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Still Ignoring The “C Word” Will Cost You

The “C Word”. You know, that word. The one that makes dealership executives’ skin crawl, makes sales people laugh, has trainers’ mouths drool and absolutely keeps your store from its true potential. It even has female staffers cringing, question working at the dealership. Say it with me….CULTURE.

Ignored by only the bravest of souls who understand the kind of wrath and trial it brings. Changing culture takes balls. It takes work. It takes time. And it takes an unrelenting focus as well as undying commitment. We all know it, so why do so few do it? Weak leadership? Lazy management? Not necessarily. Mostly it’s due to the lack of understanding what the intermediate goals during and wins at the end of the effort are. You know…not starting with the end in mind.

Culture, by definition, is a way of life of a group of people–the behaviors, beliefs, values, and symbols that they accept, generally without thinking about them, and that are passed along by communication and imitation from one generation to the next.

In other words, you’ve built the existing culture and it’s continued nearly blindly. In order to change a culture, the industry has historically resorted to spiffing or spanking. That’s not truly leading a culture change, rather a practice of distraction. So we take adults who should otherwise be able to achieve a change and create a different focus. Then we shoot down the same adults when the incentive or punishment dissipates. Quit setting your business up for failure!

Culture change takes conviction and creating lots of buy-in. We do that a lot with lead management and sales coaching at IM@CS. Creating adoption breeds results. More than taking the same business rules and communication requirements from dealer to dealer, like most consultants and trainers do, it takes a focus on sustainable actions through owning efforts, responsibility and results at each individual business.

Instead of blaming incompatible software, say desking and CRM, for why salespeople don’t complete their logging and steps in tracking and following up with customers, create an environment where sales supports each other and daily reports reign. And back it up with at least one weekly sales meeting run completely out of CRM. Over-simplified? Possibly. Worthwhile? Absolutely.

Culture? It’s everything or it’s nothing. Yeah, that will reflect everywhere…

 

Best Practices: Professional Insight, Powerful Results

September 18, 2015 by Gary May 0
Homogenization is for Milk (If You Drink That Sort of Thing), Not Dealers

“If digital were that easy, everyone would be doing it” said no automotive OEM executive, ever. But somehow, over the past few years, it seems as though they did. Meaning, for the most part, they don’t do anything digitally and yet…they expect their franchises to through some very forceful measures.

The dealers don’t win. The consumers don’t win. The car companies win. Concessions. That’s all. And not the kind that sell more cars. No, car sales are not up due to websites, erosion of gross or 84 month leases. Car sales are up because of demand, available loans and because, yes, the cars (all of them) are being made better today than ever. Oh, and of course, because your website company says their marketing rocks and they deliver the most low-funnel consumers to your doorstep (yeah, those reports make us puke, too).

Homogenization has never been greater at a time when nearly every smart person in marketing (automotive and non) says to create differentiation in every aspect of your business. Yet your OEM digital representative, who was in sales operations three years ago and brand communications a year ago, comes in and says that you have to/should use website provider A or B (that doesn’t have a fully responsive mobile platform, let alone one site), CRM vendor C2, search marketing partner D5B and consulting company WTF (who’s consultant was born the same year your rep graduated Northwood and worked at a Verizon store last).

If you’re smart and digitally savvy, you’ll run as fast as you can the other way. Why? Because selfishly, every digital know-it-all can do a better job? No. Because, unless you have a well under-performing store that you can plug any brainless automotive digital veteran into, buy more leads and sell more cars, they’re after your data, customers, results and ideas through managed programs. Yes it’s absolutely essential to have every retailer represented well digitally, however if a dealer wants to think that digital is a fad and not put resources into the top consideration generator, let them do so. It’s natural selection in business folks, let ’em sink.

Being made to look like every dealership with the same banners, offers, landing pages, newsletters, paid marketing and social media is a slow, miserable existence. An import dealer shared today that during his recent brand marketing meeting, an OEM digital overlord told him that he should have the ability to turn off all of the factory marketing if he had his own. Unfortunately, his website company (OEM-endorsed) didn’t allow him to and the third-party, in-the-way-of-your-results consulting firm didn’t have an answer on if he could or not. (the OEM guy did take notes and will report back!)

Another dealer chatted with us about not having proper used car data on their OEM-endorsed websites for their group. You think that the car company loses any sleep over used car anything, let alone mis-equipped listings potentially losing thousands of dollars?

It’s time to take your marketing over if you want to. Yes, it’ll take time, money, measurement (you don’t understand now), resources, patience and a die-hard willingness to learn, changing your dealership culture. And it has to start with the dealer and general management. Not for a dashboard or an award, not for a magazine cover shot or being called up at a conference. And quit talking about visits or sessions, that’s so 2008. Nothing cooler than telling your dealer “we had 1,000 people on the lot and in showroom, sat down with 28 and sold 4!”. By the way that’s what your website says.

All of this is because if something doesn’t sell or service a car, or get someone back to your dealership, it’s not worth buying or using. And nobody, not one person, after working with hundreds of dealers, on OEM programs, at 20 Groups, conferences and webinars, producing second-to-none content, social and SEO, can convince us that standardizing marketing and solutions across thousands of retail points across North America can do anything other than paint the industry with a bland brush.

You don’t deserve that and your customers don’t deserve that. Will Rogers once said “If you find yourself in a hole, stop digging”. Unfortunately these OEM digital programs have created a Crab Mentality by literally not letting those that choose to get ahead. Good intentions, poor execution.

You can do much better. We hope. (310) 377-6481 or info at imacsweb.com

 

Best Practices: Professional Insight, Powerful Results

September 16, 2015 by Gary May 2
DSES: Can You Feel Me Or Is It The Customer Experience?

DrivingSales Executive Summit 2014 is officially in the books. It was a sold out event once again that enveloped the Bellagio Hotel in Las Vegas for the better part of three days. Planned was a (digital) star-studded keynote speaker list plus some of the finest breakout speakers, many dealers, for those in attendance. Here's some highlights form the event from IM@CS' perspective:

Day One

Just as last year, there was a Canadian Breakout Session housing some of the top companies from our neighbors to the north along with some powerful presenters including Grant Gooley and Jeremy Wyant. Jay Radke and Brent Wees definitely brought the "eh" for a second time. Rumor is that next year will be bigger and better (and DSES will NOT be during Canadian Thanksgiving!).

After Emcee Charlie Vogelheim’s grandiose welcome of the attendees, DrivingSales' founder Jared Hamilton managed a uniquely powerful opening recognizing a few members of the car dealer community from stage for thie personal triumphs and celebrations. Most poignant was a heartfelt message and standing ovation for Courtney Cox Cole of Hare Chevrolet. Just completing her last round of chemotherapy a few days prior to the opening of DSES, her presence was missed however her spirit was felt.

The first keynote was Florian Zettelmeyer of The Kellogg School of Management hitting hard on data, telling dealership attendees to get smart on analytics. Well, it was more like "become data scientists", however put the message was clear. This year's Best Idea Contest followed and the audience was treated to some unique ways of approaching the "digital sprawl" that's occurring for dealerships (winner was a repeat of last year, Robert Karbaum). Add to that Mr. Vogelheim’s “costume” unveil, a cowboy shirt that was a present from CADA’s Tim Jackson.

Breakouts began and the session IM@CS attended was with Shaun Raines and Tom White Jr. As expected they hit their stride quickly offering specific actions to dealers that want to build a unique brand, market awareness and make customers the center of their world. Word back from other sessions was positive.

The Fireside Chat that followed had good information however it lacked some of the powerful punch from previous events (DSES and Presidents Club) that had the audience leaning forward or nodding/shaking heads in agreement/dischord. Jared guided Cars.com's Mitch Golub and DealerSocket's Jonathan Ord through a bevy of industry-directional questions and statements.

Day one's evening keynote was Brian Solis, who essentially is Altimeter Group's head analyst focusing on disruptive technology. As expected he brought insight, candor and a new perspectives to the majority-dealer audience, bringing up challenges and opportunities that the industry is facing now and in the near term. He touched on customer experience, the mobile audience, disruption occurring now that is effecting vehicle sales (Tesla and Uber were examples). He signed books immediately after as the reception began.

Day Two

 

Mike Hudson from eMarketer, a nicely-paced review of where the target is moving with consumers in regard to mobile, engagement, disruptive tech and how the sales funnel has move. Like Solis the evening before, he warned dealers and OEMs to stay up with consumer demand for information and provide only value-based experiences.

Breakouts followed and included such speakers as Bobbie Herron and Brian Armstrong in a joint session on utilizing a BDC or not and Jeff Kershner discussing the mobile-based shift for today’s showrooms. Then Jared hosted a fireside chat with two top executives from the newly-formed CDK Global (previously The Cobalt Group). The keynote before lunch featured Adam Justis of Adobe talking about how dealership marketing must be customer-centric and fully integrated, further pushing the “customer experience” drumbeat for the weekend.

After lunch it was Innovation Cup time and this year’s finalists covered a broad range of dealer services. Not all new however all had a updated take on what is essentially consumer engagement via their technology (NewCarIQ ended up with the win).

Then, it was time for speed listening with Jared Hamilton. His keynote this year, “Competing on Customer Experience”, was another blistering wordfest of reality and must-do strategy, followed by a first-of-its-kind video compilation of customer feedback on car buying experiences. The full study isn’t due until next year, however the teaser included a handful of truthful, hard-hitting testimonials that dealers must listen to.

Afternoon breakouts ensued, showcasing among others Eric Miltsch of Command Z Marketing on wearable tech, Megan Barto of Ciocca Honda & Hyundai on dealership culture, Mike Martinez of DMEautomtoive on putting mobile as your top strategy, Mario Clementoni of NADA on best practices and Joe Chura of Dealer Inspire on website/lead optimization. Chura gave out some valuable “freebies”, third party tips, software/programs and offers that included one from Google not previously known.

Closing our day two was a second-time speaker that couldn’t have come at a more appropriate time. Rand Fishkin of MOZ (formerly SEOmoz) dove right into what must-use best practices need to be deployed today for SEO to stick. Raising the bar he set two years ago, his presentation dealt with can-do/don’t-do advice and the Q&A addressed misinformation/misconceptions that many dealers hear regularly through auto industry sources.

Day Three

Charlie and Jared started the morning with the winners of the Innovation Cup then immediately into the 4th Annual Digital Media Debate hosted by Joe Webb of DealerKnows Consulting. A slightly different format than previous years, two retail executives, two consultants and two vendors addressed topics ranging from Adaptive vs Responsive websites to relying on third party leads, conglomerate vendors versus specialized suppliers and one-price stores versus traditional.

The last round of breakouts showcased Christian Salazar of DealerFire on how consumers are finding your website and content, Aaron Wirtz from Subaru of Wichita recapping how the store addressed their potentially damaging PR debacle and turned it into a complete positive (that ended up going viral) and David Kain of Kain Automotive talking about how to make memorable connections with your customers that last.

Closing the 2014 DSES event was Bryan Eisenberg of Eisenberg Holdings. His presentation, bookending Florian’s from Sunday, was an appropriate ending note on the customer experience “Cool-Aid”. Hitting right on topic after topic regarding analytics, measurement, impending trends in consumer shopping and more, Mr. Eisenberg pulled no punches in telling dealers how they need to change their marketing practices to match the consumer path.

Charlie then reintroduced Jared for the shortest closing remarks of the six years DSES has been produced for the industry’s leading dealerships. It was a fitting end to what surely was the most information-filled conference of the year.

Kudos to the DrivingSales team!

 

Best Practcies: Professional Insight, Powerful Results

October 22, 2014 by Gary May 0
Want R.O.I. on Anything? Start Using Anything! (Or Settle For B.S.)

One of the first questions that is asked of us when engaging a dealership is “what is the R.O.I. of (fill in the blank)?” Well our friends, from leads to software, to websites and PPC, the question that is being asked is wrong.  If you ask what is the R.O.I. of a product, let me ask you what is the R.O.I. of air?

Well, it’s noting if you don’t use it.

Over the past seven years, we have proven over and over a multiple R.O.I. on all digital aspects compared to before we arrived. And remember, that is usually with no or little vendor changes. Why is this? Because there is no return of investment without education, understanding and utilization.

Dealerships usually buy due to fear or loss, standardization or acceptance of a product, or a unique opportunity (first-in-market). Rarely are those opportunities truly vetted out. While we are not saying to stop before purchasing a product or service that has market penetration because there is a compelling otherwise to do so, we are advocating full assessment prior to signing.

Take lead providers, for example. While most have taken a (B.S.) marketing position and away from you buying leads, most dealers have more “opportunities” in their ILM/CRM than they know how to handle. Buying more leads? Usually you drop your R.O.I.

Also, return on investment is calculated improperly. Is it closer to income and expense or profit and loss? Yes. Until you are properly educated, coached and assessed regularly, there is no R.O.I. because the assumptions are in the wrong place. Show me a dealer closing 10% of their leads, add another provider and, after six months, you will have a dealer with a higher cost structure closing 10% of their leads. Insanity.

Spoiler alert: do the math, work it and get results. For every new website, software, marketing tool and process, you must back it up with hard-core training (no matter how much that word sucks) and sustainment. That is how our average client that buys in fully to our processes and business rules doubles results in less than a year.

Recently we have heard about more catastrophic website or software installs than ever before. What’s the R.O.I. on a vendor search, pitches, proposal and negotiations, set-up fees, months frustratingly lost followed a switch back to the previous or another new provider?

Stop talking about R.O.I. until you spend more on your personnel, education, accountability, scoring, bonuses (not get-it-done spiffs, by the way) and intra-staff support. That’s when you get return.

Until then, you can continue to buy based off of “your competitor is using this and they’ll eat your lunch” or “only 5 more cars sold with our biz-bang-boom and you’re in profit!” or any other snake oil sales job you fall for.

Oh…and one more thing to consider. Results occur top-down with an true ownership, understanding perspective. Not bottom-up make this work garbage. So take that pill and swallow it…

 

Best Practices: Professional Insight, Powerful Results

 

August 27, 2014 by Gary May 0
You Didn’t Care About The Cheese In the First Place, So Move On

Many today rant about change and how someone moved their cheese. The mindset of those who expect a static retail world show many who effuse about “the Good Old Days” while using mobile apps for airline tickets, ESPN Mobile for football scores and drive times delivered to their home desktops prior to leaving for the office.

The paradigm hasn’t shifted as much as it’s already taken the dirt nap.  If you’re not ready for consumer-based everything, it’s time to reassess where you fit into automotive retail.

As an industry, we fall grandiosely behind what consumers expect. Recently a friend of mine’s mother was shopping for a vehicle.  They caught an ad (yes, a newspaper one) and showed up at the dealer to find out that the stacked rebate offer was sold only the day before.  After reprimanding that they should have never looked at a newspaper anything, the shopper retooled and headed out via web-based information (the new 2013 vehicle was purchased yesterday, from an honest dealership).

Since the very-public FTC crack down (and resulting settlements) on dealerships just a couple months ago, it is easy to see that the cheese moving has nothing to do with our comfort zone, consumerism or reality. By and large, dealerships will continue to do as done: Get the customer in. foursquare them, throw the keys on the roof and keep them caged for a number of hours, lest they escape when the salesperson leaves for the “desk”.

A few weeks ago, at the Innovative Dealer Summit in Denver, my presentation included a statement: “given the chance, 75% of dealerships would turn off their websites tomorrow”. Frankly speaking, that’s likely not too far off from the truth. This is based on entering and speaking with hundreds of dealerships a year. What can be done to alleviate the burden from those that don’t want it?

Automotive retail must move at the speed of the consumer, not pull the wool over their eyes even faster!  The longer we live in year-1995 speakers and training, the faster customers will leave and push consumer-direct sales and other alternatives. Remember folks, 1994 was the year that Ford initially launched FordDirect.com!

The tools, data (for some- to most-part), capabilities and technology are available to us today. Let’s not bury the positive side of retail with 6-hour visits, bait-and-switch tactics, “we’re always here” mentality and less-than-deserved experiences because we are still waiting for the “up bus”.

If you aren’t ready for the cheese to be moved (newsflash: it already did), move on. Let someone else fill your position rather than having your sales staff ask a potential customer “would you buy it for fourteen-five?” when you don’t intend to come off of seventeen and back that up with an awkward T.O. only to find the customer gone in a minute! Consumers expect more, and damn it so do you, so why do it?

Maybe it’s time to forget the cheese and move onto whine… (Oops, meant wine).

 

Best Practices: Professional Insight, Powerful Results

April 29, 2014 by Gary May 0
Automotive Digital: The Cost of Being Minimized

It's no secret that we're on the move. All of us. You might even say that the speed at which things change is breakneck. What is less known is that as we speed toward wherever "there" is, the more we seem to be willingly giving up. The homogenization of dealerships is rampant…and it's the dealer that checked the box.

Our industry moves at the speed of retail. There is no two ways about it. While the mainstream media still focuses on what happens with the OEMs, just know that you are the king, not the pawn. That is until you make a choice: hire the preferred vendor so you can co-op funds; use the standard POPs since it's easier; use the brand website so you don't have to "maintain" two. And so on.

Consumerism is driving retail, which is at conflict with the OEMs. At the same time, dealers by-and-large are giving up the ghost because of cost. Well folks, the greater cost is being minimized. You can want it as much as possible and you still won't have your cake and eat it to. At least not in the digital realm.

So while customers are screaming for attention, service, why-buys, value, appreciation, satisfaction and validation, you throw a redundant website, a canned script, a formulaic email, a prepackaged walkaround, a canned welcome and broken sourcing practices at them. All to hopefully deliver the same car that's available at multiple competitors.

Very few dealers are making the investment to differentiate everything about their operations. You will never sell more saving money. You will never retain more customers while cutting costs. You will never achieve market increases while focusing on consolidating services. You will accelerate your demise.

Progressive businesses continually stay in front of trends, measure more effectively, create opportunities, listen more effectively, invest wisely and attract more eyeballs and customers. Those that don't….don't. 

The OEM-supported and mandated programs that are happening and a growing rate many times are being managed by companies simply adding on costs. Their insight doesn't push results, it standardized you. BDCs are being recommended for management by two preferred vendors for one manufacturer right now. You will sound and read just like your closest competitor. Is that your goal? No, is that really your goal? How much money will you save to get your Internet lead and phone closing rates up 10-50%?

If you save $1,000 a month since you can receive co-op funds with one BDC company, did you save money when you lost 20 units that should have been sold otherwise? Your social media is accelerating you to the same fate with most OEM-pushed companies. However since you don't read your own dealership posts, maybe it really doesn't happen.

At the end of the day, it's all good since the reporting says you're doing a great job. Right? Wrong.

The cost of being minimized, standardized and homogenized has still not hit an industry that's nearly minting money again hard enough between the eyes. To those that are fighting the fight, staying agile, focusing on results as much as the bottom line and not losing their grasp on where the digital consumer (which is all of us) is guiding us…here's to you! You'll be the ones who win.

For those who choose to be a mindless, factory clone, here's to wishing you the lost excitement, zest, fire and desire that you started with. You gave up the digital battle for whatever reason you did, hopefully you can save more than your money…

April 25, 2014 by Gary May 0
Prescription Without Diagnosis: (Ugly) Side Effects Are Going To Happen

In a world at a breakneck pace and of mediocre marketing, it
is more important than ever to know what you’re doing if you hope to attract,
let alone keep, consumers’ attention. 
Add to that the entire market essentially being mobile and you might not
be prepared at all to address your opportunities appropriately.

 

As things become more convoluted and confusing (add
consolidated at the vendor level) in digital, there are just as many opportunities
as there were five years ago, if not more. Trust us. The greatest areas of
change are (1) more businesses being online, (2) more solutions being provided
by manufacturers and turnkey providers, (3) software and automation becoming
more rampant and (4) the public having more access via mobile at breathtaking
speeds (read: they typically do not consume traditional advertising when
mobile).

 

What hasn’t changed much are the count of progressive
businesses, those willing to try new methods and technologies, applying
consumer feedback to businesses’ modeling and execution (especially customer
service) and the way businesses buy. Research, contrary to much perception,
really isn’t part of what executives and leaders facilitate or understand. When
is the last time you had a non-vendor evaluate your business’ performance, if
ever?

 

One thing that is creating massive side effects in digital
marketing is the silo-type approach to vendorship. At the beginning of the year
one of the Big Six manufacturers forced their franchises to choose between
three vendors in regard to “management” of their online reputation. This
created a real wrinkle for the retailers that (1) didn’t want to use the
companies for any/other services, (2) understood that the vendors, outside of using
existing automated software, struggle with actually properly setting up,
maintaining and responding to the reviews and (3) understood quickly that, many
times, just as many issues are created as are handled. Now consider this: What
are the benchmarks? What processes have been installed? When does the
reputation management process start?

 

Add to that you absolutely, positively will not succeed in
the online reputation management space without complete buy-in at every
franchise plus it must be supported throughout every organization, entirely top
to bottom.

 

From websites to search engine optimization, from mobile
websites to applications, from search engine marketing to text and live chat,
from customer relation management to integrated marketing, you can’t make a
decision without facts, capabilities, assessment, communication and absolutely,
positively a third party opinion.  Why
would a business make a decision today, with the potential to inflict damage on
their multi-million dollar operation(s) and the future of hundreds of people,
based on what another dealer is doing 800-1,800 miles away or what a vendor
says when they’ll ask a second, third or even fourth opinion on a treatment or
drug?

Are you aware of the side affect of taking the wrong or multiple drugs? Yeah,
you’ve heard the advertisements for sinus medication that basically tells you
that you can die from taking their product if you simple breathe or walk after
ingesting it.

 

So here it goes: buying a potential vendor’s product
(especially if you’re dead set on switching after being “disappointed” with
your present one based on doing no more investigation then compared to now) may
cause loss of customers, lower service penetration rates, bleeding inventory,
loss of margin, decreased customer satisfaction, painful penalties from
headquarters, general business seepage, night sweats for the rest of your life,
or death.

 

Go ahead, make decisions without paying attention to the
side effects. It will either require hospitalization (aka another vendor change
and admonishment toward your 20 Group partners), resuscitation (aka realization
that no, they can’t do that, or it’ll be no better) or dizziness (aka having to
actually ask someone who knows better that’s NOT on the hook of vendors).

 

Disclaimer: No doctors were harmed in the making of this
blog post

 

Best Practices: Professional Insight, Powerful Results

March 9, 2013 by Gary May 0
The Year 2012 In Review? (What’s An Automotive Industry Nutshell?)

(Warning, 1000 words below!)

OK,
who's got their 2013 game face on? Nobody? Good, let's make things difficult!!!
2012 was one heck of a year: consumer demand is still up and growing for cars
(although demand still outstrips what sold), mobile use is skyrocketing (albeit
not remotely matched by dealers providing strong solutions), digital demand is
still growing at a breakneck pace (while use of traditional media by
dealerships is up), vehicle technology, especially in-car, is amazing and
overwhelming (while we still can't truly get a MPG sticker correct without driving like we're dying) and quality
is better than even with IQS improving (hand-in-hand with more
"media" coverage of massive recalls). Yup, 2012 was quite the year…

So ask
a car dealership what they're doing and about 16,500 answers will flutter
around "more _________ and less ________ while focusing on our key
strengths in _____________". And that, by the way, will be the answer
around January 5-15th because, unlike other industries that revolve around
retail, we seem to be focused on a date non later than January 5 to close the
year. Newsflash: 2012 is done. Make more calls, send more emails, offer more
dealer cash/rebates/incentives/consumer cash/financing discounts and leases and
you're still not going to sell more. Hello?!?! The "Oh, we pulled 10 more
from our competitor" crap doesn't fly. You'll sell what was essentially
already in the hopper and be happy with it.

Over the last twelve months we saw
highs and lows in the automotive industry, mostly driven by International
factors like economy, emerging markets, regulation, partnership and bankruptcy.
As a matter of fact, we are more tied than ever to what happens in Europe and
Asia, even considering how insular as we tend to be. Whether or not we get to
see a new Cadillac in the States depends more on what happens in Germany than
ever while BMW's success likely depends on what happens in South Carolina. 2012
saw the continued demise of storied as well as soft brands everywhere.

In the passing of this last year, it's
important to reflect on how we actually invited people into showrooms while not
making it any more enjoyable (except for the new showrooms which mostly made
the factory happy while getting better looking floor tiles and slightly better
tasting coffee to customers and some of those neat kids' play rooms we desperately needed). We
switched website CMSs, dealership CRMs, DMSs, SMSs and POPs but did satisfaction with
dealerships actually go up as much as 2012 IQS? Jaguar is still tops
(well, 2nd behind Lexus for 2012 models) on the list and they can't seem to
sell the damn cats…

What did 2012 deliver to your business?
If you've not asked your customers more than your factory reps, your
salespeople and your accountant, you will miss the boat by a larger gap in
2013. Yes, you will continue to sell cars next year and maybe, fortunately more
again, but where does that stop based on solely looking back or not at all?

Where your concentration needs to be,
right now, is around March 2013 because your next 6-8 weeks are already figured
out for the most part. No matter how many "cycles" we have, after 100
years of automobile sales most think that there is some magic to the last few
weeks of the year. Bullhooey.

If you want to succeed starting next
Tuesday, there is no other way to do it than be steadfast in every aspect of
your staff, processes, facility and follow through. Your greatest efforts need
to be put into place around the touch points (hint: it's not the cars!). Those
are showroom (real and virtual) and people. Nothing else matters without those. We are asked regularly how to "jumpstart" sales to the
effect that many talk about in the industry. If you've not been bombarded by
spam marketing and videos, it usually sounds like "100 to 500 cars
overnight with our processes" and "our sales events will have people
driving in from everywhere" and don't forget "our websites will
optimize so well (or drive leads so easily), no other dealer will be able to
touch your numbers, you'll dominate and just have to deliver cars". Rat
dung!

Get the best assets in your business
today that understand how everyday people use technology and expect to be
communicated with. If that means more green peas, then do it! Training?!?!
Tearing down your salespeople to build them back up means you have the wrong
people and wrong processes! It's not "that Internet thing" any more
than your cars are "those things that have engines and tires". It's
time to grow up and look forward. If you 15-pounder 15% of your customers, expect 50%+ of
your reviews to scream you suck.

If you want to look at things in a
nutshell, read another whitepaper about how great a solution is (6- to
12-months after it's relevant while you signed up to get marketed like mad by the
same company) and look backward. Our industry is depending on people who look
forward with only what's needed about past performance as indicators, nothing
else. Improve incrementally prior to making the huge, sweeping changes like we
hear about so much and maybe, just maybe, you'll see about 3-4 months that the
big stuff is not so big after all because you were able to move the needle
consistently. Overnight success is a short-term facade over impending disaster.
Count on it.

2013 can be great for many, even
amongst the raising concerns about economic and other pressures. The best
always raise to the occasion, it's just that it needs to be done in newer ways
more consistently. And remember to make changes with anything that you do by
benchmarking and recording first because so many will pull the wool over your
eyes and scream "we did it for you!". We see it every day. There are
some great dealership partners out there. Remember that opportunity is missed
by most because it comes dressed in overalls. It's work and most of the time
it's slow.

So relish in the success you've had in
2012, you deserve it! At the same time try not to look back all that much. It
will take longer to catch up than you realize. The automotive world moves at
the speed of retail. That is the only truth. So stop slowing yourself down more
than needed.

Much success in 2012 and thanks for
continuing to read…

 

Best Practices: Professional
Insight, Powerful Results

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December 29, 2012 by Gary May 0
DrivingSales Executive Summit 2012: A To Unmarketing

The 2012 DrivingSales Executive Summit has closed its doors with an amazing, energetic event to show. Congratulations to the entire (growing) DrivingSales team, you have left a higher bar to be measured against, once again. With nearly 1000 in attendance, primarily dealers, the vibe was strong around leading-edge strategies. And the expectations were high…

Opening in one of the Bellagio's main ballrooms, with the shortest intro of the four-year event by Jared Hamilton, emcee Charlie Vogelheim introduced Dennis Galbraith to talk about "big data" for dealerships, emphasizing the importance of executable data-based strategy, followed by Luke Wroblewski, renowned mobile expert. The information shared by the former Yahoo design guru wowed the crowd. While not industry-specific, the impact of traffic and studies was easily translatable to both OEM and dealership tactics. The big question was, why are we not better around mobile strategies? The opening reception definitely reflected the excitement for the event.

Florian Zettelmeyer opened up day two with a deeper drive into "Big Data" with a focus on national brands. Like Luke's presentation the evening before, the practical application into automotive was significant and it turned quite a few heads. Feedback from dealers was overwhelmingly positive, and interesting. So were some tweets: one suggested a drinking game each time "Big Data" was heard, the other coining "Big Data" as the…..well you'll have to find and read it.

Rand Fishkin was next and the SEO oracle delivered. Talking points included off-site, social signals, long-tail and other critical search components. The feedback from the session was that it was top-notch. The SEOmoz founder gave dealers (and many vendors) information points that area critical to success, especially given lots of "enterprise" information that is typically given to the industry.

One of the marquee events of the DSES was next…the Best Idea competition. It's best to watch the videos on DrivingSales TV since this post can't quite catch the passion that the dealers being to the table. Everything, at the end of the day, is about the dealer and the industry moves as the speed of retail. So go watch! After the first round of breakout sessions, it was back into the main ballroom for the Innovation Cup. This year cDemo came out on top. Next year those in the running are going to watch to polish up their presentation and explanation skills….

Cobalt was next with their presentation that was supposed to hit on research and, wait for it…. Data that the industry could use relevant to websites and traffic. Some of the points were relevant while many points were already part of existing marketing for most of the dealers in attendance. Then, the full-capacity crowd was rewarded with a gem of a presentation from Billy Beane. The Oakland A's General Manager, who doesn't make public speaking a regular practice, talked about how businesses must be smart, agile and customer-centric, plus saving some tongue-in-check monologue about Moneyball. The audience paid full attention to his ideas, quotes and stories.

Tuesday opened with Facebook and Google…and a heavy dose of anticipation. The two biggest subjects on the industry's mind, Google reviews and Facebook advertising, were not covered due to both companies request. Tom White did as good as possible a job without a full quiver of questions to ask, still leaving some important aspects to be covered by both the search and social giants.

Then one of the most highly anticipated sessions in the industry in 2012: Jared Hamilton hosted TrueCar's Scott Painter for a one-on-one Q&A. Whether Jared took it easy or was tough on who represented the industry's pariah about a year ago or not is of opinion, there were some great questions and responses with some in the crowd wondering what position TrueCar will play into 2013.

Jim Dance followed with a leadership focused presentation that should immediately impact dealership operation. Rich in examples and strategy, Jim did have a post-lunch audience (always tough) that revealed many taking notes. Packed afternoon breakouts brought the event to the evening's joint keynote with JD Power's Automotive Marketing Roundtable. Mini's marketing head Tom Salkowsky talked about their passionate customers and gave chimerical and video examples of just how dedicated Mini owners are.

Then, Scott Straten of "Unmarketing" fame stepped on stage and gave the packed ballroom plenty to laugh, cry and think about. Between chanting "stop it" in regard to mediocre marketing and technology use to bits of "Awesome", his words danced throughout the mix of dealers, OEMs, agencies, media and portals packed i for the following conference. Sick as a dog, Straten simply engaged the audience with the same style and techniques he begged attendees to use.

Amazing event. What will the DSES team due to make 2013 shine? We only have 12 months to find out…

Special announcements: Jared Hamilton introduced industry veteran Kevin Root as President/COO of DrivingSales and revealed that in April 2013, the DrivingSales Automotive Presidents Club featuring Seth Godin. For dealers who want to attend the New York event, go to www.drivingsalespresidentsclub.com

 

Best Practices: Professional Insight, Powerful Results

October 27, 2012 by Gary May 1
Go Ahead, Keep Rebuilding The Mousetrap. Tip: You’re Trying To Catch A Cheetah

Stop what you're doing. Right now! Look back, quickly. Look back for a while. No, not over your shoulder silly. If you've been at least somewhat involved in the digital realm over the past 3-6 years, take a hard look back. What have you done? Where did your advice come from? How much time have you lost? How much momentum have you gained? How many wins have you had? And how many losses?

Everything changes, we know that. We also know that one man's garbage is another man's treasure. So in your looking back, what have you really learned? This is a little beacon asking you to close the door (or if you're in a cube or BDC or somewhere without a door, pretend to) and think about who, what and to where you were following. This is not a call to go back to basics, which is garbage, however it's a call to think. For yourself.

Too often we go with those that have been penned as the thought leaders, gurus, experts, published authorities, subject matter experts, pros, top of their gamers and the like. So that begs a question: what has been constant in your digital presence for the last three years? Four? Five?

Chances are, not much.

Fact is a lot of people, namely business owners and executive management, are scratching their heads over the past months asking themselves "why did we go down the (fill in initiative here) road?". Is SEO alive or dead? Does social media work or not? Did the new close work or deter customers? Was mobile marketing right or wrong? Great questions. Think about it this way: did your last tent event sell lots of cars? But….that's not digital, right? A tent event or massive offsite lot sale is not, true. Neither should your thinking.

All those things promote traffic, sales, new customers, conquest, retention and more. Of course they do…you can ALWAYS sell. Digital strategies are no different than picking up a good book. They're cause to make you think. Not copy! Short term gains never win over long term thinking. And to think you need to know or be on the path to knowing better.

Sometimes it's funny how operators operate. There's a lot to be said about how dealers are afraid. They're afraid to spend or try new things or go off into unchartered territory. Not to defend them, the truth is they're bombarded. And by everyone that has something to sell from $.02 pens to $20M facilities. And the shiny new thingamabob fits squarely somewhere in between.

So in your reflection, look as specifically as possible at what was done over your foray into the digital world, and what was not done. You see a lot of people are selling new mousetraps and reworking the old ones. Yes, for the most part they work better. You can only be a judge, just like with a book or white paper or study at a conference, after the fact. And quite a few have benefitted over the past years due to their desire and ability to win in the digital realm and congrats to those who have.

Just a heads up that you're trying to catch a cheetah, not a mouse. A cheetah can still run at over 60 miles per hour with a mousetrap clipped onto its paw. That is until it gets smashed to smithereens and the cheetah goes on as if nothing ever happened. There are so few mice in the digital realm today and most have mousetrap detectors.

There are some big things coming. Here is a heads up that the next big thing is not in hardware, software, advertising, marketing, mobile apps, CRM, retargeting or templates. You'll have to think about it. For those that do get it the remainder of 2012 and 2013, as well as going forward, will be easier.

If this was a hard one to understand, keep reading and coming back. And thank you.

If you got this, see you at the DrivingSales Executive Summit October 21-23 at Bellagio in Las Vegas…and please keep reading. We'd love to hear from you, you're our kind of business.

 

Best Practices: Professional Insight, Powerful Results

 

October 9, 2012 by Gary May 0