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Posts with provider 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


Accountability. Denial. Cover Up. A Losing Game.

We all come to proverbial "forks in the road" when it comes to performance, to delivering, to being reliable, to following up and ultimately to understanding what it takes to be better. There are mainly two types of being in business, away from the actual retail transaction if you look at things in very simple terms. Partnership and vendorship. They are both a state of being. Partnership is one thing: a cooperation. Vending is one thing: a delivery mechanism.

Over time all businesses play roles in one or both, likely both. While no person or no entity is perfect, it is in our best interest to actually perform to the best of our ability. It is also in our best interest to acknowledge what is done and undone. In a world where it is standard business to over-promise and under-deliver, when marketing trumps products and services, and reps and salespeople are most concerned with commissions or kickbacks, it is rare for someone to raise their hands and accept responsibility.

Recently I've had to experience both sides of the coin. One as a vendor and one as a partner of the client with another vendor. Watching, as we always do, from the outside, it is interesting to witness companies deal with requests (or demands) for products and/or services. We live it every day. Being first to accept responsibility no matter what. It's a fundamental approach to delivery and client satisfaction. Many argue with that philosophy. In the end, you end up reaping what you sow.

Nobody is wrong in arguing. It is natural to disagree. It is, however, wrong to stay in a position or unbending stance. No matter how comfortable we can become in believing what we vend is completely ideal, there is no such thing. And no company can profess, at least honestly, to no issues of dissatisfaction. This is another thing I've recently had to experience. It is a hopeful thing, just not achievable.

It is in all of our best interest to be teachable, flexible, to listen, ask and confirm as well as validate. In a partnership, these are musts. When these critically important things start to disappear and position is asserted, it is no longer a partnership. Companies need to understand that shouting in order to position or defending their position is detrimental. And not simply because it is being said here, but because most will say and acknowledge the simple fact.

So what do you want to provide? Many businesses seem to want to provide with the opportunity to partner. Some businesses seem to want to partner with the opportunity to provide. No cart or horse here. Not which came first. All of us want to prosper and profit. It is required to continue to provide services. But at what cost? It is true that you can't make everyone happy all of the time. But no business that has more than two customers has never had a squeaky wheel.

Over the next five months, when so much comes down to the pitch, the sell, the flash, the sizzle and the gorilla on the roof, it might just make a few vendors become partners if we all stop and recognize what we're doing this for. Customer service starts with a customer and ends with service. We must be accountable. If your service is operating at 60% efficiency, you might just find that your customer is 40% out the door. If you're paying attention. You can point at anything else that touches what you make, but it's still your responsibility.

Lack of accountability, denial or service, sweeping things under the rug and the like are just a losing game. Oh, it may take time. But it will happen. Businesses today want real. They need honest. They expect more. They deserve what they expect and definitely what they pay for.

Don't you? Act that way.

*No clients were harmed in the making of this post. But many are simply fed up.

 

Best Practices: Professional Insight. Powerful Results.

Crunch Time: Are Your Vendors out To Lunch? Or Are You?

It's very telling, especially today, when a supplier doesn't deliver.
Over-commit, under-deliver. While there is no such thing as 100%
delivery, 100% of the time when there are variables like creative,
interpretation, third parties and even technology changing at a
breakneck, daily pace. However the fundamentals should never change:
communication, expectation, examination and verification.

Being
around the automotive online space for over 10 years, it has been
common to be around or even directly involved with what you might call
"sales coups without production capabilities" or "sell it and then we'll
build it". Most of the time letting clients know you're building
something as they buy it is completely fine. Selling something as
complete or pitching services you provide when you really don't is
something else.

Over the past few years, it's been website and SEO services. Lately it's social media and reputation management. Two sayings to remember: if it sounds too good to be true, it likely is; stupid is as stupid does. In all fairness, the impetus is always on the buyer. While that's not completely fair, everything deserves a second look or opinion. For one example, recently we've been in meetings hearing about services for a few hundred dollars a month promising positive reviews on hundreds of sites.

Even without prejudice, it is difficult to understand the reach, impact or importance of a positive dealership review on some obscure website. About florists. Being read eight states away from you. By someone who has no interest in buying a car.

Numbers are great. Especially transparent ones via Google Analytics or something similar. It's also great to have a string following in the social online around your business. Having 40,000 on Twitter and 10,000 fans on Facebook, most of whom never have or never will buy from you, refer people to you or possibly even realize what your business does. That's irrelevant. People moving into your PMA that own a car from your franchise? Great. Likely a potential customer. Someone on your social network that lives 8,459 miles away from you because you're giving away something for free? Worthless.

What's of less value than that? The people and companies that are selling the services because you don't have the time to know and understand better, let alone put resources against it. And the fact that you can do it for $300 less a month than another company that can do it for you? And you call yourself a business person? Please. The other day at an OEM meeting, we heard about dealers paying $2,000 dollars a month for social media services. There are real companies doing a better job for half the price. Dealers paying $8,000 a month for that?!?!?! Let's not even go there.

This is not about the struggles with real ROI in the digital space. Or people not understanding services. It's not even about pushing companies out of the industry that will intentionally pull the wool over dealers' eyes (that would take years anyway). It is about taking charge of what you want to do in your business, having goals, comparing apples to apples and making sense out of the insane amount of pitches car dealers face.

Many times it's your vendors that are out to lunch. Sometimes, it's absolutely you. Question reps and consultants. Question proposals and marketing materials. Question your staff on what to do. Heaven forbid, question your customers and find out what they want and expect first. And stop buying for the sake of it, because someone in your 20 group did or because a golf buddy (that operates their store completely different than you do) told you they found the magic bullet.

Get back to business. It's crunch time…

Best Practices: Professional Insight, Powerful Results

A Season Of Events: Will It Be Boom Or Bust?

We're on the cusp again: in the next 90 days we're looking at events including DrivingSales Executive Summit, JD Power Internet Roundtable, Dealer summit, Synergy Sessions, Digital Dealer, Auto Training Events and more.  The more dealers that we hear from, the more we hear the same thing: "show me the beef!!".  What's the message?  Drive value for the industry, especially the dealers, or don't bother inviting me to the same old thing!

Today, more than ever, it's a "what have you done for me lately" world in retail.  Dealers need information, partners, cooperation, support and solid direction.  By the same token, dealers need to get off their duffs and start really using all of their tools.  Not buy more and do the same thing.  Dealerships that move forward will do so because they understand their market, their brand and their opportunities.  Not because a piece of software or the factory will just feed them customers all day long.

Our industry is filled with some great providers, vendors, consultants and leaders.  It's hard to know that when, for the most part, the same ones are featured redundantly wherever you look.  It is everyone's responsibility to ensure that, once you drop your two grand to spend a few days away from the dealership, a true learning and sharing experience is had.  Each session should be compelling for everyone attending and it should lead to change.

Here's a concept: event follow up.  If there's a session on social media and 250 people are in the room, everyone should have a follow up about 10 days later with a brief questionnaire, offer of assistance and a general "to keep on track" message.  Headed up a panel on mobile marketing?  Where's the text message thanking people in attendance a week after the event with a unique offer with a reminder of best practices?

And here's the hook: the speakers and promoter will do it for no additional fee.  Sorry overpaid (oops, nicely paid) folks, it's time to give back.  Without the dealers in business, it's hard to collect the "non-negotiable" $150-200 per hour.  Ready for another noble concept: the more customers we keep in business, the more customers we'll have.

SImply having a 'next event in the series' because you said you would is no justification for actually having one.  No doubt we all love to network, gallivant about with industry friends and colleagues over pricey dinners and drinks, hit some balls around on a course you don't get to do so normally and plenty of other arguments for the break from reality.

What changes dealership operations over a 60- to 90-day period is really what at stake.  Pushing the needle forward is an absolute necessity right now.  Speakers, vendors and organizers setting the bar, delivering on expectations and then making sure dealers can execute is the only realistic invitation to an industry starved for sales and results.

So will we be looking at one of these nicely-promoted events truly being a conduit for change or only a way from some folks to take home a profit (again) and some 'at a boy's?  The way that we've done things is not the road forward.  That's not the sole responsibility of the event promoters, but it would sure be nice if someone changed the channel…heck, how about changed a lot of minds…

A season of events: let's make sure that people take back more than photos…

Best practices: Professional Insight, Powerful Results

The Shiny New Tool Loses Luster: When The Belt Is Full

Come on, let's admit it. If someone launches a new tool, application, service, widget, doohickey, gizmo or gadget, we'll all explode. We are so full of tools, you likely feel like the Craftsman section at your local Sears…

Fact is we can probably expect more and that is what keeps pushing the bar forward. With the store closures, OEM staff reductions, agency layoffs and more you can likely look forward to more consultants, new software, increased industry service providers and just plain more 'stuff'.

And considering how most owners, GMs and GSMs buy stuff, there may be cause for more companies wanting to get their piece of a smaller spend pie because they're 'new, shiny, better, sexier or have great advertising'. Folks, we're not using all the tools you have currently, even if you don't really know how to use them in the first place (Ok, you can put all of your hands down because we know you haven't seen your so-called rep in nearly a year who promised the latest training you needed months ago).

More than ever, it's not about sticking with who you already have, simply saving a buck or not taking meetings with new vendors (excuses today are a penny a dozen). Simply put, you get what you pay for. If you are saving $200 a month between one service and another, you had better know what you're missing. If you're not investing in your staff's education/training (yes, I hate that word but the old guard will understand it), you might as well lower your unit forecast by 25-40%. And if you're not willing to take 'another meeting', you might as well hand a few extra dollars to your competitor down the street and take the rest of the week off.

Overwhelmed by technology? Don't ignore it, please! Don't understand something? Get a non-manager in your office that will use the tool/service and get THEIR take on it first hand, don't just give them a sell sheet and have them make a decision.

Over the next couple weeks, IM@CS is going to take a deeper dive into services available to the industry and write 'em up. We'll cover mobile, chat and inventory to start and see where it takes us. We hope to clear up misconceptions, especially around price since nearly everyone seems to be completely misguided on saving a buck versus being more effective. And then we'll try to take it from there…hope you get to use the information in profitable ways!!

Best practices: Professional Insight, Powerful Results