources. Did you know that only 50 percent of your delivered vehicles are ever likely to return to your dealership and that only 20 percent of your sales customers will be converted into service customers? This clearly creates an incredible opportunity to reach out to these customers.

By increasing the number of service customers, dealers build a steady revenue stream and research shows 86 percent of service customers create repeat sales for the dealership. Too often marketing and advertising efforts focus on new customer acquisition which costs around $500 to $600 per vehicle sale. This strategy quickly becomes very expensive to maintain. Instead of using the “Find Me . . . Sell Me” focus, dealers need to develop a “Know Me . . . Help Me” perspective. We’ve seen

dealers get much more dramatic results with this approach.

Customers in your database, and thus accessible to marketing efforts, are the “low hanging fruit” and a natural place to start your efforts. First you must identify where they are in the lifecycle of owning the vehicle and establish their current needs. When you recognize these needs before the customer takes action, you have the power to change where their money is spent. Own the customer and you own the opportunity. Own the opportunity and you have the power to change your business.

While the basics of this type of marketing are pretty simple, you need to overcome and address some of the regulatory hurdles and identify a process to put the right offer in front of the right customer. Federal Do Not Call List and Spam rules must be followed or the penalties can be steep. You also want to respect the privacy of your customers and communicate with them in the most effective manner. House cleaning should be the fi rst rule of the day. Clean up the records in your dealer management system. The average dealership has about 21,000 customer records, but upon closer analysis and after removing duplicates and invalid records the list fi lters down to an average of 15,000 valid customer accounts. Sending any marketing piece out to a full list of customers in your database before you clean it will generate thousands of dollars in wasteful marketing expenses.

Some dealers just pull a list and send out discount coupons for various services or sales promotions; but how do you think your customer feels after buying three trucks from you over the last few years and you send a fl yer promoting cars with factory rebates this month? Or what about the coupon for the $9.95 oil change trying to be redeemed by the diesel truck owner, and he is told, “Sorry that coupon is only for small vehicles and light trucks”? Does that endear

you to the customer? Again it comes back to the “Know Me . . . Help Me” focus.

It is critical that you customize each offer you make to your existing customers. This accomplishes two things. First, it shows your customers that you know what they need, and second, it shows you know who they are and that the relationship is important to you and them.

To begin the marketing process, you need to establish clear goals and a schedule to reach out to these customers. That means developing a campaign schedule so offers will be triggered based on seasonal needs, anniversary of purchase dates, estimated mileage services, lease termination dates, F&I opportunities, and, of course, regular service reminders.

If you choose not to do all this in-house, be sure you select a vendor to provide you with easy to read and frequent reports, accessible dashboards, and a thorough process to target and follow up on the results of each campaign and the revenue generated from these marketing efforts. The overall goal is to increase the loyalty of your existing customers. Remember you spent $500+ in marketing costs to get them in the door; and on average customers in the service department spend about $300 per year — that’s an $800 value per customer. If you have 15,000 customers in your DMS and you lose 10 percent that’s 1,500 customers lost. Now let’s do some quick math: $800 value per customer times 1,500 customers lost means your dealership takes a hit to the tune of $1,200,000 annually.

This certainly shows how valuable time and energy spent in retaining customers and keeping them loyal to your dealership pays off in big dividends.

Sean Stapleton is the executive vice president of business development for Visible Customer. He can be contacted at 866.406.6337, or by e-mail [email protected].

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RichardF.Libin

TURNING NON-BUYERSINTO BUYERSEvery sport has a scorekeeper and

statisticians. In baseball, they track the pitching and the hitting. In basketball, they keep record of the missed and completed fi eld goals, fouls, turnovers, steals and blocked shots. In every sport, scorekeepers and statisticians keep track of every opportunity to score that succeeded or failed.

In the automotive business, the “scorekeeper” and “statistician” typically only track the number of cars sold, and not the customers that left the dealership without buying. Yet, people don’t come to dealerships unless they intend to purchase a car. So, keeping an accurate score of the dealership’s and salespersons’ performance is a valuable tool, one that can turn failure into success. Unfortunately, dealers often treat this process like a spectator sport.

Why Did the Customer Leave Without Buying a Car?Since every customer represents an

opportunity to close a deal, it’s important to understand why a potential buyer leaves without completing a purchase. With this information, you can understand and correct any missteps, and develop a game plan to bring those customers back into the store. Every dealership should have a customer log to keep track of customers and to see either why they bought or not. Was the customer greeted properly and promptly? Did the salesperson capture critical information needed for follow-up — not just one phone number, but all the information? Did they salesperson help the buyer identify the right vehicle? Was the car demonstrated? This information helps identify mistakes and challenges, and enables managers to adjust processes and tailor training to continuously improve future performance, and even entices “lost” customers to give the dealership a second chance.

Bringing Them BackA simple follow-up call can further identify

why customers didn’t buy, and could even be the catalyst that brings them back into the dealership to fi nalize the sale. This brings up three questions:

1. Who Gets Called? Who Doesn’t?It’s simple. Every single non-buyer that came into the dealership should receive a follow-up call. The priority of these calls is critical and every call should be prioritized — A, B, C. First on the list, the “A” calls are those that received pricing before they left. “B” calls are those that completed the demo drive but did not get a price. Finally, the “C” calls include everyone else.

2. Who Makes the Call?This depends on how far into the sales process each prospect had come. If price was an issue, the manager, a new voice, a friendly ear, should make the call. Why? If the salesperson was involved in presenting the price, and the customer walked out because it was too high, the fi rst question the customer will ask the salesperson is,

“Did you get my price?” This creates an un-winnable situation.

If the manager makes the call, he or she can ask, “I understand you were in our dealership today, but you didn’t purchase a car. I’d really appreciate it if you could tell me why.” This starts the conversation, which a skilled manager can use to make an appointment to bring the customer back into the dealership.

If price was not the issue, then the salesperson should make the follow-up call. Often salespeople are hesitant to make these calls for fear of rejection. What’s the worst thing that can happen? Some customers will hang up; some will criticize the salesperson and dealership; some may have already bought elsewhere. But, even if one decides to come back, the salesperson is that much closer to scoring.

3. When Should the CallTake Place?Every customer who has been given a price should get a call back to see what can be done to get him or her back in the dealership within 24 hours of the time the prospect left the dealership. Better yet, call within the fi rst hour after the customer leaves. Always go for an appointment and try to create a be-back. Many dealerships have their business development centers (BDC) call and/or send a form letter to every prospect that came into the dealership. Then, after a few days, the BDC may make personal contact with the prospect. Unfortunately, if the customer took the time to come to a dealership, he or she had a need to purchase a car, and allowing time to pass before following up is like fumbling and giving the competition the chance to score.

If the follow-up call does not get the customer back in the dealership immediately, salespeople should put together a follow-up strategy that keeps the dealership in the forefront of the customer’s mind, brings the prospect back and nurtures the relationship. It is important to keep in mind that not every customer buys within the fi rst 24 hours. The strategy should include a follow-up letter sent three or four days after the phone call. If on the call the customer indicated they didn’t want to make a purchase, the salesperson needs to nurture the opportunity. He or she should try to fi nd out could have been better about the experience and apologize for anything that may have gone wrong. This helps the dealership — and the sales person — save face and creates an opportunity to keep the customer as a prospective buyer and source of referrals. The salesperson should then follow up with a note — a thank you for thinking of the dealership, coming in, etc. Then, the salesperson should call them a

few days later to test the waters again. If nothing has changed, it’s critical to add the customer to the prospect database and the salesperson should include them in his or her prospecting campaigns.

For every 100 customers that come into the dealership, 15 will automatically buy and 10 are unrealistic and will not buy a car; but the other 75 are non-buyers, which presents the biggest opportunity. These are people that have just started to look for a car and people that will say that they are glad to have bought a car today as they are driving out of the dealership, even though they never thought they’d actually purchase on the spot. The

biggest opportunity to maximize business is by turning non-buyers into buyers. How do you make sure that as many of those 75 people as possible buy a car? Keeping score, tracking the statistics and implementing simple follow-up techniques helps evaluate your performance and draw the customer back into the dealership. Remember, we have as much business behind us as we do in front of us. Why leave money on the table for another dealership to collect?

Richard F. Libin is president of Automotive Profi t Builders, Inc. He can be contacted at 866.450.6853, or by e-mail [email protected].

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www.autosuccessonline.com NADA Booth #5247

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THE BEST PRICE GUARANTEEBack in the early 90’s, I was training a

large dealer group in Minneapolis. While training a negotiating class one morning, I was bombarded with this objection: What’s your best price? After responding with what I felt were my best price closes, I could tell they simply weren’t buying it. In fact, the body language of one of the managers sitting in the front row, the look in his eyes, told me he had little faith in the closes I was using.

He spoke up and said, “OK. What if I’m the customer and I say, ‘Is that your bottom line price? If it is, I’m leaving.’” With conviction, I rattled off the following close: “No problem. You won’t have to wait to enjoy your new car. At our dealership, we have a best price guarantee. If you fi nd a better price over the next 30 days, we will refund you 150 percent of the difference. I just need your OK right here.”

After a moment, the new car manager said with a smile on his face, “Now that’ll work.”

When it comes to making a buying decision, consumers are becoming more and more attracted to guarantees these days. The idea that the vendor and manufacturer should assume some of the risk in the quality of a product or service plays a major role in consumers’ decision-making process. Have you noticed that each year brings more and more advertising slogans, that shout: “We will beat anybody’s price”? The money-back guarantee tactic is especially in style. Surely, you’ve seen tactics like these in action.

“30 minutes or less or it’s free.” (Dominos Pizza)

“We’re so confi dent you’ll like Calis, if

you don’t we’ll pay for the brand of your choice.” (The Calis Promise Program)

“If you are not completely satisfi ed with your purchase, simply return the products and we will refund you 100 percent of the value of the returned product, including the shipping cost.” (Canadian pharmacy)

“If you fi nd a lower price, we will give you a Corvette for free.” (BH Chevrolet)

Many years ago, while shopping at a local Wal-Mart I noticed a return policy board displayed in the returns department. The last item on the list read, “We will match any competitors price.” Now bear in mind that, back then, not too many people were promoting price matching. I realized, customers are looking for the dealer or retailer to assume some of the risk.

The old, 30-day money back guarantee in retail industries is simply not enough. In today’s market, the customer must feel that the dealer has more to lose. A great example of this is the use of extended warranties, backed by the dealership. They instill trust in the mind of the consumer and compete effectively with other brands that offer longer warranties. “Tires for life” programs and three-day return policies all add value and create a lose-win environment that make it more comfortable for a customer to make a decision.

A risk on the dealer’s part is essential. How much risk is too much risk, you ask? There’s no answer for that, because the positive result of such a risk is really measured by the behavior of the consumer. And that starts with understanding that very few people will ever take advantage of a best price guarantee offer. The reason these practices work is because most consumers never

take you up on the offer. A friend of mine used to be in the rebate coupon business. He tells me that less than 18 percent of the mail-in rebates were ever used by the consumer. This has proven to be even lower in many retail operations, resulting in minimal risk for the dealer. Research shows that the odds of someone actively shopping for a better price after the purchase are almost nonexistent.

Both the manager in Minnesota and I knew that the close I offered and ones similar to it from other companies would have to follow specifi c guidelines in order to meet with dealer approval.

A few of the dealerships that use some version of this type of policy are not using it properly. There must be a policy in place as to when and how to use the best price guarantee close. First, you shouldn’t advertise it unless it happens to be a part of your branding, of which I personally am not a fan. I believe you should build value in the product, and then establish a price that refl ects the perceived value. Second, it should be used as a last-effort close, and for the most part by a manager. Third, it should be revisited with the customer in the F&I department, with the terms and conditions of the offer fully disclosed and in writing. This will instill confi dence in the mind of the consumer that the offer is valid and helps reduce any pre-buying remorse.

It’s been said that a good deal is a frame of mind. With the best price guarantee, you can help the customer have peace of mind and feel better about giving your dealership all 10s.

Marc Smith is the president and CEO of Marc Smith International LLC. He can be contacted at 866.665.4479, or by e-mail at [email protected].

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Recently, a sales manager was

complaining about the lack of sales. While he thought now would be a good time to “upgrade” his salespeople by replacing the low-performing salespeople with better ones, he dreaded deciding who should be replaced. The solution seemed simple, “Start with the low man on the totem pole.” To which he replied, “But my totem pole is horizontal!” With today’s business challenges, you may not think it’s a good time to hire, but now is the best time to plan for your future by making sure your team of employees is the best available.

Attracting the best people for your dealership is becoming a more sophisticated process. To attract and retain the best, you need to brand your dealership. Branding isn’t just about your sales departments; it’s also about defi ning your “Employment Value Proposition” (EVP) — a statement of why the total work experience at your dealership is superior to that of other businesses. First, let’s examine why employees leave a place of employment.

Eighty-eight percent of employees leave organizations for reasons other than money. The top three reasons talented employees leave are: 1) 39 percent leave because of limited opportunity for advancement, 2) 23 percent are unhappy with management, and 3) 17 percent leave because of lack of recognition. Inadequate salary and benefi ts comes in at fourth place with 11 percent,

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according to a March 2004 Robert Half International survey.

Because compensation is the most quantifi able measure of value a company places on the employee, it is easy to see why managers mistakenly believe the primary reason employees leave an organization is for a higher salary. If you want to attract the right talent, you need to shed that mentality and develop an EVP that will help you attract the best people.

To develop your dealership’s EVP Brand, start with the question, “What would we do, or say, to attract and retain people if we had to pay 20 percent below market?” To help you answer that question, review the fi ve main categories that drive an individual’s satisfaction with their employer:

• The organization’s success and reputation

• Development and advancement opportunities

• Work/life balance• Rewards and compensation• Most important, the quality of the

people who work there

To brand your dealership, which of these categories are most important to your employees and to the people you are trying to attract? If you don’t know, conduct an employee survey to fi nd the answer. Next, apply what you’ve learned about your dealership’s strengths and weaknesses, and decide on the message you want to send to

those you are recruiting. Your messaging must be accurate and truthful if it is to have credibility. Don’t sell work/life balance if your dealership cannot deliver it.

Once you’ve determined your Employment Value Proposition, use it in your quest for attracting the best employees. Use key points of your EVP in your help-wanted ads. Would your Web site promote “passive” job seekers to start thinking about working for you? If your Web site has a “career tab,” does it spell out to potential employees why working for your dealership is a good career move or does it simply say “Here, fi ll out this application”? Do you have enough good reasons to work for your dealership to create a brochure to hand out at job fairs, training schools or to have a recruitment table at racing/sporting/little league events?

Developing an employment brand will help you attract the people who will feel at home in your dealership. This should also make it easier for you to retain them. A focused employer brand development effort takes patience and commitment. Stop bribing people to work for you, and start defi ning what makes your dealership special. Given the competition for the best talent, the results will be more than worth the effort.

Brooke Samples is the COO of Dealer Service Corporation, a division of NCM Associates. She can be contacted at 866.618.8377, or by e-mail [email protected].

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