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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

August 29, 2010 by Gary May 0
Hey, It’s Digital

Another event in the history books. Digital Dealer 8 provided a new round
of talk, perspective, conjecture, ideas and repetitiveness. Well
attended, the eighth iteration of the event made way for a full expo,
some great sessions, loud receptions and the proverbial automotive
industry buzz.

It was a bit funny last week when two things occurred that caused me to
think about what it is to be "digital", take the leap of faith, change
some (ok, a lot) of the broken practices in our business and bring as
many willing people along with us. Brian Pasch and Ralph Paglia both had
digital device "snafus" in front of a bunch of people. And it was
funny. While some loudmouth from the crowd chirped "it's digital"
(please, no guesses) , it caused me to reflect on how connected we are
to everything digital. And what we continue to do wrong, including the
so called education of the dealers looking for assistance.

Automotive retail's entire existence is based on success in the digital
realm. We don't need a bunch of people, many barely versed themselves,
standing in front of rooms of people telling them that the train has
left the station. Dealers need real assistance, in real time, in real
terms, from real people to build real results.

One thing that tends to rub me is the intention versus goal aspect of
the conferences. What's happened to AAISP? certification programs? "put
the dealer before profits" and all of the other chatter over the past
four years? This is not a post meant to call bullshit on everything but
to avoid it completely would be a disservice. At many conferences, more
netowrking and business happens away from the event than at the event.
And…there is a belief structure that has to be maintained.

It strikes me as odd when people attend events that can have a
significant impact, offer extremely relevant information and otherwise
influence attendees in a positive way are charged the most, treated as
less-than-desireables and not invited to particiapte in the most basic
way. Actually it's flat out wrong. The leading events let the audience
and industry decide what's best. Not the promoter.

Changes in the industry are happening at such a rate now that those in
position to create, promote and execute on large-scale events need to be
more in line who they claim to help. Watch the bottom line? Sure you
should make a profit if you're going to be bold enough, especially in
these economic times, to front cash (which can be significant) and put
an agenda together.

Ego and enforcement also have no place in today's events. Protocol,
yes. Guidelines, yes. Omnipotent overlords focused on anything besides
what drives the most value need to, well…be somewhere else. The
digital shift is about practices, assistance, positioning, data and
more. Our industry has been dealt a deserved blow in the digital space
due to ignorance, denial and a refusal to recognize our own customers
and public. How can the auto industry be so large yet engage and learn
so little?

In my opinion, there should be more Internet department directors
(pardon the phrase), field reps for the larger companies and consultants
that are not beholden to vendors on stage. Those are the people moving
the industry digital every day. Attendees don't want pitches. They need
honest answers. They need examples. They absolutely want to understand
what to do. Not being told. Not being sold. Remember, just like a
customer at a dealership, they want to buy from someone they trust, that
listens to them, that can deliver on value and promises. Why should the
B-to-B part of our business be any different?

It time to start doing the work instead of talking the talk. No more
"we do that" and then scramble to execute it for the first time. No more
canceled cook-offs. No more delays in production. And a lot more
customer service. That's what we need at retail. That's what we need
from the companies making the claims and filling the magazines with ads.
The one's retailers are trying not to do themselves anymore. Because
they're listening to us.

Because, hey. It's digital.

Best Practices: Professional Insight, Powerful Results

May 1, 2010 by Gary May 0
Is It The Chicken Or The Egg? Nope. It’s The Customer!

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

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

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

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

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

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

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

Best Practices: Professional Insight, Powerful Results

March 15, 2010 by Gary May 1
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

February 10, 2010 by Gary May 0
The Square Peg, The Round Hole and Public Opinion. How Can The Dealer Win?

The factory, the product, the media coverage, the recalls, the blitz of lacking and half-cooked information. When does the dealer get the coverage? When they're closing, exposed as corrupt or so-called environmentalists torch their lots. Welcome to the square peg and the round hole in the automotive industry, if not the perfect storm.

And who's to blame for the lopsided ego-train? Yes, the factory is guilty: plain as day. More than not, they treat the dealer like a flea on the 800-pound gorilla. But so is the dealer base. For the last couple decades, the dealers have waited for the new models, created mediocre-at-best, self-indulgent print and radio ads, greeted fearful (or at least resentful) customers in less-than-desirable locations and then wondered why they have the (earned) reputations they do.

With exception to the leaders in the industry, dealers have not done much to truly brand and distinguish themselves. Don't get 'yer panties in a wad yet: We're not saying that you don't impact your communities, gainfully employ many or that you don't feed tax revenue into your city's coffers. What we are saying is that the dealer brands have not matched, let alone eclipsed, the nameplate and that is sad. Today would be one of those days if you happen to sell one of two import brands…and we all know that the domestics have had their days as well.

There has not been a better time ever to build a sustainable brand aside from what the factory does. And wouldn't you want to do something different?!?!?! Have you paid attention to most car ads? Have you seen the POPs that are created for showrooms? You're better off putting one of those 40-foot high lizards or cylindrical men with billowing arms on your roof! Actually, please don't do that, 1986 called and they want their marketing back.

How does the dealer win today?  Start competing with the factory by becoming your own media. On the web it's more achievable for less money than you'd ever imagine, if you do it right. You might even start working with your customers and actually source, communicate and retain them successfully. There are some OEMs that actually want to take over your CRM and relationships but it's not because they can do it any better than the dealer can. Truth is it's not happening correctly at retail. This evening I was talking to a successful local dealer group that has one of their import stores source nearly every walk-up the same way in their CRM: simply click the first drop down choice. CRAP!

The foundation for winning is simple, it's just not easy: unbreakable processes, management from the top down, complete comprehension of systems and support and a die-hard commitment to the customer. If we don't do that, it's all for naught.

These are still very trying times in automotive (special mention to the banks!). Maybe we can all start by simply trying to keep ourselves from making it any harder. Start internally. Then make sure your 'home' is in great shape. Then concentrate on the customers. Then, alas, take care of the factory.

Best Practices: Professional Insight, Powerful Results

February 2, 2010 by Gary May 0
On Your Mark, Get Set, Think, Plan, Then Go! And Then Review.

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

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

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

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

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

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

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

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

Best Practices: Professional Insight, Powerful Results

November 12, 2009 by Gary May 0
Why Hit The Panic Button When You Can Hit The Simple Button?

Can't you just hear it in the background when you try to explain the shift to digital/social marketing from traditional 'push' marketing to a business like, oh let's say, a car dealer? A chorus fills your head from 1978: "Aaahh Freak out!  Le Freak, C'est Chic, Freak out!". Scary enough, our sales volumes are near 1978 levels and we continue to advertise as if it were.

From forums on DrivingSales to articles on Advertising Age to the offices of medium- to large-sized dealer groups, there is still a debate. That's' mind boggling! Consumers are gobbling up media at alarming rates. Their chosen media, not advertising. Do you still believe it was the advertisers that killed the newspapers? It's much easier to accept than understand that people don't need to read yesterday's news that they already got online or on their cell phone the day before.

So, people do what people do when they just don't understand: freak out, panic, sweat, worry, bury their heads. Come on, take out the Simple button (thanks for the idea Staples!) and start working and communicating WITH everyone. If you don't understand SEO, social media, microsites, true CRM, integration and the whole list of items that aren't a print, radio or TV ad then simply ask our community. Stop being in love with your advertisements and start being in love with your customers!

Changing the way we generate traffic is not easy, but it is incredibly simple. What is usually missing from any effective digital strategy at dealers is (1) process, (2) stick-to-it-iveness, (3) oversight, (4) knowledge, (5) willingness and (6) a burning desire to succeed. Why wait when you can dominate? The wait mentality really gets my goat. You might as well sell you business if you're going to wait.

Last week while speaking at a NADA 20 Group, one dealer had less than 20% of their marketing budget in digital/online. His explanation? "Hasn't worked!". His process? Buying the same way he buys weekend spot or full-page ads. Folks, online is not a "stick-your-toe-in-the-water-and-see-if-it-feels-good" proposition. All of the transparency and accountability is there, no other media measures like online!!

Whether it's wanting to "own" page one of Google by partnering with a strong SEO company (especially if your website company thinks SEO is simply a typo of CEO), to sharing great content on Facebook or Twitter, effectively engaging service customers with a tool like Driverside, or doing effective CRM with a company like DealerSocket or VINSolutions, it's the same: if you don't know, ask.

If you don't have the best brand possible reflected online, over 60 percent open rates for your emails, positive onliine reputation, inventory that can be indexed by the search engines (you don't if it's framed-in on your website) and a community that communicates with you online, it's time to get your business in order before spending thousands and thousands of dollars every month because someone's convinced you that they can sell more cars for you (if they're that strong, hire them and get rid of your deadwood).

Polish up your Simple button and use it because you should be operating a profitable business and not a charity and blind contribution machine. In other words, make your business right before you continue to help make others right (and more profitable that yours)…

Best practices: Professional Insight, Powerful Results

October 27, 2009 by Gary May 0
Reputation Management: The Good, The Bad And The Ugly

This post should really be titled: Reputation Management: Can't I Just Ignore It? It's amazing that another year, and some great social media presentations, has passed with dealers still not understanding that they live and die by their reputation. They know it, they don't understand it. Or else everyone would be tackling their Achilles' heel.

It wasn't too long ago that dealers knew their customers by name, would give up their own car if a client's died on the way home, attended the events they sponsored and generally made sure their name (and brand) was sterling. Then came the 'glut years' of the mid-80s to about two years ago. Dealers practically printed money for 20 years or so and then the dance ended.

Volume, massive profits, huge staffs and even traffic have mostly gone in the same direction as reputation: downhill. With the exception of some forward-thinking and consumer-focused retailers, it seems apparent that our industry is completely fine with negative reviews on top of the other diminishing returns already listed. If there is one thing you do around social media, please let it be reputation management.

You may not be ready to tweet, post, share this, stumble upon anything, digg or have a bunch of fans, but chances are you are concerned about something other than how many other dealers sold cars out of your PMA. About 3/4 of the public will now now shop you based on other consumer write ups!!!!!! That should be enough to make any business owner or manager go online
and start participating in something other than fantasy football
leagues (not saying that anything is wrong with that!).

Maybe you don't realize how simple (read: it may not be easy but it's painfully simple) it is to participate, get everyone on board at your store and improve your results, or how quickly fewer than a handful of poor reviews can absolutely kill your business. You do have a choice no matter which way you go.

If you haven't been to Google, DealerRater or Yelp lately, it's time you did. Most of the traffic to your online store has been or will be viewing the comments others have made about you. And do it now. I've been talking with a large dealer in Los Angeles for four months who still hasn't decided to invest time, resources or effort in one of the greatest opportunities for more traffic, greater customer confidence, referrals (remember those????) and just plain common sense. I don't know what's stopping them and I don't know what's stopping you.

Just remember that there are three things that never work in the car business: hear no evil, see no evil, speak no evil. It's time you got up to speed on your online reputation and got a little more social. Maybe then we can get back to minting money again…

Best practices: Professional Insight, Power Results

October 18, 2009 by Gary May 0
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

August 20, 2009 by Gary May 1