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Broken Is As Broken Does…We’re So Frickin Broken!

Broken is the new status quo. Status quo is a Latin phrase meaning the existing state of affairs, particularly with regards to social or political issues. In the sociological sense, it generally applies to maintain or change existing social structure and values. The way things are done at dealerships has gone near-completely political and, oh my, are we broken!

Thoughts are always swirling is our minds here at IM@CS, and the current state of affairs something that we poke at a lot. It came around again last evening, looking at a page that someone had liked on Facebook. Going to the info tab on the FB page, we noticed that the company was “founded in October”. Excellent! Like us in September of 2007, a startup! Click the link to the website and the domain is not even registered, it’s available for sale. facepalm. Don’t know whether to laugh or cry…

Whether it’s many marketing or website or “digital consulting” companies now evergreen inside the OEMs, the state of broken that exists is staggering. Stupid is as stupid does, we know that from Forest Gump’s momma, so broken must be as broken does. And the industry accepts broken.  Enterprise website providers that aren’t completely responsive (or adaptive for that matter) fit hand-in-glove with marketing companies managing PPC campaigns that don’t perform while taking a management 20% fee (or higher)… Bueller? Bueller? Bueller?

Dealership executives have choices when it comes to what takes their time. We call it priority management. Many people at fly-by-night SEO and social media companies call it time management (that tickles us so much, we pee). Yes, there are many “subjects du jour” right now including customer experience and whether to go BDC or Internet department especially on the heels of the recent conferences. But one thing is clear, even considering how many are yelling about “owning the basics” and “doing what we’ve always done”: we are broken while many scream we’re great.

And it”s easy to blame the consultants and trainers who, quite frankly, spout off about expertise they don’t have and subjects they can’t actually tackle live in a business, but let’s hit on the responsibility that business owners and executives have. Are you in business or are you hoping to catch up still? Can’t wrestle that extra “marketing expense” out each month when it doesn’t get covered by the factory via co-op, so you decide instead to make the payment on speed boat number two?

We’re broken because we have dealerships that don’t own and manage their local citations, don’t expect everyone to use CRM and trust vendor promises over actual results.

Don’t be the company listing a website that’s not in existence. Don’t be the blind following the blind because it’s the path of least resistance. Don’t be broken and happy because you’re better off than 7 other broken dealerships in your market area report. It’s not easy and it takes more resources that you’ll likely be comfortable with. Don’t settle. No business that has ever been successful did.

 

Best Practices: Professional Insight, Powerful Results

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

 

The Difference Is One Letter…And What It Gets You Is Much More

Many times people ask me why IM@CS is not a training company, even though plenty of people call what we do by the "T" word. The response every single person receives, for the last five years – and emphatically – is that people despise being trained. People, more successful ones for sure, love learning. In short, we've never had a staff member at a client that ever deserved such a low pat of the attention span.

Education, however, is what people and businesses that want to succeed tune into. There are plenty of trainers to choke 17,000 new car franchises to death, and then some. There are so very few educators, especially in the digital space. That aren't beholden to vendors they recommend (read: if you take a fee from a client and a commission from a vendor, that's called a conflict of interest). That don't work at a store 40 hours a week (read: that's an employee, not a consultant). That learn from outside the industry (read: recirculating existing data, quotes, white papers and results from others is simply an affront).

Education, for the few that want it, is the only thing that moves our industry forward. "Getting back to the basics" and "blocking and tackling", while called for and part of daily operation especially when things drop through the cracks, is needed. However, you can't increase results from eCommerce, increase your SEO footprint, establish social media signals, improve your email lead response rate or conquest a new market or brand by "doing what has always worked".

This week brought a great opportunity to share what might be considered as more "digitally savvy" dealerships and vendors in a conversation with an industry colleague. He happens to be someone that I respect, having OEM, portal and agency experience including outside automotive. He asked, among other items, what we're most proud of that we were able to do with a now, more-successful client. My response was that he should ask them, not me…

You see, training is something you do everywhere for everybody that "needs it". Education is something that you provide with varying degrees of success, seeing the results later through your clients and only for those that absolutely want or will kill for it.

One thing I've always been passionate about in providing services to different business over the past twenty plus years is watching their growth. By providing turnkey services or an enterprise-wide platform, as needed as those services are, the baseline is so muted. That doesn't get me or the team of people I get to work with up in the morning. What does is making a difference through education and then supporting the education. Anyone call sell or buy a widget. And many will tell you their widget is better or drives better results. Bulls**t. The people using the widget to their best capability win. Remember who people buy cars from? The least educated one, right?

So what's the difference between training and education? Education is one letter longer. And likely the only thing keeping your dealership back from excellence…

 

Best Practices: Professional Insight, Powerful Results

 

Things That Pissed Us Off In 2010 (Yes, They Pissed You Off, Too!)

We know it, you know it, they know it. Almost everyone knows it. Because if everyone knew it we wouldn't have ben put through it. But we were, you were and they were. Disclaimers: These are not in order of importance. Many companies are being called out, not all. This is a singular perspective.

So here it goes:

1. Automotive marketing overall: Sucked, still sucks, will likely continue to suck.
2. Dealership websites: 1995 called and wants its sites back. Give us a break and some new suppliers!
3. OEMs that don't publish new inventory: Get over it. customers leaving your brand are.
4. Automotive trainers that re-branded as web consultants: A new suit can't cover 1982 style.
5. Reputation management companies: Fudge is brown. So is bull%^&*. Fake customers? Envelope stuffers? Hooters girls? Please leave…
6. Motivational speakers that re-branded as automotive trainers: See line 4.
7. Social media companies: Charging dealers $3,000-5,000 plus per month? Larceny is still a crime.
8. DMS companies: Still make clients sign in blood for 15 year old technology, for 15 years? Nice. FAIL.
9. Website company dashboards: No, use this thing called Google Analytics. Quit fudging numbers. Block dealers' and your IPs for starters!
10. Inventory marketing portals: The luster is long gone. Run or acquire some companies for revenue!
11. Sales reps: Stop selling and start helping. Don't know much so you can't help? Sell elsewhere.
12. Ad agencies (Tier 1): Quit the facade. Traditional doesn't sell. Experiential does. Learn to like social. Get help.
13. Ad agencies (Tier 3): Quit lying to yourselves and your clients…You don't get digital. Get help.
14. CRM companies: If you don't do that, say you don't do that. Otherwise add it for free. Pariahs.
15. Website companies using Flash: 2003 called and wants their websites back. It's called HTML or PHP.
16. Facebook Personal Profiles: Businesses, we've been yelling. Set up pages. Not "friend" profiles!!
17, Social media companies: Setting up APIs and RSS feeds from OEMs is not social. It's plagiarizing.
18. Social media companies: Setting up inventory feeds as posts? If that's social, I'm tall, rich and hot.
19. Traditional media/ad networks still selling to dealers "old school". Shame on you (and your bosses).

Dealers, you're not in the clear either:

1. Hiring any service, including social, as a "pay for it and leave it" service? No such thing. Period!
2. Hiring any company because you "liked the rep when they were at ________ before". Failure…
3. Not taking the time to get educated on new aspects of your business? Hand the keys back to the OEM
4. "Trying" new things?! Sample spoons are for ice cream. Business is for big boys and girls. Just Do It!
5. Cutting your nose to spite your face? Chances are you're too lean. Hire the right people, not resumes.
6. Leaving everything up to the factory (especially some luxury brands). Wake up! It's your business!
7. Believing the you can turn your store's reputation over to an outside company?!?! I've got a bridge…
8. Not flinching on a new $4,000+ service to a company you're already cutting a $15k check to? Dumb.
9. Spending $3,000 on a 3-day conference 3+ times when you can get a month for that?! And get more!!!
10. Spending any money on your business and not taking ownership of the new spend. Why, why, why?
11. Paying any amount of ad money to traditional media and it's not integrated and tracked?! Foolish.

New-age definitions when you don't understand the spend:

CPM: Can't Provide Much
CRM: Can't Remember Much
ILM: Incredibly Lousy Marketing
CSI: Coached Senseless Investment
SSI: Serving Senseless Initiatives
I/O: Incredibly overpriced
OEM: Overlord, Empire, Master
PDI: Petty detailed injustices
Social: Someone outside control incompetently and loosely
IMS: Inventory Means Something
DMS: Decades-old Money-draining (or Mediocre-Moduled) Systems

We could go down the path a long way but here's the simple version of the message: quit doing things old ways, with old thought processes, with old beliefs, with old defenses, with old intentions, with old management. If you want to run a dealership the old way, get stuck in 1964, 1974, 1984, 1994 or 2004. If you want to thrive in this and the coming markets, wake up to the reality that business will not be the same. Even if we sell 17 million new cars again, it'll never be the same.

Some may be able to, by all appearances, just skim along on the surface, mesmerized by everything going on around them and still put up the numbers. For most of the businessmen and businesswomen in the retail part of our industry, it's a deep dive kind of time. Your success depends on you and how you build your business's presence, results, growth and more. Less than 5% of your colleagues are engaged, firing on all cylinders and moving forward in today's market.

There are a lot of things that pissed us off in 2010. And we may never do a post like this again. But somebody needed to do it. This might motivate some, light a fire in others and have some in stitches. No matter what, it's time for moving some more metal. There's not too many ways to do that today.

Are you pissed off enough to do something? We've been helping those that want to do something for the past three years and three months. Are you next?

Best Practices: Professional Insight, Powerful Results