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It’s Here - AutoSuccess Best of the Best NADA 2010, page 4
January 2010
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marketing solution
sales & training solution
leadership solution
feature solutionJanuary 2010
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By SusanGivens
TimJames 10 WHO SINGS YOUR PRAISES?Creating ‘Evangelical Customers’ Who Spread theGood Word About You
WINNING DEMONSTRATIONTomHopkins 28
WANT SUCCESS IN 2010? STOP PLAYINGMIND GAMES
MattBaker 26
TedRubin 24 THE FIVE CHARACTERISTICS OF A‘GREAT SALESPERSON’
DrakeA.Baerresen 30 AND, FOR OUR NEXT EVENT...
10 TIPS TO IMPROVE INTERNETRESPONSE TIMES IN 2010
MattWatson 22
MarkTewart 25 THE MARKETING AND SALES GENIUS OF HOWARD STERN: BUSINESS LESSONS FROM THE SHOCK JOCK
THREE LEVELS OF A CAR DEALER’SSOCIAL MEDIA STRATEGY
J.D.Rucker 18
DON’T FEAR ONLINE NEGOTIATIONTonyClark& BernieMock 32
DOES HOW WE LEARN IMPACT HOW WE BUY?KirkManzo 20
JohnFreund 14 PAY YOURSELF FIRST
THE TOP SIX TECHNIQUES FOR MORE EFFECTIVE USED VEHICLE SOURCING
DalePollak 08
JustinDuff 16 FIT IS ESSENTIAL
Have you ever felt like you were mak-ing little mistakes that are costing you tons of money at your dealership? Do you feel like there are hidden profi ts in your dealership that are just waiting to be uncovered? If you are like most dealers, the honest answer is, YES, Absolutely!
It’s a shame for YOU not to make more money, when these dealers do it so easily…
Our association with Tewart En-terprises has been nothing short of extraordinary. Our sales volume increased over 30% in the fi rst sixty days of implementation. More importantly, our sales gross in-creased an average of over 68% over the fi rst fi ve months of imple-mentation. The bottom line result was an increase of over $350,000 net to the Dealership Operation. I have used many sales systems over the years and none of them have ever provided the success that we are experiencing with the Tewart System.
Walter Alfaro, GM Perry Ford
Our grosses went up 30% on the front end, and we added almost 50% in the back end. The best part of that is that our sales also increased over 25% and continue to increase.
Gary Minneman Jr, GMSunshine Toyota
Working with Tewart Enterprises is different from other consultants and trainers. We are getting results with very satisfi ed customers. In addition, Tewart Enterprises Inc is helping us to make our entire business more
sound. With years of successful ex-perience, this team is innovative and up-to-date presenting fresh ideas to keep up with our ever-changing business. I would recommend Tew-art Enterprises Inc. to anyone who wants to improve their business.
– Doug MathersRusswood Auto Center, Lincoln, NE
My name is Mark Tewart and I am the President of Tewart Enterprises Inc. For almost two decades I have been helping dealers fi nd hidden profi ts and correcting little mistakes that were costing those deal-ers hundreds of thousands of dol-lars. These almost-magical solutions turn little mis-takes into instant cash machines of bottom-line profi t.
Because I have not met you and do not know anything about your dealership, I can’t say how much money is being left unrealized at your dealership. However, I can say FOR CERTAIN that the number of dollars is substantial and would shock you, if you knew.
There are a few things that every dealer should be doing to make money, especially in this economy.
The Great News is that I have identifi ed those little mistakes and have big solu-tions for them. NO BS, just real measur-able results that start happening immedi-ately and I guarantee those results.
• Sell more vehicles without spending
$1 more on advertising• Increase your gross profi ts any-where from $300 to $800 a vehicle• Make an extra $100,000 or more in your service profi ts in 90 days or less• Double and even triple your sales and service customer retention• Double your appointments and sales conversion from Internet leads, Web site leads, third party leads • Increase your F&I Product pen-etrations by 25% immediately• Discover the one secret that will make your dealership an additional
million dollars or more over the next fi ve years — We have several clients who have already experi-enced this and it will make the hair stand up on your neck when you hear this.
Call 888 2 Tewart (888 283-9278) or e-mail [email protected] to schedule a private and confi dential interview.
***We will share candid and specifi c information that will prove to you with-out a doubt what I am saying is true. You will see real dealer examples that support these results. Because of time constraints, there will only be a limited amount of dealers accepted into this program.
P.S.: To receive the FREE Special Report “New Generation of Selling” e-mail us at [email protected] with New Generation in the subject line
There are a few things that every dealer should be doing to
make money, especially in this
economy.
Engaging More Customers With Video
www.autosuccessonline.com
08
DalePollak
THE TOP SIX TECHNIQUESFOR MORE EFFECTIVEUSED VEHICLE SOURCING
sale
s&tr
ain
ing
solu
tion
Last year, dealers experienced an
unprecedented phenomenon: diffi culty sourcing used cars. To be clear, there was no shortage of used cars, but rather a tightening of supply and a wholesale market that rose faster than the corresponding retail market. The result was that dealers found it very diffi cult to buy used cars. It is likely that this condition will continue, and even worsen, this year.
There are, however, several strategies that dealers can use to ease the problem of sourcing used vehicles. First, dealers can and should expand the horizon of vehicles they will consider stocking. There are always segments of vehicles, in particular makes and models, which are available at more reasonable prices than others. Often, however, such vehicles are either not recognized as such, or otherwise excluded because they are not vehicles that the dealership has sold in the past or is consistent with their new car franchise brand. By simply expanding the set of acceptable vehicles for consideration, dealers will have more choices and opportunities. The most current technology allows dealers to identify these types of vehicles, as well as where they can be sourced. Remember that when you have market knowledge that is not commonly shared — and you can act upon it — that constitutes a true competitive advantage.
A second strategy that can be employed is to expand the sources of acquisition. Most dealers use a small number of local auctions. While these locations may continue to be useful, they do not provide dealers with the maximum number of choices and opportunities. This means that dealers may have to undertake the burden of traveling regionally or potentially even nationally to fi nd the vehicles they want at the prices that are right. The technology of online purchasing can ease the burden of using distant auctions. Every dealer should invest the necessary time to properly identify and learn about the available tools to purchase vehicles online.
Having expanded the types of vehicles and number of auctions, there is still much more that a dealer can do to source vehicles more effectively. For example, the dealership’s appraisal process and win rates (look to book) become critically important. Today, the appraisal process takes on the added dimension of importance as a sourcing mechanism as well as its traditional role as a deal maker. Dealerships should review their process of appraising, win rates and even manager and salesperson incentives for achieving superior performance. Remember that salespeople become sourcing agents for the dealership every time they encounter a customer with a trade. Properly managing the appraisal process will result in both more sales as well as more trade-ins for reasonable prices.
There is still more. However, to go further requires challenging long-standing dealership management practices. The fi rst such approach is to reduce the amount of expected gross profi t necessary to justify the acquisition of a vehicle. Most managers won’t justify the purchase of a vehicle unless they can foresee at least a $2,000 profi t. Often, the wholesale going price of the vehicle is $500 to $1,000 more than what the buyer thinks it needs to be. If they were to pull the trigger it would mean that the profi t opportunity might only be $1,000 to $1,500. But the choice is not between purchasing for an expected profi t of $2,000 versus $1,000 but, rather, a choice between $1,000 and nothing. There are simply periods of times in markets that call for temporary adjustments in expectations and changes to traditional beliefs and practices.
Just to turn the temperature up even a bit more, I am going to further suggest that dealerships re-think the amount of their pack. Packs cause buyers to expect to purchase vehicles that allow them to make expected profi t plus the pack amount. This creates an even greater perception that cars can not be purchased for reasonable dollars. Once again, there are moments in markets, and this is likely one of them, where adjustments
to past practices should be considered to maximize the opportunity that exists.
Whether or not a dealership adopts any or all of these suggestions, it is a certainty that sourcing vehicles will continue to be of great importance to used vehicle operations. The amount of time necessary to identify the hottest vehicles, understand what price to pay, locate their sources of sale, and execute their procurement will be greater than ever. It is also a certainty that traditional used car managers have more to do than ever with fewer resources. This is an organizational problem that further impairs the dealership’s ability to source vehicles. I therefore recommend that dealerships provide used car managers with the assistance of stocking analysts. A stocking analyst can do much of the computer legwork of identifying vehicles and the locations where they can be sourced. They can even create appraisals in order to know how much can be paid for each vehicle. Such an individual doesn’t have to be highly compensated, and may likely already be on the payroll. They simply need to have strong analytical ability and a general sensitivity to the used vehicle marketplace. Once the work of the stocking analyst has been performed, the traditional used car manager can review and approve the stocking plan and purchase recommendations prepared by the analyst. Such an approach facilitates aggressive sourcing and allows traditional used car managers to focus on all of the other critical tasks for which they are responsible
The bottom line is that the market is creating new challenges. Dealerships must respond with new thinking and solutions. There is no doubt that the new challenges in sourcing can be overcome — there just needs to be a willingness to do so.
Dale Pollak is an author and the founder of vAuto. He can be contacted at 866.867.9620, or by e-mail [email protected].
www.autosuccessonline.com
10
TimJamesm
arketing
solu
tion
WHO SINGSYOUR PRAISES?Creating ‘Evangelical Customers’ Who Spread the Good Word About You
When faced with a problem that only an
expert can fi x, everyone feels vulnerable if we don’t know an expert who’s responsive, experienced and reliable, and who we know will give us a fair price in exchange for quality service that they stand behind.
Let’s say your family doctor says you need a knee replacement. Unless it’s an emergency, it’s not likely that you would drive to the local hospital and ask for the next available surgeon. You would probably spend a few months getting mentally ready, but unsure how to research surgery options, surgeons and facilities. Feel the anxiety? Many people feel the same way when buying a car.
Now, suppose a colleague had a knee replaced last summer. She can’t stop telling people about how wonderful her new knee feels. She talks about her doctor like he’s a god (regardless of the actual qualifi cations of the surgeon). She tells you about how the physical therapy facility sent a van, so her husband didn’t have to take off from work three times a week to drive her. And, when you share that you need your knee replaced, your colleague earnestly responds, “You need a knee replacement? I’ve got a guy who’ll fi x you right up! I’m walking three miles a day!”
I’m sure you know a “guy” in the car business, too — the industry veteran who seems to have a lock on your local community. Everybody in town, maybe even your uncle, buys their car from this guy. Forget “taking ups” or prospecting using the CRM; he has a large book of customers that he sends birthday cards to and always seems to have people referring him business.
Wouldn’t you love to be the “guy” to your customers? What does he know that you don’t?
What every guy knows how to do is create what marketers call an evangelical client, a customer who enthusiastically promotes their “guy’s” business, product or service through word-of-mouth without solicitation. Evangelical customers feel great reward from helping both the person in need and the business they are promoting. They enjoy that, because of them, others are having the same successful experience they did. They believe in a better world and this is one way they contribute to it. They feel their community worth is enhanced with every “convert.”
An evangelical client is the ideal customer for several key reasons:
• He genuinely likes you and wants you to do well.
• He is willing to pay more because you offer the whole package (decent product, fair price, you’re here to stay and that certain “guy”-ness).
• He wants to help others, and that motivates him to tell others about you (that also makes him credible).
• He is a not just a happy, repeat customer; he is a walking testimonial, working for you without compensation.
• He refers “softened” customers to you, meaning they’re already sold on essential intangibles like trust, reputation and fairness before they walk into the showroom.
• He sends you more business than your brother-in-law.
Priceless, right? You bet. We should all be so lucky — and we can.
How Do You CreateEvangelical Clients?
• Be Trustworthy — If your mentality is that every deal is a notch on your quota bedpost, customers’ radar will go up, and they will get a sense that they mean nothing more to you than cash. The only customers you will attract in that case are the ones looking for the best deal; in other words, they’ll be using you, too. Voluntarily ensuring transparent, win-win transactions will build trust and pay out far more in the long run.
• Treat Every Customer Right — Put yourself in their shoes and do whatever you can to meet their needs. Every once in a while, exceed their expectations, like the van that shuttled your colleague to physical therapy appointments.
• Care About Your Customers — Keep notes on every one of them, including the names of their spouse and kids, birthday, anniversary, hobbies, etc. Take a photo of them with their new car and create a scrapbook with their testimonials for prospects to fl ip through on your desk.
• Be Human — Show your personality. Create a photo montage screensaver of your family. Whatever your hobbies, put evidence of them on your desk to help you connect with your customers on a personal level. That connection is imperative for the evangelical customer.
• Be Personal — If technology is removing so much communication throughout the buying cycle, how can an auto sales professional become the “guy?” The exact same way the “guy” became the “guy” before all of this
wonderful technology. Take the time to truly get to know your prospects and communicate with them (utilizing technology) throughout the buying cycle and beyond, even if they do not buy from you. Let your CRM do the work of the follow up, but know what “work” it is doing. Know what each e-mail says, and follow up with your own personalized e-mails and phone calls. Get out and become a positive part of your community.
• Be Grateful — Stop and appreciate what they’re doing for you and actively thank them. Write thank-you notes after every referral, whether the deal closes or not. After they’ve sent you a few customers, send them a small but highly meaningful gift, like if your customer likes to fl y fi sh, send them a dozen hand-tied fl ies. Show that they mattered enough for you to remember something important to them.
• Be Humble — Ask them how you can improve and listen carefully to their ideas. These people like to feel needed and helpful. They will appreciate the opportunity to better the world. Even if their suggestion is something you already do, don’t dismiss the idea (instead, look at how you can better create consumer awareness around that service since your best customers don’t know about it). Appreciate that they took the time to think of an idea and be honest with you.
• Be Responsive — When an evangelical customer calls, answer the phone. It’s usually important. In fact, it’s usually a lead or a complaint. In either case, it’s important that you’re on top of it.
Remember, as passionately as the evangelical client sings your praises, he can also ruin your name in his circle of infl uence, and do so with that same passion. Remember, he’s out to create a better world, and if that means people should avoid your business, he’ll freely tell them to do so. To him, spreading a cautionary word is just as helpful as a recommendation.
The good news is evangelical customers are naturally forgiving people. Should something happen that causes them to slip out of evangelism or fl ip alliances, go back and work toward renewing your relationship. They’re worth it. Just ask any “guy.”
Tim James is director of sales of HomeNet Automotive, Inc. He can be contacted at 866.924.6573, or by e-mail [email protected].
Over the past two years, online video has captured the attention of marketers, online retailers and, most importantly, consumers. As few as fi ve years ago, video was an expensive, labor-intensive medium that required serious bandwidth and professional production. That’s all changed now with increased broadband penetration, easy-to-use online video publishing software and tools, and additional technological advances. Today, everyone is talking about the marketing implications of video, stressing the importance of video and citing consumer viewership of, and preference for, online videos.
When properly executed, video drives more Google search referrals, more time spent on Web sites and more leads. While some vendors try to exploit YouTube loopholes to produce video search engine optimization (VSEO) results, Dealer.com has built a comprehensive VSEO program designed to drive traffi c back to the dealership’s own site. A recent study of Dealer.com video statistics found that form submissions on Web sites with video were 130 percent higher than sites without video. Further, consumers spent 20 percent more time on Web sites that included videos. In addition, Google search referrals increased up to 208 percent on sites with video. While Dealer.com can export inventory videos to YouTube, search referrals from YouTube have shown a referral rate that is marginal, at best, and should not be considered the cornerstone to any VSEO program.
Video is proven to generate more leads because it helps attract and engage more automotive shoppers online. According to additional Dealer.com research, 97 percent of online shoppers who view one video are more apt to watch two or three. Additionally, the more time consumers spend on a Web site, the more likely they are to submit a lead. Why? Because video provides an emotional connection for consumers and creates excitement, and consumer excitement for a product increases the likelihood of lead submission.
In addition, video allows branding and differentiation opportunities while providing a unique and professional 24/7 sales pitch. You can showcase your dealership’s personality while making a human connection with shoppers online. Providing links to vehicle videos in outgoing e-mails is a great way to distinguish your dealership to consumers who are shopping multiple stores, and also increases the likelihood that customers will visit your Web site.
Make a Plan: Set Goals and Measure SuccessIt’s obvious that most dealerships can and should benefi t from the use of video. But before doing so, dealerships should fi rst determine the goals of video relative to the overall marketing strategy. Those who do will have more success than those who merely begin posting videos just because everyone’s telling them to. If you don’t discuss goals, how will you know if the video is successful? In the hype and hurry to push video into the marketplace, many well-intentioned dealers skip any video strategy discussion and move directly to production and placement. Video is a tactic, and like all other marketing tactics, the value is maximized when it’s a part of an overall strategy.
Key Questions to Answer Before Creating and Posting New Videos• What are we trying to achieve, and how is it tied to our overall marketing strategy? • Who are we trying to reach and what appeals to them? • Based on our goal, what metrics will we use to measure success or failure?• How often will we evaluate metrics to determine which videos meet their objectives?• Which provider has the best quality video offerings to represent my dealership?
Getting StartedOnce you have established goals for your dealership videos, it’s important to determine the most effi cient way to create and post them. Start by talking with your Web site provider. They should be able to assist with creating and posting vehicle and other dealership videos. The best providers will be able to help you post high-quality vehicle videos of your inventory within a few days, if you’re just beginning. If you already have vehicle videos on-hand, your vendor should be able to help you publish your inventory on your Web site within hours.
Set a high standard and aim to create unique videos for every car in your inventory. Extensive inventory videos increase your Web site’s organic search engine rankings and make the dealership look professional.
If your video provider isn’t also your Web site provider, they may push you to post videos on third-party sites because that is the only way they can claim SEO value. However, using a single platform for Web site and video increases SEO value for the dealership’s own Web site, in large part by linking search results directly to inventory on the dealer’s site. This way, videos can be fully integrated with SEO best practices applied throughout the Web site.
In Addition to Unique Vehicle Videos, Personalize Your Dealershipwith the Following Videos:
• Welcome video from the president, CEO, general manager or other spokesperson • Videos of personnel, including key managers, heads of departments and staff members who
shoppers will meet in person at the dealership• Videos of current specials and promotions• Community involvement videos, such as charitable events, sports teams and civic organizations • Existing commercials and other marketing videos • Videos displaying your showroom and facilities • Videos featuring happy customers and other testimonials
To YouTube or Not to YouTube? There is healthy debate about the pros and cons of posting videos on YouTube. On one hand, it’s incredibly easy to post videos on YouTube. And with millions of people visiting the site each day, YouTube can expand the reach of the dealership’s videos to new audiences. Further, since Google owns YouTube, the VSEO capabilities are strong, and video search results can appear within seconds of posting.
On the other hand, today it is just as easy to post videos on your own dealership’s Web site. After all, you may not want to reach millions of people around the world. You might just want to reach local
customers who may purchase from the dealership. Further, YouTube’s VSEO capabilities can land YouTube videos atop search rankings, and diminish the visibility of your own dealership Web site. Would you rather direct shoppers to a third-party site where you have no control, or to your own site where you have complete control? Web site providers that combine traditional SEO and newer VSEO best practices can achieve the highest video search rankings, linking directly back to your site and inventory rather than someone else’s.
These are serious considerations that need to be discussed before posting on YouTube. Again, your approach should be strategic, with clear goals and objectives in mind. If dealership branding is the goal, then YouTube could help. If the goal is increasing vehicle sales, though, then skip YouTube and post vehicle videos on your own dealership Web site. After all, there is no evidence to suggest that people shop for vehicles on YouTube, and many dealers have been disappointed to fi nd that YouTube videos did nothing to increase their Web site traffi c. In fact, some have argued that YouTube can decrease your Web site traffi c by directing shoppers away from the dealership site when consumers click on YouTube videos in search results. Be mindful that this cannibalization of the dealership Web site’s SEO efforts can result. Dealer.com vehicle videos can be exported to YouTube, as well as AutoTrader and Cars.com, but again, the decision to export should be based on the dealer’s goals for individual videos.
In ConclusionVideo can be a great way to brand your dealership, make a human connection with shoppers, and sell more vehicles and services. Research concludes that properly executed video can increase search results, length of time spent on site and lead generation. Videos should be created and posted based on measurable goals, and aligned with a dealer’s overall marketing strategy. Further, while there can be benefi ts to posting videos on third-party sites like YouTube, videos are most effective when posted on the dealership’s own Web site as a part of the overall marketing plan.
For more information about Dealer.com contact us at 866.790.1262, or by e-mail at [email protected].
Dealer.com’s CarFlix™ Video Package offers CarFlix™ Virtual Test Drive videos for new vehicles, and CarFlix™ with HumanVoice for pre-owned vehicles. These two products automatically generate compelling videos for new and used vehicles, and include real human voices. The CarFlix™ Video Package also includes a video gallery for dealers’ inventory, and an online research center designed to keep car shoppers on your Web site longer. In addition, dealers can quickly and easily post their own videos through Dealer.com’s user-interface, “ControlCenter™.” Further, all video and other tools are part of Dealer.com’s Internet marketing platform, and incorporate traditional and VSEO practices, and are accessible from one login. Advanced CarFlix™ Video Reporting also carefully tracks the success of all videos, including views and length of views.
1. CarFlix™ HumanVoiceCarFlix™ HumanVoice is the only solution that automatically creates unique, realistic videos of every vehicle in a dealer’s inventory. CarFlix™ HumanVoice produces a professional video within minutes, and is able to produce videos for a dealer’s entire inventory in less than an hour.
CarFlix™ HumanVoice videos include thefollowing features and benefi ts:
• Real human voices with a variety of engaging, professional male and female speakers
• SmartScripts based on which features on different vehicles are most important to potential buyers
• High-quality video with images seamlessly combined to form smooth, high-resolution videos
• Context sensitive music tracks are automatically assigned based on the most appropriate music for different types of vehicles
• Dealer branding on all videos with a call to action, dealership image and contact information
• Built-in lead forms to instantly schedule a test drive or receive a quote • Advanced CarFlix™ Video Reporting in ControlCenter to track viewership and
engagement level
2. Dealer.com’s CarFlix™ Virtual Test DriveCarFlix™ Virtual Test Drive high-defi nition videos use professional voiceovers to name and describe individual vehicle’s features, for virtually any vehicle available. CarFlix™ Virtual Test Drive also provides extensive interior and exterior footage that brings the vehicle to life.
CarFlix™ Virtual Test Drive videos include thefollowing features and benefi ts:
• Virtual Test Drive videos on your inventory pages as well as your showroom• Professionally written scripts by industry experts• Real human voices (not computerized) recorded by professional voice talent• Broad coverage of virtually every make, model, body style and trim• Comprehensive vehicle review including introduction, exterior and interior
features, mechanical features and closing• High-resolution digital spins, operational footage and image sequences• Stylized background music based on type of vehicle presented• Standard Flash Player eliminates the need for QuickTime/Windows Media
plug-in• Advanced CarFlix™ Video Reporting in ControlCenter to track viewership and
engagement level
By SusanGivens
www.autosuccessonline.com
14
No matter how hard you try to avoid
it, sometimes it seems like your day-to-day living expenses eat away your entire paycheck. Before you know it, the money in your paycheck seems to vanish, and you don’t even know where it went. And while you’re focused on just making ends meet, putting money away for the future may be the last thing on your mind. Even so, you need to remember that taking care of your longer-term fi nancial goals is just as important as meeting your current needs.
Ever since the days of putting pennies in a piggybank, you’ve likely received plenty of advice on the value of saving your money. But when mom and dad aren’t taking care of the necessities any more, and you have your own bills to pay, it’s easy to lose track and forget to save. As a reminder of just how important it is to put part of your income aside — and to do it sooner, rather than later — take a look at an example of just how the numbers shake out.
For this example we’ll use two investors — one who starts early and lets her savings grow, and another who waits until later to begin. Let’s say the early investor puts away $5,000 per year for fi ve years, and then allows that investment to grow for 15 years without putting in another penny. The late investor, on the other hand, waits for 10 years before he even begins his savings plan. He then
invests $5,000 a year for 10 years, putting his total investment at $50,000 — exactly twice as much as the early investor.
Assuming an eight percent average annual rate of return on their investments, if we jump ahead now to 20 years from the time our two investors started, the difference in their accounts is substantial. Our early investor would have accumulated a total of roughly $100,493 in her account by this time. Keep in mind she hasn’t put a penny of her own money in for the last 15 years. Meanwhile, the late investor’s account has grown to only $78,227, and he has been contributing each year for the past 10 years. That means that our early investor only put in half as much of her own money, and came out well over $20,000 ahead.
Now, this example is only meant to illustrate the advantages of saving regularly and starting early. This does not refl ect the performance of any specifi c investment, nor does it take into account the eventual effects of taxes. It does, however, make the point very clear — by delaying 10 years in getting started, the late investor loses out on the benefi ts of compounding over a longer period of time.
Disciplined investment habits aren’t always easy to come by, but there are several things you can do to improve your savings routine. One of the easiest ways to establish
a savings plan is by taking advantage of the convenience of electronic funds transfer (EFT). You may be familiar with this type of service if you currently receive or make electronic deposits to your bank account. This service is also available from other fi nancial services fi rms, and paying yourself fi rst by using an EFT system can help you get in the habit of saving.
Direct deposit allows you the opportunity to deposit all or part of your paycheck to the account of your choice, so you could choose to set aside a certain portion to go directly to a savings account as opposed to your checking account. Another way to take advantage of EFT is to set up an automatic monthly deposit. This is a simple, disciplined way to add to your account, authorizing a specifi c amount to be transferred from one of your accounts to another (i.e. from checking to a savings or investment account).
Regardless of which method you choose — or even if you decide on completely different investment strategy — putting aside money now will help you prepare to reach your fi nancial goals that lie further down the road.
John Freund is the senior vice president of investments for Moors & Cabot. He can be contacted at 866.599.9162, or by e-mail at [email protected].
JohnFreundle
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PAY YOURSELF FIRST
www.autosuccessonline.com
16
We learn at a young age that everything
requires a “fi t.” If you buy new shoes without trying them on, chances are you’ll be sorry (and trust me, it’s not easy to fi nd shoes when you have size 13 feet). The fi t theory continues as we grow up because we learn that, if you’re going to commit, it had better be to something you like. I like to think my last vehicle purchase serves as a good example of fi nding the right “fi t” in my life. When all was said and done, I left the showroom with a vehicle that fi t my personality and lifestyle.
Would I buy a car based on looks alone? Not entirely, and neither should anyone. Yes, a nice looking car is what fi rst attracts me, but I need to dig deeper and make sure it has all the features I want and need. I take a trip to my local dealer and take a seat inside the car. I look around, play with the controls, grasp the steering wheel in my hands, and try to visualize myself driving down the road. I analyze all of the features and amenities to determine how they will best “fi t” my needs. If I think I’ve found a solid choice, I have to be sure. I need to take this baby for a test drive to really experience it. Sitting in a car on the showroom fl oor really only gives you one-tenth of the actual enjoyment you’ll have driving your car.
Now for the Test Drive: I slowly pull the car out of the parking lot and give it some gas. The rush of acceleration is pretty fantastic. Check. I turn up the volume on the sound system. Potential deafness. Check. My phone automatically connects with Bluetooth. Check. The seats really support me through the turns. Check. Heated seats warm me up within minutes. Check. After taking the car for a nice 30-minute drive I really got a better feel for the car and how it will “fi t” me as I continue to drive it. I love it. It was defi nitely the right choice, and I’m glad I took it for a spin.
As you approach marketing and services for your dealership, the same principles apply. There are more services promising to make your dealership run than you can count, but how do you choose the right ones for your
dealership? Choose the products that really “fi t.” Selecting an Inventory Management System or a new ILM is just like buying a car or a new pair of shoes — it’s something that has to work for you, your employees and your business as a whole; it has to “fi t” your business development goal. To make sure it fi ts, go out there and experience all that is available. Right now, we’re in an uncertain time, and spending thousands of dollars on a 12-month contract before you get a great feel for the product might not be a wise decision; instead, drive it before you buy it. In doing so, your risk goes to zero and you can be confi dent with the “fi t” you’ve been searching for.
During these tough economic times it’s important to consolidate your tools if possible. There are great ways to save money by bundling services. Take a look at your local cable companies. Most offer TV, Internet and phone all for one low rate.
Try to fi nd a company that offers all of the products you need and is willing to combine their products and services at a discount that “fi ts” your budget. You’ll fi nd it trims the fat from your budget while continuing to offer great management tools for your dealership and engagement tools for your customers.
Test-driving isn’t the ONLY way to determine the “fi t” for your dealership. The real key is being as informed as possible, because in situations when you can’t just hop in the driver’s seat you still need to know what you’re getting into. To help determine what will work for you and your dealership I have developed a list of questions for you to ask yourself and your vendors as you consider new products and services and look to upgrade your current products. You may never know the true ins-and-outs of a product until you purchase it, but these questions will get you answers you need to make a solid, informed buying decision. After answering these questions, I hope you are able to reach a decision about the most suitable product/service to accommodate your dealership needs. That’s what it comes down to — choosing the most relevant product/service that is the perfect fi t.
New Products/Services Purchases:• Does a vendor we already work with offer
this product/service?• Can we use this product/service on a trial
basis?• What is the contract length and
cancellation policy for this product/service?
• How is this product going to improve our dealership?
• Will we need to cut something from our budget to purchase this product/service?
• Will this product/service replace something we currently use at our dealership?
• What is the training period for this product/service?
• What are their customer service hours?• What are the main features of this
product?• How will we see a return on investment by
using this product?• How will this product benefi t our
customer/future customer relationships?
Upgrading Current Products/Services:
• What am I currently paying for this product/service?
• What is the cost of upgrade (if any)?• Am I completely satisfi ed with this
product/service?• What additional features/benefi ts do I
receive with the upgrade?• Are there statistics to support the positive
effects of an upgrade?• Does the upgrade require a renewed
contract?• Does the upgrade replace a product or
service we are currently using?• How often do upgrades come out for this
product?• What, if anything, does the upgrade
require on the dealership end?• How will this upgrade keep our dealership
up-to-date with technological advances?
Justin Duff is the vice president of sales for Dealer HD. He can be contacted at 866.867.0016, or by e-mail [email protected].
JustinDuffle
adership
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FIT IS ESSENTIAL
www.autosuccessonline.com
18
J.D.Ruckerm
arketing
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It’s offi cial. Everyone has, at some point,
heard of or used social media. Most car dealers have at least considered integrating it into their marketing strategy. Some have taken the leap. Many have failed.
The few who have truly found success fall into three primary groups. Determining which method is best for you and your dealership is as easy as looking at your dealership needs, the level of commitment, and the budget (if any) available. Below, you will fi nd a breakdown of the three levels and learn ways to determine what is best for you.
The ToedipperThere’s nothing wrong with being cautious. Social media is often called “New Media” or “Emerging Media” because it is just that — new and emerging. While many social media sites have been around for years and tons of companies have taken advantage of the possibilities for a long time, it hasn’t been until last year and 2010 that it has
truly “emerged” as a viable option in the automotive marketing arena.
The Toedipper is the most basic and easiest way to get involved in social media with neither the budget to support it or the time to get involved. It’s better than nothing, and leaves room for more engagement later if budget and/or time open up.
At the very basic level, make sure your dealership has a Facebook fan page and Twitter account that are updated regularly. Surely someone can fi nd the 10 minutes a day it takes to see what people are saying to you, grow the accounts a little at a time and offer a small amount of engagement to keep the accounts fresh.
As the importance of social media grows, it will become easier to push accounts and pages that have a “rolling start” rather than starting with a new account and no experience later. Update your page and “tweet” interesting things about your
dealership, your brand, your city... anything that people might fi nd interesting. The Toedipper should not post inventory or specials very often, as they are not engaged enough to “earn” the right to do so.
Instead, post extra-special things (interesting trade-ins, super sales, etc) sparingly and only when there are enough “non-spammy” updates and tweets to separate each attempt at marketing.
The EngagerWith a small budget of either time, money or both, a dealership’s Internet manager or anyone who has an hour a day can have a very
strong presence on social media. Start off with the primary sites: Facebook, Twitter, YouTube, Flickr and MySpace. Build these accounts regularly and rapidly, posting updates at least once a day.
The Engager is talking to people. He/she is active within the “community,” looking into what others are doing, customizing pages, posting interesting things, and occasionally posting specials or unique inventory items.
An hour a day (normally broken into two 30-minute slots) is enough to be a good engager, though more is better.
The Social Media PresenceIf your dealership can either hire a strong social media marketing fi rm or hire a dedicated person to manage the accounts, you’re ready for the “big leagues.” Add every profi le listed above. Then create a blog. Then add other social media sites — there are thousands. Feel free to contact me for recommendations on others to join, but keep in mind that having a presence on certain sites can be a bad thing if your accounts aren’t active. Only bite off what you know you can chew. Services that offer “hundreds of social media profi les” will do more harm to you and your reputation than good.
Post to the blog at least once a week. Talk about things that are happening locally. “Cover” a local little-league baseball game for a team that your dealership sponsors with pictures and videos posted to the blog, Facebook, etc.
Let everything feed upon everything else. If you post a strong blog post, link to it from Facebook. Tweet it. Post videos to YouTube, then embed them on your blog (then post them to Facebook and tweet them).
Talk to people. This is the key. Having someone dedicated to building the accounts also requires that they are communicating with everyone involved.
Regardless of which group you want to fi t into, let me repeat a key point: Don’t bite off more than you can chew. It’s better to have the right level of engagement rather than trying for too much and failing. As accounts go stale, so too does your credibility and the perception of your dealership.
J.D. Rucker is chief marketing offi cer ofTK Carsites. He can be contacted at866.796.9622, or by e-mail [email protected].
www.autosuccessonline.com
20
KirkManzo
DOES HOW WE LEARN IMPACT HOW WE BUY?
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Can our natural learning methods
impact how we buy?
Studies indicate that adult learners take in information using three primary methods: visual, auditory and kinesthetic. We acquire knowledge via printed text in books, or by listening to others speak on subjects of interest. We engage in self discovery via trial and error, but in the end much of what we learn is a result of what we see, hear and do.This dynamic helps explain why so much of our education remains instructor lead and classroom based. This delivery method allows for the application of all three learning modalities.
In understanding this information, how does this help explain the process of how someone then looks for a new automobile?
We know from various sources that around 90 percent of shoppers will use the Internet in some form prior to purchasing a vehicle. While the motivation may seem obvious (save time and money), are these two factors unique to the Web 2.0 era? Not really. The idea of “better/faster/cheaper” has driven innovation for more than 100 years.
Consumers just want to fi nd their information faster and easier. This is why the Web has become such an integral part of our lives and is forever attached to the way people buy cars today. What is
interesting is how our natural learning styles of visual, auditory and kinesthetic impact the Web behaviors of your customers.
In 2001, a list of the most popular search engines included some familiar and some now-overlooked sites: AltaVista, Yahoo, AOL Search, Lycos and MSN Search. Today everyone on the planet (except China) goes straight to Google as their fi rst option. The question is, what is the No. 2 choice for most users? It is not who you might guess: It’s YouTube. Why?
Well, let’s go back to the way people learn or educate themselves. The majority of people are visual learners. This explains why television is so popular. But remember that early motion pictures were silent pictures. The story was completely visual. The Web applied this approach by providing visual content to educate and entertain users. Web sites with great visuals were adequate.
Then audio was added to the mix. Web sites, like motion pictures and television, began to use sound to enhance the experience for the user, or in our case, the car buyer. The media has now progressed where many sites have a spokesperson welcome your customer to the site to humanize the technology.
All the while, the consumer is applying kinesthetic learning by trial and error and typing on the keyboard searching for solutions. The physical act of typing utilizes a similar learning approach like writing is used in the classroom.
So why are customers using YouTube to fi nd and buy a car? It saves them time, and thus, money. How? Well consider the fact that given the choice of reading instructions on “How to ______” (just fi ll in the blank with whatever it is you would like to learn), versus sitting and watching a video that explains the same information. Which seems easier?
So here are two things you may want to think about with regard to your Web strategy for 2010.
First, if Google is the fi rst place most buyers look, then are you setup to capitalize on the way consumers search for a car on Google today? No longer does the user have the patience to type in “Honda” or “Honda Accord.” It is much more like they will type in “Honda Accord EX 4dr black Davenport Iowa” — make and model specifi c with geographic information on location. Make sure you adjust your site to take this into account.
Secondly, if YouTube is more popular than many of the other conventional search engines, like Yahoo and the new Bing, then will the customer even fi nd your dealership and/or your inventory on the site? Try this exercise: Type in the make and model that you sell most often with the city and state you operate in, and see who and what you fi nd. For you to participate in YouTube, try purchasing a Flip Digital Video camera for less than $200 and start using video to differentiate your store from the competition.
What is important to remember is that applying visual, auditory and kinesthetic experiences for your buyer are the key to helping them learn about you, your product and your dealership. This should be utilized in your Web approach, as well as when the customer is on the lot.
Remember in the end, while 90 percent of buyers will use the Web to help in the buying process, they still want to have the experience of driving the car prior to purchase. And isn’t that a visual, auditory and kinesthetic experience?
If you are going to be in Orlando at NADA this year, stop by Booth #3024 and say hello.Good luck and good selling.
Kirk Manzo is the president of The Manzo Group. He can be contacted at 800.858.6903, or by e-mail [email protected], or by e-mail [email protected].
www.autosuccessonline.com
22
MattWatson
Improving Internet response times is one
of the most important steps you can take on the path to raising your closing ratios. Manufacturers know this, and are starting to put a huge emphasis on shortening those response times in 2010. Here are some actions you can take to improve the service your dealership provides to your online customers:
1. Text messages and e-mail alerts — Make sure you are immediately notifi ed when new leads are received.
2. Manually sending an e-mail or logging a phone call attempt counts as a response; auto-responder e-mails, however, do not count.
3. If your CRM supports it, respond to leads from your smart phone.
10 TIPS TO IMPROVE INTERNET RESPONSE TIMES IN 2010
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5. Use a fully mobile-enabled CRM system that allows you to view complete lead details, send e-mails and log phone calls.
6. Alerts for unanswered leads — Set your CRM up to e-mail a manager if leads aren’t responded to within a certain timeframe.
7. Alert prompts within your CRM — Receive pop-up notifi cations automatically when new leads arrive.
8. Use a phone calling service that can instantly call the customer when a lead is received. With the right organization, response times can be cut to less than fi ve minutes!
9. Use a netbook or laptop when you’re on the go to respond to leads.
10. Third-party monitoring services — They can ensure all leads are being responded to on time. Some services even offer 24-hour monitoring.
While there are several different steps you can take to minimize your response time to Internet leads, the most important step you can take is committing to take steps in the fi rst place. The expectations of online customers are only going to become more demanding, so it’s important to strive to make constant improvements to your response time, and the best time to start is now.
Matt Watson is the chief technical offi cer for VinSolutions. He can be contacted at 866.626.8489, or by e-mail [email protected] “buckets” — Don’t assign leads to any particular person,
but instead put them in a bucket; the fi rst sales rep who gets to it gets the lead.
4.
www.autosuccessonline.com
24
MarkTewart
THE MARKETING AND SALES GENIUS OF HOWARD STERN:BUSINESS LESSONS FROM THESHOCK JOCK
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No, I am not crazy, and yes, I am talking about
the well-known shock jock. Howard Stern is a genius for many reasons, and they all apply to how you can succeed as a salesperson, manager and entrepreneur.
Let’s examine several of the reasons and the lessons that can be learned. First of all, lesson No. 1 in business is to never be boring. Although, you may not agree with Howard Stern’s humor or persona, he certainly isn’t boring and that not only attracts people, it keeps people listening — even those who say they might not like him or his show. I liken it to the train-wreck theory: People may say they are horrifi ed by something, but it does not keep them from paying attention to it.
One of the lessons to writing good advertising copy is in having a great headline. Ninety percent of the effectiveness of a good sales letter can be traced to an attractive headline. If someone is not drawn in by the headline, they certainly won’t read the rest of the letter. The same rule applies to having an effective meet and greet when you fi rst come in contact with a potential customer. Your potential customers are going to make instant and lasting judgments about you. You have to get someone’s attention, stand out from the crowd and give a compelling reason for someone to keep paying attention. Howard Stern gets attention and keeps people listening.
Secondly, be contrarian. The world is full of what I call “me too’s.” Decide who you are and be that person or business. Don’t look at everyone else and copy what they are doing. The masses are not successful and copying others just makes you another faceless entity. The fact is that you stand a much greater chance of being successful if you do exactly the opposite of the masses. Be somebody, do something and be newsworthy in doing it. Don’t be a copycat. Howard Stern stands out and goes against the grain of what everyone else is doing in radio and therefore has created a category of one.
Next you should declare who you are and who you want to be. Don’t wait for some magic person or media to anoint you or certify that you are something. Howard Stern declared himself the “King of All Media,” and that was when he was almost solely known for his radio show. Because Stern was willing to decide what he wanted, declare and then shout it from the rooftops, people started to accept it and treat him as the king of all media. Suddenly, Howard Stern was in movies, TV, CDs and multiple different forms of media.
Who do you want to be? Decide and declare it. I have a saying, “You are who you decide to be in any given moment.” It does not take money, fame, education, connections, other people or any other excuse that you might presently be sabotaging yourself by using as an excuse to keep you or your business from being what you want.
Another essential element of success is to create a following. Make you and your business personable. The more personable you are and the more you communicate that in an endearing and enduring fashion the greater following you will create. If you have a customer who has not heard from you in some fashion for 18 months, then it is as if they never did business with you. You are forgotten and all the hard work that went into creating a customer and potential follower is gone. Most people work so hard on getting new customers that they ignore the customers they have. You must move your customers from being customers to being followers and fans. Howard Stern works very hard at creating consistent followers and then creates fans from his followers.
Howard Stern’s radio show is like a radio soap opera, with real-live stories involving him and his co-stars. Each person on the show opens themselves up in a personal way that invites the listeners into very private view of their lives. The listeners feel connected because they can relate to what’s going on in their world. The Stern Show was reality radio before there was reality TV. Don’t be afraid to show some warts and be personal with your customers; they will connect with you on a deeper level and trust you more for talking about the so-called “elephant in the room” that nobody would mention. Be vulnerable and people will let you in; act perfect and people will shun you. Nobody can relate to perfection.
There are clues to success and you can fi nd them all over. Often the best places to look are in places most would not look. Somehow I doubt that MBA classes are being taught today about the marketing and sales genius of the “Howard Stern Show.” The reality there is probably more lessons to be learned in listening to two hours of Howard Stern than taking two hours of an MBA class. Who knew you could learn so much about business from a so-called shock jock?
Mark Tewart is the president of Tewart Enterprises. He can be contacted at 866.429.6844, or by e-mail [email protected].
25
the #1 sales-improvement magazine for the automotive professional
866.429.6844, or by e-mail [email protected].
th #1 l i t
TedRubin
THE FIVE CHARACTERISTICS OF A ‘GREAT SALESPERSON’
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Have you ever noticed how some people just
seem to be just born for sales? Why is that? What is it about these people that makes selling appear so effortless? I know many of these “masters of the art,” and it is quite beautiful to watch them work. I have been a student of numerous experts for many years, and I can tell you without a doubt, you must truly care about people to be a great salesperson.
My current business partner, Todd Smith, is one of these people. We have worked together for about fi ve years now. I can tell you unquestionably, he truly cares about his customers. Here is what I have learned from watching him, and others.
First, he starts to build friendships and relationships with his customers right from the start. He engages in very personal communication with everyone that he interacts with. Watching this process unfold, you see that one of the most signifi cant differences between a good salesperson and a great salesperson is that the good one is trying to sell. The great one is just trying to help. Customers come to you for help; they do not come to be sold.
Second, you need to be attentive and know how to listen. When I have watched Todd and other greats interact, they are completely focused on the customer, their needs and requirements. Todd always tries to read between the lines. People do not always know how to articulate exactly what they want.
Often, they convey a request that is really a prelude to what they actually need. So, Todd fi lters what he hears to zone in on the need behind the request. You must listen to the answer and determine if a deeper dive is necessary to get to what your customer really wants.
Third, thoughtfulness is a must if you are trying to win someone over. Similar to developing a friendship, thoughtfulness is key to building up the customer’s confi dence in you and what you can do for him or her. I am always happily surprised when I see a salesperson direct a customer in an area that is unexpected, but clearly for the customer’s benefi t. I have even seen my own business partner redirect a potential customer to a consultant or another service that will serve them better at this time. He would rather see them successful (and hopefully come back to us), than to sell a product or service that might not reach the peak of its potential. Work hard for your customer, and let them see it. Offer options. Make recommendations. Thoughtfully adjust expectations, if necessary. Make it clear to them that you are working and thinking of ways to help them get what they want. People almost always acknowledge this effort and respond appreciatively.
Fourth, consistency is more important than weight. One of the reasons that great salespeople stay great is because they create a following. Their customers know they can trust them. They can rely on the fact that there is benefi t on both sides of the deal. Therefore, they not only continue to come back purchase
after purchase, but they refer their friends and family because they want to share their benefi t with others who trust them. Work each deal with the expectation of the same outcome, and only make deals you can both live with and enjoy. The happiest customers and the best sales are created when both sides come to a full agreement.
Fifth, be sincere. This is the most signifi cant characteristic of a great salesperson, in the same way it is of being a great friend or building a long-lasting relationship. It is the prerequisite to effectively utilizing the other tools mentioned here. To be great, you must be completely sincere in attentiveness, thoughtfulness and consistency. Sincerity is not really something you can learn; it is more about who you are. It has to be a part of you and is about being conscious and focused, and having a real interest in the person you are working to help. It is about being aware of yourself, who you are and who you want to be.
As a fi nal footnote, I fi nd it interesting that as I thought about the truly great salespeople I know, I found that many of them are also my friends. I realize that is not an accident. In my study of the traits of a great salesperson, it appears that these characteristics are basically the same as those required to be a great friend. This is something that seems so obvious, but I believe most people miss it. Think about it….
Ted Rubin is a founding partner of ActivEngage. He can be contacted at 866.387.9061, or by e-mail [email protected].
www.autosuccessonline.com
26
Open any trade publication this month
and you’re bound to fi nd at least one article packed full of speculations on what we’ll encounter into 2010. Rest assured, this is not that kind of article.
During a time when many are contemplating New Year’s resolutions, I have been inundated with questions from GMs, dealers and even dealership salespeople who are looking for ideas to increase business or enhance personal performance in 2010. While each question focused on achieving different results, all of the answers boiled down to the fact that each person’s outcome this year will be directly related to their personal outlook.
Want to get a better understanding of what that means? I’ve compiled a few of the most pressing questions I was asked, in an effort to help you gain insight on some different ways to improve yourself and your business in the new year.
Q: “In my market, unemployment is high and credit is tight. Given our current situation, what can we do to get more deals bought?”
Dealer, Detroit, MI
A: This is not an easy question to answer. Not because high unemployment and tight credit are impossible obstacles to overcome, but rather because the answer is not often what people want to hear. In cases like this, a dealership’s ability to close deals relies more on mindset than it does on magic tricks.
I hesitate to share this because I don’t want to hurt feelings, but in my experience I’ve come across a lot of people at dealerships who have gotten caught up in all the reasons why deals can’t get done. Once this “doom and gloom” philosophy takes hold of one person, it can spread across the dealership like wildfi re, ultimately limiting everyone’s ability to see opportunity.
Think of it like this. A basketball player lines up to shoot a free throw and thinks, “I hope I don’t miss this.” With a mindset like that, what do you think the odds are that he’ll make the shot? Slim. If, instead, that basketball player approached the free throw
by thinking, “I’ve got this one,” his chances of making it go up dramatically. Just like the basketball player, dealership sales teams need to believe in their ability to put deals together so they see the opportunity instead of reasons why deals won’t come together
Encouraging confi dence among your sales team is not always an easy task. Ensure good work is recognized publicly, and remember to pass any potential issues up the chain of command while pushing positive news down to your salespeople. Consider bringing in outside infl uencers to shake things up. This can include auto consultants, motivational consultants, or even books and tapes designed to inspire sales professionals.
It may sound crazy, but simply changing your frame of mind can make luck appear as though it is on your side. Things begin to come together and ultimately more deals get closed — no matter what apparent obstacles may be out there.
Q: All of our customers know that dealerships are struggling, which makes them want to negotiate a better deal. What can I do to make more money this year?
Dealer, Phoenix, AZ
A: Increasing gross is a key aspect of my business, just as it is with any dealership. As a result I’ve spent a lot of time over the course of the last year watching the trends in consumer car buying. That being said, I’ve noticed an interesting pattern over the last seven or eight months. Our retail sales teams have actually seen an increase in grosses over this period when working with dealers across the U.S. How can that be? It seems that over the last 12 to 14 months, people in the market to buy a car have been stockpiling money for that big purchase. Since these consumers have chosen to save their cash before they buy, they have more funds available to put toward a down payment.
Moral of the story: Focus less on negotiating price and more on down payment and the customer’s monthly payment.
Q: My sales guys need an attitude adjustment. What will get them to break out of their negative mindset?
GM, St. Louis, MO
A: Giving sales people too much time to concentrate on the negatives will only make things worse. Keep your sales team active. Get them prospecting on the phone. If you’re looking for a better way to network with the consumers in your market, consider getting your sales people involved in community events. This helps your sales team prospect to potential buyers while promoting your dealership as a community focused business.
All dealers want to stop advertising during a down economy. In reality however, the decision to stop advertising only makes the problem worse. I have a rule I live by that states, “Things in motion stay in motion. Things at rest stay at rest.” In order to ensure your dealership stays “in motion,” you’ll need to keep advertising to attract more customers. More customer visits means more opportunity for your sales team and ultimately more money in your pocket. Busy sales people are productive sales people and before you know it, they’ll be “accidently” closing deals.
Take the initiative to help them get and stay motivated. Suggest books or tapes that they can engage in every day, which are focused on creating or discovering personal drive. If you’re looking for a place to start, I highly recommend the book Rhinoceros Success by Scott Alexander. And if motivational tapes seem more appealing to you, check out Get the Edge by Tony Robbins. Both are powerful tools and have had a remarkable impact on many of the salespeople I’ve worked with.
Do you have a question about how to improve your personal performance or your business throughout 2010? E-mail your question to me at the address below and I’ll be more than happy to offer some suggestions in an upcoming issue of AutoSuccess.
Matt Baker is the vice president of sales for G&A Marketing. He can be contacted at 866.618.8248, or by e-mail [email protected].
MattBaker
WANT SUCCESS IN 2010? STOP PLAYING MIND GAMES
marketing
solu
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at 866.618.8248, or by e mail [email protected].
www.autosuccessonline.com
28
WOLFINGTONThe Name on Your Grandfathers Brougham
A TRUSTED NAME IN THE AUTOMOTIVE BUSINESS SINCE 1876.
The original Brougham, designed by Alexander J. Wolfi ngton was an enclosed four-wheeled carriage that was driven by a coachman and a single horse.
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ALEX J. WOLFINGTON BUILDS BROUGHAM CARRIAGES -THE WOLFINGTON CARRIAGE COMPANY
HARRY J. WOLFINGTON TAKES OVER COMPANY. ONE OF THE FIRST TO PROMOTE THE SALE OF TWO BODIES FOR THE SAME CHASSIS. CLOSED BODY FOR THE WINTER, OPEN FOR THE SUMMER
HARRY J. WOLFINGTON CREATED BUS, HEARSE AND AMBULANCE BODIES
HARRY A. WOLFINGTON CREATED THE WOLFINGTON BODY COMPANY. BY 1940, IT BECAME ONE OF THE LARGEST DISTRIBUTORS FOR SUPERIOR STUDEBAKERS
HARRY J. WOLFINGTON TOOK ON PLYMOUTH DESOTO DEALERSHIP
EUSTACE WOLFINGTON - WOLFINGTON CHEVROLET
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When it comes time to demonstrate a
vehicle, you need to be well prepared. Too many automotive salespeople invest most of their preparation time in vehicle knowledge, which is very important, but spend little time thinking about how to actually demonstrate vehicles so their clients quickly envision themselves as owners. There are very specifi c things you can do to accelerate their acceptance of a vehicle, thus leading to more closed sales.
Before getting to the point of demonstrating, you have to use your other selling skills well. Let’s say you did just that. You used some of your excellent prospecting methods to fi nd a couple who needs a new vehicle. You made a competent original contact and warmed them up nicely. They seem very comfortable with you. You then qualifi ed as to their needs by asking the right questions and are confi dent you have a vehicle that will truly be good for them.
Now, it’s time for the show to begin…and you are the master of ceremonies. Are you properly prepared for this step in the sales process?
Giving a winning demonstration is not unlike presenting at the Oscars. It’s not easy preparing for such a major event. Even tougher is performing before all of the best and brightest in Hollywood, not to mention the millions of television viewers.
Chances are good that you will probably never have to face such a challenge. However, every demonstration you make can potentially earn you the award of a new client, a hefty addition to the company’s bottom line and a nice little “fee for service” for you and your loved ones to enjoy. Always keep the potential reward in mind when you are preplanning a demonstration. That reward or goal should be inspiration enough to keep you working on honing your demonstration skills until they are as smooth as silk.
While most people agree that the fun is in
the demonstrating, too many fail to prepare properly. Doing your homework is vital. Knowing the decision-maker’s history, and his or her likes and dislikes will help you direct your demonstration in a manner that will be most acceptable.
In some cases, you may get the feeling that the decision-maker is challenging you to demonstrate and present an offer better than he or she can decline. They may come across like this, “Okay, Mr/Ms. Professional Salesperson, you’ve got my attention and you have 20 minutes to show me why I should part with my hard-earned money for what you have to offer.” It’s almost like a dare with some people. You have to be prepared to dazzle them during your demonstration.
It’s important that you note here that the vehicle is the star of your demonstration. You are not. View yourself as a sort of matchmaker. The two parties you believe are a perfect match for one another are your product and this prospective client. It’s your job to introduce them and give them an opportunity to get to know each other.
Many salespeople falter and lose sales
because they try to make themselves the stars of the demonstration. They want to show how well they know the vehicle. They spout off technical information about engine size, fuel economy and handling that may be of little or no interest to the client. In fact, the client may not even understand what they’re saying.
Learn this now: Get yourself out of the picture. Let the vehicle shine! The people you are demonstrating to should be up close and personal with the vehicle. If they ask a question about the navigation system, tell them which buttons to push to make it work — don’t do it for them. The same goes for any buttons, dials or displays in the vehicle. You are the tour guide…not the chauffeur. If you’re not getting them directly and personally involved with the vehicle, you’re not selling — you’re showing. You need to get yourself off that stage and be the one directing the performance instead.
When it comes to discussing service or warranties, be sure to have brochures and other items that you can hand to the decision-makers that provide the details you will deliver verbally. Hand them your calculator to run the numbers for any questions that come up. Show testimonial letters from other satisfi ed clients. This creates both physical and emotional involvement. And the more involvement you get during the presentation, the more comfortable they’ll be with long-term involvement with your product.
At the very least, have the stories about other clients who purchased this type of vehicle in mind and how happy they are with it. Perhaps the experience of others might be just what’s needed to help this new client off the fence and into the driver’s seat.
World-renowned master sales trainer Tom Hopkins is the chairman of Tom Hopkins International. He can be contacted at 866.347.6148, or by e-mail [email protected].
TomHopkins
WINNINGDEMONSTRATION
sale
s&tr
ain
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p
It’s your job tointroduce them and
give them anopportunity to get to know
each other.”
“View yourself as a sort of matchmaker. The two
parties you believe are a perfect match for one
another are your product and this prospective
client...
www.autosuccessonline.com
30
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What reaction do you get when you tell
someone you sell cars? It’s not always a good reaction, is it? Auto retailing also hasn’t been portrayed well in the movies. Classics like Cadillac Man (1990), Used Cars (1980), and most recently, the Goods: Live Hard, Sell Hard take all the clichés from our business and exaggerate them for lots of laughs. These days, however, not many sales professionals or dealers are laughing. We have gone through some drastic market changes impacting our sales volume, and I am seeing dealers falling into two camps. The fi rst camp is the dealers who have tightened up, but are still pursuing a market strategy that has basically been the same for the last 10 years. That means advertising in the newspaper, television and maybe some billboards and deferring to the OEM sales strategy. I guess this time they are expecting different results.
Then the next camp is the dealers who are tired of forces outside their control determining whether they will make a profi t
or not. These dealers are committing to change and they are taking action to integrate a new way of thinking, which will give them a greater control of their fi nancial fate.
Like every sports coach knows, you have to be able to execute on the basics to be effective. You don’t have to go back to square one, but you have to make sure all your sales and marketing initiatives are targeted for maximum effectiveness. The marketing mix needs to incorporate purpose-driven marketing messages that tie in direct marketing channels. This may include online strategies (dynamic lead-generating Web sites), e-mail and database marketing (direct mail) and some exciting event marketing initiatives to attract fresh customers.
Each of these segments is part of the marketing foundation and critical for a holistic approach. As dealers look for ways to differentiate themselves from the competition, they are recognizing that connecting with customers face to face is becoming more
important. There are already a number of authors addressing the online specifi cs, so I will be focusing on the growing trend of event marketing. Unlike the story in The Goods, dealers aren’t bringing in outside teams to manage events, but working with event marketing companies to provide a process strategy, as well as an exciting and cross platform marketing/promotions game plan.
Many auto shoppers these days are looking for value-priced sales, so highlighting inexpensive pre-owned and certifi ed pre-owned units are right in the
DrakeA.Baerresenm
arketing
solu
tion
AND, FOR OURNEXT EVENT...
sweet spot for shoppers on a budget. Auction strategies, red tag and scratch-and-dent sales continue to bring folks in the door. Focus on the bargain vehicle shopper for your event. The marketing pitch could be something like, “Come on in and buy these cars and trucks before we ship them to the auction,” or “You can buy them now at near-auction and discounted pricing and we don’t have to pay to ship them to the sale.” Lots of great tag lines and pitches are available for creative thinkers.
To have a successful event, look for an event marketing company that offers a custom event Web site, direct mail materials and a process to target the right customers, and design assistance for ads in local newspapers, Web sites or billboards. It’s important that you maintain continuity all through the promotion of the sales event.
Utilizing a targeted direct mail promotion is also a critical part of advertising your event. You want to make sure your direct marketing event vendor can identify prospects that are at the right point in the buying cycle. These people are more desirable and a much better quality prospect. There are various ways marketing companies do this, so be sure their methodology makes sense for your dealership. Don’t “shotgun” direct mail pieces, but use a more targeted “rifl e-shot” process to hit the right prospects.
Be sure to prep your team members for the event and keep them excited and engaged. Follow the plan and make sure each customer coming on the lot is made to feel welcome. Then, reinforce that this event is absolutely a great deal for them and the values offered are truly unique. This validates to the customers that the event is legitimate and builds on the excitement you created in your pre-event marketing materials.
Also, consider extra incentives for your salespeople for the event — a spiff on each customer a salesperson registers for the event and another spiff for converting a prospect into a demo ride, for example. Event marketing can be incredibly profi table for your store, but there is a right and wrong way to execute this strategy. I invite you to e-mail me for a list of items to address for successful dealership event marketing.
Drake A. Baerresen is the vice president of sales and marketing and co-founder of Turn-Key Events. He can be contacted at 866.900.7714, or by e-mail [email protected], or by e-mail [email protected].
www.autosuccessonline.com
32
TonyClark & BernieMock
DON’T FEARONLINE NEGOTIATION
sale
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There is a storm brewing in the automotive industry, caused by the desire of the consumers. Consumers want to experience their buying process online directly with their local dealership.
Many dealerships we are working with are thrown off by the process of this consumer push. One thing we know: The negotiation can’t be handled like a regular Internet lead. The customer wants to work the process completely then enter the dealership to pick up their new vehicle. The consumer wants to give the dealership all their information on the trade, their credit and fi nancing or lease and let the dealership give the consumer a proposal.
For those of us in the business, this may seem to go against the way we have operated in the past and the principles we were taught by those who preceded us. What we have found is the consumer will give us the information and our showroom has truly gone virtual. A virtual showroom demands we treat the
customer just like a customer in our physical facility. Do they negotiate? Yes, they do. A recent general manager asked me, “Don’t you think they will call the next dealership and shop us using our numbers?” We said, “Yes they will, and they probably are anyway.” We also found it is an unfair competitive advantage over your competition. This was clear at the Bill Hood Auto Group, when they sold 10 units in the fi rst week of turning on the program.
We see the online negotiation as the new way the consumer wants to do business. In the industry, we must set the processes in the dealership to encourage the consumer to do the business as they want. In fact, with the right processes in place, the CSI goes up and the back end increases because the three-hour wait in the process is adverted. The F&I department has a fresh customer to sell products to, and the customer is happy to listen. What we have found in dealerships that are progressive is that the need is there to change their processes to match that aggressiveness.
We have seen other successful dealerships like Feldman Imports who close a 40 percent ratio of the online negotiation leads they get. Knowing the national closing ratio of Internet leads runs around six percent, it seems to us that we should look into this storm and receive the value of this process in our demanding market conditions that we face today.
Again, we stress that you should not have to go headlong into this type of engaging the customer without examining the processes that make this a success. The storm is out there, and we in the industry must rise to meet the storm head on. Processes make this a reality today and truly can produce what the dealers always wanted: incremental sales by a new process.
Tony Clark and Bernie Mock are co-founders of the National Independent Consultant Consortium. They can be contacted at 866.590.4651, or by e-mail at [email protected].
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