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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

Webinar: Social Media Help Desk: The Do’s and Don’ts of Facebook

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Date:  Wed, April 28th 
Time:   2:00 PM Central
Duration:  60 Minutes

Not surprisingly, it’s difficult to find a large brand that isn’t at least thinking about how it can participate in social networking phenom, Facebook. With over 400 million members, Facebook teases with an audience that is nearly four times greater than that of the Super Bowl…every day. Unfortunately, many brands are finding that there is a big difference between setting up a fan page and creating a meaningful presence that attracts real customer engagement.

The single biggest point of failure according to Kevin Tate, principal of StepChange, is an unwillingness to follow the four golden rules of creating a successful Facebook presence.  Join Powered and StepChangeGroup on Wednesday, April 28th at 2:00 PM CDT (please note your time zone) for our first Social Media Help Desk of 2010 – The Do's and Don'ts of Facebook.  Register to attend.

Kevin will spend 15 minutes discussing the four golden rules for any successful Facebook engagement and providing real-life examples of brands that have established a successful dialogue with their fans on Facebook.  (He knows a thing or two about this topic as he has worked with nearly 100 brands to create meaningful Facebook presences in a world where many have failed.)  The remaining 45 minutes will be spent on answering live questions from the audience as well as those submitted upon registration.  So don't miss this opportunity to join the discussion.  Register to reserve your seat.

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

Trying To Move Your Business Forward Alone? You’ll Get Tired…And More Lonely!

There you were, grand opening day. Glistening bright showroom, gleaming inventory, balloons, refreshments and customers. Fast forward however many years and maybe a few of those items have faded. But the one thing that can't go away: customers! More businesses are waking up to the fact that it's about the customer and some even realize more specifically that it's what they can and will do for your business.

Whether you're involved with social media or not, crowd sourcing (and all its forms and descriptions) is one of the best and most efficient ways to move your business. There is no question that your business must move from the inside but it moves more quickly if your second greatest asset (yes, your greatest asset still is your people) helps from the outside. It may be the greatest step in avoiding greater amounts of failure than necessary (read: failure is necessary, just not to much).

Now if you believe that means you need to have a ground-moving meetup or tweetup, stop there. If you have plans to crush your competition with a Facebook page or more Twitter followers because someone says you're great, put away your soap box now. What you simply need is your customers to help move your business forward with direct interaction. You know, real conversation! Have you collected an opt-in email database? Have you surveyed random sales and service customers within one hour of their visit using free online services? Ask and you'll be told.

That being said, if your engagement online is mature and you get compelling responses, all the better. Remember that your customers having a say in your business is not an "in a silo" activity. Your greatest opportunities are in the great areas of volume and you should likely reward your most helpful clients as well (in legal ways).

Businesses must move forward to keep up with their customers today. Keep the conversation to your management team, and you'll likely keep your results as they are today. The suggestions from a 47 year-old mother of two or a 22 year-old fresh-out-of-college-with-a-first-job kid are likely more in-line with what will make you successful. Go on, do it…surprise yourself!

Or you can be like too many businesses today that are getting hammered in reviews, CSI rankings, word-of-mouth and other media only to decide how to move forward alone. When you try to do that alone, you'll get tired…and more lonely! Ever heard of the customer that got into a great conversation with the GSM or GM, came back for another chat during their first service, ended up working for the dealership and is not only killing it now, they've brought everyone with them?

Oh yeah, that would never happen to you! You're not looking outside for help anyway….

Best Practices: Professional Insight, Powerful Results

Branding, Communication and Process For Dummies (AKA All Of Us) In Time For NADA

If education, reinforcement, results and transparency are the benchmarks of success why are we all not more successful than we are right now? More often than not, in our beloved industry, what has been around for a long time is considered as accepted or the norm and what is new is rejected with rare exception. At the end of the day we're branders and communicators entirely and inextricably linked to the success or failure of process. Well, we need a wake up call.

Recently there has been a barrage of articles on everything from social media must do's for car dealers to self-indulgent bantering among dealership consultants, from incessantly republishing authoritative sources to fill pages and drive traffic to kicking dead horses and old ghosts. And who are we kidding? The whole industry has to wake up to new ways of doing business, engaging consumers that control content, delivering more value than flash to dealerships, learning more than preaching and finally…wait for it…stop talking about what you don't understand.

So what's the difference between ignoring technology because management says "you can sell without it", the Barracuda firewall encasing your dealership is controlled by a corporate yes man who thinks that every 10 minutes on Facebook is one unit lost and your so-called vendors swear they're "all over it" and getting passed by like a 911 GT3 in 6th gear? Not much unless you truly desire to be in business and profitable over the next 24 months.

Every piece of real data out there shows the same thing: brand, communication and process control your path. Not advertising. Not high-pressure salesmanship. Not displacing your cranium under the warm sand. Brand is shared. Communication is shared. Process doesn't need to be shared but without it you won't remember where the brand and communication go (even if you've got really good hair, a tan and bling to win over GMs and dealer principals with).

So, when's the last time you went through your website (and saw keyword stuffing and out-of-date optimization)? Checked out your templates (and saw that they didn't have links in your signature block)? Really customized your 'newsletter' (that is the same as everyone else's)? Checked, double-checked and then triple-checked your third-party lead sources (unless you have no issue with them showing 80 leads and 315 phone calls when you're positive that the real number is half that)? Do you truly know what your site analytics show? How are those inbound links working for you? And your press releases? When was the last blog post you did?

Today I overheard a salesperson getting educated at a dealership. Rather than say trained, we'll go with that. He was asked not to say "welcome to (name of dealership), my name is (his name), how can I help you?". It was explained that by putting the showroom guest in the position of being 'helped' that they will feel put off or less empowered and it was better to offer assistance by saying "how can I assist you?".

Let's not kid ourselves any more. Many in automotive retail need HELP and those that ask will get it from the best sources the industry has to offer, as long as they're willing to go with the new. As you check out all that has to be offered in Orlando this weekend, where is your help going to come from?

Best Practices: Professional Insight, Powerful Results

Why 2010 Is The Year For The Dealer In The Automotive Communities

You've seen them. You've registered. You've looked a couple times. You've even mentioned them at some of the events you attend to be in the 'know' . But the most you've been involved with what is likely the greatest area of information and opportunity for quicker growth ends with exactly that: not much. Post a comment on a forum? Nonsense. Ask a tough question of your peers? Waster of time. But your processes, results and even poorly rated vendors don't change and the answers are staring at you, through that nice flat screen you convinced your general manager you had to have.

So what will it take to propel dealership involvement in the communities? If we don't change retail, as great as the products have gotten, the fact that new cars are now launched on the web or mobile devices exclusively rather than traditional advertising (about stinking time), the fact that you read reviews of hotels and restaurants on review/forum sites and a list of other valid reasons, the dealer voice online is about as frequent as (fill in your least favorite 80's or 90's pop star here, mine's Cher) appearing on the Billboard Chart's number one spot today.

We can all agree, or let's just say we can, that a lot has had to change in automotive retail. And some are doing it with rewarding results. Even with 'better' results, it's not enough to drop your marketing expense by $50,000 a month compared to a couple years from now, redesign your website and expect cars to fly off the showroom floor. We must share and help each other.

Considering how many have chopped expenses including travel and 20 groups, stopped attending most events and don't even see their reps as much as before, how can you not leverage the online automotive industry communities? That is a rhetorical question considering how many dealers still step over a dollar to pick up a penny.

And let's have real involvement rather the same old list of suspects. A changing of the guard is totally needed, appropriate and refreshing. Does your favorite publication use the same contributors every month? (yawn) Boring! It's no different online.

Dealers, here is the challenge: write down your two or three biggest challenges. Everyone posts them starting tomorrow, for the next 50 weeks. Stupid questions? No such thing! Someone already asked the same or close question? See who else can answer it. What are you afraid of? This is your opportunity to learn while everyone else does. No two people will execute exactly the same so make sure you've got your spin on it.

As an example, after last October's DrivingSales Executive Summit, the comments were consistent not only about the value of the event but the content was more in line with what dealers needed. It was dynamic. The speakers were fresh. The subjects impacted attendees. Then, crickets on the website.

Folks, this is THE year for the automotive online community. Our future success depends on what we do today and for the next 354 days. We have one of the best industries out there, we should treat it as such.

Best Practices: Profession Insight, Powerful Results

It Doesn’t Matter How Much, You Can’t Afford Not Going All Out On The Web

With the end of the year quickly approaching and a focus on getting as many cars sold as possible, it''s also the only time you have to make sure your plan is right for your web presence in 2010.  We're talking about a plan.  If you don't have one, it's time do something that will really move the needle for you.

It's a bit of Branding 101, Internet 102, Process 201 (we'll say that since you've likely hired a more traditional "get them excited to do more of the same thing after the excitement of yelling at them wears off in 3 days" trainer although not in a while) and a number of other 'class' sounding names.  The long and short of it everything you're successful at will depend on your virtual existence.

So, when you decide to spend $X,XXX to $XX,XXX per month online, and stick with it for the long haul, start with:

WEBSITE: A thorough review of your websites via a true outside SEO review (we use @Grader at http://websitegrader.com), SEO keyword report from a third party (we use AutoFusion at http://www.autofusion.com) and a true review of best practices will have to open to change considering what most website companies offer.  If you're website is 6 years old, has 100-400 indexed pages, less than 100 inbound links and a page rank under 4, it's time to say hello to a more competent provider.

We're not going to list website vendors here this time.  Just start by knowing what you are paying for and (likely) not getting.  The most important part is how dynamic your site(s) and content are.  Yes, SEO is here to stay along with usability and design.

CRM/EMAIL MARKETING: While there has been a lot of focus on social media, email is still an effective tool for engagement.  That is as long as you make it relevant and compelling.  How do you do that?  Start really looking at who is in your database, not just deeming them as customers!  Without getting into the details here, start thinking about your message and what you would want act on instead of not thinking and leaving companies that know nothing about your business communicate for you.  Do yourself a huge favor and read what you're sending out before you simply spend money on someone to spread *&$! out there faster and more efficiently.

When you've got that done, we think that these represent some best-practice partners: VIN Solutions (http://www.vinsolutions.com), Dealer Socket (http://www.dealersocket.com)  and DealerUps (http://www.dealerups.com), which has been going though retooling since acquisition can really help you do your job more effectively with way less effort.

Using an email marketing company is important if you want to have more transparency and control (including scrubbing, deduping, targeting and more), remember to focus on content. Emma (http://www.myemma.com), Ratepoint (http://www.ratepoint.com) and Constant Contact (http://www.constantcontact.com) are leaders in their field in addition to the more auto-industry pervasive IMN (http://www.imakenews.com) in addition to surveys made easy by Survey Monkey (http://www.surveymonkey.com).  the investments made in the services is minimal compared to the results.  Again, your content must be timely, compelling and relevant or your just advertising and most people say 'no thanks' to that.

REPUTATION MANAGEMENT: What are other people reading before they ever talk to or visit you?  It's how a majority of people are deciding on where they spend their hard-earned money!  Will you spend $150 a night at a hotel with a 2-star ranking from guests?  Why spend $30,000 on a dealer that does?  Start by checking Yelp, DealerRater, Google and more.  Then set up Google, Twitter and other alerts to monitor your business' name for free is a great start.  Then there are services for a fee (in and out of the industry providers) from eXteres Auto (http://www.exteresauto.com) to Radian6 (http://www.radiansix.com) that know and understand online reputation and how to stay up on what's being said about you AND your competition.

SOCIAL MEDIA: It's all the buzz.  And for most dealers, It's another avenue to scream "BUY HERE". Start with trying to understand that it starts with social.  Think about how you're social.  If you're selling all the time, you're likely not effective.  And neither is selling all the time on networks.  Be different, unique, compelling (there it is again!) and someone that people want to talk with rather than ignore.  Here's a hint: if you get between 30 and 70% open rate on your emails but no clicks and/or your website visits crash two days later, and you're going to send the same kind of messages out via social media. there's one word for you: don't.

These are merely starting points and things to consider in your online branding.  One thing to keep in mind as well: when you do promote and advertise, make sure that your message is contiguous.  If you're a Toyota store and taking part in the Tent Event, everything you put on the web should be intertwined and you should have your store benefits and unique aspects promoted in addition to proper promotion.

If the above is already a stretch for your current resources and knowledge, get help.  There are dozens of consultants out there.  Don't hire an advertising agency to do this.  Don't take the word of your current providers.  Find out for yourself, ignore reps and figure out what you want from your money.

Get going, your competition already is or will be next.  And don't pay the Internet any more lip service about what you're going to do, start and do it so you can have the Internet paying you.

Best Practices: Professional Insight, Powerful Results

What Will You Focus On Tuesday After Clunkers Shuts Down? Start Inviting Your Customers In Again…

Imagine, if you can, that business becomes painfully slow. Sales, traffic, even service, is down anywhere from a little bit to 'oh-my-gosh-how-can-we-survive?' slow.  Then try really hard to imagine some gift-from-above program from an unannounced source drives a bunch of customers to your store for a few weeks.  Then…the program ends abruptly.  At the same time, consider that you expected the program to end at any time so you are not completely surprised by the news that the masked crusader and his money left town.

What will you do the next business day? How prepared you are, how well you communicate with prospects and customers alike, how creative you are and where you know your business comes from will dictate if Tuesday is satisfactorily busy or if it is just like another day before all the loads of Monopoly money arrived.

Most people we've heard from consider C.A.R.S. a blessing with all of the traffic and sales it generated, as well as a genuine pain in the butt.  Of course!  If you had the program to do for yourself, would you have done it any differently?  You absolutely would have.  So why are you going to be twiddling your thumbs come Tuesday?  What program you run is up to YOU, every day.

Now, that's not to say that you're going to be able to come up with $4,500 of "it'll get here someday" funds on nearly half of the deals you do next week or any other day.  However, it's entirely up to you how to drive people off of their scared little (and big) duffs and into your business.

It's not up to the factory, it's not up to the million-dollar advertisements, it's not up to the region or your 20-group and gosh-forbid it's definitely not up to the government.  Don't you want them out of your business…not in it?  What happens in your business, positive or negative, is up to you, your brand, your staff, your effort and your planning.

So when the here today-gone tomorrow spigot of funds is finally turned off by someone making a lot more than you with nicer benefits than you have and a pension you can't even dream about, get back into the habit of making your business happen.  Less business?  Get a bigger piece of a smaller pie!

Can't figure out how to make it work?  Ask someone for help or at least tell the receptionist that you're not "away from your desk all day" and that you'll start taking meetings again.  Business doesn't happen from thin air, it takes a lot of work and some good consistency.  And sometimes it takes outside ideas folks, as painful as that might sound to some 20-year plus veterans.

Besides, whether you call it natural selection, survival of the fittest or one of a myriad of other expressions that refer to 'business better then usual', it is always best when you're the master of your domain rather than waiting for the next shot in the arm.

Best practices: Professional Insight, Powerful Results

Because it’s whatcha whatcha whatcha want!

Let's face it: everything that happens is due to your choices. Your job. Your successes. Your failures. Your knowledge. Your doubt. Your leadership. Your mindset. Your resistance. Nothing defines us more than…us. Performance is an indicator of readiness, focus and opportunity.

So why is it that the more things change, the more people want to stay the same? Dealers want more from less but will still buy things that absolutely make no sense. General managers say that they only want their people to sell but expect the factory to feed them. Salespeople say they want more customers but don't do the activities to back it up.

What is it exactly that you want? What is it that floats your boat? If you want to rise in the morning and achieve mediocrity, you should do it somewhere that people don't expect much. Greater things are expected in our industry and that should not change. Leaders are not born; they're made, built and modeled. If what you want is to excel, be the best at what you do. If you're going to succeed, do what successful people do!

Unfortunately we're in a 'wait and see' world. In one of my other businesses, it's always interesting talking with people about creating income. They're worried about the economy, their job, money, savings, college for kids, investments, etc. Ask someone if they're open to making more money and invariably you'll hear 'yes' immediately. Tell them there is actual work involved and listen to how they're too busy, their pet died a couple months ago, their uncle is coming into town in 14 weeks and other excuses that will not only blow your mind but show the lack of desire or drive!

Know goals…gets results. No goals…gets results. What you want has do be matched by what you'll do to achieve it. Make it your business to believe, visualize, announce and then get your results.

SO…what'cha what'cha what'cha want?

p.s. Sorry! It is 'stolen' but I couldn't avoid that title. Full credit to the Beastie Boys and so appropriate here… In the event that you actually do something new, please comment and let us know how you're getting what you want…and more power to you!

What Are You Waiting For? It’s Already Been Here And The Train Left The Station…

Many people that are concerned in all types of businesses talk the same talk today: waiting. Some have been waiting for a new administration, some for a car czar, some for banks to loosen up, some for 'the bottom' and some just for the fun of waiting.

When you're in business, you can't wait especially when it costs you money. In the car business, it's been about waiting for people 'to really go online' or for the 'next up', or even the holy grails of 'cheap gas', 'more hybrids' or 'better advertising'. You can wait as long as it takes you and your business to turn the lights off.

Or you can become the car czar, the new administration in your dealership, the VP of Internet sales or even the authority for your entire area. Why do reporters cover auto stories IN FRONT of the "fill in the brand" dealership WITHOUT interviewing staff? The point is you can't wait, you have to act!

When I was at CarsDirect.com nine years ago, I heard a lot of 'nobody will buy a car online!'. Now my memory is likely not spot on, but I believe sales hit over 12,000 units that year. Anyway, you can keep waiting for people to hit your showroom after visiting your (mostly) average websites or stop waiting, start changing and keep changing.

Waiting does not typically evolve into a leadership position, even if it does work in your benefit every now and then. Now there is inherent risk in not waiting and taking a position on the front lines. But now is the best time to make the move.

It sounds like NADA dealership attendance (via pre-registrations) is down around half, depending who you talk to. That means A LOT of people will save one, two, maybe three thousand dollars over the weekend. It will likely cost them tens if not hundreds of thousands of dollars this year. What are you waiting for? I'll see whoever is going there to share ideas, meet vendors and start making more decisions that will grow business.

Oh, I'll be Twittering from NADA (@imacsweb on Twitter)

Best practices: Professional Insight, Powerful Results