autosuccess jan05

.biz.biz.biz

January 2005

a division of Systems Marketing, Inc. www.autosuccess.biz

756 South 1st StreetSuite 202Louisville, KY 40202

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PAIDLOUISVILLE KYPERMIT NO 879

A SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIA

Tasca.com

Earnhardt.com ParagonCars.comHerbChambers.comHouseofCourtesy.com

Schomp.comDickHannah.com

RedMcCombs.comDaveSmithMotors.comSheehy.com

� BZ Results 3124

� J&L Marketing 4731

� Dealix 5415

� Autobase 4819

� TimeHighway.com 4430

� The Joe Verde Group 931

� ProResponse 3058

� American Auto Exchange 5755

� Ultimate Warranty Corp. 1411

� The WolÞ ngton Group 527

Autobase, Inc. has provided the automotive retail market with premier customer relationship management (CRM) solutions since 1988. Autobase Sales Center�, the ß agship of the Autobase suite, is now in its sixth generation of development, boasting 17 years of successful implementation in dealerships of every demographic. Over 15,000 auto professionals go to work every day and use Sales Center� to sell more cars. Newly-released and already manufacturer-endorsed for it�s innovative approach to business development, the Autobase Loyalty Center� is the most recent addition to their suite of solutions. Their rich history, strong reputation, comprehensive industry knowledge, and pioneering work in feature-rich CRM and BDC technology have long impacted the bottom line for proactive dealers nationwide.

ProResponse, Inc. CRM with proven results, represents nearly 300 dealers nationwide. Their services are geared toward total showroom control with ProScan® Touch Screen driver�s license reader, prospect tracking (phone, ß oor and Internet), and sold customer follow-up for Þ ve years. ProResponse is a service company assisting dealers each day with database management, data cleansing, data mining, and effective target marketing. They are e-mail enabled and FTC compliant, running prospects and customers against the �Do Not Call� list daily. They provide on-site training and monthly service visits �In Your Dealership�. Their programs are also written in Spanish and French. They seamlessly integrate with Who�s Calling, Call Source, Call Bright, Call Command, EPencil and many others.

Founded in 2001, American Auto Exchange is revolutionizing the way dealers conduct business by Þ nally assembling all the pieces necessary to running a streamlined, high tech used car operation. Through the use of the aaXchange tools, dealers are dramatically improving the way they operate their used car departments.American Auto Exchange works with thousands of dealerships across the United States who have chosen to utilize the American Auto Exchange Real Time Vehicle Trading Network, the aaXchange proprietary Vehicle Management System (VMS) and a new integrated intelligent vehicle launch product with Ebay.

NADA2005

TOP 10BEST OF THE BEST

In 2005, Dealix is expanding their quality and service initiatives, continuing to help dealers sell more cars, more efÞ ciently. Their combined efforts with The Cobalt Group will bring an even more dynamic product to their customers to increase sales and help improve dealership efÞ ciencies. Dealix has been rated the number one lead provider in studies by J.D. Power and the Dotcominsider. Their goal is to continue to win over customers with high quality leads and superior service. The Dealix Quality Team enhanced their lead scrubbing and call veriÞ cation technologies to ensure customers receive leads only from the most serious car buyers. Dealix is committed to provide even better one-on-one service and has expanded it�s Lead Acquisition Network, adding hundreds more of the best auto sites on the web.

TimeHighway.com is the premier, on-line solution for service department appointment scheduling, allowing dealership customers to make a conÞ rmed service appointment 24 hours a day, seven days a week. BeneÞ ts to the dealership include: replacing telephone-based scheduling with Internet technology that enhances the effectiveness and customer satisfaction of the dealership, reduces in-bound telephone calls and drives trafÞ c to the dealer�s website. Customers prefer the ease and convenience of the Internet to do their banking, shopping, make travel arrangements, etc. and now with TimeHighway.com, they can schedule their service appointments online, no more waiting on hold to make an appointment.

The WolÞ ngton Group produces high performance sales events on behalf of new car dealerships across the country, with no outsourcing or subcontractors. The Þ rm maintains long term relationships with dealerships, providing marketing territories and strategies that help The WolÞ ngton Group dealers outperform their markets. A WolÞ ngton Group produced event brings an atmosphere of fun and excitement to the dealership, creating a great buying experience for the consumer and a positive selling experience for the dealer�s sales team. Harry WolÞ ngton, President, provides his insight and experience to auto dealerships through his six sales teams. �Being a small company, we are more focused on each individual event. Our dealers get an attention to detail from our staff paralleled by none.� It�s this philosophy that has earned The WolÞ ngton Group a spot in this year�s �Best of the Best�

Ultimate Warranty Corp. provides leading-edge service contracts and ancillary F&I products. More than 7,000 dealers have recognized the advantages and have beneÞ ted from selling Ultimate Warranty Corp. products. Ultimate�s package has proven that it can propel its client base to the front of the pack in terms of quality, proÞ tability, compliance, customer retention, and CSI. Stop by the booth, and Ultimate Warranty Corp.can show you how they are making a great thing even better in 2005. Ultimate Warranty Corp. has some great new things to offer to its clients at no additional cost. Ultimate Warranty can truly show you how to do more with less.

Established in 1991, J&L Marketing is without equal when comparing automotive direct marketing companies. Their philosophy is simple - there are only three ways to grow your dealership: 1) Increase your number of customers, 2) Increase your average gross per deal and 3) Increase the frequency of repurchase � get more residual value out of each customer. With a customer base of over 6,000 dealers and managers nationwide their ground-breaking J&L Marketing Growth Strategy� is producing staggering results and has eliminated the number one challenge for most dealerships - trafÞ c.

BZ Results is a digital marketing & training company that has a great new system that helps dealers sell & service more vehicles proÞ tably. BZ�s clients include United Auto Group, Group 1, Herb Chambers, Red McCombs, Sheehy, Paul Miller, Larry Miller, Courtesy Chevrolet, Tasca and others. BZ dealers are selling 100-700 incremental units a month from this revolutionary new system. To get a free 180 second tour of this new system visit: BZResults.com

JOE VERDE � Your Training Partner Since 1985, the Joe Verde Group has been helping dealerships improve their sales and gross by providing the best sales and sales management training in the automobile business. Joe Verde�s up-to-date sales training helps dealerships implement effective sales training that works to build a solid sales team and long term, satisÞ ed customer base. Joe�s management training addresses today�s challenges and tomorrow�s needs by helping dealers build top performing management teams. The bottom line� the Joe Verde Group provides a dealership with clear-cut solutions that boost their sales, proÞ ts and customer satisfaction.

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NADA 2005TOP 10 BEST OF THE BEST

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Quality Leads | Superior Service | Dealer Control Features

“That’s why I get my leads from Dealix. When it comes to selling to Internet customers, my team goes beyondour immediate market area. In fact, we pull customers in from as far as San Francisco. With Dealix, we can get leadsfrom a wide mile radius, or we can target specific Zip codes. The choice is ours. No otherlevel of control and this many sales.”

Steve Jackson, Internet Fleet Manager, Magnussen’s Dodge Chrysler, Jeep of Auburn, CA

Territory ControlSM

Choose multiple Zip Codes for each franchise.

Territory ControlSM

Target your ideal sales territory – choose anymile radius.

Inventory-Driven Lead ControlSM

Choose leads for the models you want to sell.

Dealer Control FeaturesDealix

Standard

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AutoUSA

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Autobytel

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Start selling more cars today! Call Dealix now. (866) 253-5125or visit us online at www.dealix.com.

58 Cars Sold Last Month with Dealix LeadsMagnussen’s Dodge Chrysler Jeep58 Cars Sold Last Month with Dealix LeadsMagnussen’s Dodge Chrysler Jeep

N/S = Not Standard July 2004 Sales

NADA2005


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Special Free Offer: Call 866.856.6782 now and ask for Sarah to receive your free copy of the J&L Marketing Ultimate Growth Strategy, featuring an actual case study of Johnson City Honda.

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Visit us at NADA in New Orleans at Booth 4731.

move the crowd. crush the competition. count the money.

NADA2005


NADA2005


TIMEHIGHWAY.COM replaces telephone-based scheduling with internet technology that enhances the effectiveness

and customer satisfaction of your dealership. By scheduling appointments directly through your web site, your customers

make conÞ rmed appointments instantly without call-backs. TimeHighway.com puts your service department�s schedule

on your web site, making it possible to schedule appointments 24 hours a day, 7 days a week, from anywhere.

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NADA2005


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After seven years with ProResponse I can still say it is the best investment we’ve ever made.-Larry Jones, Jones Junction

The Koons Automotive Group sold over 44,000 vehicles last year with the help of ProResponse.-Alex Hafer General Manager

ProResponse is the only system I have ever used where the sales people are actually motivated to use it. Our new car sales are up 21% in one year.-Jeffrey Abel President, Miller Toyota

Our closing ratio has improved 38% and our “be-backs” have nearly doubled. When we fi rst implemented ProResponse we averaged 160 cars a month, an average month is now 350!-Kevin Cohan General Manager, Jim Coleman Cadillac Infi niti Toyota 866.596.6889

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NADA2005


Chess Champion Has the Drive to Succeed Chula Schlesinger

Are You an IMPACT Player Zig Ziglar

10 Steps to CRM Success Bryan Anderson

On Becoming a Servant Leader Adam DeGraide

Almost $600,000 to the Bottom Line Bruce Thompson

Silence is Golden Anthony Hall

How to Identify and Sell to the Entrepreneur Personality Carol Martin

Discover How to Eliminate YourDealership�s �TrafÞ c in The Door� Challenges Scott Joseph

2005 eDealers of the Year Patrick Luck

Management Driven Dealerships Joe Verde

Courtesy Chevrolet�s Four Keys to Selling 380 Additional Units Robert Revere

The Importance and BeneÞ ts of a Credit Application Tony Dupaquier

Across the Board Increase in Service and Parts Revenue Joseph Schmoke

Huge Dividends in Happy, Loyal Customers Karen Dillon

Sophisticated e-Newsletters CreateInterest, Detect and Qualify Buy Signals David A. Fish

The Value of a Professional T.O. Jim Adams

Building Your Business Mark Tewart

Human Nature: Taking the Path of Least Resistance Kirk Manzo

I Think I�ll Have an Idea Michael York

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AutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 [email protected]. Subscription rate is $75 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. 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, 756 South First Street, Suite 202, Louisville, Kentucky 40202.

Psalms 23: 1 - 6

The Lord is my shepherd, I shall not want; he makes me lie down in green pastures.He leads me beside still waters; he restores my soul.He leads me in paths of righteousness for his name’s sake.

Even though I walk through the valley of the shadow of death, I fear no evil; for thou art with me; thy rod and thy staff, they comfort me.

Thou preparest a table before me in the presence of my enemies;thou anointest my head with oil, my cup overfl ows.Surely goodness and mercy shall follow me all the days of my life;and I shall dwell in the house of the Lord for ever.

756 South 1st Street, Suite 202 Louisville, Kentucky 40202! Toll Free: 877.818.6620 " Facsimile: 502.588.3170

Choose Freedom • Support Our Troops

Patrick Luck, Editor & Publisher• [email protected]

Susan Goodman, Vice President• [email protected]

Courtney HillSales-improvement Strategist

• [email protected]

Thomas Williams, Creative Director• [email protected]

Success Driven Solutions

www.autosuccess.biz10

Chess ChampionHas the Drive to Succeed

ChulaSchlesinger

Thousands of young men and women who will be graduating high school or college this spring are looking forward

to the ultimate graduation present. Mom and Dad have promised a trip to the local dealership to pick out their fi rst automobile upon graduation.

There are, however, thousands more young adults who will never realize that American dream. Their lives are starkly different from mainstream America. Many at-risk children living in the inner cities of our country have no hope of ever fi nishing school, or attending college based on the current deplorable circumstances in which they fi nd themselves.

One man has vowed to change this grim prediction by dedicating his life to the fulfi llment of his personal dream. Orrin Hudson, a leading nationally recognized chess champion has turned his dream of mentoring children through the game of chess into a life-long pursuit.

In 2001, Orrin was shocked, as was the rest of the country, to hear of the incident in Queens, New York in which a young black youth terrorized the patrons of Wendy’s Restaurant. He ultimately herded several of them into the cooler and shot them in the head for a paltry sum of $2,000. As a former U.S. Air Force and Alabama State Trooper veteran, Orrin vowed to make a

difference to ensure this type of violence stops in America in his lifetime.

Orrin left behind his successful car dealership, which he had owned for 10 years. He focused every personal asset, and all of his savings to launch his grassroots crime prevention program, Be Someone Inc. He targets crime where it begins, in the inner cities of our country disguised as poverty, sickness and hopelessness.

Orrin has developed several mentoring programs that teach children life mastery skills, using chess as a metaphor. Using his personal resources, dedication and passion for his dream, he has touched the lives of more than 15,000 children and their families. His programs have been taught in more than 30 schools in fi ve states.

Dramatic changes occur in the lives of these children when someone who is as powerful a mentor as Orrin Hudson appears in their lives. They immediately respond to his charismatic personality and energetic teaching style. Upon completion of Orrin’s classes, reported improvements include extended concentration time, improved grades, more positive social skills and concern for others. Students exhibit the ability to think more clearly and apply problem solving skills. They develop a clearer understanding of consequences and the ability to recognize patterns to increase forward thinking.

Dubbed the “Piped Piper of Positivity” by

CNN, Orrin and his life changing programs have been featured on Fox News, CNN, TBS Superstation, as well as having been highlighted with a full-page article in USA Today. He has been interviewed and his programs featured in countless media and news outlets.

Although the recipient of numerous community service and leadership awards, Orrin remains humble and thankful for the opportunity to serve his community. His personal reward is in the achievement of the children throughout the country currently enrolled in his programs. He has recently received the 2004 Martin Luther King Jr. Community Service Award, 2004 TBS Superstation Pathfi nders Award for Education, and 2004 Atlanta Braves Leadership Award, among others. As a testament to his selfl ess achievements, he is currently the subject of an upcoming screenplay expected to be released next year.

sf special feature

january 2005 11

What does Orrin Hudson have? Heart. His passion for learning, and burning concern for the students he mentors, keeps him working long and hard even when his personal resources are depleted. He needs our support.

As an author, trainer, coach, educator and motivational speaker, Orrin has amassed some hefty accolades.

“I salute you on your quest to develop yourself in order to make a difference in others’ lives. We are kindred souls in that I, too, have always had an insatiable hunger for knowledge and excellence. Live with Passion!” Anthony Robbins, No. 1 best selling author, motivational speaker

“I am extremely impressed with your organization, especially since our youth are desperately in need of leadership and guidance. I admire your zeal, and your enthusiasm is contagious.” Brian Tracy No. 1 best selling author, motivational speaker

“Orrin C. Hudson is destined to inspire our youth in a positive and extraordinary way. I like his tough-minded optimism and charisma.” Mark Victor Hansen No. 1 best selling author, motivational speaker

“I enthusiastically endorse the work of Orrin C. Hudson, founder and president of Be Someone Inc. and all that he does for our children.” Jane Fonda, actress, director

“Orrin, you amazed me with your ability to get results!” Jack Canfi eld, author, motivational speaker

You can partner with Orrin and Be Someone Inc. Through your tax-deductible donation you can sponsor a child or several children today by offering scholarships to the program. You will positively change the life of a child forever. By partnering with Be Someone Inc., you will be fi ghting crime, illiteracy and hopelessness for thousands of American children.

“The future of our country and our youth depends on what we do today. If we ignore this generation and allow them to continue to travel their current path through inner city poverty and despair, we are also responsible for the crime and desperation

that results. If they can’t fi nd a way to win at life, we all lose,” Orrin Hudson said.

If Orrin and Be Someone, Inc can reach them before its too late ... we are all winners.

“It is not just about the game of chess. It is about the game of life, and learning how to win at every level.” Orrin Hudson

To thank you for your consideration and help with his programs, Orrin has agreed to appear at your dealership for no charge

DEALERS MUST BEDEALERS MUST BE ON TELEVISION!ON TELEVISION!

1-800-821-50681-800-821-5068

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UNLIMITED TV CAMPAIGNSUNLIMITED TV CAMPAIGNS AND PROMOTIONS!AND PROMOTIONS!Call for a FREE demo tape and information.

See why over 100 dealers nationwide have INCREASED SALES MORE THAN 30% IN LESS THAN 90 DAYS WITH TELEVISION!

Larry John Wright, Inc.Larry John Wright, Inc. Automotive AdvertisingAutomotive Advertising

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and share with your employees and their families the powerful success mastery skills that he has taught to thousands. He is a dynamic personal coach.

To learn more about Be Someone Inc. please visit the Web site at www.besomeone.org. To donate, sponsor children or sponsor a school in your hometown, please contact Orrin. Be Someone Inc. is a non-profi t organization.

Orrin Hudson can be contacted at 800.901.3057, or by e-mail at [email protected].

continued


Are You an IMPACT Player

ZigZiglar

How can we become IMPACT players in our companies, o r g a n i z a t i o n s , c h u r c h e s , communities, and

families? Here are a few ideas:

I = Intensity We must be focused on our goals and dedicated to put forth the effort necessary to achieve those goals. Intensity doesn’t mean being so serious you aren’t enjoying the process. It does mean being serious enough to overcome obstacles that stand in the way. Remember: you are either intense … or you are past tense!

M = Model the correct behaviorYogi Berra once said you could observe a lot by watching. We should observe positive role models and “steal” the effective aspects of them. We should then model that behavior on a consistent basis.

P = PassionPassion is doing what makes us feel the most alive!!! We must develop a passion for what we do. This passion will get us out of bed in the morning when we don’t feel like it. Passion sets fi re to discouragement. Passion creates excitement in those around us. If you light yourself with passion, people will come from miles around to watch you burn.

A = ActionBy turning passion into action, we will surely make an impact! Oftentimes, this is the biggest challenge we face - putting our passion into action. There are times when we don’t feel like being impact players. Our passion is at a low level, and the feelings have gone. The key is this: We must “act” our way into feeling and not wait to “feel” our way into acting.

C = Comedy reliefWe must enjoy our intensity and our

modeling and our passion and our actions. We must enjoy our journey, not just the arrival. Along the way we must remind ourselves to have fun, loosen up and laugh out loud. We shouldn’t take ourselves too seriously. Remember: Angels fl y because they take themselves lightly.

T = Trust We must learn to trust ourselves. Too often we are waiting for all the lights to turn green before we leave home. There is an adage that states: trust your gut. We should learn to trust our feelings.

By becoming an IMPACT player, all those around you will benefi t. Go out there today and knock’ em alive!

Zig Ziglar is the chairman of the board of Ziglar Training Systems in Dallas, TX. He can be contacted at 866.873.0026, or by e-mail at [email protected].

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sales and training solution

10 Steps to CRM Success

BryanAnderson

A successful CRM implementation will produce a tremendous return on investment. Let’s examine 10 fundamental steps to

achieving CRM success.

1. Present to your staff the beneÞ ts of using CRMSales people will save time because worksheets, appraisals, credit apps and add ons are automatically and professionally laser-printed. They will be able to move through the sales process effectively and with greater ease. It provides a simple, but powerful, fi rst-pencil tool, credit bureau processing, inventory look-up, and appraisal management with Blackbook lookup. Sales people will enjoy automatic follow up, as if each had his or her own personal assistant who printed daily letters, sent daily e-mails, and strategically built a plan of business 365 days a year. It will offer real-time integration with your DMS, Internet leads and phone leads. You’ll get total buy-in of your sales staff. When sales people properly use CRM as a tool to success, they all sell more cars, which will increase their income.

2. Attack your database on a daily basisManagers can easily create targeted advertising campaigns. They now engage in a daily review of the fl oor traffi c as well as those deals that can be saved. Sales people log in every day to fi nd a planner full of opportunities from today’s appointments to prospecting for referrals and closing renewal business. Produce results every day.

3. PrepareYour CRM provider is able to effi ciently pull every DMS record possible, for both sales and service. If a customer’s name and number has been recorded somewhere at some point, that customer will end up in your CRM. These records are scrubbed against the National Change of Address (NCOA) database to ensure that your data is accurate. Then each record is matched with a current sales person and a plan for follow-up.

4. Build value into every customer record with processesYou want your CRM feature-rich, and make sure those features work within the framework of the sales process. Your sales people will be able to take an up and move through the sales process with ease. Real-time Web-based services (such as reverse lookup technology and compliance with the Do Not Call Registry) will enhance customer records. In addition to basic contact info, the customer record will show all prospect history, all sales history (including gross profi t), all service history, all after-sale history, a complete customer profi le, all credit information, complaint management (keep track of their concerns), all e-mail history and the DMS customer number (to create real-time data synchronization). Finally, the process will conclude with a complete analysis of all data through interactive reporting.

5. Seek the immediate beneÞ ts of a real-time environmentReap the benefi ts of a real-time environment in which people, process and data are managed. At any given time, your managers are able to see which customers (and sales associates) are in the dealership. At a glance they are able to see today’s appointments, ups, prospecting/owner calls, tomorrow’s appointments and sold units, both for today and the month. Managers are able to tell who is responsible for the numbers (who is doing their job and who isn’t). First-pencil fi gures are seen at the tower the moment they are created. On any deal not closed, a manager is prompted to follow up with a call to save the deal. Now put this kind of power into the hands of your BDC, and you’ll see your call center, sales team, and service team work together in ways you never could outside of a real-time environment.

6. Implement a speciÞ c process for pipeline managementEvery customer record has value. When sales people reach a barrier with a customer a trigger prompts a manager to step in. When managed in a dynamic and interactive process, dealerships save money in a short amount of time. No one slips

through the cracks any longer.

7. Execute a strategic plan of business every day.Aim at nothing and you’ll be sure to hit it every time. CRM provides each sales person with a daily business plan based on clear, concise rules for every type of customer (appointments, leads, prospects, owners, renewals, etc.). It’s an automated list of calls to be made plus letters and e-mails to be sent. CRM ties into your phone system to measure outbound call compliance and to report on the calls your sales associates log. All of this data is analyzed in a report format, allowing you to interactively view each customer record.

8. Clearly identify customer types and sub-types within your CRMUnsold customers cannot be grouped together. A customer who was unable to secure fi nancing is different than the unsold customer who told his or her sales person that he or she bought elsewhere. A be-back that is ready to buy in days is different than a prospect that is ready to buy in months. With a more detailed approach, you will sell more cars.

9. Appreciate and acknowledge personal lead production (PLP)Your CRM can clearly categorize prospects found through a sales person’s personal networking. It tracks referrals received during calls to sold customers. Teaching your sales force to produce these prospects will increase revenue in all departments. Reward your sales staff for their own personal lead production.

10. Create a data collection process to capture 100 percent of customer informationSuccessful CRM has less to do with cutting-edge features and more to do with how those features are designed to fi t your sales process. Attention to process is the main component a successful CRM incorporates and the main reason why many solutions succeed in dealerships.

Bryan Anderson is the founder and president of Autobase Inc. He can be contacted at 800.350.9683, or by e-mail at [email protected].

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january 2005 13


On Becoming a Servant Leader

AdamDeGraide

How do you defi ne leadership? Ken Blanchard, co-author of “The One-Minute Manager”, “Raving Fans” and now the

“The Servant Leader”, defi nes leadership as “an infl uence process – any time you are trying to infl uence the thoughts and actions of others toward goal accomplishment in either their personal or professional life, you are engaging in leadership.” It makes sense to measure our success as a leader by our ability to shape what others think, do and say as they try and fi nd meaning and their purpose in the world. It can also help to ask if we are being selfl ess or selfi sh. The answer to this question compels us to search our inner motivations and measure our actions and habits in light of the goal of being a better servant leader. In this article are some ideas for preparing our hearts, bringing clarity to our minds and applying and putting into action servant leader principles within our dealerships, families and communities.

Preparing the heartRegardless of your title and position in the dealership, any one can be a leader. It has nothing to do with your job and everything to do with your character and your intent. Whether you’re the title clerk, the receptionist, a sales person, a desk manager or the dealer, people in the dealership can feel it when we have a mission and we’re seeking to lead for a higher purpose. The

servant leader is aiming to go beyond success and social signifi cance and approaches leadership as an act of service from the perspective of what we can give rather than what we can get. Sounds easy, but leadership for the purpose of serving others will fail if we fall prey to false pride and fear.

Close examination of failed leadership efforts usually reveals a self-serving leader who has been drawn by pride into taking too much credit, showing off and demanding attention or by fear that compels a person to protect him or herself, hide behind a title, intimidate others, discourage honest feedback and ultimately become known as a control freak. In preparing your heart it is important to treat others as if they are as important as we are. Why? We treat people the way that we see them, and if we see them as inferior we will treat them that way. When we treat everyone as if he or she were valuable and worthy of our time, respect and attention, what do you think would happen in our relationships? Do unto others as you would have done unto you is the Golden Rule, and it works. Cleaning out the mindGarbage in - garbage out. It’s time for us to take out the trash, wash out the cans. When we allow our minds to be fi lled with so much junk, we truly need to fl ush out the garbage and bring in the fresh air of balanced thinking. All great leaders have a specifi c leadership point of view and belief system that defi nes how they see their role and their relationships with those they seek to infl uence. Our belief system is shaped by our past experiences, our attitudes and feelings, our perceptions, our capacity for critical thinking and our education. What we think is impacted by what we feed our mind. To make a positive impact on what we think, it helps to surround ourselves with positive people and positive experiences.

You are who you hang with, never forget that. As a result, it helps to fi nd a role model who has the vision to do the right thing and, from an implementation standpoint, has the ability to do things right. Values are also important because they defi ne what you stand for, and true

success in servant leadership depends on how clearly values are defi ned, ordered and lived by the leader. Living out these values and core beliefs is where most leaders and dealerships can get into trouble. You cannot just talk the talk, you must walk the walk. Effective implementation requires turning the traditional hierarchy of a dealership upside down so that the customers and the folks on the front line are at the top of the organization with all of the tools and resources needed to do their job, while the leaders serve the needs of the employees; helping them to accomplish the vision and direction of the dealership.

Putting it into actionOnce you feel and understand the concepts, are you really willing to change your heart, your mind and your behavior to become a better servant leader? Once you step out it is important to step up and stay the course. Change is a given, it will happen. Your organization will adapt or die, and you as a person will either grow or go. By becoming “other focused,” we can truly begin to lead the right way and others will want to follow out of faith and hope instead of fear and manipulation. It’s been said that if life is all about you, than you is all you’ll ever have. In order to work at taming an addiction to personal pride it helps to ask some hard questions:

• Do I think of myself more often than I think of others?• Have I developed a habit of giving?• Can I participate in a group without taking charge?• Can I enjoy the successes of others or does everything have to be about me? • Do I use plain, honest speech, letting “yes” be yes and “no” be no? • Do I do what I ask others to do?

Prepare your heart, clear out your mind and put it into action. As a servant leader, you can accomplish anything.

Adam DeGraide is an owner of BZResults.com. He can be contacted at 800.526.9804, or by e-mail [email protected].

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Prepare your heart, clear out your mind and put it into action. As a servant leader, you can accomplish anything.

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BruceThompson


An effective inventory management system coupled with real-time productivity tools, based on accurate market conditions

and real-time pricing, will benefi t your organization because it gives the dealership management team and the sales management team the knowledge needed to properly evaluate deals scientifi cally with little or no guesswork.

Software systems have been coupled with the correct level of training and support so that these new productivity tools are simple to use, easy to implement and based on real-time data in an ever-changing market.

Management systems for auto parts are a standard business practice at dealerships. It make sense to manage millions of dollars in pre-owned vehicle inventory as well. Wouldn’t you agree there is a need?

There are sophisticated systems for managing pre-owned inventory. All systems have similar goals: eliminate wholesale loss and unproductive inventory, achieve consistent under-30-day turns, real-time inventory management control at the dealership level, maintain proper inventory mix, provide instantaneous buy/sell recommendations, provide more scientifi c appraisal tools with real market values and increased trade opportunities.

The biggest challenge for the used car manger can be adopting and embracing change. Robert Kennedy said, “Progress is good but change is its motivator and change has enemies.” The improvements of a used vehicle management system will increase profi ts in all departments.

A dealership that instituted one of these systems experienced the following. Before implementation, retail pre-owned vehicle volume was 97, after 116. Before implementation, the average retail pre-owned front end was $953, after $1,220. Before implementation, the retail pre-owned turn time was 25 days, after 21.5. This translated into an average increase in front-end profi t of more than $49,000 – almost $600,000 to the bottom line that was laying dormant at the dealership.

Three main areas of pre-owned operations are appraisals and trade-ins, inventory

management and inventory wholesale acquisition and liquidation.

Most of the companies (vendors), who have entered the industry of pre-owned vehicle management, aspire to meet the demand of those three areas with the ongoing feedback from dealerships. The goal in mind is to benefi t multiple aspects of used vehicle operations and encourage the repetitive management processes for every used vehicle.

A signifi cant aspect of used vehicle operations involves customer appraisals and trades. Trade-ins account for approximately 60 percent of the pre-owned automobiles retailed by a dealership.

When the dealership knows at the time of the vehicle appraisal that this model tends to retail for a strong profi t, or that another dealership within his group could use that vehicle, the dealer can offer the potential customer a premium for their trade-in and subsequently make another car sale – at a good profi t.

Use of these systems and processes can improve a dealership’s ratio from trading for two out of 10 vehicles to almost fi ve out of 10. For an average sized dealership, this could mean almost 30 additional new or used car sales in a month, or approximately $45,000 in additional front and back-end gross profi t.

Vehicle inventory management systems will help the dealer and the used car manager determine individual marketing strategies. Some systems provide consistent inventory recommendations for each vehicle being evaluated, as well as data that will help make better decisions for each car deal. The consistent use of these tools will guide managers to stock what will sell best at that particular dealership. Consistent compliance with the inventory recommendations will result in increases of gross profi t and an improvement in turn time of about 15 percent.

These systems provide daily inventory management tools, such as book-out sheets, inventory recommendations, past history, vehicle condition history, book values and appraisal sheets. The appraisal portion provides tools for dealers to track appraisal performance and trade rates and to work deals with customers. It incorporates real-

time data from NADA, Kelley Blue Book, Black Book, MMR, CarFax, AutoCheck, DealerBasics and other services, many times within the same screen.

A trade desk tool is utilized to assist those with multiple dealerships. This tool matches surpluses and needs between dealers in a group that can be managed and traded by a single group manager. You need accountable key people operating the management system, working with dealer groups to customize backend fulfi llment processes, including title processing and transport notifi cations, to make the trade process effi cient.

There is also a mechanism for dealers to send alerts out to other dealers for a vehicle they are appraising or have in inventory with a requested buy-now price. Dealers receiving these alerts can counter with a different price for the vehicle or request to purchase the vehicle at the buy-now price. This is ideal for dealers to shop potential or recent trades to a network of dealers.

Some systems help to compile the dealership ideal inventory model and gives ideal and actual inventory calculations, recommendations, aging reports, retail vs. wholesale reports and a quick-glance at a dealership’s sales history with all makes and models. This makes the selection process for trades and the appraisal process more of a predictable, accountable process.

There are tools that provide a trading network that matches inventory needs between dealers, thus creating a real-time channel for dealers to shop vehicles over the network while a trade is being evaluated. This can replace the system whereby the used car manager calls other used car managers, one at a time, to see if they would purchase the vehicle, call wholesalers or purchase the trade unit at a conservative amount and later take the vehicle to an auction. Used car managers are able to identify and purchase vehicles they know will retail well before a vehicle ages, therefore reducing wholesale losses.

Bruce Thompson is the chief executive ofÞ cer and founder of American Auto Exchange. He can be contacted at 800.901.3017, or by e-mail [email protected].

sts ms ls fi s lr

marketing solution

www.autosuccess.bizsuccessful solutions at18

AnthonyHall

Silence is Golden• How many miles on the current tires?• Is this car equipped with a spare tire and a jack?• Does the car have an environmental protection package?• Do you have both sets of keys and the key fobs?

“And if you had to rate you car, Mr. or Ms. customer, on a scale of one to 10, with 10 being absolutely perfect, showroom condition, how would you rate your car?” Most people respond between six and eight. Where would it rate on the scale?

In consideration of this rating, the buyer has three prices in mind for their trade-in:

1. Asking price.2. Liking price.3. Taking price.

Through this process, the sales person can bring the customer from an asking price, which always equates to a huge over-allowance based on actual cash value of the trade, all the way to a taking price. The difference can be as much as $1,000 to $2,000. This is the difference between a little or no gross to a much more fair and reasonable gross. It has the ability to take a lot of the confrontation out of negotiation when it is time to present trade fi gures.

A customer’s perception can be summed up this way: I’m going to pay this much for the car I’m buying. I am going to get this much for my trade-in; all I have got to do is pay the difference.

It is the sales person’s job to increase the perceived value of the car they are buying. (Walk-around, November article) and respectfully decrease the perceived value of their trade-in. This is where the gross and your commission are.

This whole process takes less than 15 to 20 minutes and produces huge returns. It also has a positive effect on yours and the dealership’s CSI scores.

Good Selling!

Anthony Hall is a training consultant at Ziegler Supersystems. He can be contacted at 800.610.9047, or by e-mail at [email protected].

Sales people need to bring out the true condition of the customer’s trade-in professionally because by not doing

so, we are leaving gross profi t on the table due to over-allowing on trade-ins.

This can be corrected with a silent trade evaluation (condition, not value). The process starts after a quality demonstration drive and commitment to buy if all terms are agreeable.

Once the commitment to buy has been established, proceed to your trade evaluation. Ask the customer if there is a vehicle they would like to sell to the dealership. “Help me, help you, sell your vehicle to ABC Motors. Show me.”

With clipboard in hand and a trade evaluation form attached, start by having the customer read the mileage on his or her vehicle. Record it on the form. No words from you, but you may want to do the wince and fl inch (a very effective tool). Also, ask him or her to activate the hood release while they’re in position. Proceed to the front of the vehicle and lift the hood. Record any oil leaks, over spray, or worn belts (Silence, touch and feel). Proceed to the front bumper, touch any scratches, dents, cracked headlights, etc., and record them. Move to the passenger side, recording tire wear (at this point, you may want to use the “penny-tire wear gauge”). Hold a penny so you can slip it between the tread. If you can see the top of Abe Lincoln’s head, the tire wear is beyond the point where it will pass state inspection. Touch every dent, scratch, or defect and record them. At this point, wait for stories on how each dent happened.

Move to the back of the car and at this point, ask for the keys. Open the trunk, hatchback, etc. Check for the spare tire jack, look for any fl uid bottles, i.e., brake fl uid, transmission fl uid, oil, etc. Pick up each bottle, hold it close to your ear and shake it, looking for half full containers. Move to the driver’s side, also recording any defects, and get in and ask your customer to do the same. Go over the interior thoroughly, checking for wear and tear, cleanliness, etc. Record side glass and windshield condition.

While in the driver’s seat, start the vehicle and turn on every piece of equipment and

test all accessories, i.e., windshield wipers, radio, heater, air conditioning, power seats, all power windows, etc. Record all defects.

Next, drive the car with the customer and check for any mechanical problems. Helpful hint: Always ask the customer, “What is that noise?” The customer will always respond with an explanation. Make one quick trip around the block. Once back at the dealership, park the trade-in as close as possible to the vehicle they are buying. This is a great opportunity to show the difference between old and new.

Then, bring the customer inside and sit him or her down in the negotiation area. This is the point where we ask them some key questions:

• Do you have the title?• Is this a salvaged title?• Is the title free and clear?• Lien holder – pay off?• Has the vehicle ever had any collision damage? If yes, what type of damage and what was the cost of the repairs?• Has the vehicle had any mechanical repairs? If yes, what type of repairs?• Was the vehicle purchased new?• Has the vehicle ever been smoked in?• Has it been used for towing?• What is the date of the last tune-up?• What was the date of the last oil change?• Has the oil been changed every 4,000 miles?• Do you have all the required maintenance history?

��

This whole process takes less than 15 to 20 minutes and produces huge returns. It also has a positive effect on yours and the dealership�s CSI scores.

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january 2005 19

How to Identify and Sell tothe Entrepreneur Personality

CarolMartin

If you could connect with your prospective buyer, would it help get the sale? Would you want to know how to specifi cally

sell a customer who is outspoken and demanding? What if you could create and pique genuine interest in a shopper who seems unmotivated? Have you ever made a sale when a prospect said he or she was just looking?

This article is the fi rst in a three-part series dealing with how different buyer personalities respond to various sales presentations. You’ll learn how to read your prospect, detect subtle buying cues, and tailor your presentation to trigger a positive response from even your most challenging customers.

Part 1: How to identify and sell to the Entrepreneur personalityPart 2: How to identify and sell to the Technician personalityPart 3: Will the Accommodator personality ever, in your lifetime, actually buy a car?

Entrepreneur personalities will usually be talkative and fast-paced. They’ll also be friendly. True entrepreneurs like to make their own decisions, and they may seem to have a very clear idea of which vehicles they do, and do not, want to buy. In terms of dollars and cents, do not hesitate to negotiate with them.

Some entrepreneurs might seem a little demanding, but they can also soften those demands when they want to, by putting their excellent social skills to good use. They might make some small talk, establish easy rapport, so their own business objectives can be more readily attained. They are typically confi dent, assertive and fast-paced individuals. You will probably not fi nd an entrepreneur personality asking for a lot of help, putting himself/herself down or waiting long for an answer to a question. If you notice that your customer seems self-suffi cient, confi dent, talkative, quick and very proactive, you are probably dealing with an entrepreneur personality.

Entrepreneurs are leaders. They instinctively

take the upper hand in situations and have an innate ability to convince others to see things their way. Outwitting, outdoing, or overpowering them can prove to be a tall task, as they usually have good answers for everything and are not the least bit afraid to speak up. They are win-driven, competitive and determined to stay in control of situations. They will probably relate well to you if you seem equally enterprising and self-assured; they respect and appreciate your competitive drive.

While all entrepreneur personalities share the same general characteristics and display overall behavioral patterns that are similar, it’s important to know that there are different levels of each defi ning trait. Some entrepreneurs have exceedingly strong and determined personalities. These entrepreneurs can be charming, but they can also be outwardly bold and impatient. If your customer seems highly aggressive and antsy, be prepared to be a little less forceful when talking business, so as to avoid bumping heads and thus triggering an unwelcome and, perhaps, deal-breaking, confrontation. Consider these strategies when working with an entrepreneur:

• End your sales pitch with a sentence like: “Of course, it’s up to you whether you want to take advantage of this special, because you have to make that decision”

• Make his or her ideas seem like your own. For example, point out an obviously positive feature about the vehicle, something with which the prospect is sure to agree. Once he or she does, get him or her to elaborate on it and then say something like: “You’re exactly right! I never thought of it that way.”

Virtually all entrepreneurs can identify with people who are driven to win. Talk about your own successes; if you met or exceeded your goal last month, work that into the conversation.

Carol Martin is a senior consultant with The Omnia Group. She can be contacted at 800.601.3216, or by e-mail at [email protected].

sts ms ls fi s lr



Discover How to Eliminate YourDealership�s �TrafÞ c in the Door� Challenges

ScottJoseph

I ask dealers and general managers all the time, “What is your biggest challenge in selling cars today?” Almost

always their answer is “traffi c.” The more I study the challenge of generating more traffi c and staying ahead in competitive times, the more I am convinced it boils down to one principle – marketing. As we start 2005, now’s the time for you to tune up your marketing – to make sure you’re getting new customers coming in, old customers coming back and customers purchasing more often.

Marketing is the main spring of every business. After all, marketing is the science of getting people to come in and test drive your cars and have them try your parts and service departments. It persuades them to come back again and again and induces them to purchase at higher grosses when they do come back.

Marketing is not just advertising. It incorporates sales, advertising, your business identity and a host of other ingredients that are less obvious. Without marketing, you lose customers. And without customers, you lose business.

Marketing can make the difference between the life and death of your dealership. Yet, marketing, which is the prime mover of

businesses, is one of the least understood and most underutilized facets of business today.

In these competitive times, the importance of marketing is even greater than before. Why? In this wildly unpredictable and changing marketplace, dealerships must have an edge or they will not survive – they’ll lose their share of market to their competitors.

The simple fundamentals of marketing – the obvious marketing techniques that make a lot of money – are the most powerful. After all, you can do all sorts of advertising, but if you ignore the basics, the money just will not come easily.

Does your dealership(s) have an actual marketing plan? There are only three ways to grow your business; 1) sell to more customers, 2) increase your gross average and 3) increase how often customers spend money with you. What is your growth strategy to accomplish these goals?

A real marketing growth strategy incorporates advertising, sales and your corporate identity. Maximize the potential of the marketing plan by working backward – start from sales. For any marketing plan to work the advertising element must align with the way your dealership sells cars. The class war between marketing and sales is a primary reason for program failure. There are direct response advertising strategies that can help support your sales team – even make them better.

To increase sales, focus on the following:1. Increasing your phone traffi c, new and used fl oor traffi c, parts and service business by:

• Aggressively marketing products and services by using direct response advertising rather than the normal institutional advertising.• Run special sales events.• Develop a unique selling proposition and a corporate identity. This identity must be recognizable in all communications and convey your unique selling proposition.• Increase the perceived value of the product through better sales

training, which leads to better customer education.• Track all advertisements and measure the ROI. Know exactly what is working and, more importantly, what is not.

2. Increase customer retention by:• Communicating frequently with customers.• Provide compelling reasons as to why they should come back in and buy another vehicle with special offers before they are announced to the general public.

3. Increase closing rate by:• Increase the sales skills with training.• Develop an advertising strategy that allows your sales staff the opportunity to qualify the wants and needs of customers up front.• Offer great deals for the customer.• Educate customers by giving “reasons why” they should buy from you.

To increase your gross averages, focus on:• Use direct response ads that attract buyers who negotiate less (it can be done).• Increase the sales skills.• Managers start every deal.• Use direct response ads that increase the percentage of people who talk numbers (once again, it can be done).

To increase how often customers spend money with you, focus on:

• Use direct response techniques to create compelling reasons why customers should come in and buy another vehicle from you right now.• Run special events such as “clearance and new model introduction” events, and so on.• Special offers for sales.• Monthly parts and service offers to induce frequency.

Scott Joseph is the president of J&L Marketing Inc. He can be contacted at 866.429.6846, or by e-mail at [email protected].

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Maximize the potential of the marketing plan by working backwards � start from sales.

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PatrickLuck

2005 eDealers of the YearOur January issue is dedicated to honoring the Top 10 eDealers of 2005. The benchmark for consideration for winning this year’s award is results as measured by volume of Internet sales and by how well the dealers use the Internet and digital marketing to promote all of their profi t centers: new, used, F&I, service, parts, etc. Our goal was to seek out the dealers who are the best at using this marketing medium to generate huge increases in profi t for their dealerships. We considered the number of rooftops, the size of the dealership or dealer group, their markets, the brands they carry and their Internet profi ts as a percentage of their total profi ts. Here’s the detailed criteria used to select the winners:

• Profi t generated as a result of Internet marketing• New and used vehicle sales volume as a result of Internet marketing• F&I and subprime profi ts as a result of Internet marketing• Online service and parts business

We learned a lot about what determines a dealer’s success with using the Web to generate increased sales and service profi ts. We found some commonalities among the winners and some truly effective best practices that have propelled the winners to

Paragon Honda & Acura New York, NY www.ParagonCars.comDick Hannah New York, NY www.DickHannah.comRalph Schomp Automotive New York, NY www.Schomp.comTasca Automotive Group Providence, RI wwwTasca.comHerb Chambers Boston, MA www.HerbChambers.comRed McCombs San Antonio, CA www.RedMcCombs.comEarnhardt Auto Centers Tempe, AZ www.Earnhardt.comCourtesy Chevrolet Phoenix, AZ www.HouseofCourtesy.comDave Smith Motors Kellogg, ID www.DaveSmithMotors.comSheehy Virginia/DC www.Sheehy.com

Dealership Location Website

2005 eDealers of the YearCongratulations, eDealer of the Year Award Winners!

the forefront of digital marketing, enabling them to sell 50 to 800 units every single month. Successful dealers recognize and appreciate the fact that 70 percent to 80 percent of all customers who purchase a new or used vehicle use the Web at some point in the buying process. Some dealers have even scrapped their conventional advertising budget and dropped their cost per sale from $300+ to less than $150 per sale. In recognition of these and other outstanding achievements, we devote this article to recognizing the Top 10 eDealers of 2005 and we will share some of the best practices that have positioned them at the top in their fi eld. Internet Strategy & Vision:

We found that commitment starts with the dealer principle himself and cascades throughout the rest of the organization in direct proportion to dealer’s level of commitment. For the award winners, the vision doesn’t start with the General Manager or the Internet Director or

another member of the leadership team; for the winners, commitment to an Internet strategy and vision begins with the dealer himself. A common mistake some dealerships make is to dedicate or hire a technology person and leave it to him or her

to establish an Internet marketing strategy. This person typically winds up spending a lot of time updating and maintaining a nice-looking, information rich site that is largely ineffective and when taken to the extreme, these are the dealers who abandon the Internet entirely. In contrast, our Top 10 dealers tell us about personal involvement in selecting the right vendors and defi ning an Internet sales strategy and vision with their entire leadership teams. Some of the areas dealers consider when establishing their strategy and vision are: technology, marketing, process, people, pricing and measurement.

Establishing Your Strategy & Vision by

Seeking to Answer 10 Questions:

Technology: How do we separate the hype from what works? What vendors deliver a clear return on investment and what technology can successfully automate parts of the process?

Marketing: What are some best practices for using the Web and digital marketing to attract more customers to the dealership? What is the best use of my advertising budget and how much should be devoted to digital marketing?

Process: How can a dealer fi ne-tune his process to ensure that more of his opportunities are being transformed into profi table sales?

People: What are the secrets to lowering employee turnover? What are some best practices for recruiting, hiring and training the right team?

Pricing: When, where and how do the most successful dealers address pricing on the Internet? What will work for my store and what are some best practices for maintaining a fair profi t?

january 2005 23

Measurement: What are the key metrics for measuring performance success?

Great Web sites:

What makes them great? Appearance is subjective, and when it comes to design what appeals to one person can repel another, which is why we selected our Top 10 eDealers based on results. This is why we defi ne the 10 Greatest Web sites as those that generate measurable results. You can refer to the screen shots of these Web sites to go online and experience them for yourself where you’ll fi nd one commonality; they are simple and easy to use. The dealers told us that common feedback from their customers (and this can be true for any online transaction) is that navigation has to be simple and obvious. There’s not a lot of extraneous information on these sites where 90 percent of the space is devoted to what the customer is looking for, which is to research product information, to fi nd a particular vehicle in inventory or to access service information.

Dealers also tell us that a Web site will get results if it is simple, easy to use, quick to load and highly engaging with multi-media technology that can work fast even on a low-speed connection. Great Web sites offer cool features like online coupons, specials, virtual test drives, online credit applications, online trade appraisals and a full range of pricing information. Since the majority of new and used car buyers purchase a model other than what they originally select, a great site will offer an alternative if you don’t have the exact vehicle a customer has inquired about, never telling the customer you don’t have what they want. Great Web sites do much more than post information online, they compel the customers to pick up the phone, submit a lead or drive straight to your showroom.

5 Keys to a Great Automotive Web site:

Key #1: Simple and easy to use, fast to loadKey #2: Provide what the customer wantsKey #3: Incorporate high-tech, engaging, multi-media technology that works fast on a low-speed connectionKey #4: Automatic updating (inventory, specials, pricing, etc.)Key #5: Devote 90 percent of the space to

what customers look for 90 percent of the time

Marketing:

How can you get the greatest return on

your advertising dollar?

Traffi c is the secret to success in the car business, whether you’re talking parts sales, service absorption, F&I profi t, new car sales, used car sales or the Internet. In today’s super competitive market, it’s not as simple as building a great Web site and selling a ton of cars; you need to let your customers know how to fi nd you. Many dealers start by making sure that all their employees are familiar with their site and by tagging all conventional advertising with their Web address. The award-winning dealers make it their business to capitalize on the opportunities afforded by digital marketing. They buy the right URLs and they use organic search engine optimization and even pay-per-click optimization to ensure the customer arrives at their site instead of at the competition. Successful eDealers create alliances with regional and local sites that direct customers to their website via banners and links because they know that compared to the cost of conventional advertising, online marketing delivers more customers for less money. Visit the local newspapers for many of our Top 10 eDealers, go to the car section and you’re likely to fi nd a banner ad whenever you research a make that dealer sells. This can generate lots of incremental traffi c for the dealership.

Another frequently used and highly effective online marketing strategy employed by our Top 10 eDealers is direct e-mail marketing, because dealers can reach hundreds or thousands of customers with just a few clicks and a couple of minutes for less than the cost of a stamp. Dealers tell us this works best if you have established a database of e-mails and if you have access to multi-media e-mails that use the latest in compressed animation. Bob Tasca III from Tasca Automotive tells us that, “Our customers are always telling us about how much they love our buzzmails because it’s like watching a mini-movie about the product. It’s unlike anything else out there so it gets their attention. What I love is that everything is measurable,

www.ParagonCars.com

www.Schomp.com

www.HerbChambers.com

www.Earnhardt.com

www.DaveSmithMotors.com

www.DickHannah.com

www.Tasca.com

www.RedMcCombs.com

www.HouseofCourtesy.com

www.Sheehy.com

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including the view rate, so we can measure how effective we are at reaching our target market. If FMCC comes out with an Explorer incentive, I can send a buzzmail to everyone who has been in on an Explorer, I can select just our lease renewal customers who are currently in an Explorer or even folks who were in for service. There’s no limit to how I can target my campaigns.” Tasca is one among many of our Top 10 eDealers who spoke highly about “virtual test drive” technology that sends customers a mini-movie of a walk around presentation straight to the customer’s inbox without requiring the customer to open an attachment. Regardless of their chosen vendor, the size of their organization and the franchises they carry, the Top 10 eDealers all spoke about the importance of a clearly defi ned marketing strategy for driving more customers to their Web sites.

Process:

The key is implementation and automation.

As with success in marketing, success with your process begins by clearly defi ning what needs to happen, how it needs to happen, who will be responsible and how they will be held accountable. We learned from the Top 10 eDealers that it’s important for the dealer and the leadership team to create a detailed action plan for Internet lead management and sales. Thinking through the tactical details can remove some of the barriers to process implementation while automation can reduce the margin of error and free up your people to spend more time doing what they do best; set appointments and sell cars. Here are the best practices we gleaned from our interviews:

Top 10 Process Best Practices:

1. Fast, professional response increases appointment ratio and ultimately sales. 2. Customizable e-mail templates for every scenario (price, trade, payments, availability, etc.) increase the speed and professionalism of your response.3. First e-mail should set the stage for a phone call.4. PHONE SKILLS, PHONE SKILLS, PHONE SKILLS! 5. First goal is to sell the appointment, not the car. 6. Use a script for all inbound and outbound calls. 7. Confi rmation calls made by the manager will double the show ratio. 8. Use an appointment board that is highly

visible to create excitement and top-of-mind awareness.9. Use automation wisely to stay in touch with prospects who don’t set appointments, don’t show or don’t close. 10. Management needs to stay involved and create a sense of passion for the process.

People:

�Find the right team and create an

environment that they�ll never want to

leave.�

Robert Revere of Courtesy Chevrolet made this comment at the Best Practices Summit in Las Vegas, demonstrating how passionate he is about hiring, training and retaining the right people. Our top eDealers tell us that if you have the right people who are passionate about what they do you can make up for a multitude of shortcomings in other areas. That’s great, but what can a dealer do to fi nd the right people and combat the auto industry’s biggest challenge - turnover? Whether you’ve built your Internet sales model around an Internet Department or a centralized Customer Relationship Center/Business Development Center, the top dealers tell us that you need to seek out people who are passionate about customer service and can shine on the phone. They also tell us you don’t need a team of technology experts, because with the right Web site and CRM tool you will not spend much time resolving technology issues or maintaining your Web site. Nor do you need people who have proven to be super successful on the sales fl oor as those team members will often attempt to sell the car (rather than the appointment) over the phone and usually suffer from “Attention to Detail Defi ciency.” Since the main goal for team members within the most successful Internet departments and CRCs is to sell the appointment and make sure the customer shows up, it helps to seek out people who love working on the phone in the fi eld of customer service.

Pricing:

How to stay competitive while protecting

your fair proÞ t.

Pricing was the one area in which we noticed incredible tactical variance among the top eDealers. We found best practices that ranged from 1. invoice, MSRP and dealer price offered online 2. contact the dealer for a quote and 3. no price quoted online, in an e-mail or even on the phone.

When it comes to price it would appear that there is no magic bullet or proven formula for success as each dealer’s pricing strategy was different. However one common practice for every one of our dealers is that the leadership team at the successful dealerships got together to consider each pricing model, evaluate the potential pros and cons and created a pricing strategy that was uniquely their own. By analyzing each model to establish their own pricing strategy, the Top eDealers told us that every member of the team believed in and felt confi dent about the strategy as a result. Once again, we discovered that nothing sells cars like belief in the value of what you have to offer.

Measurement:

Tracking your performance results.

The best part about Internet marketing is that everything is measurable. Some technology providers will even automate the reports you need to take a few minutes a week to get a great snapshot of how things are going, who is excelling and where your process needs fi ne-tuning. The most important numbers to track are the following:

• Number of visitors to your Web site • Conversion ratio • Closing Ratio • Average gross profi t • Cost per sale by lead source including your Web site and third party lead providers

Again, Congratulations!

Congratulations to the Top 10 eDealers and thank you for sharing your insight on what it takes to use the Internet to sell more cars. If you have any questions regarding any of the best practices described in this article, please feel free to visit the dealers’ Web sites or send an e-mail to [email protected] and be sure to read next month’s cover story where we’ll publish our interviews with the Top eDealers of 2005.

Patrick Luck is the editor and publisher of AutoSuccess Magazine. He can be contacted at 866.432.8276, or by e-mail at [email protected].

continued

Bill Heard ChevroletSugar Land, TXContact: Mike BachesPhone: (281) 491-9000

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Question: Joe, what do you mean by Market Vs. Management Driven?

The average dealership is fi nding it much tougher to compete in today’s market. As an industry, we’ve always been challenged to stay on the “value building” path in “Sales”. After 9/11 when the rebates hit hard and fast and never let up, a lot more dealerships made the transition to price–focused selling instead of value–focused selling and by doing so, gave up their opportunity of consistent growth in sales and profi ts.

Does it matter? Dr. Edwards Deming talks about what happens when quality declines and we’re seeing it happen now. Even as every manufacturer is focused on reducing the number of problems per vehicle and CSI is high, the quality of the buying experience is dropping. Rebates have always come and gone ... this time they didn’t. Extended rebates equal higher costs, so manufacturers and dealers take their eye off the goal: a quality product and experience. They focus on expenses and try to save their way to a profi t, instead of focusing on building more value and selling their way to a profi t. When your focus turns to saving instead of quality, you begin a process that erodes your sales, profi ts, customer base and long-term growth.

Why? Because you have three types of customers: Loyal – Satisfi ed – Unsatisfi ed.

• Loyal Customers keep you in business. They may ask about price, but in the end, they buy YOU and the value experience. That’s why sales people who tell us they doubled their sales said they did it by slowing down, staying off price, building more rapport and focusing more on building the value of their product and dealership. Loyal Customers are the least expensive to get and keep, they buy more, refer friends, and produce higher revenues.

JoeVerde

Management Driven Dealerships

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• Satisfi ed Customers are more price focused, and if you don’t convert them to value buyers, they’ll turn on a dime for a cheaper price down the street next time around. If your goal is just good CSI instead of Loyalty, you’ll lose most satisfi ed customers.

• Unsatisfi ed Customers = no more sales. Note: More are dissatisfi ed with the buying experience than the price.

Can you give me an example of Market vs. Management Driven?

Market: If you’ve ever had a boat, been in the middle of the ocean and lost your electronics, your steering and your engines, you’ve experienced what it’s like to be Market Driven. You don’t know where you are, have virtually no control, don’t know what to expect next and you drift with the winds and current. You are defi nitely on the “hope plan”.

Management: With even a 50¢ compass, a torn map, one sputtering engine and loose steering, you’ll know where you are and can start heading where you want to go. Nothing about “hope” – you have a plan, a direction, some control and momentum.

We’re at a crossroads in today’s market, and your dealership’s future depends on whether you choose to be Market or Management Driven. Becoming Management Driven is tougher because you have to think, plan and take action every single day as a Management Team to consistently move forward. With Management you have control - with Market you have to hope for good luck.

Don’t just “hope” – plan – and have your best year ever – every year!

Joe Verde is the president of the Joe Verde Group. He can be contacted at 866.802.5455, or by email at [email protected], or visit www.joeverde.com.

Market Driven Dealership

• 30 percent of sales to repeat, ref., internal & outside prospects• 70 percent of sales to walk-in and from advertising • Huge ad budgets / high cost per sale (CPS)• Constant turnover of sales people• Untrained management / no or poor teamwork• Price Advertising, Presenting & Closing• Below average sales people: 10- 11 units or less• Mgmt. blames market, sales and customers for low sales• Stagnant annual unit and profi t growth

Management Driven Dealership

• 70 percent of sales to repeat, ref., internal & outside prospects• 30 percent of sales to walk in and from advertising• Low ad $ / focus: internal bus. dev. / low CPS• Virtually no turnover of sales people• Well trained, effective management team• Value advertising, presenting and closing• Professionals in sales: 12 units or more• Mgmt. tracks, trains and manages for sales increases • Consistent unit and profi t growth every year

Market Driven vs. Management Driven

8.5

SUMMITBESTPRACTICES

EVENT SURVEY RESULTSTopics Covered:

Quality & Credibility of Presenters:

Would You Come Back:

Location:

Overall Experience:

We asked attendees what will make the next Summit better:

8.48.25

8.89.4

Small group breakouts, more time to ask questions. Great job putting this Summit together!

General Manager, Toyota, Milwaukee, WI

Very worthwhile, overall outstanding. If we make money with the ideas, we will be back!

President, Honda/Toyota, Seattle, WA

On whatever the topic, use real life dealer speakers as you did in this Summit to add real world practices and successes.

General Manager, Ford/Acura/Nissan, Ellicott City, MD

I think this was great. There were several different ideas represented in the sales and marketing departments which gave us a lot of ideas on how to grow our dealership. Thanks for all your work preparing the Summit. It was great meeting all of you.

Internet Manager, Chrysler Jeep Dodge, Dayton, OH

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Courtesy Chevrolet�s FourKeys to Selling 380 Additional Units

RobertRevere

Master the four keys to more Internet sales and the sky’s the limit. I say this because at Courtesy Chevrolet we went

from selling 45 units through our e-Commerce Department to 75, then 150, 275 and now 380. Our success can be credited to getting it right in four areas: Traffi c to our Web site (we’ve experienced a 800 percent increase in the past two years), the right Web site that is capable of converting a high percentage of those visitors into leads, people and process.

TrafÞ cWhether we’re talking showroom visitors, phone leads or Internet leads, the fastest way to increase sales is to increase traffi c, and that doesn’t happen by waiting for the “Up Bus.” Anyone in our dealership will tell you that I am not a “computer guy” and I’d even be a whole lot happier if e-mail would just go away. So I was very surprised when we launched our virtual dealership and found that our new Web site was actually generating increased phone traffi c and showroom opportunities. This is technology I can use. After measuring the results for a few months, we took a look at how much money we were spending on newspaper and radio and decided that the most cost-effective

way to generate traffi c was to focus our marketing efforts on boosting the traffi c to our site in order to drive sales growth. Our fi rst step was an obvious one; we bought all the Web site names and elected to tag all of our conventional advertising with www.HouseOfCourtesy.com but the bulk of that 800 percent increase in traffi c can be attributed to search engine optimization and e-mail marketing.

People don’t use yellow pages anymore, they use search engines, and search engine optimization is the best way to ensure that your Web site appears at the top of a list. We are able to track that we get top positioning and loads of traffi c to our site. But our best results come from multi-media e-mail marketing campaigns. I can target my audience, send thousands of messages and measure the results. Our campaigns are specifi cally designed to include a call to action that links customers back into our site, which in turn pulls them into the buying process and sets them on the path to scheduling an appointment. We have found that e-mail marketing has all of the benefi ts of direct mail but it’s free, easier to measure and faster to send.

A Web site that can convert trafÞ c into leadsOur site converts as high as 21 percent of our visitors into leads by devoting 90 percent of the space to what customers are looking for 90 percent of the time. We learned that our old site hurt our business because it was diffi cult to navigate and frequently qualifi ed prospective customers out of stock by failing to offer a similar or alternative vehicle if the exact one was not currently in inventory. When a site shows customers that we don’t have what you’re looking for they will immediately eliminate you from their shopping process.

Our Web site not only resolves the challenge of “No Car in Stock,” it automatically sends a virtual test drive to the customer on the vehicle they inquire about and links them back into the Web site to take them further down the road to the sale. All of this includes multi-media animation that can be viewed quickly even on a low-speed connection and has proven to successfully drive traffi c, build value in our dealership

and convert a higher percentage of our unique visitors into leads. What excites us most is that everything is measurable and we know that if we continue to increase our quality leads we will continue to sell more vehicles. That’s our most important metric.

PeopleI don’t care how great your Web site is, if you throw a lot of traffi c at people who lack the skills, training and aptitude to handle Internet and phone leads, you will only succeed in irritating your customers. We send all our phone and Internet leads to a dedicated team of people who operate our Customer Relationship Center or CRC. We have found that it is imperative to fi nd people who love the phone and shine on the phone because in reality, an Internet lead is just a phone up on steroids. We work hard to fi nd people who match our CRC Specialist profi le, love working in customer relations and we work daily to ensure that every member of our team is a blackbelt on the phone and a master at bringing in customers.

ProcessAssuming you have the traffi c, the Web site for converting the traffi c into leads and a team of superstars, your process will make or break you. When we went live with our system, we took the time to clearly defi ne every step of the lead management process to deliver a consistently professional experience to 100 percent of our customers 100 percent of the time. In creating our process we had to think through issues such as how to handle pricing and what to do when a customer inquires about his or her trade value. If there’s one thing I’ve learned in going from selling 45 vehicles to 380, it’s that every member of the team needs to understand and support the process 100 percent. Get your team involved, get its input, hold it accountable and fi nd a way to generate passion and belief in your process, and the sky’s the limit.

Robert Revere is the eCommerce director at Courtesy Chevrolet. He can be contacted at 866.873.0034, or by e-mail at [email protected].

�

�

... if you throw a lot of trafÞ c at people who lack the skills, training and aptitude to handle Internet and phone leads, you will only succeed in irritating your customers.

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marketing solution

EXPOSEDAuto Dealer Speaks Out and Reveals the Raw Truth about That �Consultant �Trainer,� Mark Tewart,

Who advertises in this Magazine All the Time.

This guy, Mark Tewart promises all sort of things to us car dealers � sales and management strategies for our dealerships that he �promises� really pay off. Such as strategies that will increase sales without increasing your advertising. Ways to increase gross proÞ t by $200 a car minimum. How to reduce and eliminate water in used cars and so on. Every time I read one of his ads, I thought, �Who could be dumb enough to fall for this guy�s rap?� Now, I�m going to tell you the raw truth about this guy and his �success secrets.�

My name is Chad Hawkes; I live in Oklahoma with my wife and child. I went to college here and became a salesperson at a car dealership. I was a struggling salesperson with little direction and not much of a future if my results stayed the same. I didn�t know what I was doing and was frustrated everyday with the business. I needed a change and I needed it quick.

One day our dealer hired a consultant and trainer named Mark Tewart who ran all these ads with these big claims. However, our dealer told us he had known this Mark Tewart guy for several years going back to when he was a new manager at another dealership. Our dealer told us to hang on to our hats because this guy Tewart was a Þ reball with more real valid information on success in the car business than anyone he had ever seen and that he wouldn�t have become a dealer before he was 30 years old without Mark Tewart.

Most of what he taught us was so different from what we had ever seen, heard or been taught by other so-called experts. As we listened to Mark�s information, we saw a whole different way to develop a high income career rather than just make a sale here and there. We heard sales skills, people skills and life skills and found freedom from the cheapest price, roll around in the mud, bait-n-switch ugliness. Best of all we learned actual skills to reengineer our business (managers and dealer as well as salespeople). I even looked in the mirror and saw Chad Hawkes differently. So, skeptical and grateful at the same time, we left the workshop with a workbook and CD�s full of ideas.

The next day I began to implement 10 different Mark Tewart strategies. Over the next couple of weeks, as I got them up and running, they all surpassed my greatest expectations. Let me give you an idea of what I am talking about. My Þ rst year of implementing Mark�s strategies, I became the number one salesperson and my production tripled. I began to get my life in order as well. Every time Mark came to the dealership he taught me lessons that made my whole life change for the better. After a period of big increases, I was promoted to manager and attended Mark�s Management workshops. Once again, I was amazed at how much incredible information I got and how much it improved our dealerships sales and proÞ ts. Our little country dealership, located in an economically challenged area had improved from 40 units a month to over 325 units and we had become on many months the largest dealer of our brand in the state!

Personally, I went from struggling to winning. I became the General Sales Manager and then bought my own dealership and now own two dealerships before turning 30 years old. How, you ask, could such a thing happen? The answer, simply, is learning how real proven and effective sales and management systems work, from the �master�, Mark Tewart. In spite of everything you hear about business being slower and tougher, my business is booming. Just a couple of Mark�s strategies alone has allowed me to go from 40 used cars a month to over 120 a month operating out of a trailer! Thanks to Mark�s ideas, systems, inspiration and encouragement I have two dealerships and have bought the ranch of my dreams for my family.

What is important is that Chad Hawkes can sell a ton of vehicles, get plenty of referrals, is unaffected by competition and has �real� systems in place to realize a huge proÞ t every month. I knew Mark had it Þ gured out when after one consulting session he showed me over 40 ways to grow my business and make more proÞ t. He is brilliant. So here�s the raw truth about this Mark Tewart guy: Unlike most of the �pretend� experts, he is a bona Þ de trainer-consultant and money making genius, who can do anything from tweaking to transforming your business, so you not only make a lot of money, but you can make it a lot easier and more enjoyable than you can imagine.

Maybe you are already doing well already � but you could do better (some of Mark�s most ardent students make many millions per year). Maybe you just don�t want to be sold something that�ll be a waste of your hard-earned money. About that you can relax. Mark guarantees his stuff.

I�ve got over $1,000,000 reasons why you ought to investigate what Mark has to offer. What reasons do you have NOT to look at this? And here�s how easy it is: Mark has prepared a straight-talk, detailed report � �HOW TO RECRUIT, HIRE AND TRAIN A DREAM TEAM OF SALESPEOPLE,� which you can have absolutely FREE of cost or obligation. Get it, read it and decide for yourself whether or not you want to get in on Mark�s information. It�s that simple. To get your FREE Special Report go to www.tewart.com/specialreport or call our 24 hr. hotline at 1.866.432.2468. You will hear a brief, free recorded message and be able to leave your name and address, so your report can be mailed to you. Or write �report� on your business card or letter head and pop it in the fax machine or email it. Mark�s fax number is 513.934.4588 and his email address is [email protected] - Either way, you will get his eye opening report rushed to you, free.

By the way, I wasn�t paid a penny to write this about Mark. I am a car dealer just like you. I did this just as a way of saying thanks to Mark for everything he�s done for me. And I am not the only person who feels this way. With your report, you�ll get a book of actual comments from some of the over 10,000+ other salespeople, managers and dealers he has helped. Most like me are now making more money, with less hassle than ever before. More business that we handle ß ows in everyday� proÞ tably. All we can say is this, �don�t envy us. Join us�.

Chad Hawkes, Hawkes Motors, Pryor, OK.

P.S. Please don�t get my number and call me. The last thing I need is a zillion phone calls asking me about Mark. I�ve said what I have to say right here. What else could you possibly need to know? Instead, call 1.866.432.2468 and ask for your FREE SPECIAL REPORT today. You owe it to your business.

888 2 TEWARTvisit www.tewart.com/specialreport for a Free Special Report or call

283.9278

The Importance andBeneÞ ts of a Credit Application

TonyDupaquier

One of the main functions of a credit application is to guard the fi nancial interests of the dealership. Unless the customer

pays for vehicle using cash, actual cash and not checks, the dealership becomes a lender. As a lender, the dealership has the right to pull a customer’s credit.

How is the dealership a lender? If the customer writes a check, it will take a few days for that check to clear and for the money to be transferred into the dealership’s account. Therefore the dealership is lending the customer money until the check clears. The same goes for drafting from a bank or credit union. The loan may be only for a day or two, but there is still a risk involved for the dealership. In your next meeting, have the business manager show and explain this to the entire sales staff and desk managers.

One of the biggest challenges business offi ces face is the lack of credit applications on customers who go to their own bank or credit union or for those who pay via check. Without a credit application, it becomes very diffi cult to conduct a proper customer interview. Without an interview it is impossible to create the need for

the products sold in the business offi ce, and attempting a conversion without an application is near impossible.

A credit bureau on every customer will soon be a legal requirement. As a provision of the Patriot Act, dealerships will be required to run all customers though a national security database called the Customer Identifi cation Program (CIP). Dealerships must do this for every customer. A dealership can do this or enlist a secondary company to do it. Many credit bureau companies offer this

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f&i solution

service for an additional fee.

The credit application is also the customer’s story to the lender. With the advent of services like CreditNet, many dealerships have gone to a fi ve liner instead of using a full credit application. This short app does not provide enough information when speaking to a lender of a credit-challenged customer. Even though many lenders use credit scores to determine loan approvals or tiers, the information gathered with a credit application becomes invaluable in your next create-a-deal meeting. The credit application can show stability and the ability to repay a loan.

According to the Fair Credit Reporting Act, which went into effect in September of 1997, a dealership is not required to acquire a signature to run a credit bureau. All the customer must do is make an overt act toward purchasing an automobile. It is considered to be an overt act when a customer has settled on a specifi c vehicle and is engaged in discussion regarding the sales price or payment options in a business environment. A business environment would be a sales person’s offi ce, business offi ce or any location within the dealership where deals are discussed and consummated.

A casual discussion between the customer and the sales person while walking on the lot or a customer wanting to take a test drive of a vehicle does not constitute an overt act.

It is a requirement of the credit bureau companies and many of the lenders, that dealerships have customer authorization to run a credit bureau.

The credit application is no longer an optional piece of paperwork in the dealership; it has become mandatory for each and every deal, and its importance and advantages must be conveyed to the appropriate dealership personnel.

Tony Dupaquier is the director of F&I training for American Financial & Automotive Services Inc. He can be contacted at 866.856.6754, or by e-mail [email protected].

�

�


The credit application is no longer an optional piece of paperwork in the dealership; it has become mandatory for each and every deal, and its importance and advantages must be conveyed to the appropriate dealership personnel.

Across the Board Increasein Service and Parts Revenue

JosephSchmoke

Place emphasis on retraining service managers and service advisors in a more customer-friendly approach.

This retraining and continued education is resulting in dealerships numbers going from 35 percent to 56 percent increases in labor and part sales in only a few months.

Six or eight days of training seldom imbeds new habits. Dealerships experiencing success with new methods fi nd that training and education must be ongoing to be effective.

To affect culture change in a dealership, the dealer-principal and the general manager appreciate that customer patterns have changed. Customers expect to be treated well, and have trouble-free automobiles. Customers in for service, cannot be simply written up and routinely sent to the waiting room. Customers must now be shown a higher level of service while building assurance that the dealership is the place to bring their vehicle for all things automotive.

The components of culture change in a dealership’s service department are easy to master, which creates customers-for-life. The fi rst step is the appointment process. When the customer calls and the appointment is set, a fi le is prepared and reviewed the day prior to the appointment. In it is detailed information on the customer and the vehicle’s history, along with recall information, if any, and recommended service intervals. A call is made to confi rm the appointment and prep the customer for anything they need to bring with them. When the customer arrives for his or her appointment, the service advisor greets him or her with a smile and a cheery, “Good morning, Mrs. Smith, we’ve been expecting you.” Customers react positively to being greeted by name by someone who’s been expecting them.

The next step is the walk-around, which entails walking around the car with the customer, pointing out the condition of the tires, opening the hood and checking the fl uids right in front of them. The walk-around serves more than one purpose. The most important goal it accomplishes is to create a friendly relationship between the service advisor and the customer. A large amount of trust can be built to ensure customer loyalty. Customers can be satisfi ed and not loyal, but

they can’t be loyal and not satisfi ed.

A professional walk-around will result in additional labor and parts sales on a monthly basis. This additional revenue comes from items that customers may normally do or buy elsewhere, such as wheel alignment, batteries, wipers, tires, mud fl aps and light bulbs.

Culture change in the service department has resulted in across-the-board increases in service and parts revenue for dealerships that have embraced and applied this proven approach to serving customers.Joseph Schmoke is the president and founder of University Consultants LLC. He can be contacted at 800.901.3058, or by e-mail at [email protected].

january 2005 31

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KarenDillon

Huge Dividends inHappy, Loyal Customers

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Franchised dealership service departments have experienced increased competition from independent repair facilities and

quick-lube centers over the past several years. A startling statistic shows nearly 70 percent of new car buyers choose service facilities other than the selling dealership during their ownership cycle. Capturing this business is critical to the dealership, both in service department revenue and customer retention.

Dealers have attempted to address customer perceptions that competitive facilities are more convenient and less expensive by offering express-lane service for maintenance items and posting their pricing in the service department. Many have also extended their service department hours, offering more evening hours and, in some cases, weekend hours.

Dealerships can be proactive and devise a system to re-capture these customers. Some recommendations include:1. Regularly reinforce to the entire staff the importance of retaining customers in service.2. Establish a process and hold key people accountable to ensure the service department is presented fully to each customer at the time of delivery of his or her vehicle. At that point, the sales person should:• Communicate that all dealership associates are aware the customer has many choices for purchasing and servicing their vehicles and emphasize the dealership’s commitment to earn the customer’s business in both sales and service. • Introduce the service manager and/or service advisors.• Discuss the dealership’s highly trained technicians and explain they are specialists for the particular vehicles the dealer is selling.• Discuss the dealership’s investment in specialized tools and equipment to enable it to properly maintain and repair today’s vehicles.• Review the normal maintenance required to keep the factory warranty in effect and explain the dealership maintains all service records.• Schedule the customer’s fi rst service appointment, thus beginning the customer’s relationship with the service department.

3. Provide a tool that offers ease and convenience for those customers who prefer to use the Internet to schedule real-time, on-line, confi rmed service appointments. The use of such a tool:• Increases customer loyalty. • Increases customer satisfaction.• Increases customer frequency.• Increases customer retention.• Increases service department effi ciency.• Increases service department revenue.• Saves time on in-bound telephone calls.• Drives traffi c to the dealer’s Web site.

Along with the competition, another factor in reduction of service department business is the change in manufacturer-recommended maintenance schedules. The three months, 3,000-mile oil change is a thing of the past. Manufacturers are recommending maintenance services at 5,000 miles, 7,500 miles or even more extended intervals.

These factors reducing the number of vehicles coming across the service drive make it imperative for the service department to maximize the revenue from those customers they do see. As always, only necessary services should be sold. You never want the service department to gain a reputation of recommending unnecessary services.

The initial contact with the customer when he or she enters the service drive is of utmost importance. This is where the service department relationship can be established and nurtured. Be certain the customer is greeted promptly and pleasantly. Make sure someone is available to greet every customer as he or she enters the service drive. Complete attention needs to be directed toward each customer in for service. How good does it feel when you arrive at a place of business and you are greeted by name?

Continually train your service advisors in sales and customer service techniques so they are prepared in advance for each customer as he or she enters the service drive. This includes reviewing all service history on the vehicle, confi rming all necessary parts are available, researching vehicle recall status and planning to offer services for which the vehicle is due that the customer had not requested when making the appointment. The most effective approach is to take time to discuss the

recommended services with the customer, explain his or her vehicle is due for such service, what the service entails and how it benefi ts them. This open communication creates trust which results in increased profi ts, CSI and customer loyalty and the frequency with which they spend money at your store.

An example of the right way and wrong way to sell additional services:(Wrong Way) You haven’t had your tires rotated for over 9,000 miles. Should be done every 6,000 miles. Want us to do that? (Right Way) The last tire rotation performed on your vehicle was at 30,000 miles. The manufacturer recommends tires be rotated every 6,000 miles. This is an inexpensive way to reduce tire wear and extend the life of your tires. We could do that today in conjunction with your other services for only $_______. Wouldn’t you like for us to complete this service for you as well?

The fi rst impression is very important, and just as important, is the last impression. When the customer comes in to pick up his or her vehicle, again reinforce the fact the dealership values his or her business. This is certainly communicated by the attitude of each dealership employee, along with either a vacuumed, washed car, a coupon for a free car wash or a coupon for the next scheduled maintenance. An effective and inexpensive idea is a note from the service manager thanking them for their business. These can be printed in advance, attached to each repair order and, in case the customer has any questions or concerns, provide either the service manager or customer relationship manager’s contact information.

Spend the time and effort necessary to be certain everyone in your service department, whether it be the service manager, service advisors, cashier and anyone else who has contact with the customer, either in person or via telephone, appreciates the importance of each and every customer being treated as a “Very Important Person.” This will pay huge dividends in happy, loyal customers; repeat business and additional revenue in your service, parts and sales departments.

Karen Dillon is the president of TimeHighway.com. She can be contacted at 800.901.3170, or by e-mail [email protected].

Subscriptions for $1a Day!NIADA Member subscription rate only $368 year. Nonmember subscription rate only $468 year.

Endless hours of education for franchise and independent dealers, sales people, auction executives and vendors.

EDUCATIONAL PROGRAMMINGM “How To Sell A Car And Keep It Sold Part 1 - Noncompliant Paperwork:

The Greatest Area of Legal Exposure in a Dealership”

M “How To Sell A Car And Keep It Sold Part 2 - Commencing theCustomer Relationship”

M “IRS Bank Secrecy Act and Form 8300”

M “Vehicle Remarketing: Auctions and the Dealer”

M Preview “How To Break A Car Deal”

M “Standardized Dealer Accounting Part 1 - Standardized Accounting and the Financial Statement”

M “Information Technologies and the Auto Dealer”

M “The Garage Liability Insurance Crisis”

M “How To Attract Lenders To Your Dealership”

M “Incoming Call Part 1 - Putting More Fun Back Into Your Business (What the Receptionist Should Be Saying)”

M “How to Best Serve the Hispanic Customer”

M “Complying With The FTC Used Car Rule”

M “How to Establish and Operate a Related Finance Company”

M “Steps to a Motor Vehicle Sale: A Review of the FormsInvolved in a Motor Vehicle Transaction”

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MHow To Break A Car Deal (Q & A Session)

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M “How To Sell A Car And Keep It Sold Part 4 - Privacy, The Patriot Actand Your Dealership”

M “How To Sell A Car And Keep It Sold Part 5 - The FTC Used Car Rule(Buyers Guide) and Related Warranty Issues”

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Sample Programming

www.autosuccess.bizsuccessful solutions at34

DavidA.Fish

Sophisticated e-Newsletters CreateInterest, Detect and Qualify Buy Signals

Smiles, discussions of terms, holding hands with the spouse, etc., are buy signals sales people pick up on as customers progress

toward buying. A customer walking into your showroom is the ultimate buy signal. What if you could determine if your customers are sending you buy signals before they ever set foot on your showroom fl oor?

Well-written e-newsletters are powerful customer retention tools, keeping dealerships top of mind between showroom visits. They deliver even greater value by driving customer interest in new products and promotions and then helping dealers to detect and act upon buy signals arising from the customer’s interaction with the e-newsletter.

Content creates interest and actionE-newsletters are marketing tools that help you create and then elevate customer interest levels. The fi rst step is to add content that pushes customers and prospects to take action.

For example, you can run factory or dealership offers to help convert shoppers into more of a buying mode. Certain time-driven offers can boost interest even more by creating a higher level of urgency. Good examples are limited-time fi nancing promotions or early lease termination. When a reader engages with this content, he or she is in effect sending a buy signal. The next step is to capture, measure, and act upon it.

Detecting buy signalsThe right content is necessary for creating and elevating interest, and it becomes more valuable when you can tell which readers are engaged and what is their level of interest.

There is e-newsletter tracking available that shows how recipients interact with articles and offers. It can tell whether or not a recipient reads an article and how far he or she drills down into it. It can also tell you if a customer reviews a promotional offer once or multiple times. Taking it to the next level, you can embed a “shadow form” (an offer-specifi c inquiry

form between the e-newsletter and your dealership’s Web site) at the end of an article, in a promotional offer or both. When the reader clicks on it, the form pops up and provides an opportunity to request more information about the topic or offer. E-newsletter services can track this behavior and provide a detailed lead report showing you who in your subscriber base is ready for a response from your sales team or business development center.

Qualifying the level of interestNot only does content tracking monitor who is interested, it helps dealers qualify and prioritize prospects by the level of buy signal. If a recipient reads the fi rst few paragraphs of an article but doesn’t click through to the more detailed information on a jump page, then he or she may be only mildly interested and not really sending a buy signal.

However, if a customer or prospect reads an entire article, perhaps more than once, or clicks through to a related promotional offer, then he or she is sending a real buy signal.

Recipients who read articles or promotions then click through to your Web site or fi ll out a shadow form, are sending very strong buy signals and qualify as hot prospects.

Content tracking functionality not only enables you to detect these different levels of buy signals, it does so on a recipient-by-recipient basis. Some e-newsletter solutions provide e-mail addresses mapped to a specifi c individual’s interaction with content as part of a sales lead report. This makes the tracking information easily and instantly actionable.

Respond immediately It’s important to have a systematic approach to following up on buy signals generated by content tracking reports. Identify who on the sales force or marketing team owns the responsibility and require immediate follow-up. A prospect who is clicking around your e-newsletter and Web site for information can easily click to competitors’ sites, too. Keep them interested in what your dealership has to offer.

Recipients who fi ll out a shadow form when they click through a promotion, intend for

you to contact them. If they provide you with a phone number, then you already know what to do. If they don’t, respond right away with an e-mail that compels them to make a showroom appointment before a promotion expires.

Assessing e-newsletter solutionsThere are in-house software products, turnkey e-newsletter services and ways to integrate e-newsletter services with your Web site, CRM and DMS systems. The key is to make sure that the information captured by the tracking is as actionable as possible. Reports should be automatically generated and easily interpreted. Ideally, individual viewing behaviors should be mapped to corresponding e-mail addresses.

Gain advance knowledgeof customer preferencesContinuously fi ne-tune your e-newsletter, with buy signal capabilities, to deliver more valuable feedback. Your customers walk into the showroom having done extensive research on their vehicle purchase, your dealership and perhaps even your inventory. E-newsletter buy signal reports give you advance knowledge about your customers.

Example: You have several 30-year-old customers who have previously purchased coupes or sedans. Content tracking shows they recently spent a lot of time reading an article on mini-vans for growing families. Now you have the advantage. You can anticipate their needs and send an e-mail promoting a mini-van offer just for new parents — perhaps you offer a car seat to customers who respond within a certain timeframe. You’re now in a position to have a trade-in, upsell and fi nancing strategy mapped out by the time the customer comes in.

Information is power, in this case, selling power. And you get this selling power by extracting the most value out of your e-newsletter — driving interest, detecting buy signals, and then following up with an offer your customer can’t refuse.

David A. Fish is chief executive ofÞ cer of IMN (iMakeNews Inc.) He can be contacted at 800.871.0012, or by e-mail at dÞ [email protected].

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marketing solution

january 2005 35

The Value ofa Professional T.O.

JimAdams

By making sure your managers are controlling the sales process and taking one last chance to close the sale, you

will increase gross profi t and sell more units. Sales people must appreciate that a professional T.O. is a step of the sale not a sign that they have made a mistake. Professional T.O.s increase closing ratios and gross profi t.

It is the sales person’s responsibility to give the customer an effective meet and greet, investigate the customer’s wants and needs, build rapport and select a product. It is also the sales person’s responsibility to provide the customer a professioanl demonstration and presentation and ask test closing questions through out the sales process to move the customer closer to the sale. The T.O. can come in any part of the sale to help move the process along or at the desk to aid in closing the sale.

There are two basic types of T.O.s. The early T.O. and the desk T.O.

The early T.O. should come early and often. A focused desk manager should pay close attention to the opportunity that is at the dealership at all times. Many managers get side tracked by daily activities and are not focused on the most important event that is happening in our dealerships right now. That is the opportunity in the showroom. By monitoring the showroom traffi c, the sales manager can watch for and identify problems on the lot that can lead to a lack of product demonstration. Remember, 99 percent of the customers that leave your showroom without a demonstration drive will not buy. When the sales manager sees that a customer and the sales person are

��

wandering through the inventory he or she can approach the customer with a fl y by early T.O. The sales manager should briefl y introduce themself in a non confrontational way and begin the process of asking investigating questions that will lead to a product demonstration.

Identify the customer’s wants and needs and help the sales person move the customer on to a demonstration. Remember the key to the sale is a professional product demonstration and presentation. Fifty percent of customers will buy on the spot, given a great demonstration and presentation. Get the customer and the sales person headed in the right direction and get out of the way. It is important to remember that the T.O. does not replace the process. It is an effective way to move the process along.

Depending on your sales process, the next T.O. can move at different times. To ensure the total effort with every opportunity, every customer that is prepared to leave the dealership without buying must be turned over to management.

A professional T.O. is easy and non confrontational. Sales person, “Before you folks leave I would like to introduce you to Jim Adams because he is our general sales manager and in case I am not here when you come back, I want you to know someone else at the dealership.”

At this point the sales person will shut up and let the manager clarify the objection, isolate it, overcome and close the sale. The manager may even send the sales person on a mission. This means getting the sales person out of the picture so that the customer can speak freely without losing face. The customer wants to buy the vehicle or he or she would not be at the dealership. Many times a second face will be all it takes to close the sale. It is a powerful part of the professional sales process.

A professional T.O. of every opportunity that enters our showroom will increase closing ratios and gross profi t, which means to you that your income will increase and ultimately your quality of life too.

Jim Adams is the general sales manager at Roper Kia in Joplin, MO. He can be contacted at 800.905.0627, or by e-mail at [email protected].

Fifty percent of customers will buy on the spot, given a great demonstration and presentation.

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MarkTewart

Building Your Business

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Have you made the commitment that automotive sales is your career choice? Unless you commit, it’s impossible that

you will take the necessary steps to create the business you desire. Long-term thinking in addition to short-term goals are keys to continued success.

When you fi rst enter into a sales position, 80 percent of your time is spent acquiring customers and 20 percent of your time is spent maintaining those customers. Eventually, with the right efforts, that model should be reversed. Eighty percent of your time should be spent maintaining your customers and 20 percent to acquire new customers.

You face a paradox of time management in building your business. The paradox is that you must work in the business and also work on the business. When you are face-to-face with customers you are working in the business but no matter how busy you are, you must fi nd time each day to work on the business, as well. Working on the business includes marketing, prospecting, follow-up, networking, delegating, automating etc.

Insurance sales people, real estate sales people and sales people from many industries continually think and act on building their business. However, in the auto industry the majority of sales people seem addicted walk-in traffi c. Eliminating this addiction is the key to long-term success.

Lead Generation = Dollar Creation. Begin to build multiple streams of leads by building

a marketing web. List every way you presently acquire leads such as walk-ins, phone prospects, be-backs, referrals, repeat customers. Then begin to list new ways you could begin to acquire leads and how you can strengthen or add to your existing methods of generating leads.

Do you presently have a software program for following and managing your leads? Not the dealerships program, your program? Don’t trust anybody or anything to manage your most important resource – your customers.

Secondly, do you have a set follow up strategy? How often will you follow up? How will you follow up. What rewards will you give, and what special offers will you provide to bring them in for service? That creates the Law of Familiarity and Obligation leading to repeats and referrals.

E-mail follow-up and marketing is essential.

Automate your follow-up using technology. E-mail, Autoresponder e-mail and Sequential Autoresponder e-mail are all ways to follow-up and add value that can be done while you sleep or on vacation. Video e-mail and personalization are keys to making a connection, removing the impersonal nature of e-mail and adding the wow factor.

All sales people need their own personal Web site. The site should include sign-up forms that collect e-mail addresses. The site should be personalized with your picture, family picture, your own personal story, rewards for visiting the site and helpful information for the customer. Your Web site should include an audio introduction link.

Do your business cards look like 99 percent of others sales people’s business cards? Don’t use a picture of a car, use your picture or caricature. Business cards also need the sales person’s Web site, e-mail address and slogan. Put a call to action on your cards for the customer to come see you, call you or visit your Web site.

Maximize traffi c by creating a be-back CD. Create a CD that you give each customer who does not buy and invite them to play it on the way home. The CD should include information about you, your dealership and product that would benefi t the customer. Include testimonials and a reward for the customer if they come see you.

Create coupon swaps with businesses around you. Visit a local restaurant and offer to build their business on their worst traffi c day of the week for free. You can build their business by creating a coupon with an offer they approve and then pass these coupons out at work from the cashier, receptionist, and all departments to every customer who enters your dealership. In return ask that the restaurant pass out coupons from you approved by the dealership with a special offer to come see you.

Once you start the marketing web it will grow and take on a life of its own. Building a business fi rst requires long-term thinking and a commitment to the industry as a career. When you commit, you have already created a business, only its shape is unfi nished.

Mark Tewart is the president of Tewart Enterprises. He can be contacted at 866.429.6844, or by e-mail at [email protected].

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Business cards also need the sales person�s Web site, e-mail address and slogan. Put a call to action on your cards for the customer to come see you, call you or visit your Web site.

KirkManzo

Sales people are the same wherever you go, whether those sales people are here in the states or elsewhere. While

recently working with a dealer group in Puerto Rico to implement a menu system for its F&I department, it quickly became evident in speaking with the management staff in both sales and F& I (obviously in Spanish) that the issues they are dealing with regarding their sales force, are the same issues you face every day, complacency and inconsistency.

In this respect, sales people are really the same as all people: We become comfortable with our situation. This is evident when you begin to examine a sales person’s behavior as it relates to his or her sales production from month to month. If you were to chart it on a line graph and provide the printout for a cardiologist to examine, as though it were an EKG read out of a patient, most doctors would pronounce the patient (your sales person) as either DEAD or at the least critically ill! Why?

Because the graph would refl ect the constant peaks and valleys we all see from a sales person’s production. One month they are knocking down the pins as quickly as they can be set up, selling 15, 18, 20 units or more, only to fi nd that the next month they struggle to sell just 7 or 8 units or less.

So why does this occur? There are certainly many opinions, but the explanation David Sadler, founder of The Sadler Institute, a sales training organization, provides is particularly insightful. He commented that the reason a sales person will rocket his or her results one month only to subsequently fl ounder the next, is due to that individual’s self-image and defi ned personal worth. In other words, sales people will only allow their production (and income) to equal the amount he or she feels worthy to receive.

Evidence of this is found when a sales person sells enough vehicles to achieve a monthly income well in excess of what he or she actually needs to meet all of his or her fi nancial obligations. Jim Ziegler calls this having the “Nut Mentality,” the idea that once a sales person reaches that income

Human Nature:Taking the Path of Least Resistance

comfort zone, the drive to continue is at best reduced and at worst completely eliminated.

So as a concerned sales manager (meaning you are concerned about keeping your job since you are also paid and evaluated on the collective sales results of the group) how do you deal with this inherent limitation and problem?

The best solution is that you must establish minimum standards of performance. Ask yourself these questions. Can a bad sales person (someone who sells very few cars) still make a living at your dealership? Is there someone working on your sales team that has no business being at your dealership? Do you keep a sales person around just because, “well, he or she is a nice person, and besides who will get the breakfast biscuits for us in the morning?” Remember you are running a business, it’s not personal, but if he or she is going to continue to work for you, he or she must perform to the standards you have established to remain on the team.

Well then, what should be the minimum amount? To begin implementing this process, the minimum amount is less important when compared to your willingness to do what is necessary to give credibility to the program. Meaning, if the minimum number is 8 units per month (24 units over 90 days) when someone sells only 23 units in 90 days will you have the intestinal fortitude to eliminate that person from the staff?

On the fi rst week of each month, sit down with every sales person in private and establish targets for income, units sold, number of ups, demo drives and write ups. Review their actual numbers as compared to their forecast numbers from the previous month (this assumes you keep track of these vital stats). At each meeting, appoint ahead for the next month’s review so you both place this event in your calendars. This will ensure the consistency you need to give the program the accountability and credibility you want.

Good luck, and make something happen!

Kirk Manzo is the general manager at Ziegler Supersystems. He can be contacted at 800.858.6903, or by e-mail at [email protected].

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january 2005 37

MichaelYork

I Think I�ll Have an IdeaToday was a big idea day for me. Had one of those lately? It started out disguised as another

ordinary day … going over some numbers, accounting, balancing, you know. Around lunch it shifted to reading some computer software (not exactly my strong suite), but suddenly…BANG! A big idea shows up! I mean an “out of the box so big it’s scary” kind of an idea. We got excited. Ideas can have that kind of affect on you. Especially big ones.

When was your last big idea? Did you act on it? Did you even recognize it as a big idea, or just pass it off as a daydream? Most of the big successes you and I read and hear about and contribute to in today’s marketplace started out as someone’s big idea. And they acted on it! Not a passing thought that sat quietly by and raised its hand to be noticed as an idea … I’m talking about an idea that cleared the room and fl ipped over tables and chairs! An idea so big that you could think of nothing but this BIG IDEA!

COOL. I’m writing this to you, to remind me to ACT! And to encourage you to do the same. To move on your next big thing. Today ended with an idea that could be like that song that debuts at No.1 on the charts. Or a book that ships as a best-seller. B-I-G Big! A big idea that doesn’t just make you smile, it makes you laugh out loud!

I’m sworn to secrecy in the here and now, but I’m trusting that you’ll hear about it one day. And I’m challenging you to act on yours, so that I’ll hear about it one day. Think. And then act. Give it a shot. Go for it. Why not? The new year is here, why not meet it with some new ideas? They may seem small at fi rst, but get you excited about asking the “what if” question.

Not just resolutions (that are soon forgotten and seldom acted upon), but a solid goal

or direction or idea that you’ll commit to and begin to pursue. Get going and watch the law of inertia get on your side and propel you in the direction of completing, competing or winning in whatever you’ve chosen.

Commitment is stronger than motivation, and new ideas require more than just an occasional nod of “yeah, that’s a good idea.” History confi rms that all great ideas were pursued by individuals with an unshakeable commitment. From Tom Edison to Orville and Wilbur Wright to Henry Ford to Walt Disney to Bill Gates and on and on.

Most great ideas we see from the view of completed or failed, more of the fi nished product variety. That we can easily say, “Oh sure, why didn’t I think of that one?” Or, “Man, I can’t believe he thought that would work.” At the fi nish line it’s easy to make the call on winners and losers. But the real courage is in the beginning. In the believing and questioning. In the commitment to pursue an idea.

How can you make the world a better place? Have an impact on your kids? Write

a book? Grow a new business or provide a solution or bring value to the marketplace? How can you do your job better or dramatically improve the way you sell your products and services?

With what kind of “big idea” thinkers do you associate? Or are you just hanging around the whiners and complainers? What’s the last book you read that inspired you? (Or don’t you read for inspiration?)

Once a great idea appears, it’s time to take action. All great ideas that we now know about have one thing in common: someone acted on them. In the beginning of new information and new ideas, capture now, decide later. The beginning is too soon to decide whether or not your new idea is just a daydream or a whopper of a great idea. Capture it on paper. Give it some thought.Nurture it. Water it. Give it a chance to grow. Take some action in the direction of your idea and see where it can lead.

One caveat though, don’t look for confi rmation from those around you on your new big idea. Sometimes it’s tough for even successful people to see your vision as clearly as you, especially in the beginning when it’s fresh. In the beginning of some radical new “thing” the crowd is seldom right. It takes visionary individuals committed to making their ideas work. Never stop asking “What if?”

Want a list that will help you get started? It’s my list, but it might just help you in making your list go to www.autosuccess.biz. and click on the box that says: Michael York’s BIG Idea List.

Michael York is an author and professional speaker. He can be contacted at 800.668.5015, or by e-mailat [email protected], or visit www.MichaelYork.com.

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In the beginning of new information and new ideas, capture now, decide later. The beginning is too soon to decide whether or not your new idea is just a daydream or a whopper of a great idea.


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Dear Harry:

Just thought I would drop you a note to tell you that the promotion was a terrifi c success. I have done many promotions throughout the years, and the following impressed me:

1. Your people in charge were knowledgeable and were very structured.2. The support staff were energetic, organized and had a lot of fun.3. The majority of the customers were fi rst time buyers at our store so the residual will benefi t our organization for years to come.

All in all, you delivered what you pitched. My staff is ready for round two!

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#1 PRE-OWNED INTERNET DEALER SHARES ALLwww.DickHannah.com is the #1 pre-owned internet dealer

ick Hannah in Portland, Oregon uses a new digi-tal marketing strategy to sell hundreds of vehicles

a month and has become the biggest pre-owned internet dealer in the US. They used this new strategy to sell hundreds of vehi-cles and this article will show you how they did it. Joe Orr and Matt Dorsett from Dick Hannahõs organization will answer ques-tions to give us some insight into how they became the #1 pre-owned internet dealer in the world.

Why did you initially get involved with the internet?We realized that most of our customers were using the web to research before they bought their vehicle so we wanted to make sure we marketed where most of our cus-tomers were. We learned that 70%-80% of our customers were starting their shop-ping online and we wanted to take them from the web to our dealership. So thatõs

exactly what we did. First, we re-evaluated our advertising budget and we realized that we were spending more money than ever before on mass marketing but our results were not increasing as much as we wanted. There are more television and radio stations today, so it is harder to reach a large audi-ence with out being on all or most of the stations. In addition, the papers have con-solidated so their prices are very high. Also, the traffi c they generate is not the most prof-itable traffi c we have because our ads are right next to many other dealerships and the primary focus is price which drives down the average gross profi t. The bottom line is that we were spending more to get less and we could not effectively measure our return. It became clear that there had to be a better way and the internet was the obvious choice for targeted marketing. Shortly after initiating our new internet marketing strat-egy, we were spending a lot less money and attracting a lot more business that we could measure.

How did you set up your strategy and your people?The fi rst thing we did was to get the right people and that has been the key to our success. We have an amazing team: Babak Mohammadi is the GSM for our Kia store and DickSaysYes.com and he also oversees our Customer Relationship Center and Sub-prime department. Angie Turja manages the call center and 8 employees in the Cus-tomer Relationship Center every day. Matt Dorsett oversees all of our internet activ-ity for the group and there are many other people who are the reason we have been so successful. Without great people we would not have accomplished half of what we have accomplished so far. Most recently the department just added two more wom-en onto the team who will handle Spanish customers only. Dick Hannahõs Customer Relationship Center handles all internet and sub-prime leads and their primary goal is to set appointments. “Our team does a won-derful job following the process of selling the appointment and our sales team then sells the car” said Babak.

SuccessStorySuccessStory

After getting your people in place what did you do next?We started by getting leads from a number of 3rd party lead providers. This helped us get started because we had enough leads to keep our people productive right away. We also used the leads from our website as well. Immediately we learned that the best leads came directly from the website but we did not have enough of them. As a result, we promoted our own website to increase the number of high quality leads that had a 20-25% closing ratio. Today we are using a blend of leads from our own website and from a select group of 3rd party lead provid-ers that give us leads that have a high clos-ing ratio and a low cost per sale.

What lead providers do you use and why?We signed up with many lead providers but there were some of them that gave us terrible leads so their closing ratio was very low and their cost per sale was too high. Therefore, we only kept a few high quality lead provid-ers like AutoTrader, Cars.com and Dealix. Today our primary source of leads and sales are now from our own website but the 3rd party providers give us access to many buy-ers who initially want to start with an objec-tive 3rd party company. In addition, our lead providers have a national presence and they have exposure in places we do not. Our goal is to leverage their exposure while we make sure that our website is the dominant online buying service in our region.

How did you set up your website?We had some pretty good template websites through Cobalt but they were not generat-ing a lot of sales so we decided to get a new website through a company called BZRe-sults.com. BZ created our site and we used their tools and training to establish ourselves as the primary internet buying service for our region. The key to our new website is that it generates internet leads, phone traffi c and showroom traffi c while promoting all of our profi t centers: New, Used, F&I, Service & Parts.

What has made your website so suc-cessful?Our old website looked good but it didnõtgenerate results. It was just an information center and it did not do a good job creating leads and traffi c for the dealership. Our new website is more like a marketing center and it drives traffi c and sales. The bottom line is that it is a very important marketing tool and thousands of prospects visit it every month

so we wanted to make sure it was the best site in the market. Today, our website is our primary source of leads and the closing ratio for our website leads is 2 to 3 times higher than any of our other leads we get. Also, our site is very easy to use and it gives the customer more information than our manu-facturer site does. Lastly, our entire website automatically updates itself so it does not require a lot of our time or attention.

What do you have on your site that is different from other dealers’ web-sites?First of all, our site is getting great results. For every thousand people who visit our website it converts 3 to 4 times more visitors into leads compared to our old site. Most technology companies who build websites donõt understand the car business and they build sites that may look good but they donõtget results. Our site builds value in our deal-ership over our competition and ultimately generates more opportunities through the internet, phone and showroom. Our old site did many things that would actually hurt our leads and opportunities because it would qualify customers out of our inven-tory and tell them that we did not have the vehicle they were looking for. Our new site never qualifi es anyone out of stock because we have a virtual inventory that allows the customer to pick any car they want. In addi-tion, customerõs can take a virtual test drive on our site which gives them a multi-media tour of the vehicle they are interested in. These tours have sliding pictures, animation and sound. The best part is that these multi-

media tours stream on a low speed 56k con-nection so 100% of our customers on a dial up internet connection can view them.

Are there any other unique things that customers can do on your website?Customers can research product informa-tion, read positive reviews, view compari-sons, get Kelley blue book information and much more. Also, when a customer is look-ing for a pre-owned vehicle they can view multiple pictures, print a brochure, view a lemon check, send the vehicle to a friend and they can even view a multi-media pre-sentation that shows them what we do to certify their pre-owned vehicle.

Do you use the web to help customers get fi nanced also?We direct every customer who is interested in a vehicle to complete a secured online credit application. In addition, we have a special fi nance department that sells over 150 cars a month so we have a specifi c website for all of our sub-prime customers. You can view this site by visiting www.DickHannah.com or by visiting www.DickSaysYes.com. Most of our sub-prime leads come from the web and it has been a critical part of our busi-ness.

How about Service Online?We have a virtual service and parts depart-ment on our website where customers can schedule an appointment, buy parts or simply view our service menu. In addition, we have a personal website for each of our customers on our Virtual Dealership. The personal websites are designed specifi cally for the customer and it provides them with critical product infor-mation including recalls, service reminders and so on.

How do you manage all of the leads your website generates?We use a web-based customer management system called “BuzzTrak” that helps us cap-ture and control all of our prospects in one data base. All of our leads from every source are sent into one tool and it will automati-cally source and distribute the right leads to the right people based on their schedule. We use the tool for our daily planner and it re-minds us to do the things we need to do to be productive. In addition, it automates many of the activities we would otherwise need to do manually. The best part of our tool is that it automates the majority of our email processes and prospect follow up which gives us more time to focus on selling cars.

Success Story

“DickHannah.com has helped us sell hundreds of vehicles a month and it is completely different from any other site in the market.” Joe Orr, DickHannah.com

What is automated and why is it impor-tant?The automation ensures that the process is done right all of the time and it solves the problem of people not executing consistent-ly. In addition, by automating most of the follow up it allows us to handle more leads per person which saves us a lot of money in staffi ng.

Do you automate all of your email cam-paigns?No. We automate our initial response to cus-tomer inquiries, prospect follow up for 4 months and ongoing follow up after the sale including CSI, Service reminders, Birthdays, Anniversaries, Renewals ect… However, we have other types of campaigns as well. We use Buzz Trak to send out a lot of permis-sion based bulk email campaigns and direct mail campaigns to drive more traffi c. Our system has hundreds of pre-packaged multi-media buzzmails that we can send out to customers with a click of a button. This is an important part of our system because it helps market our website and our dealership without spending any additional money on advertising. One important thing to note is that you cannot do email campaigns without a large email data base so we have a strategy to gather and store our emails.

How do you gather emails in the deal-ership?There are many ways to gather emails. We began by gathering all of the emails we al-ready had in our dealership management system and lead management tools. Our sales and service team also ask every cus-tomer for their email address. The key to this process is that they always ask the customer for their email and attach a benefi t to the question. For example, the sales team asks all of our prospects if they want us to send them a “Free Virtual Test Drive.” The cus-tomer always say yes and then gives us their primary email. We also added the email fi eld to all of our forms and we put merchandis-ing around the dealership with posters that say “Do you want a FREE VIRTUAL TEST DRIVE?” In service we have posters that offer customers a “Free Personal Website” and the cashier has small cards the custom-ers can fi ll out with their email. We measure our email gathering process every day and I get an automated report every morning that gives me an overview of all of our oppor-tunities from the previous day including the type of prospect (showroom, phone, internet, etc.), the source, the status and more. I can use this to get a global view of what my peo-

ple are doing and I can drill down to view the details if I want. For example, it will show the salespeople that gathered email address-es and the ones that donõt.

How did you market your site?Initially we added our website address to all of our ads including print, direct mail and others. Then we had a lot of success with our email marketing campaigns. We send out thousands of multi-media emails called “buzzmails” to our database every month. These emails are like little commercials that stream over a low speed internet connection. What is unique about these movie mails is that their fi le size is compressed so they can stream on a low speed internet connection and our customers do not need to download anything to view them. Most importantly, they drive a lot of traffi c to our site and to our dealership. The best part is that we donõthave to pay anything to send them and I can send a campaign in a few seconds from any computer that has internet access. We also do a lot of online marketing so we can drive cus-

tomers from other sites to our sites. Search engines are very important and our website is optimized for all the major search engines and key search phrases. Lastly, we have re-lationships with many regional websites that link customers to our site. Fortunately, our marketing strategy has done an incredible job in creating more traffi c to our site and in turn this has dramatically increased our leads and sales.

What type of people do you staff your department with?We look for people with great sales, phone and follow up skills. The key to our peopleõssuccess is that they have been trained on the process to sell the appointment rather than trying to sell the car over the phone. In par-ticular, our best people follow the phone guide and they understand how to answer all of the customerõs questions and objections. The good part is that if they do a great job selling the appointment the closing ratio of showed appointments is very high.

Success Story

-DickHannah.com becomes the #1 Pre-Owned eDealer in the world.

-Dick Hannah put the right people in place and that was the key to their great results.

-Dick Hannah shifted their advertising strategy to focus on the internet because 70-80% of their customers start their shopping online.

-Dick Hannah uses internet marketing to improve their sales and service profi ts and to reduce their advertising expense and cost per sale.

-Dick Hannah has dominated their market on the internet by setting up their own regional buying service at www.DickHannah.com.

-DickHannah.com, their website has won many awards.

-Dick Hannah hired BZResults.com to set up their e-marketing system, websites, crm tools & training.

-Dick Hannah uses email marketing to attract new buyers because it is a very cheap advertising medium that gives them a high return.

-Dick Hannah has trained their people on a successful process to improve their closing ratio and sales.

-Dick Hannah uses a customer management system to manage and measure all of their customer activity.

-Dick Hannah uses their CRM tool to automate their email and follow up activity. This automation guarantees that things get done and it allows the sales team to handle more leads per person.

-Dick Hannah have increased their sales and profi ts by expanding their strategy to target Hispanic buyers.

What is your Process for handling leads?We fl ow charted our sales process in our initial training meeting. We have found that when we stick to the process we get great results. The most important part of the pro-cess is the phone and our ability to sell the appointment. All of our internet leads are automatically imported into one tool that or-ganizes them by source and distributes them to the right people in the department. In ad-dition, the tool automates the majority of the email and follow up activity so our team can spend more time on the phone setting appointments. We have been able to almost double our closing ratio by following up with

people and the majority of our follow up is automated. I get a report every morning that gives me an overview of all of the previous days opportunities on the showroom, phone and internet along with the status of where they are in the process and the key metrics I need to focus on to improve our results.

How do you handle your pricing?Our average gross profi t is usually similar to our showroom gross profi t. The most im-portant part of our pricing strategy is that we try to sell the appointment and not the price. When we do address the price we ask for a fair profi t and we also emphasize the unique benefi ts they receive by buying from

us versus our competition. In addition, F&I and accessories are an important component for internet sales because when it is handled properly the internet customers back end profi t can exceed the back end profi t of tra-ditional showroom deals. In the end, our success de-pends on how well we build value in our dea le r sh ip , people and products and not just price.

Success Story

“DickHannah.com has helped us sell hundreds of vehicles a month

and it is completely different from any other site in the market.”

OLD WAYCustomers began their shopping at the dealership

NEW WAYNow Over 80% Start Shopping on the Net

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