AutoSuccess Aug06

August 2006

Increase Sales Now

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Case studies from successful dealerships across the country.

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LEADERSHIP • INTERNET • CRM • MARKETING • BDC • SALES

AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or [email protected]. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction inwhole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request thatnames be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.

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Brian Ankney, Sales-improvement [email protected]

Brian Balash, Sales-improvement [email protected]

Charlie Tierney, Sales-improvement [email protected]

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Psalms 57: 2“I cry out to God...who fulfills for me.”

Job 34: 21“For His eyes are upon the ways of man, and He seeth all His goings.”

10 Great Investigative Questions

Two Schools of Thought

Avoid America’s Favorite Pastime

What Your Employees Don’t Know Can Hurt YouThe Link Between Education and Compliance

Going UpCreate an Elevator Conversation, Part 3

Top GM Dealer Talks StraightInternet Search Marketing and Why All Customers Today Are Internet Customers

Managing Time in the Business Office

Scott’s Individualized Consultation Transcripts, Part 3

How Do You Measure Wealth - People or Profit

Record Sales Don’t Mean Much, Record Profits Do

It’s Still About Selling

Actions Speak Louder Than Words With Women Car Buyers

Effective E-Marketing

The Power of Pausing

Questions Are the Answer

The Importance of Payments

The 7 Commandments of Selling, Part 4

An Effective Voicemail Will Get You the Call Back You Want

1212

RobMancuso

KirkManzo

BrianTracy

TedLinhart

CharlesArrambide

JesseBiter

TonyDupaquier

ScottJoseph

SeanWolfington

DeborahRenshaw

PattiWood

BrianEpro

ZigZiglar

TomHopkins

RaquelSmith

MarkTewart

DavidKain

God is the source of all supply

RichardLibin

JeffMorrill

People Buy From People

MikeParsons

DavidJacobson

A Business Dedicated to Making a Difference

Key Performance Indicators HeatherConary

The “Be” Attitudes

Rick Case Auto Group - The Value of TechnologyHow Technology Enhances Our Dealerships, Employees, and Community

PhilCohen

Avoid America’sFavorite Pastime

ZigZiglarsts fos ls ms sf fi s

sales and training solution

8 www.autosuccessonline.com

What is America’s favorite pastime?

Some people would have you think it is baseball. Afterall,

it is called the “National Pastime.” True, a lot of people attend all types of baseball games…from little league to major league games. Some people think baseball is a bit slow. Someone once said that baseball is 15 minutes of action packed into three hours. Some people believe golf is the national pastime. It certainly has continued to gain popularity and participants over the years. I am proud to say that recently I shot my age on the golf course. That sounds impressive until you realize that it only took me 14 holes to do.

There is another pastime that Americans are crazy about; sales people have it down to a science. Despite its popularity, this pastime should be avoided at all times.

It is called “transference of blame.” It is easy to

blame others for our condition, our problems, our state in life. We do it all the time:

“Boss, it’s not my fault the customer didn’t buy. I showed up at 1:45 … for the 1:30 appointment.”

Of course it’s not our fault that we do this. The blame goes to Adam and Eve. They started it all. God asked Adam if he’d eaten the fruit. Adam said, “Lord, let me tell you about that woman you gave me.” Eve said it was the serpent’s fault … and we all know

that the snake didn’t have a leg to stand on.

We are responsible for our thoughts and our actions. We are responsible for our hits and our misses. We are responsible for our success and our mistakes. If others are responsible for our success, then we need to invest in those people. We need to send them to schools and to seminars and to educate them. Once they are better, we will get better. Once they are great, our lives will be great. No, I don’t think so.

You know that it doesn’t work that way. We must stop blaming others. We must stand on our own and make our own way in this world. We all need to avoid the pastime of transference of blame.

If it is to be, it is up to me.

Zig Ziglar is the chairman of the board of Ziglar Training Systems in Dallas, TX. This article was reprinted with permission. All rights reserved. He can be contacted at 866.873.0026, or by e-mail [email protected].

We are responsible for our success and our mistakes.

9august 2006

The Powerof Pausing

BrianTracy

All of the top sales people ask good questions and listen carefully to the answers. One of the

most important skills of listening is simply to pause before replying. When the prospect fi nishes talking, rather than jumping in with the fi rst thing that you can think of, take three to fi ve seconds to pause quietly and wait.

Become a master of the pauseAll excellent listeners are masters of the pause. They are comfortable with silences. When the other person fi nishes speaking, they take a breath, relax and smile before saying anything. They know that the pause is a key part of good communications.

Three benefi ts of pausingPausing before you speak has three specifi c benefi ts. The fi rst is that you avoid the risk of interrupting the prospect if he/she has just stopped to gather his/her thoughts. Remember, your primary job in the sales conversation is to build and maintain a high level of trust, and listening builds trust. When you pause for a few seconds, you often fi nd the prospect will continue speaking. He will give you more information and further opportunity to listen, enabling you to gather more of the information you need to make the sale.

Carefully consider what you just heardThe second benefi t of pausing is that your

silence tells the prospect that you are giving careful consideration to what he/she has just said. By carefully considering the other person’s words, you are paying him/her a compliment. You are implicitly saying that you consider what was said to be important and worthy of quiet refl ection. You make the prospect feel more valuable with your silence. You raise his/her self-esteem and make him/her feel better.

Understanding with greater clarityThe third benefi t of pausing before replying is that you will actually hear and understand the prospect better if you give his/her words a few seconds to soak into your mind. The more time you take to refl ect upon what has just been said, the more conscious you will be of their real meaning. You will be more alert to how his/her words can connect with other things you know about the prospect in relation to your product or service.

The message you sendWhen you pause, not only do you become a more thoughtful person, but you convey this to the customer. By extension, you become a more valuable person to do business with. And you achieve this by simply pausing for a few seconds before you reply after your prospect or customer has spoken.

Action stepsHere are two things you can do immediately to put these ideas into action:

First, take time to carefully consider what the customer just said and what they mean by it. Pausing allows you to read between the lines.

Second, show the customer that you really value what they have said by refl ecting for a few moments before you reply.

Brian Tracy is the chairman & CEO of Brian Tracy International. He can be contacted at 866.300.9881, or by e-mail at [email protected].

sts fos ls ms sf fi s


When you pause, not only do you become a more thoughtful person, but you convey this to the customer.


Questions Are the Answer

TomHopkinssts fos ls ms sf fi s


When you work with a new car prospect, don’t you agree that you should try for several minor “yeses” before you go for the

big “yes” buying decision? It makes sense, doesn’t it? It would be helpful to learn a specifi c technique that would begin a string of “yes” answers, wouldn’t it? You’re probably getting tired of all these questions, aren’t you?

If you answered “yes” to these four questions, you’ve just proven the effectiveness of the “Tie-down” questioning technique. Let me begin by defi ning the term “tie-down.” A tie-down is a question at the end of a sentence that calls for a positive response. Here are some examples:

• “A reputation for excellent service after the sale is important in making this decision, isn’t it?”

• “I can tell you are happy to hear that we have a wide range of fi nancing options, aren’t you?”

• “You can see how our evening service hours would make your life easier, can’t you?”

This technique works most effectively when you tie-down a positive statement about the benefi ts of your services that you know your prospect needs. The key is not to over-use them so your prospect won’t suspect you’re using a technique. Here are 18 standard tie-downs that you’ll fi nd useful:

Aren’t they? Don’t we?Isn’t it? Aren’t you?Shouldn’t it? Isn’t that right?Can’t you? Wouldn’t you?Didn’t it? Couldn’t it?Haven’t they? Wasn’t it?Doesn’t it? Hasn’t he?Won’t they? Hasn’t she?Won’t you? Don’t you agree?

You don’t want to use too many of them with

any one client, just enough to get the “yeses” fl owing. Experiment with your existing presentation until you fi nd a comfortable number of tie-downs to use without sounding repetitive.

Another way to keep these tie-downs from sounding overused is to use them in other forms: “Inverted,” and “Internal.” I’ll use the same example as above to demonstrate them.

STANDARD: A reputation for excellent service after the sale is important in making this decision, isn’t it?

INVERTED: Isn’t a reputation for service after the sale important in making this decision?

INTERNAL: A reputation for excellent service after the sale is important, isn’t it, in making this decision?

The inverted and internal tie-downs allow you to hide the fact that you’re using a technique while adding warmth to your statements. By utilizing all three types, you’ll have a good mixture of them to build into your presentation. Once you’ve learned them and worked with them, use of the tie-down will become a speech habit that will improve your business and your earnings.

Another form of the tie-down you might consider using is the “Tag-on tie-down.” It can be used in a variety of ways. The simplest is to tie-down a positive statement your prospect has just made. For example, if they say, “Having a good extended warranty is important.” You would say, “Isn’t it?” They make a positive statement and you agreed, but asked for another positive statement. The statement being the word, “yes.”

Another useful questioning technique is the “Alternate of Choice” technique. An alternate of choice question is one that suggests two answers, either one will confi rm that your prospect is going ahead. The easiest

example of this is getting an appointment. The average sales person will say to their prospect, “When can we get together?” This allows the prospect to say, “Never,” or, “I’m too busy just now, I’ll call you later.” Now, that won’t get you an appointment today, will it?

In using the alternate of choice question you would say, “I have an appointment opening this afternoon at 3 p.m., or would 4:30 be more convenient for you?” You’ve given your prospect two choices, one of which they will most likely agree to. If they cannot make either appointment, they’ll tell you and you can counter with another alternate choice.

This is also a good technique to use when you try to get a delivery date from your prospect once they show signs of going ahead. “You mentioned wanting to remove some things from your current vehicle. How soon would you want to take delivery of your new truck? Today? Or, would tomorrow be better?” Just remember to use it whenever you have two alternatives you can give to your prospect, and both of them require a positive response.

These two simple questioning techniques are the fi rst steps to turning your existing presentations into positive momentum builders. Please remember, a quick reading of these techniques will not do. You need to read them, study them, learn them and practice them until they become a natural part of your speech. If you have to stop and think before using these techniques, your prospect will suspect you are using a sales technique and will try to fi ght you. Once they’ve become a natural part of your speech, they will fl ow smoothly and add warmth to your presentation. All it takes is one “yes” to turn a prospect into a satisfi ed client.

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].

12 13

fs feature solutionTedLinhart

Dominion Automotive Group - comprised of two campuses and nine franchises in Richmond, Virginia - is anything but a newcomer: The company celebrated its 50th anniversary last year. Chairman and CEO Ted Linhart is no newcomer, either. The great-nephew of the company’s founder, he’s been with Dominion for 35 years, having come on board straight out of college.

A long-established, family-owned dealership might not seem like the place to look for top-fl ight advice on the Internet side of the automotive business, and particularly not the complex world of search engine marketing. In this regard, Dominion is an exception, and so is its leader. Though Linhart’s sport is fi shing, not poker, he uses a poker term to describe his business’ Internet commitment: “All in.”

AutoSuccess: Ted, we appreciate your giving us this chance to talk with you. How did you arrive at your perspective on the Internet and its importance for automotive retailing?

Ted Linhart: I’ve always approached it as a user. I use the Internet every day in my work, of course, but also in many other ways. At 59, I’m probably a little bit behind the curve. But once I realized just how great a role it played in my own purchasing decisions, it was easy to see the future - the growing percentage of people who have grown up with the Internet, and who naturally make it a part of their auto-shopping process.

AS: How has this personal insight shaped the way Dominion thinks about Internet sales?

Linhart: In the auto business, there’s a wrong-headed tendency to think that there are these people out there called “Internet customers.” Well, when I go to Amazon.com to buy a book, I’m not an Internet customer. I’m just a customer who’s using the Internet to buy a book. And the same is true in our industry. The biggest mistake you can make is to think that the people who visit your Web site have some special qualities, good or bad,

Top GM Dealer Talks Straight

that make them different from the people who walk onto the lot. The fact is, the people who visit your Web site are the same people who, fi ve or 10 years ago, would have walked onto your lot. Now they don’t have to—or rather, that’s no longer their fi rst step.

AS: Dominion markets itself heavily on the major search engines. When did you start doing that, and how has it turned out?

Linhart: We started in October, 2005. The fi rst thing we learned was that, for a modest amount of money, you can buy yourself a huge amount of exposure and the ability to measure what it brings you. Our fi rst month’s budget was tiny—just over $150—but the results were very encouraging. In May, we spent about $1,300, brought 1,589 people to the Web site, and converted 39 of them to sales. We’ve experimented with different monthly budgets, and right now we

feel we’ve found the level that gives us the maximum ROI.

AS: That’s the paid search side of your effort. Do you optimize your Web site to ensure that it gets high rankings in the search engine’s organic results?

Linhart: Absolutely. In fact, I feel very strongly that the two things go hand in hand. A dealership might start out with organic search before moving on to paid search, but ultimately you want to be doing both, and you will need the help of a single-service provider who can handle both together, in a cohesive and systematic way.

AS: Can you give us an example of the synergy you perceive between the two?

Linhart: With paid search, you have a tremendous amount of control over how

often your ad appears, and where it’s ranked. It’s just a question of what you’re willing to spend, and how much it makes sense for you to spend. Improving your organic rankings through optimization is therefore extremely valuable, but here you can’t buy your way to the top. You have to design your Web site so that it gets the right kind of attention from the search engines. And that’s not all. Ultimately, your ranking is determined by how often users visit your site when it shows up in their search results. So your Web site really has to be what you want the search engines to think it is. It has to be useful to the people who fi nd it based on the search strings you target.

AS: What are some of the issues that have come up as you’ve worked on your paid search campaign, and on organic search? What’s it like working with a service provider in these areas?

Linhart: A lot of Internet search marketing is common sense, but that doesn’t mean you want to try to do it on your own. Many powerful techniques are discovered through sophisticated research, and you need a partner that can bring that sort of knowledge to bear. There’s a lot of collaboration between us and our partner. We bring to the table what we know about our business and our market, and they offer what they’ve learned from their own experience and experimentation.

Here in Richmond, people are just as likely to refer to a part of town as they are to the name of the city itself. Our campuses are located in Southpark and Short Pump. When we said we wanted to bid on “Chevrolet Short Pump” or “GMC Shortpump,” for example, naturally our PowerSearch rep wanted to know what the heck “Short Pump” was. But he got us those keywords, and they’re paying off. That’s an example of knowledge the dealership can contribute. Our partner has insights into things outside our immediate expertise. For instance, if our ranking on a certain keyword suddenly drops, they can fi gure out why and make an adjustment. They’ve also been instrumental in getting us placement as one of Google’s “featured Web sites.” These are ads that appear just above the organic search results and seem less like ads to users. They deliver great value.

AS: Do you have any advice you’d like to offer dealers who are just beginning to think about making a concerted effort to market their dealerships on search engines?

Linhart: I’m happy to offer advice to anyone and everyone - as long as they’re outside our market.

One point I’ve already made bears repeating: There’s no such thing as an Internet customer—there are only customers, and the Internet is the way more and more of your customers are going to fi nd you.

I said this before, too, but the cost of organic and paid search is very low, compared to

the results, and compared to traditional advertising. You know, we just dropped our Yellow Pages ad. We tracked the calls coming in to that number, and to the phone number on our Web site. The Web site was beating the ad in the phone book by 100 to one. It just didn’t make sense any longer.

There’s one big lesson we’ve learned as we’ve worked to keep all our campaigns coordinated. We hired a company that specializes in such matters to help us with that, and our marketing director stays on top of this, too. But it’s not just a question of coordinating things. Sometimes we fi nd that the Internet actually has a say on whether a given campaign makes sense. A while back, we used a tag line in a TV commercial, and later we found that Googling this tag line took users to some really ... questionable links. So now we always test our tag lines on the search engines fi rst, to make sure they’re safe, and to make sure it’s feasible to bid on them.

AS: Ted, it’s striking to fi nd the head of a large dealership so knowledgeable about Internet search, and so involved. Care to comment on that?

Linhart: Well, again, it’s a product of my own experience with the Internet. I personally understand how the Internet can be useful, and the ways it can be useless and even annoying. When someone does a search and fi nds us, I know that they’re looking for information. If our Web site doesn’t give them what they want, then we’re doing something wrong. And if we ask visitors for information before we’ve given them any information, we’re driving them away. Dealers who are just getting started need to trust their own experience and common sense and use it actively when they work with their partner.

Ted Linhart is the chairman and CEO of Dominion Automotive Group in Richmond, Virginia. He can be contacted by e-mail at [email protected].

Internet Search Marketing and Why All Customers Today Are Internet Customers

There’s no such thing as an

Internet customer - there are only customers, and the Internet is the way more and more of

your customers are going to

fi nd you.

DavidJacobsonsts fos ls ms sf fi s


The 7 Commandmentsof Selling, Part 4

You now know what the customer is looking for, what is important and what is essential to them.

You have found the car that best fi ts their needs. How do you present your product in a way that separates you from the crowd? Great sales people do many things to turn a prospect into a buyer; however, it is the true professional who can present his or her product in such a creative and effective way as to fi t the customers’ needs and passions.

Using the feature, function and value system is the greatest way of marrying the customer’s wants and needs to your product. If a customer had told you they plan to use the car as a family vehicle and take trips several times a year, it is important that you build your presentation around these points, stressing, for instance, the safety features, gas mileage, roominess and versatility of your vehicle.

It is important to explain how they will benefi t from having such features and the ease of their use.

For example, if a customer showed an interest in the safety of a vehicle, how would you present the feature, function and value system? Let’s break it down.

What are the features? They may include, for instance, crumple zones and a drop-out engine. Open the hood and show the features to your customer.

What are the functions? Explain that on impact, the crumple zones collapse the front end of the car to absorb the hit, and the engine is designed to drop under the car so it will not be pushed into the driver and passenger compartment. What is the value to your customer? Educate your customer that, even in serious

collisions, his/her family will be as safe as possible. In addition, these safety features lower insurance costs.

This system demonstrates the value of your product to your customer. Moreover, if the competition does not use this approach, you will clearly have the advantage of earning the sale.

Let’s say your customer is shopping for many different vehicles and they all have similar qualities. It is the sales person that fi nds this out and then clearly defi nes the benefi ts who will earn the sale. Remember one very important statistic that you will not fi nd anywhere: The sharpest person along the way gets the deal. Whether you are the fi rst or last stop, if you fulfi ll the customer’s emotional and technical needs, you will earn their business.

Most cars today have a power seat. This doesn’t sound like a very exciting feature, but it is how you explain the feature that will grab the customer.

Consider, is it just a power seat or “a six-way adjustable luxury feature that enables you to get comfortable with the touch of a button? Whether you travel around the block or take a day trip, these power seats will make it more pleasurable.”

Sell, don’t tell. A brochure gives dimensions and statistics. You give benefi ts.

It’s the end of the year and you have one car left. You have had it for many months; you know, the ugly one in the back that nobody wants. How do you describe it to the customer? If you say, “I have one left, let me show it to you,” or something of that ilk, then you are losing business.

Try telling the customer: “I think I saw one that just became available and I must check to see if it still is. It probably isn’t, but let me

check.” You then come back and say, “Great news, it’s still available and I am excited for you because it’s one of the hottest colors this year. Let’s go take a look.”

You make the difference in everything that happens. You cause the excitement and energy. Do you have to be a “bounce-off-the-wall” type of sales person to have this impact on a customer? No. You just need to create the environment that is conducive to emotion.

Is it a blue car or “the ‘new for this year’ pearl blue clear coat?” Is it beige or “platinum mist - a color you never need to wash because it hides the dirt so well?” Then you rub your hand across the hood to show the dirt they couldn’t see on the car. This is real-world stuff and it works magic.

You have one car left and it is a popular-equipment package car. It has power windows, locks, cruise tilt and a CD player. A customer walks in and says they want a basic car. They explain they have a limited budget and want to save money by staying with a bare car. Another customer walks in and wants a fully loaded car. A top sales person will be able to fulfi ll both customers’ wants and needs with the same car. How?

To the base-car customer, this is the basic package with mostly standard equipment. To the other fully loaded customer, you rattle off all the equipment, even the basics such as power steering and brakes.

Remember, the sharpest sales person along the way gets the deal.

David Jacobson is the founder and president of GrooveCar Inc. He can be contacted at 866.663.9038, or by e-mail at [email protected].


Going UpCreate an Elevator Conversation, Part 3

PattiWoodsts fos ls ms sf fi s


In the fi rst article on elevator speeches you determined the value of a quick conversation to create business. In the second article you

learned how to capture the attention of a stranger or a colleague. In this third article you will write your elevator speech step by step. Realize as you are delivering each point you have prepared, you want to create a back-and-forth fl ow of questions and comments with the other person so that this is truly an elevator conversation, rather than an elevator monologue.

1. Ask them who they are and what they do.It is often up to you to initiate the conversation. Get into the habit of talking to strangers and saying. “Hello, my name is _____. What do you do?”

2. Listen carefully to their response.Being a good listener helps develop rapport and helps you discover their challenges or problems. After you have rapport and insights about them, you can then tell your story, showing your expertise in solving just those types of problems. It’s important to let them know you want to help them and you have a genuine interest in hearing more about them. Being the best listener is sometimes the best way to sell

3. Introduce yourself.It is important that you know what your goal is for the conversation. Be clear. For example, often my goal for an elevator speech at a convention is to get stories, examples and problems from the people I meet that I can add to the speech I will be giving to them. Are you looking for future employees? Do you want people to come down to your dealership? Set a goal and you will achieve it.

4. Make your introduction memorable, specifi c and simple.Try to introduce yourself in a unique way that catches their attention. Saying the old, ”Hello, my name is Jeff Smith, and I am an engineer from company XYZ.” is not the worst way to introduce yourself, but the “name, rank and serial number” introduction is used by most people, so it’s not attention

grabbing or memorable. This conversation could last all of 20 seconds; you don’t have time to repeat points. Instead, be original. If you’re concerned about trying a unique introduction, ask yourself if a unique statement suits your personality, your company and your audience. If it does, follow these steps:

• Be memorable - create a mental picture of what you do.To be memorable you need to create an image of what you do that can be held in the right hemisphere of the brain of the person you are talking to. That is where strongest links to memory lie. You can do this by making up a new word, using metaphors and analogies, playing with the description of what you do, thinking of what senses your product or service uses, or describing the end result or your product or service.

Decide which is more engaging and memorable:• “I run a car dealership,” or “I help put people in their dream car at my car dealership.”• “I am a fi nancial planner,” or “I am a money doctor.”• “I am a pharmaceutical sales rep,” or “I am a health pusher.”• “I am a project manager,” or “I help teams solve problems.”• “I am an event planner,” or “I create the perfect business party.”• “I am a teacher,” or “I help shape our country’s future by teaching children.”• “I am an executive recruiter,” or “I help fi nd the perfect people to make business grow and make money.”

• Be specifi c about what you do.Another way of making what you do more engaging, impressive and memorable is to be specifi c about what you do. Make a quantifi able statement about your work.

Decide which is more impressive and memorable:• “I am a cars sales man,” or “I have helped over 200 people drive their perfect car.”• “I am in human resources,” or “I am in human resources and I hired more than 100 great people in the past 10 years.”• “I am an IT specialist, or “I helped my company use technology to be 30 percent


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more profi table in the past year.”• “I am a construction engineer,” or “I have helped build the new Georgia Aquarium, the Georgia Dome and the Atlantic Civic Center.”

You notice the focus is on accomplishments, not just dry duties and responsibilities.

• Be simple.Use simple language rather than industry jargon. You may think that impressing the person with your knowledge is a great way of selling yourself, but it may just make them tune you out. Remember: analogies, stories and metaphors are more memorable.

5. Share what business you’re in.When you talk about the business you’re in, the tendency is to ramble on about the features the company provides rather than the benefi ts that the listener can get from using the business. Remember, people are always asking, “What’s in this conversation for me? Why should I care about what you’re saying?”

Decide which sounds more enticing:• “We are XYZ Dealership,” or “Every month we help 200 people like you drive the car of their dreams.”• “We are a printing company,” or “We create full color printing from business cards to brochures so you can paint your businesses success story.” • “We are a small business fi nancial service,” or “We help small businesses like yours plan for their success.”

Notice how each business introduction has a “you” statement. Research shows that people’s attention level goes up when their name or the word “you” is said.

6. What group of people do you service?You may be talking to someone who cannot personally use your services or buy from you, but they know someone who can. Be very clear about who your perfect customer or client is.

7. Share what benefi ts your customers receive from your services.People are thinking, “Why should I do business with you?” So you need to state the benefi ts - not the features - of the product,

service or concept you provide to the customer. There are all sorts of catchy names for this statement: the unique selling proposition, value proposition, benefi ts statement, competitive advantage or deliverables. If you’re going to a particular event, you can prepare responses in advance for the people you will be talking to. Let’s say you’re going to a small chamber of commerce meeting. You can get a list of attendees in advance. Identify the people you want to meet. You may even be able to research them and their company on the Web. Now you can prepare the benefi ts portion of your elevator speech to match their requirements.

To create benefi ts, ask “What can I bring to them?” Can you save them time, money, and stress, or give them success, prestige, effi ciency, well times or more business?

Brainstorm a list of the benefi ts you offer.• How can you I do it better than anyone else? How am I unique?• Pick one of the benefi ts. Pick the one that is the most compelling reason for the audience/customer to buy the product, service or concept. • Quantify it. Don’t use jargon; use simple concrete spoken word language. Or, if you want to really grab the listener, paint vivid word pictures.• Describe the emotional impact. Describe how the benefi ts will make them feel. Benefi ts include how you can save an employer time and money, help people feel good, or expand markets. • Give them proof. Provide evidence that support your claims through examples or stories. • Keep listening to them. Don’t just dump out the speech and think that’s it. Pause as you speak. Watch and listen to their reactions and improvise the best responses to their interest. • Create possibility for future contact. Hand them a card and ask for theirs.

Patti Wood is a motivational speaker and communication trainer at Communication Dynamics. She can be contacted at 800.849.3651, or by e-mail [email protected].

17august 2006

continued

“Call metoday!You’lllike theresults!”

Dealers usingthe “I Like

ThatPayment”

programare doing

awesome!”

RAQUEL SMITH, VP SALES/MARKETING

An Effective Voicemail Will Get You the Call Back You Want

DavidKainsts fos ls ms sf fi s

marketing solution

If you talk to Internet specialists about the challenges of their job, one common concern is the lack of response to voicemails left for

prospects. This seemingly simple task is actually quite complicated when you consider all the elements that come into play - timing, your message, the speed of delivery, your phone number, your name, your dealership name, response to the prospects comments when the lead was submitted…. It’s not just picking up the phone and calling the number provided with the lead.

In conducting mystery shops for hundreds of dealerships, we have learned that there is a reason some people should never expect a call back, and we have learned why some people nearly always get the response they request from their prospects. I think the key differences are preparation and delivery. By listening to multiple voice messages, you can detect those messages from Internet specialists who really have your best interests at heart versus those who are going down the tick list of prospects just to complete the task. Like so many things in life if you don’t have time to do it right, it is sometimes best you don’t do it at all. I feel the same about voicemails; best not to leave one if you are going to leave a bad one.

Voicemails are like a free radio spot for your dealership. If you consider that you have an opportunity to leave a 30-second impression with someone who has expressed an interest in your product outside the infl uence of others, then you will realize an effective message is really important. I also feel it is important to leave multiple messages if you do not get a response, and to feel comfortable if you leave professional, well-delivered messages. I hope to cut through the clutter and perhaps become dinner table conversation at the household I am calling. It would make me proud to know that the family is talking about the sales person from my dealership and encouraging the buyer to call that person back.

Let’s break down an effective voicemail and focus on getting the call back you desire:

1. Preparation – Look at the lead in detail. Note the source, the time of day it was submitted, the make, model, trade in and comments, as well as the personal data provided. From

this data you should determine if you have the product they want to buy, whether your dealership likes their trade in, whether they are a previous buyer (cross reference in your DMS or CRM tool) and what you will need to provide in the message to address any comments.

2. Timing – The fi rst call should be right away if the lead came in during working hours and as early as possible if it came in when the dealership was closed. You will want to be sensitive to their actual typed comments if they noted they would like you to call at a particular time or if they note they would not like you to call at work. Otherwise, it is fi ne to call at anytime you deem appropriate for your market. Remember, the key is to contact the customer, and fi nding them is part of the equation.

3. Message – The message is actually quite simple and should cover the information the customer requested when they submitted their lead. Identify the reason for calling, talk about the vehicle, mention interest in the trade and provide a next step you would appreciate them taking to move the process along. You want to convince them that you are there to serve them and it is in their best interests to call you back.

a. Opening – A typical opening line I hear is “Hello – my name is David Kain with Kain Automotive. I am calling….” This is OK, but I feel the customer could shut down too quickly when they hear the equivalent of “Hello, I am a car sales person calling from a car dealership.” Try this opening and see if it works for you: “Hello, I am calling for Julie Smith about the request she made over the Internet for a new Toyota Camry – my name is David Kain with Kain Automotive.” The reason I like this opening is that it focuses on the customer and the fact that you are responding to their request instead of opening with an introduction from someone they don’t even know. This opening may earn you the extra few seconds necessary to get your message across.

b. Reason for the Call – The reason

for the call is often overlooked but it is essential if you hope for a call back. You may want to try something like this “The reason I am calling is to review the specifi cations on the Camry, and make sure I have all the information necessary to provide you with a price and to ensure we apply the best possible manufacturer incentive”.

c. Trade-in Mention – If the customer was kind enough to have mentioned a trade-in, then I think you should work this information into the message. It demonstrates to them that you are on the ball and have read their request, and it provides an opportunity to be different than your competition. I recommend: “I noticed you have a 2002 Camry to trade and I wanted to learn more about it, because I think I have someone who is interested in one, which would help us to give you a better trade value. If you have a digital photo, could you e-mail that to me?”

d. Call to Action – If you don’t provide a call to action, you can rest assured they will not likely call back. Try this: “I would really appreciate a quick call to go over this when you get a chance – I promise it will just take a minute,” or “If you would prefer responding by e-mail please do so and I will provide a prompt reply.”

e. Closing – Thank them for their time and slowly give them your call back number and then repeat it. I cannot tell you how often I have to replay a message three or four times just to capture the number. Your customers may not be as patient. Make it easy and they may reward you with a call.

Even your best efforts may not end with a call back but I can assure you that a well-prepared and well-delivered voicemail will put you at the top of the list when they consider who they should call back.

David Kain is the automotive Internet training specialist at Kain Automotive Inc. He can be contacted at 800.385.0095, or by e-mail at [email protected], or visit www.kainautomotive.com.


Robert Frost wrote, “Two roads diverged in a wood, and I – I took the one less traveled by, and that has made all the difference.”

While there are numerous variations on the Road to the Sale, there are two fundamentally different philosophies to managing the sale of an automobile.

One, the sales person is allowed to operate independently. They discuss all aspects of the purchase terms freely and openly, often even asking the customer questions like:

So what kind of monthly payment are you looking for?What kinda money you thinkin’ about putting down?What’s your budget? What are you comfortable with?

While on the surface it may appear that the sales person is “qualifying” the customer,

they’re actually more likely to DISQUALIFY someone. It’s not about what people want to pay (frankly they would like to get something for nothing) rather it is about, what they are able to pay.

Consider this. How many times has someone told the sales person (and Sales Desk) there is no way I could ever pay more than $425 a month, yet they leave the F&I offi ce at $515.

You have two choices, sell the DEAL or sell the CAR. Premature discussion of fi gures will cost your dealership more profi t than almost any other single component of the sale. Not to mention with today’s scrutiny of dealership’s selling process by AG’s, you can ill afford an audit.

The most practical solution is to establish a centralized system of “control” with the management team. All decisions regarding terms and condition for purchase need to come from the desk to the customer.

This would require that sales managers start

all the worksheet fi gures. And if you are going to start the deal, why not start at all the money. Customers are not going to offer to pay you more than you ask of them. While most will not oblige your request for full price, the good news is some will (5%-10%). If you have not sold a vehicle at full list in the past 60 days, there is only one reason…. you have not asked, statistically someone would have said, “OK, I’ll take it.”

Ask yourself this simple question, “If we aim higher, will we do better?”

You can be a player coach or you can be a disciplinarian. Each approach has merit. The later is much more effective when controlling the sales process at a dealership. Remember to mean what you say when instructing your sales people on your expectations. But there is no need for you to be mean when you say it.

Kirk Manzo is the general manager at Ziegler SuperSystems. He can be contacted at 800.858.6903, or by e-mail at [email protected].

Two Schools of Thought

KirkManzosts fos ls ms sf fi s



21august 2006

It’s Still About SellingMikeParsons



So, you just fi nished sending an e-mail. Remove your hands from the keyboard and take a whiff of your fi ngers. What do you

smell - honey or vomit? Are your fi ngers regurgitating all the information you think the prospect wants to hear? Or, are you meeting the customer’s expectations while coating your message with the honey necessary to keep them coming back at you with more dialogue, moving down the road to an appointment?

Many times I see e-mails where the sales person has provided all the information imaginable and fi nishes with something similar to, “Let me know if I can answer any more questions for you.” Where’s the honey? What reason does the prospect have for responding to you? How much rapport have you built? What are the odds of your setting an appointment? Or selling a car?

Remember when you were in sales basic training? At some point your instructor probably said, “The person asking the questions controls the conversation.” It’s true. Take a question mark and turn it upside down. Of what does it remind you? A fi sh hook? The more fi sh hooks you drop in the water, the more likely you will be to get a bite. In every e-mail you send, try to ask at least two or three questions that will prompt a response from the customer. There are a hundred different questions that could be asked, based on the knowledge you have of the prospect. One example may be, “What benefi ts are attracting you to the Toyota Camry? Comfort and styling, or economical ownership and reliability?” You may also discover what you are competing against by asking, “Aside from the Camry, what other brands or models are you considering?” Additionally, you should be setting the stage for follow-up or asking for an appointment. But, you need to earn it.

Back when you started selling cars, did you ever up a customer, fi nd out what model they wanted, head out on a test drive, start asking the trial closes on the fi nal stretch, and as soon as the words came out of your mouth you got that sinking feeling in your stomach? You knew you weren’t going to get committing answers because you hadn’t earned the right to ask for the business. You had short cut the process by not qualifying the customer, and doing a quality presentation. Maybe they weren’t even on the right vehicle. I think at some point we’ve all had this experience.

Well, in Internet sales you have to earn the right to ask for the appointment, and then you have to earn the right to ask for the business.

Asking quality questions demonstrates your professionalism and your desire to assist the prospect in fi nding the right vehicle with

the right benefi ts. Hence, you earn the right to ask for the appointment.

Mike Parsons is the director of eCommerce at Asbury Automotive Group, Southeast Region. He can be contacted at 866.446.7143, or by e-mail [email protected].

How do you measure wealth - people or profi t? The fastest way to your profi ts is by increasing the people wealth of your

dealership.

Dealers spend hundreds of thousands of dollars each year to drive prospects into their stores and the most successful ones, by plan, have properly trained and educated sales people and sales managers in place.

Dealerships can increase the wealth of their people with three simple steps: 1. Develop people from within2. Offer a career path to every employee3. Equip employees with the tools they

need to succeed

Develop People From WithinWhen dealerships hire or promote someone from within, the process becomes much simpler with better results. When someone is promoted from a sales position to a manager position, the individual is already familiar with the structure; he/she know the way the dealership does business and the processes used; he/she know the values of the organization, what the dealership stands for and everything else about the way the dealership does business. When promoted from within, the new manager is ready to take the next step in established structure, using familiar processes, to continue to drive growth and performance.

Offer A Career Path To Every EmployeeDelineating a career path is the fi rst step in building longevity. Every employee should start as a Greeter. From there, they can move to sales, F&I, sales manager, general sales manager, and so on. A career path not only clearly demonstrates the opportunities employees have with the dealership, but also creates a team environment where everyone

shares a common culture and goals. To complement a career path, dealerships must offer an attractive employment package – a longevity plan that serves as an incentive for employees to stay at the dealership. This can include health insurance, life insurance, spousal benefi ts and the opportunity for substantial fi nancial gain, regardless of the position an employee holds.

For example, if a dealer sets aside $25 for every car delivered by each sales person to be used as an end-of-the-year bonus or as a contribution to a 401K, it creates an enormous feeling of empowerment and motivates all the sales people to perform at their peek levels.

Equip Employees With The Tools To SucceedHaving a career path is only part of the route to longevity and retention. It is essential that dealers help their people develop. To do so, dealers must provide mandatory training and education in the skills needed for every job function for every employee. Training programs cannot be selective for several reasons:1. Training and education builds an

understanding that part of each person’s job is to nurture and develop people below them.

2. Training and education gives every employee the same opportunity to embrace new skills and apply them on an even playing fi eld.

3. A star performer may emerge only after training and tools for success are provided.

4. A “superstar” in his/her current role may not have the mindset or ability to embrace the skills needed to advance, a fact that becomes clear through training.

Training and education programs don’t have to be complex, but be comprehensive

and include motivational, organizational, managerial, sales, service and leadership skills. A host of programs are readily available from auto manufacturers as well as specialized training organizations.

The ROI of Being “People Rich”Does your dealership embrace what is called the “Totem Pole” perspective? Dealer at the top, managers in the middle, and sales people at the bottom; it’s most prevalent in organizations where there is little training, no clear-cut path for advancement and high turn-over. The Totem Pole philosophy adds up to an incredible expense: hiring a sales person who leaves within the fi rst 90 days costs an average of $25,000 to $30,000; hiring a sales manager with the same result costs an average of $80,000 to $100,000.

To build longevity and retain key employees requires a different mindset beginning at the highest level, use the “Funnel.” In this model, sales people are at the top – they are the ones who put everything into the funnel; managers are in the middle, controlling what passes through to the bottom, and dealers are at the bottom reaping the rewards of a well-structured environment that follows effective business processes. In this model, employees are viewed as an asset, and worth investing in to perform at their best. Training and education, career paths and longevity programs are seen as investments with the potential for high returns – profi ts and growth. Using this model, dealers can create an environment that makes them “people rich,” and that leads to happy employees with high fi nancial returns.

Richard F. Libin is president of Automotive Profi t Builders, Inc. He can be contacted at 866.450.6853, or by e-mail [email protected].

How Do You MeasureWealth - People or Profi t

RichardLibin



leadership solution


There are two things in the retail car business that are not going to go away: The overwhelming

majority of today’s customers are payment buyers, and a growing number of customers are using the Internet for information and communication. In this month’s article we will address the fi rst of these two characteristics about today’s car buyers, and discuss how to develop a marketing and advertising strategy that leverages these key attributes to our advantage.

Retail car buying fact No. 1 and why you cannot afford to ignore it.According to a recent study by C.N.W. Marketing Research, 87.4 percent of car buyers surveyed said that the monthly payment was one of the most important considerations in determining their decision to purchase a new or used vehicle. There really is no need for a market study to validate this fact; simply ask anyone who sells automobiles for a living and they’ll tell you the same thing. The customer may say they are price shopping, but the bottom line is before they decide to buy, they’re going to have to agree to the monthly payment. In the heat of the moment, when the customers emotions are running high and they are ready to take ownership of a new or used vehicle, how much a month, and how much out of pocket are all that matters. If you want to get the attention of most car buyers today, you must advertise attractive monthly payments in a way that triggers this emotion and gets them to visit your store. If you don’t advertise attractive competitive payments, the majority of customers today will pass you by as they gravitate to the dealers they feel have the best deals based on the payments they saw advertised.

The Importance of Payments

RaquelSmithsts fos ls ms sf fi s


Often, dealers fear payment advertising because, in order to have a lower payment than their competition, they feel they won’t be able to make enough gross profi t to survive. Don’t scratch your head and wonder how that guy down the street can stay in business advertising and selling cars for the advertised payments he has. He’s probably one of the more profi table dealers in your area (the most successful dealers all advertise payments). Train your used-car buyers and appraisers to determine a good wholesale purchase price that is based on a marketable payment the vehicle can be sold for, not on price. Train your F&I people to search out new sources and methods that reduce monthly payments. Find an ad agency that knows how to advertise payments in creative ways that your competitors do not and commit to a long-term marketing strategy; you will see your sales increase.

If you want to be successful at marketing, just take a look at the world’s best retailers and do what they do. Sam Walton, the greatest retailer of all time, used to tell his managers in his Wal-Mart stores, “buy low, stack ‘em high and sell cheap.” To this day you still see the displays piled high in the aisles of Wal-Marts everywhere with tremendous eye-opening prices. People fl ock to Wal-Marts everywhere because they remember the color TVs for $99, or the name-brand baby stroller priced $40 less than they saw it elsewhere. The funny thing is that the people who are going back to Wal-Mart because they saw the $99 TV or the stroller for $40 less aren’t going there because they need a TV or a stroller, but they’re assuming that if they sell TVs and strollers that cheap, then everything must be a good buy. This is how it works. Call it a loss leader or call it a great deal; if you incorporate this type of advertising into your long-term marketing

strategy, you will see results. By stocking the right inventory, and using the new creative automotive fi nance sources available today, you can outsmart your competition, advertise a lower payment and, in many cases, still hold a gross profi t. Many dealers who do not want to advertise price rely on marketing value, good service, being family orientated or helping their community. Save your money and show your customers these attributes after you bring them in the door with a great price and payment and you’ll double your business.

Take a quick look at Dell Computer, the world’s No. 1 retailer of computers. They advertise and sell complete computer systems ready to go for only $299. Nobody sells complete computer systems for $299 (including Dell, except to people who know nothing about a computer because, although it works, it doesn’t have any of the features the average computer user wants). Dell is a master at upgrading customers using menu pricing, but to get them in the door, Dell always has the $299 special visible somewhere in their advertising. Ask somebody where the best place to get a buy on a computer is, and most will say “you can get a complete system at Dell for only $299.” This is how it is done. Advertise a great payment on a base vehicle with little or nothing down, keep them in stock, sell a few for a loss if necessary, and 90 percent of your buyers will upgrade to more vehicle, or another vehicle, and allow you to make a profi t as long as you treat them professionally, honest and reasonable in your pricing.

Raquel Smith is the vice presidentof sales and marketing for ILikeThatPayment.com. She can be contacted at 866.386.5982, or by e-mail [email protected].

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A Business Dedicated to Making a Difference

JesseBitersts fos ls ms sf fi s

leadership solution

We hear it all the time. It’s typically the second question we are asked right after the requisite, “Is it legal?” The question

that almost certainly follows, whenever we mention to someone that our company is based on Christian principles, is a simple yet genuinely curious, “Why?” It’s a simple question to which there is no simple answer.

Questions like this come with the territory. After all, the secular society in which we live is hardly a steadfast supporter of religious freedoms. With the constant negativity reinforced by the mainstream media, it’s only natural for even the most passive observer of current events to be wary at the concept of faith entering the workplace. After I explain that the laws of the country actually protect Christian-based companies, the conversation progresses to “why?”

“Always be prepared to give an answer to

everyone who asks you to give the reason for the hope that you have.”1 Peter 3:15-16

The short answer is the core belief that we must honor God by observing Christian principles in every area of our lives. It’s a shame to think that a profi t-driven company must inherently exclude faith and morality from the workplace. Hypocrisy and greed are never good business practices. We even incorporated this conviction into our company’s purpose statement. It reads: “Serve customers with excellence, manage assets with diligence, build team members with care, and honor God in all we do.”

Does anyone take issue with “serve customers with excellence?” Of course not. Same goes for “manage assets with diligence” and “build team members with care.” These are actually fundamental Christian principles. When executed properly, they provide a positive experience for employees and customers. Can you imagine a customer complaining

about being served with too much excellence or a team member griping about being supported with too much care? The fact is that these core Christian principles worked for Jesus Christ 2,000 years ago and they continue to work for organizations of all kinds today.

“Whatever you do, work at it with all your heart, as working for the Lord.” Colossians 3:23

As our business continues to grow, I want our company to help make a difference. Not just in our bottom line, but in the lives of our employees, customers and vendors. It may sound overly optimistic, but I believe we really can make a difference. I believe we can achieve this by honoring God in everything we do - all week long.

Jesse Biter is the president and CEO of HomeNet Inc. He can be contacted at 866.239.4049 or by e-mail [email protected].

29august 2006

Actions Speak LouderThan Words With

Women Car Buyers

DeborahRenshawsts fos ls ms sf fi s


Last month I outlined a few suggestions for dealerships to consider on how to improve their verbal communication skills with women

buyers and create a better buying experience for women. Communication can be verbal and non-verbal. Let’s look at some non-verbal ways to communicate with women effectively.

1. Smile and look women in the eyes when you greet them. Keep your gaze above the shoulders.

2. Pay attention to her non-verbal “cues.” She came to shop for a vehicle and wants to feel “in charge” - try not to rush to open doors and be the gentile escort. Ask her if she would like you to get the door for her. Being the “gentleman” is appropriate behavior on a date; however, these gestures may undermine her confi dence and dilute her feeling in control during the sales process.

3. Provide a nice assortment of women’s magazines in your customer areas.

4. Have separate, clean and pleasant restroom facilities that include a changing table for young mothers with small children. Keep it well stocked with supplies. Go the extra mile and

stock a few “extra necessities” to show you appreciate their “waiting time.”

5. Women want to be respected as savvy consumers; support and educate her during the sales process, rather than take the role of the “know-it-all” expert car guy.

6. When women come in to your dealership with their husbands, be sure to greet, speak and make eye contact with both husband and wife equally, rather than directing your questions and comments to the husband. In many cases she will actually be the one to make the fi nal buying decision.

7. Go at her pace during negotiations. Rushing her to close the deal “today” might backfi re; women generally take longer to make a buying decision. However, once satisfi ed with their purchase and experience with your dealership, women are typically more loyal than their male counterparts.

Women purchased 50 percent of all vehicles sold in 2005, and represented approximately $425 billion dollars in annual revenue for new-car dealerships. Women consumers are a huge revenue opportunity for your dealership. Get busy to gain a larger market share in your local market.

• What are you planning with your marketing and advertising budgets to attract, sell, retain and increase loyalty with women consumers at your dealership?

• What, if any, specifi c training and education is your dealership providing for you and your sales, service and fi nance departments to increase your dealership’s skills with women buyers?

• Do you have a program to recruit, hire and train women for sales, service and fi nance positions?

• Have you mined your DMS to identify and segment your female customers and create retention or loyalty programs?

• What kinds of women’s initiatives are you working on for 2006?

In part three of this series, I will discuss additional ways to increase your results with women.

Deborah Renshaw is the highest-ranked female professional NASCAR race car driver. She can be contacted at 866.476.4389, or by e-mail [email protected].

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Scott’s Individualized Consultation Transcripts, Part 3

ScottJosephsts fos ls ms sf fi s

marketing solution

John (real name omitted to protect the store’s identity) is the owner of a Chevrolet dealership on the East Coast. His customer

satisfaction scores are above average, but sales are fl at.

His television ads were bringing in some business, but weren’t conveying the uniqueness and high quality his store has to offer. They were also using direct mail, but felt the list contained a lot of “deadwood.”

In this consultation, I gave John a wide range of innovative ways to approach prospects, showed him how to resell existing customers, and told him how to word a compelling message to convert his “deadwood” into live buyers.

If you want to reach more prospects or convey a stronger and more compelling message read this transcript.

(Continued from July 2006 issue of AutoSuccess…)

Scott: In your opinion, why have sales fl attened out?

John: I’m beginning to think we’ve hit our potential. I’m not sure this market will generate any more sales.

S: OK. Your sales are still double compared to the prior owner, so you’ve grown your customer base by quite a large margin in the last two years. If the new business continues to come in at the same rate, why aren’t you selling more cars over the prior year? What I mean by that is every dealership has a percentage of repeat business and referrals. If you have a lot more customers, you should be getting a lot more repeat and referral business to add on to all that new business that has remained consistent. Your satisfaction scores are high; wouldn’t you agree that even if the amount of new business you sell each month has fl attened out you should still be selling more cars?

J: That’s a good question. I agree we should be selling more cars.

S: Exactly. What most dealers don’t realize is that, regardless of their satisfaction scores or how long they’ve been in business, they lose over 50 percent of their active customer base in less than fi ve years. Satisfaction scores do

not mean a thing when it comes to sales or your bottom line. Getting these people to come back and buy from you is all that matters. If you’ve doubled your sales and you continue to bring in the same amount of new business each month but sales have fl attened out, then you’re losing as many previous customers as you’re gaining.

J: So, what can I do to fi x that?

S: Good question. The fi rst thing you have to do is change your mindset.

J: How do you mean?

S: Well, it seems to me that you do a very good job of keeping your staff focused and excited about selling cars every day. That’s probably one of the main reasons you were able to double sales so quickly. In my opinion, you are so focused on selling a car today that you’ve lost sight of the big picture or at least what it takes to really get where you want to be. What is the main reason you want to sell more cars?

J: So I can make more money. Plus, I take a lot of pride in what I do. I want to be considered the best Chevrolet dealer in the Northeast.

S: That’s a big goal. What has to happen in order for you to know you’ve accomplished that?

J: Well, it starts here. I’d have to have the highest market share in my immediate market. Customer satisfaction scores are a must and we should continue to grow in sales and profi t every year. In down times I want to be the one dealer that continues to grow and get the job done regardless of the market or economy.

S: So really selling more cars is just one of the ways to accomplish your main goal, and that’s to see substantial growth every year, right?

J: Yes.

S: That’s what I mean by changing your mindset. There are three key categories I recommend you focus on that will have more impact on your dealership’s performance than anything else you can do: your marketing strategy, your mindset and your ability to optimize and get the highest and best result from a situation, action or effort.

Let’s start with your mindset. You only have three ways to accomplish your goal of growing your dealership. In fact, there are only three ways to grow any business.

First, you have to increase the amount of people that buy from you. Right now you’re trying to do that but almost all of your effort is in trying to acquire new customers. When we get into your marketing strategy and your ability to optimize, we will get into more detail about all the ways you can grow your active customer base.

The second way to grow your dealership is by increasing your average transaction value. We need to fi nd ways for your customers to pay you more money.

And the third way is we have to increase the frequency of your active customer base spending money with you. We have to get them buying from you more often.

In all my seminars or the consultations I do with my private clients, changing their focus and mindset to growing these three goals always has the biggest impact.

Earlier you told me you had right at 8,500 previous customers and you average just over $2,000 per copy when you sell a car, right?

J: That’s correct.

S: Do you know how often people come back in and buy from you?

J: I really don’t know. I would guess about every three and a half years.

S: I assume that’s just on the sales side, and not parts and service, right?

J: Yes, just for sales. What if they’ve bought more than one vehicle from us?

S: Then the number would be higher. For the sake of keeping it simple, let’s just talk about sales and the one vehicle for a moment. One year divided by 3.5 comes to almost .29. That means your customer frequency average is .29 times per year.

Let me show you a quick formula I show all my private clients...

Over the next several months the rest of this private consultation will be printed. If you would like it in its entirety now please e-mail Scott Joseph at the e-mail below.

Scott Joseph is the president of J&L Marketing, Inc. He can be contacted at 866.429.6846, or by e-mail [email protected].

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AutOrigination is a registered trademark of DaimlerChrysler Corporation. Chrysler Financial is a business unit of DaimlerChryslAutOrigination is a registered trademark of DaimlerChrysler Corporation. Chrysler Financial is a business unit of DaimlerChrysler Financial Services.er Financial Services.

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What Your Employees Don’t Know Can Hurt YouThe Link Between Education and Compliance

CharlesArrambidests fos ls ms sf fi s

leadership solution

Every point of contact between your dealership and consumers is an opportunity to make a sale and satisfy another

customer. Unfortunately, these points of contact come with the risk for compliance-related errors. How can you increase your opportunities for success and decrease the likelihood of errors? One way is by providing your employees the training and certifi cation they need.

Education and complianceFrom a compliance perspective, what your employees don’t know can hurt you. You may have sound business practices in place, but if your employees don’t know how to follow them, you could have compliance gaps. Employee education is a critical part of ensuring compliance in your sales and F&I operations.

How do you determine whether your employees have received adequate training? I recommend conducting a self-audit of your sales and F&I areas. (See the July 2006 AutoSuccess for tips on conducting self-audits.) During your self-audit, you may discover a compliance gap. The next step is to determine whether insuffi cient training is to blame.

For example, suppose customer fi les are sitting out in the open throughout the dealership. Why aren’t employees taking appropriate measures to safeguard customer information? Do they know they need to protect that information? Identify what has to change and develop a training plan to change it.

Training resources Many formal training programs are available, but you do not have to rely completely on them to close every gap. There are several excellent resources, some of which don’t cost a dime.

Free informationAvailable at no charge, these consumer education materials will give dealership personnel a good introduction to vehicle fi nancing:

• NADA’s Understanding Vehicle Financing booklet is available in English and Spanish at www.nada.org.

• NADA’s Financing 101, available at www.nadaguides.com, offers extensive information on purchasing new and used vehicles.

• Americans Well-informed on Automobile Retailing Economics (AWARE) offers auto fi nancing information at www.autofi nancing101.org.

Other sources Here are some additional sources you can check to obtain information about legal issues affecting dealerships, help identify training programs that work and those that don’t and much more:

• State automobile dealer associations – Many offer educational materials, training programs and news about issues affecting dealerships.

• 20 Groups are good sources for fi nding training solutions.

• Independent consultants are available to assist in your training and certifi cation efforts.

• Your state attorney general’s Web site – Occasionally visit this site for the latest developments (check the press releases). You may read about a settlement reached with an auto dealer or staggering fi nes assessed against a dealer for alleged unfair sales practices.

• Your insurance company – Your insurance company may be a great resource for training information.

Continuing education Employees are the backbone of your dealership, and how you train and develop them is paramount to the success of your business. You work in such a dynamic environment – consider how quickly things change in F&I and sales. Keeping your employees on top of those changes requires ongoing training and education. Give your employees what they need to succeed and you will be rewarded.

What’s ahead?Frustrated by the publicity, costs and delays associated with the court system? There is an alternative: binding arbitration. Is it right for your dealership? In September, I will give you the facts about binding arbitration.

This information is presented for risk management purposes only. It is not to be construed as legal advice or legal opinions. Consult your legal counsel for assistance. Universal Underwriters Insurance Company, its affi liates, agents and employees assume no responsibility or liability for making this information available.

Charles F. Arrambide is assistant vice president and associate risk offi cer for Universal Underwriters Insurance Company. He can be contacted at 866.347.5019, or by e-mail at [email protected].

Give your employees what they need to succeed and you will be rewarded.

33august 2006

Record Sales Don’t Mean Much, Record Profi ts Do

RobMancuso

No one knows better than automobile dealers that it’s not how many you sell, it’s what you make.

With the average dealer generating over $30 million in sales and $4 million in gross profi t, it’s all about expense control and revenue retention. How many times has a dealer been shocked when getting the fi rst look at his or her fi nancial statement, having just fi nished a record month in volume, only to see expenses taking away what should have been record profi ts?

Look at inventories when considering improvement opportunities with your expense control initiatives. With new vehicles averaging almost $30,000 per unit and used vehicles approaching $15,000, fl oor-plan expense can quickly get out of hand.

The counterpoint to controlling your inventory investment dollars is making sure you have what the customer wants, when they want it. With the genesis of inventory optimization tools, a new approach to capital effi ciency is possible – without the need for advanced analysis or computing skills.

When considering an inventory optimization tool, several key elements should play into your decision:

• Learning curve – Like any other process, if your team struggles with getting up to speed, you’re losing effectiveness and impact.

• User interface – Since most managers aren’t computer geeks, the user interface should be inviting, simple to understand and intuitive.

• Data targets – Sometimes, too much information is worse than no information. Make sure that the system you’re considering gives you the information you need to reach the objectives at your dealership. For many, these include identifi cation of best-selling units, identifi cation of highest-grossing units and identifi cation of quickest turning units.

• Retrospective versus prospective data points – reviewing history is of value, but predicting future needs is critical. Make sure your choice does both, based

not only on past sales, but also taking into consideration market conditions and opportunities.

• Acquisition/disposal guidelines – a state-of-the-art inventory tool will give you real time suggestions on what vehicles to order or purchase, and which units to dealer trade or dispose of.

For many years, successful dealers have depended on experienced and knowledgeable managers to make inventory investment decisions. For most, this has been a successful approach. Today, however, with the increased number of models, occasional pressure from manufacturers, rebates and incentives, and expansion of off-brand offerings in the used-vehicle department, the equation is more complicated than ever before, and even the most seasoned manager can benefi t from adding a little science to the art of inventory control.

In addition, as the number of multi-point organizations continues to grow, most dealers fi nd the challenge of replicating their management staff to be one of the most diffi cult hurdles to overcome. Utilizing analytical tools can often provide the foundation for new managers to grow into their positions.

Record sales don’t mean everything; record profi ts do. Make certain you’re doing everything you can to retain the maximum level of gross profi t that you’ve worked so hard to generate. An inventory optimization tool is a critical fi rst step in that process.

Rob Mancuso is the senior vice-president of marketing/communications for Resource Automotive. He can be contacted at 866.386.5991, or by e-mail at [email protected].

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> Scott Haynes, Penske Chevrolet and Honda


leadership solution


Key Performance Indicators

HeatherConarysts fos ls ms sf fi s

marketing solution

If you’re a regular reader of AutoSuccess Magazine, you don’t need to be told that you need a Web site, or why you need it. Most

likely, you’ve already invested money on your dealership’s Web site, but do you know if it’s really making you money? How can you tell?

Using real measurements, called “Key Performance Indicators,” to track your Web site’s activities is the next step to a more profi table Web presence.

A Key Performance Indicator (KPI) is used to defi ne a goal and measure your progress towards it. In basic terms, a KPI is a gauge that tells you how well your Web site is performing for you.

In the case of a dealership Web site, most sales are not typically made directly from the Web site. Because of this, one of the most important KPIs to start measuring and tracking is conversion rate.

The conversion rate on your Web site is defi ned as how many customers complete the action you wanted them to take on your Web site.

Some examples of conversion rates you could track are:

• The number of customers who submitted leads on a particular vehicle

• The number of customers who requested permission-based marketing from you (for example, an e-mail newsletter)

In the fi rst example, the number of customers who submitted leads on a particular vehicle, you need two pieces of information:

• Beginnings of the desired action: The number of people who viewed the page for that particular vehicle

• Completions of the desired action:

The number of leads you received on that vehicle

To calculate the conversion rate, you divide the number of completed actions (leads) by the number of people who started the action (views). For example:

Five leads ÷ 20 views = 25 percent

Which actions do you want your customers to take on your Web site? Do you want more leads, more job applicants or more service appointments scheduled online? Do you want to increase fl oor traffi c, move aged parts and vehicle inventory or increase your accessories sales?

There is no right or wrong answer to deciding which KPIs to use. It is ultimately what information is important to your dealership.

If you need some inspiration, e-mail me for a list of KPIs we use to track how our own dealership’s Web site is performing.

To calculate your conversion rates for each item, you will need reports for both online and offl ine activities.

For online activities, you will need statistics from your Web site. Most Web site providers

should be able to give you basic statistics (how many people viewed each page, how many leads were submitted, etc.) Some Web site providers offer a more advanced statistics package that shows how people travel through your Web site, how long they spend on each page, and other data.

Depending on your host, you may be able to generate these for any length of time (daily, weekly, monthly). How long of a span you use depends on how much traffi c your Web site gets – if you’re a high-traffi c site, you may want to gauge your performance weekly; if you’re a mid-traffi c site, you might want to track monthly. The most important thing is to pick a time frame that works for your dealership and be consistent with it.

Tracking the conversion of offl ine results is important as well. If you offer printable coupons, for example, you would need a count of how many customers redeemed a coupon, compared against how many customers downloaded the coupon.

There is often a multitude of reports and information available in dealerships. Which sources of information you use will vary depending on which KPIs you decide to track.

The best use of your conversion rate analysis is not to compete against other dealers or an industry benchmark, but to compete against your own previous statistics. Try to make continuous improvements from your own numbers, and you’ll soon be able to see the results.

Next month: Using your KPI analysis to make improvements to your Web site based on good decisions.

Heather Conary is a Web developer at Downeast Toyota-Scion-Buick. She can be contacted at 866.386.4914, or by e-mail at [email protected].

There is no right or wrong answer to deciding which KPIs to use.

10 GreatInvestigative Questions

JeffMorrillsts fos ls ms sf fi s



Just as a doctor can’t cure a patient without asking “where does it hurt,” you can’t properly serve customers’ needs until

you have a thorough understanding of their situation. Ask the following questions early in the sales process to get the insight you need. In response to these questions, customers often give much more information than you asked for, which gives you key information to select the right car and close the sale.

1. “Is this your fi rst time in?”You’ll learn whether customers are already working with another sales person, and how familiar they are with your company and sales system. Wouldn’t you like to know early on that someone already bought four cars from your dealership over the years?

2. “What motivated you to come see us today?”Consider just a few of the reasons why folks want a new car: accident, lease-end, breakdown, boredom, fuel bills, etc. This question helps you fi nd hot buttons.

3. “What’s the most important thing to you in a vehicle?”This will help you pick the right vehicle and tailor your walk-around. After the customer responds, always follow up with “What does ________ mean to you?” If the most important thing is “safety,” you can imagine a customer who thinks “safety” means “speed” (so they can get out of the path of trouble quickly).

4. “On the car you might trade, how much have you spent on repairs/maintenance in the last year?”Since repair costs drop to near-zero on a new car, you can later close the sale on the savings. Divide the customer’s number by 12 and you can show that the customer’s cost of ownership will remain the same or diminish even though the payment might be going up.

5. “Are you looking at a newer car because you deserve it, or for some other reason?”We tend to gear our sales presentations towards all the rational reasons why

someone should buy a car from us, and that’s fi ne. But don’t forget that there are other valid emotional reasons that may be even more compelling to someone than the rational reasons.

6. “Do you prefer light or dark colors?”Rather than asking for a favorite color, this question increases the likelihood that you’ll have something in stock that fi ts the customer’s taste.

7. “How have you been disappointed with prior experiences purchasing cars so I can make this one more pleasant for you?”You’ll learn how to avoid doing anything that the customer fi nds objectionable (going to see the manager too many times, taking too long to appraise the trade, etc.) Also, this question helps the customer discover that buying a car is more than just price; it’s about the quality of the experience. That might help you later during closing.

8. “What kind of fuel economy are you enjoying or suffering in your current vehicle?”This question is usually good for a laugh. You’ll also gather info that may help you select the right vehicle/engine and later close the deal on fuel economy.

9. “What is your monthly budget range for a car?” This is far superior to “What do you want your payment to be?” which, of course, would be “zero.” You will learn a lot about a customer’s fi nancial situation.

10. “Are you interested in a new car or one with a few miles on it?Better than “New or used?” because it gets a new car customer thinking about demos, program cars and pre-owned, which increases the number of ways you can fi t a budget.

Jeff Morrill is co-owner of Planet Subaru in Hanover, Mass., and Planet Chrysler Jeep in Franklin, Mass. He can be contacted at 866.872.8699, or by e-mail [email protected].

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37august 2006

People BuyFrom People

MarkTewartsts fos ls ms sf fi s


As a sales professional, it can be an eye-opening experience when you go shopping for yourself. Weaknesses in other’s presentations can teach

us lessons about how to strengthen our own. One common theme you might notice is that many people don’t seem to recognize that people don’t buy products or services. People buy from people.

People buy solutions to perceived or real problems. Good sales people assist buyers in solving their problems through emotions, visual imagery, and proper logic and people skills. The one component of sales that makes everything come together is people skills. You may be great at product knowledge, presentation, demonstrations or closing skills, but none of those things will matter if you don’t create a relationship with your customer.

A catalyst is an agent of change. There’s not a better way to describe sales people. When your customer begins to shop, they are beginning a process of change. If you are the sales person who makes the sale, it will usually be because you were better at assisting the customer to make that change. Let’s look at some ways to make those changes happen in a positive way that allows your customer to buy. Take notice of the phrase “allows your customer to buy,” rather than “you selling the customer.”

Imagine, for example, going to shop for a hot tub. You go to a nationally known store that has obviously conducted sales training for their sales representatives. The sales person has a very specifi c sales presentation. He also has considerable knowledge about his product and the competing products. The sales person is enthusiastic and energetic. In other words, he has a lot of good things going for him.

However, the sales person has a fatal fl aw in his approach that probably costs him lots of business. The sales person tries very hard to be a sales person but he misses being just a person by a mile. What’s the difference?

The sales person begins to immediately show you the hot tubs and begins his process without taking the time to ask any questions and build a rapport that creates trust. When someone starts off a sales process in this manner, they are beginning what could be called the “Spray and Pray Method of Selling.” They spray out a presentation and pray that the customer gets excited about something in their verbal

barrage about the product. They have no idea what that something might be.

This method lacks specifi cs, empathy, warmth, personalization, communication and listening skills, just to name a few problems. Imagine a different approach. A sales approach where the sales person would have asked the some of the following questions:

• “Who will be primarily using the hot tub?”

• “How many people will usually use it at a time?”

• “Will it be used for recreational purposes, therapeutic or both?”

• “Will kids be using the hot tub?”• “Do you currently have or have you had

a hot tub in the past?”• “If so, what did you like and dislike?”• “Where will the hot tub be located?”• “What kind of foundation will it be

on?”• “Will the area that the hot tub is located

at be enclosed or open?”• “What is the most important thing to

you about a hot tub?”• “How long have you been shopping for

a hot tub?”• “During this shopping process, what

has been the No. 1 thing about a hot tub or any features that has excited you the most?”

• “During your shopping process, has there been anything you may have wanted that you have not seen or anything in particular that has disappointed you?”

You can think of a ton of questions that would allow specifi c answers and enable the customer to experience the change they are looking for. You can use the keywords and answers the customer supplies you to laser in on what they want to accomplish, using specifi c examples that involve active and present-tense ownership imagery.

When you are doing these things, you are relating to your customer in an empathic and personal way that separates you from all the other sales people. Never forget that you were a person before you became a sales person, and that people buy from people.

Mark Tewart is the president of Tewart Enterprises. He can be contacted at 866.429.6844, or by e-mail [email protected].

www.worlddealer.nete-mail: [email protected]

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BrianEpro

Effective E-Marketing Effective E-Marketing“The horse is here to stay, but the automobile is only a novelty - a fad.” This was the advice the president of the Michigan Savings

Bank gave to Henry Ford’s lawyer, Horace H. Rackham, when he sought counsel about investing in the Ford Motor Company. Rackham chose to ignore this advice and bought $5,000 worth of stock, which he sold several years later for $12,500,000.

Of course, hindsight is 20/20. Knowing what we know now, it’s easy to shake our heads in disbelief at those folks who turned their backs on an obvious winner like the automobile. Horses were dirty, temperamental and expensive to maintain. The automobile offered unprecedented cleanliness and reliability. Picking that winner is a no-brainer, right? The truth is that breaking out of the status quo and embracing “the next big thing” is not always easy.

When it comes to e-marketing, are you the bank president or Horace Rackham? Auto dealerships rely on printed direct mail and e-mail marketing to build market awareness and to advertise sales events, special fi nancing rates and new inventory to prospects in their areas. But when it comes to adopting a more sophisticated, targeted e-marketing strategy, some dealers are still hesitant to take the leap. While some initial resistance is understandable, it’s important to recognize the signifi cant advantages that e-marketing offers over more traditional methods:

Better target your marketing campaigns.Effective e-marketing starts with building a robust list of customer and prospect e-mail addresses. When people call your dealership or stop by your showroom, ask them for their e-mail address. Most will be happy to oblige

if they get some value - discount coupons, advance notice of sales, etc. - in return. Once you’ve built your database, you can start putting those e-mail addresses to effective use. E-marketing service providers will not only help you to develop targeted e-mail campaigns, but they will measure and report on how well each campaign is received. This way, you can fi ne-tune and better target your online marketing efforts over time to most effectively reach the limited pool of prospects in your area.

Get more bang for your buck.Direct mail is one way to keep in touch with your customers, but it can be expensive. With e-mail marketing, you can stay in regular touch with your customers and prospect base by sending targeted e-mails or e-newsletters that cost pennies on the dollar compared to printed direct mail.

Cut through the clutter.Upon discovering the comparatively low cost of e-mail marketing, many overzealous dealers started to send mass e-mails to customers and prospects on a daily basis. Experience has shown that this tactic tends to backfi re. Too much e-mail gets lost in the clutter, and, if poorly executed, can do more harm than good. Each time you hit the “Send” button to mass distribute a wordy, homegrown e-mail, as many as 10 percent of recipients are likely to respond by opting out of future e-mails from your dealership. If you keep this up, you’ll have lost most of your e-mail marketing data asset within a year.

Effective, professionally developed e-communications cut through the clutter by providing rich, relevant content that recipients actually look forward to receiving. How do you know if your e-mail marketing is working? First, opt-out rates will stay below

1 percent. Second, recipients will respond to the e-mails, visit your showroom and spend their auto dollars at your dealership.

Reach more of the right people.There’s a documented shift taking place in how and where consumers receive marketing messages. As a result, businesses, including auto dealerships, need to rethink how and where they spend their marketing dollars. People will always read newspapers, right? Actually, newspaper readership is on the decline. Only 41 percent of people between the ages of 24 and 31 read the newspaper daily. For dealers who rely heavily on newspaper advertising, this means that six out of every 10 people in a key demographic are not being exposed to your marketing messages. Where’s that other 60 percent? They’re online. Over 80 percent of U.S. adults between the ages of 18 and 49 actively use the Internet.

Like the automobile, e-marketing is much more than a passing fad; it’s a sound business investment. Many dealers have already embraced e-marketing, mastered the basics and are now in the process of taking their efforts to the next level. As they expand and enhance their e-marketing programs, many dealers are turning to e-newsletters. Hooking recipients with engaging industry and lifestyle content, e-newsletters enjoy remarkably high open rates and low opt-out rates—typically in the low single digits. Plus, they provide effective built-in mechanisms by which recipients can indicate interest in booking service or purchasing a vehicle—making it easier than ever to close the sale.

Brian Epro is director of the automotive services group with iMakeNews, Inc. He can be contacted at 866.393.3919, or by e-mail at [email protected].



marketing solution


SeanWolfi ngton

The “Be” AttitudesThe “Be” Attitudes


leadership solution

To be or not to be. That is the question.Leadership involves being.

People willingly follow leaders who know who they are and where they are going. Therefore, in order to effectively lead others, you must fi rst evaluate your own attributes and strive to be what it is that you desire from others.

If you know a successful person, odds are that you desire to be like him/her, not materially, but interiorly. The defi nition of a successful leader is someone who possesses attributes that refl ect higher levels of motivation and moral development which gives them the ability to affect real and intended change. Now insert “attitude” in place of “attribute” in the above defi nition, and you will be thinking in the right direction. We are what we think, so having the right mindset transcends into the right attitude and forms us into the person we

truly desire to be, which ultimately enables us to effectively lead others to a higher place while reaching our desired goals.

Here are the “Be” Attitudes of Leadership:

BLESSED is the leader who considers leadership an opportunity for service. The greatest leader in the world came not to be served, but to serve.

BLESSED is the leader who lays a solid foundation upon which to build. A leader whose philosophies are founded on solid virtues will lay a foundation for your dealership, department and family that will not be shaken.

BLESSED is the leader who has not sought the high place, but who has been drafted into service because of his ability and willingness to serve.

BLESSED is the leader who lays down his

own interests for the benefi t of others. An effective leader seeks the best for those he serves, even at the greatest sacrifi ce.

BLESSED is the leader who develops leaders while leading. Leadership involves always being available to mentor those who are attempting to follow.

BLESSED is the leader who does so by example. Integrity is the quality of being complete, being bound by fi rm adherence to a code of ethics and morals. Teach these truths to others, use words when necessary.

BLESSED is the leader who walks with his group and feels the pulse of his followers. These connections will allow a good leader to correctly interpret the signs of the pathways that lead to success and results.

BLESSED is a leader with clear vision. Always develop and communicate a crystal-clear, long-term vision of where the organization is going and know exactly what is needed to attain the vision. Keep your head in the clouds, but your feet planted fi rmly on the ground.

BLESSED is the leader who has not seen, but believes. Be persistent, do not waiver if you have not yet achieved your desired results. Just as a precious stone cannot be polished without friction, nor can we be perfected with adversity.

Leadership is a higher calling. It involves a dynamic journey based on mutual infl uence and common purpose between leaders and collaborators, in which both are moved to higher levels of motivation and moral development as they affect real, intended change. Leadership begins with developing an attitude of being all that we ourselves desire to be. Believing is becoming. This positive attitude will be the difference that makes all the difference in the success of your organization and your life. Be a transformational leader. Being all that you should be will inspire others to follow you and to transcend their own self-interest for the good of the organization. Leading others to a higher place will ultimately be your success in this world, and your glory in the next.

Sean Wolfi ngton is the owner of BZResults.com. He can be contacted at 866.802.5753, or by e-mail at swolfi [email protected].

Time is a precious commodity in every dealership. This holds especially true for the business offi ce, where customers seem to be

in a frantic rush to leave as soon as they enter the room. Learning how to overcome this issue plays a big part in ensuring compliance and maximizing profi t.

Preparation is the KeyThe fi rst step in managing the time function is educating the sales staff on how long it takes to complete a presentation. From start to fi nish, a presentation should take 30 minutes. If sales people tell customers the process only takes fi ve minutes, then they are setting the dealership up for failure. It is also important to explain the other implications that occur when a customer does not receive a full presentation. Discrimination and proper pattern of practice should be mentioned during this conversation.

Preparation is the next - and perhaps the most important - key to effectively managing time in the business offi ce. Make sure all paperwork is properly fi lled out and that all required documentation has been gathered before meeting the customer. Print all forms that are generic to the deal. In most states, this means everything with the exception of the title application, purchase order, product contracts, and retail or lease contract. All state, dealership, factory and delivery paperwork can be printed beforehand. A big word of caution on pre-printing paperwork: The information received from the salesperson must be correct. If a wrong name, address, or any other detail slips through, the time spent preparing will have been lost.

Practice Makes PerfectA business manager must continuously practice to reach and maintain selling success. In addition to boosting confi dence, practice also increases speed and consistency. However, do not use customers as an opportunity to practice. Instead, practice with a co-worker, manager or family member.

Time with CustomersTry to eliminate having customers sit in the waiting room before their turn in the business offi ce. This prevents customers talking to each other and “cooling off” on their purchases. If the business offi ce is backed up, have the sales people start the delivery process with the customer. This should take 30 to 45 minutes, which should give the business offi ce time to catch up.

Go to meet customers instead of having the sales people bring the customers to the business offi ce. This starts the process on the right foot. Start by introducing yourself, then state your responsibilities and inform the customer of the time frame needed to complete the transaction. This type of introduction allows customers to come to your offi ce with their guard down.

Managing Time in the Business Offi ce

TonyDupaquiersts fos ls ms sf fi s

f&i solution

Time is money. Taking a few extra steps to streamline your F&I process for your customers will really pay off.

Tony Dupaquier is the director of F&I Training for the Automotive Training Academy. He can be contacted at 866.856.6754, or by e-mail at [email protected].

41august 2006


Rick Case Auto Group - The Value of TechnologyHow Technology Enhances Our Dealerships, Employees, and Community

PhilCohen

A different dynamicThe largest automobile complex in the world. The Rick Case Group boasts a complex

that comprises over half a million square feet, houses 1500 vehicles inside under the showroom light, and has an eight-pump gas station. The dealership serves as a voting precinct for 3,800 people for local and national elections, includes a Clerk of Courts offi ce where you can pay your traffi c ticket, renew your drivers license, obtain a marriage license, and then hop next door to the chapel for the wedding. Yes, you read right - about 40 to 50 people get married here each month after they get their marriage license from the clerk’s offi ce next door. From the startThis amazing enterprise began to emerge when Rick Case sold his fi rst car at the ripe age of 14 years old. It was an old “fi xer-upper” which he purchased, tweaked and then sold for a profi t. Rick claims he made more on that one car than he had made all year as a paper delivery boy. By 1965, Rick had opened his fi rst Honda vehicle franchise, and established his stature as having a keen eye for how innovation can lead to opportunities.

Rita Case was raised in the car business - her father was the fi rst Honda dealer in the U.S. When Rita graduated college, she began to manage her father’s dealership. Rick and Rita met while attending a Honda NADA 20 Group Meeting in 1978. The two were married in 1980 and the rest is history.

Along their journey together, Rick and Rita Case have built one of the most successful automobile dealership groups in the U.S., spanning across Florida, Georgia and Ohio. They have earned the respect of their customers, and gained a reputation as being a dealership founded in the core value of personal customer service.

The values and practices of Rick Case Automotive Group refl ect and convey the beliefs and values of Rick and Rita Case and what they aspire for their employees to be. At Rick Case Automotive Group, we

always strive to assure the consumer that our actions are consistent and supportive of these ideals.

Technology and our “digital native” customersThe idea of “go look customers in the eye” is no longer effective in a fast-moving dealership that is populated increasingly by people accustomed to building and maintaining relationships online and using the Internet to assess a vehicle’s quality and a dealership’s reputation. The CRM at the Rick Case Group is on the cutting edge of technology. This technology, coupled with a targeted e-mail campaign, has had a huge impact on helping us to communicate to our customers. The e-marketing campaign, or online tutorial, performs as a mini-Web site that we can customize according to our special criteria. This marketing technique allow our customers to view our inventory, see our specials, build a new car, apply for credit approval, and even more… all online. This interactive message, which we send via e-mail, engages the new “digital native” consumer, and facilitates in helping us communicate our message. The best part is that everything the customer does is instantaneous, tracked, and automatically calculated and reported by our digital traffi c control system.

Technology and our teamTechnology has enhanced our productivity and has empowered all of our employees.By providing accessible technology, Rick Case dealerships foster an environment that facilitates instant collaboration and communication among all employees within our organization - whether it be the lot attendant or the general manager. Technology provides an instant channel of communication with tools like e-mail, access to the OEM sites and a bird’s eye view into our competition.

Technology also generates many opportunities for our team. Our Web site is really a marketing machine that generates a tremendous amount of daily leads, and is a critical component that generates phone traffi c, showroom traffi c and many Internet leads. Once we receive these leads, our CRM greatly assists us with our follow-up, and the

best part is that it does this automatically, communicating the right personalized message to the customer no matter what stage in the sales or service process they are in. The automation that our system provides for us allows our team to focus on the most important daily revenue-generating tasks like attacking the phones for appointment setting and customer satisfaction follow-up calls.

Technology and our communityOur founders, Rick and Rita Case are unique because they differentiate themselves from the competition by their visibility in the community through their extensive charitable donations and fund-raising ventures and generosity with relief funds for those who are struggling. The technology that our dealership employs for our sales and marketing efforts is powerful. We have learned to repurpose these tools to deliver community-service messages in campaigns such as Rick Case Bikes for Kids, which provides thousands of bikes each year to needy children during the holidays.We are able to send out bulk e-mails to all, or just a specialized group, of our dealership database of customers, inviting and encouraging them to support the different causes. Literally, within fi ve minutes and a few clicks of a mouse, we are able to select a complete list of our most valued customers and send them a personalized invitation to join us in reaching out to help those in need.

Case in pointUnprecedented changes in technology over the past few years have led to fresh patterns of thinking in our prospects and customers. This new generation of customers harnesses the power of technology and the Internet to purchase and service their automobiles. We have found that this group of connected customers has been an enormous driving force for positive change and success within the Rick Case Automotive Group.

Phil Cohen is the national director of eCommerce at the Rick Case Automotive Group. He can be contacted at 866.473.7901, or by e-mail [email protected].



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ONLINE SUCCESS IN PARADISE

Case Study:

ention the word “team” and watch John Uekawa’s eyes light up. John is part owner

and president of New City Nissan in Honolulu, Hawaii. John knows the dynamics involved with devel-oping and training people whether it is in the dealership, on the court, or on the pitching mound. A sports fan and coach, John has made a huge investment in his community by co-ordinating and sponsoring sporting events like the New City Nissan State Volleyball Championships, and his latest endeavor, the New City Nis-san Softball Classic, a tourney sanc-tioned by the Hawaii High School Athletic Association. John sums

it up best. “It’s just a dream. It was our premise that after 10 years in the automobile business, we wanted to give back to the community.” John and his teams are truly winners!

A huge win for New City Nissan is that they have lit up the Island of Ha-waii with their online vehicle market-ing and strategy. In just three short months, New City’s Nissan’s internet department has knocked the ball out of the park by catapulting their inter-net depart from 30 sales a month to well over 100 per month. The beauti-ful thing is that this new found mo-mentum is exactly the shot in the arm that the dealership needed to get to the next level, and it’s only the first

inning. In this article, we will take a closer look at how an import dealer group in the highly competitive mar-ket in Honolulu transformed an aver-age Internet Department into a com-pletely new profit center.

The Field – Where The Game Is Played 70% to 80% of New City Nissan’s customers are using the web to re-search vehicles before they buy. Al-though their customers are starting their shopping online, only a fraction of New City Nissan’s adverting bud-get was being used for internet adver-tising. New City Nissan re-evaluated their advertising budget and realized that they were spending more money

Success Story

Success Story than ever before on mass marketing with little return and few results. Tra-ditional media such as newspapers, television, and radio are expensive, and New City Nissan was unable to target specific audiences. New City Nissan’s blanket marketing depart-ment was spending too much money for little return that was ultimately hard to track and measure. The ob-vious decision was made to re-direct advertising budgets toward on-line advertising to target markets at a re-duced cost. Shortly after initiating their new internet marketing strategy, New City Nissan was spending a lot less money, attracting more business and generating more profits.

The Draft -How To Pick Your TeamThe team at New City Nissan is made up of people with great sales, phone, and follow-up skills. The key to their team’s success is that they have been trained on the process to sell the ap-pointment rather than trying to sell the car over the phone. The best team members follow a phone guide, and they understand how to answer all of

the customer’s questions and objec-tions. The advantage of great perfor-mance in selling the appointment is evidenced by a very high closing ratio of showed appointments.

Practice- How To Form The TeamBZ Results’ philosophies and training techniques have helped the New City Nissan team to assemble a targeted

plan to determine how they should address their customers’ wants and needs. I.D. Ponciano states, “BZ Re-sults has essentially co-authored our ‘playbook.’ We live by the processes we built with BZ’s help. It’s a culture change; it is the future of car busi-ness!”

New City Nissan has increased its cus-tomer service staff and implemented a two-fold training plan. The first part of the plan, with the expertise of BZ Results, was to truly understand the expectations and concerns of cus-tomers when they came into the deal-ership. The second part of the plan involved taking that understanding and training the staff to effectively interact with their customers. The New City Nissan customer interaction processes are heavily influenced by the technologies that are taught by BZ Results.

Game Day- What Drives Digital StrategyAccording to Marketing Director, Ryan Takata, the New City Nissan digital strat-egy can be summed up in the following:

The Internet department has went from 30 to 100 for the past three months, and BZ has helped us understand more about the 21st century customer and their expectations. We’ve work together with BZ to build processes to meet those expectations.” Ryan Takata, Marketing Director

In a Nutshell

• New City Nissan is the largest Nissan dealer in the state of Hawaii

• New City uses email marketing to increase sales and lower costs

• New City Nissan uses their CRC and eCRM system from BZ Results to sell 70 extra vehicles

• New City Nissan sells 3700 cars per year, and generates more than 500 new interenet leads per month

• New City Nissan uses Search Engine Optimization to appear up top for free when a customer googles a popular search phrase

• Newcity Nissan is one of thirty-eight Circle of Excellence award winners for Nissan USA

Success Story

Success Story

eliminating the monotonous daily tasks that most sales people dread do-ing. New City Nissan is able to sat-isfy more customers because of our automated processes. BuzzTrak not only automatically follows up with our customers; it even automates the generation of reports to upper man-agement. Another powerful aspect of the BuzzTrak CRM tool is the con-venience of keeping communication with our customers in one place. We can follow up with customers over a longer period of time without losing track of the relationship.

Victory – The Pay OffIncreased sales and profits are one as-pect of the victory; however, superior customer service has created loyal fans at New City Nissan. On May 19, Nissan North America’s District Operations Manager, Dave Frick, pre-sented New City Nissan with the Cir-cle of Excellence Award. This award is an honor given to dealerships that are not only a top volume sales deal-ership, but also one that excels in cus-tomer satisfaction in both sales and service. According to John Uekawa, president of New City Nissan, only 40 of the 1,152 Nissan dealerships in the

country have earned the award and it’s a source of pride for the compa-ny’s 150 dedicated employees.

“Working as a team in all aspects is the key,” says Uekawa. “Earning the Circle of Excellence Award means that teamwork is what it takes. Tak-ing care of all of our customers is important to everyone at our dealer-ship. BZ Results was exactly what we are looking for in a partnership. New City Nissan and BZ Results business

philosophies go hand in hand. To-gether, our partnership will help us move forward with our business plan for continued growth!”

Success Story

Success Story

“The goal of e-mail marketing is to attract more quality traffic at a lower cost, how easy it is, how inexpensive it is to contact our clientele, and best of all, everything we do is 100% measurable.” Ryan Takata, Marketing Director

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Success Story

Success Story

1. WebsiteOur customers love our website be-cause it’s user friendly and easy for them to get exactly the information that they are seeking. We have the capability to customize and modify the Website on the fly to keep up with new advertised specials and all of the Nissan incentives. Our website always has a fresh look and feel and is easy to maintain and keep up to date. Our old provider did not afford us the flexibil-ity that we are now accustomed too. Our BZ site allows us to get the jump on our competition. At New City Nissan we feel that our approach to customer satisfaction is unique, so we have designed our site to highlight this with our “Why Buy” BuzzMail multimedia presentation that high-lights our desire and commitment to satisfy their needs. It basically states that we will do whatever it takes to ensure total satisfaction. When you go to www.NewCityNissan.com you will see that we make it easy for the customer to get exactly what they are looking for with just a few clicks. Bottom line, our website engages the customer and leads them right down the baseline straight to the phone to call us, greatly increasing our f loor traffic too!

2. Search MarketingIf we can’t get customers into our showroom , it would be impossible for us to generate sales. Customers today are using internet search engines like Google during their buying process when they are researching vehicles and dealerships. To attract today’s shoppers, New City Nissan relies on their technology and training partner to help them come out on top of the most popular search results. Our ven-dor, BZ Results.com optimizes our web site to help ensure we appear at

the top for the most effective search terms. New City Nissan uses a com-bination of organic and pay- per-click search marketing. We appear at the top of the search engines when a cus-tomer Googles a popular search term like ‘Honolulu Nissan’. As a result of this increased visibility, we have seen a huge increase in the traffic to our phones, our website, and on our show-room floor.

3. Email MarketingWith our customer database we can bulk email thousands of customers. We have over one hundred pre-pack-aged multimedia Buzzmail email marketing campaigns that we can send to any segment of our customers with just a few clicks of the mouse. There are campaigns for every event; every month, every season, and ev-ery marketing theme you could think up…like year-end clearance, invento-ry reduction sale, fresh start financ-ing, holiday events, and more. These Buzzmails have become the core el-ement of our marketing efforts, and they can even be displayed on our

website too! These branded messages help build New City Nissan value in the eyes of our clients because all of our advertising mediums and mes-sages mesh.

The goal of e-mail marketing is to at-tract more quality traffic at a lower cost, so we love how fast we can reach the customers, how easy it is, how in-expensive it is to contact our clientele, and best of all, everything we do is 100% measurable.

4. Customer Relation Management (CRM)It’s important to capture all the criti-cal data on customers and prospects, record all the information that is im-portant to a car deal, and follow up with all prospects (both hot and cold) to sell them a car and keep them loyal to New City Nissan. BuzzTrak CRM tool makes it easy to manage and measure all of City Nissan’s customer activity. The Virtual BDC Manager provides the assurance that all daily activities and routines are automati-cally programmed and scheduled,

As we’ve grown with our internet department, there’s no doubt we need to parlay our great customer experience and processes with even more customers…that’s where Search marketing will come in!” Ryan Takata, Marketing Director

AutoSuccess Aug06

Business

Transcript of AutoSuccess Aug06