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Branding: A Call To Arms (And Phones, Marketing, Websites, email…)

BOOM! It happens and you’re left without a net… Damaged image. Damaged perception. Damaged goods.

Unless you have a brand. Unless you’ve been under a rock or have been too ‘busy’, the amount of evidence, chatter, discussion and conference-data hinging about branding has been nearly deafening. And still, undeniably, the majority of dealers put all of it on the badge.

Write your rxcuses down and put them where the training materials are from your favorite industry speaker (likely in someone’s office or under the desk in the tower, collecting dust). That’s where theu. Belong.

Retailers with amazing brand, consistent engagement, a commitment to what they do for customers and how much they care for their own people know what to do and say when the shit hits the fan.

If you have little else aside from lip service and management doing things the way they always have, you’re forced to depend on the badge. And folks, that’s a crappy position to be in. Oh, it is completely preventable.

Brand, whether the store’s or the salesperson’s or the service tech’s or the business manager’s, is inextricably tied to the customer expeerience. Someone can sell a product for years and ultimately be invisible.

Whatever comes out of any manufacturer difficulty or trial can be mitigated by having a brand that is independent.  It’s been proven over and over and over.

There will be those who come out if any challenging time better, more aware,ore prepared and more convinced. Will that be you after the smoke clears? Or will it be back to business (badge reliant) as usual?

Don’t be badge-dependant, be self-dependant!  If you don’t understand or believe that, it’s time to do a little self-searching…and ask what your brand is.

 

Best Practices: Professional Insights, Powerful Results 

You Lost Me At Hello

Leads. Leads. Leads. Lead? Nope, the customer that should be
yours that will buy somewhere else. All the data (little data and it’s more
well-known brothers medium data and big data) says the same thing: people that
submit leads buy. And buy in a well-defined time frame. And buy from…….well,
it doesn’t matter. Most of the time it’s not you.

So what’s the deal? The deal is this: the more leads that
are typically generated deliver fewer customers. Why? Because we can’t change
an industry of salespeople, management, training and manuals before it wants to
shed its rich history of stuffing customers into cars, only going for the low-hanging
fruit and being “busy” which is a crock of bull. Between seemingly insurmountable
amounts of information and customers buying, there is a brick wall. Yes, the
one you keep hitting your heads against; the one that prevents us from being
great and gaining attitudes that push us outside of our comfort zones.

Internet leads are gold. Back in the 1800’s California Gold
Rush a lot of people went broke while a fair number made their riches. Fast
forward to the last fifteen years and, likely for many of the same reasons, a
few are making a killing while most are screaming “bad leads” rather than
actually looking at what the heck is happening in their stores.

Between a dealership’s website and third parties, the
average store can create enough business to sustain at least one person
dedicated to managing “leads” or a floor of great communicators (which everyone
says they are) sharing all of the business. The problem lies at the point where
a response is sent. For the most part, dealerships respond with crap, period.
Invite me into any dealership in the country, I’ll show you mediocre at best
responses within the 30 days period prior and many of them.

So what needs to be done to eliminate losing someone at
hello? Ready…here’s the rocket science: 

  • Read the lead, and most of the time the source
    lead, completely prior to sending a response. Then read it again. Then slow
    down and read it again.
  • The response should include answers to every question or comment provided by the customer and validation for the customer
  • The response should include a qualifying and/or
    a closing question every time. In
    every email. Every time. No matter what. Every time. And if you can’t think of
    one, write a couple and stick it to your monitor or keyboard (would you like assistance with anything else?
    or did you have any other questions right
    now?
    )
  • Hit send after you’ve read the email thoroughly,
    ensuring that everything asked by the customer has been addressed, value or
    benefit has been identified, your complete contact information is included and
    that no significant amount of time has elapsed since receiving the
    information/email/response from the customer. Hold it!! Read it again and make
    sure it is understandable and completely
    addresses what the customer wants and needs
    without being a Steinbeck.

The reason that most dealerships don’t receive equitable
responses from customers who submit online leads is….we send garbage! If it’s
easier and more rewarding to buy a $25 item from Amazon than a $30,000 car from
your store, shame on you!

Never send an email or pick up the phone (recorded phone
calls demonstrate that we do just as s**tty of a job on the phone as emails)
when (1) you don’t know what you are going to say, (2) don’t address the
customer’s needs, (3) can’t properly invite them into the dealership and (4)
talk/write more than asking questions.

Expectations around online experiences leading to purchase
are increasing. So it doesn’t make sense to miss the mark, then defend yourself
to your GM or GSM with anything other than “you know what, I don’t deserve to
manage your leads”. And by the way, that’s not much of a defense, however at
least it’s honest.

Remember that there is no such thing as a bad lead, just a
crappy response. Yes, there are bogus leads but you’re old enough and smart
enough to sell 20+ cars a month on 100 leads. Yes, you are. Go get ‘em tiger!

Best Practices:
Professional Insight, Powerful Results

Gut Check: What Are We Doing? Oh Yeah, Measuring!

Overstated? Maybe….but likely not. What are we doing? If we go by the numbers, and they're estimated but well known, we've got the second largest employer in the Untied States behind our back. The automotive industry is massive, even if you don't consider the associated businesses it keeps thriving. So, let's say we have a few million directly employed in the car biz (which is likely conservative) and had less than 3,000 in Las Vegas recently for the most important events that actually can move the needle. Pitiful. This week's SEMA show will kill that in attendance. And within the first hour.

What are we doing? So add the OEM eCommerce summits, conferences and events (which represent vendors more typically than push owners and general managers into the uncomfortable zone) and you've got at best a few thousand more that are around the discussions of online marketing, online customers, online retention and online success.

Ignore it at your own willful demise. Attack it like people trying the 72 ounce steak at Big Texan, you might go crazy trying to figure out which end is up. So how do you go down the road somewhere in between the two extremes and still try to maintain that "blocking and tackling" BS mentality that makes ownership and management comfortable? Simple: a plan.

While they are in fact out there, the count of dealers who have a written-down, approved, executable monthly strategy for doing and increasing amount of activities to promote success is likely somewhere around the chance of us having a space program in 2011 that lands us back on the moon. It's on the radar, they're might even be some dollars against it but I will venture a strong guess that it won't happen. That's not quite as disappointing as a dealer that is a few months from increasing their results and market share significantly, and does nothing about it.

Folks, the information is out here. And don't be afraid to ask. Yes, you might have to do some digging through the typical crap: an article on one of the popular automotive communities that doesn't answer your question but does have the "expert's" contact information. Or one of our recent favorites: white papers that will confuse the &^@# out of dealers that also end with a signature block that looks more like a proclamation. (Hint: generally speaking, automotive communities are not the place for white papers. Link to your website from the community website. Better yet, if it's a white paper done in conjunction with a company OUTSIDE of the industry, definitely publish it but keep your post on the communities to the synopsis. Please. Tip: not only that, you get back-links!!!!!!)

There have been fantastic pointers and forecasts about what will happen in the digital/online space for the past two years. Over 95% of the dealers missed or ignored them. Maybe it's time to have 2011 be "The Year Of Great Automotive Listening" (do that will your Movie-Guy voice). No matter what, this is the year of honest measurement, in our opinion.

So here's a few places to go to get your feet wet (or immersed) in measurement:

  1. Google.com (Analytics, Trends, Insights, Alerts, Webmaster tools, etc)
    A. If you've never used the above, start with going to Google and entering "links:www.YOURDEALERSHIPWEBSITE.com" or "site:www.YOURDEALERSHIPWEBSITE.com" and see what Google sees!
  2. Hubspot.com (Website grader, Facebook grader, Twitter grader, PR grader, etc)
    A. If you attended DrivingSales Executive Summit, you got more than you need!
  3. SEOmoz.org, Yahoo Site Explorer, etc (Linking and content tools)
  4. Twitalyzer, TwitterCounter, Untweeps, TwitterAnalyzer, etc (amazing tools if you're on Twitter)
  5. FourScore (found this recently for your FourSquare ranking/effectiveness)
  6. Compete, Alexa, etc (even though many dealership sites won't rank, be creative!)

There are so many other great FREE tools available for you to do more than just count on others, like your website company, and actually improve while holding people accountable but too many to list.

It's time for a gut check. How much further can you go down the road mostly (or absolutely) blind to what is essential to grow your business and be able to talk to the main points….without fudging it anymore.

Here's to doing things with more tools than just passion. Here's to knowing what we're doing!

Best Practices: Professional Insight, Powerful Results

IM@CS on Social Media Club LA Panel: Social Media Affecting the Automotive Industry

It was a pleasure to participate with other industry colleagues on a panel at Social Media Club LA’s event last Tuesday evening: How Social Media Is Affecting the Automotive Industry. Chris Heuer kicked off the evening as only the head of the global Social Media Clubs could. Serena Ehrlich moderated the panel and fielded the live and web-based questions. Thanks to TechZulu and Efren Toscano for covering the event live and to Dave Barthmuss and the GM team for providing some great pizza!



Watch live video from TechZulu on Justin.tv

Take The Walls Down On Both Sides

Two items that we talk a lot around but typically don't address directly are the 'blocking and tackling' in the retail business. One stops people from the inside, the other from the outside. The first limits a broader brand experience while the second keeps customers away. Slowly eliminate both and you'll win.

Dealership firewalls, website blocking, limiting controls and other less-than-trusting measures remove timely access and ability to become involved in what is the greatest area of traffic generation today. Add to that the understanding of what is happening in the market during the time in each person's day that it matters most. Whether posting to Facebook, sending test leads to competitors, scanning forums and reputation sites (likely for what Google alerts notified the store of), or seeing a competitor's site updates and overall becoming involved in the essential aspects of branding and reach, being online is essential.

No, just block everything. Enter the typical excuses for limiting adult access to the web at dealerships: time waste, inappropriate content, non-work activities and more. Wow, great thing that your IT director has that closed down!! Whew, and you thought smoking on the point, chatting incessantly on cell phones, water cooler banter about the dealership's 'less-than-perfects' and simply hanging out for the next up was a time suck. Boy the Internet did change everything.

So all of that other stuff is now ok and some barely negligible photo of a little known celebrity topless on some remote beach in Europe is wrong? It may be but the technology that allows a complete blackout of surfing the web in what can be extremely productive time can also be set up to allow the right use. Have someone violating your store's TOU? Then fire them for the same reason that you would for violating other company policies. Ok, enough about that dealership mistake that is completely circumvented by someone's web-enabled device.

The second issue is blocking the other stuff that your store also needs: customers. If you've not woken up to 2010 (or 2009, or even 2008 and before for that matter) and realized that people are judging you before ever deciding to step foot in your showroom you've got to take the blinders off. The days of hiding aspects of your operation, be it front-end or back-end, and surprising customers when they do decide to come in will kill you.

Dealerships that don't decide it's time for transparency are not only kidding themselves, they're also hurting the next store that dissatisfied customer is going to head to. It doesn't matter if it's tackling the next 'up' because it's your turn, stuffing someone that doesn't understand that you could have actually saved them money, stranding someone in the showroom because the used car manager can't find their keys or a litany of other lies and excuses, mistreat customers and you will have fewer of them. And they will let everyone else know online.

There is an abundance of complete disclosure on the web related to everything automotive. So why pretend it's 1994 at a dealership? Because that's what a GM knows or a GSM pushes? Sorry, that has no place in business and deserves to be eliminated completely from our industry's retail locations. The archaic practices that still exist need to replaced by true business excellence. Customers will build a wall so fast around your dealership it'll make your head spin.

So if these are your challenges for 2010, put new plans and goals into action. The walls inside and outside your store will bring your business to a halt. Removing them and getting everyone involved in building your business is the best course you can start the new year with.

Simply put in the words of John Mellencamp in "Tumblin' Down":

Saw my picture in the paper
Read the news around my face
And now some people don't want to treat me the same…
When the walls come tumblin' down

You don't control your reputation, the factory, area pricing or everything else than happens around you, especially on the web and you'll never again control customers. What you do control is your brand, actions and messages. You can influence your customers and that, my friends, is powerful.

Take down the walls…

Best practices: Professional Insight, Powerful Results

Moving The Needle: From A Get Together To A Ground Swell

It is going to take lots more than talk, snake oil and rain dances to turn our hobby back into an industry with integrity, consistency and accountability (if we even had those in the first place).  It is more than about time to make change rather than simply talk about it.

Somewhere between the low-ball numbers form some industry experts and the pipe-dream estimates provided by others, there is a more accurate one and that's where we'll ultimately end the year.  Fact is the number is still going be a boatload below what it was just a couple years ago.  Now we can do our best to get to some better 'state of the industry' but the last time I checked, it still happens through selling and servicing cars the right way: one at a time.

Let's face it: consumers control content, the banks are controlling most of the consumers' spending (or at least for now), and there's no love lost for the venerable car dealer.

A couple weeks ago there was a Automotive LA Dinner, put together by Philip Inghelbrecht of TrueCar, and it was a great example of trying to get together to move the needle.  Eleven industry colleagues, most meeting for the first time, came from as far as 150 miles apart to meet in the Long Beach area and share insight, expertise, information, backgrounds and opportunities.  Our next meeting is supposed to be around the New Year, I hope sooner.

Next month's DrivingSales Executive Summit is going to be different.  charlie Vogelheim and Jared Hamilton wanted to put the dealers' future and opportunities in the spotlight, rather than the typical highest-paying sponsor or best-known industry speaker or colleague spearheading an event.  I hope this becomes a series of events with unprecedented support for the attendees, instead of greasing the skids for someone else.

The list of companies hosting webinars to get information out there for free is compelling: Cars.com, Powered.com, Automotive News, Ward's, Dealer.com and more are spending time, money and attention on where the water level really is: retail.

When the needle really starts moving in the right direction is when most of the events and support are the rule, not the exception.  It's a matter of finding the folks who weren't particularly impressed with an event, sitting down with them and finding out how to improve things.  Video after video, post after testimonial about how great an event or speaker or consultant was when half of the people in attendance leave a room is not going to benefit anyone.

Our responsibility is to improve, educate, compel, engage, support, enlist and activate.  Simply going through the motions and putting a new cover on old tricks (like reusing a one- or two-year old article and calling it fresh) , saying the you can deliver on something and then not or simply doing nothing at all – i.e. 'waiting' like so many dealers like to play it – is a move in the way wrong direction.  Don't get the wrong assumption: getting back to basics is great. Great for teaching someone how to close that doesn't.

You can't get a newspaper person to get the web, so don't try to.  You can't get a person who's never used a cell phone to text a message, so don't try to. But if we act like a village (no laughter, please) and raise the collective water level, we can do amazing things.  The needle can move much quicker in the direction we want and need if we eliminate the roadblocks, maintain above the status quo and help one more person each day achieve something more.

And maybe, just maybe, we might get someone who's never turned on a computer to end up taking 70 leads a month and closing at the third or fourth highest rate in a dealership.  We might see more dealerships starting to implement true customer satisfaction tools, employ true SEO practices, get advanced training on their CRMs, get a higher ROI from truly targeted service marketing and even utilize mobile web (I don't care if it's 0.005% of online users now, it won't be next week, next month or next year so quit using ridiculous excuses!!!).

Remember: it's our job to help move the needle, not someone else's.  Let's get the needle movers together.  Unite!…and stay thirsty my friends…

Best Practices: Professional Insight, Powerful Results

The Shiny New Tool Loses Luster: When The Belt Is Full

Come on, let's admit it. If someone launches a new tool, application, service, widget, doohickey, gizmo or gadget, we'll all explode. We are so full of tools, you likely feel like the Craftsman section at your local Sears…

Fact is we can probably expect more and that is what keeps pushing the bar forward. With the store closures, OEM staff reductions, agency layoffs and more you can likely look forward to more consultants, new software, increased industry service providers and just plain more 'stuff'.

And considering how most owners, GMs and GSMs buy stuff, there may be cause for more companies wanting to get their piece of a smaller spend pie because they're 'new, shiny, better, sexier or have great advertising'. Folks, we're not using all the tools you have currently, even if you don't really know how to use them in the first place (Ok, you can put all of your hands down because we know you haven't seen your so-called rep in nearly a year who promised the latest training you needed months ago).

More than ever, it's not about sticking with who you already have, simply saving a buck or not taking meetings with new vendors (excuses today are a penny a dozen). Simply put, you get what you pay for. If you are saving $200 a month between one service and another, you had better know what you're missing. If you're not investing in your staff's education/training (yes, I hate that word but the old guard will understand it), you might as well lower your unit forecast by 25-40%. And if you're not willing to take 'another meeting', you might as well hand a few extra dollars to your competitor down the street and take the rest of the week off.

Overwhelmed by technology? Don't ignore it, please! Don't understand something? Get a non-manager in your office that will use the tool/service and get THEIR take on it first hand, don't just give them a sell sheet and have them make a decision.

Over the next couple weeks, IM@CS is going to take a deeper dive into services available to the industry and write 'em up. We'll cover mobile, chat and inventory to start and see where it takes us. We hope to clear up misconceptions, especially around price since nearly everyone seems to be completely misguided on saving a buck versus being more effective. And then we'll try to take it from there…hope you get to use the information in profitable ways!!

Best practices: Professional Insight, Powerful Results

Some Good Time With Some Dealers…MPG Style (Why Weren’t More There!?)

Tuesday's MPG event at Proud Bird at LAX was another great session. While we're typically greeting marketers, OEM executives and industry suppliers, this was a great departure and informative (if not inspiring!). Charlie Vogelheim moderated the panel and the room finished the day with great questions. In between, it was all perspective, passion, personality and even a little bit of 'personal'.

Enter Jon Gray (Orange Coast Jeep Chrysler Dodge), Peter Hoffman (Sierra Automotive Group) and Beau Boeckmann (Galpin Motors). OK, there were three domestic dealerships on the panel so you could say the 'bend' was deserved. That being said, dealership owners I've met have all spoken the same way regardless if they were a domestic or import store owner. Fact is these guys know the business and definitely from a perspective rarely caught in the 'media' headlines after networks and publishers are done devouring the OEM stories.

The three principals were asked about everything from the cost to sell a car, how long they've been in business, how many employees they have, involvement with charities…to their take on government involvement in the automotive industry, specifically GM and Chrysler (with the two dealers speaking about being 'in the clear' of store terminations…for now).

One of the most interesting answers the panel gave was in regards to the impact of the Internet on car sales. All were in agreement that our favorite technology has added cost to dealership sales operations, not decreased, while acknowledging that the transparency has provided some significant advantages to their business.

As expected, the most pointed comments were about Washington's takeover of GM and Chrysler (let's say Fiasler since the Fiat purchase is complete as of this morning) and Ford's ability to stay out of the Cirque d' AutoBiz. They spoke of close friends and associates being on the short end of the decision stick.

Reflecting on how auto retail has changed, Boeckmann talked about how attrition in their local market area over the past years has taken the Ford dealership count from 9 to 3. Hoffman related the story of Oldsmobile's unwind a few years ago and how different it is this time around. Gray talked about how disconnected the factory reps are from the reality of dealership business. Both Hoffman and Boeckmann talked about Saturn's new life, albeit from polar opposites: Galpin still has their Saturn franchise while Sierra sold theirs. They both hope for the best with Penske's purchase of the brand.

Boeckmann provided a unique perspective in being a retailer that has a very close relationship with headquarters, even getting to have input on future cars. Mostly, the three businessmen related how hard it is to get both consumers and manufacturers to think of dealerships in a positive light.  All three are obviously passionate about what they do and provide to their communities, and very likely more so today. Even if most dealerships today are in defense mode, these three seem to have a forward-thinking perspective that is completely refreshing backed by the fact that none are throwing in the towel anytime soon.

These retailers don't have golden parachutes, multi-million (or
billion) dollar bailout packages, rarely get to sell cars for the same
price every time (as the factories do), and  are searching for the
logic behind the banks over-reactive pull back (and well as the search for loans so consumers can buy cars). Having seen a handful of dealerships speaking on panels over the past four years, it is clear that it needs to happen much, much more. Kudos to the Motor Press Guild for having the three fine retailers in for a dose of reality (and even a little bit of business and political conjecture).

What Bankruptcy Means To You And Me…Just Between Car People

Chances are you'll wake up June 2 and head to work, just like on June 1, with most people doing the "same place, same thing" jig and trading their time for money. Sometime (and consistently) over the coming months, however, that will change for far too many people. What we do and what becomes of us will define what impact Chrysler's and General Motors' bankruptcies will ultimately have as well as what will be written.

What bankruptcy means is "a legally declared inability or impairment of ability of an individual or organization to pay its creditors". What it means to you and me depends on what starts on our June 2. It's no secret that a myriad of factors slayed the once-giants. Without getting into the gory details let's say simply that a 'change order' is due (while salespeople might not get that, production folks will!). If everyone continues to focus on the OEMs and not the retail and supplier channel, we'll likely have more 'little' bankruptcies to talk about, soon.

Chances are the real place of change (not discounting what needs to happen at car companies' headquarters) is at dealerships. No doubt the ads will tout change, listening to the public, making better/safer cars and the like. With all of that, people still buy cars from dealerships and not the factories. People buy cars from people. Those people need to be given reasons, explanations, respect, validation and more for ANY purchase they do now.

If you are in retail and are not willing to make difficult changes, you must ask yourself why you're in retail. Bankruptcies will add layers of scrutiny, questions, doubt, consumer pullback and more. You must be prepared to proactively address your market, your clients, your prospects, your business model and more.It might even have people believing they can practically steal your inventory for pennies on the dollar (and tell you they should be able to since the creditors will get about the same!).

There is no such thing as "business as usual". Even in great times, that type of mentality will get you cut at the knees. The market is always in flux, even throwing some curve balls just because the world gives back what you want.

You see bankruptcy is a part of business, unfortunately. It will mean exactly what you want it to mean for you, your staff, your customers and suppliers. If you continue to drive a value, offer benefits, show genuine interest and respect, do what you say you'll do (hello auto industry – wake up!!), give real reasons to return, guess what. People will really do business with you. They have with other businesses in the throws of bankruptcy.

What does bankruptcy mean? What do you want it to mean? Don't allow it to be a crutch, an excuse, a reason to wait, a sign of weakness, a road hazard or anything but a word. If anything, let the transparency be a fear and lethargy removal machine, an opportunity creator and really go out there to be IN business rather that OUT of business. The rest is up to you.

Best practices: Professional Insight, Powerful Results

Author's note: At no time over the past year has IM@CS changed its focus for dealerships: process, branding, communication and accountability. Customized solutions tailored for each client. Commitment to your business and our word. It's time for a partner like that…

Live By Process or Die By Process: A Message To Management

Dealers/General Managers and General Sales Managers, this is where the accountability starts: You and Process. I've not yet entered a store where the Internet business excelled despite management (ok, for more than one month). Heading into 2009, you must understand all of the fundamentals, be able to speak to the critical points with ease, know your vendors along with holding them accountable and stay up on what's happening in your store as well as outside.

The opportunity to hide behind anything that keeps you from being engaged with your online identity, understanding what your (Internet) sales staff is doing, knowing how your leads are being handled and taking part in how you message all of your customers has to end. In order to lead, be able to influence your staff and hold meaningful conversations with your sales team you must:

    1. Embrace the web and your presence (likely for the same reasons you use the Internet)
    2. Immerse yourself in learning, reading and understanding technology and the tools
    3. Have complete transparency (logs, reports, analytics, vendor updates/meetings)
    4. Validate the use and effectiveness of the web in everything you do

Stores are managed top down, period. People have faith when their leadership does the things that matter, support and recognize them.  A few questions to ask yourselves:

   Do I:
    1. have a clearly understood web plan, marketing platform and the appropriate staff?
    2. read magazines, e-newsletters and industry information that informs and validates the efforts?
    3. take time to sit down with staff that handles my Internet business?
    4. clearly define goals that make sense and hold people accountable?
    5. support online efforts by staying in touch with both my staff and customers?
    6. know at all times what my online brand, messages and staff are doing to promote completely?

It is not enough to put up a website, buy leads, plug in a CRM and wait for customer to run in. Think like a customer, act like a customer, ask like a customer, shop yourself like a customer and task your staff like a customer. Then you must make sure that you have a viable process and support it. Not half way. Not three quarters of the way. All the way.

Failure is not an option when you understand, plan and execute. Process is a great thing that breeds results. Process also shows areas of failure, possible improvement and validates all of your efforts. Remember, you can have the latest and greatest of everything but it won't matter if you can't back it up.

Make it your goal to set all of these things in motion now so your 2009 is something to talk about. More customers will enter your store online now than will ever physically walk into your dealership. Make sure you are 100% confident that those people will see and experience exactly what you want them to. Then do it over and over again…oh, and change your website a bit regularly just in case they actually spend some time on it…

Best practices: Professional Insight, Powerful Results