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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

Let’s Talk Next Spring (A Very Direct Monologue)

(Note: As a practice, IM@CS has not written in the first person. We
try to not call people out or make examples of them directly. This is a
slight departure from the past two years of blog writing for dealers. We
hope you enjoy it or are at least compelled to comment on this aspect
as well)

After talking with Internet sales staff and leaving
messages for management over the past months, I visited a prominent
LA-area import dealer recently to see about getting a few minutes with
the manager responsible for their web and eCommerce presence. After
finally having the courtesy to recognize that someone was trying to talk
with him (understanding two things very well: one you're busy and two
you likely have a lot of people calling on you and trying to sell you),
he gave me 45 seconds.

In that time, he was able to share that
the "departments are going through changes so it's not the right time
and we'll be able to put our eCommerce and Internet efforts on the
schedule next Spring". Not only is this one of the best qualifiers, it
is also a great indicator of how removed from reality most dealers
really are. This is not a judgement, we'll leave that to the customers,
staff and factory. But as a litmus test, that's just bad. Flat out bad.

Let's say you ignore every automotive publication. Let's say you never
attend a "digital" event in the industry. Let's assume you're not in a
20 group. Just for kicks, let's say you never talk with your staff.
Considering it's 2010, if you have spent any time on the Internet,
bought an airplane ticket, hotel room, checked a sports score or weather
conditions, how can you allow yourself to be ignorant of what ALL
consumers do?

By next Spring, your competition will be
significantly ahead of you. And maybe by my or another consultant or
vendor's doing. Maybe even intentionally. When you send that kind of
signal out, it's hard not to either try to convince you (unless the
manager was intentionally being dismissive) or leave the store and run
to the next closest store. I say this because it's being done. Every
day.

While I can't speak for others that may walk into the
store I'm referring to, I can guarantee you that if I take the time to
engage you, your website, templates, social media (if it exists), phone
skills and other aspects of your operation has been assessed. Don't even
think for a second that mine is a traditional "pitch", again
understanding that everyone that walks in with a briefcase is likely
trying to get money from you in exchange for services.

Just
know that sometime, really soon, your traffic will go somewhere else..
And with what your using for website and more, it won't even cause a
drop of sweat to fall.

With all the best intentions,

Gary May
IM@CS

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

The Great Dealership Debate That Shouldn’t Be

"Hear ye, hear ye! For all of you, thou shalt be indentured in thar' olde sales department.  And for the rest of ya blubbering fools, 'yer lucky to call the Internet department over yonder home!"  Boy, sounds like a clip right out of a bad Tom Cruise period movie about horse sales from the 17th century, right?  And to top things off, he loses his English accent about 17 minutes into the flick…

All right, it may not be that bad where you work, and it may be the 21st century, but why is there still a separation between most dealership sales 'departments'?  Why is there still a debate about whether or not they should be integrated?  Is it because the favorite 'floor' sales person loses status and the spooned deals?  What is it about the 1987 mindset that carries otherwise unacceptable practices forward?

Your entire sales department shouldn't be handling Internet leads because nearly all customers are now shopping online.  It's not enough to make those not taking website ups handle "online jacks" simply because there is not a trickle of showroom traffic to speak of, and definitely not to support the size of your team.  Do it because it is simply the right thing to do.  How you do it is up to you.

Dealers: quit responding to the market, conditions, volume and what you perceive to be business indicators and start being proactive: building, planning and expecting more.  Nobody ever built a birdhouse, let alone an empire, by standing still and waiting.

Yet people that otherwise can absolutely, positively produce more numbers, revenue and profit are not in organizations that support the opportunity, vision or appropriate business model.  While a good number of dealers have shifted their resources to completely cover all aspects of sales including web-based leads (and you deserve a lot of credit for doing that), most of the market continues to have a small segment handle what continues to be debated as a different kind of customer.

Fact: Consumers no longer bend around businesses, especially those with dated practices.  If you haven't checked in a while, they're no longer around.  Competition, the Internet and consumer-generated content/virtual word of mouth have changed our industry.  Businesses must listen to, connect with, communicate with and engage with the consumer on their terms.  To use an old adage: quit trying to find a square peg into a round hole.

If you no longer drive to the airport, stand in a 52 minute line and deal with a counter agent to buy an airline ticket, why are you expecting people to deal with an automotive retailer in ways that are also 20-plus years old?  Remember this next time you're in line returning a high-tech item that
you bought online from your favorite electronics retailer: you'll
likely find yourself in the same line as the people who bought items in
the store.  Imagine that…the same line!

It's time to look at your business with new eyes and focus.  Don't do anything less than you'd expect from the places you do business with.  No debate about it: there is no such thing as an Internet department.   There are only the ones that haven't figured it out yet…

Best practices: Professional Insight, Powerful Results

If You’re Living By Service…Don’t Die By Service

We don't touch on service much here…time for a little breather!

More dealers than ever are floating (or simply sinking slower) on the revenue from their service department. This trend should be supported with an overwhelming conviction to completely satisfy customers. The risk is just too large to lose clients both on the front and the back end of the store.

Things being what they are, it should come as no surprise that achieving such a goal is as far away as the next 20 walk-in customers. Equally as daunting, many service directors have had their budgets and discount capabilities slashed when exactly the opposite should be done. At the same time, it would be great to report that at least some budget has been thrown over to the web for marketing. But the jury that we could ask on that one was laid off.

Folks, don't kick the gift of traffic in the mouth! By the same token, don't give away the farm either. Instead live by balance, planning (yes, plan ahead, execute on the plan and don't change the ding-dang plan) and accountability. Make sure that your service marketing completely and clearly explains the benefits of servicing at your dealership, tangible perks (VIP club, fixed pricing or discounts, upgraded loaners, pick-up/drop-off, etc), guarantees and anything else that puts you up a level.

Get your customers to write up their positive experiences (and to offset the bad ones) on sites like DealerRater, CarFolks, MyDealerReport, Yelp, Google, etc. Provide maintenance clinics at your store (since you're already doing new owner events every one to three months, right?) to help your customers get more for their money and feature your parts and accessories. And then set up service scheduling on your site to make it easier for your customers (TimeHighway, XTime, UDC, MyCarPage).

This is not rocket science, it's customer sense. Over the past two days I've been told about two completely different examples related to service departments:

One via a friend in Michigan talking about his BMW. The service light came on, he called the dealership 30 miles away and the service writer informed him how to avert the visit (the 'fix' worked). He could have still had my friend drive to the dealership, get a complimentary inspection, spend time at the store with -insert a salesperson's name here-, and sent on his way with a $30+ charge. Instead they created a customer for life (with the exception that the service writer didn't get his email/text address, log the call in the CRM and create a GREAT follow up for the event).

The other you'll have to read for yourself here on Edmunds' Inside Line which is just plain astonishing.

Now is the time to go the extra mile, not cut off a few inches. There's nothing worse than stepping over a dollar to pick up a penny. Do what it takes to deliver the best experience everywhere in your dealership. And start with your next customer…

Best practices: Professional Insight, Powerful Results