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2. turn your online inventoryinto Powerful online marketingtext "gotext"to 486 9 6 Unlimited inventory distribution toSave time and money by printing your website and online classi eds window stickers & buyers guides Manage all online advertisements Premium VIN Decoding provides the from one centralized locationmost accurate and consistent vehicle data Customize your vehicle descriptionsMaximize all of your marketing to inspire mental ownershipdollars - Online and Traditional! 877.738.3313www.homenetinc.com salesteam@homenetinc.com 3. February 2009 every department in your dealership. That means more profit potential forstarting as low as Dont be a strangerPackagesUnlimited campaign you initiate... distancingUpdating 8 DMS system you will be reachingFOCUS StephenR.Covey customers with every marketingDMS UPDATE yourself from your competition. Create a Compelling Scoreboard199address: By having current data in your per month3834 Taylorsville Rd.YOU CANT OVERCOME EVERY OBJECTION 10 TomHopkinsBuilding A, Ste. 1BLouisville Kentucky 40220 12phone / fax:$DEALERS EXCEED SALES EXPECTATIONS WITHJimmyPetersUNIQUE STRATEGY 877.818.6620 / 502.588.3170web:JUST BECAUSE WEVE ALWAYS DONE IT THIS WAY DOESNT MEAN IT WASNT A STUPID IDEA IN THE FIRST PLACE 14 JohnBrentlinger AutoSuccessOnline.comAutoSuccessPodcast.com 15SO, YOU ARE DIFFERENT?JohnDobrick team:Susan GivensPublisher 18WHAT IS YOUR ONLINE STRATEGYsgivens1@autosuccessonline.comJodyDeVereTO REACH WOMEN CAR BUYERS?Thomas Williams www.dmsupdate.comVP & Creative Director REFERRAL SALES MAKE THE WORLD GO AROUND 19 SusanGlandondesign@autosuccessonline.comDave Davis1-866-702-1566 20 ADDING VALUE TO THE CUSTOMER RELATIONSHIPSeanStapleton Editor and Creative Strategistddavis@autosuccessonline.comBrian Ankney ONE MONDAY IN NASHVILLE 22 DalePollakSales-Improvement Strategistsuper6@autosuccessonline.com 24 RESPONDING TO NEGATIVE REVIEWS John WarnerChipGrueterSales-Improvement Strategistjwarner@autosuccessonline.comTHE CHALLENGE OF CHANGE 26 Dr. JohnC.Maxwell general information:info@autosuccessonline.com They should still be your customers. 28ITS NOT OVER YET SeanV.Bradley eNewsletter:Internet Sales 20 Group XIV enews@autosuccessonline.comDMS system (such as ADP or R&R) is current, accurate, and inDMS Update automatically insures all of the information in your 30 Is your message reaching them?AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., HERES WHAT IM GOING TO DO... DarrenHaygood Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. How to Get 80 Percent of Your Internet Appointments to Show Up Direct all subscription and customer service inquiries to 877.818.6620 or They change email addresses.info@autosuccessonline.com. Subscription rate is $69 per year.AutoSuccess welcomes unsolicited editorials and graphics (not responsible 31 They change phone numbers. TACTICS THAT WILL MAKE YOUR WEB SITE SING, PART 1ScottWeitzman for their return). All submitted editorials and graphics are subject to editingfor grammar, content and page length. AutoSuccess provides itscontributing writers latitude in expressing advice and solutions; viewscompliance with the latest government regulations.expressed are not necessarily those of AutoSuccess and by no meansTHE LEADERSHIP RECESSION 32reflect any guarantees. AutoSuccess accepts no liability in respect of thePaulCummingscontent of any third party material appearing in this magazine or in respectThe Cause - The Effect - The Solutionsof the content of any other magazine to which this magazine may be linkedfrom time to time. Always confer with legal counsel before implementing 34changes in procedures. All contents copyrighted by AutoSuccess PLAYING WITH KNIVESSteveBrazillMagazine, a Division of Systems Marketing, Inc. All rights reserved. Your customers move.Reproduction in whole or part is prohibited without express written consentfrom AutoSuccess. AutoSuccess may occasionally make readers namesavailable to other companies whose products and/or services may be ofIS NOW THE TIME TO CUT EXPENSE 36 KevinCunningham interest; readers may request that names be removed by calling IN PARTS AND SERVICE?877.818.6620. Printed in the USA. Postmaster: Send address changes toAutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1BLouisville, KY 40220. THE CHALLENGE TO CHANGE YOURSALES STAFFS CULTURE37 HowardLeavitt12 2428 helping to support... 4. leadershipsolutionStephenR.CoveyFOCUSCreate a Compelling ScoreboardIn prior columns,Ive talked about the The measures are clear35%epidemic lack of focus in organizations. Thislack of focus results in an execution gap,the gap between setting a goal and achievingThe measures accurately track progress32%it. To close the execution gap, organizationsmust practice four disciplines of execution: The measures are visible andaccessible to everyone35% 1. Focus on the Wildly Important GoalWe regularly discuss our performance 2. Create a Compelling Scoreboard on the measures 37% 3. Translate Lofty Goals into Action 4. Hold Everyone Accountable All of theRewards and consequences are clearlyTimebased on our performance on the measures 30%In this column, I will explain the second ofthese disciplines creating a compelling25% 50% 75%scoreboard for your goals.key goals. In a recent xQ study, more than should be discussing it all the time. TheyOne of the key principles of effective team 12,000 American workers were asked thisshould never really take their minds off it.leadership is this: People play differently question:when theyre keeping score. 1. List your wildly important goals,Which statements are true about thethose your team simply must achieve.Have you ever watched a street game ofmeasures used to track progress toward your 2. Create a scoreboard for each one withsome kind basketball, hockey, footballteam goals?these elements:when the players were not keeping score? The current result (where we are now) The target result (where we need to be)Players tend to do whatever they want, theClearly, only about a third of the respondents The deadline (by when)game stops for a few jokes, and the playing can refer to clear, accurate measures to The scoreboard might take the formis not very focused. But when they startgauge their progress or success on key goals.of a bar graph, a trend line, a pie chartkeeping score, things change. Theres a And only about three in 10 believe thator a Gantt chart. Or it might look likenew intensity. Huddles happen. Plays arerewards or consequences have anything to a thermometer or a speedometer or aimprovised. Players adapt quickly to each do with performance on measurable goals. scale. You decide but make it visible,new challenge. And the speed and tempo dynamic and accessible.build dramatically. Think of the tremendous motivating power3. Post the scoreboard and ask people to review it every day, every week, asof the scoreboard. It is an inescapableappropriate. Meet over it, discuss it andThe same thing happens in a work team.picture of reality. Strategy depends on it.resolve issues as they come up.Without crystal-clear measures of success,Plans must adapt to it. Timing must adjustmembers of a work team are never sure to it. Unless you can see the score, yourThe compelling scoreboard has the effectwhat the goal truly is. Without measures, strategies and plans are simply abstractions.of keeping score in a street game. All of athe same goal is understood by a hundredSo you must build a scoreboard for yoursudden, the tempo changes. People workdifferent people in a hundred different ways. team and consistently update it. faster, conversations change, people adaptAs a result, team members get off trackquickly to new issues. And you get to thedoing things that might be urgent but lessHow to Build a Scoreboard goal precisely and rapidly.important. They work at an uncertain pace.Your task here is to identify key measuresMotivation ags.for your team goals and transform them Originally ran in CLO Magazineinto a visible, dynamic scoreboard. ThisThat is why the second discipline ofscoreboard should make three things Stephen R. Covey, Ph.D., is co-founder ofexecution is Creating a Compelling absolutely clear: From what? To what? By FranklinCovey, and is the author of The 7Scoreboard. Most work teams have nowhen? And all team members should be ableHabits of Highly Effective People. He canclear measures of success nor do they haveto see it and watch it change moment bybe contacted at 866.892.6363, or by e-any way to see how they are doing on theirmoment, day by day, or week by week. Theymail at scovey@autosuccessonline.com.08 www.autosuccessonline.com 5. sales&trainingsolution TomHopkins YOU CANT OVERCOME EVERY OBJECTIONIn the business ofIf the potential client simply cannot meetselling automobiles,the nancial requirements of the purchase,youre bound to hear objections or concerns there is no sale. Youll be wasting yourthat interfere with or slow down the salesvaluable time continuing to talk with them.process. They range from Im just shopping Again, keep the door open by letting themaround, to We havent decided what kind know how much youd like to help them getof vehicle we want yet, to Im just looking involved with a vehicle, but do not let thetoday. When it comes right down to it, mostprocess drag on if you can see clearly thatobjections or concerns can be addressed orthey cannot afford it.overcome through effective selling strategies.You help them tell you their needs and matchYou cant come right out and ask if they canthose needs to the right vehicle. Usually, its afford it or what their credit score is. Butjust a matter of clarifying information and you can provide them with a dose of realityeducating your potential clients. Sometimes about the nancial aspects of owning. Your ...keep the door open byit can involve switching gears to another typetiming has to be right not to scare them off,letting them know how muchof vehicle from what they initially thought but you also dont want to invest several youd like to help them getthey wanted, but most challenges can be hours of your time with someone who cantinvolved with a vehicle, butovercome. possibly make the nancial decision. do not let the process drag on if you can see clearlyOccasionally, youll hear something that is At times, youll meet with clients who that they cannot afford it.more than a concern or objection to yourare relatively uneducated about vehicleoffering. Its a condition of the sale. Withpurchases. They could be young and making or person receiving the referral willsome experience, youll learn to recognizetheir rst purchase without mom and dads appreciate your efforts and, hopefully, sendconditions and handle them appropriately. assistance. It could be a spouse who neverreferrals your way in return.What is a condition? A condition is a valid had anything to do with vehicle purchases inreason for not going ahead or not going the past and now must be the one making the I strongly recommend that you pay attentionahead now. Its an objection that may bedecisions for whatever reason. Once you get to those clients whose needs you cantdifcult, if not impossible, to overcome. them talking about their needs, it could very meet. If youre seeing similarities in theirwell be that they arent good candidates for aneeds, you may want to seek out the bestIn some cases, the condition may not kill vehicle after all.resource to meet those needs in your areathe sale entirely. It may just be impossible to and establish a relationship with the businessmeet today. If thats the case, your sale turns If you realize you cannot provide whatowner or one of their salespeople to setinto one of timing. When can you deliver thethese clients are seeking, offer suggestionsup a lead exchange. Its possible they willvehicle with all of the options they need? If as to where they can nd the rightprovide you with a referral fee for clientsthe client is convinced that your vehicle isproduct. Always maintain a high level ofwho end up owning their products. This canright for them, you may simply have to re-professionalism. Try to give them sound be a great way to create a win-win situationsell them on the timing. If their timing andadvice as to where or how they can get what for everyone involved. The client getsyours dont match up, you may have lost they truly need or at the very least what satisfaction. The other company gets a salethe sale, but not the opportunity. If you cant will temporarily serve their needs until they and you get either remuneration or qualiedmeet their needs when they need them met, become qualied to take advantage of your leads in return. Its all in how you choose toat the very least keep the door open for aservice. If you know of a good source, referapproach the conditions you will encounterfuture opportunity to serve their needs.the clients to someone better able to serve in business.their needs.In todays world, a vehicle is the second World-renowned master sales trainer Tomlargest buying decision that most peopleSending appropriate referrals to others willHopkins is the chairman of Tom Hopkinsmake after the purchase of their home.work in your favor in two ways: First, theInternational. He can be contacted atSo, the most common condition for not clients will remember you as being helpful866.347.6148, or by e-mail atthopkins@autosuccessonline.com.making large investments is lack of money.and providing good service, even though itThat includes having no credit or bad credit. didnt result in a sale. Second, the company10 www.autosuccessonline.com 6. featuresolution nanced.If you makea modest $2,500 per copy, that is $70,000 in grossprot from a single sale.The right list, right message and a happy pre-approved customer make the entire process To far easier at the dealership. Doing a direct To havemail sale the right way will eliminate many ofa successfulthe headaches that plague dealerships. Whendirect mail campaign, customers come to your dealership, meet ayou must start with a great sales person, select a unit, take a test drive,list. You need to target people withgo for a service walk, have their car appraised a 625 700 credit score with a ve year and then nally nd out that they cant get a credit le and at least six trade lines deep. You want loan, they leave unhappy. More importantly, the people who have no derogatory credit in the last six your salesperson feels terrible. He or she justmonths with at least $2,500 of income per month. The banks will wasted two hours, and the next time they give these people loans. From within this group, select the people might skip a couple of steps and get on the that have an 80 to 95 percent paid auto loan. These people havenext one. This is dangerous. Keep your people good trades. The age and source for the list are equally important.positive by driving in the good-credit people Use a quality source like Equifax and be sure to get the list 24 who can drive out in your cars. hours before you mail, so it is fresh. Starting with the right list from the right source is the rst step towards a successful direct mail Once your direct mail campaign with the right campaign.message has gone out to right people, you needto know what to do when they start to respond. The message is equally as important as the list. You must use aIt is important that everyone in the dealership message that this type of buyer will respond to. Umbrellas, golf is aware of the sale, and knows what to say to Todays market is balls and free hats will not motivate todays credit-worthy buyer. customers on the phone, in the showroom and affecting the types You need a strong legitimate reason for credit-worthy buyers toon the Internet. Make sure that every person of customers whowant to visit your store rather than your competitors. The mail who touches the phone knows what to say respond to traditionalpiece needs to arrive at the customers home in an ofcial- andwhen a customer inquires about the sale. Work advertising.urgent-looking envelope. This will increase the number of people with your salespeople on the verbiage you Television, radio that view and read the message. Next, you must grab the customers would like them to use to describe the sale. Make sure the dealership and the newspaper attention and get them excited and emotional. Auto Loans Direct and everyone in it are ready for a successful sale. are driving in more from the Bank! This Week Only is Your Chance to Pay What the and more credit-Dealer Owes On Their Vehicles! This is a new message that the Direct mail sales are still the best way to drive buyers into your store challenged shoppers.customer has not seen hundreds of times, and will create interest. and sell more cars. Anybody can ll your showroom with roaches. JimmyPetersArent you tired of telling people you cant sell them a car? Why Unfortunately, theNext, grab them and get them more emotional with a $1,000 same market climate shopping spree or other substantial gift.not bring in the customers you can sell? has made the banks unwilling to extend credit to these people without enormous hedge fees. It has become difcult to sell carsDirect the customer to call and get a pre-approval amount. This is Call or e-mail for your free copy of How to these people, let alone make a fair prot from them. low risk and requires very little time on the customers part. Findto Fill Your Showroom with Credit a direct mail partner with a strong BDC to set appointments with Worthy Buyers for under Nine Grand. These credit-challenged people in need of transportation arethese buyers. Even skeptical customers who normally wouldntJimmy Peters is the president of driven to the Internet and show up in your inbox from a third-waste their time driving to the dealership will call and youll need Big Time Promotions. He can party lead provider. Where are the people that can buy cars?talented car people on the other end of the phone to drive them into be contacted at 866.850.6926, Your dealership is not a roach motel; stop inviting in only the your store. When they call, they are given the amount they haveor by e-mail at roaches. You want shoppers that can buy. Put the bait out for the been pre-approved for, and now they know that they can buy a new jpeters@autosuccessonline.com. good credit buyers the deals that fund fast with no headaches.car. This is a great feeling. This process will bring more customers to your store and will have them feeling more positive about your The best dealerships have the smarts to know that, if their dealership when they arrive. business isnt growing and sales are shrinking, then they need to change the way they go after new prospects. For these peopleConsider this who seek out and nd the sales-building strategies that work in any economy, success is almost guaranteed.If you mail 10,000 mailers to the perfect customers and only 1.5 percent respond by calling to nd out whats going on, that is In this market, it is necessary to select the people who you want 150 perfect customers. Pick the right direct mail partner and their to receive your marketing messages. You can get the people with BDC will set appointments with around 75 percent of your perfect good credit into your store so you can deliver vehicles and makebuyers. If only 50 percent of the appointments show up, thats 112 prots. Direct mail provides you the opportunity to pick only the opportunities. If you deliver 25 percent of them, you will have 28 people that can buy a car today and market only to them.car deals. These buyers are not ipped in their trades and are easily1123 7. leadershipsolution JohnBrentlinger JohnDobrick sales&trainingsolution JUST BECAUSE WEVE ALWAYS DONE IT THIS WAY DOESNT MEAN IT WASNT SO, YOU ARE A STUPID IDEA IN THE FIRST PLACEDIFFERENT?This year is goingprocess. Find out what your salespeoplebonuses. The selling business runs on prot, Try this; bring all your because of MEthat, blah blah blah blah blah. Rememberto be crucial for dont like about your selling process. Findnot on volume. Dont try to be the biggest;salespeople together weve been in business for 30 yearsyou are different. Your unique messageour country, our economy, the automotiveout what your customers dont like about the just be the best. Best products, best service, and ask them the same question that every We have the best peopleshould be presented as early as possible;industry and each of us in particular. Anyone selling experience. Ask the tough questions, best salespeople, best process, best at helpingsingle prospect who has ever walked into And so on dont treat your unique message as ain this industry who thinks they can keep and have the guts to listen to the honestyour customers and, while youre at it, learnyour dealership has asked every customerthrow-in when it has become too late.doing business as usual is simply not payinganswers. Then have the courage to change to be the best leader you can possibly be. every time. How close did I get to your sales teamsattention. A psychologist once said, Man the things that salespeople and customers actual responses?Next, how do we deliver our uniqueis the only animal who nds something thatdont like. Step up to the plate and have theControl the urge to be No. 1. Stop the Whats the one question? Every customermessage? Lets examine what is probablydoes not work, and then keeps doing it.courage to do what needs to be done, to learnbragging, stop the greed, stop the playgroundultimately asks, Why should I buy from Is it reasonable to assume that if we were occurring now: After the Hi, my name isHe could have been talking about the carand grow and change for the better.behavior. You want to be No. 1? Then try you? Your prospect will probably not to invite the sales staff of your biggestand you are introduction, your prospectbusiness. Just because weve always done itbeing No. 1 at home with your spouse and verbalize this question, but be certain ofcompetitor to join this conversation, and we is being asked a series of uninvited questionsthis way doesnt mean that it wasnt a stupid Here are some particulars, if you have the your children. Theyre the only ones who this: When your prospect decides to show-were to ask them the very same question, such as:idea in the rst place. courage....count anyway. If you get your approval fromup at your dealership, they are asking Whywhat do you suppose their responses would Are you looking for a new or used your spouse and children, you wont have toshould I buy from you; as opposed to thebe? How closely would they simulate yourvehicle?Americans love their cars, but they hate theDevelop an honest selling experience. If you look for approval from the strangers at work.innite other options out there? responses? And, you are different how? Are you looking for a car, truck or SUV?car buying process. Funny thing, thats all wehave to lie to the salesperson or the customer What is the car being used for?have to sell: the car and the process. Guessto get a sale, youre better off not getting the Dont be a jerk. You may have the power to Heres the good news! If your sales team will Now, lets dig a little deeper. Lets look at Do you prefer light colors or dark colors?whose fault it is that they do not like the car sale. Tell the truth, every time, aboutbe a jerk, but you never have the right. Treat remember that the why should I buy fromthis through the eyes of your prospectivebuying process? Right, its you. Youre the everything, to everyone. Once you are caught your people the way you want to be treated.you question is being asked 100 percent of customers. We have determined that yourDoes that sound familiar to you? Guess whoreason. Get a grip. Stop the nonsense about in a lie, by salesperson or customer, you have The golden rule has not been suspended for the time, they can build a strategy aroundsalespeople convey the same message as else it sounds familiar to, too? Yes, yourbuilding value. They already love the vehicle.no more credibility with either. More salescar dealers and managers. Be a jerk-free this question. If you know what is always your competition. Here is the irony: How prospect.Get off of the insane idea that if you just doare lost by lack of credibility than you can dealership.being asked, doesnt it make sense to build can everyone be the lowest-priced dealer?what you think is a great presentation, trial imagine.a response that demonstrates preparedness By denition when someone is the lowest, This series of questions make you lookclose, handle objections, close, close, close, Make your lot user friendly. Many lots are sofor this question? Instead of being surprised,there can be only one. So, how can everyonepushy to your prospect. We are asking theselower the price and beg like a trained seal for Develop a sales system which reects the crowded, no one can get out and look. Make you now can anticipate the question, creating be the lowest priced, have the best serviceuninvited questions before weve earnedthe sale, youre selling. Thats not selling, psychological make-up of the customer. your lot, and your dealership, a place where an opportunity to differentiate yourself, yourdepartment, the highest CSI, most cars inthe right to ask these questions, so lets giveits begging. If begging worked, the big threeSell like the customer wants to buy. Cut people want to spend time. Stop spending dealership and your vehicles. The challenge inventory and be the friendliest dealership? something to your prospect rst. ProvideCEOs would have gotten the money fromout the force, the pressure, the trial closes, so much money trying to get customers to is this: your prospect will not simply ask youryour prospect with interesting informationCongress the rst time. the pushing, just get rid of all the tricks thecome to your lot, and spend some on making salesperson the why should I buy from you The cold hard truth is this: Through the eyesor additional value. Create a baby-stepcars business is known for. Learn aboutit a place they will want to visit. Having question, so it is critical to always rememberof the prospect, all dealerships are the same. during your meet and greet. This small tweakWe have only two things to sell: the productpersonality, birth order, ego states. Learn howsalespeople rush customers the second they that when the prospective customer showsLet that sink in for a moment. All dealerships should assist your sales team in selling theand the experience. The products we have to a buyer thinks. Learn the difference between get out of their car is not user friendly. Stopup, they are ultimately asking that question. are the same. Need proof? Pick up Sundays salesperson, the dealership and the vehicle bysell are the absolute best the industrial world power with people and force over people. Stoppressuring the customer. Start pressuringnewspaper and tell me who is unique? providing an additional value proposition.has to offer. In America, the vehicles we trying so hard to sell; start helping them buy.yourself to nd a better way to treat your OK, so lets get back to the beginning ofYour prospect will understand that, not onlydrive have no equal. If you want a huge, safe, customers. this discussion; I asked you to bring all yourLets look specically at when and how yourdo you have a quality, competitively pricedcomfortable SUV, go buy one; there areStop allowing managers to close sales. Teachsalespeople together, so you could ask this:salespeople should deliver your unique vehicle, but you also provide this uniquenumerous great ones being made. If yousalespeople to sell. Teach them responsibility.This year is going to be a shake out year. When a prospect asks the why should I buymessage. service or that unique service, or we alsowant a tiny, economical gas saver, go buy If a manager has to close sales, then thoseThose who are willing to learn, grow and from you question, what is your response? provide you with this or that.one; there are many being made. Americans salespeople are not necessary. If a manager is change will have a good year. Those whoWhen you deliver your unique messagelove the cars America is making. That is notselling, he is not managing. Hire salespeoplewant to do the same old thing, well, they Let me take a wild guess at what responsesis just as important as the message itself. If I am absolutely certain that it is far easier tothe problem. The problem is that Americansand let them sell. There is no commission on will get the same old thing. If you want your salespeople are currently using with you are like most dealerships it is probably continue down the current road, and keepdo not like the way cars are being sold.managing, only on selling. A sales manager different results, youre going to have to doyour potential customers: You should buy being regurgitated as the customer is walkingyour meet and greet status just like everyoneAnd so we have two opportunities here: thewho cannot/will not teach his people to sell issomething differently. from us because we have theout the door, and you get to recite it to theelse. I challenge you to be unique, andopportunity to change, and the opportunity to not a sales manager. we have the best price back of your prospects head. It may lookdictate how your market will proceed withget into another line of work. John Brentlinger is a sales and we have the best selection like this: Mr. and Mrs. Customer, beforeyou leading the way.Stop the volume bonuses. Prot is sanity,management trainer, executive coach we have the highest customer you leave please keep in mind that we are theThis article is personal. Please take it that volume is vanity. If you teach salespeople toand author. He can be contactedsatisfactionvolume leader for a reason, we provide the at 866.859.6504, or by e-mail atJohn Dobrick is the president ofway. Nothing will change at your dealership help the buyer get what they want, need and we have the best service departmenthighest level of customer satisfaction and weFOCUS Growth. He can be contacted at jbrentlinger@autosuccessonline.com.until you do. Stop trying to over-explain will pay for, youll make a prot on every we have the friendliest staffare condent that you will not nd a lower 866.490.5672, or by e-mail atthe product and start inspecting the sellingsale, and your salespeople wont need the we have the best locationpriced vehicle anywhere, and in addition tojdobrick@autosuccessonline.com.1 14 5 www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional 8. sales&trainingsolutionJodyDeVereSusanGlandon sales&trainingsolutionWHAT IS YOUR ONLINE REFERRAL SALESSTRATEGY TO REACH MAKE THE WORLDWOMEN CAR BUYERS? GO AROUND The advent of the 1. Integrate the Message4. Focus on RelationshipsReferrals are theeconomy hits the skids, and the walk-ins dry Internet has enabledMake sure the woman-friendly messageCreate relationships with your women salespersons not-so- up. They are just not sure what to do next.women to nd the resources and information is consistent across your brand, from the customers by providing information and secret weapon. And it doesnt just apply toThey are not good prospectors, or hunters.they need to take charge of their ownshowroom to the service drive, your Web sitecontent on your Web sites and in yourour industry.It doesnt occur to the reluctant salespersonnances and buying decisions, and give and your Internet sales department. Signalmarketing programs designed specically that there may be a way to keep businessvoice to their needs and preferences.to women in your marketing and advertisingfor women. Set up a two-way approach,No matter what your eld, your businesscoming. They have listened to too much you are thinking about them and their needs answering her questions, speaking hercan thrive by paying attention and putting a negativity. The stream has dried up, period.With this rising tide of the economic powerand are striving to win their business. language and listening to her needs. Provide fraction of your time every week into your The advertising industry, a huge industry byof women, car dealerships and automotive content that interests women consumers favorable word-of-mouth advertising from any estimation, understands and capitalizesretailers need to devote time, resources and 2. Polish the Approach car seat safety, crash test ratings, car careyour current customers.on this concept, and they charge accordingly.budget to gain a larger share of this huge Treat and picture women as capable andtips and so forth.You can advertise your way into gettingmarket.professional in your online marketing andWhen I hear, I need a new car, I have themore customers, but there are no guarantees, advertising efforts. Society recognizes manyIf 51 percent of car buyers are women andBy 2010, women are expected to controlopportunity to say, You should see Gary you are going to pay and there is no way to valid roles for women, but this isnt always85 percent of all vehicle purchases are$1 trillion, or 60 percent of the countrysreected in ads seldom are women shown Smith, at Hyundai of Decatur. Why? Hetruly track it. inuenced by women, what percent of your treats his customers well, and you will getwealth, according to research conducted by in work settings, business roles or positions marketing and advertising budget are youBusinessWeek and Gallup. of authority. Use real women rather than the a good deal. Thats a fact, and I also know Running a strong, inexpensive referral willing to devote to attract, sell, retain and he has a great referral program in place toprogram, and paying your customers rewards runway model as the benchmark for these increase loyalty with this majority of theWomen purchase more than 50 percent of graphic depictions of women. reward me for every person I send his wayfor business sent in, is much more cost American auto-buying market? who buys a vehicle. Is this good business on effective, trackable and buildable. Running aall new cars, and in some brands up to 62percent. They purchase 48 percent of all used3. Emphasize Information his end? Absolutely. His referral programstrong referral program is also fundamentalcars and 40 percent of all new trucks. Having a blog that provides information Jody DeVere is the CEO and president ofis posted on the front page of his Web site, to ensuring a salespersons or businesss about your dealership, employees, events, AskPatty.com. She can be contacted atand is right there for anyone to join. Garycontinued success, both in good times andHere are the basic steps and tools you willspecial offers tips and community activities866.849.9973, or by e-mail at jdevere@autosuccessonline.com.has a successful referral program, and one bad. Salespeople who are taught the basicsneed in order to market effectively to women,will help women learn more about how who reason it is successful is that it is organized, of referral selling, including those that wouldgain their trust and, in turn, their business. you are and how you can serve her needs. trackable and he can market to his clients.have dried up otherwise in tough times, willHe now knows that he gets 25 to 30 percent make it in good times and bad. They will beof his business through his referral program.doing repeat and referral business, and their customers are walking into the dealershipsWhen I started in the business I was a green and asking for them. Even the reluctantpea. I had some retail experience, and a salesperson thrives with the proper tools. Adegree in communications. My dealer lovedgood referral sales tool has the built-in stepsme, and recognized that women brought ato success, and is user friendly. When thelittle something different to the car business.business owner and the salespeople make upI didnt disappoint him, either. I sold a newtheir mind to take the extra steps necessary,Toyota my rst day at work. Instead of and be proactive in their daily work life,letting me rest on my accomplishment, he setting a habit of increasing their salestold me to go back and ask my customerswith the assistance of their already happyfor the names and numbers of three friends customers, they will increase their businessor relatives that might be in the market for a by 30 percent or more. And that 30 percentnew or used car. He was a smart man, and hein todays market can mean the differenceknew the importance of referrals.between success and failure.Who else is served by having an organizedTake the time to ask yourself how yourreferral program? The person I call the current referral program works. Is 30reluctant salesperson. You may know one percent of your business coming to youof these awesome people. They make up afrom your current customers? Do yourlarge majority of the sales forces nationwide, current customers know you will rewardand are sometimes the sales managers!them if they send business your way? AreReluctant salespeople often possessyou tracking, organizing and managing yourexcellent people/communication skills. Their referral business? If the answer to any ofpersonalities predispose them to sales, andthese is no, subtract at least $30k a monththey make excellent salespeople, especiallyfrom your possible income.during times of prosperity and demand.They are good with clients, and clientsare usually pleased with them. Even theSusan Glandon is the national salesreluctant salesperson wants to be a successand marketing director for The Bird Dogin the sales process, and wants to please hisClub and Prospectors Club. She can beor her client. Where does the reluctantcontacted at 866.618.8561, or by e-mail atpart t, you may ask? Well, the reluctantsglandon@autosuccessonline.com.1 part appears when times are tough, the18 9 www.autosuccessonline.comthe #1 sales-improvement magazine for the automotive professional 9. sales&trainingsolutionSeanStapletonADDING VALUE TO THECUSTOMER RELATIONSHIPThe future of the You have to ask if your current marketingsuch as new categories have to be addedauto industry is beingmessages are cost effective. Are they better such as high-mileage units to theredened and dealerships need to change than your competitions? Do they make asegmentation. Last year, that category couldtheir business model to be successful and signicant contribution toward your growth have meant 99,000-mile units; now it mightprotable going forward. One of the rsttargets? Are you managing your customers have to be changed to accommodate thosethings dealerships can do to be successfulin a physical customer lifecycle? If you customers keeping units to 150,000 miles.is to recognize the value of their currentanswered these questions with a yes,customer database. Stats show the average you are probably doing your direct mailWe have to utilize the marketingdealership only retains approximately 50properly, which means your costs justify segmentation to easily and effectivelypercent of the customers that purchasethe returns. But in some cases you could beoptimize a dealers marketing andvehicles from them. In the current economic doing better with greater targeting. messaging. We need to create as manyenvironment, customers will be keeping category segmentations as makes sense.their vehicles for a longer period of time. Lets take a practical approach to dataAnd when creating these categories, itsThis presents an opportunity for dealershipssegmentation. Take all the data andimportant to understand that there will beto get to know your customers better than information we know about our customersoverlaps between segments and in someever before, understand their needs and and then ensure it is clean, accurate, and cases the overlaps will be better than others.deliver relevant messages to each customerrelevant so when we are going to spendat the right time via the right channel.money to get a message to a customer weWe want to use the segmentation tocan actually deliver it to the right person. understand where the highest probabilityData segmentation will signicantly increase of an action is going to occur. Marketingsyour marketing efforts effectiveness and,Then we need to develop a practicaljob isnt to sell cars; marketings job isat the same time, reduce your marketing implementable segmentation strategy that to create desire, want, need or follow-up.expense. Programs like that are calledhelps to put your customers into easilyThe performance of the segmentation ismarketing segmentation made easy. Thisidentiable categories. Next, we needautomatically identied by the technology.creates a scientic empirical approach to to make our data segmentation policies Good data segmentation polices shouldmarketing which allows you to experiment, available to run against the data we haveclearly understand what the goals are,measure and improve using a statistically seen in the past. In other words, a dealer what the customers historical behavior hassound evidence-based approach.creates a category of lost soul and sets itbeen in the past, and help understandingfor a seven-month interval. When looking that the tighter the segmentations we get,Dealers need to ask themselves some at the data, however, the dealer sees that the parameters become tighter and thequestions:customers driving the Hondas arent constituents of each segmentation become 1. Do you want to segment your data so returning for eight months, or the oil changesmaller but the results should becomethat you can sell the right products to the intervals are far longer. They are now greater. So where you the dealer used toright to the right target through the right doing themselves a disservice because they send out 10,000 direct mail pieces to sell 20channel at the right time for the right cost? have built the category wrong. You havecars, with good data segmentation we should 2. Does your current response rate for yourto look at the historical data to create the be able to send out 2,000 direct mail piecescurrent direct mail or e-mails fall below right baseline. This may show the averageto sell the same 20 cars.the one percent mark? customer comes back 2.4 times per year to 3. Are your conversion rates less than three their store. So even with data segmentation, Let me highlight at this point the importancepercent?you cant make the assumption you canof feedback. All the customer attributesmove it to six times per year; we need toshould be manageable, measurable and tResponse rates will vary by media, and so be realistic. It is also important to make into segmentation. If you have attributes thatdo costs. Most people in the past have takensure that segmentation policies make sense.dont t a segment, you should probablythe approach of pray and spray, which was We have to watch to see if the trends in the create another one.basically to send out a lot of mail pieces andindustry are changing the probability of thepray you get a return to justify the cost. This customer responses. For example, today inSometimes segmentation is not practicalstrategy no longer pays.this economy, people are buying cars lessbecause the data is not accurate. Maybe an e-often. Historically customers might have mail is missing, a ZIP code is mistyped andtraded their vehicle in at 75,000 miles, the customer you thought was 15 miles awaybut now they are keeping it for 150,000is actually 100 miles away, or the address miles. That means there are new is wrong because the customer moved. Inopportunities andthese cases it is critical for your dealershipALL to work with a company who specializes inSTHE challenges, HO CUSthese marketing programs and data cleansingMEAULD BE M OMER T before initiating your marketing campaigns.SUR ANATTRSEGMENABLE ANAGEABL IBUTESSean Stapleton is the executive viceATTRTATID FIE,SEG IBUTES ON. IF YT INTO president of business development at M T Visible Customer. He can be contacted atPRO ENT, Y HAT DO OU HAV 866.406.6337, or by e-mail at BAB ONANO LY C U SHO T FIT AE sstapleton@autosuccessonline.com. THER REATE ULD2ONE0. www.autosuccessonline.com 10. sales&trainingsolutionDalePollakONE MONDAYIN NASHVILLEOnce again, I amWhat they knew was the fact that Ford hadgoing to go out on aapproximately 80,000 more similar vehicleslimb and state that the way the majority of to be liquidated over the next few months.our industry puts a value on a used vehicle Moreover, they knew that the current marketis ineffective and outdated. Although I havesupply of the auctioned vehicles was wellsensed it for a long time, an experiencein excess of 100 days. Specically, on thatat the Nashville Auction this past JanuaryMonday, 08 Ford Explorer XLTs had an...they had saved themselvescrystallized my understanding. On Monday, average retail market value of $17,180 and approximately $50,000 by notJanuary 5, Fords Closed Sale in Nashville124 days supply in the Midwest. (In otherdrew a bustling crowd of eager buyers.words, if no other similar vehicle enteredhaving purchased truckloadsAmidst the herd was a small group of thethe market, at the present sales rate it would of vehicles.enlightened a special group that marchedtake 124 days for the market to be depleted the vehicle if the cost was around $14,400.to a different drummer. of 08 Ford Explorer XLTs.) Unknowingly,Moreover, they knew how many identicallythe herd had just purchased vehicles that,equipped competing vehicles were currentlyAs the chilly January morning progressed, after fees, transportation and reconditioning,available in their market and the rate atvehicle after vehicle was bid up to a level would have to be retailed for well-abovewhich they were being retailed. This is whynot seen for several months. While the herd current average retail market prices. it was abundantly clear to them that the herdeagerly outbid one another, a contrarianmentality was not for them to follow.few stood silently by, exchanging glances This scenario would have been veryof disbelief. One after the other, 08 Ford different if there was only a current marketTwo days later, several of the same fewExplorer XLTs escalated in value as the supply of 30 days versus 124 and/or the reappeared in Nashville minus the herdbell rang regularly with values in the uppercurrent average retail value was $1,000 for the Open Sale. On that day, they$15,000 level. As soon as one achieved ahigher, but no such luck. The few knew what scored truckloads of vehicles, including 08new level, the next one brought even more.the herd did not and agreed that they had Ford Explorer XLTs for as little as $14,400.This frenzy continued well into the latesaved themselves approximately $50,000 by Granted, it took an extra two days for theafternoon.not having purchased truckloads of vehicles.herd to clear and for the rationality of theMoreover, they agreed that just a year priorefcient market buyers to return. But it did.When the auction began to clear, thethey would have behaved just like one of thefew congregated to reect on what had herd buyers.My conclusion is that the wholesale markettranspired. Among this small group, it wasis no longer relevant in determining thewell understood that the wholesale prices That day, what the few understood was a proper price to pay for a retail unit. Priorpaid throughout the day were considerably new and better way of determining a retailto the Internet, when consumers could notover existing retail values after considering vehicles fair wholesale market value. They properly access a vehicles value, whatfees, transportation, reconditioning andused a formula based on their understanding they paid at retail was most often driven byprot. So what happened on that Monday in of the efcient market and the principles what the dealers paid at wholesale. Today,Nashville?of velocity supported by using live retailhowever, the tables have turned. Consumersmarket data. Before they showed up in can readily identify those vehicles thatUpon analysis, the traditional herd had Nashville, they already knew the averageare overpriced. Consequently, if you canbeen set loose from their dealerships withretail market value for every vehicle thatdetermine a price for a vehicle that is highlyinstructions to get cars, because duringthey intended to purchase. To calculate faircompetitive and subtract cost and desiredthe prior four weeks the auctions had beenwholesale market value, they took these prot, that will represent the only viablelargely shuttered by the holidays, with retail values and deducted their anticipatedwholesale purchase price if your goal is tothe used car managers splitting their timefees, transportation and reconditioning make money in the retail market.between year-end clearance sales and family costs as well as their expected prot. Forcelebrations. Monday was the day to get example, if they knew that an 08 FordDale Pollak is an author and the founderback to work and restock the lot. In anotherExplorer XLTs average retail value was of vAuto. He can be contacted at866.867.9620, or by e-mail atera, what happened that Monday may have $17,180 with fees of $500, reconditioning dpollak@autosuccessonline.com.just gone unnoticed, but the few knew of $800 and desired prot of $1,500, theysomething that the herd did not.knew they would only be willing to purchase22 www.autosuccessonline.com 11. marketingsolution ChipGrueterRESPONDING TOEncourage Positive Reviewscustomer service. On days when a dealershipTo show the review Web site community has not met their service goals and aother examples of situations where your customers unsatisfactory experience isNEGATIVE REVIEWSteam executed good customer service,shared on a public review site, the outcomeencourage all of your customers to writecan be controlled. With a well-plannedreviews. Train sales and service members to Negative Review Response Strategy, themake this request in face-to-face meetingsunhappy customer can be won back and No one wants to are motivated to share their unsatisfactoryreview Web sites, you can still manage your and e-mail communication. The best wayyour dealerships positive online reputation hear that they have experience with others because they feel online reputation and control the outcome ofto show that the negative review was notpreserved. unhappy customers. Service is subjective, their situation was either not resolved at the the situation. The following suggestions aretypical for your dealership is to have as however, and businesses will always have to dealership or the problem was not escalatedto help you create a comprehensive Negative many satised customers as possible shareChip Grueter is the president of deal with negative feedback.to the highest-level decision maker. Review Response Strategy. their positive experiences. DealerRater.com. He may be contacted at866.618.8572, or by e-mail at In most circumstances, unhappy customersEven though feedback is public now through First, Determine Who RespondsControl the MessageEvery business strives to provide the bestcgrueter@autosuccessonline.com.Designate a response manager within your Even the best laid plans for a successfuldealership. This person will receive all response can be marred if the message ornegative review postings directly from the dialogue with the customer goes astray.review Web sites or through search engineThe customer is looking for validation, andalert services. This manager will determinepossibly the opportunity to have the situationwho should respond to each review. resolved.Next, Decide How You Will RespondCoordinate a message for the responseThere are three strategies you can employ to manager or team. In some cases, you mayrespond to negative reviews. create templates or scripts for the responder to use to ensure that specic customer1. Be Silent service points are communicated.You may decide that your dealership will notrespond to disgruntled customers. The goal Respond in a timely manner to the postedof this strategy is to curb negative dialog. review, but allow yourself time to respondThe risk of not engaging the customer is thatappropriately with a cool head and calmhe or she may interpret your silence as a lack demeanor.of concern for the situation. Your team maymiss an opportunity to correct the source of As you read the review and prepare yourdissatisfaction or to win back this customers reply, identify the main areas of customerloyalty. concern. In your communication, identify the issues the reviewer noted and your2. Review Site Responses response action plan. Accept responsibilityMost review Web sites allow dealershipsand acknowledge how the dealership couldto write a response to both a positive orhave done better to meet the needs of thenegative review. By responding thoughtfully, customer. Discuss how the dealership willyou show both the reviewer and the Web siteuse this feedback to improve the businesscommunity that you are concerned, that you customer service practices. Be sure toare taking steps to correct the situation, and follow the review Web sites terms of useare willing to accept feedback to better youragreement when writing your reply.business practices. The risk is limited to themessage you convey.Respect the Reviewer The reviewer may feel satised that they3. Direct Contact with the Customerwere able to vent their frustrations throughSome review Web sites offer services thattheir review. If the reviewer does not wish toallow you to contact the reviewer directly orengage in further contact, your team shouldprivately through the site. The benet of this respect the reviewers decision and endconversation is that you have the opportunitycommunication.to work with the customer to resolve theirissues. As in the review site response Request that the Reviewer Updatestrategy, the risk is limited to the message the Reviewyou convey.If you have worked with the customer to turn the situation around and they are nowThese three plans each offer benets and satised, you may remind the reviewerrisks. It is best to determine which strategyof their opportunity to update their ratingis not only right for your business, but alsoreview. Most review Web sites provide ain line with both your corporate culture and feature so the reviewer may log onto theirthe policies you adhere to when you receivesite account and edit their comments. Theunsatisfactory feedback from traditional original posting may still appear on the site,channels. Should you choose a proactivebut readers will be encouraged to see the2 approach of engaging the customer, read on.subsequent actions and positive outcome.245www.autosuccessonline.comthe #1 sales-improvement magazine for the automotive professional 12. leadershipsolutionDr. JohnC.MaxwellTHE CHALLENGEOF CHANGEThe history of Henry For so long, Henry Ford had focused onhave made in your life, and your personalFord and the Model moving from inefciency to efciency that feelings toward them. Its painful becauseT illustrates a fundamental truth abouthe refused to move in the opposite directionthey may not understand why youve driftedleadership: Leaders never outgrow the need from efciency to inefciency evenaway from them. Its painful all the wayto change. when doing so would have been wise andaround, but remember: Unless you are protable. Fords genius in sparking change willing to endure these pains, your ownOn his way to dominating the automotivehad catapulted him to the pinnacle of growth as a leader will be limited. Leadersmarket with the Model T, Henry FordAmerican commerce, but later, his inability only grow to the threshold of their pain.embodied innovation and progress. By to change cost him dearly.pioneering the assembly line, Ford slashed The Weight of Responsibilitythe amount of time needed to manufacture In this article, Id like to overview the When were young, leadership has anan automobile. He installed large conveyor central challenges faced by leaders whenidealistic appeal. We yearn to be in chargebelts in his factory, allowing workers to stay they try to make changes in their lives. In and out front, making the decisions.in one place rather than roaming around thedoing so, I have drawn upon the wisdom of However, the reality of leadership involvesfactory oor. He also shortened the workdaymy friend, Sam Chand, author of the bookthe heavy burden of responsibility. Misstepsof his employees from nine hours to eightLADDERShifts, and a prominent thinker inby a leader can affect peoples livelihoods orhours so that his factories could operatethe eld of leadership and change.an organizations sustainability. The fear ofaround the clock.getting it wrong can paralyze a leader. CriticsThe efciencies Ford introduced allowedAlong the journey of leadership, youll meetIf we, as leaders, want to make signicantcars to be manufactured at a fraction of all sorts of people, and I guarantee youll changes in our dealerships to increase ourtheir previous costs. In under a decade, bump into a few critics. Early in my career,impact, then we must be willing to shoulderautomobiles went from being luxuries I didnt know how to handle disapproval,progressively greater loads. Although addedaffordable only to the wealthiest Americansand I bent over backward to keep everyone responsibility gives us a greater opportunityto being standard possessions of the average happy. In spite of my best efforts, I failed. to exercise leadership, it also magniesAmerican family. Ford proted handily from Some of my people still didnt like me. the consequences of our mistakes. To be athe popularity of the Model T, and Fordchange agent, a leader must be willing toMotor Company grew into an empire. Trying to appease everybody invites trouble.take ownership of key projects and pivotal Appeasers end up being average becausedecisions.However, the dominance of Ford Motor they always gravitate to the middle of theCompany was short-lived. As competitorsroad. Theyre afraid to make waves, and Personal Inadequacieschanged their operations to copy Fordstherefore, they avoid changes. My leadershipAs we grow in our leadership, we advanceconcepts mass production, Henry Ford madebegan to take ight when I allowed myself into uncharted territory areas beyonda tremendous leadership blunder. With cars to press people to change whether theyour comfort zones. Such occasions give usrolling off assembly lines like never before,thanked me or cursed me.growing pains by confronting us with ourconsumers began to demand a variety of inadequacies. Our wisdom fails to solvecolors. However, Ford stubbornly refused,People You Have Outgrowna problem, or we stumble into a situationuttering the famous line, The customerAs we climb the levels of leadership, werequiring more wisdom than we possess.can have any color he wants so long as itscome to the sad realization that most peopleblack.arent committed to personal growth.Facing our limitations can be daunting. At Members of our inner circle quit when times, wed rather stick to familiar roadsIn Fords mind, producing multiple colorsthe journey gets hard. If we are to changethan blaze a new trail and risk failure.was foolhardy since black paint dried theourselves for the better, then we need to Ultimately, pushing our personal boundariesfastest and could be used most efciently. change the company we keep. is the surest way to grow, improve, andAmazingly, Ford did not comprehend the expand the scope of our inuence.human preference for variety. CustomersEventually, we must change ourocked en masse to other producers who relationships by disengaging from the John C. Maxwell is an internationallycatered to their color preferences, and Ford people weve outgrown. Disassociating fromrecognized leadership expert, speakerMotor Company never regained its grip on colleagues can be especially painful givenand author. To learn more about or tothe market.your history together, the contributions they contact him, visit www.johnmaxwell.com.26 www.autosuccessonline.com 13. sales&trainingsolution SeanV.Bradley ITS NOT OVER YET! Internet Sales 20 Group XIVOver 50,000 Dealers and Managers in 28 CountriesHave Been Trained byJust about everyonewas the rst time that they heard about these a mission to build, x or really grow theirlooks forward to video strategies, practices and technologies. Internet programs.the NADA Convention and Exposition dealers, vendors and afliates in the industry.I personally spoke to hundreds of dealers inI had such a wonderful time in New Orleans.As a matter of fact, people come from allthe last couple of days and all of them wereKatrina devastated this beautiful city not tooover the world to be a part of it. But this past hopeful, positive and excited about 2009. long ago. I have always loved the beautyyear, we have seen a lot of doom and gloom There was a general consensus that the last of this historic city, Ive always supportedin our industry. People were speculating asquarter of 2008 was difcult, but January it, and Im glad NADA returned to the Bigtoo how many dealers would attend, and business has picked up dramatically. TheEasy this year.TIM DEESEwould there continue to be value in theother trend that I noticed is that this was theCEOevent. To be honest, I wasnt sure myself. rst year that so many dealers were graspingIt was truly an amazing show. It was my rstAs an ofcial NADA speaker, I was excitedthis Internet thing. In the past, these year as a NADA workshop speaker. I met We have a solid understanding of the problems you face. Let us providefor the opportunity, but but concerned there dealers knew that the Internet was important, up with old friends, met new friends, andmight not be a full room of dealers there. but never executed a strategy to reap the got to network with some enthusiastic and you with the solutions to these problems.As an exhibitor, I was disenchanted at the benets. This year, it seems dealers were onoptimistic dealers and Internet professionals.prospect that I might not have trafc at our Used Vehicle Management Workshopbooth, and as a consultant, I was concernedThe icing on the cake was sitting in almostabout the possibility that dealers might not This years attendeesthe front row of the keynote presentationAction plan for maximizing your Used and New ROIget the information they need to perseverewere on a mission, by Presidents George H.W. Bush and Used Car product knowledge for sales peoplethrough these turbulent times.trying to nd out what Bill Clinton, and hearing them speak to aN/C market share is directly affected by UIC appraisals and trades. crowd thirsty for inspiration and leadership.When, where and how mechanical and cosmetic reconditioning should be done.I have to tell you that NADA 2009 wasto do to not only Their insights, dynamic personalities andamazing. Yes, there were fewer attendeesmake it through thesecandor were really appreciated by the entireMonthly Used Vehicle Monitoringat the show, but those who did attend were audience.* How many cars should you appraise?serious about their dealerships and focusedtimes but to absolutely* How much should you spend on reconditioning?on keeping some momentum going for their ourish and dominate.So, its not over; the dealership world is not* How do you compare with your market?20 Groupstores. They werent there for the VIP parties going to implode. Dealers will persevere.or free swag. This years attendees were onYou have to think positively and not give* Are you missing 30% to 45% of your possible retail deals?a mission, trying to nd out what to do to up. More importantly please do not think Manufacturer ProgramsSpeakingnot only make it through these times but tothat things are just going to get better byabsolutely ourish and dominate. themselves. You are going to have to be* Worked with 18 manufacturers in 28 countries world wide Engagements proactive, create a plan and execute that* Get your dealers to be the most aggressive in conquest tradingAs a matter of fact, I had great attendanceplan; waiting for divine intervention is not * Assist your dealers in being more profitableAvailableat my workshops all four days of the show. an option. * Corporate field personnel trained to understand the direct linkI had dealers from all over the U.S., as well of increasing new car market share by conquest trade-insas from South Africa, Australia, Holland, * Customized training to meet your requirements and your peopleItaly, France and Canada. These dealersSean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized * The most cost effective training for manufacturer and dealer.were thirsty for knowledge about automotivetraining and consulting company inInternet sales and BDC. It was an amazingthing to see these dealers truly on the edge of the automotive industry. He can beIn House Training and In House Follow- Up contacted at 866.648.7400, or by e-mail at Cant come to us WELL COME TO YOUtheir seats for this information; for most, this sbradley@autosuccessonline.com.We will visit your stores with on going trainingInstall and train your personnel in all facets of the used car departmentWork with and improve departmental processes to increase your ROIDecrease your inventory and improve your appraisal to trade ratioDrain your water without you taking a bathP.O. Box 922, Orange Park, FL 32073(904) 264-7408, FAX (904) 264-7409 Visit our WEB PAGE www.probac.com or just email us: pbasics@aol.com28 www.autosuccessonline.com 14. sales&trainingsolutionDarrenHaygood ScottWeitzman marketingsolutionHERES WHAT IM TACTICS THAT WILL MAKEGOING TO DO...YOUR WEB SITE SING, PART 1How to Get 80 Percent of Your Internet Appointments to Show UpIn the never-endingand start settingNever before have vehicle shoppers value the research sectionNext month, well take a look at other waysquest for phone skills appointments for consumers been able of a dealership Web site twice as much asto make your site sing to your customers.supremacy, the most common challenge specic times liketo access so much data in such a short periodthe ability to request a price quote. Whendealers and sales consultants face is how to 11:20 or 4:50. Iof time, all from a mind-boggling amount ofyou offer rich content at your Web site, youget more appointments to show up.always suggest usingresources available on the World Wide Webshow consumers how perfect that carScott Weitzman is vice president of business development for eVox odd times it resources that aggressively compete foris versus telling them how perfect it is Images. He can be contacted atEver have a salesperson or BDC manager gives more validity online user attention. a great way to create an emotional bond866.618.9004, or by e-mail atsay, Ive got a bunch of appointments for to the specic between your customers and your products.sweitzman@autosuccessonline.com.today, Boss, but then only a handful of appointment time. Today, dealers need to focus on makingthem actually show up? their Web sites sing in order to brand their Secondly, and businesses, generate new customers, retainIn todays challenging market, its more this is the key, we prior customers and sell more cars. Here areimportant now than ever to capitalize on need to create an some of the most important things dealersevery single sales opportunity. Dealersaction step for the should keep in mind when it comes to Webaround the country are reducing theircustomer. site optimization.advertising expense and placing moreof an emphasis on generating quality Once you close the appointment, give theAnd, its important you instruct your Keep it Simpleappointments, either from the Internet,customer an action step to build value into customer to print out the e-mail and bringKeep your Web site simple, clean, easy tocustomer database marketing or service the appointment. Dont give the customerit in with them. Tell the customer that withunderstand and easy to navigate. Be surereferrals. So, how can we ensure that a high what I like to call homework by givingthe e-mail theyll bring you straight to mypertinent information is readily accessiblepercentage of these appointments actuallythem directions over the phone, telling ofce when you arrive. Plus, it will keep from the home page and do not bury vitalshow up? them to write down your name and number,you from being attacked by all the sharks areas deep within irrelevant pages of your instructing them to ask for you when they circling out front when you get here.site. Optimize images so they downloadTo make an immediate change, we must arrive. quickly and keep your navigation simple.understand that its not the customers fault; This step sets the expectation that A leading cause of Web site abandonmentits ours. Instead, start the action step by stating,the process for your customers with is user frustration and a leading cause of OK, heres what Im going to do. Then, appointments will be different. Give theuser frustration is confusing navigation. ADoes this sound familiar? OK, Mr. outline for the customer whats going tocustomer an incentive, and youll be amazed good-looking, well-organized site oneCustomer, Ive got you down for Saturday happen. at how many more customers will show up that loads quickly and functions simply ismorning. Now, if anything should come up on time, carrying printouts of the e-mail you always your best bet.or if you need to reschedule, just give me a For example: Im going to send you ansent them.call and let me know. Ill be here all day onappointment conrmation e-mail right now, Focus on ContentSaturday. with my name, my contact info, and briefSo remember, when youve achieved yourWhen it comes to a successful Web site, directions on how to get to our store. In goal and actually set an appointment, content is king.It sounds innocent enough and even polite, that e-mail are two very important things.celebrate that success by creating an actionbut were giving the customer the go-ahead First, it includes your personal ID number. step for your customer.Start with the basics by making yourto be late or not even show at all. We might That number entitles you to all the benets Web site an extension of your traditionalas well say, Mr. Customer, I really dont of working directly through me in myOK, Mr. Customer, Ive got you down forbusiness in both style and content. Offercare if you show up or not and its perfectlydepartment. Secondly, it includes a link to 3:40, tomorrow afternoon. Now, heres whatlistings of your inventory, complete withOK with me if you cancel. our online pre-approval form. I stronglyIm going to do.high-quality pictures, standard features suggest all my clients go ahead and ll out and optional equipment information andIf you want more than 75 percent of your that form. It allows me to have most of the Happy Selling!pricing, and keep those listings updated asappointments to show up, try these two paperwork already started, prior to yourfrequently as possible. Be sure to updatesimple things: arrival. special promotions information, too. Engage Darren Haygood is the director of your Web site visitors with conversationalFirst, stop setting appointments for times ofSo, Ive got you down for 2:20 Fridayconsulting for The Manzo Group. He candialogue that focuses on your products, yourday, instead of specic times. Forget aboutafternoon. I really appreciate your time andbe contacted at 866.902.7379, or by e-mailpeople and your competitive advantage,morning or afternoon, today or tomorrowI look forward to meeting you on Friday! at dhaygood@autosuccessonline.com.instead of a price pitch. In addition to your sales department, provide contact information for other departments within your dealership, including service and parts. Once youve got the basics covered, enhance your content with dynamic images such as car videos, 360-degree views, interior and exterior panoramas, car congurators and color changers, and narrated video editorials that communicate key features of the cars3you sell. Recent industry studies show that 301 www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional 15. leadershipsolutionPaulCummingsTHE LEADERSHIPRECESSIONThe Cause - The Effect - The Solutions ThroughoutHave you everwhen a leaders daily focus changes or my life, all thewalked into a placebegins to diminish, their vision becomesindividuals I haveof business excited about purchasing aproduct or service and felt instantly you had blurred. In other words, when the vision blurs, leaders take their eyes off the Bigthe blame ever met have amistakenly ended up at the morgue? I think Prize. In many cases, these managersfor losses, ashing sign onthe teamwe have all had the experience of visiting begin to over-manage people, they getwill always their chest thata company where the mood was certainly caught up in details better left to others, theydead. Even worse is the business you visit become overly consumed with the trivialhave your says, Make me feelback andwhere the employees are visibly miserableand unimportant matters. And to makebe therespecial.and dont mind taking out their personal matters worse, this tendency can be furthermisery on you. multiplied as their expectations start driftingto provide toward unrealistic demands for perfection. the supportCustomers who will not spend their This type of managerial approach can createyou need tomoney for this type of treatment re manya fear-based culture that robs your team ofwin.companies on the spot. Are any of your their motivation. Here is a solution for your Paul Cummingsvaluable customers ring your company? consideration.Dissipation of IntegrityWho is to blame for this type of experience?The most important ingredients of leadershipWhy is this happening at so many What is your primary leadership focusare personal and corporate integrity. Havecompanies? I believe it is because we areright now? If you cant write it on the backyou ever seen a company or individualin a leadership recession. This recession is of your business card, then its a sure betsacrice their organizational values for thedriving turnover up and protability down. that your leadership is suffering from aresults they wish to achieve? One irrefutable lack of clarity. Ask this question: Whatsfact in business is that your personal andAnytime you have this type of de-motivatingimportant now and act on the answer.corporate credibility are comprised of twoexperience at a place of business, I can Paul Cummingscritical components: 1) who you are, and 2)promise you whats missing is organizationalwhat actions you take. If your actions everleadership. When employees dont value The Swollen Ego Syndrome I believecontradict who you say you are, or vicetheir customers, it is because their leader or the slippery rock of leadership failure isversa, then your integrity will be in question.leaders dont value them. There is no doubtmost often covered with the swollen ego ofYour actions must leave and evidence trailthat when employees dont feel valued, theya leader who has forgotten where they camemade up of unquestionable integrity. Greatbegin to lose interest in the mission of the from. When a leader experiences successleaders will never sacrice their character,organization. Why? Throughout my life, others talk about openly, they sometimesintegrity or reputation for increasedall the individuals I have ever met have a become enamored with their own pressprotability or higher achievement.ashing sign on their chest that says, Make clippings. All their we did its are soonLack of integrity will insure a leadershipme feel special.replaced by disastrous I did its. When arecession that will inhibit your future growth leader continuously toots their own horn andopportunities. Here is your nal solution:Truth be told, we all have a genuine needtakes credit for the successes of the team,to feel validated and important. Teamthey will soon nd themselves playing in aEveryday you leave another brush stroke onmembers want and need to know what theyone-man band forever. Team members will your canvas of life. Make certain you paintdo really does matter to the company and revolt from this type of behavior and, in some with only colors of the highest integrity andthe customers. A recent study of employeecases, will purposely sabotage a departmentcharacter. Create a Leadership Masterpiece,perceptions of leadership stated that less or business in hopes the manager in question instead of a Leadership Recession.than 20 percent of employees surveyed felt will fail. Business is tough enough without Paul Cummingsvalued by their direct supervisor. The goodthis self-imposed death sentence. Now anews is that this type of recession comessecond solution for your use:Paul Cummings is president and CEO ofwith both warning signs and solutions.Paul Cummings Enterprises. He can becontacted at 866.865.3171, or by e-mail at Remain humble and gracious in your role pcummings@autosuccessonline.com.Change In Daily Focusas a leader. Understand that by giving theIt has been my personal experience thatcredit to your team for victory and accepting32 www.autosuccessonline.com 16. sales&trainingsolution SteveBrazill PLAYING WITH KNIVESDeng Xiaoping,miss entirely and live to talk about theporters) should be less than 40 percent.the father of experience. However, every make has There is a tendency in good times to acquiremodernization and reform in China, used toits own bread-and-butter congurations. non-productives, and some of that buildup istell skeptics in his government that nding Know what yours are and be certain youprudent. After all, the more you shift routinethe way forward was like crossing a streamnever miss an opportunity to deliver onetasks from productive to non-productives,due to stockout.by feeling for the stones under foot. The the more you free your productives thetask of cutting operating costs in todays Avoid writing orders on the y and people directly generating revenue toenvironment is somewhat similar. The way under the gun mistakes are too produce. But when business turns down,is treacherous and the best path is hidden expensive. Build pattern orders in non-productives are the rst to feel thefrom view. Missteps can be hazardous.advance, based on your experience andknife. Those routine tasks dont go away input from your staff. and, in many cases, get transferred back toBeware of some common missteps whileproductives. As clerks are cut, salespeople,cost-cutting in dealerships. Develop a logical price-ladder plan and order vehicles around it. Mass service writers and F&I producers often nd merchandisers use price ladders to great themselves doing more paperwork andNew Vehicle Inventories effect (think of the good-better-bestthat presents a management challenge. ForDownsizing inventories to match sales is a price ladders on home appliances)example, when sales slow, an F&I producergood tactic, but getting the model/color/price because individual customers can dial in can:mix right becomes increasingly critical as on the combination of features and price a) process paperwork that used to beyour inventory shrinks. It is not uncommon that makes a purchase decision easier.handled by the hourly clerk youto walk a dealerships inventory and nd thatBuild your price ladders within modelseliminated last week, andof 10 units of a particular model in stock, sixand as bridges between models.are nearly identical. In good times, that kind b) follow up with previously deliveredof inefciency costs money. In bad times, Walk your lot every day. You will learncustomers who did not purchase serviceit costs dealerships. Every unit matters.much about your inventory, your displaycontracts or work with used-car managerInventory and order management may not bewill benet from your personal attention,to identify customers delivered three and your mind will appreciate the break. to four years ago with sufcient equitythe sexiest parts of the business, but shortcut in their vehicle to be strong prospectsthem at your own peril. As you take a knife You have three inventories to manage:now or some other revenue-producingto your inventory, here are some thought ground stock, pipeline stock and order activity.starters:bank.Before you reduce support staff, determine Requests for unusual model/equipment/ Make every unit count. who will handle that persons tasks and what color congurations are probably impact that reassignment will have on your deals you can dealer trade for orUsed Vehicle InventoriesThe mechanics of acquiring (and disposing ability to generate revenue. Of course, if youare paying a clerk to process paper so your Of course, if you are paying aof) used units are obviously different thanF&I producer can drink coffee and surf the clerk to process paper so your F&I new vehicles, but most of the precedingsection applies here. The biggest differenceInternet between deliveries, you have otherproducer can drink coffee and surfissues to address.the Internet between deliveries,is that you likely have your money invested not the banks. Having the right mix you have other issues to and making every unit count is even moreSlowing revenue generally means you address.have fewer resources to work with. Makeimportant than with new vehicles. your cuts with care, remembering that thePersonnel objective is to reduce expense, not revenue.As the biggest expense group in a dealership, A knife used with thought and craftsmanshippersonnel reductions are always on theis a valuable tool wielded withoutcost-cutting radar. Most guides recommend caution, it is dangerous.that productives (employees who directlySteve Brazill is the chair of automotiveproduce revenue, such as vehicle salespeoplemarketing for Northwood University,and service writers) should constitute 60 Texas Campus. He can be contacted atpercent or more of your headcount, while866.861.1515, or by e-mail atnon-productives (dealers, managers, clerks, sbrazill@autosuccessonline.com.34 www.autosuccessonline.com 17. sales&trainingsolutionKevinCunningham HowardLeavittleadershipsolutionIS NOW THE TIME TOTHE CHALLENGE TOCUT EXPENSE INCHANGE YOUR SALESPARTS AND SERVICE?STAFFS CULTURE What guide do you parts and body shop gross prot divided by Am I leaving anything on the table? We have a challengewatching how your staff actually performs use to measure the(the dealerships total expenses selling How can I improve my effective laboras automobile dealers in real time with customers and the process.performance of your service and partsexpenses) which typically includes sales rate?in todays difcult times. The economyJudge how many sales are missed becauseoperations?and F&I compensation, delivery expense, What can I do to drive more trafc tois the worst since the Great Depression,the process is not followed and the leader is policy expense, demo expense, net oor planmy service lanes? national new car volumes have declined, and not leading? Accountability is key; followIn light of the current economic situation, we and net advertising. Most manufacturers In monthly 20 Groups, we see membersmajor American manufactures are on thethe process and system to change the oldhear many dealers asking, Is now the time have their own calculations and it varies byuse their nancial composites to comparebrink of bankruptcy.culture and increase your sales. Technologyto cut all expenses, even in the departments franchise. What do your calculations show?their operations with their peer members offers the ability to blast e-mails and lettersmaking you the most money?numbers and franchise-specic numbers How much does it cost to bring every newwith a click from the sales desk. Search Remember, regardless of your franchise, the to identify opportunities. During these client into your dealership? Would you just by make or model and you have tacticalRight now many car and truck owners areonly thing that matters is what you are doing meetings, an exciting dynamic is watching throw $500 per client on the oor and not approach in the use of digital data. Providethinking, It is better to repair than to replaceto move your numbers. The following are members get together and analyze an try to pick it up? Compute the nancial costyour current clients and future clients witha vehicle. With vehicle sales down, manyquestions often discussed in our 20 Group individual members operation in an of poor follow-up using outdated methods. real-time connectivity in todays world. Thenew vehicle dealers are relying more and meetings regarding the various activities effort to improve their numbers. Ideas andBusiness as usual has to be different; thefastest response will win the deal.more on their service, parts and body shop associated with moving members numbers:recommendations are discussed until anoperations to see them through this market How productive should my technicianschallenge is to commit to changing the sales action plan is agreed upon. These actionculture to assure that you maximize the Sales staffs need to be creative andtrend. be? How many technicians should I have? plans lay out just what the goal is, howpotential of your dealership. disciplined. That sounds like a contradiction, What amount of parts inventory should I change will take place through what process,and it is. As owners and managers, you mustLets look at whats at stake: How much of when this change will be implemented and keep on hand? Be the champion and dedicate yourself tobe able to maintain discipline but not loseyour total dealerships expenses are covered What should my parts-to-labor ratio be? how this change will be measured.by the gross prot from your service,a sales process utilizing simple technology.the sales persons creative juices that drive What percentage of my serviceparts and body shop (xed coverage)? Wedepartment gross should be spent on Because time is so important, we are seeing How much time is spent each day in policing the best salespeople. Creativity needs to beestimate that it averages to 70.4 percent, personnel? In other words, do I have toomore groups segmenting their meetings,and cajoling your staff to follow up theirallowed to ourish within the process, orusing a general calculation of: total service, many people or not enough people? allowing them to bring departmental leads? If your answer is too painful to think we get cookie cutouts that dont sell; they managers in for target discussions. Whenabout, the solution is not: just get involved just are good at repeating the script. It isyou are his cure both dealer and departmental managers haveand be the champion. Utilize common sense like selling features without explaining the the opportunity to discuss plans with other sales processes incorporated in todays benets. Relationship building starts with dealers and their managers, convictions technology to manage your sales staff. That the rst handshake and introduction; you do run deeper. Secondly, in an effort to further is the goal: be patient and stay focused to the not shake hands with a PC keep it human. develop their departmental managers, more process.Technology plays its part as you start to and more dealers are having their managerscollect the personal data of the potential participate in 20 Groups. In a managerThe sales culture that exists in many client. The marriage of the sales process group, the idea is to put a plan in place and dealerships today utilize 18th centuryand technology is powerful if is utilized then report on the results at the next meeting.YOU HAVE CUSTOMERS Members are questioned in detail at the next meeting by their peers on what they methods and will never survive in the 21st century. We are in a technically at world correctly. Dont let technology stop the sale let it get you to the sale faster.Juvenileaffects Diabetes millionsAND PROSPECTS. accomplished. Often times the results are astounding. that needs a degree of expertise in managing oor trafc and keeping a relationshipMany sales staffs are holding on to the past Mary Tyler Moore International Chairman and causes long- with your client base. Part of changing the and will not change, They hide within and term complications like blindness 20 Groups for service, parts and body shopcurrent culture is to invest in equipment around the culture of names on match bookWE HELP YOU GET and kidney failure. Not to mention managers create tremendous opportunities to and training. You should provide each sales covers, no phone numbers, no accountability develop good people and to sustain energy inperson with a computer at his or her desk.and systems that can be manipulated.pain and worry no kid should haveA LOT MORE MILEAGE these departments.Sharing computers or kiosks is a sure way to fail. Managing a database is a work in Owners can change the culture by not allowing behavior that will not adopt to new to live with. But were closer than OUT OF THEM.Right now, instead of arbitrarily cutting ever to a cure. Your help makes life- progress with a purpose. That purpose isand current proven methods of operation. expenses to the service department and partsnot just to collect data, but use that data toWe all want the magic salesperson who saving research possible. department, many dealers are maximizing increase your odds of closing a deal. The doesnt need to be supervised, who followsCall 1.800.533.CURE or visit their opportunities with an investment into Lets roll. the departments that can generate additional combining of digital data and the sales up, who has high CSI scores and who has www.jdrf.org. gross. We believe these dealers will be wellprocess is part of changing the culture and customers that just keep coming back to ahead of the game when the market turns the benet to management is accountability. buy again. You can have them with the around for vehicle sales. Instead of retreating,Who is working the process will becomeright culture. Mak