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Shortcuts, Rock Stars, Working Harder And The Point

Everyone, even the most committed and successful visionary, may take a shortcut from time to time. It's in our DNA. It's hard to resist. It's a recipe for disaster. It's one of the status quos of automotive retail and it'll undoubtedly be the death of more dealers.

So why is it that we live in a world where increasing the cost of goods sold for the sake of selling is acceptable? Markets overwhelmingly determine prices and sales, and those that proactively and interactively work to grow the market will win. And retention is nearly completely determined by the retailer. If you listen to most vendor pitches, increasing your operational cost is the only way to increase your business. Look at the trends at too many dealers over the past year, as sales have increased and you'll see old patterns and habits back once again.

– Look at the opportunities that are being missed. If you are a GM or GSM and are not reviewing your store's Internet-based performances at least weekly, you are losing sales, reviews, service opportunities and more. Don't simply add leads when salespeople ask for more leads. Review and access. Don't mask performance issues with more leads, new add-ons from vendors or another salesperson until you find and fix the true issues.

Dealers increasingly seem to be struggling with their rock stars once again. The difference between the salespeople that are truly working processes, generating results and those that talk a great story and have glowing resumes they'll share with everyone at the drop of a hat appears to be growing. Well-qualified people are harder to get at the same time that the gravy train seems to be stuck at the station. Rock stars are made by quality of work, sales, fans, referrals and buzz. If you are in car dealership management and your staff doesn't have all of those, you're website staff page might as well have pictures of Busey, Sheen and Murphy, Sure, your sales staff used to sell cars but are simply taking up otherwise valuable space at your expensive facility.

– If a salesperson can't close a manager, they can't close. They sold 28 a month at the (fill in the blank) store before taking your prized opening? What happened? You might be able to teach them. But how are they going to talk with and close an executive from a local company when they can't leave a proper message? While the industry talks about the "quality" of leads, we actually need to talk about the quality of people representing dealerships. Personality tests, walk-around evaluations, daily product training and more are great, but if your rock star is simply an over-egoed, tanned snake it the grass with a tattoo, that's what you and your customers are getting.

For a true professional, working harder is just as important and effective as time management. (newsflash: there is no such thing as time management, just priority or schedule management). If you are in sales and you tell management that you'll work harder, take the rest of the day off. Unpaid. Working harder is to results as Pillsbury is to making a gourmet cake. Find ways to leverage your time, use existing resources, have a cache of information ready and, most importantly, listen to your customers so you can save time rather than work harder. If you're in the work harder camp, you'll be passed by those that are in the work effectively camp and enjoy life much, much less.

– While there are a lot of things that can keep you from what you need to do on a daily basis, what needs to be done is incredibly simple. It's just not easy. Set daily, weekly and monthly goals (if you have the guts, set quarterly ones, too). Document everything. Use your electronic tools but write things down. It's amazing how many salespeople refuse to print out their queue and document notes by each contacts' name throughout the day, saying mid-day "I've hit my list" and "why do I need to print a list, it's on my screen!". Did you call each prospect three times? Are you customizing each email so it's relevant to them? Are you creating excitement, a call to action and exclusivity? And are you documenting everything?

Given the choice to build your business, what activity must you do?

1. follow up with all sold customers, asking them for referrals;
2. provide the best delivery process
3. set appointments
4. be the fastest responder of all your competitors
5. have the best brand experience of any salesperson at your store

If you've spent any time in sales, the only activity that generates business is number 3. You can everything else well, but if you're taking shortcuts, doing everything you can to work harder and bending it like a bonehead, you can't build a great business.

Remember that the best tools allow those that use them correctly with solid processes to do the best. A mediocre salesperson using great software may be able to sell some more products. A mediocre product with a great sales team, processes and software to back it up will win nearly every time.

As the automotive world we live in continues to change through new ideas, consolidation, acquisitions, production issues, lousy marketing and the like, you can only control what you do. So do what you do better. Shortcuts don't work, and definitely in the long run. Most rockstars fade or burn out. Leave working harder to the ones that don't know any better. What we're about is providing a better experience and delivering more cars. Not a flashy image. Nothing old school. Nothing that blocks or tackles.

What's the point? It's the one that things turn at. It's the one you wake up at. It's the one that you're beyond. Get the point?

 

Best Practices: Professional Insight, Powerful Results.

May 22, 2011 by Gary May 0
When The Cover Comes Off The Onion

Let's face it, we still live in a marketing-based world. And nearly all of it still screaming for attention, sales, mass following, validation, acceptance and more while typically ignoring what matters most. Yes, it's morphed and transitioned and (partially) gone to the place called online but it is created and delivered in the same way it nearly always has. And for automotive, in both B-to-B and B-to-C arenas, the deliverables suck (we'll try to not use any more technical terms in this post).

It's not that the market, the public, the customers, the industry or even the actual providers don't expect any different, it's just that it's what's done. Is it that when you stop screaming "we're #1" it allows another company to scream the same thing, making it true? In the experience garnered by partnering with dealers all over North America, the most dissatisfaction expressed comes from dealing with companies screaming about top results while not backing it up.

Have we become so skewed that we'll actually do what we don't want to take part in ourselves? Or have we become so numb to the barrage of messaging that we don't notice? So let's take a layer off!

1. Old school. We practice what we preach, right? There is a lot of talk, once again, about "back to basics" and "blocking and tackling". Are you practicing what you preach, or is it time to get real? For starters, look at how salespeople are being "taught" typically, if at all. Motivational speakers? In-your-face, Glengarry Glen Ross "coffee is for closers" stuff (even though it may be true)? "Seasoned veterans that can do everything" sessions in your store? So…do you actually do that to customers? Do you talk to them that way? If not, why do you need it?

Salespeople are motivated by, wait for it, MONEY! If a salesperson is not on the ball, they may need a pep talk from an outsider for $5,000-$30,000. Right? More likely they need a couple days off, fresh air, a good book, some exercise and to get away from the naysayers at the dealership (which can also include management!). The first layer of the onion feel like the first burn of summer vacation…

2. Hyped 20 Group sales. For good and for bad, dealers talk to dealers that talk with other dealers. They recommend things. They invite speakers and presenters (don't forget the pitch masters) to their groups, associations and getaways. And then it happens: after providing a dealer/group with some great info, recommending appropriate partners, showing them how to best get the true answers as they consider the next move…you walk into the store that has been desperately needing a real kick in the behind treatment to get going, and alas…they had a round of golf with their buddy 86 states away and bought the same (fill-in-the-blank solution/vendor) because "they're selling cars like water".

No real research, no real competitive bids, no idea what they're doing. And, being as how it's automotive retail, after the install and training, the 30 days of excitement wears off and it's just another check. Until the next company comes in and…"nope, we don't need any new fill-in-the-blanks…we're all over it!". Yeah Bill (if you're a Microsoft fan or Steve if you like Apple more), you're all over it. That layer of the onion just put a divot in your business way bigger than the one you did on the 14th hole with your buddy.

3. Media. While that should be enough said, it still needs clarification. You are what you eat right? So, it is worth venturing a guess that you are what you read as well. Did you ever like a newscaster so much that the news was somewhat not as believable when someone else was on camera? That sure explains a lot in the automotive industry. A change of scenery is becoming more and more what the doctor ordered. Social media has surely facilitated the fact that a handful of sources is not as good as many good sources. Considering, at the same time, that there is definitely garbage out there called news, the world would just not be the same place anymore without the streams of great, timely and absolutely valuable information.

Or do you still get it from the same 10 people over and over and over? Better yet, do you get it from a place that sells what you end up seeing? Trust is absolutely required and good data is needed. So is a great line of questioning that deserves an honest, unbiased answer. Have you got your answer yet? The pain from that layer of the onion comes with a tear, a grimace and a cost.

 

Change is necessary, more than ever. And more than ever, things are remaining the same: The OEMs' ads. The Tier II ads. The vendors' pitches. The automotive media. The balloons. The gorillas on roofs. The radio spots. The newspaper. What are you trying to tell a public that is wide awake and ignoring it all?

Look outside, there's a new day. It's called opportunity. And it's not wearing yesterday's clothes. It's not driving a….oh boy. Better not go there. That onion might end up being really sour….

 

Best Practices: Professional Insight, Powerful Results

March 28, 2011 by Gary May 0
I Before We, With No Exception To D(ealers)

It's the end of the year and the heart of the holiday season, right in between being thankful for everything we have and swearing off more than half of it (mostly weight) for the coming year. It's the time of the year when a few minutes on the automotive networks and news sites gets the mind going. It's also right after last week's (first ever) rant….

So in spelling, it's i before e except after c. Makes sense. Well, it makes no more sense than if it had never been that way and we simply didn't make the rule. No different than putting I before we, especially for the D's. The I's are the loud talkers, advertisers and general blow hards. We…in case people forgot, are the industry. And alas, the D's. The D's are the dealers. Those are the ones that move the industry.

In the event that those that believe the real deals are: the ones doing all of the talking, the media, the OEMs and the old boys club…you're dead wrong. Not that more than an acceptable level of that goes on, it clearly does. But the writing on the wall is getting more clear by the day: the dealers, customers and (ahem) the banks/captives move our beloved industry. Just because an outside person can come in and put a deal together doesn't mean that anything….anything improved the dealership.

More and more dealers are waking up to the simple fact that they've been taken for a long drive on a short road for quite a while. And since the days of milk and honey have been over for a bit, it's more painful than most would care to admit.

So check out the majority of content on our favorite places to read. More #1 this and that's. More white papers. More new, unbelievable this and that's. More covers and articles blaring horns and sirens. OK, the numbers are up in 2010, thank goodness. Even if we're at 12M new units, that's not 17M. Not playing the downer here, lots of stuff is good, but realize that yelling about being the best at something does nothing for business at retail.

Heck, there should be more practicing of the preaching. Any company claiming they're the best, don't just back it up with 1-5% of the client base with quotes. Get the bottom percentage to do the same thing. Ask them to write testimonials without any favors, kickback or kudos of any type. And if you have three times the customers of your next competitor, you should have at least three times the reviews.

We need to move the industry at retail. We can't change the banks, so let's put our efforts where they matter most. Yelling about moving a dealer's Internet sales from 25 to 50 per month, when you didn't? Screaming that you can do the best job in the industry at whatever and your clients aren't the best in the industry? Promoting as best-in-class when the company's experts can't get on the phone for days to review the company's performance in what should be their core competency? Shame on us. How many things have become more important than the customer and how many things are in the way of simply delivering?

Let's make dealers better tomorrow. If a dealer is paying for a service, every 30 days should be better in some measurable form. It's not always units or profit. Sometimes, it's efficiency (which drives profit anyway) or education or communication or retention. Something that makes more sense than simply spending more. Let's put the dealers first. Before the next award bought. Before the next accolade spun.

I before we, with no exception to D is the wrong approach. Pass on the awards, the half-baked "third party" certifications, the advertisements (please!), the 'unbiased' networks, the bling and the paid glorification. Let's get more DEALERS on the cover of Newsweek, not CONSULTANTS on the cover of….

Whooops, that one almost got out….

Best Practices: Professional Insight, Powerful Resultsego,

December 19, 2010 by Gary May 0
What Have You Done For You Lately? (Ooh ooh ooh yeah…)

You're back but your bags (and head) may still be packed from your Las Vegas departure. The whirlwind of powerpoints, data, applications, widgets, speakers, vendors and pitches that opened October 12 with Digital Dealer and ran through DrivingSales Executive Summit at Encore, came to a close mid-day last Friday with the departure of over 1,000 from JD Power's Annual OEM and Ad Agency shindig called Internet Roundtable at Red Rock Resort (where more upfront talks than Internet dealings happen, but let's digress).

So your notebook, FlipCam, voice recorder and brain are packed with thoughts, visions, ideas and goals around everything you heard. But the "back to normal" is so gratifying that you may have not done a cotton-picking-thing since switching off the neon and turning on the flourecents. And besides, it was kind of touching to see that 88-day old unit turn 100 now that you're back (ooops!).

So if you're stuck with not knowing where to start, you didn't leave with goals. If you've got three or four places you want to start at, you may not know what your greatest weaknesses or opportunities are. And if you didn't gather enough information on how to get started and the first steps to take from that high-ranking speaker, call them for a freebie. And you may just want to "x" off that session or conference next year because the value didn't get delivered.

So, what have you done for you lately? (Sorry Janet, it's not about you). It's time to crank that Internet machine thing to the next level, right?! Do yourself a favor and start looking everywhere else but automotive and get your bearings. Why? Because there are Facebook pages selling more Snuggies than your website sells in service. There are blogs feeding more contacts to start-up S-E-O, K-E-Y, M-O-U-S-E companies than you get leads from $199-a-month leases. And we have ourselves (and many vendors) to blame.

Start Thursday with a goal to add one task from your volume of Notes 'de Las Vegas and start it. Not Friday, not next week. October 28. Haven't secured your Google Places/Maps location? Do that or learn about it. Haven't secured your Foursquare venue? Have 60 domains you registered a bunch of years ago and one is perfect for a blog? Start it and who cares what it says as long as it says something about what your store is passionate about regarding your customers and the products you sell. But what have you done for you lately?

"Good thing I cook or else we'd starve to death…" How appropriate is that today? Automotive retailers must thank their customers for coming in year after year and driving off in new and pre-owned cars with little more than a smile. It was about the badge, the new product, the incentives and the advertisements. Now it's about you. Matter of fact it always was but the industry lucked out for more than a decade. So what have you done for you lately?

Yes there's half-cooked information all over. Yes, there's "experts" who haven fallen into something that, for obvious reasons, they can't quite explain in an hour on stage. Yes, there's going to be more consolidation in the indsutry which means your ____________ company may become part of another company you're not doing (or don't want to do) business with. But what have you done for you lately?

There are many really good, and some extremely good, tools and providers out there to settle for what someone in your Twenty Group has or what your read in an ad or study. Last week it was amazing to watch the Innovation Cup at the DrivingSales Executive Summit. The "let's never settle for me-too" juices were really flowing there. Put easily, if something can't be verified by a neurtal third party, don't necessarily run away, rather gain more information before making a decision. Chances are you're right that it wasn't a good choice in the first place.

Today you have to be prepared to do something for yourself and stick with it. Even though it's so easy to quit and go back to what you knew. It's also more costly than ever. If you invested the time and money to be around that much addictive behavior for a week or two in Las Vegas, everything you brought back deserves to come to life in your store. That is if you can find your notes among the free schwag of flying monkeys, free model cars, light-up bounding balls, mints, pens, flash drives, logo hats, t-shirts, notepads, shopping bags and fliers for products that are pay-for-it-now-cuase-it's-almost-to-market-so-you-can-be-first (wink, wink).

So what have you done for you lately? Come on, we've got to …….uh, wait….come on…..wait for it…..wait for it……you know you want it…..SELL MORE CARS!

Best Practices: Professional Insight, Powerful Results

October 28, 2010 by Gary May 0
Digital Dealer 9…In A Nutshell

So we're in what many call the automotive industry's event olympics, digital dunking chair, online opinion onslaught, guruexpertvendorspeakerconsultantpitchyouintosubmissionsession and more (is that a word or an insult?!?!). Anyway, last week's Digital Dealer was one heck of a kickoff with around 750 dealers in attendance.

Over the three days, we heard both the good and bad, awesome and ugly and got to share time with the companies in what was easily the largest expo at any of the series of Digital Dealer events. With an opening panel that seemed to be more about defending third party lead providers and attacking other ways to drive traffic, it may have put an interesting asterisk on the event: One of the calls-to-action that is consistent of Digital Dealer conferences (as well as growing) is the ability for dealers to create more eyeballs, consideration, conversion and sales themselves without paying large sums to the marketing companies.

The rest of day one seemed to bring an overwhelming good vibe with some frustration but nothing more than past Digital Dealers. The evening was filled with various receptions, dinners, parties and (required?) gambling. Walking around The Mirage, you could see a kalaiedascope of dealers, OEMs, vendors, consultants and service providers roaming, playing and chatting. Ralph Paglia's ADM reception was well attended again (Ralph, two words for you and ADP: larger suite. Two more: air conditioning). The first day can be marked as a success.

Day two flew out of the gates and we had hop between meetings and sessions. Overall strong buzz, especially around lunch. However there seemed to be more dissention in the ranks when it came to enjoying the speakers. Obvious or not, blatent or passive, it's hard to control speakers. One session we heard about from a lot of people seemed to end up being an over-the-top pitch along with aggressive words toward competition. There's no place for that. The popular speakers seemed to reign more supreme at DD9 which represented a good amount of feedback. One that stood out for us was Kevin Frye's. He had a classy presentation and style that seems to be more prevelant in dealer sessions. Add the trust from the crowd and it's a recipe for success.

IM@CS hosted our second #imacswebpoker tournament and ended up hosting 22 players. We'd like to thank AutoData, AutoFusion, Cargigi, GetAutoAppraise and PCG Digital Marketing for their involvement. AutoFusion presented with Reno Toyota with a complete complimentary package of website, mobile site and Facebook inventory app. Thanks to the other dealers in attendance and congratulations to Dennis Colome of AutoByTel for taking the top prize and trophy. The evening was long but distinguished.

Day three is always a short one and we attended a session and a half. Didn't get a chance to talk with a lot of dealers as they went to the peer session as we headed to the airport. The morning started off with what appeared to be a full breakfast and expo which is a great sign, considering some left Wednesday night. Jumping between sessions from Brian Pasch and Ralph Paglia, both were packed in an apparent tip-of-the-hat to their reputations for delivering the right data and engagement. Dealers tackled their last-minute vendor meetings and some started making plans for next April's Digital Dealer 10 in Orlando.

Overall, Digital Dealer 9 was a success for the majority of dealers and others in attendance. In our opinion, Mike Roscoe and his staff still have items to address to make it an ongoing success, some they commit they're already working toward but still have to focus harder on.

Next week there's DrivingSales Executive Summit and JD Power Internet Roundtable so we'll report from Las Vegas again…

October 16, 2010 by Gary May 0
The More Things Stay The Same, The More They Stay The Same

We're considering making a big alarm clock. No, a BIG %^&*#$@ alarm clock. That way instead of waking up 10-100 dealers at a time, we can wake up 10,000. And folks, we all should know how big that clock has to be. 14 years of the automotive Internet, over 6 years for most OEM website programs and CRMs, over 3 years of SEO chatter, social media, landing pages, microsites, email marketing and nearly 2 years of mobile, geo-location, widgets and integration. What do we have to show for it? The alarm clock is not big enough.

Two percent leadership and a bunch of blank stares. The season of automotive industry digital marketing events is upon us. It's time to move the needle. Even before massive fees, niclkle-and-diming- new widget this and new fandagled that. And it's not "back to basics" or "blocking and tackling". If you want to stick to blocking, the customers are going to be walking. The alarm clock is not big enough.

Many folks talk about how the people that have been moving the industry's training and messaging programs are right there in the comfort zone, what they like, the heart of the 20 Group, the flame to the cigar so-to-speak. Many dealers around the country are still FourSquaring and we're not talking about the social media game. Many dealers don't have photos up on inventory for a week or two (or longer) after receiving the units. Many dealers don't know the first thing about where, what, how and why there are reviews on the web (or, in some cases, all over it) about the poor experiences at their dealership. The alarm clock is not big enough.

We're talking about dealers having to buy leads since their own inventory doesn't display correctly, generating their own leads. We're talking about the leads that are received not being handled right nearly 70% of the time. We're talking about dealers struggling with finding the right people to handle the leads right, yet hiring the wrong people in the first place. The alarm clock is not big enough.

Consider the volume of content that is available to every dealership with an Internet connection*. Consider the wealth of knowledge that exists at the other end of the phone at nearly any time. Consider the amount of information available in one day with the right person. Consider how much consumers, us, are changing the rules. The alarm clock is not big enough.

*Blocking computers from accessing most of the web? Does the industry emply adults? The alarm clock is not anywhere close to big enough for people with that much control. My fricking gosh, lighten up.

Think about how much less the franchise matters today and how much more the dealer brand matters. Think about how your HTML website* won't load on a cell phone nicely but your United, Delta and American boarding passes do. Think about how much more you want your customers to spend at your store but they don't even open your emails (because hopefully you're actually looking at that). The alarm clock is not big enough.

*And the fact that your website company is using Flash-laden pages, can't deploy a PHP-coded application and won't be able to resize and deploy a widget or give real analytics? No alarm clock can wake that up.

Really, the more things stay the same, the more they stay the same. It's not that we believe there are people intentionally not doing what they should to move the industry forward or that they can't do it. No. It's that whatever has been done has honestly moved the ball forward about a yard but it's 4th down and 28 yards to go. This round of events in Las Vegas needs to get as much fire about them as profits because of them.

Not the same data. Not the same repackaged presentation. Not even the same presenter. Not the same expectation. Not the same end game. Not the same focus. Not the same anything. We all know dealers that are afraid today. Isn't fear supposed to promote change?

Here's a challenge: Every speaker. Every presenter. Every vendor. Follow up your sessions with a call or onlne meeting within two weeks of the event for everyone that wants it. And promote it. For Free. Answer every question. Refer other companies if you don't offer something that's being asked for. Give something away at your session. Really give it away. No strings attached.

Maybe it's a start. Maybe it's about time. Maybe it's about the dealer. Maybe it's about selling and servicing cars. What do you think?

Best Practices: Professional Insight, Powerful Results

October 6, 2010 by Gary May 0
Crunch Time: Are Your Vendors out To Lunch? Or Are You?

It's very telling, especially today, when a supplier doesn't deliver.
Over-commit, under-deliver. While there is no such thing as 100%
delivery, 100% of the time when there are variables like creative,
interpretation, third parties and even technology changing at a
breakneck, daily pace. However the fundamentals should never change:
communication, expectation, examination and verification.

Being
around the automotive online space for over 10 years, it has been
common to be around or even directly involved with what you might call
"sales coups without production capabilities" or "sell it and then we'll
build it". Most of the time letting clients know you're building
something as they buy it is completely fine. Selling something as
complete or pitching services you provide when you really don't is
something else.

Over the past few years, it's been website and SEO services. Lately it's social media and reputation management. Two sayings to remember: if it sounds too good to be true, it likely is; stupid is as stupid does. In all fairness, the impetus is always on the buyer. While that's not completely fair, everything deserves a second look or opinion. For one example, recently we've been in meetings hearing about services for a few hundred dollars a month promising positive reviews on hundreds of sites.

Even without prejudice, it is difficult to understand the reach, impact or importance of a positive dealership review on some obscure website. About florists. Being read eight states away from you. By someone who has no interest in buying a car.

Numbers are great. Especially transparent ones via Google Analytics or something similar. It's also great to have a string following in the social online around your business. Having 40,000 on Twitter and 10,000 fans on Facebook, most of whom never have or never will buy from you, refer people to you or possibly even realize what your business does. That's irrelevant. People moving into your PMA that own a car from your franchise? Great. Likely a potential customer. Someone on your social network that lives 8,459 miles away from you because you're giving away something for free? Worthless.

What's of less value than that? The people and companies that are selling the services because you don't have the time to know and understand better, let alone put resources against it. And the fact that you can do it for $300 less a month than another company that can do it for you? And you call yourself a business person? Please. The other day at an OEM meeting, we heard about dealers paying $2,000 dollars a month for social media services. There are real companies doing a better job for half the price. Dealers paying $8,000 a month for that?!?!?! Let's not even go there.

This is not about the struggles with real ROI in the digital space. Or people not understanding services. It's not even about pushing companies out of the industry that will intentionally pull the wool over dealers' eyes (that would take years anyway). It is about taking charge of what you want to do in your business, having goals, comparing apples to apples and making sense out of the insane amount of pitches car dealers face.

Many times it's your vendors that are out to lunch. Sometimes, it's absolutely you. Question reps and consultants. Question proposals and marketing materials. Question your staff on what to do. Heaven forbid, question your customers and find out what they want and expect first. And stop buying for the sake of it, because someone in your 20 group did or because a golf buddy (that operates their store completely different than you do) told you they found the magic bullet.

Get back to business. It's crunch time…

Best Practices: Professional Insight, Powerful Results

September 4, 2010 by Gary May 0
Floor Traffic Down? Invite Them In! (Including 5 Ideas That Work If You Do)

Reading a number of great posts recently (while trying to ignore the blatant self-promotion via a popularity contest glorified by a number of industry members last week), all focused on getting dealers to make the shift to digital or social media, it hit me once again what we're all trying to do: get people in the door.

While a number of dealers (maybe 5% in the country) are seeing growth many are seeing flat or declining numbers. Others are experiencing unit lifts while dealing with large drop in gross or back end. And everyone is dealing with selling fewer vehicles in the past 18 months than in the previous 4-6 years.

So in this online world, what aside from actually selling a vehicle to a customer or servicing their car drives traffic? One thing that can be looked at, especially in a world of smaller budgets, staffs and sales is events. With rare exception over the past two years, the factories (and therefore the dealers) have spent less and less on driving valuable traffic via new-owner events, clinics, ride-and-drives, sponsorships, meet-and-greets and the like. While the quantity of tire kickers may be down, real purchase intention is down significantly less (we'll leave the statistics and "pent up demand" gibberish talk to others).

Fewer and fewer dealers are doing what it takes to being people in: WIIFM. Yes, the most popular radio station in the world. What's In It For Me! More and more consumers are out there, looking for answers on how to program their seat memory, sync their bluetooth, update their navigation system, find out the difference in maintaining their car at the dealership versus aftermarket besides price and a whole lot more. So…they're left with going to a discussion group/blog/forum/portal, relying on word of mouth or not knowing at all. And you believe you 'had them at hello' when you sold the car.

So no new owner clinics. No barbecues. No comparison drives. No meet the staff days. No fundraisers (let alone getting a link from the event website to your website with all of the traffic they're receiving. What's that? What's a link? What does that do?). Boy, that will work! Then tell yourself that the drop in floor traffic is fine since 70-90% of the same-brand stores in your PMA are also down rather than kicking ass. Forget about building a brand, or answering the questions that many customers won't ask you over the phone, or stopping that brand new owner from driving into (fill-in-the-blank)-Lube, let alone even retaining the customers you have and that WANT to come back for a good reason or two.

No. Maybe this whole thing is wrong. The factory is supposed to do and promote events. The factory is supposed to drive floor traffic. The factory is supposed to give you all of the handraisers in the area. The factory has to do all of the advertising so you can copy the ad and put it on your (mediocre) website. The factory is supposed to give you all of the pitter-patter of footsteps so you can just kick back, put your feet up (or in the golf cart), make money and retire in 20 years.

DING, DING, DING. Wake Up!!! (that was your floor traffic meter just hitting zero)

Best Practices: Professional Insight, Powerful Results

August 2, 2010 by Gary May 1
Vendoritis Or Dealeritis: Part Deux

After the recent seminars and events in the Los Angeles area it seems more clear than ever: dealers want to do more, are mostly eager to address new opportunities (or old ones sold as new), are baffled by new technology including social media, are looking at the factories for direction and don't seem to have the right questions to ask the not-so-prepared, over-eager vendors.

In a number of panels that spanned these events, the tough questions either weren't asked or answered. This is not a knock on either the speakers or the crowds, most very qualified to talk about new media and marketing. It's just a fact. One panel on social media had some great experts. On data. Not one person doing it for an OEM or a dealer (or, judged from afar, likely even doing it themselves daily). Another panel had some great participants from very disparate areas of automotive talking about some specific activities they're doing. Truly great examples, results and actions were shared. The missing component was how the average dealer, yes including those in attendance, can implement a plan.

What is happening, as our world moves forward at a speed more reminiscent of the amazing La Mans cars running around Circuit De La Sarthe as this is being written, might be another dose of "ignorance is bliss". And that doesn't help anyone. Dealers asking their factories and reps for help (as was overheard quite frequently lately) are getting shrugged shoulders, "we're working on that right now" or "hire the right company or employee to handle that" responses. In other words, dealers are on their own.

So the dealers' sources for information are limited to their 20 group, industry events and magazines, word of mouth and the old fashion pitch by the vendor. Most dealership decision makers aren't reading the blogs and forums because if they were, they'd be asking questions and participating (yes, we regularly scan for them). So, as with the first "Vendoritis Or Dealeritis" post a while back, the question needs to asked again: how do dealers move forward?

Our industry is always in flux. Lately there has been a more interesting bend, however. Dealers and vendors, for example, fixated solely on SEO for the past year plus are now looking at poor conversion stats to fix.There will be the same issues with social media in a year: those that chose to hire crap automation and get to 5,000 Facebook fans and 10,000 Twitter followers will discover that it's not done anything for brand or business building since over 1/2 of their social media throng is over 500 miles away if not in another country.

When you take your eyes off the ball, you can't catch it. You likely won't even see it. Many today say "bullshit, I can do it all". Well, good luck to you. The best of the Fortune 100 acknowledge that they can't. Maybe automotive retailers can do it all: sell the cars they need to monthly and still talk up a great story online. Just like the vendors that do a mediocre job for you somewhere else in your store and tell you that they can add something to their plate. Yeah, and there's a bridge in the desert that I need to show you…

Best Practices: Professional Insight, Powerful Results

June 12, 2010 by Gary May 1