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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
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

September 18, 2009 by Gary May 0
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).

June 10, 2009 by Gary May 0