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The Year 2012 In Review? (What’s An Automotive Industry Nutshell?)

(Warning, 1000 words below!)

OK,
who's got their 2013 game face on? Nobody? Good, let's make things difficult!!!
2012 was one heck of a year: consumer demand is still up and growing for cars
(although demand still outstrips what sold), mobile use is skyrocketing (albeit
not remotely matched by dealers providing strong solutions), digital demand is
still growing at a breakneck pace (while use of traditional media by
dealerships is up), vehicle technology, especially in-car, is amazing and
overwhelming (while we still can't truly get a MPG sticker correct without driving like we're dying) and quality
is better than even with IQS improving (hand-in-hand with more
"media" coverage of massive recalls). Yup, 2012 was quite the year…

So ask
a car dealership what they're doing and about 16,500 answers will flutter
around "more _________ and less ________ while focusing on our key
strengths in _____________". And that, by the way, will be the answer
around January 5-15th because, unlike other industries that revolve around
retail, we seem to be focused on a date non later than January 5 to close the
year. Newsflash: 2012 is done. Make more calls, send more emails, offer more
dealer cash/rebates/incentives/consumer cash/financing discounts and leases and
you're still not going to sell more. Hello?!?! The "Oh, we pulled 10 more
from our competitor" crap doesn't fly. You'll sell what was essentially
already in the hopper and be happy with it.

Over the last twelve months we saw
highs and lows in the automotive industry, mostly driven by International
factors like economy, emerging markets, regulation, partnership and bankruptcy.
As a matter of fact, we are more tied than ever to what happens in Europe and
Asia, even considering how insular as we tend to be. Whether or not we get to
see a new Cadillac in the States depends more on what happens in Germany than
ever while BMW's success likely depends on what happens in South Carolina. 2012
saw the continued demise of storied as well as soft brands everywhere.

In the passing of this last year, it's
important to reflect on how we actually invited people into showrooms while not
making it any more enjoyable (except for the new showrooms which mostly made
the factory happy while getting better looking floor tiles and slightly better
tasting coffee to customers and some of those neat kids' play rooms we desperately needed). We
switched website CMSs, dealership CRMs, DMSs, SMSs and POPs but did satisfaction with
dealerships actually go up as much as 2012 IQS? Jaguar is still tops
(well, 2nd behind Lexus for 2012 models) on the list and they can't seem to
sell the damn cats…

What did 2012 deliver to your business?
If you've not asked your customers more than your factory reps, your
salespeople and your accountant, you will miss the boat by a larger gap in
2013. Yes, you will continue to sell cars next year and maybe, fortunately more
again, but where does that stop based on solely looking back or not at all?

Where your concentration needs to be,
right now, is around March 2013 because your next 6-8 weeks are already figured
out for the most part. No matter how many "cycles" we have, after 100
years of automobile sales most think that there is some magic to the last few
weeks of the year. Bullhooey.

If you want to succeed starting next
Tuesday, there is no other way to do it than be steadfast in every aspect of
your staff, processes, facility and follow through. Your greatest efforts need
to be put into place around the touch points (hint: it's not the cars!). Those
are showroom (real and virtual) and people. Nothing else matters without those. We are asked regularly how to "jumpstart" sales to the
effect that many talk about in the industry. If you've not been bombarded by
spam marketing and videos, it usually sounds like "100 to 500 cars
overnight with our processes" and "our sales events will have people
driving in from everywhere" and don't forget "our websites will
optimize so well (or drive leads so easily), no other dealer will be able to
touch your numbers, you'll dominate and just have to deliver cars". Rat
dung!

Get the best assets in your business
today that understand how everyday people use technology and expect to be
communicated with. If that means more green peas, then do it! Training?!?!
Tearing down your salespeople to build them back up means you have the wrong
people and wrong processes! It's not "that Internet thing" any more
than your cars are "those things that have engines and tires". It's
time to grow up and look forward. If you 15-pounder 15% of your customers, expect 50%+ of
your reviews to scream you suck.

If you want to look at things in a
nutshell, read another whitepaper about how great a solution is (6- to
12-months after it's relevant while you signed up to get marketed like mad by the
same company) and look backward. Our industry is depending on people who look
forward with only what's needed about past performance as indicators, nothing
else. Improve incrementally prior to making the huge, sweeping changes like we
hear about so much and maybe, just maybe, you'll see about 3-4 months that the
big stuff is not so big after all because you were able to move the needle
consistently. Overnight success is a short-term facade over impending disaster.
Count on it.

2013 can be great for many, even
amongst the raising concerns about economic and other pressures. The best
always raise to the occasion, it's just that it needs to be done in newer ways
more consistently. And remember to make changes with anything that you do by
benchmarking and recording first because so many will pull the wool over your
eyes and scream "we did it for you!". We see it every day. There are
some great dealership partners out there. Remember that opportunity is missed
by most because it comes dressed in overalls. It's work and most of the time
it's slow.

So relish in the success you've had in
2012, you deserve it! At the same time try not to look back all that much. It
will take longer to catch up than you realize. The automotive world moves at
the speed of retail. That is the only truth. So stop slowing yourself down more
than needed.

Much success in 2012 and thanks for
continuing to read…

 

Best Practices: Professional
Insight, Powerful Results

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December 29, 2012 by Gary May 0
Tricked Ya! Been Here The Whole Time…

So it's been eight weeks since the last post. It feels like an eternity. But it's likely been longer since the companies and people your business depends on have done something for you either. Was that the point of my hiatus? Not quite. It's been incredibly busy here as our client list as well as staff have grown. It has, however, been a great experiment to get requests to start posting again and watch the analytics. But not to worry, everyone else has had your back. Tricked ya! Well, maybe not…

So anyway, how has 2011 started for you? Chances are things are not much different unless the recent NADA and Digital Marketing Strategies Conferences are now on your "I've attended them" list. For the thousands of dealers at NADA in San Francisco, there was a significant buzz that has been absent for the past few years. For the fifty plus dealers at DMSC in Napa, the feedback has been tremendous and the workshop leaders are preparing…wait for it…for FOLLOW UP webinars with the dealers. That will be a first, and something I've been asking event promoters to do for four years (even recommending it to four event heads in the past eight months). Tricked ya! Nope, that's never been done before…

So change has been in the air and it seems that some of it is actually sticking. The dealers that have been ignoring the screaming and yelling have realized that this can be their year by achieving chunks of change consistently. Yeah, you can still hear "it's still about blocking and tackling!" and "it's back to basics for us!", but it's been the most refreshing eight weeks to get calls, emails, tweets and Facebook messages asking for change. Even from some otherwise typically content business owners and managers. Tricked ya! Well gosh, comfortable is not so much anymore…

So, more impotrant that what our small band of ambassadors think…what has been happening for you, your teams, your store, your community? What have you already achieved this year that you want to share? And what will you do to move our community forward? The dealers MUST participate in greater numbers than ever (even though that's not hard to achieve at all) to assist each other. So get your thoughts written down here…and make it count!

Tricked ya! Dealers don't really share on the forums and blogs… Well I hope you do…

 

Best Practices: Professional Insight, Powerful Results

February 26, 2011 by Gary May 0
Parting Shots, Starting Shots. They’re Not Too Different. So Get Real!

Chances are you've been on one of the many sides of this lately: Just moments ago I sent a Facebook message to a dealer, responding to my initial message after receiving a "friend" request from them on Facebook. The message in the middle, the one from them, essentially asked me to show them any Facebook language indicating that setting up a personal page for a business was a violation of their terms of use. That was in addition to their indicating that, after reading into it, a business page might be a "good option as they are more tailored to businesses".

Folks, for better or worse it's 2011. Being in business is not about turning the open sign to "open". Being in business means you are serious about it. That every part of your business is on the radar. That being as how nearly everything that you do away from the dealership is digital you should be doing it at your dealership. You can't be serious about it being half-assed.

If you communicate with your Internet leads 50% of the time in your ILM/CRM and 50% of the time in Outlook, you WILL get 50% of the results, not 100%.

If you make a serious effort to contact leads, customers, be-backs and more 50% of the time and spend 50% of the time shooting the s&*t at the water cooler, the point, the desk, the lot and on the web, you WILL get 50% of the results, not 100%.

If you do a relatively good job at scheduling appointments 50% of the time, great job 50% of the time, you WILL get 50% of the results, not 100%.

And if you pay attention to half of the new, relevant, digital information available to you and pay attention to half of the old school, down and dirty, blocking and tackling, back to basics, you WILL get 50% of the results, not 100%. If you are lucky….

You see, as we close one year and start another what you do, and not what you talk about doing, will dictate what you get. This is not rocket science. Stop ignoring what is right in front of you… What we're hoping for is that you get the message. And there's no cost or strings attached! Ignore the messengers all you want. Don't ignore the message here!!!!! Heck, there are plenty in our industry getting (and paying for) a much larger audience and covers of magazines just to tell you what you should be well past.

Yes, it is our job to do the job right the first time. Especially if you have the information and resources! Dealers making sure the coffee and pastry service is just right while ignoring their sales process? Nothing in the world is more akin to stepping over a dollar to pick up a dime. Yes, the customer feel good is important. But calls filled with a bunch of ahs, ers and ums with a bunch of I's to boot or sending someone an email blast 120 days after they bought with a payment $50 less per month for the same car will never take the place of a great donut and a latte.

And it will never take the place of having the best new-owner orientation in the city or even the state or region. Oh yeah, those went away when things got tough and have now been replaced by $5,000 a day "trainers" and $4,000 a month social media services. Man, someone has your number and they've been sharing it!

Our parting shots for 2010 are absolutely no different at all from the starting ones for 2011. A number of dead-on predictions for the last year were ignored by at least 95% of the industry. Will an increase in sales for the majority of dealers in 2010, and hopefully again in 2011, have people ignoring really solid insight and strategies again? Let's hope not.

Aside from the factory banging on you to punch cars so they can reach new sales levels (or try to save their year), January 1 is not the start of a new month or new year. It's the next day after December 31, when you'll likely be doing the same exact thing you were doing on June 16.

So get real…

Best Practices: Professional Insight, Powerful Results

December 29, 2010 by Gary May 0
It’s Cram Time. Were You Expecting It?!?!

Well if you didn't look, 2010 is nearly to a close. Last time you thought about it mid-year, it looked like 2010 would be clear sailing. Well, now it's cram time and you must be thanking the incentive and promotion gods (because they're on bid-time, even for the companies that usually don't).

So while the factory may have your store punching cars in a couple weeks and you may be planning that getaway you've deserved for a while, what are you going to do to surpass your numbers and go for broke? Will this be the time that you get serious about database management and using your CRM? Will it be when you take reputation management seriously and invite (yes, actually invite) your customers to participate in building your brand? Or is it simply time to get serious about following up with real intent on every lead?

Success over the last five weeks of the year will be partially based on history. All of it. Were you the type that waited until the night before finals to do an all-nighter? You know what you'll get before 2011 comes. Are you the type that starts with a bang and fades never quite committing? You know what you'll get before 2011 comes.

If you're the type that has gotten process down, approaches each day with complete opportunity, reads and participates in the fourms and communities, checks their performance against others (outside the store) and who believes that and acts like you are just another consumer, cram time should be a cake walk. You, my friend, are ready for 2011 already because you've already stuck to your plan for this year. Which, by chance, you most likely drew out at the beginning of the year.

For the rest of you, it's time to get serious. Really serious. Let's take a look at what should have moved business this year: Online. Digital. Web. Whatever you want to call it, Sales are originating from the Internet. How do you do that? The answers, yes answers, were available via a handful of conferences and by a number of the OEM's digital meetings. Did you go?

And we're not counting mandatory regional schmooze-fests, or webinars and other sales- and product-pitch based "information" sessions online nor NADA even though there are workshops. So let's assume, better yet guess, that around 6,000 people attended them (yeah, that's high). And assume that roughly 1.5 attended per store, with 30% attendance going to the independents. So around 10-15% of the franchise and 5% of the independent stores are learning. Ouch.

Based on those numbers, how can an industry hungry for sales really attack it? Cover your eyes 'cause here it comes: business as usual! How much have we progressed over another year when 2/3 of leads still are not addressed correctly and service retention is still lower than what it should be? So how many baseball bats will come out at sales meetings over the remaining days this year?

Cram time, when prepared for, is not cram time at all. Fear-based operation goes out the window. Management understands completely what is going on. Yes, including in the "Internet" department (ahem, why do we still call it that?). Cram time, quite frankly, should be what the customers do when they realize they'll be without that new (or newer) car for another year. They shouldn't be the ones smelling desperation.

So, were you expecting it? Are you prepared for it? Are you making it because of what you're doing or because your brand has television commericals with beautiful bows on cars, or radio spots yelling about year-end deals. If you're prepared, congratulations. If not…aren't you sick of it by now?

Best Practices: Professional Insight, Powerful Results

November 28, 2010 by Gary May 0
Resolutions? Who Needs Resolutions? We’ve Got WORK To Do!

It's no coincidence that by using the term 'resolutions' as
temporary markers, we're able to miss our goals and targets. In an industry
that's usually more comfortable with what worked 10 years ago, why waste time
with "I wish"? Fact is, by resolving to do something it means that
you're going to do it.

If you're lacking resolve, find someone that can help you with it. This is not
a plea for you to run out and get a shrink, not at all. Rather being resolute
about how you manage your business, as a GM or a sales person or a porter, is entirely up
to how well you plan your work. And when you think about the work involved with
your entire online presence, business and infrastructure, it's not about being
the 'do it all person'. That method will lead to disaster.

2010 will be a dividing and defining year, but not by the forces
of government intervention, the factory guillotine, lack of the 'perfect' new model or even that location you've been eyeing for years. It will be a year of the haves and have nots: either your 3 P's (plan, people and partners) will provide you with the better option or not. Here is the best starting point that we can recommend rather than spitting out another list of vendors, processes or simple recommendations that can be easily duplicated next door:

1. Where are you? Why are you there? Think about this in terms of where your greatest opportunities are for growth. Some things are completely transparent, like Google rank results, conversion rates and revenue per PO (just as examples) and some are not, like sourcing, third-party expenses and advertising in untracked media.

2. Who's with you and who's not? If you've not weeded out your staff in a while, you're lying to yourself. There is some huge talent out there that can not only move the needle forward, they can likely add some sorely needed spark and sizzle to the rest of the people that claim to love coming to work. 'Stick In The Mud' and 'On The Bubble' are not a fun games to play for two years in a row…

3. What changed that you ignored or missed? Usually a massive change in results comes from more than the other franchise having a stellar month while you tanked. If something big shifted, start with asking your customers, your prospects and those that opted to go somewhere else. The insight will do more for you that pulling the wool over your eyes. This is not a 'social media play', this is a 'get yourself dirty play'.

4. Do you have buy in? Another thing to consider is who's behind you. If it's not a majority or all of your staff voting on how things get done, it's time to be open. Not humor, Not simply listen. It's do or die time and if people don't think you care about them , they won't care about you. (hey, customers think the same way. wow!) The 1976 way of handling sales and staff meetings should be 86'd.

We could go with 'finely tuned engine' or something cheesy like 'firing on all cylinders' but you have to do the things that will really impact your business. Aside from that you MUST fire vendors that don't do their job and stop excusing poor performance.

Today a dealer talked about taking the bold step of letting a vendor go that was so far from doing their job. At a rediculously low price. For something the store didn't really think about. Tomorrow, they're going to take it in-house, spend more money, get the job done right and will likely see the results from their efforts…two to three months from now. What are you doing that, if you'd take five minnutes to think about it, doesn't make sense.

If you can't find anything that's broken, here's another recommendation: Walk into a non-automotive business and whatever you notice that absolutely bothers the $#&^ out of you, ask your employees to stop doing it and take suggestions from them to improve. Why? Because there's a 95% chance that your business is doing the same thing.

2010 is full of promise. There will be those dealerships that hit the ball out of the park. There will be those that barely get on base consistently. There will be those that can't even get the batting helmet on. There will be those that aren't even in the game.

Your chance is to own the whole frickin game…

Best Practices: Professional Insight, Powerful Results

December 31, 2009 by Gary May 0