2011M

AY

We will be hosting regional PCG Pit Stop® events: June 11 & 12 Chicago July 9 & 10 Austin July 16 & 17 Los Angeles August 13 & 14 St Louis September 10 & 11 Toronto September 17 & 18 Vancouver

Agenda:Sat 2:30 Registration Opens Sun 8:00 General SessionSat 3:00 Exhibit Hall Opens Sun 8:30 - 12:00 WorkshopsSat 4:00 Technology Showcases Sun 12:00 Lunch with KeynoteSat 6:30 Cocktail Reception Sun 1:30 - 5:00 WorkshopsSat 7:30 Dinner with Keynote Sun 5:00 General Session Sat 9:00 Hosted Entertainment Sun 5:30 Cocktail Reception

The PCG Pit Stop® Program includes workshops on: Sell More With Social Marketing Improving CRM Processes Lead Management in Your BDC Google Adwords ROI Google Places Optimization Automotive SEO Microsites and Landing Pages Fixed Operations Marketing Mobile Websites and Apps Integrated Advertising Solutions Implementing Dealer Chat Call Tracking and Monitoring

Tune-Up Your Digital Marketing Strategy

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For additonal conferencedates visit:

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Questions call Carrie Hemphill at 732-450-8200 x2

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TracyMyers 32 why you are The brand, sTupid!if you work at a dealership – whether you’re the dealer principal or you’re a salesperson – There’s something important you need to Know

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do you Know who you are hiring?how to evaluate a screening solution

LonLeneve 40

creaTe a river of LeadsMarkTewart 16

becoMing is beTTer Than wishingMarshBuice 10

susanGivens 08 The MobiLe revoLuTion is bigger Than The inTerneT

generaTing The greaTesT iMpacT on your profiT and saLes in The shorTesT aMounT of TiMe

scottJoseph 30

nosTaLgia: The new goLden nuggeT of sociaL MediagenaeGirard 36

Measuring conversion infLuence in auToMoTive adverTising channeLs

brianPasch 22

do noT de-brand your sToreTroySpring 34

MattBaker 42 “a cusToMer once ToLd Me...”how using Third-party references can help you sell More

an interview with chadBaker & patHayes

richardf.Libin 14 saLes educaTion Today:The reality vs. The ideal, part 2

seanv.Bradley 26 i have an inTerneT deparTMenT. now whaT?

reeseSpivey 28 onLine negoTiaTion brings ouT The True buyers

shelleyMcBride 18 TsunaMi’s waKe Leaves chaLLengesfor The auTo business

shaneBoland 38 increase your MonThLy organic web Traffic froM 2,500 To 25,000 visiTs

richardWinch 24 recenT deveLopMenT iMpacTing deaLerships: googLe’s +1More changes at google in the Last 6 Months Than in the Last decade

sales & training solutionSusanGivens

08 autosuccessonline.com

The MobiLe revoLuTion is bigger Than The inTerneT

It’s hard to ignore the numbers. Mobile marketing is exploding into the mainstream at a much faster clip than even the dizzying pace set by the Web’s emergence during the last decade. Globally today, more than one billion people are accessing the Internet with some sort of mobile device. Morgan Stanley projects more than $119 billion in commerce will be conducted over mobile devices by 2015 — that’s only three and a half years from now.

Currently, 93 percent of the 307 million people living in the U.S. have a mobile device. Of those, 40 percent are estimated to have smartphones, mobile Internet devices or mobile-Web-enabled phones. Do the math: That’s an “addressable” audience of 122 million users this very minute. As smartphones decrease in price and increase in functionality, many experts say the large majority of consumers will have smart phones within the next 12 to 16 months. What is more impressive is how often cell phones are used to research and shop. Unlike computers, cell phones are

always accessible. For this reason, consumers are using them to find product information, comparisons, pricing and retailers who give them a reason to visit their dealership rather than the competition’s.

The Internet fundamentally changed how consumers bought vehicles and how dealers sold them. Now the mobile market is the sequel that will have an even bigger impact because of its rapid growth rate and accessibility to consumers everywhere they go. Last year alone there was a 32 percent increase in mobile Web browsing and a whopping 90 percent increase in mobile app users. “Industry studies show approximately 17 percent of the U.S. mobile audience are ‘auto-intenders’ — people who will buy a new car over the next six months. With 20 million auto-intenders in the mobile universe and one of three of them using a mobile device at some point during their vehicle search process, car dealers need to capture this market,” said Sean Wolfington, owner of www.Tier10Marketing.com.

To help put the world of mobile users into perspective, consider these facts: eBay has one sales transaction via a mobile device every second; mobile users bought more than 72,000 burgers in 72 hours via Groupon mobile coupon apps.

While most dealers do not have a plan to take advantage of this huge opportunity, some of the top dealers are using mobile marketing to attract, sell and retain more customers for a lot less money than traditional advertising.

Some dealers are using mobile apps to make it easier for customers to

buy from their dealership. “We get a lot of leads from our app for a fraction of the cost of Internet leads,” said Brian Benstock, co-owner of Paragon Honda and Acura, the No. 1 Honda and Acura dealer in the world.

“Our mobile app is advertised on all of our newspaper ads, in our service department and it’s a great selling point for salespeople in the showroom. The app has generated a big increase in Website, Facebook and showroom traffic,” said Mike Adler of Laurel BMW, one of AutoNation’s 207 dealerships.

Two apps that help customers shop and buy are Car Factor and Car Price Hero. Car Factor is the No. 1 most downloaded automotive app in the world and it has a four-star user rating, the highest consumer rating of any auto app in the App Store. The app lets consumers build and compare vehicles, view reviews, get pricing and much more. A newly patented app, Car Price Hero, also gives consumers the ability to scan the bar code on a vehicle’s MSRP sticker and get an instant guaranteed low price on every vehicle in the dealer’s inventory. “Dealers can advertise that they can provide Instant Guaranteed Low Price quotes in 60 seconds or less,” said Chad Collier, president of Consumer Driven Solutions, the makers of the CarFactor and Car Price Hero app.

The Car Price Hero app will be made available to the 60+ million Costco, AAA and Navy Federal Credit Union members through their auto buying programs that sold more than 300,000 vehicles last year, more than any retailer in the world. “Affinity Auto Group dealers who are participating in the Costco Auto Program, AAA and Navy Federal will be able to participate in the national Car Price Hero auto program using the Car Price Hero mobile application,” said Jeff Skeen, CEO of Affinity Auto Group, the company who manages the auto buying programs.

Dealers are also using iPad and mobile apps to help salespeople promote the dealership, vehicles, finance, accessories and service. “Since most customers research online before visiting a dealership, they often know more than most salespeople about the vehicle they are considering, and this knowledge gap can hurt a salesperson’s credibility,” said Jim Hughes, co-founder of IntellaCar. IntellaCar’s app helps salespeople quickly access product benefits that are tailored to the customers’ hot buttons (safety,

performance, comfort, convenience, etc.), walk-around videos, pictures, videos about the dealership, certified programs, leasing, finance products, accessories, introduction to service and more.

“When used properly in the sales process, these showroom apps help salespeople increase their closing ratios, average gross profits and CSI because they can answer questions quickly while also building value in the dealership and the products they sell,” said Bruce Polkes, Hughes’ partner at IntellaCar. Dealers are also giving service customers access to these apps on iPads in the service lounge where they can view videos about additional services like car detailing, dent removal and even new and used vehicle specials.

Hundreds of dealers are using mobile apps to retain and resell to their customers. After buying or servicing their vehicle, customers can get a free app that makes their ownership experience more pleasant and provides a free channel of communication from the dealer to the consumer’s cell phone. Dealers give free mobile apps to their customers that allow them to schedule appointments, buy accessories, view their owner’s manual, get roadside assistance, find their vehicle in a crowded parking lot and receive alerts when the parking meter expires or when their kids are going beyond the speed limit. And that’s just the tip of the iceberg of what mobile devices provide. All of these tools improve the customer ownership experience, satisfaction and loyalty when the dealer uses the app to deliver service reminders, recall notices, lease-end tutorials, equity alerts and specials that bring the customer in more often for service, repeat sales and referrals.

“Customers love to use the CarFinder tool to search for vehicles for their family and friends on their phone because it is so easy and cool,” said Garland Webb, co-owner of www.DealerAppVantage.com, the maker of the ownership and retention app that has the most active users.

“Dealers like AutoNation, Penske, Asbury, Sonic, Hendrick, JM Lexus, Paragon Honda/Acura and others are using the app as a referral tool because their customers can show off by building a car on their cell and then connecting their friends with the dealer in seconds,” said Ed Louis, co-owner of www.DealerAppVantage.com.

Dealers are using apps like these to improve the customer experience and to create a channel to communicate with their customers for free anytime, anywhere. “We use free mobile texting to our customers to say ‘happy birthday,’ invite them to dealership events and to promote all our profit centers,” Benstock said.

“Customers love to use the app to make service

appointments and view specials,“ Adler added.

It is imperative that the automotive industry quickly embraces mobile commerce. The rate at which technology is affecting consumers and dealers is unprecedented. “A lot of dealers took a ‘wait and see’ posture when the Internet first arrived, but it seems like they are reacting faster this time around,” Wolfington said.

The writing is on the wall. Mobile marketing is huge. Consumers are eager for the next ‘”cool” app and want to do business with dealers who get it. Dealers cannot afford to take their time getting up-to-speed like they did with the Internet. Dealers must be ready with a clear mobile strategy that ties into their existing marketing plan. The cell phone is certainly not a fad; it’s not going anywhere and will only increase in time and reach. Don’t get left behind.

Susan Givens is the publisher of AutoSuccess. She can be contacted at 877.818.6620, or by e-mail at sgivens1@autosuccessonline.com.

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09the #1 sales-improvement magazine for the automotive professional

10 autosuccessonline.com

leadership solutionMarshBuice

becoMing is beTTer Than wishing

Everyone has wishes — winning the mega million dollar lottery, tossing a penny in the wishing well, even rubbing on Aladdin’s Lamp and making three wishes. We have seen wishes come true when people from all walks of life become instant millionaires.

In today’s social world we watched the modern day rags-to-riches story of YouTube sensation Ted Williams go from homelessness to “heaven” in just a few short days. Ted held up a sign on the side of the road that said he had a God-given talent. His voice is so smooth, it would even make Don LaFontaine (the movie trailer guy) blush with envy. Suddenly, every company clamored in hopes of having his brass pipes promote their product. Like most people whose fortunes have changed instantly, Ted’s heaven turned into his own personal hell, spiraling him from fame to family feuds, to rehab; the weight of his past and present causing him to revert to his old, bad habits. Most lottery winners end up worse than before winning; a large percentage of them losing everything and becoming bankrupt and even homeless in just a few short years.

Long-term success is attributed to becoming who or what you desire to be instead of wishing which can have the life span of lit flash paper. Author Darren Hardy illustrates becoming with that of a thermostat. Set your temperature as high as your expectations and your opportunities will adjust accordingly. An oven doesn’t suddenly get hot, it takes time to heat up to the desired temperature; so too are your successes.

A wish is a want or desire without the legs of action. It only takes a thought to create a wish, but a wish can vanish if no action is taken. Everyone has had a wish while taking a shower; it is the one who dries off and seizes those opportunities of becoming his desires who succeeds. Many find it difficult to become who or what they want because it takes a long-term perspective. There will be short-term

successes and a string of failures, but you must have an unshakeable belief that in the long run you will become what you are working for. There are four pillars to help you stay on track toward your goal and help you become all you can be:• becoming Takes TimeGrow into what you wish to become. Get the microwave theology out of your mind and develop a mindset of an oven; it takes time to warm up and will work more efficiently once the desired temperature is reached. No athlete made it to the hall of fame by his or her name alone. It took hard work — pushing themselves to the limit, learning how to overcome failures and a long-term objective to become world class.

• becoming requires youto be attractiveIf you want to become befitting of success, you must attract it. Remember success is reciprocal — attractiveness attracts success. The same is true for negativity and defeat. You are what you think, eat, say and do.

• becoming Takes disciplineYou cannot get away from this one. This is the main reason why many people quit. Motivational icon Zig Ziglar said, “Most people fail in their dreams not from lack of ability, but from lack of commitment.” If you want to become a better parent, get out of debt, lose weight, be a master closer or a better communicator, it requires you develop a regimen in order to improve your skill in that particular area. Think of discipline as encompassing the very word; become a disciple in what you wish to become (DISCIPLinE).

• becoming Takes responsibilityYou are accountable for what you become. The economy, weather, your childhood or Martians on Mars have nothing to do with who you want to be. You are in complete control of you. When you recognize your

gifts, you can change anything. “If you don’t like how something is going for you, change it. If something isn’t enough, change it. If something doesn’t suit you; change it. If something doesn’t please you, change it. You don’t ever have to be the same after today. If you don’t like your present address, change it — you’re not a tree,” reminds legendary Jim Rohn. Become a lifetime student of your YOU-niversty.

Whatever you “wish” to “become” begins now, not tomorrow. Leonardo da Vinci’s advice rings true 492 years later after his death: “Iron rusts from disuse; stagnant water loses its purity and in cold weather becomes frozen; even so does inaction sap the vigor of the mind.” Choose not to walk around and W.I.S.H. (“What If Something Happens?”) I have news for you: It won’t. The Be-Back Fairy will not show up and sprinkle be-back dust all over prospects with 700 credit scores, nor will the Up-Bus crash in front of the dealership ejecting disoriented, credit-worthy customers wishing to sign paperwork and not negotiate. Instead, believe that what you choose to be will come to you. To become requires you to BeCOME:

be clear with what you want to achieve.

own up to your decisions and tweak the results good or bad — you don’t have to live with results.

Make a move. Don’t just sit there and wish for something different.

encourage yourself and others. Success comes by positive affirmation.

Marsh Buice is the sales manager of Mark Dodge, Chrysler, Jeep. He can becontacted at 866.535.5006, or by e-mailat mbuice@autosuccessonline.com.

http://www.strategicmarketing.com

The Marc Heitz Auto Family boasts three locations in and around Oklahoma City, housing nine American-made brands between rooftops — with their showcase being the group’s new Chevrolet store. Built completely “green” in 2008, the Chevy dealership inventories more than 1,000 new and used vehicles. The Marc Heitz Auto Family prides itself on a loyal customer following, community involvement and an incomparable team of professionals dedicated to customer service. We sat down

with General Manager Chad Baker and Internet Director Pat Hayes to reveal the strategy credited for creating the No. 1 Chevy Dealer, the “Biggest Little Ford Dealer,” and the most customer-centric Cadillac Dealer in Oklahoma.

autosuccess: Tell us about the Marc heitz auto family;what brands do you carry?chad baker: Marc Heitz Auto is truly a story rooted in family.Marc’s grandparents owned the Heitz Dairy Farm in NortheastNorman and his father managed a Norman grocery store for 30 years. They taught him that the people in his community are a businessman’s most valuable asset. He took those values as he first entered the automobile industry at 19 years old, where he learned at an early age that satisfying customers and meeting their needs was the key to a successful career. The Marc Heitz Auto Family was established just less than 10 years ago with three physical locations, serving nine lines of vehicles; Chevrolet, Ford, Cadillac, GMC, Buick, Chrysler, Dodge, Jeep and Ram Trucks. Marc continues to live in Norman, Oklahoma with his wife, Pamela and their four children.

as: you have an amazing store at the chevy location;give us a quick tour.cb: We designed this facility to not only sell vehicles, but to be a real destination for our customers and employees. It was built based on a few simple principles: kids, pets, community and cars. From a distance, it looms as a huge log cabin, exactly the motif I had in mind when we engaged our architect. It is friendly, rustic and compelling.

As a pet lover myself, the Chevy store features two dog parks to engageowners and keep them entertained while waiting for service. We alsohave three playgrounds — one inside and two outside — for the rest ofthe family and a 40-foot-tall waterfall feeds a 4,500 gallon fish tank in the middle of our showroom. Customers come in just to get a peek.

We have several “green” features that we consider a big part of our commitment to the community. Designing and sustaining an environmentally sound site is an important part of representing what is possible when conducting business in the 21st century. The Marc HeitzAuto Family are pioneers in this area with power generated by windmill, natural rainwater irrigation and solar glass efficiency, just to name a few. We are always working on leaving a smaller carbon footprint.

We host many community events, from dog costume contests,Jamba Sales and our annual Corvette shows, to bands playing in ouramphitheatre. We love to serve and continue our role as an activemember of our community.

as: if you had to choose one thing that has contributed toyour success more than any other, what would that be?cb: Above all, it boils down to one thing: “Do the right thing all the time because it’s the right thing to do!” Our entire team approaches each day with this mission statement. We strive to meet each of our customer’s perceptions and expectations as our reality. Thanks to this philosophy, we have a high number of repeat customers.

as: how many sales do you average per month?cb: In March we sold just over 500 cars between all three locations, with approximately 175 coming from online customers. That was a record for us.

as: 35 percent internet sales is huge from an already impressive month. what do you attribute that to?cb: I would say it is a combination of hard work, good process and superior technology. We have a centralized BDC that operates to inquire, check and follow through on our customer’s expectations, and that helps us every day.

as: how did you find the “right person” to runa bdc of this scale?cb: Our BDC is run by Pat Hayes. It was a difficult process to find the right person, even through a national search and a few hired professionals. We found Pat in Virginia with a great foundation of BDC knowledge and a tremendous track record of success. We recruited him on the spot. He helped us narrow down our list of vendors considerably and made some dramatic changes by replacing multiple pieces of technology with one integrated platform. Putting those recommendations into action has reduced cost and increased revenue.

as: pat hayes, tell us about your experience;where were you before coming to Marc heitz?pat hayes: I’ve been in the car business for 11 years, first in sales and then in Internet sales. I had the opportunity to setup an Internet department/BDC for a smaller multi-store group, giving me my first chance to forge a BDC hybrid; combining the concepts of a centralized BDC with that of an Internet department so that the sales staff would handle the customer from start to finish. It is the same system that I run today.

From there, I ran the Victory Automotive group, with 20+ locations that annually grew between 10 to 15 percent using an adapted version of this system. I made the move to the Heitz family in 2010, a personally fulfilling endeavor. I am really excited about our progress to date. We face new challenges daily and are eager to solve them.

as: what differences have you found between the Marcheitz family and other groups?ph: One of the most obvious things that differentiates Heitz from any other dealership is the state-of-the-art facility and the progressive, productive environment. This place is an amazing destination store and provides an experience truly second to none. Our success is due to loyal customers created by a unique culture, enhanced internal management and external marketing through technology.

as: so you made some changes in technology.Tell us about that.ph: One of my first challenges was finding a centralized BDC with

the capacity to cover nine brands at three locations. The existing CRM would not allow me to manage a BDC to its full potential. To really look across our stores, my team had to use multiple logins and screens. As you can imagine, the process was neither efficient nor effective in our daily operations; two things that are tantamount to success. Something had to change.

We started the search for a new technology partner and a system that would maximize my team’s productivity. We interviewed numerous vendors and saw a few things we liked, but in the end, it came down to one company that could not only help us with the CRM but also consolidate the eight vendors we had into one integrated system that encompassed our BDC, CRM, ILM, Websites, inventory management, service CRM and marketing efforts — no small task!

My personal focus includes all customers, not just digital customers, and that has presented another challenge in itself. The main change we’ve implemented is the Hybrid BDC — allowing dedicated Internet salespeople to be in place and ready to respond, helping to have the customer and the main salesperson interacting together in real-time and early on. This design builds trust immediately and satisfies the customer’s demand to identify their salesperson during a sale. The ability to maintain follow up sometimes gets put aside. This hybrid really succeeds in filling those unavoidable gaps. Our CRM is set to automatically queue the right ad campaign with an associated budget, then shows measurable results with no user interaction, leaving my busy sales staff to focus on meeting the buyer’s expectations with face time.

as: it looks and sounds like your stores are up to datewith the newest and the best. how much of your process is technology based?ph: Technology is a critical component of everything we do; we recognize and respect it as the cornerstone in growing a successful dealership. Because of this and our all-digital business and accounting offices, we’ve had to solicit technology that would be simple yet extremely versatile. Our new CRM provider helps us tremendously in this area due to their all-in-one software that can be accessed from anywhere Internet access is available.

In particular, all of our sales transactions run through this application; from the time our customers meet us online through to the business office, we have one unified platform that we utilize for all our sales, service and technology needs. Phone calls, e-mails, text messaging and more — our new provider plays a vital role in every format we use to communicate with our customers in the 21st century. The moment data enters our radar, it all completely digital. We have the capacity to scan and create complete digital signatures of everything we do and most importantly, our customer’s records are protected with maximum security.

as: so you chose to partner with vinsolutions?Tell me how you made that decision.ph: It was not an easy choice. I had heard good things and seen a few articles in AutoSuccess so I decided to learn more about the company.I made a detailed list — I called it my “wish list” — and went about the process of asking questions of the VinSolutions team and dealers that were currently using them. I wanted a cloud-based system that was also mobile compatible. I wanted to consolidate CRM with Website

and inventory management to give our sales team a best in class total solution. They provided all that and more. It seemed to be a very good fit and, looking back, it was the right decision.

as: was it an easy change?ph: Change is never easy, and this was a huge change! But the payoff was well worth the effort. We’ve set records in sales from the Internet/BDC team since we launched.

One of the most important aspects of the transition was our Websites.We now have tools as part of the CRM and Website integration that positively impact our day-to-day business and ROI. The immediate result is the visibility I now have to a customer on my Website ata granular level. We can see a customer step foot into our virtual showroom and know that they will never slip through the cracks because their data is captured and follow up happens automatically.With full integration, we can even evaluate our efforts to re-engage lost customers and strategically tailor our plan to close sales.

This intuitive marketing applies not only to sales but also our service department. For example, we used to spend thousands of dollars with various re-marketing companies sending out e-mails and print mailers.With live Website traffic analysis and reporting, we can now focus on what works and truly calculate an ROI. Now we can e-mail market to the customer and watch the actual clicks from the e-mail to our Website live.

as: That sounds very focused.ph: We have found that we actually do a better job of marketing to our customers than most of the “marketing companies.” We’re utilizing the campaign functionality in our new system to generate, execute and then link sales and service marketing campaigns to our database.

If you really think about it, who knows our customers better than we do? It’s just common sense that we are best able to market to them. We have been able to decrease our advertising budget because we are much more precise in our message and we know what is working on an almost real-time basis.

as: have you seen an increase in websitetraffic and conversion?ph: Our visitor count has doubled on our Websites in less than a year and opportunities for both service and sales continue to grow. We are very close to a 20 percent closing ratio — an objective we work towards daily. Website visitors have increased from about 10,000 per month to now almost 20,000.

Live Website traffic monitoring with VinLens lets us study our customers’ behaviors, allowing us to better tailor our SEO and SEM budgets to be more precise in our marketing spend. We analyze which pages track the most visits and which calls to action attract the most conversions. Using that data, we can revise the customers’ Website experience based on what they want. This gives us a chance tostrategize and develop specials based off of what really resonates with the customer. I can’t imagine speaking to a lead now without having this information. Getting leads from third parties now seems cumbersome and, quite simply, not as accurate.

Another competitive advantage is the notification from our CRM when lost customers revisit our Website. This, combined with the marked lost sales process, gives us the opportunity to breathe new life into a whole group of customers that we may never have attempted before. It’s beena game changer.

For more information about Chad Baker, Pat Hayes or the Marc Heitz Auto Family, visit www.MarcHeitz.com.

For more information about VinSolutions, contact the CSO, Sean Stapleton. He can be contacted at 866.240.1996, or by e-mail at sstapleton@autosuccessonline.com.

14 autosuccessonline.com

When working in a challenging sales environment, as dealerships are finding themselves in today, an educated sales force is a must. When people were spending without a second thought in a hot economy, a lack of basic skills could be overcome. These days, however, it’s critical. Last month, we began the discussion of a manager’s role in this education process. Today, let’s take a look at the concrete steps managers need to take to make this happen.

Education changes behavior by giving people the knowledge and skills they need to be successful. It is a process that must be led by and participated in by managers. It cannot be done alone. Effective change is not something you do to people; it’s something you do with them. Our job as managers is to help people win. If our salespeople win, our customers win, we win and the dealership wins. When everyone wins, management is an enjoyable and profitable experience.

Think about how students learn to drive.

leadership solutionRichardF.Libin

saLes educaTionToday:The reality vs. The ideal P

AR

T 2

First they are educated in the classroom and given knowledge of the laws, cars, safety and other topics. Then they are taken into the field with an instructor where the education continues behind the wheel. Parents or other licensed drivers continue the education until the student takes and passes a test. If a driver forgets some of what they learned (aka, gets a ticket), they are sent back to school. In some states, every few years, drivers are required to take a new test based on new information and laws they should have learned, ensuring that the education continues.

Do sales managers follow the same format with their employees? Most do not. If anything, they have their teams memorize a bunch of information the customer cares little about and tells them they are ready. Managers must help their salespeople develop an attainable projection of their goals, which becomes a roadmap guiding them to success. This comes through well-planned and consistent education. Without this, it is like

telling a driver to go to a specific location simply by heading west. Unless they have a roadmap, they’ll never arrive at the destination.

get involvedManagers must actively participate in their team’s education. They should model behavior, observe, coach and continue to provide new information on a daily basis. They have to involve their teams so they understand the goals, and gain the information and processes needed to attain them.

never stray from the basicsMost businesses don’t suffer from a lack of new ideas. They suffer because they lack the understanding that

many of the old ideas still work but are under-utilized. Education does not necessarily mean finding something new — the latest trend. Start with and stick to the basics.

Keep it relevantIf someone wants to work in construction, should you teach them how to paint a mural or to build a wall? Authentic learning — learning that is functional and meaningful — is most likely to occur when the problem, issue or topic is tied to the salesperson’s job responsibilities and goals. Include a series of experiences, conversations and activities that allow salespeople to learn in the context of answering the question, “Why is this relevant or important for me in my job now and in the future?”

Make it practicalEducation, above all else, needs to be practical. If the content is not linked to the salesperson’s day-to-day tasks, the return on investment will be low. It is important to thoroughly understand the challenges that staff face and build an educational program to guide problem solving and/or suggest solutions.

Done this way, education includes four distinct elements: gaining knowledge, practicing or applying the knowledge, integrating feedback and coaching to enhance performance. Keep in mind, there is no future in any job; the future is in the person who holds the job. By providing continuous opportunities for education — not simply providing quick-fix training — managers will reap the rewards of successful salespeople who cultivate loyal clientele.

Richard F. Libin is president of APB-Automotive Profit Builders, Inc. He can be contacted at 866.450.6853, or by e-mail at rlibin@autosuccessonline.com.

ffective change is not something you do to people; it’s something you do with them. Our job as managers is to help people win. If our salespeople win, our customers win, we win and the dealership wins.

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sales & training solutionMarkTewart

creaTe a riverof Leads

Every salesperson is really in two businesses: the people business and the marketing business. If you are great with people but don’t have any customers to demonstrate this quality to, you’re in trouble. Marketing must become the No. 1 function of any business, including sales. Marketing precedes sales.

Begin to think in terms of leads, not sales. You need marketing that will generate leads. Most salespeople think only in terms of advertising. Salespeople either wait for their business to advertise, or take a blind “stab-in-the dark” approach to advertising. Usually, the results are minimal to non-existent.

One-stage advertising asks people to buy now. For most salespeople, this technique is too expensive and will lead to too few results. A better technique is two-stage marketing. Two-stage marketing is designed to get interested parties to raise their hands, so to speak. You just want to create leads from qualified potential customers. Lead generation = dollar creation.

There are several techniques to get leads. One way is to create a special report. For example, this report may have a title of “Ten Things Every Car Buyer Must Know.” It’s always best to create a simple report that walks customers through the process. Paint a picture of the “do’s and don’ts” of car buying. Be an advocate to the buyer in order to create trust. When you write the report, follow some important, time-honored advice: “Enter into the conversation the customer currently has in their mind.” In other words, TLC — think like a customer.

Next, think of how you can get the potential customer to learn about your report. Where do your customers hang out? Where do they live? What do they do? Where do they go? Where do they belong? You may pass out the reports. Run an ad in the local newspaper publishing an “800 hotline” number for people to receive the report. Create an alliance with other businesses to give reports out to benefit their customers. Always think of ways to benefit other businesses as well, so they will want to give out your report.

Cross-promote between businesses such as restaurants, body shops, car washes and insurance agents. You promote their business and they give out a coupon for yours. Make the coupon a two-stage mechanism by providing something of value, such as information or a free gift, rather than a discount or special deal.

Go to the reference desk at your public library and study the SRDS: Standard Rate and Data Service Guide. You will find endless streams of information and ideas on how to access lists and groups of potential customers. You may buy subscriber lists from magazines that appeal to your potential customers.

Create a “Be-Back” CD and give it to every person who does not buy from you. In the CD, give them the reasons to do business with you and create a hook. Get a list of inactive or orphan owners from your business and begin to send a three-stage mailing sequence trying to get them back into the fold.

When you create a river of leads, your pipeline of sales never dries up.

Mark Tewart is the president of Tewart Enterprises, and the author of the best seller, How To Be A Sales Superstar. He can be contacted at 866.429.6844, or by e-mail at mtewart@autosuccessonline.com.

73percent increase in

used car gross profit2011 year to date

34percent increase in

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2010

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to master the market

When Andrew Walser took over the family business

from his father, Jack, he knew he had some big

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using vAuto’s Live Market suite of tools at his 13

dealerships in 2008, and their sales and used gross

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other dealerships closed around us. I can’t imagine

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You too can become a Market Master. Visit vAuto.com/aw or call 877-828-8614 to learn how.

Andrew Walser, PresidentWalser Automotive Group Bloomington, Minnesota

18 autosuccessonline.com

marketing solutionShelleyMcBride

In a global economy, when something affects one area of the world, other areas often feel the effects, and perhaps no other industry demonstrates this as much as the automotive industry. When the earthquake, tsunami and nuclear disasters hit Japan in March, repercussions started to be felt down the supply lines and dealerships of this country. There are steps, however, that dealers can take to position themselves after these tragedies.

For the U.S. market in new car sales, there will be huge issues, both for stateside dealers and on the world market for suppliers and dealers alike. This was as close to a knock-out as any disaster. While disasters of this magnitude seem to happen more often in countries that have an almost-zero economy, Japan is our largest automotive trading partner, and this goes well beyond car manufacturing. The good news is the Japanese are one of the most resilient people in history and they will recover and be stronger as a nation and a U.S. partner, but in

the meantime, there are going to be challenges.

We are already experiencing shortages of cars and parts. You can’t build their cars here without key components and parts, and Japan supplies many of our domestic parts and components. Some dealers are already feeling the pinch and are concerned about inventory. In many cases when front-end sales drop, for whatever reason, dealers depend on service as a backup. In this case, without needed parts, it could become challenging.

As far as the used car market, it is already robust and, without the new models in abundance, used cars will certainly rise in price, demand and availability. You could actually see some tsunami vehicles that have been refurbished hit our markets. There are thousands of affected vehicles that were in loading areas bound for the U.S. It’s no different than Katrina cars in 2005. CPOs could be affected because people wanting a

deal on a new car of the same brand may hang on longer for inventory levels to recover.

Parts departments can also expect repercussions from the struggles in Japan. The Japanese not only supply the vehicles highest in demand in our country, but they also provide U.S. manufacturers parts and production materials for some of our domestics. A customer could take their car in for a needed repair and have to wait for weeks for the service to be performed.

Many affected dealers could offset the loss, however, by advertising they perform service on other brands that

have parts. Most already do that, but this is a time where they should really step it up.

Manufacturers are already dialing back allocations from Ford to Toyota and Nissan and more. The past three years has been like the road to perdition, and many dealers have already made serious adjustments — this is why those who have are enjoying better business and cash flow. While it’s hard to look for silver linings in situations like this, some dealers — such as those selling domestic, Korean and European vehicles — will improve in sales because of the possible vacuum. This will be a huge opportunity for aggressive dealers and groups to create competitive advertising that positions their products as comparable in quality for less money. Domestic dealers are already leading the MPG battle with convincing success.

Domestic used car dealers will find their sales at about the same level, but will possibly be paying more for their cars at auction. It’s simple supply and demand. One would think that Ford, Chrysler and GM would boost production and make a big deal of it. Example: “Cars when you want them,” or “Why look at a few when you can shop hundreds?” A good creative copywriter can pen some great conquest campaigns. You will, however, need to be delicate with your message. You certainly don’t want to be offensive or appear insensitive during this time. The fact is, dealers could make a positive impact by supporting relief funds through their cause marketing. Since no two dealers are the same, have a marketing expert review your unique situation to determine conditions on the ground before coming up with a marketing strategy. If you don’t already have a good agency that works like a partner, find one. When I was a younger man getting started, I ask an older friend for some sage advice on what a man needs the most. He said “a great woman, a great tailor, barber, mechanic, bartender, banker and a caddy with better eyes than his.” I would add a great marketing person or firm to that list. You only have 24 hours in a day and if you want to be successful, you’ll need combat-trained help.

Shelley McBride is the owner and managing partner of RadioVision Advertising. He canbe contacted at 866.842.1638, or by e-mailat smcbride@autosuccessonline.com.

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22 autosuccessonline.com

marketing solutionBrianPasch

Measuring conversion infLuence in auToMoTive adverTising channeLs

A promising new feature in Google Analytics will show which combination of Websites influenced consumer behavior prior to a conversion action on your Website. The feature is called multi-channel funnels.This new data-reporting tool inside of Google Analytics will give business owners tremendous insights into the top influencing Websites or media platforms that yield a Website conversion. This data will help dealers fine tune online marketing decisions based on which channels assisted and/or produced more conversions.

Studies show that multiple consumer touch points and communication tools influence a conversion. With multi-channel funnels, you will be able to see that your newsletter e-mail was read, which encouraged your customer to click on a link to your blog, where they read an article which encouraged them to click on a link to your Website where they decided to submit a lead.

With multi-channel funnels you can see all the “players” that assisted with the conversion. Google has produced a video (search Google for, “Multi-Channel Funnels in Google Analytics”) to describe this new feature, using the analogy of a basketball team. The players will assist the shooter, so when you find the right “team” that makes more goals, you want to replicate that organization.

In the same way, once you see which communication channels (blogs, videos, press release, Facebook, etc.) are involved in producing the highest conversion paths, you can focus on enhancing that success funnel.

From the Google Website:“Multi-channel funnels reports are generated from conversion paths, the sequences of interactions (i.e. clicks/referrals from channels) during the 30 days that led up to each conversion and transaction. Conversion path data include interactions with virtually all digital channels. These channels include, but are not limited to: • paid and organic search (on all search

engines along with the specific keywords searched)

• referral sites • affiliates • social networks • e-mail newsletters • display ads • any custom campaigns that you’ve created.”

I’m excited about this new opportunity because it will start to shed light on how your digital marketing investments are influencing your customers. For example, you would be able to see if a consumer visited Cars.com or Autotrader.com, which introduced your dealership name in the past 30 days prior to coming to your Website and submitting a lead. You would be able to see if consumers watched your videos, visited your Facebook page, or read a press release prior to coming to your Website and submitting a lead. With the multi-channel funnel, you’ll be able to start ranking and rating your top-influencing mediums, Websites and advertising partners.

This new opportunity to analyze your Website visitors and behavior is being rolled out on a limited basis. After you view the video mentioned above, you can request early access to multi-channel funnels by clicking the “Sign-up for early access” button to the right of the video.

Brian Pasch is CEO of PCG Digital Marketing and the founder of the Automotive Internship Program. He can be contacted at866.849.1560, or by e-mail atbpasch@autosuccessonline.com.

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marketing solutionRichardWinch

24 autosuccessonline.com

The sheer number of moves from Google in the last six months has been astounding. In fact, there have been more important Google changes impacting dealerships in the last few months than in the last 10 years. Consider this flurry of new features and platforms since the fall: Google Places — The “mother” of all changes, a dramatic shift in how local search results are displayedBoost — New PPC option launched with PlacesPreviews — Lets users view Websites before they clickGoogle Instant — Auto-generates search results as you typeHotPot: New social, location-based platform for posting/accessing reviews“Panda” algorithm changes — Punishing low-quality, duped content and other SEO scamsPersonal Blocklist — Users block Websites they dislike from future search results.

In just the last couple weeks we’ve seen Google: • Nix “HotPot” as a name and separate

platform, rolling the review system into Google Places (where it belongs)

• Nix the brand-new “Tags” ad option, where businesses paid a small monthly fee to promote themselves with a short message/bright yellow marker in Places

• Expand “Latitude” to smartphones, letting users check into locations to access local deals

• Launch “MapMaker,” a Wikipedia for maps, allowing users to add places/businesses to Google Maps, even drawing the outlines of buildings, etc.

Dealers are scrambling to understand all these rapid-fire developments, and their search partners are, quite frankly, scrambling to keep up, too. These moves (taken together) clearly reveal how crucial “local” and “social” are to Google’s future plans. Space doesn’t permit explaining all these developments here, but I thought I’d delve into one new local-social-rating tool: Google’s “+1” and what it means for dealerships.

+1: google’s ‘Like’ button forwebsites and ppc adsGoogle launched +1 at the end of March, and it’s designed to let people share their recommendations (their “likes”) for businesses, Websites, articles and search ads by clicking a new “+1” icon when they find something cool, useful or just plain recommend at Google. These +1 recommendations then show up to their friends, family and social connections (i.e., their

connections in Gchat, Gmail, Google Reader, Buzz and soon Twitter). Searchers will see all the +1 votes that business (or ad) has gathered, along with the names and photos of the “likers.”+1 represents Google’s most aggressive move to date into social search and it’s the first time they will bake direct social recommendations into search results. Most analysts agree that Google will soon integrate +1s into their overall search algorithm, so these simple human votes will impact your organic search rankings.

facts about +1• +1 votes also apply to search ads, and

Google tests show they increase clicks, and higher click-throughs improve quality scores, which means advertisers could ultimately pay less for keywords/positions.

• +1 adds a whole new, super-targeted social element to search and will likely impact page rank.

• Don’t expect Google to include a user’s Facebook connections in +1 — Google and Facebook are wildly competitive, and won’t be collaborating on anything in the near future.

• Only people logged into their Google account see the +1s.

• In weeks ahead, +1s will “appear in many more places and Google products and sites across Web.”

• Google said reporting will soon be available in AdWords accounts under the “Dimensions tab.” It’s unclear what that reporting will consist of, but hopefully it will show which keywords and ads best generate +1s.

+1 becomes a part of your online reputation Management:Obviously, with such powerful first-page visibility, getting +1s for your dealership’s Website (and even ads) becomes part of your online and social reputation management. Hence, you need to do what all reputation management requires: Find appropriate, authentic and natural ways for your happy sales and service customers to +1 you and your pages/sites. You can see how it could be quite impactful: Somebody’s searching X brand dealership in X market, and the dealer Websites that people “+1” are going to stand out!

explaining how it works to customers:• The first time they click on a +1 button in

search results, they will be prompted to create a Google profile (they can adjust their privacy settings the way they want).

• If they press +1, they have the ability to undo it immediately.

• If people want to see who they’re connected to in Google’s eyes, they visit the “Social Circle and Content” section in the Google Dashboard.

It’s a significant move dealers need to

understand and get proactive about. And it’s another sign of where the Internet in general, and Google specifically, are headed: interweaving search results, consumer recommendations and social connections into new platforms that will change the way people select businesses. And sure, it sounds like another opportunity for system gaming. But remember, Google has been getting sharp at filtering out gamers, so keep it real with +1 at your dealership.

Google’s recent moves with new products like +1 clearly show how reviews, ratings and social content are getting way more crucial to the search giant. And whether it’s +1, or the social-review-platform-formerly-known-as-HotPot, how big an impact it will have on your dealership will ultimately come down to consumer adoption. For +1 the call is out, because users have to be logged into their Google account to post and see them (and have their contacts updated at Google). Essentially people’s minds will have to shift, and start using Google like a social network. Of course, there has been endless speculation that Google will soon launch some version of a full-blown social network, so that would speed up the adoption process of tools like +1.

All I know is, when Google makes (and sticks to) changes, it transforms consumer behavior. And I know that dealerships win or lose depending on whether they accept and address changes in consumer and search behavior. Dealers should experiment with authentically gathering +1s from happy customers at Google — and keep a watchful eye on all the new Google curveballs sure to come around the bend.

Richard Winch is CEO of eXtéresAUTO. He can be contacted at 866.476.4389, or bye-mail at rwinch@autosuccessonline.com.

recenT deveLopMenTiMpacTing deaLerships: googLe’s +1More changes at google in the Last 6 Months Than in the Last decade

mailto:sales@jandlmarketing.com

26 autosuccessonline.com

marketing solutionSeanV.Bradley

By now, most dealerships have an Internet Department but are perplexed why they still aren’t selling vehicles or making gross profit. The numbers say that between 88 to 98 percent of Americans go online before they step foot into the dealership. Then why are most dealers still not successful with their Internet Department?

Recently, I moderated an extremely diverse Internet Sales 20 Group, which ranged from a small single-point, family owned and operated Chrysler Dodge Jeep dealership to multiple dealer groups to one of the top import dealerships in the country. This session was interesting for me because I was able to see that in 2011, even with all of our advancements in our industry and in technology, dealerships are still not engaged fully into Internet sales and digital marketing, and therefore not maximizing on all of that potential sales and service business.

I am, however, starting to see a change in the tone with dealers. It seems that more and more dealers are receptive to Internet sales and digital marketing; the problem is that they don’t know where to start or how to begin. It’s not just the “import” dealers, or the Internet managers or the younger dealers, or the dealers’ kids who are showing interest; it’s dealer principals and GMs across the board who are coming around. There are dealers who I spoke to as recently as last year who were literally saying “The Internet is the Devil,” and now they are calling me up asking to join the Internet Sales 20 Group. Talk about a complete paradigm shift.

But that brings me to the meat of this article. It is not enough to have an interest in building an Internet Department or BDC. It isn’t enough to spend a ton of money building a department. You need to have a strategy. As Dr. Stephen Covey would say, you need to begin with the end result in mind.

Here’s an overall operational strategy in building an Internet Sales Department. Ask yourself how many units you want to deliver

out of the department. Let’s say that you are at a single-point dealership that delivers 100 units per month (new and used) and you want to increase your overall units to 140. That is an incremental increase of 40 net units. So, you figure one of the best ways you can do this is out of your Internet Department. This makes sense considering that the vast majority of Americans go online before they step foot into your dealership.

First, understand that if you want a net increase of 40 units, you cannot build an Internet Department that sells 40 units and expect to see a net increase at the end of the month. This might not make sense at first, but follow me here. Based on the 50/50/50 rule to sell 40 units out of your Internet Department, you will need to have 80 people show up for an appointment and have 160 appointments made — 160/80/40. You will, in fact, sell 40 units out of the department, but you most likely will not see a net increase in the overall store of 40 units — the reason being that some of those “Internet” deals might have come through another source, (walk in, local, radio, direct mail, prior customer, referral, etc.). This happens to a lot of stores. A lot of dealerships spend a ton of money in their department and sell cars, but all they are doing is “shuffling” money from source to source and exerting a lot of energy. This doesn’t move the overall needle. They don’t net increase on volume or gross.

Here is a quick tip on fixing this issue: Pack the numbers. If your goal is to net increase 40 units, set your projections on selling 50 units. If you sell 50 units out of your department, then you will net increase the 40 that you are counting on. Follow my example:

Based on a 10 percent closing ratio, if you want to sell 50 units, you are going to need 500 leads. These leads can be organically driven from search engine optimization (SEO), video search engine optimization (VSEO), social media, online reputation management (ORM), SEM, third-party leads, third-party aggregators, classified listings, OEM leads and other forms of digital marketing.

Next, you are going to need to have the right amount of people working and managing those 500 leads. The average person can handle between 100 to 150 leads. So, we are talking about four or five people. They need to be trained properly and have a standard operating procedure for what to do, when to do it and how to do it.

With 500 fresh leads, they will make approximately 200 appointments, and 100 people will show up for the appointments. Of those, they will deliver 50 units out of the department. You will be able to count on 40 out of the 50 units to be incremental to the bottom line.

I have numerous examples of this model in effect of every kind of set up. Large stores, dealer groups, small mom and pop stores, etc. The model works and you can count on it.

If you have any questions about this article or would like some examples, please feel free to e-mail or call me with the information below. It would be my pleasure to help you anyway I can.

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail atsbradley@autosuccessonline.com.

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It is not enough to have an interest in building an Internet Department or BDC. It isn’t enough to spend a ton of money building a department. You need to have a strategy.

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sales & training solutionAn Interview with ReeseSpivey

28 autosuccessonline.com

onLine negoTiaTion brings ouT TheTrue buyers

Removing obstacles to the sale is the goal of any salesperson and manager in auto sales, but sometimes this can be tricky. New tools such as online negotiation, however, are proving to be a benefit to this effort, and Reese Spivey, general manager of Geweke Toyota in Lodi, California has certainly found this to be the case. We recently talked with Spivey to get his take on how online negotiation strategy has affected his lead generation efforts — and his bottom line.

autosuccess: how has online negotiation and your overall strategy affected your lead volume?reese spivey: It has had a huge impact, mainly because our Website now has an open invitation for customers to negotiate with us 100 percent risk free without having to set foot in the dealership. Our customers love the buying experience through the online negotiation tool.

We have more than a 65 percent credit application submission ratio, and 75 percent of our customers have a trade. The most profitable pre-owned cars are always the ones you trade for — not those you buy from the auction. Our closing ratio is well above 30 percent with online negotiation. It’s an awesome tool and our customers really seem to like it. as: since adding an entire online negotiation strategy to your existing tools, what is your increase of onsite traffic conversion?rs: Since making a switch in Website providers and adding our online negotiation tool, we have seen a 75 percent increase in form submission. The days of waiting on the “up bus” are over. We need every advantage we can get, and the online negotiation tool delivers.

as: describe the overall quality of your online negotiation system leads. rs: In one word — superior. Most people wouldn’t go through the trouble of negotiating unless there was a sincere desire to buy

something. This tool allows them to do that anywhere at any time.

as: do you find customers are more open and eager to work with you through this medium over traditional methods?rs: Absolutely. The tool allows the consumer to negotiate directly with the person who can make all of the decisions. It eliminates the salesperson from the entire process, and our customers seem to really enjoy that. Every time we make a deal with the online negotiation tool, customers tell me “it was the best buying experience I’ve ever had.” We have never received anything less than a 100 percent satisfied survey from anyone who has used the tool to purchase a new car. Simply put, it removes the fear that comes with walking into a dealership. Everything is done prior to their arrival. It’s a win, win for everyone.

as: do you agree that customers “buy into” using the internet to buy or trade their next vehicle?rs: This is the information age. Almost all consumers do some type of research online before buying a new or pre-owned automobile — everything from reviews on a particular model to the determining a value of their trade. The online negotiation tool takes it one step further. The customer can literally buy a car in his or her pajamas.

as: are most of your leadson in-stock units?rs: Yes. More than 95 percent the leads are on in-stock units. The consumer has done their research and, in most cases, has seen 15 to 20 photos of the car on my Website. From time to time we will have to locate a unit, but not that often.

as: how many of your leads provide good contact information?rs: Around 95 percent. I have never received a bad e-mail address. Some customers will specify “no calls please” or “e-mail only,”

which is not uncommon in the industry. Once the negotiation process has started, the consumer sees how easy it can be to buy a car. They always give accurate information because they are trying to save time and money. Bad information will only slow down the process.

as: how many customers who submit intend to buy within 30 days? rs: Well over 80 percent of our customers fall into that category. Most customers are past the research stage and are ready to make a decision. Once we agree on the numbers, most customers are ready to finish the process within 72 hours, or as soon as his or her schedule will allow. I really like that about this tool.

as: how many of your online negotiation site leads reply back with the intent to buy? rs: I would say that number is about 90 percent. You don’t contact your dentist unless you need your teeth cleaned or have an issue. No one would go through the motions of buying a car unless they have the intent to make a purchase.

Reese Spivey is the general manager for Geweke Toyota. He can be contacted at 866.631.3037, or by e-mail atrspivey@autosuccessonline.com.

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sales & training solutionScottJoseph

30 autosuccessonline.com

I’ll let you in on a secret: When a dealership asks us to help them generate the greatest positive impact on profit and sales in the shortest amount of time, there are key leverage opportunities we always look for first. In just about every dealership, there are opportunities lying dormant that can yield a fast payback while still enhancing long-term growth. The most powerful of these we know is vastly untapped. We know this because almost every client we work with cites it as the best source of business, and yet virtually no one has a system to harness it.

referrals — how to harness Them to rapidly grow your sales and profitPut a pencil to it: In a perfect world, if you did nothing else but facilitate referrals, your business would grow at warp speed. But, let’s look at a more likely scenario.

Start with 1,000 clients. If each referred another 10, and they each referred another 10, you’d be talking to half the population before Father’s

Day. Of course, it doesn’t work anything like that in the real world, but when done properly, managing a referral program does work effectively to draw more business. And, in contrast to the often-prohibitive costs of mass media or conventional advertising, this word-of-mouth marketing works with virtually no costs.

What if you have 1,000 delighted clients, and just 100 of them refer two others to your business? Your client base would increase by 200 people, or 20 percent — what might be called spectacular growth during any economic time. It’s a technique that can generate absolutely amazing results, and yet, it’s so underexploited, it’s a crime.

so, why are Most referral opportunities Lost? it’s because …1. There is no “response device.”At worst, we as business people tend to feel like asking for referrals is the equivalent of making a “hard sell,” and we shy away from it. At best, we give out business cards to delighted customers with the faint hope that they’ll pass

them on to others. Unfortunately, even this falls far short of a “purpose built” referral program.

On the “hard sell” issue, think about it like this: If you don’t ask for referrals, your clients’ friends and colleagues are going to be thrown to the wolves amongst your competitors. Let’s face it — asking for referrals is not a “hard sell.” Most people are just uncomfortable or inefficient at asking for referrals as they ask for orders.

Even though on the surface directly asking for a referral may seem like a simple matter, it’s actually much more complex than asking someone to buy something. As an example, when a customer

gives a referral, they are essentially putting their personal influence and credibility on the line, and many buyers are hesitant to do that before they are able to experience the product themselves. Some people are reluctant to refer under any circumstances. More than 50 percent of customers are predisposed not to give referrals.

While salespeople may not consciously know this, they often experience this phenomenon as “referral resistance.” They brace themselves for it, and they lose their sales “touch” in the process.

2. There is no incentive to act. People love to “gift” something of value. Allow them to be the bearer of gifts, and they’ll be out there promoting you.

Furthermore, bear in mind that you can afford to “gift” a great deal through these customers because it’s a way of contacting new clients that costs you virtually nothing. More importantly, the lifetime value of these new clients may translate into tens of thousands of dollars for you.

3. There is no expectation for the existing client to provide referrals.This is an absolutely critical component to a healthy referral system. You should make every effort to educate your customers to the fact that you expect referrals.

4. The referral system is “one-way.” Acknowledge the efforts of your most devoted clients by developing a system to follow up with whomever does the referring. It could be as simple as sending a thank-you letter, e-mail, call or text — or as sophisticated as what we call “instant appreciation,” a monetary gift thanking them for the referral. (Always be sure to check with your state’s regulations before instituting an instant appreciation program. There are a few states that prohibit payments for referrals.)

The reality is this: The reason most dealerships don’t have flourishing referral programs is that referrals are often difficult to obtain, and simply asking for one is not the most effective strategy. Make the decision right now to incorporate a referral system into your overall marketing strategy, and watch your cost of customer acquisition dwindle as your profits explode.

Scott Joseph is the president of J&L Marketing, Inc. He can be contacted at 888.835.1689, or by e-mail atsjoseph@autosuccessonline.com.

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marketing solutionTracyMyers

32 autosuccessonline.com

In today’s fast-paced world, people make decisions very quickly.

That means if you want people to employ you or buy your products and services, they first of all need to have heard of you and then they need a good reason to choose you.

becoming a celebrity in your Market The first step in that process is becoming well-known. The fact is we live in a world today where people are obsessed with celebrity. The people who sell the most records are not always the best singers or musicians, and the biggest box office stars are not always the best actors.

Those who get to the top understand the power of celebrity and they work hard at building their image and reputation so that they stay at the top. It’s a lesson that has been learned by top politicians and business leaders — if you want to be president of the United States, you had better write a book or two first. If you want to be a business power broker, a TV show will help.

But the power of celebrity is not only relevant to stars and big corporations. The exact same techniques can be used in any line of business — whether you work on your own, run a business or work for someone else. I’ve seen that work for real in my own life, and time and again I’ve seen it transform the results of some very successful business owners.

The power of becoming a celebrity expert can help take your dealership or your sales career to new levels of success. And I’m going to reveal some of the exact techniques you can use to make it start happening today.

becoming the recognizedexpert in your Market However, let’s be clear, the power of celebrity alone is not enough to make your business or career deliver its full potential. You need substance; not just glamour. That means you don’t just want to be a celebrity. You want to be a celebrity expert.

In order to achieve that, you need to define your market clearly and establish genuine

reasons why you should be the choice in that market. You need to build a brand that positions you as the go-to expert in your field. Now, you may think that brands are only for big businesses with huge advertising budgets. But the fact is that all businesses have a brand — it’s simply the way people perceive them. It’s the same for you as an individual. You have a brand whether you want one or not. So why not make the effort to develop the right brand?

I’m going to show you exactly how to create a powerful brand that makes you the obvious choice in a profitable market.

becoming the “go-To”celebrity expert in your Market You know, there really is something special about you — a reason why people should choose you over the competition. You may just need to work out exactly what that is. If you follow the right process, however, you can easily be the celebrity expert in your dealership. It’s simply a matter of making sure you define the right field of expertise and then take the steps needed to establish your celebrity status.

You need to know how to define your market properly and get clear about your expert status. Then you’ll need to know the techniques you can use to make sure your expertise is known by the right people.

I know the idea of positioning yourself as a celebrity expert can seem intimidating to many people, but it’s simply the fastest, best and easiest way of creating a successful, highly-profitable business or career in any field — if you follow the right process.

I’ve developed the step-by-step process you need to follow to make sure you choose the right market, establish a great celebrity expert brand and promote it to attract your ideal customers easily.

Remember, as a celebrity expert, you’re not just getting publicity. You’re establishing yourself as the first choice among your ideal customers (or employers). That’s the real route to success.

Here are the steps you should follow: 1. Harness the Power of Personality for Your

Brand 2. Match Your Expertise to Your Perfect

Market 3. Defining Your Expert Brand 4. Create And Use Your Celebrity Expert

Personal Story

Over the next few issues, I’ll expand on these steps, and I’ll reveal my 10 proven bonus strategies for building a winning celebrity expert brand. Don’t worry — you don’t have to be an Oprah or a Lady Gaga. This works for everyone; you just need to be yourself.

You may already have taken some of the steps I’ve explained here or you may be starting with a completely blank sheet. Either way, this process will help you build a more satisfying, rewarding and successful career at the dealership.

Tracy Myers, C.M.D. is a noted small business marketing and branding solutions specialist, best-selling author, speaker, car dealership owner and entrepreneur. He can be contacted at 866.860.0029, or by e-mail at tmyers@autosuccessonline.com.

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marketing solutionTroySpring

34 autosuccessonline.com

We all know what “branding” is. It is advertising and actions taken to “brand” your store in a way that will make customers think of your business when they are in the market sometime down the road. Branding messages are everywhere in your daily dealership actions, and it goes far beyond the cute jingle you have had on the radio for years (with the hope kids are singing it to their parents because of how catchy it is).

The way your service advisors treat each and every customer, the way a sales customer feels

when they leave your dealership and the way your employees act in public all lend to long term branding. We call it DNA strands. They all tie together at some point and will eventually be the reason a customer walks on your lot or not. Let’s face it: If they had a bad experience in your service lane, they do not like the jingle as much anymore, and it probably annoys them. Therefore, all your dollars spent on the jingle and ads for it to play over the years really has no stock value to that customer at all.

In the direct mail business, it is important to take de-branding very seriously. Imagine that you do an event, and you see 500 people drive on your lot in five days and you sell 35 cars. What happens to the other 465 people, and what story are they telling their friends, co-workers, neighbors or the person on the stool next to them at the diner? If they were not happy with the “gift” they received or were not helped in a timely manner, what do you think they are saying? What if they were greeted by a salesman knowing that 90 percent of the people only want a gift and got the typical “are you here just for the gift” question? There are many reasons a customer can leave your lot unhappy, and we must all do what we can to prevent it so that the community is not being de-branded by the actions of our employees or the advertising we choose.

When you are planning advertising in the future, ask yourself if putting people on the lot is important or if putting buyers on the lot is important. Everyday, more and more dealerships are making a conscious decision to forgo the 400 extra people on the lot to simply put the 100 people on the lot that want to buy cars. The reason is simple. They do not want to de-brand the store. The salespeople are much more likely to be in their own element and treat people properly as well as help them in a timely manner, etc. Oddly enough the result is the same, 35 cars sold and we all shake our heads in disbelief that it was that easy. The bottom line here: The fewer people complaining at the diner down the street, the better.

Troy Spring is the president of Dealer World. He can be contacted at 866.906.7884, or by e-mail at tspring@autosuccessonline.com.

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marketing solutionGenaeGirard

36 autosuccessonline.com

Michael owns a dealership that has recently started using social media. He decided to get on board and try to build his following through Facebook and Twitter, yet consumers who “Like” his Facebook page keep dropping off. He has been posting facts about his business including specials and new products with limited success. Michael knows that social media is important to grow his business, but is confused about consumers jumping ship. How can Michael keep his customers engaged so that he can continue to build his social media following?

There is a new goldmine in social media that more companies are discovering. That treasure consists of a doorway that bridges the gap between your brand and the consumer. That gold nugget is nostalgia. That’s right, talking about the yesteryears creates that warm fuzzy feeling conjuring up images of childhood, fun and remembrances of a less fast-paced hectic life. In this world of constant change where we are bombarded by texting, e-mails and other forms of marketing, we long for the less complicated times of hot dogs, baseball and apple pie.

At social gatherings you often hear of people bringing up childhood games, toys or food with great joy and camaraderie. An old Radio Flyer wagon, or grandmother sneaking them a brownie before dinner brings a broad smile and instant conversation. Why not use that joy to your marketing advantage? When used properly, nostalgia can be the social media glue between you and your consumer. Here are some tips on how to use nostalgia for your advantage:dos• Pick topics that are directly relatable to

your demographic. For example, if your consumer base grew up in the 1980s, pick topics directly relatable to that timetable including music, social references or trends.

• Ask open-ended questions about the history of your group to get them talking about fond moments in their lives. This can be as simple as asking the question, “What was your favorite song in the ‘80s?”

• Get creative. If you are in the grocery industry, try talking about the fact that you remember when generic cans were black and white. If you are in the communications

industry, try talking about when cell phones were the size of a bread machine.

• Keep it light and humorous. People like to laugh. Humor wins their hearts and their buying habits. Often in social media, consumers are surfing Facebook or Twitter in their spare time. A break of laughter endears your brand to them.

• Be a listener. As your consumer base responds, keep notes on what topics get the most discussion responses. Note them in a file and use them to your advantage. Use responses to tailor future posts as well as your marketing materials.

don’ts• Never pass judgment on responses to your

posts. Let them unfold organically and you will be amazed at the creativity people use to get involved in the discussion.

• Never talk about historical events like politics or religion that could spark too much negative debate.

• If you are missing the creative gene, don’t be in charge of creating the posts. Determine the focus and overall content and have someone on your staff who is creative be in charge of posting.

Need a source of information and inspiration? United Online, Inc. has launched MemoryLane.com™, the largest archive of nostalgic content on the Internet. This Website allows visitors to relive the past with over 100 million pieces of content dating from 1940 through 1999.

Using the tools outlined above will develop the dialog between you and the group and endear your customer to your brand by bringing to the forefront topics that they miss from their past. Echo their history, warm their heart and solidify your brand.

Genae Girard is a speaker, author and entrepreneur. She can be contacted at866.263.5696, or by e-mail atggirard@autosuccessonline.com.

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marketing solutionShaneBoland

38 autosuccessonline.com

Imagine, for a moment, your dealership’s Web traffic went from 2,500 to 25,000 organic visits per month. Sounds impossible right? The short answer is, yes, it is impossible, at least when considering conventional SEO solutions. This type of aggressive movement in organic search is possible, however. I have witnessed it firsthand. By doing enough of the right things, over time, it absolutely is possible to make this type of substantial increase in Web traffic for your dealership.

why conventional seo servicesfall shortAccording to SEO industry experts, the three most important search engine ranking factors do not involve changing anything on your Website. In order, they are:1. Keyword-focused anchor text from external

links2. External link popularity (quantity/quality of

external links)3. Diversity of link sources (links from many

unique root domains)

So, why do conventional SEO services fall short? Typical SEO providers simply offer services which add keyworded content and/or change SEO assets within your dealer Website, such as keyworded title tags, header tags, URL structure and page copy. While these items are certainly important to search engines, this effort alone, however, will fail to produce the type of fruit which can result in substantial traffic gains. In fact, this somewhat basic service does not directly address any one of the three most important factors search engines use to determine how your Website ranks in search.

The ‘oranges first’ MetaphorWhen Stephen Covey speaks about time management, he urges his audience to think more about what they are doing, as opposed to how fast they are getting it done. Making sure the most important tasks are made a priority is the only logical way to approach prioritizing your workload. After all, what sense does it make to do the less-important things before the more-important things?

Covey goes on to demonstrate this concept with the “oranges first” illustration. Imagine you have a one-gallon jar. You fill the jar as full as you can with oranges. Is the jar full? No. Of course not. There are still gaps of air, so you fill in those gaps by pouring a large bag

of uncooked beans into the jar. They fill the nooks and crannies, but you can still see some small gaps between the beans. Next comes a bag of sugar – which when shaken down will fill much more of the jar. Finally, we are able to pour a fairly substantial amount of water into this container of soon-to-be wasted food. Any minute gaps in the sugar will be engulfed by the water until the jar is truly full.

So what is Covey’s point with this illustration? Most would answer this question with, “you can always find more time in the day.” This common response misses Covey’s point completely. The point of the illustration is this: What would have happened if you tried to put the oranges in last? You would not have been able to fit them all in. If you do not put “first things first” — the largest or most important tasks before the smaller or ones of less importance — you may find yourself running out of resources (time, money, etc.) to be able to accomplish those items which are most important.

intestinal fortitude requiredI mentioned in the introduction of this article that, “by doing enough of the right things, over time, it absolutely is possible....” So let’s define what “the right things are” and talk specifically about what I mean by, “over time.” In the spirit of Covey’s time management philosophy, let’s put “first things first” and agree that “doing the right things” must address the aforementioned top-three list.

If you refer back to the top-three list, you should see an obvious pattern emerge. According to Google, the only suitable way to accomplish these three goals is by creating original and relevant content which provides a useful and unique user experience for visitors. The original and relevant content then must be linked back to appropriate (and relevant) pages on the Web asset you are trying to optimize.

Let’s address each of these specific areas in regards to external link building. The first and most cumbersome is addressing the quantity factor. In order to make huge improvements in saturation, and therefore traffic, in search, a massive amount of external links needs to be created. This work can and should be done over time.

This approach does require some time to build

significant momentum, but once in motion, the “mushroom cloud” of saturation will continue to expand. How long will this take? Well, the time it takes to accomplish your desired level of saturation in search is inversely proportional to the volume of links being produced. The more links you produce each month, the quicker you will saturate search results.

The second area mentioned here is the issue of quality. The key is to create a genuinely unique and beneficial user experience. Anything else will be discarded and likely penalized by Google. There are several ways to accomplish this; however, the best technique is to manually create substantial amounts of original and relevant content.

This brings me to number three: relevance. Original content is king, but if it lacks relevance to the page you are linking to, the effort will not be effective. Google’s advanced algorithm will recognize the lack of relevance and fail to give your site favor for the irrelevant or “spammy” links.

Finally, let’s look at the “diversity of link sources.” Blogging is one of the most effective techniques “heavy lifting” SEO providers use to create a significant quantity of high quality and relevant links. However, blogging alone will fail to address the “diversity of link sources” factor. While there are countless options out there that can be used to diversify your link sources, my personal favorite is a suite of niche focused micro-sites. This technique will allow you to apply intelligent and effective strategies to your SEO efforts.

In conclusion, if you are looking to see unconventional improvements in search, you will need an unconventional approach to your SEO strategy. Doing the basics is important; however, an ongoing “heavy lifting” effort is the only way to produce game changing results.

For a free report with specific information about how to take your monthly organic Web traffic from 2,500 to 25,000 visits, e-mail at the address below.

Shane Boland is the director of salesfor BluSolutions Dealer Websites andAutomotive SEO. For more information, contact him at 866.388.1397, or by e-mailat sboland@autosuccessonline.com.

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leadership solutionLonLeneve

40 autosuccessonline.com

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Is your dealership considering an investment in a screening solution? That’s a positive step: It means you understand the importance of knowing who your employees are. Even if the vast majority of your hires turn out just fine, it only takes one unscrupulous employee to create a huge liability risk and undermine the integrity of your entire enterprise. Negligent hiring can cost you big money, disrupt normal business operations and hurt the reputation of your company.

Unfortunately, the screening process has become increasingly complex in recent years. Checks and drug screenings are now performed on a higher percentage of staff members, multi-jurisdictional checks are often necessary, and ongoing changes in state and federal laws and regulations governing hiring practices can make it difficult to ensure your processes are up-to-date and legally defensible.

As you evaluate screening software and services, consider these core criteria: speed, accuracy, compliance and ease of use. Delays

in the hiring process can impose unnecessary burdens on existing staff and cause you to lose the best candidates. Inaccurate or incomplete checks defeat the purpose of screening and put your organization at risk. A solution that doesn’t have built-in protections for your business in the event of an investigation or litigation is no bargain at any price. And a solution that doesn’t deliver results in a user-friendly way is likely to create frustration for HR and other departments that monitor the hiring process regularly.

speed Does your vendor typically take more than 24 to 48 hours to deliver background checks? Plenty of vendors will claim their checks are “faster” than competitors’, but it’s a good idea to ask them to specify average turnaround times and explain in detail how they speed the process up. Top-tier solutions will offer full integration with nationwide sources of online data like CourthouseDirect to pull the majority of their records, rather than relying on third-party court runners to manually retrieve information. Another essential feature is real-

time, 24/7 access to pending, recently completed and archived reports so you don’t have to keep managers or candidates waiting.

accuracyOf course, speed is meaningless if the information provided is inaccurate. Rather than taking claims of accuracy at face value, be sure to ask vendors about the specific measures their organization takes to maintain quality and consistency in their business processes. For example, if a vendor has achieved ISO 9001:2008 certification, you know they have made a formalized commitment to quality and established a systematic set of practices to monitor and maintain quality

assurance throughout the organization. That’s a good sign. Also look for vendors that have a Six Sigma program in place, indicating they’re focused on continuous quality improvement and applying sound methodologies to that end.

complianceReputable screening solutions will have a complete set of compliance provisions in place. There should be automated mechanisms to ensure that your dealership meets all relevant state and federal requirements for things like adverse decisions, notification of applicants and destruction and safekeeping of records.

Drug screening should use chain-of-custody protocols and technology to ensure accuracy and legal defensibility. Also, be sure to find out whether the vendor you are considering manages their own drug screening program, rather than outsourcing it.

Does the screening firm have a compliance department with lawyers on staff? Can they provide access to legal opinions and keep clients informed about changes in legal and regulatory requirements?

Remember that screening information is extremely sensitive. To protect the privacy of applicants and reduce your company’s exposure to risk, choose a vendor that deploys state-of-the art data security and encryption technologies.

ease of useFinally, try out the user interface before you buy. The system should be easy to navigate, and report pages should be designed for eye appeal and optimal readability. It’s especially helpful to have important information summarized at the top of the screen so you can quickly hone in on the relevant details.

Even with most intuitive user interfaces, it’s likely you will encounter a few difficulties when you first implement the system. Make sure that the vendor you select can provide convenient access to customer service personnel who are knowledgeable about all reporting features and services.

When it comes to hiring, it’s important to get it right. The marketplace is teeming with vendors who make a lot of promises, but it’s up to you to find out whether they can deliver what you need.

Lon Leneve is the president & CEO of Compli. He can be contacted at 866.265.8516, or by e-mail at lleneve@autosuccessonline.com.

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sales & training solutionMattBaker

“a cusToMer onceToLd Me...”how using Third-party references can help you sell More

Only decision makers can help people make decisions. But getting people to make a decision to purchase can sometimes seem impossible — even for those salespeople who are expert decision makers themselves.

Just the other day I was speaking with a highly experienced salesperson. While he’s confident in his ability, he’s struggling to drum up new business. After hearing his pitch a few times over, I could tell what was wrong. All he needed was to slightly tweak his approach. Knowing that his ego would likely keep him from listening to any advice, however, I offered him a solution in a different way.

I told him about someone I knew who had faced a similar struggle. This “other” salesperson addressed his problem with a well-known automotive trainer who taught him an interesting trick. By simply replacing the phrase “have you considered...” with “a recent customer of mine considered…” in his approach, customers began to feel more comfortable and trusting of what he had to say. The automotive trainer helped him discover that third-party statements make customers more willing to listen, (not to mention buy).

The salesman I was speaking with understood what he needed to do. He immediately began to implement third-party stories, and sold four more cars that day than he had in the previous week.

Moral of the story: When attempting to guide someone through a process, don’t tell them what to do. Situations like this are best handled through third-party sales technique or the rescue communication tactic. The example above is testament to the power of third-party selling. This article will focus on ways to improve customer rapport, eliminate defenses, and boost your sales through the use of third-party stories and references. If you are interested in learning more about the rescue communication tactic, please see my article in the July 2010 issue of AutoSuccess.

why Third-party selling worksGiving customer advice through statements is telling, not selling. Talking directly to someone is a trigger for ego inflammation. People can feel offended, insulted, embarrassed or even confrontational as a result of directly pointed suggestions for the choices they should make. The third-party technique breaks down these barriers, helping people to hear the content of

the message, not just the words.

Third-party references make a customer feel more comfortable and confident in making the decision you want them to make. Why? Put simply: Third-party technique makes the proposed solution more relatable to the customer.

I hear salespeople talking to prospects all of the time, often directly telling them what they need to do. A few weeks pass and they’ve sold nothing. As a result, they blame customer attitudes (or stubbornness) for the lack of closed business. The customer’s attitude isn’t the problem. It’s the way the salesperson chooses to communicate with the prospect that gets in the way of potential sales. People don’t like to be told what to do. When selling, this rule very much applies.

Consider the story above about the struggling salesman. I never directly told you what third-party technique can do. Instead you self discovered the benefits by reading about a peer’s experience. And chances are, if you’ve made it this far in the article, you’re willing to consider what adopting third-party technique can do for you. Relating the use of this technique to something you can empathize with made it easier for you to decide to continue reading. You established a personal connection.

While you might find this surprising, the same method can and will work on your customers. Building personal ties through third-party technique creates greater value and helps to establish trust.

examples of Third-partyselling at a dealershipWant a better understanding of how to relate this to your store? Here is one (of many) possible situations where third-party sales technique can be used.

Let’s pretend a customer had been perusing your lot for a later model mini-van. Repair bills on her current vehicle are becoming more frequent. The customer wants to consider the purchase of a new vehicle, but she’s not quite sure if it’s more cost effective to purchase a newer model or just keep paying the repair bills.

Customer: “I don’t think I’m really ready to buy a newer mini-van. It’s a big purchase and cash is tight — especially since I’ve had to

pay for unexpected repair bills for the van I have now.”Salesperson: “I understand. I recently had a customer who had also noticed a rise in her repair costs and was trying to decide between keeping her current car or buying a newer version. After considering how much she was driving too and from her office, her son’s soccer practice and her daughter’s dance class, she realized just how much wear she was putting on her car. Not to mention how much she was spending on gas. After drilling down the numbers, it actually cost her less money to upgrade her vehicle to a more energy efficient model than to continue to pay for expensive repairs and gas that accompanied her existing car.”

The statement, “I recently had a customer…” is what makes the difference. Using third-party references like this keeps the conversation non-confrontational, and may help the customer realize a solution for other points of pain she may not have initially considered.

A salesperson not vested in third-party sales technique might have approached the situation by saying:

Salesperson: “I understand that you don’t want to continue to pay to fix your car. You should take a look at a newer vehicle that gets better gas mileage. That way you wouldn’t have to worry about the expensive maintenance and gas bills you’re existing car provides.”

“You should…” is one of the worst phrases to use when selling. Approaching a customer this directly can have detrimental affects on the outcome of the sale. Replacing this phrase with statements such as, “I had a customer in your shoes tell me…” softens the point in a way that makes the customer willing to consider what you have to say.

The possibilities for third-party sales technique are nearly endless. If you are interested in learning more word tracks or reading more role play examples, please request G&A’s Guide to Improving Sales Talent: Third-Party Selling by submitting an e-mail to me with the subject line THIRD PARTY.

Matt Baker is the vice president of sales for G&A Marketing. He can be contacted at 866.618.8248, or by e-mail atmbaker@autosuccessonline.com.

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While Toyota was down 6% nation-ally in 2010, Checkered Flag Toyota actually increased their market share by 25%, increased their sales by 22.5% and serviced over 30,000 more vehicles compared to the same 12-month pe-riod the previous year.

“We were looking for new solutions to help us get back in the game,” said Tim Rayfi eld, General Manager of Checkered Flag Toyota in Virginia Beach, VA. “2009 was a tough year for our industry and we needed a new playing strategy. We were looking for something that would help us attract

Up 175% in Service ROs and 22.5% in Sales Checkered Flag Toyota’s Integrated Sales and Service Marketing Program Hits a Home Run

more customers, sell more vehicles, service more vehicles and improve our customer retention without spending more money to do it.”

In the spring of 2010, Checkered Flag Toyota ran an in-depth 5-year histori-cal assessment of their customer data-base; then ran research and analysis on their local area market and emerging industry and market trends. Th e re-sults identifi ed Checkered Flag Toyo-ta’s ideal market and their perfect pros-pects. By comparing their sales and service history against leading industry consumer databases, Checkered Flag

successfully identifi ed where 90% of their business is coming from.

“Th ere are approximately 1.5 million consumers in the Virginia Beach mar-ket, but only 60,800 are likely to buy or service their vehicle with us,” said Rayfi eld. “We know that a sale from a customer who lives outside our local market and has to drive a long distance to buy a vehicle from us will oft en have a lower gross profi t and is even more likely to have a low retention rate for service and repeat sales because they’re not close by.”

In a Nutshell

Up 175% in Service ROs and 22.5% in Sales Checkered Flag Toyota’s Integrated Sales and Service Marketing Program Hits a Home Run

Success Storyand from March ’10 to March ’11 they have serviced 48,321 vehicles. Th at’s 30,778 more vehicles or an increase of 175%. “Needless to say my service department is sold on this marketing program. Plus, we’ve seen a 124% in-crease in customer service retention since implementing this new strategy,” said Rayfi eld.

Another objective of Rayfi eld’s was to grow his active customer base by tar-geting those perfect prospect consum-ers identifi ed by their research. “We’ve been reaching out to prospective in-market consumers driving Toyotas or conquest vehicles that have a histori-cally-high crossover percentage, and the rate of response has been amazing. Our goal is to reach these in-market consumers before our competitors do, so we can take them out of the market before they buy elsewhere and make them a customer of ours for life,” ex-plained Rayfi eld.

“A surprising bonus to this marketing program is that we’re cashing in on a lot of great one-owner trades for con-siderably less than we would have to pay at auction, which has signifi cantly improved our certifi ed pre-owned business,” explained Rayfi eld. “Earlier this year we ran a ‘Silver Bullet’ cam-paign that off ered above market value for trade-ins when they purchased a new vehicle. We took in 107 trades from that campaign and 52% of our new car deals had a trade. It was a very eff ective campaign,” said Rayfi eld. “We have a healthier overall trade pattern. We trade more single-owner, family-driven Toyotas which beats paying for the ‘unknown’ at auctions any day. Last

year our top-traded model year was a 2000, today our top traded model year is 2007. Th at’s a signifi cant improve-ment and I don’t have to tell you that fetches a much better resale price,” added Rayfi eld.

Checkered Flag Toyota also sought to elevate their brand image by pay-ing more attention to what they were putting in front of their customers. “Th ere was a time when we had mul-tiple vendors contacting our customers with diff erent off ers and inconsistent messaging. It began to confuse our customers and potentially hurt our brand,” said Rayfi eld. “We are more cognizant of the messaging that we promote these days. We make sure our marketing positively refl ects our brand image. We have a more sophisticated look and feel that tends to help gain credibility within the brand and gets a more positive response.”

Checkered Flag invested a lot of energy into fi nding a marketing program that would drive traffi c and increase sales and service more profi tably. With the average cost of generating a single lead ranging somewhere in the ball park of $150, Rayfi eld wanted to be certain that their marketing and advertising eff orts produced results and were not lost on missed opportunities. Checkered Flag uses multiple toll-free 800 numbers on all their mail and email campaigns to monitor and track in-bound calls. Th is helps assure that every customer is treated with the best customer care, courtesy and professional service and that appointments are set and followed up on quickly. “We have to seize the moment whether it’s a potential sale,

someone wanting to schedule a service appointment, or a customer who has a concern. We have to be hyper-responsive to our customers, there are too many op-tions out there today and people are quick to move on – we work too hard to let that happen.”

Cohesive, consistent communication is crucial to Checkered Flag Toyota’s success. Th eir marketing program talks to custom-ers from the moment of purchase with welcome messaging, through the 5-year life-cycle of the vehicle with maintenance reminders, mail and email communica-tions that positively aff ect all their profi t centers: New, Used , Finance, Service and Parts. It’s a smart, strategic approach to at-tract, sell, service and retain more custom-ers profi tably for less cost.

“When you communicate with your cus-tomers, you keep your customers,” said Rayfi eld. “Th is works because we are mar-keting more effi ciently to customers that are likely to continue buying and servicing with our dealership.”

4x6 Silver Bullet

Checkered Flag Toyota increased their market share by 25%, increased their sales by 22.5% and serviced over 30,000 more vehicles, up 175%, compared to the same 12-month period the previous year.

Checkered Flag Toyota conducted exhaustive market research that included a 5-year historical analysis of their sales and service transactions, the local area market and emerging industry and market trends to identify their perfect market.

Checkered Flag Toyota works with a targeted marketing company, www.TeamVelocityMarketing.com, to target customers who have the highest statistical probability of purchasing or servicing with their dealership.

Checkered Flag Toyota consistently speaks to in-market same-brand prospects, and consumers who drive brands with a historical trend of crossing over to Toyota, resulting in a healthier overall trade pattern. Over the last year their top-traded Toyota model year went from a 2000 to a 2007 with much higher resale values.

Checkered Flag Toyota monitors all in-bound calls by using 800 numbers on all their advertising so they can maintain a high-level of customer service and responsiveness that is critical in today’s fast-paced and competitive market.

Checkered Flag Toyota successfully attracts, sells, services and retains more customers for less cost while affecting all their pro t centers, New, Used, Finance, Service and Parts more pro tably by implementing a dynamic new targeted marketing program in early 2010.

•

•

•

•

•

Success Story Success Story

In a Nutshell

In a Nutshell

Checkered Flag Toyota’s market re-search has proven invaluable in de-termining their perfect market and identifying consumers with a higher probability of doing business with them now and in the future, thus creat-ing more loyal and frequent long-term customers who have a higher lifetime value because they will continue to ser-vice and purchase from Checkered Flag Toyota. Plus, having a clearer picture of what was happening in their immedi-ate local market enabled them to refo-cus their advertising eff orts, and costs, away from the typically more expensive broad mass marketing platforms like radio and television, to more targeted and cost-eff ective marketing.

“We found that we could talk to more of our current customers, as well as, ‘true’ prospective customers with a more ef-fective message because we know ex-

actly who to target,” said Rayfi eld. “We used to overspend by sending the wrong types of communications to a broad au-dience, and as a result our pitch was less eff ective, and more expensive.”

Checkered Flag sends targeted mail and email campaigns that have a custom-ized message that refl ects the appro-priate status of the customer’s vehicle. Th ey communicate a consistent, cohe-sive message that positively aff ects all their profi t centers: New, Used, Finance, Service and Parts, and has steadily gen-erated better returns. Not only are the customers targeted successfully, but they speak to them with the right mes-sage based on the status of their vehicle.

“Checkered Flag Toyota has been very successful at sending the right message to the right customer,” said Budd Black-burn, owner of www.TeamVelocity-

Marketing.com, the targeted marketing company that Checkered Flag Toyota uses. “In the past, they’d reach out to a customer who had a three-year-old Camry with emails and mailers from sales, service, fi nance, plus the manu-facturer. Now they send one targeted campaign that promotes multiple profi t centers by customizing the message to what the customer needs at that time,” Blackburn explained. “When the three-year-old Camry owner gets one direct mail or email campaign to extend their warranty or trade-in at above market value for their in-equity Camry it’s more eff ective because the personalized mes-saging is exactly what they’re in the mar-ket for.”

Checkered Flag Toyota’s service has seen the greatest impact for this targeted messaging. Between March ’09 and Feb-ruary ’10 they serviced 17,543 vehicles

Checkered Flag Toyota increased their market share by 25%, increased their sales by 22.5% and serviced over 30,000 more vehicles, up 175%, compared to the same 12-month period the previous year.

Checkered Flag Toyota conducted exhaustive market research that included a 5-year historical analysis of their sales and service transactions, the local area market and emerging industry and market trends to identify their perfect market.

Checkered Flag Toyota works with a targeted marketing company, www.TeamVelocityMarketing.com, to target customers who have the highest statistical probability of purchasing or servicing with their dealership.

Checkered Flag Toyota consistently speaks to in-market same-brand prospects, and consumers who drive brands with a historical trend of crossing over to Toyota, resulting in a healthier overall trade pattern. Over the last year their top-traded Toyota model year went from a 2000 to a 2007 with much higher resale values.

Checkered Flag Toyota monitors all in-bound calls by using 800 numbers on all their advertising so they can maintain a high-level of customer service and responsiveness that is critical in today’s fast-paced and competitive market.

Checkered Flag Toyota successfully attracts, sells, services and retains more customers for less cost while affecting all their pro t centers, New, Used, Finance, Service and Parts more pro tably by implementing a dynamic new targeted marketing program in early 2010.

•

•

•

•

• Checkered Flag Toyota Promotional Materials

Checkered Flag Toyota increased their market share by 25%, increased their sales by 22.5% and serviced over 30,000 more vehicles, up 175%, compared to the same 12-month period the previous year.

Checkered Flag Toyota conducted exhaustive market research that included a 5-year historical analysis of their sales and service transactions, the local area market and emerging industry and market trends to identify their perfect market.

Checkered Flag Toyota works with a targeted marketing company, www.TeamVelocityMarketing.com, to target customers who have the highest statistical probability of purchasing or servicing with their dealership.

Checkered Flag Toyota consistently speaks to in-market same-brand prospects, and consumers who drive brands with a historical trend of crossing over to Toyota, resulting in a healthier overall trade pattern. Over the last year their top-traded Toyota model year went from a 2000 to a 2007 with much higher resale values.

Checkered Flag Toyota monitors all in-bound calls by using 800 numbers on all their advertising so they can maintain a high-level of customer service and responsiveness that is critical in today’s fast-paced and competitive market.

Checkered Flag Toyota successfully attracts, sells, services and retains more customers for less cost while affecting all their pro t centers, New, Used, Finance, Service and Parts more pro tably by implementing a dynamic new targeted marketing program in early 2010.

•

•

•

•

•

Up 175% in Service ROs and 22.5% in Sales Checkered Flag Toyota’s Integrated Sales and Service Marketing Program Hits a Home Run

Success Story Success Story

In a Nutshell

In a Nutshell

Checkered Flag Toyota’s market re-search has proven invaluable in de-termining their perfect market and identifying consumers with a higher probability of doing business with them now and in the future, thus creat-ing more loyal and frequent long-term customers who have a higher lifetime value because they will continue to ser-vice and purchase from Checkered Flag Toyota. Plus, having a clearer picture of what was happening in their immedi-ate local market enabled them to refo-cus their advertising eff orts, and costs, away from the typically more expensive broad mass marketing platforms like radio and television, to more targeted and cost-eff ective marketing.

“We found that we could talk to more of our current customers, as well as, ‘true’ prospective customers with a more ef-fective message because we know ex-

actly who to target,” said Rayfi eld. “We used to overspend by sending the wrong types of communications to a broad au-dience, and as a result our pitch was less eff ective, and more expensive.”

Checkered Flag sends targeted mail and email campaigns that have a custom-ized message that refl ects the appro-priate status of the customer’s vehicle. Th ey communicate a consistent, cohe-sive message that positively aff ects all their profi t centers: New, Used, Finance, Service and Parts, and has steadily gen-erated better returns. Not only are the customers targeted successfully, but they speak to them with the right mes-sage based on the status of their vehicle.

“Checkered Flag Toyota has been very successful at sending the right message to the right customer,” said Budd Black-burn, owner of www.TeamVelocity-

Marketing.com, the targeted marketing company that Checkered Flag Toyota uses. “In the past, they’d reach out to a customer who had a three-year-old Camry with emails and mailers from sales, service, fi nance, plus the manu-facturer. Now they send one targeted campaign that promotes multiple profi t centers by customizing the message to what the customer needs at that time,” Blackburn explained. “When the three-year-old Camry owner gets one direct mail or email campaign to extend their warranty or trade-in at above market value for their in-equity Camry it’s more eff ective because the personalized mes-saging is exactly what they’re in the mar-ket for.”

Checkered Flag Toyota’s service has seen the greatest impact for this targeted messaging. Between March ’09 and Feb-ruary ’10 they serviced 17,543 vehicles

Checkered Flag Toyota increased their market share by 25%, increased their sales by 22.5% and serviced over 30,000 more vehicles, up 175%, compared to the same 12-month period the previous year.

Checkered Flag Toyota conducted exhaustive market research that included a 5-year historical analysis of their sales and service transactions, the local area market and emerging industry and market trends to identify their perfect market.

Checkered Flag Toyota works with a targeted marketing company, www.TeamVelocityMarketing.com, to target customers who have the highest statistical probability of purchasing or servicing with their dealership.

Checkered Flag Toyota consistently speaks to in-market same-brand prospects, and consumers who drive brands with a historical trend of crossing over to Toyota, resulting in a healthier overall trade pattern. Over the last year their top-traded Toyota model year went from a 2000 to a 2007 with much higher resale values.

Checkered Flag Toyota monitors all in-bound calls by using 800 numbers on all their advertising so they can maintain a high-level of customer service and responsiveness that is critical in today’s fast-paced and competitive market.

Checkered Flag Toyota successfully attracts, sells, services and retains more customers for less cost while affecting all their pro t centers, New, Used, Finance, Service and Parts more pro tably by implementing a dynamic new targeted marketing program in early 2010.

•

•

•

•

• Checkered Flag Toyota Promotional Materials

Checkered Flag Toyota increased their market share by 25%, increased their sales by 22.5% and serviced over 30,000 more vehicles, up 175%, compared to the same 12-month period the previous year.

Checkered Flag Toyota conducted exhaustive market research that included a 5-year historical analysis of their sales and service transactions, the local area market and emerging industry and market trends to identify their perfect market.

Checkered Flag Toyota works with a targeted marketing company, www.TeamVelocityMarketing.com, to target customers who have the highest statistical probability of purchasing or servicing with their dealership.

Checkered Flag Toyota consistently speaks to in-market same-brand prospects, and consumers who drive brands with a historical trend of crossing over to Toyota, resulting in a healthier overall trade pattern. Over the last year their top-traded Toyota model year went from a 2000 to a 2007 with much higher resale values.

Checkered Flag Toyota monitors all in-bound calls by using 800 numbers on all their advertising so they can maintain a high-level of customer service and responsiveness that is critical in today’s fast-paced and competitive market.

Checkered Flag Toyota successfully attracts, sells, services and retains more customers for less cost while affecting all their pro t centers, New, Used, Finance, Service and Parts more pro tably by implementing a dynamic new targeted marketing program in early 2010.

•

•

•

•

•

Up 175% in Service ROs and 22.5% in Sales Checkered Flag Toyota’s Integrated Sales and Service Marketing Program Hits a Home Run

While Toyota was down 6% nation-ally in 2010, Checkered Flag Toyota actually increased their market share by 25%, increased their sales by 22.5% and serviced over 30,000 more vehicles compared to the same 12-month pe-riod the previous year.

“We were looking for new solutions to help us get back in the game,” said Tim Rayfi eld, General Manager of Checkered Flag Toyota in Virginia Beach, VA. “2009 was a tough year for our industry and we needed a new playing strategy. We were looking for something that would help us attract

Up 175% in Service ROs and 22.5% in Sales Checkered Flag Toyota’s Integrated Sales and Service Marketing Program Hits a Home Run

more customers, sell more vehicles, service more vehicles and improve our customer retention without spending more money to do it.”

In the spring of 2010, Checkered Flag Toyota ran an in-depth 5-year histori-cal assessment of their customer data-base; then ran research and analysis on their local area market and emerging industry and market trends. Th e re-sults identifi ed Checkered Flag Toyo-ta’s ideal market and their perfect pros-pects. By comparing their sales and service history against leading industry consumer databases, Checkered Flag

successfully identifi ed where 90% of their business is coming from.

“Th ere are approximately 1.5 million consumers in the Virginia Beach mar-ket, but only 60,800 are likely to buy or service their vehicle with us,” said Rayfi eld. “We know that a sale from a customer who lives outside our local market and has to drive a long distance to buy a vehicle from us will oft en have a lower gross profi t and is even more likely to have a low retention rate for service and repeat sales because they’re not close by.”

In a Nutshell

Up 175% in Service ROs and 22.5% in Sales Checkered Flag Toyota’s Integrated Sales and Service Marketing Program Hits a Home Run

Success Storyand from March ’10 to March ’11 they have serviced 48,321 vehicles. Th at’s 30,778 more vehicles or an increase of 175%. “Needless to say my service department is sold on this marketing program. Plus, we’ve seen a 124% in-crease in customer service retention since implementing this new strategy,” said Rayfi eld.

Another objective of Rayfi eld’s was to grow his active customer base by tar-geting those perfect prospect consum-ers identifi ed by their research. “We’ve been reaching out to prospective in-market consumers driving Toyotas or conquest vehicles that have a histori-cally-high crossover percentage, and the rate of response has been amazing. Our goal is to reach these in-market consumers before our competitors do, so we can take them out of the market before they buy elsewhere and make them a customer of ours for life,” ex-plained Rayfi eld.

“A surprising bonus to this marketing program is that we’re cashing in on a lot of great one-owner trades for con-siderably less than we would have to pay at auction, which has signifi cantly improved our certifi ed pre-owned business,” explained Rayfi eld. “Earlier this year we ran a ‘Silver Bullet’ cam-paign that off ered above market value for trade-ins when they purchased a new vehicle. We took in 107 trades from that campaign and 52% of our new car deals had a trade. It was a very eff ective campaign,” said Rayfi eld. “We have a healthier overall trade pattern. We trade more single-owner, family-driven Toyotas which beats paying for the ‘unknown’ at auctions any day. Last

year our top-traded model year was a 2000, today our top traded model year is 2007. Th at’s a signifi cant improve-ment and I don’t have to tell you that fetches a much better resale price,” added Rayfi eld.

Checkered Flag Toyota also sought to elevate their brand image by pay-ing more attention to what they were putting in front of their customers. “Th ere was a time when we had mul-tiple vendors contacting our customers with diff erent off ers and inconsistent messaging. It began to confuse our customers and potentially hurt our brand,” said Rayfi eld. “We are more cognizant of the messaging that we promote these days. We make sure our marketing positively refl ects our brand image. We have a more sophisticated look and feel that tends to help gain credibility within the brand and gets a more positive response.”

Checkered Flag invested a lot of energy into fi nding a marketing program that would drive traffi c and increase sales and service more profi tably. With the average cost of generating a single lead ranging somewhere in the ball park of $150, Rayfi eld wanted to be certain that their marketing and advertising eff orts produced results and were not lost on missed opportunities. Checkered Flag uses multiple toll-free 800 numbers on all their mail and email campaigns to monitor and track in-bound calls. Th is helps assure that every customer is treated with the best customer care, courtesy and professional service and that appointments are set and followed up on quickly. “We have to seize the moment whether it’s a potential sale,

someone wanting to schedule a service appointment, or a customer who has a concern. We have to be hyper-responsive to our customers, there are too many op-tions out there today and people are quick to move on – we work too hard to let that happen.”

Cohesive, consistent communication is crucial to Checkered Flag Toyota’s success. Th eir marketing program talks to custom-ers from the moment of purchase with welcome messaging, through the 5-year life-cycle of the vehicle with maintenance reminders, mail and email communica-tions that positively aff ect all their profi t centers: New, Used , Finance, Service and Parts. It’s a smart, strategic approach to at-tract, sell, service and retain more custom-ers profi tably for less cost.

“When you communicate with your cus-tomers, you keep your customers,” said Rayfi eld. “Th is works because we are mar-keting more effi ciently to customers that are likely to continue buying and servicing with our dealership.”

4x6 Silver Bullet

Checkered Flag Toyota increased their market share by 25%, increased their sales by 22.5% and serviced over 30,000 more vehicles, up 175%, compared to the same 12-month period the previous year.

Checkered Flag Toyota conducted exhaustive market research that included a 5-year historical analysis of their sales and service transactions, the local area market and emerging industry and market trends to identify their perfect market.

Checkered Flag Toyota works with a targeted marketing company, www.TeamVelocityMarketing.com, to target customers who have the highest statistical probability of purchasing or servicing with their dealership.

Checkered Flag Toyota consistently speaks to in-market same-brand prospects, and consumers who drive brands with a historical trend of crossing over to Toyota, resulting in a healthier overall trade pattern. Over the last year their top-traded Toyota model year went from a 2000 to a 2007 with much higher resale values.

Checkered Flag Toyota monitors all in-bound calls by using 800 numbers on all their advertising so they can maintain a high-level of customer service and responsiveness that is critical in today’s fast-paced and competitive market.

Checkered Flag Toyota successfully attracts, sells, services and retains more customers for less cost while affecting all their pro t centers, New, Used, Finance, Service and Parts more pro tably by implementing a dynamic new targeted marketing program in early 2010.

•

•

•

•

•