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Manipulation: Not the greatest form of flattery (Stop It!)

Nobody looking from the left, not a soul peering in from
the right; so it’s done. Manipulation. The to do, the call, the email, the
touch…you know, the BS-logged activity. The stuff that’s done just to get the
heat off, clean up the CRM and get back to going the same pace of “lead
management” and selling (the same amount you always do).

So why do we do it? Why is it allowed? Are we that far
removed, today still, from accountability in the Internet departments of the
automotive world? Sure. Nobody really
knows how to monitor, let alone want to, so the scheming goes on. And the
units? They go somewhere else…

To quote Scott Straten: Stop It! Stop It! Stop It! Get real
about managing your leads and quit killing your dealership. Not only are you
not flattering your management and owner, you’re making the investment in the
software to assist in the process and closing your sales heavily irrelevant.
Want to make your ratios? Then do the work! Too many leads, stop begging for
more!!

Manipulating your tasks or your leads has an impact on your
dealership akin to giving your child an empty box for their birthday. Nothing
good can come out of it and they’ll eventually look somewhere else…

Not to mention, manipulating your CRM simply makes you look
bad. Period. Create processes and systems to ensure that the leads are touched,
every day, with rare exception. It’s a lose-lose that is unacceptable.

Management, take the time to completely understand your CRM.
In addition you must audit regularly, conduct one-one-ones and manage your
store’s Internet hand-raisers no differently than your walk-ins, referrals and
service customers.  Just because you
can’t “see” your customers doesn’t mean you treat them any differently.

What does all this mean? Manipulation in sales tracking just costs too much. So get
real, change/add processes, counsel with management, spend money on an
assistant…do anything other than fudge it.

 

Best Practices: Professional Insight, Powerful Results

November 16, 2012 by Gary May 0
NADA Time: Start Operating Your Business As Yours Or Someone Else Will

More often than not, businesses are left to turning part (or all) of their operation over to vendors and partners with the reasoning that they're not able to "do everything". In automotive retail the de facto excuse you hear usually has something to do with how selling cars is what gets done and nothing else matters. Well, it's 2012 and everything has to do with selling cars.

News flash: It always has been so.

More likely than not, as we're upon the National Automobile Dealers Association (NADA) season, hundreds if not thousands of dealers will leave with contracts signed, or nearly signed, convinced that simply punting their responsibilities over the wall is the best way to get 'er done. Fact is nothing is further from the truth.

Dealers must grasp a much more realistic perspective of controlling their business through action, education and accountability or they will absolutely have it taken over. And nobody is saying that's a bad thing, in the event that a business has no desire to be "in" business. While a $6M dealership may not scale, invest, market or operate like a Fortune 100 business, but there is not a single reason why it can't approach and plan business in the same way or using the similar methodology.

A few things to keep in mind as we go into the NADA conference this coming weekend.

  1. Assess your dealership's needs and gain consensus from your employees on what to return from the conference with
  2. Plan 90% of your schedule via expo and workshop schedules, focusing on must-have meetings
  3. Schedule meetings with critical existing and vendors and check out their competition
  4. Talk to as many dealers as you can outside of your 20 Group, in the booths you visit, about what they're doing and not doing with the vendors you're visiting as well as haven't considered
  5. Look at vendor and supplier reviews on Google, forums including DrivingSales and other reliable sources
  6. Ensure the viability of vendor/product deployment in your store prior to signing any agreement
  7. Talk with existing/new vendors after the conference again, prior to accepting any new agreement

 

While the above steps are no guarantee against "being had", it should at least put some steps between a mediocre quick decision and a thought out beneficial one.

Areas that seem to be gaining traction and popularity that don't make sense include:

  • Reputation management: services that promise hundreds, if not thousands, of well-deserved gleaming reviews from consumers that just haven't provided them to you. Garbage! Consumers see through it faster, better and more than Google does. Start expecting your staff to obtain reviews when selling or servicing products and ensure a process is in place. Some staff members don't want to do that? Let them go or simply hand over the keys because you're not leading a dealership…
  • Social media: services that promise hundreds, if not thousands, of fans simply because you're a car dealership, with "caption this" or "tell us what you think" on nearly every other post sprinkled with inventory or incentive specials don't say "great place to buy" in the least. If a great Facebook, Twitter or blog presence means 2,000 likes, followers or readers and not more than 3-4 comments, shares, retweets or +1's, you're likely being had. Nobody wants to go to a dealership Facebook page to play Asteroids or Bejeweled 2 and write a title for a photo showing two dogs dressed up as superheros chasing each other, let alone find a tab that doesn't work (for months).
  • CRM: services that say their great, train your staff for $5,000-10,000 a day, put in standard templates and tell you to look at reports to create accountability need to start traveling with the Dodo bird. At the same time employees not using CRM for any reason need to pack their neon-green Hulk baggage and leave town as well. Get real, negotiate agreements, expect your account person to visit regularly, get all of management to use the tools and then expect everyone else to in the dealership. If utilization of CRM is under 75% in your dealership, get your vendor to start acting like a partner and put sales and service staff on the bubble. It's not a choice, it's a reality check.

There will be a lot of fanfare, parties, speakers pitching and snow jobs at booths. However, it's in everyone's best interest to see through the smoke and put the rose-colored glasses down. Our entire world is digital, mobile and fast. It's time for 17,000+ franchises (and who knows how many independents) to get so as well. Leave the hook, line and sinker at home, ignore the playmates for as long as you can and get real with your business.

There is a boatload of opportunity for those that want it in 2012 and NADA happens to be a great place to kick it all off or continue down the progressive road if you've already started. It's also where tons of dealers get sucked in by nothing more than marketing and get nothing for their hard-earned cash except for an open liability door.

So go with purpose to NADA. Come back and operate your business properly. Or someone else will take it from you. All of it.

 

Best practices: Professional Insight, Powerful Results


January 29, 2012 by Gary May 0
Customer Relationship Management: It’s The Message, Not Software That Sells

Three vendors, multiple pitches, agonizing internal conversations, budget decisions, integration, contract, training and the big fat check (every month). Now: simply turn it on and have it send messages for you and you win! Right? Wrong!

How in the world are we continually convinced that a solution 'in the box' is the right one for our multi-million dollar businesses?  Are most dealers now buying software and technology the same way that we've bought DMS for the past 20 years?  We have Dell build our own laptops down the finest detail, change the covers on our cell phones so they're more 'us', put 20's on our otherwise stock cars, and wear clothes that says 'me'. But we send out messages to everyone that's the same and expect them to respond, let alone come in, buy and refer? What a joke!

Here's a clue: if it takes more work and you don't see the results immediately, you're probably heading in the right direction. Why would you send a message (email, text, direct mail, etc) to someone that has a F-150 XLT from your store an offer for a $29 oil change that has small print disclaiming the offer is for 4-cylinder cars? How about sending someone that just leased a new Lexus IS250 from your dealership three months ago an offer that's $40 less per month or that has $1,000 less drive off for the same payment?

If you want to use CRM, treat it like a CRM tool by segmenting your customers in your database, updating regularly, creating different campaigns (start with something difficult, let's say like whether they're male or female) and start with unique messages and offers. It might even work!

Do you use your CRM, an eNewsletter and a company that markets specifically for declined service follow ups (if not more vendors)? Since you've created your own mess, at least hold each vendor responsible to running consistent (non-concurrent) uniquely-branded content that offers readers something that they won't likely want to ignore. What's meant by ignore? If you statistics show supposedly great open and click rates and you don't see a relative increase in traffic, people are likely ignoring your messages.

Have you started using social media as a CRM avenue? Think about it this way: do you believe that you have more customers opening your newsletter (with the same content as everyone else in your PMA) or using Facebook regularly? Don't answer out loud, but why don't you put your current, and archived, newsletters with a link on your Facebook Fan Page and every time you update, all of your followers get it in their feed and emai?

Instead of spending $10,000 a month on direct mail with a 2-6% open rate, send them via Twitter, Facebook and Plaxo for practically $0 and schedule the offers to be sent on specific dates, specific hours and with exact details. Considering that likely under 5% of direct mail is actually integrated into all marketing, your social media CRM efforts will pay huge dividends with less effort. Remember not to forget the most important part, the message.

If you believe that Customer Relationship Management is still about advertising, be prepared to have your (rear end) handed to you by more dynamic, engaged dealerships that have embraced the digital CRM revolution in addition to their CRM software. If the emails you send out to leads don't even have a link to your favorite reputation management site, links to your social media profiles and at least a 'why to buy' item like an intro video or photos of the car they will likely buy, you need to stop and really think over your CRM plan.

Treat Customer Relationship Management as its name implies rather than the 'other' CRM: customer-regardless mumble-jumble. Oh, and one more point: never stop asking questions. It's what you do when you stop talking and start listening.

Best Practices: Professional Insight, Powerful Results

November 1, 2009 by Gary May 1