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Dealership Reset: It’s Halftime, You Got Game?

There's not too many times during the year that we call a time out. Well, there's usually one. Here's the dealership reset:

Accountability: How are you against your goals?

It's not just units, gross and ROs. It's about cost, effectiveness and no-bullshit reviews. Someone's feet not being held to the fire? Now's the time or else don't expect anything different come December.

Assessment: Who is helping you, who is not?

In meeting after meeting, the question should be the same for dealers to suppliers: "what have you done in the past 30 days to improve my business?". If they can't answer and back it up, you're wasting money.

Education: It's not just for sales meetings anymore

It's incredible when the entire sales staff can chirp back specs on the car they just received product training on that morning from a sales manager or the factory rep. It's another thing when a salesperson helps everyone learn something about their CRM they didn't know or shares a closing technique that got them to 25 units for 3 months running. When you stop learning, you start dying. When you refuse to learn, you need to pack your bags.

Impression: None, fleeting, building, lasting or wow?

Impressions have nothing to do with CPMs or 4-color versus black and white, although every newspaper sales rep that calls on your store will have a fit defending themselves. Impressions are all about what people think and feel about you and your business. And while it has a little something to do with the "silver bullet" that nearly everyone is talking about lately (yes, all of the experts are talking…all few of them), impressions are a lot more under your control once you realize that management actually influences nearly everything that happens at your dealership.

Half way through the year is more than enough time to evaluate a new program, see the leads you were supposed to get, increase your SEO results (if not dominate in many markets), build substantial results from email marketing, and a whole  laundry list of other improvements. If you are not getting the results, cut bait. If you are, see how you can get more.

Everyone needs to do the reset. In a meeting with a dealer last week, it was dismaying to see things that weren't acceptable even five years ago still prevalent today. Apologies for using some cliches but they're so appropriate:

  • You must inspect in order to expect
  • Together Everyone Achieves More (TEAM)
  • Leaders are readers
  • The hardest thing to change is the 6 inches between your ears
  • It's not how hard you work, it's what you do with your time
  • Dreams come a size too big, they allow us to grow
  • Track, target, trim and train
  • An idiot with a plan is better than a genius without one

The tragedy in life is not missing your goals, it's not starting with any. And that's even more the case when you don't check yourself before you wreck yourself. It's time to do your reset. You'll thank us later…

Best Practices: Professional Insight, Powerful Results

It’s Time To Do A Few Things Well

Most people that read this blog that are in automotive retail probably have one thing in common: they can do one thing really well. Sales, finance, management, etc you're likely not fresh in your position or field. You've been trained, taught, updated and (even if not very effective) sent to seminars, events and trade shows. People looking for more information, especially in this format, are those that want to learn…to be better, earn more or lead their field.

So, it's time for you and your colleagues. Time to do a few things. This is not a way to say that you're only doing one thing. Rather that the automotive retail, and even most of the headquarters, needs to venture outside of the comfort zone in regards to being more effective, using multifaceted strategies and new technology to deliver better results.

There is raging debate on what works and doesn't tied into whether or not fads and technology work: social media versus the tickler file, direct mail versus ads, text marketing versus a note, text codes/integrated mobile marketing versus billboards, Internet departments versus the floor, CRM versus the 3 by 5 and the salesperson's memory. Folks, what are afraid of? What investment is not worth it if customers will consume it? And why is the debate still going on at all? If it works for you, do it.

Oh, and then there's the budget and resource excuse. It used to be that the argument was simply "if I drop my newspaper and TV ads, traffic will stop". We all know today, without question, that's not the truth. Period. Now days it's "I can't staff competent people to handle live chat", or "how can I have someone post on social media ll day and still sell the cars they're supposed to?".

That's not the point. It's simple: do the same things, get the same results. Stop thinking of a technology, solution or new mouse trap as a stand alone aspect of your business! Everything creates either consideration or traffic that should convert. You might think about things this way:

1. Your website is the center of the universe. All traffic should ultimately go there. Leads convert there or because of the information gained there. While not the most dynamic part of your marketing, it is one of most easily tracked, can be modified nearly on the fly, enjoys the benefits of multiple sources and provides seamless integration. Oh, and you own it (or if you don't, you now know you should!)

2. Invasive marketing is meant to drive specific contact or leads but rarely meant to drive traffic to the website (which should change): direct mail, outbound calls, inserts and other forms of non-requested contact. Still works but typically not tailored correctly for higher conversion. If dealers started using their data correctly, ROI would increase (or start actually). Upside is that the receiver is not expected to do anything other than look or open their mail or drive by something while the downside is that tracking is poor and is not on the consumers terms.

3. Passive marketing is meant to involve your customers with your brand and includes events, ride-and-drives, social media, giveaways and more. Benefits are that it can be tracked more accurately than any other off-site media, costs are typically lower than (if not practically dirt cheap) traditional marketing, engages consumers at their want/need/desire level and offers great sharing and word-of-mouth.

Two and three are supposed to make one work better, consistently. It's incredible to think of someone that controls the marketing spend at a dealership or group using invasive marketing as the majority of their focus while the same person doesn't use the media they buy when they consume content! Put even more appropriately, why do you market or advertise expecting it to work when you've not successfully asked or tracked how your customers engaged, used and responded to your marketing? The first dealer that says they source successfully over 50% of the time, your staff is…well…not being honest.

It's our job to know what our customers want, not what we want them to want. If you're a top producer at your dealership, how can you deliver more? The answer isn't that you can't. Or that there's not enough time in the day. Or that you're waiting for the new model because nobody wants to buy what's being replaced. It's time to do a few more things well.

Are we recommending that you get into a fist fight with your GM about opening up the firewall that your IT director clamped down so tight you can't get an email out to your mother? No. What we are recommending is that you find the time and ways to make your time and results more effective and productive.

These things don't happen by themselves. We need to push ourselves into uncomfortable territory for a while and commit to seeing the results through.And don't lay down because your factory rep doesn't understand how your CRM works or what a tweet is or that you can actually talk with people on Facebook.

Do one new thing…then do two things…and they will come! Yes, silly, the customers.

Best Practices: Professional Insight, Powerful Results

When You Hit The Wall…Again. And Again.

From time to time, even with the best plans, strategy, resources and more, it becomes painfully clear that you're not going to make it. Unfortunately, some people experience this state of being for far too long. In automotive retail, there are even those that are paralyzed by it for, well, eons. In sports if you have two false starts you're gone. Why does 1,479 false starts constitute holding on to a process or salesperson at a dealership?

One of the many benefits of calling on dealers all over the country is the face time with some great people. Hearing many clearly defined business and action plans is inspiring and creates hope that things continue to look up. Having dealerships that used to track leads in archaic software, or even Excel, switching to advanced CRMs is inspiring. Chopping off the top salespeople or totally turning your sales department upside down and starting over? Now that can make even the greatest skeptic smile!

There is no question that times are changing for our retailers. About five years late. Some of the areas of greatest discussion recently (not counting social media) are how we keep the best and brightest, or attract them, and compensate them, how to incorporate tools that should help us but ultimately cost too much or don't do what they are supposed to, how to cut costs and how to stop giving up gross.

We don't claim to have the answers but have some thoughts to mitigate the typical course of (1) I can't change things so I won't even try, (2) I don't know where/how to start, (3) I tried before and failed, or (4) fill in the excuse you use: take risks in small doses in the right direction, ask for help because there is a lot of good, free advice (especially in the online automotive forums), start creating more buy-in with top management before you try to 'sell it' and simply convince yourself that the goals you envision are worth achieving!

Many times turning heads and making waves is actually less of a risk that doing the same things over and over and expecting a different result. We've all seen or known people who were burned out that we had pegged as being a superstar.

For most of us, the greatest help we can receive in avoiding 'hitting the wall' is common sense, some outside counsel and a firm dedication to what we know will work. Remember, we're here to (clap) pump…you up!

Best Practices: Professional Insight, Powerful Results

Is It The Chicken Or The Egg? Nope. It’s The Customer!

A long time ago we lost focus. Then got it back. A while ago we lost focus, and got it back. A short bit ago we lost focus. Somehow it came back together. Ah, the joys of the automotive industry. Factory, retail, supplier, service provider…all of us. It's about the customer, always has been, always will be. Why does the perpetual machine forget so easily?

In a world that where everyone expects to be right, as customers, it's amazing how far off base we are. This goes for how retail thinks about, talks about and, most of the time, treats customers. And unfortunately this is the way most dealers are treated as customers, too. Simply put we're in a world where commitment wins but when you look for support, it seems to have "left the building".

This is the case in today's world: consumer controlled content. Dealers wanting to move forward and their vendors standing in the way (many times backed by the factory/headquarters standing in their way). If you sell a car with rear seat entertainment and heated/cooled leather seats, you can't tell the customer "we're working on it, it'll be here soon" or "Oh, I'm sorry, that package can't get those options. Did I tell you it came with those?". So why is that what happens and, more often than not, is accepted by 20,000 dealerships from their vendors?

What may need to happen is a reevaluation of what is expected. What may need to happen is putting the customers (along with the chicken and egg) first. What may need to happen is more participation of online groups and communities rather than just a few speaking and providing a real value. Lately we're watched as the value has slipped, content to validate positions is more re-purposed than ever, pitches and and vendor tirades rule. Nobody can hear the egg break above the screaming.

Generally speaking, people don't want to be accountable. Are you a dealer or management? Beware of broken focus. Maintain your commitment to improve your business consistently online and offline. Remember that once a decision has been made, every decision is on purpose. We've (happily) watched dealers do this for the past two and a half years.

If you're selling, are you treating your business as an entrepreneur? Are you treating every customer as your next ticket or your last? Ask yourself: what's the most important part of my business? The walk, the drive/demo, the pencil, the close or the prospecting? If you didn't answer 'prospecting', and we're not counting walk ups, you've got to ask your self what you're doing.

Take time to take a step back and ask yourself why you're in business. If it's to excel, make it happen. If it's for a check, then you know what to do…hopefully.

Best Practices: Professional Insight, Powerful Results

Start With The End In Mind, But Mind What You Start

One of the beauties of working with those businesses that want to move forward is just that: the move forward. One of the drawbacks is the distractions that can stop clients in their tracks. Even the most excited dealer, on any given day, may end up with a list of fire drills that can stop a freight train. Downhill. When you start your move in the digital direction, it must be a complete commitment.

More and more principals and senior management at the dealer level are getting their hands, minds and ambitions set around their online presence, brand reach, consumer interaction and spending real time in understanding what is out there. By educating dealers rather than just taking over the whole ball of wax, change is visible. By involving them rather than avoiding them, cooperation is established. By partnering, accountability becomes easier.

Even with the greatest level of engagement, however, retail is still retail and some habits die hard. Dealers can't ignore their fixed operations for a day. Management can't (and won't) turn a blind eye to the sales floor for 24 hours. Not even the parts manager gets a day without a general manager visit. So how can you afford to go a week or two, if not longer, without chatting up what's happening online and not just leads.

Two areas that might need more work are setting expectations and goal setting. Too often relatively major aspects of online operation are glazed over that can easily be addressed by keeping both vendor and client accountable to updates, the calendar and results.

These days you hear about more dealer service providers being tasked by their dealerships, companies providing more amenable terms, dealers sharing more information with their 20 groups and huge attendance at events around Internet and social media efforts. Great! What is happening to hold the dealer responsible? The web and everything associated with it is so fluid today that it almost makes more sense to have a meeting about what's happening and how to adjust and direct once or twice a week compared to having another sales meeting. Folks, if you have the right staff, it's about bringing the people in…salespeople know what they're doing and not doing especially when they hear it from the desk consistently.

Set expectations, draw out what steps must be done to excel. We must start with the end in mind AND be completely committed to it. Advisers, consultants, webinars and conferences are what you start and maintain with. In other words those are tools, just like 3 by 5 cars, tickler files, walkarounds, and CRM software. They are the conduits to results you want: the sale. They don't sell cars but you can't exist without them.

If you have committed to put your emphasis online, no matter what phase of the process you're in, stick with it. This isn't toe-in-the-water. This is died-in-the-wool. You can't get anywhere without having both the keys and a destination. You can't take off without the right equipment and a flight plan (yeah you pilots of the auto industry, you know who you are). And you can't win online without being part of it, staying in it and knowing what you want out of it.

Best practices: Professional Insight, Powerful Results

Dealeritis or Vendoritis? Has The Game Changed At All?

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

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

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

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

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

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

Best Practices: Professional Insight, Powerful Results

What Did Thanksgiving Do For You?

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

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

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

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

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

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

Best Practices: Professional Insight, Powerful Results

On Your Mark, Get Set, Think, Plan, Then Go! And Then Review.

You hear it all the time: "this isn't rocket science", "a monkey can do this" and "you're kidding me, that's easier than chewing gum".  Yet process seems to be as rare as a walk-up customer these days when it comes to the Internet side of the business. Not necessarily the sales process, although there are still many that struggle with that, but the part that deals with planning, accountability, results and reviewing.

Based on the non-scientific data at the recent round of automotive industry events, many are surprised that the majority of leads from dealer (and OEM) websites still are not responded to well, timely, with engagement or even at all.  Most people from the consulting and coaching side of the business are not surprised.  While there is definitely more attention and dollars flowing toward the online part of retail, more opportunities are slipping away as software and solutions are expected to run the business.

CRMs, as great as some are today, websites, as well as they take visitors 'through the process',even social media, as poorly as most dealerships handle it, are not stand-alone solutions that take your store from zero to hero.  Your customers won't rank your vendors, they'll rank you.

Planning, visualization, tracking and accountability (yes, to someone else that can call 'bullshit') are all tools of the sales trade.  Not printing your queue every day or starting off with a priority list when you first sit down?  You will not experience success at the level you should.  Fact is your database, no matter how clean, can't sell cars.  It may be a goldmine, but it's covered up until you have a work plan that actually takes prospects and changes them into completely satisfied clients.

While it may seem that the top producrs always have things 'go their way', it's due to working smart, prioritization (that doesn't mean you chose which customers to respond to effectively), visualizing positive results ahead of time (not just saying 'yup, this one's mine and they're taking chromes! and window etching') and being consistent in what you do.

The 'best' location, dynamic website with strong SEO, a bulletproof CRM, well-written templates, intriguing videos and a mission statement that is generations-old with a mediocre staff to back it up will be out-gunned by a competitor with less-than-perfect technology but an eager, process-oriented, customer-connecting, motivated and excited group of individuals working as a team.

Not to take anything away from some great companies in our business, including many that IM@CS recommends, but we must remember that we're in the people business and the badge on the sheet metal is not more important than the person buying it, nor is the voucher more more important than the techniques to achieve it.  Think about that the next time you skip asking the next guest how you can improve their experience , what would excceed their expectations or simply how they see things happening to earn their recommendation.  Yes, asking and truly listening are on the path to perfection!

Ready, shoot, aim does work…as long as you understand how to improve every time and have had the chance to review where you are at and why.  Go get 'em tiger!

Best Practices: Professional Insight, Powerful Results

A Season Of Events: Will It Be Boom Or Bust?

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

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

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

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

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

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

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

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

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

Best practices: Professional Insight, Powerful Results

“That’s What She Said!”…and other lies since you’re just not listening

You were the class clown, your friends' center of attention, captain of the sport team, oldest in your family, standout of sorts in various jobs and now you lead the sales ranks…and you're flat out lucky! Considering the last time you listened actively was to get an extra scoop of ice cream in eighth grade, it is hard to understand what, outside of ambition, fortune and favor, has you topping the charts. As a passive listener, you can remember that your first customer ever made a nice comment about your tie…

OK, that was a little over the top, but hopefully the message hit home.  How do you know what he said, she said, they said, if you're not listening!?!? Consider the amount of leads that are not sufficiently handled, floor ups that aren't greeted correctly (let alone qualified), prospects that aren't followed up with in a timely, contextually relevant way (sending a pre-populated eNewsletter DOESN'T qualify) and you can start to understand how broken things are for consumers.

Most dealers pay for a CRM, typically in addition to their (substandard but used for 'oversight') factory lead management system, and don't even use it. Store by store, a visit can reveal that most of the notes in a customer's file (if there are any) are easily described as archaic. Ask a salesperson to explain the notes, you'll typically hear "I don't have time to put in more detail" and "I've spoken with them so I'll know what's going on when they come in to buy the dang car". You might even hear "it's my customer, not the store's" from a more honest staffer.

Task the same salesperson with fundamental questions about the customer, family, kids, how long they've researched/shopped for the car they're buying,what their third color choice or second option package preference is and you might get a more educated look from a deer looking at the front of your car in the middle of North Dakota on a desolate highway that you're driving 95 miles per hour on at 2:38 in the morning. You know that look…

"What she said" is so dang darn important that, gosh forbid the person actually felt you cared about them, they might recommend more customers for you in the next three months than you had from all your past customers in the last 12 months. People, it starts with really listening. No, REALLY listening. Look at it this way: you were so lucky to have it the way you do. Two ears, one mouth. Like mom said, use them in the same ratio.

Try listening for a week. You'll get some interesting changes in your business., Do it for a month, you'll actually create a trend. Make it happen for six months and you'll likely never be held back like you were in the past. Take notes. Document how your business has shown you new opportunities. That might happen when you listen to your customer talk about something that they're passionate about. You'll actually pick up on it, share it with your boss before they leave in their new car…next thing you know your dealership is involved with an amazing event in your market that helps sell another 25 cars. All because you listened.

Listen, confirm, validate, document, review, share, store, leverage…and then listen again. It's the greatest tool you'll ever have, besides that whosimawhatsie you have our your desk that you've not taken the time to use once since the seminar you received it at 11 years ago!

Best Practices: Professional Insight, Powerful Results