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Posts with proposal tag.
Misunderstanding the Misunderstood (A Post-NADA Perspective)

Too often, we mix messages. We misconstrue. We miscount. And most often, decisions based off those actions lead to more of the same. There is a lot of “data” out there: actionable, validated, accurate data, and damaging, paralyzing, inaccurate “data”.

 

Last year IM@CS was fortunate to be involved with a Mercedes-Benz project around lead management and one of the talking points (not from us or our partners) showed the average customer in 2013 submitted a lead to 1.3 dealers. Not only has this been invalidated by at least a half-dozen companies, in speaking with the dealers themselves, the empirical data disputed that. The data. “Data” brought in by (maybe) well-intentioned parties however far from accurate, very far for allowing a proper action plan and light years from having the dealers make sense of it.

 

Too often, the OEMs, and admittedly dealers, are lit up by flashy bids, mesmerizing proposals and the all-too-famous “we also have contracts with Competitor A and Competitor B” line or the notorious “we built the space/were first to launch this” verbal flatulence.

 

Another case in point: Last year General Motors rolled out an initiative for BDC build-out for it’s nearly 4,000 franchises. Good intentions, a little late on the “action bandwagon” (we spoke with GM about his in 2008 and 2009) aimed at mitigating the massive amount of lost sales due to lackluster lead response and follow up (read: all OEMs fall in to this bracket and have subsequently gone at solutions the wrong way). Enter two vendors for those dealers. Yes, two. Two vendors for build out and support of thousands of dealers’ BDCs. Then, the co-op curse, leading most dealers, due to “cost”, to not hire companies that can scale better, are more experienced (in real life, not on paper).

 

It’s time to stop misunderstanding the misunderstood! Who are the misunderstood? The agile, more up-to-date, active, often smaller guys and gals who prove themselves daily, weekly and monthly.  The misunderstood are the companies with great services, not great advertising and magazine cover shots. The misunderstood are the ones who deliver faithfully without contracts or gouging (why would a dealer ever sign a contract for services that must be measured?).

 

There is a prominent Internet/Marketing Director from the Midwest who, a couple months ago, posted on their Facebook page that their group was firing their existing trainer, and looking for a more progressive company that didn’t have an OEM contract. Why? Why? Why? Simply put, the services provided, as do most of the OEMs and the companies they endorse, couldn’t deliver for today’s market regardless of that company’s data!

 

The misunderstood are so titled due to the lack of willingness of dealers to get way from comfortable and, simply put, sell and service more cars. Its not your word tracks, it’s not your phone call scoring. It’s not your trainer that has to repeat him/herself each and every month and bring in nearly-duplicate reports. IF you don’t understand how something works, stops paying for someone to do it. Understand it.. Even if you find a partner to leverage, you’d better understand it.

 

The industry, by and large, still can’t respond to a lead effectively, completely and with a reason to buy in under a day.  We’re starting the 21st year of the Automotive Internet. You don’t need to know ode, you absolutely must understand why having a responsive website is a must. You don’t need to know how Facebook changes their algorithms, you absolutely must understand targeting das and dark posts. You don’t need to how Google leverages directories and local citations to leverage local search, you absolutely must understand how and where to update your information, links and phone numbers.

 

Best Practices: Professional Insight, Powerful Results

 

The Key To Everything? Customer Service (STILL!)

Customer service. The term is thrown out like freebies,
party invites, pitches and proposals at NADA. Customer support? Customer
satisfaction? Customer focused? What do your vendors call it? Does that come
after reviewing how many days or weeks they’re allowed after you open a ticket
for something that should be a 1-2 hour operation? Customer service should be
about the…wait for it, CUSTOMER!

What we call customer service has morphed over the years, likely more based on
scale, capacity, programming and software than the requirement to actually take
care of the customer. Very few businesses, still today, put the customer first
however their marketing screams service.

And not following any of the “blueprint” norms really comes
through. Does your website, SEO, SEM, mobile, call tracking and chat companies
really show an amazing zest for paying attention to you? And back you up? And
surprise you from time to time?

Recently my experiences with a couple airlines showcased, in
more detail, what happens to really separate customer service from promises of
service and marketing. With the changes that Delta Airlines has applied to its
SkyMiles program to qualify for 2014 status, the reduction of benefits for my
level (Silver Elite) of status including the amount of complimentary bags you
can check in (now one, so “bag” is more appropriate) and, seemingly, the
ongoing increase in SkyMiles it takes to book an award ticket, coupled with the
number of flights I’ve taken on Alaska (claiming Delta SkyMiles) over the past
couple years with great on-board experience the decision to switch programs
happened last month.

While I’m no social media superstar or influencer, Delta has
followed me on Twitter for quite a while and has, for the most part, responded
to my tweets and mentions whenever they happen. My tweets talking about my
switch to Alaska Airlines resulted in no mentions from Delta’s online teams
(including @Delta and @DeltaAssist) to keep me loyal, however Alaska Airlines
(@AlaskaAir) followed immediately and has mentioned back as well as sent direct
messages. And that is on top of the significantly better experience when flying
them.

On my last flight, Alaska’s ticket counter staff was fantastic,
accommodating my bag without question (my previous flight they accommodated
two, one more than Delta and I didn’t have MVP status on Alaska!). My bag,
which was checked in 32 minutes before the flight made it and the gate agent
addressed every customer when boarding by their first name. Class acts for sure
and to top it off, the counter agent matched my Delta status on Alaska
effective immediately; One person, empowered to make that happen, however the impression
and experience did so much more. With a smile on her face making me smile and
thinking about how to make our customers’ experience even better.

So what does this make you think about? Your investment, or
lack of, in customer service? Whether you have a satisfaction agent or not?

Many companies wrap themselves in customer service; however
when was the last time they paid you a visit entirely based on anything but a report,
pitch, upsell or because they were asked to?

 

Best Practices: Professional Insight, Powerful Results


Flipping The Light On: Life After The Pitch

You heard about them. You read about them. You phoned them. You had them in. You listened to them. You took the pitch. You signed the deal. And now, with services starting, either everything is the same as it was before……or the lights are on and it's kind of "ohh my my".

(Twilight Zone music in the background) You thought it would be different. You thought you knew what everything meant. You made that final turn…welcome, to real life after the pitch.

So what happened? Everything seemed fine. Well, what did you expect from adding the services? Did you write down your goals? Were resources already set aside to handle the new vendor? Was their customer service department part of the initial pitch at all? You know, the people that you'll call with questions and issues? Did you get an "out" clause or are you roped in tighter that a M3's engine in the space under the hood of a MX-5? Did you ever think "what happens if they don't do what they say they'll do?"

Let's face it, retailers want a fast, easy, painless, seamless, passive, snap-your-fingers solution. So why in the heck would anyone, unless they are offering an education with full disclosure in their pitch (read: NOT most vendors), tell you that they can't do what you need? It's so much easier to add modules and updates rather than focus on the effectiveness of a core product. It's a lot more fun, apparently, to fill up review sites with bogus users' glowing reviews than actually make it a dealership process to get recommendations. That's why dealers' investments fail and vendors fast profits are usually replaced with a shrinking client list over time.

Without question there are a few companies in the industry that are in a position to add to their product line. And because they can and are able to. Not just because they want to or are getting pressure from compoetitors. Can you find Nike golf bags, backpacks and glasses? Yup! If their shoes started sucking, those superficial products, as profitable and lifestyle "branding integrated" as they are, would be inconsequencial if the core product failed.

And, as a dealer/client, it's your job to turn the lights on. And that means ask the tough questions. Don't take the reports to heart, especially if there's no validation. When you turn the bright lights on, the cockroaches go running! When you have a partnership with your suppliers, guess what happens? Real growth, real education, real improvement. After the pitch should be the best part. If companies knew what was good for then, they'd pitch modestly and over-deliver. Now THAT'S a concept!

And life after the pitch should get progressively easier. Here's a great test and maybe something you want to try in 2011. When you start a new agreement with a vendor, ask for no more than 6 months commitment, maybe less if not month-to-month. After 50-75% of the initial period is done, indicate you're going to cancel at the end of the term and watch/listen to the response. That will tell you volumes about who you're doing business with.

Here's a few things to think about in your next (and likely soon) approach to new providers:

Ask:
1. How long have you been providing this service and who can I talk to about it?
2. What is your average turnaround time for support and completion of a ticket?
3. What hours does your customer service department work?
4. What is your after-hours/weekend customer service policy?
5. When was your last failure/cancelled client and what happened?
6. How many of my competitors to you currently work with?
7. How well does your service integrate with the system(s) currently used by my business?
8. Do you use internal or third party reporting of metrics?
9. Can I cut back on part or all of my services and what kind of notice do you need?
10. Do you subcontract and services and have you experienced service outages?
11. Is ongoing training or field support (not sales rep visits) part of your service?

Thinking about what your needs are away from how much more product and services you're being told you'll sell is critical. And go with your gut. If it sounds too good to be true (1,000 Facebook fans in no time, 200 glowing reviews per month, best sourcing of all customers of any ILM/CRM ever, increases conversion 20% every month for a year, sells cars for you 24/7, builds your client base while you're sleeping and more), it probably is.

And then there's the Golden Rule: Generally stay away from "#1 in (fill in the blank)". If you can see marketing from a vendor you are considering on every automotive network, in every publication, on every B-to-B forum and in your showroom (more often than you'd like), pretend you're a consumer –because you are!– and ask yourself this: do the best working companies in a vertical advertise everywhere? Are they screaming "we're number one"? Now, if you are always screaming "we're number one!" yourself, it might just be a match made in heaven.

Otherwise, for the rest of us, chances are there's too much focus on the frosting and not enough on the cake. Some frosting is so good, it can cover up what looks like a full, well-made, perfectly done cake. Remember that next time you simply grab the box and drive back to the office, thinking about how great everything will be, pull in, run into the store, flip on the lights and open the box. Ooh bummer…

Best Practices: Professional Insight, Powerful Results