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Logistics: I’ll Take “What Is A Dealership?” For $1000 Alex

Lo·gis·tics  ləˈjistiks,lō-/  noun

    1. The detailed coordination of a complex operation involving many people, facilities, or supplies.

We are in the game of logistics. Like it or not car dealerships, at a minimum, are hubs of logistic activities: connections to the factory and engineers, DMS uploads, inventory pushes and pulls, secure financial documents and transactions, lead migration, email and phone connections, server backups, marketing company, sales rep and little league treasure troves…it's dizzying.

Add to that the total of resources: staff, hardware, all the moving parts. And you want to put a 300-pound inflatable on top to make it look like a scene from a Chevy Chase Vacation movie. *burp*

A whole, as they say, is the sum of its parts. However some of those parts are more evident to the people you’re trying to attract: consumers. More important than ever is the media, availability/speed of information and communication we deliver to the public.

So riddle me this Batman: the most important part of your website is the:

 

  1. Template and main pages you reviewed two years ago with your website vendor that you get a PDF “report” from once a month and a visit with once a quarter, when they sell you more stuff.
  2. Inventory being online that you assume is feeding correctly with the automated “cheese” seller notes, not so robust VIN explosion/features and being syndicated to portals you’ve never heard f (although they’re fully disclosed in the document you’ve never read).
  3. SEO you’ve never checked on provided by the website or aftermarket company (that is ABSOLUTELY using spun content)…oh wait. What’s SEO? Yeah.
  4. About us video made a while ago showing some staff you still have employed inside the dealership before the new fascia when up

The answer is none of the above. Just like your dealership it’s the experience. Yes, it has to have what people expect however when’s the last time you met a customer, truly, that knew exactly what to expect. And that is, literally, exactly.

If you’ve not stopped, in a long time, and done a real deep-dive into analytics, feedback from customers and staff, taken more than a gander at your competition (which is everyone), looked and reassessed everything that has your name/brand on it and taken stock of actionable goals and roadmaps, you’re gliding on the rise in sales that’s taken place over the past couple of years now and are, still, not ready for what comes next. Get real about what you’re avoiding.

At the center of everything is a person, with a real need for attention, consideration, information, service, answers and solutions. We are in the logistics business.

Consider this again before you chat with your coworkers about Sunday’s games tomorrow with finite details and stats about passing yards, rushing yards, total years, carries, receptions, turnovers, time of possession, sacks, half sacks, quarter sacks and hurries…and then realize that’s the same level of passion we must exhibit and deliver on for every one of the people that give you the honor of walking through your front door.

 

Best Practices: Professional Insight, Powerful Results

If You’re Going To Do It, Do It Right…

The special time of the year is nearly upon us, again. From September through February: conferences, expos and 20 Groups with the veritable sales crunch of "you have to get this or you'll be left in the dust!" pitches. You can feel dealers' and general managers' certain body parts tightening up now (not that they aren't pitched every day of every week of every month or every year already).

With very little assistance, which is by choice, direction or information, vendors are chosen and deals are signed. Does that mean dealerships make decisions without "data"? Not necessarily. However decisions made with vendors' own calculators (remember when lead estimating in your market at certain NADA website booths was the fix of the day?????), skewed analytics/search results and by recommendations (you know, what works for a dealer with half the competition and market size one of their 20 Group buddies has should work the same for someone else in a major metro with twice the stores and massive gross degradation?).

What generates results are a combination of relevant data, unbiased information, support, updates and consistency. However what we still see dominating today are dealers using:

Websites:

  • Without any SEO (and sometimes even basic optimization), micro-sites/landing pages and SEM with no/poor call-to-action, heavily redundant non-inventory based content (which Google LOVES! right?!) and the like…

CRM:

  • The "take it as it came out of the box" processes and templates that can't get a call back from a desperate buyer, no management notifications set up, and people with access sending out marketing messages to dealerships' database that are not proper, timely or accurate…

Social media:

  • Left up to companies setting up personal profiles on Facebook, Google Plus, Foursquare, etc. for businesses and/or…
  • Duplicating content on hundreds of dealership social networks and/or…
  • Solely following industry people's accounts and them fanning/following back and/or…
  • Simply buying audiences gaining thousands of eyeballs while most of the paid followers are in different countries (or simply spam accounts)…

…and the list just goes on and on and on. 

If you want to sell cars, you have to do it right. Meet and greet, the walk, the drive, the pencil, the close (yes, the road to the sale to many) that can't exist without process, checklists, audits and accountability. Yet most dealerships' entire digital presence has none of those!!

What we need to do is do things right. Businesses are responsible for everything they do. It's 2012. If you don't understand websites and SEO, get someone that does in your store. Don't think social media is right for your point? Ask your customers where they want you to be and then get someone that does it in your store. And get advice before you hire your person/people or bring on the vendor! You must own every part of your marketing today and not turn a blind eye. And no, it's not too much to do or to get someone in the store or close to you to provide reporting that is not from a vendor's proprietary dashboard (read: manipulation) that can't be validated by another unbiased source.

There are no excuses for businesses today to not know how to do things right and expect results. Sending texts from employees phones without permission based marketing and legal/opt-out included? Having a website for a 150+ unit store that has 800 inbound links and no +1's? Promoting a blog that has the same content as every other (fill in your brand) store within a 1,000 mile radius? It's NOT fine. It's NOT ok. Get real.

Act as if you're a customer to your own business! What are the chances you'd return to your own website if the home page never changed? Would you buy concert tickets from a site that never featured your favorite artists? Would you Like United Airlines on Facebook if every other post from them was two sea lions fighting or two mimes fighting with an intro of "caption this"? would you follow Morton's Steakhouse on Twitter if EVERY post was simply a push from their Facebook account and no interaction with diners? Would you continue to read Marriott's blog if all it contained was posts about awards they were winning from magazines rather than updates on their resort locations that you wanted to travel to? Look it's really simple, it's just not easy.

Own your marketing. The pisser is you've been hearing this for over five years now from a number of sources in the industry including this one. Quit cutting corners and believing everything that the large enterprise-level providers are feeding you. How can one provider claim to be the #1 vendor in an industry and charge half of what everyone else does? It doesn't work that way! You know that…

Look at it this way. McDonald's (as good as some of you may think they are) is not number one in hamburgers. They are number one in volume! Do they serve the best burger? No! Their burger is not the best…and neither is your website/CRM/Social Media if you don't know better.

If you're going to do it, do it right!

 

Best Practices: Professional Insight, Powerful Results

Focus Daniel-san, Focus!

Focus. We all need it. Sometimes we loose it. Hopefully we get it back. Focus is what, along with goals and direction, on the path to success. Simply put we're in the business of selling products and services, backing them up, and maintaining relationships with those that bought the products or services.

Broken focus is what allows us to view the products and services that we buy as those that will sell what our customers will buy. Yup…long sentence. What does it mean? It means simply stop thinking that websites, CRM, widgets, gadgets, software/SAAS and all of the other stuff (including social media) sells cars and then makes people service them at your business. People buy from people.

Don't get me wrong, we're all about more efficiencies and lower costs through all the items above. But if you think for a second that you can forget about an up, any kind of up, you're dead wrong. Companies continue at a break-neck pace to promote their "two cars pays for our service"and "with our leads you'll sell 8.7 more cars more month".

People sell cars, people sell cars, people sell cars. The 'best' lead, scored by some company that doesn't sell cars, sold to you by a company spending millions to promote themselves with your money, with the most gross ever not followed up on is a floating, polished  t**d. At the same time, the 'worst' perceived lead from your overpriced third parties, let alone your own website (if your cars actually showed up on Google from your own website which most don't), is closed in a 5 minute call or three emails because the person was dealt with quickly, honestly and had all of their questions answered.

Focus on setting appointments. Appointments that are confirmed. That then show up. That then are handled right. That then are closed right. Because they nearly all come from your website or some displayed listing. Focus on what drives people to your store…you and your co-workers.

It's amazing the amount of dealers spending $20,000 per month or more to sell a few more cars (plus salesperson's commission, managers' cut, overhead and all the rest) because they're convinced that without buying what they're selling, they'll be crushed. Yesterday a meeting at a store revealed that, while the staff was asking for more leads, one of their marketing sources had about 20 plus leads that weren't touched. At all. Yeah, it was from service marketing. So I guess people that service don't also buy?!?!?! Focus…

Your website is there to get appointments. Everything online and in marketing outside of your website is intended to drive traffic to your website. To get appointments. Everything else you use to drive impressions and retention is supposed to eventually drive people to your website. Please don't fool yourself. Look at your analtyics. Yours. Google's. Not your website company's 'unique' statistics.

Please focus. Dealers (And everyone in business that is trying to grasp online), it's time to stop. And focus. We're trying to invite people to buy cars and maintenance and parts and accessories. As an industry we say that but it's not how we buy services. We buy because our buddy did, our competitor did, all of our 20 group says to and so on.

It's down to focus. Remember that Daniel-san could block, sweep and jump AFTER he focused on painting and all the other chores that Mr. Miyagi gave him. No distractions. Complete focus.

So focus Daniel-san, focus.

Best Practices: Professional Insight, Powerful Results

The Square Peg, The Round Hole and Public Opinion. How Can The Dealer Win?

The factory, the product, the media coverage, the recalls, the blitz of lacking and half-cooked information. When does the dealer get the coverage? When they're closing, exposed as corrupt or so-called environmentalists torch their lots. Welcome to the square peg and the round hole in the automotive industry, if not the perfect storm.

And who's to blame for the lopsided ego-train? Yes, the factory is guilty: plain as day. More than not, they treat the dealer like a flea on the 800-pound gorilla. But so is the dealer base. For the last couple decades, the dealers have waited for the new models, created mediocre-at-best, self-indulgent print and radio ads, greeted fearful (or at least resentful) customers in less-than-desirable locations and then wondered why they have the (earned) reputations they do.

With exception to the leaders in the industry, dealers have not done much to truly brand and distinguish themselves. Don't get 'yer panties in a wad yet: We're not saying that you don't impact your communities, gainfully employ many or that you don't feed tax revenue into your city's coffers. What we are saying is that the dealer brands have not matched, let alone eclipsed, the nameplate and that is sad. Today would be one of those days if you happen to sell one of two import brands…and we all know that the domestics have had their days as well.

There has not been a better time ever to build a sustainable brand aside from what the factory does. And wouldn't you want to do something different?!?!?! Have you paid attention to most car ads? Have you seen the POPs that are created for showrooms? You're better off putting one of those 40-foot high lizards or cylindrical men with billowing arms on your roof! Actually, please don't do that, 1986 called and they want their marketing back.

How does the dealer win today?  Start competing with the factory by becoming your own media. On the web it's more achievable for less money than you'd ever imagine, if you do it right. You might even start working with your customers and actually source, communicate and retain them successfully. There are some OEMs that actually want to take over your CRM and relationships but it's not because they can do it any better than the dealer can. Truth is it's not happening correctly at retail. This evening I was talking to a successful local dealer group that has one of their import stores source nearly every walk-up the same way in their CRM: simply click the first drop down choice. CRAP!

The foundation for winning is simple, it's just not easy: unbreakable processes, management from the top down, complete comprehension of systems and support and a die-hard commitment to the customer. If we don't do that, it's all for naught.

These are still very trying times in automotive (special mention to the banks!). Maybe we can all start by simply trying to keep ourselves from making it any harder. Start internally. Then make sure your 'home' is in great shape. Then concentrate on the customers. Then, alas, take care of the factory.

Best Practices: Professional Insight, Powerful Results