autosuccessJun07

Check Us Out Online at www.sellingsuccessonline.com

Volume 6 • Issue 1

Instructor, Sean V. BradleyFounder & CEO, Dealer Synergy

• 25 Things you can do immediately to take your department to the next level.• MySpace, YouTube, Google Video:

What’s the big deal and how does it work for me?• Find and leverage the weaknesses of your competition.• Structure your department to maximize profit.• Hold gross and increase volume.• Create a cross-promotional marketing campaign online

at low or no cost!• Powerful Internet sales strategies that utilize Dealer Synergy’s award winning 4P methodology –

Products, People, Process, Promotions.

Shawn Disbrow, Internet Sales Director, Crevier BMW – Mini “Sean V. Bradley & NCM have an effective-passionate approach to verbalize what you’ve been thinking about, but couldn’t find the words for, when it comes to improving your Internet Sales.”

Kurt Mechling, Dealer Principal, Performance Chevrolet “Great seminar, awesome speaker, quality information. The seminar was a fantastic value – a great use of my time. Please feel free to have other ‘DPs’ call me for references, etc.”

Joel Jurado, BDC & Internet Director, Jeffrey Automotive Group “One of the best training sessions I have ever attended. Current statistics and relevant information presented in a great format.”

Lindsey Toscano, BDC Director, Nelson Mazda, OK Brandon Murphy, Owner & GM, Nelson Mazda, OK“Dealer Synergy took Nelson Mazda (single point store) from 7 to 77 units online and to the cover of Digital Dealer Magazine (Feb. ’07). They showed us how to maximize our Internet presence and grow our online sales beyond expectations.”

Attendees & Clients SayAttendees & Clients Say This Is Not A “Commercial” For Products and Services.You Will Learn!

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

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Headlines...Ouch They Can Really Hurt

How to Hire, Train, and Develop 20 Car-A-MonthSales People, Part 2

Developing a Marketing GPS Approach to Reach Your Target Audience

Integrated Search Marketing Funnels Additional 174 Units

The Leading Edge of Leadership Part 2:Understanding Servant Leadership

Dealing With the Fear of Self-Promotion

Who’s Got the Best 0 Percent

AllenCheek

ScottMontgomery

BrianTracy

JimRiesenbach

PaulLong

RalphPaglia

PatrickLuck

WillParquette

BillBates

RalphR.Roberts

DeniseRichardson

The Most Important Customer

Making the Most of Your Media Interview, Part 3Personal Preparation

MarkTewart

PattiWood

DavidKain

God is the source of all supply

BobCarmack

STOP THIEF - Protecting Your Dealership From Online Theft

The Secret of the Crumpled Letter

MichaelYork

Brian Ankney, Sales-improvement [email protected]

Brian Balash, Sales-improvement [email protected]

3411 Pinnacle Gardens DriveLouisville, Kentucky 40245

toll free: 877.818.6620 facsimile: 502.588.3170 web: www.SellingSuccessOnline.com

Patrick Luck, Editor & [email protected] Susan Givens, Vice [email protected] Thomas Williams, Creative [email protected] Dave Davis, Creative Strategist & [email protected]

helping to promote...

Embrace Online Sales, Not Just Marketing

TomHopkinsSetting Realistic Sales Goals

1212

JesseBiter

Lose Unwanted Pounds SeanWolfington

ScottPainter

Offer Points Instead of Discounts and Lock YourCustomers in for Life

Sales and Finance: Pulling Together to Move More Vehicles

HeatherConary

Out of Showroom and Into the StreetGetting Your Outside Prospecting Program Rolling

Breaking Down the Barriersof the Automotive Internet

Developing High-Quality EmployeeCommunications Tools: Employee Newsletter

Richmond Toyota400 Cars a Year to Over 3000 Cars a Year

Delegating Up to Decide

Matthew 4:4 But He answered and said, It is written, Man shall not live by bread alone,but by every word that proceedeth out of the mouth of God.

DavidThomasPower Prospecting = 100 Deals

JeffMorrillFollow Up Tips

8 www.sellingsuccessonline.com

Dealing With theFear of Self-Promotion

BrianTracysts fos ls ms sf fi s

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The biggest obstacle to sales success is the fear of rejection. Where does this fear of self-promotion come from? As we saw, this

negative habit pattern is the result of a long

process of conditioning, starting in early childhood. When you start selling, you bring this fear of rejection with you. And because you are inexperienced at prospecting, when you fi rst try it, you will do it poorly and get poor results. Unfortunately, it is natural that, if you try something and fail at it repeatedly,

you will become tense and uneasy about trying it again. If you call on several prospects and they react negatively to you, you feel hurt and angry. After all, you’ve got your ego fully involved. Your self-esteem is on the line.

When this happens, you move to protect yourself. You avoid exposing yourself to the same emotionally hurtful experiences. You make every excuse to avoid calling on “negative people,” who unfortunately happen to be prospects, your only source of business and income. Soon, this avoidance behavior can become a habit. You may even start to hate the very idea of prospecting. This is normal and natural. It’s what happens to most sales people.

Nor knowing how to prospect properly and well causes a person to do it poorly. When a person prospects poorly, he gets negative results. The negative results reinforce his fear and anxiety about prospecting. He begins to cut down on his prospecting activity. He spends more and more time on non-prospecting activities, or calling on prospects that may be easy to talk to but who will never buy. He will spend much of his time preparingto make sales calls or visiting past customers so he can maintain a semblance of working while avoiding calling on anyone new.

The statistics indicate that there is a turnover of one third of sales people in America every year. This means that one third of sales people are coming into the selling profession and one third of those already in the profession are on their way out each year. The primary reason why people get out of selling and go searching for another job is because they cannot take the emotional stress of calling on new people unsuccessfully.

Don’t let this happen to you. Overcome your fears by confronting them and doing the thing you fear.

Now, here are two things you can do immediately to put these ideas into action.

First, do the thing and you will have the power. Instead of avoiding rejection, seek it out until it no longer bothers you.

Second, take action every day, the earlier and the more often the better. Prepare before and after working hours and then spend every working minute calling on new prospects.

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

PaulLongsts fos ls ms sf fi s

marketing solution

Offer Points Instead ofDiscounts and Lock Your

Customers in for LifeThe airline industry has led the way in creating customer loyalty programs that are not only lucrative but effective in keeping

customers coming back. In the automotive world, dealers tend to focus on service to create loyalty, but a loyalty program based on points can create even greater repeat traffi c, while being a revenue generating business initiative.

Let’s start with an example: You have 20,000 miles saved on airline A and need only 25,000 for a free ticket. Aren’t you more likely to fl y again on airline A than purchase a ticket on airline B? Your decision process would be similar when purchasing mileage-earning credit cards and doing other things that reward you in miles.

Loyalty programs obviously work in the airline industry and have made their way into the retail sectors. Three-fourths of consumers have joined some type of loyalty program — all efforts by businesses to keep customers coming back. If they accumulate points at one store, they are sure to go back to that store for similar purchases.

This idea translates well to the automotive industry. If customers can earn points toward the purchase of their next vehicle by getting service completed at your dealership, they are more likely to service their current vehicles and buy future vehicles from you.

Offering discount offers and coupons in service to drive traffi c is great for the short term, because you get customers to come in. The inherent issue with discounts, however, is that competitors can easily match, or beat your deal. Cash discounts don’t breed loyalty. Offering points toward future service or sales instead of (or in addition to) discounts give customers something to aspire to and get excited about. And when customers can save for something they particularly want (like a new car), points become more powerful than cash.

In 1950, behavioral psychologist B.F. Skinner recognized that a pigeon who got food every time he pulled a particular lever would continue to pull the same lever as long as he was rewarded. Similarly, the service

customer who gets points every time she services her vehicle at your dealership will come back again and again.

If I have even $50 in points saved toward the purchase of my vehicle at your dealership, I am locked in to purchasing my next vehicle from you. After all, that’s my 50 bucks and I’m entitled to it. Taken a step further, what if I can earn more points toward a vehicle purchase by doing the things I do every day? If I can purchase plane tickets or rent cars and earn points toward my vehicle purchase, now I’m thinking about your dealership every day. I’m also interested in fi nding more ways to pull the metaphorical lever. In short, I’m loyal to your dealership.

There is something in it for the dealership, too: Information. First, require an e-mail to participate. Then send them e-mails about ways to earn points — this keeps your name in front of them. Second, track which customers are doing what. With a true loyalty program, you can fi gure out who your best customers are and communicate with them accordingly. Lastly, track your revenue. For every dollar you spend on loyalty, it’s not unrealistic for you to see a $13 ROI. And if you are loyal to your customers, they will in turn be loyal to you.

For a free Pro Forma on how a loyalty program drives sales, e-mail me or give me a call.

Paul Long is the president of there:member group. He can be contacted at 866.630.0221, or by e-mail [email protected].

9the #1 sales-improvement magazine for the automotive professional

If customers can earn points toward the purchase of their next vehicle by getting service completed at your dealership, they are more likely to service their current vehicles and buy future vehiclesfrom you.

Setting RealisticSales Goals

TomHopkinssts fos ls ms sf fi s


Achieving sales volume goals is one of the biggest challenges any automotive sales person faces. This is a pretty straightforward

industry. If you’re not making the cut, you can quickly fi nd yourself cut from the team.

There are so many factors that can affect that fi nal number that you have to stay on top of every aspect of your sales activities and keep making client contacts.

Hopefully, you are dedicated, professional and motivated to achieve your auto sales career goals. If you are not, read no further. Instead, start looking for another product to market — something that lights a fi re in your belly, something you truly believe in.

If you aren’t truly excited about the product you are offering, it will show in your demeanor or in some little thing you say or do while with potential clients. They’ll sense it and little doubts and fears will arise in them about purchasing your vehicle. So, fi rst and foremost, in order to achieve anything in this business, you have to believe in your line of vehicles, in the company you represent and in your own ability to excite others about them.

Let’s assume for now, though, that you do have the knowledge, the belief and the right attitude in place. How do you set and achieve the sales goals? Start by setting a fi nancial goal for yourself for the year. Break it down into quarters and months. Is the monthly goal realistic? If not, you either need to downsize your goal or super-size your skills — you decide.

Next, consider the average amount you earn on a typical automobile sale. Divide that into your monthly earning goal to see how

many vehicles you need to move this month. Consider your gut reaction and fi rst thoughts when you see that number. Is it one of “Hey, I can do that,” or, is it, “Wow, how am I going to do that?”

If it seems easy, consider increasing your sales goal. If it seems like it will be a challenge, good. Your goal should be something that both excites you and makes you stretch a bit each month. When you’re in stretch-mode, you’ll be open to learning new ways of connecting with people. You’ll look forward to making follow-up calls and contacting those who are referred to you. You’ll get out of bed in the morning with excitement to face the day and accomplish something positive.

This next step in achieving your goals is critical: Multiply your sales ratio by the number of vehicles determined above to learn how many people you need to connect with this month. Do you typically sell every fourth client you meet at your dealership? If so, your ratio is 1:4. If you need to get people happily involved in 10 vehicles to achieve your earnings goal, you’ll need to meet 40 of them in order to do so. That’s when the law of averages is working with you.

Is it realistic for you to meet 40 people this month? If not, again, you either downsize your goals or learn new and better ways to meet people, put them at ease and get them to like you, trust you and want to listen to you.

That’s the bottom line of what selling is all about. People buy from people they like. If you’re not likeable, you’re out of luck. If you’re not knowledgeable, they won’t trust you. If you want people to listen to you — take your advice about vehicle ownership — you have to learn to listen to them. If you ask questions and get them talking, they’ll tell

you exactly what they want to own — not just the make and model of the vehicle, but the status, the economy, the cool color, whatever it is that will make them say, “Yes, that’s the car for me.”

So, in getting back to these 40 people you need to meet this month, where are you going to connect with them? Hopefully, you’re not one of those sales people who waits in the lot, hoping the company advertising campaign will bring ‘em to the dealership in droves. To achieve your automotive selling goals, you have to invest time in reaching out to people all on your own.

Call your past clients to see if they’re still happy with their vehicles. These calls shouldn’t take more than two minutes each. It’s just a way of touching base, making them feel important and giving them an opportunity to tell you once again how happy they are. If they’re happy, you have the right to ask them for referral business. If they’re not, you need to know about it because their unhappiness can cost you a lot of future business.

Knowing your target for meeting people is the way to achieve the sales goals you’re reaching for.

Do you ever feel awkward when greeting people who stop by the dealership? Learn to make a powerful, positive fi rst-meeting greeting from Tom Hopkins. Contact us at the address below to hear Tom deliver the exact words to use to put clients at ease.

World-renowned master sales trainer Tom Hopkins is the chairman of Tom Hopkins International. He can be contacted at 866.347.6148, or by e-mail [email protected].


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JimRiesenbach

In March 1995, Autobytel.com went live as the fi rst online car-buying site. At the time, dealers had concerns about sharing what was, until then, closely guarded pricing information or, worse, being shut out of the vehicle distribution process altogether. But what was good for the consumer ultimately proved to be good for the dealer — and the rise of the automotive Internet paved the way for unprecedented sales and a world of new, low-cost dealership marketing opportunities.

Now, 12 years later, with the proliferation of new technologies, including signifi cant advances in search, it’s time for the automotive Internet to reinvent itself. We recently sat down with Jim Riesenbach (current CEO of Autobytel and the former senior vice president of AOL’s Search and Directional Media Group) to learn more about what he sees for the future of the automotive Internet.

AutoSuccess: What’s your impression of the automotive Internet in 2007?

Jim Riesenbach: Speaking for third-party sites, I think the industry has done a good job in terms of providing marketing services for dealers and OEMs, but to be honest, I think it’s time to re-think the consumer experience. I’m not sure at exactly what point we began to lose focus on the consumer, but it was probably around 2000 or 2001 when the “dot-com” bubble burst and the industry became tightly focused on lead generation. The result today is that if you peeled the

branding skins off the major third-party buying sites and lined them up, you probably couldn’t tell them apart. They’re all basically new- and used-car buying funnels designed to wall consumers in until they make a vehicle selection.

AS: But isn’t that the whole point?

Riesenbach: Absolutely, and that’s the problem: By failing to keep pace with consumer needs and focusing so narrowly on the transaction moment, we, as an industry, are limiting the value we can offer to dealers. Look at it from the consumer’s perspective. Right now, if you’re beginning your shopping process, you basically have two options:

One option is to go to a third-party site, where you can have a certain amount of content and inventory, but generally not on a broad enough scope to make a confi dent “purchase” decision on the spot, which is probably why the typical online shopper visits seven sites and submits multiple purchase requests. In this sense, the quality issues we have in our industry are more or less built into the process: Consumers are pushed to the transaction moment, ready or not, which is hurting dealers in terms of closing ratios. You’re still getting much better ROI than through traditional media marketing, but in my opinion, there’s a lot of room for improvement.

The other option for consumers is to shop through a general search engine like Google, which 90 percent of car buyers, in fact, are

doing at some point during the process. But as much as auto consumers are turning to search, it’s a very limited tool for making shopping decisions. If you go to Google right now and punch in “Honda Accord,” for example, you’ll get more than 3 million responses — no joke — and the majority of the highest-ranked listings will link out to third-party sites. That’s an extreme example, but the point is that buyers are being overwhelmed and dealers’ ads are getting lost in an avalanche of largely disorganized results, especially given that studies show 90 percent of searchers don’t bother scrolling past the fi rst three pages of results.

The biggest missed opportunity of all may be the “forgotten” automotive Internet users who aren’t looking to immediately purchase a vehicle, but might be interested in getting their vehicle serviced, for example, or accessorized. Recent studies show that there are millions and millions of Internet users that are searching for automotive information other than what vehicle to buy, which makes sense given that people only buy a vehicle every three to fi ve years and are only in-market about 30 to 90 days. Right now, this large population of automotive consumers have no central place to go on the automotive Internet — which, again, is almost exclusively new and used sales-driven — and dealers, in turn, have very few ways to reach them.

AS: Where do you see things going from here?

Riesenbach: The next generation of sites needs to be a mix of cutting-edge original automotive content integrated with a vertical search experience. That will allow shoppers to quickly access relevant automotive content and inventory from across the Web — not only for new and used vehicles, but also accessories, aftermarket products, ownership resources and enthusiast content.

AS: For those of us who aren’t up to speed on vertical search, how exactly does that work?

Riesenbach: Basically, if traditional search engines are all about fi nding relevant Web sites based on the users’ query, vertical search engines are all about fi nding relevant information from across the Web for a defi ned group of users. If you’ve been to WebMD.com or Kayak.com, for example, you’ve used a vertical search engine. You type in a query, and those search engines scour relevant sources from across the Web and deliver it to you, so you don’t have to jump from site to site.

In my opinion, vertical search will be the next big Internet story. It’s a natural reaction to the exploding Web universe. Ten years ago, there were maybe 100,000 Web sites, but as of last month there are more than a billion. There needs to be a way to fi lter out the “noise” and connect users with shared interests to targeted, useful information. In my opinion, vertical search is a perfect fi t for automotive users, who currently have to work way too hard to fi nd what they’re looking for — either by scrolling through dozens of drop-down bars on third-party sites, or by scrolling through pages of unmanaged traditional search results.

AS: Give us an example of how a vertical search experience like the one you are describing will work

Riesenbach: We’ve developed what we believe will be the fi rst vertical search experience for the automotive marketplace, MyRide.com. On the site, you will type in a search term and our SmartSearch scours select automotive sources across the Web, including our competitors, for the most relevant content and/or inventory, then delivers it in a very user-friendly presentation. So, if you type in “2004 Cadillac Escalade,” you’ll receive an extensive inventory listing, along with an option to view results for Escalade accessories, aftermarket products, service options, and editorial content (reviews, etc.) — all of it drawn from our own content/inventory and relevant content/inventory from other sites. If you want to continue down the buying route, you can

elect to narrow your search down by price or location, for example, and the results would automatically re-set without having to start a new search. That’s indicative of the overall experience of the site: The user has the fl exibility to explore and change directions without having to start the process over again or jump from site to site.

AS: Sounds great for consumers. But how do dealers benefi t?

Riesenbach: The whole point is to deliver more — and higher quality — leads. By providing the best consumer experience on the automotive Internet, we plan on attracting a lot more direct-to-site traffi c, which is generally much higher quality than acquired leads. The process, moreover, is so fl exible and user-driven that when shoppers elect to contact a dealership, they’re generally going to be much more serious and ready to buy than those on traditional sites, who, on some level, are being pressured to make those choices prematurely.

Some of the biggest dealer advantages will be through our used program. Shoppers should have access to roughly 3.5 to 4 million used vehicle listings. Our program dealers will receive premium placement and enhanced listings during used vehicle searches — effectively putting them on top of the Web’s largest used inventory. And each program dealer’s used listings will feature a dedicated, monitored “800” number that enables shoppers to call the dealership

directly. More importantly, within this new pay-per-call program, dealers will only pay for the phone leads they receive. In other words, you can post your entire inventory and pay only for the phone leads generated through the program.

AS: So does that mean the Purchase Request is dead?

Riesenbach: Not at all. It’s just an option, rather than the only option. I should clarify that MyRide.com, along with Autobytel’s network of sites, will still offer the traditional new/used buying funnel and that the search experience is above and beyond that. In fact, we’re working on a local ad program that would enable dealers to place local, inventory-specifi c ads, based on new or used shoppers’ clicks, within the buying funnel. We also have plans for an aftermarket dealer ad product. Bottom line, we are focused on breaking down barriers in the automotive Internet to provide dealers new ways to reach consumers throughout the purchase and ownership cycle. It’s a win-win situation for everyone involved.

For more information on MyRide.com contact Autobytel at the address below.

Jim Riesenbach is the CEO ofAutobytel. He can be contacted at866.433.8825, or by e-mail [email protected].

Breaking Down the Barriers of the

Automotive Internet

Ten years ago, there were maybe100,000 Web sites, but as of last month there are more than a billion. There needs to be a way to fi lter out the “noise” and connect users with shared interests to targeted, useful information.


Embrace Online Sales,Not Just Marketing

ScottPaintersts fos ls ms sf fi s

marketing solution

Last year we commemorated 100 years of the franchise system — a century that saw amazing changes in the cars

themselves but, relatively speaking, few changes in the ways they’re sold. Today, the industry is in the crux of perhaps its biggest adjustment so far: how to fi t the Internet into the equation. Is it merely a sales tool — or can it be used to facilitate the sale itself?

Many in the industry remember the launch of CarsDirect.com back in 1998, and that we came out fi ghting the system — wanting to use the Web to bring cars directly to the people. But now there’s a better way to incorporate the Internet into auto sales — a way that works within the current franchise system and improves the process for dealers and consumers.

There’s an incorrect perception that the full Internet sale must, by its very nature, circumvent dealers. While that may have been the aim back in the late 1990s, today the Internet and Web-based solutions are not competition for dealers, they’re solutions. In fact, companies are using the Internet to improve the process on both sides of the transaction, offering a better buying experience for consumers, and a more effi cient selling experience for dealers.

A Complete Online Transaction is Coming — and It’s Goodfor EveryoneOn the consumer side, the process of buying a new car is fundamentally changing. J.D. Power & Associates reports that 67 percent of new-vehicle buyers use the Internet in their vehicle shopping process.

Thanks to dealers, manufacturers and third-party sites, there’s already plenty of easy online access to data and images for every make and model. The online selling process is in full swing. It’s the online closing of the deal that so far has proved elusive — mostly because the industry and the technology just haven’t been ready for that. Yet.

Today, things are starting to fall into place. Ambitious technology innovators are assembling the pieces, consumer loyalty to affi nity buying groups is on the rise (providing volume in terms of buying power) and progressive dealers are starting

to provide upfront pricing and online access to their inventory data. All of these elements are aligning to make the complete online transaction possible within the next year — and within the franchise system as it exists today.

Dealers that position themselves at the forefront of online buying will benefi t hugely from this evolution.

Moving Consumers Closerto the SaleSo far, despite the best efforts of some innovative online companies, shopping for a car online has been a piecemeal affair: In the end, a consumer still has to fi nalize price and options at a showroom. But, for many consumers, the whole idea of shopping online is to avoid the showroom. That’s not to say avoid dealers — there’s a big difference.

The big leap in the consumer experience will involve moving out of lead generation mode into a process that actually drives buyers closer to the sale while they’re still online. Many auto marketing Web sites today merely focus on lead generation and advertising — so all they really do is try to get consumers to click as many times as possible and view more ads. This may generate lots of revenue for the Web site, but it is not effi cient for either the buyer or the seller.

To fully capture the attention of buyers online, dealers should offer up their inventory for consumers who want to complete more of the transaction online — essentially, treat the Internet as an extension of the showroom. There’s a direct correlation between the accuracy and completeness of data provided electronically, and the number of cars dealers sell. Until dealers are able to give consumers online access to accurate, real-time inventory details — down to the very last feature and spec — their products will be relegated to being commodities.

Emerging Technology Cuts Costs and Improves Operational Effi ciencies For many dealers there’s still a gap between the promise of what the Internet can do for them and the reality so far.

But technology is catching up to the promise. New “cost per action” pricing models are emerging, allowing dealers to pay a fl at fee only when they close an actual sale.

Programs that aggregate groups of buyers and proactively bring them to dealers’ doors are on the rise. Sales process automation tools are dramatically reducing customer acquisition, transaction and overhead costs.

When all of this is done right, consumers benefi t by extension through better deals and a more customer-friendly buying process. And, as we all know, happy customers will remain customers beyond the initial sale.

Here are a few steps dealers should take to move the process along:

• Work with technology and marketing experts to implement Web-based solutions and automate the sales and administration process.

• Offer consumers access to your inventory-tracking dealer management software, so customers can fi nd the exact car they want in your inventory. This will bring you consumers who are further along in the buying process — increasing the chances of a sale, while using fewer resources.

• Give consumers an upfront price, and guarantee it with a printable “certifi cate” that the buyer can bring to the dealership. Customers get the price they expect and dealers waste less time with the traditional back-and-forth negotiations.

• Let buyers view all of the transaction documents online, so there are no surprises at the dealership.

Improved technology and effi ciency results in reduced fee-per-sale — a win/win for the dealer and consumer.

These innovations in Internet marketing capabilities move us closer to a start-to-fi nish online solution for dealers who recognize that long-term survival, and prosperity, are impossible without the Internet — and Internet success is virtually impossible without the help of technology and online marketing experts.

Scott Painter is CEO of Zag, Inc. He can be contacted at 866.438.9808, or by e-mail at [email protected].

Mr. Dealer I’m sure you have heard it all before, Blah, Blah, Blah. The same old sales pitches time and time again. Increase this or increase that with some sort of magic pill. I don’t have a magic pill, but I do have a real solution to dramatically increase key parts of your dealership and I’m willing to back it up with a $10,000 guarantee.

Everything I listed above will absolutely happen. It’s already happened for several dealers and you could be next. As a mater of fact if you sell an average of 100 vehicles a month or more the $250,000 can easily be $500,000 or more a year bottom line profi t increase. No magic pills, no fairy dust, no scams, no slam-bam programs, no old school hard-sell programs that alienate you customers. As a matter of fact, this will positively impact CSI more than anything you will ever do.

What is this Super-Duper Program I am talking about? It’s a somewhat new program that is delivering amazing results. The reason I say somewhat new program is that several dealers have now been on this New Program for about a year and half and have had the results I talked about earlier and several have had increases of over $1,000,000 in just one year! That’s No BS and is verifi able.

Our Blue Sky Program is designed to increase the Blue Sky Value of your dealership dramatically by increasing your income now while increasing key components that most dealerships continuously struggle with.

Please don’t take my word for it; I will let you talk to the dealers who have experienced these things fi rst hand.

What’s the catch? There isn’t one. I am not asking you to buy something, sign a contract or pay me one nickel up front. All I’m asking is a half-hour of your undivided attention.

Here’s the deal…

Not every dealer will be accepted for this program. I purposely don’t do business with everyone. I have found when you try to do business with everyone, you are just doing it for the money and you can’t be everything to everyone. In the long run you wind up making less money and doing business with people you don’t like or respect and that may not be able to be successful no matter what you do. I refuse to do that. Life is too short.

What I do is a personal interview with dealers, go over the program and then do an on-site analysis to see if it’s a good fi t for you and for me. Then if accepted, I let you decide. Although the More Blue Sky Program would benefi t every dealership, I am only looking for a few specifi c dealerships.

This program works tremendously but takes a great deal of work in the beginning by my staff at your dealership to make sure it’s kicked off properly and everybody is moving in the right direction. I personally spend a lot of time, effort and money to make sure it works. Because of this, I have to be selective. In fact, we project only 25 dealers will qualify this year for the program. When we are full, that’s it.

I would like to briefl y chat with you to describe the program in detail. If you qualify for the program, I will let you speak directly to multiple dealersmaking an EXTRA $50,000 or more NET INCOME per month.

What’s the next step?

Just call me at 888 2Tewart (888 283-9278) or 513 932-9526 or e-mail me at [email protected].

FREE Gift Bonus – Just for taking a look at this program, I will give any dealer principal my High Performance Selling DVD FREE! ($597 Value)

Sincerely,

Mark TewartTewart Enterprises Inc

888 2 Tewart (888 283-9278) / 513 932-9526 [email protected]

P.S. For more information go to our FREE 24/7 Information Hotline at: 800 437-1784 Extension 86001

You Are Guaranteed To Increase Your Bottom line by $250,000 This Year or I Will Pay You $10,000!

A Letter and Special Invitation from Mark Tewart

“Mark Tewart helped our dealership grow from 30-40 units a month to 130 units and substantially increased our gross and net pro ts as well. Now that we are on the More Blue Sky Program from Mark Tewart I fully expect our bottom line to grow by an additional $500,000 or more this year.”

Mark Ward, DealerWard Chrysler Carbondale, IL

Would you like to: • increase your gross profi t per vehicle? • increase your repeat sales?

• increase your service business? • increase your service absorption? • start selling value instead of price? • create an unbreakable bond between you and your customers?

• earn an extra $250,000 bottom line this year without having to sell one additional vehicle?

Who’s Got the Best 0 Percent

ScottMontgomery

Everybody’s looking for a way to build their own brand and make their advertising work harder.

And now, more than ever, it’s an absolute necessity.

Here’s the key: Stand for something.

The truth is, your dealership already has a brand. So, unearth it. Don’t expect the ubiquitous “0 percent” to separate you. It won’t.

Lean on yourself. Look inward. Track down an honest-to-goodness insight the competition either doesn’t have or most likely won’t go to the trouble of matching you on.

That’s what manufacturers do. They try to capture a personality. Deliver a truth about themselves that they know, generally through very thorough research, will resonate well with their particular piece of the pie.

For example, Mazda’s “Zoom, Zoom” campaign speaks volumes about the type of products they build and the audience they hope to attract. As does BMW’s “Ultimate Driving Machine.” As does Lexus’s “Relentless Pursuit of Excellence.” As does Volvo’s “The Luxury of Life,” and so on and so forth.

It’s something that makes an emotional connection with their respective targets.

Manufacturers work very hard to set themselves apart. Then, and only then, do they couple it with a product message.

What sets you apart? Is there a particular piece of the retailing puzzle you work harder at than the competition?

Most important, do you have a demonstrable difference you can put out there as proof that you actually stand for something? Do you have the evidence? Can you walk the talk?

One Southern California dealership, West Covina Nissan, is touting their commitment

to virtually limitless customer service.

Now, service happens to be one of those all-too-easy me-toos that generally go no further than “extended Saturday hours,” “factory certifi ed technicians” and the always-popular “free shuttle.”

By strategizing their position, they were right on. They had a number of genuine examples when it came to demonstrating their level of service.

Not least of these was a story they told us about a customer who asked if he could actually sit in and watch his service happen. Rather than fall back on “sorry, our lawyers won’t allow it” the West Covina Nissan folks pulled up a chair, sat him down right there in the service bay and got him a cold drink.

Secondly, rather than hide their customer lounge deep within the bowels of their complex, they literally had it share a glass wall with the service area.

Once again, any customer lounge has a great big plasma and a library’s worth of magazines nowadays. But how many specifi cally design their lounge to share a glass wall with service?

As it turns out, no space in the entire dealership, aside from accounting for obvious reasons, is off-limits to customers. This leads to a very open and comfortable environment where it feels like anything’s possible, which happens to tie in well with their commitment to unlimited customer service, which led to their position and tagline: West Covina Nissan. No limits.

It’s a mantra that rings true because it is true. And it’s a mantra that lives, in posters throughout the dealership for the benefi t of both customers and employees, on table tents on every desktop, on service bay banners, and all the way out to their print and broadcast.

West Covina Nissan stands for something. Now on the other hand, had they selected, say, “West Covina Nissan. Home of 0

percent,” it simply wouldn’t have worked. No one can own a number.

But now, because they stand for something, any number they choose to talk about is just that much more potent.

That’s the power of a brand. It makes the retail side of the business that much stronger.

And once you’ve arrived at a brand of your own, make use of it wherever you can. Whether it’s a high school baseball team’s outfi eld wall, TV or radio, license plate frames, your GM’s interview in the local paper, or your Web site. Spread the word.

So, let’s review. If you truly want to set yourself apart, stand for something.

Never rely on a number to separate you. Somebody down the block or on the next page or on another channel will always match it, or, more likely, have a better one.

Find a real difference. Live the difference. Give evidence of the difference.

All the numbers that then come along for the ride will be just that much sweeter. (Consider, for a moment, high-end retailers with an actual brand-selling parity products for a premium price. How’s that happen? It ain’t magic.)

But whether on your own or with a little help from an expert, get behind your brand with everything you’ve got. And make sure every member of the team does as well.

A strong brand pays dividends both in the short term and the long.

So, fi nd something to stand for. Go fi nd that real difference. And once you do, live the difference. Give evidence of the difference. And that will truly set you apart from the “0 percent.”

Scott Montgomery is the chief creative offi cer at HLF Brandtailers. He can be contacted 866.664.9173, or by e-mail at [email protected].

sts fos ls ms sf fi s

marketing solution


18 www.sellingsuccessonline.com 19the #1 sales-improvement magazine for the automotive professional

PatrickLucksts fos ls ms sf fi s

special feature

When Ron McCauley took over Richmond Toyota, the Central Indiana dealership was selling about 400 new

and used cars a year. Four years and a huge new facility later, that number has increased to 3,000.

One of the most remarkable things about this transformation is the location of the store. Richmond, Indiana has a population of approximately 40,000 people; at fi rst glance, it looks far too small to support the 73,000 square-foot superstore, which is the fastest growing Toyota dealership in the entire Midwest Region.

“If I was looking just in Richmond, this facility is too big,” said McCauley, the dealership’s owner. “But I’m not looking just at Richmond. There are a million people between Dayton, Ohio and Indianapolis, Indiana, and those million people will come to Richmond to buy their new Toyota if we offer them something that they can’t get at the mom and pop stores.”

When designing his dealership, McCauley said he looked at what the customer might like

when looking for a car, or waiting on a car to be serviced. “Pampering” might be the word to describe what was fi nally decided upon.

The dealership has a full-service manicure shop that customers can take advantage of, for free, while they wait for their vehicle in the service bay. There’s also a Seattle’s Best coffee shop, where customers can get a drink or something to eat while they wait or while they look at the vehicles in the showroom. There’s also a cozy area with couches, fi replaces and plasma televisions, and a children’s area with toys to keep the kids occupied while the adults look for their new toys.

Areas like the children’s room are great tools for the sales staff, said Ryan McCauley, Ron’s son and the dealership’s general manager. “It has played a role in a lot of deals,” he said. “The parents come in with two or three kids and they get rowdy. You can lose a deal in a heartbeat. The room keeps them occupied while their parents look at what we have to offer.”

The entire facility is centered around making the customer feel at home and valued. Even the service center is very customer-centered.

When a customer stays on-site while their vehicle is being serviced, the vehicle’s hazard lights are

left blinking to remind the technicians that someone is waiting. “We have 8 fl at bays and 16 10,000 lbs. lifts,” Ron McCauley said. “Our lifts are at a 45-degree angle, so it makes it easier for our technicians to drive the vehicle on or off. There are no 90-degree turns here. A lot of accidents can happen on a 90-degree turn.” When service to the vehicle is complete, it is taken to the detailing area to be washed, for free, before the customer drives away.

McCauley knows that, while the facility is important, it’s only a piece of the puzzle. “What makes you successful is how you conduct business with the people on your team inside the facility,” he said. “We have sales meetings six days a week, and one thing we focus on every day are goals. When we walk through the door, we know

by turning the key on the door, something’s going to happen today. We’re going to get business based on the residual that’s built up from prior advertising or from previous customers. The key is making something happen. When you take a group of people — we have nearly 90 employees — and you get everyone in the mode of making something happen, that’s when you have big days, because you have everybody in a proactive mode, in a mode where they are setting quality appointments, and they are working their workload.”

While the dealership lets the sales people work independently, the management of Richmond Toyota wants them to have the tools to succeed. “A sales man, when he comes through the door every day, has a Book of Business that we’ve helped him put together, and that Book of Business can be worth $100,000 in commissions over the next year. In this book of business, you’re going to fi nd his unsold showroom traffi c, his be-backs, and the customers he’s sold over the past three years. You’re going to fi nd his referrals, his service R.O.s and parts R.O.s, and you’re going to fi nd what we call

new business. You’re going to fi nd everyone he knows, that he has a center of infl uence with, whether it be mom and dad, or aunt or uncle, or next door neighbor, or someone you went to high school with, or fi shing buddy or golfi ng buddy or bowling buddy, he’s got a center of infl uence. We’re going to fi nd all those names and numbers in this Book of Business. Then we manage this Book of Business so that we can get $70,000-80,000 worth of commissions over the next year. Now he’s going to make $30,000-$60,000 worth of commissions just by standing on the point, or taking phone pops. But we have big days, big weeks, big months and big years when we take that Book of Business and we’re really working it daily with our management and sales staff.”

The dealership has a Japanese painting with the Toyota motto “Kaizen,”

which stands for “Continuous Improvement,” prominently in the showroom. That motto is taken very seriously by McCauley and his employees.

“We have the largest Toyota facility sitting here in the Midwest in Richmond, Indiana, selling more inventory than the dealers in Indianapolis or Dayton,” McCauley said. “Why? Because our focus is right, our motivation is right, our vision is correct, and

Continued on page 20

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Richmond Toyota400 Cars a Year to Over 3000 Cars a Year

If I was looking just in Richmond, this facility is too big. But I’m not looking just at Richmond....

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then we support it by the right game plan everyday. Ryan and I were part owners of the No. 1 Toyota store in Kentucky — Toyota of Nicholasville and the Lexus Store of Lexington. When I went there in 1993, that store was selling less than 99 cars a month; when I left, it was selling 600 cars a month, and that’s in Nicholasville, Kentucky. You could walk off the lot and hear cows moo, but we were selling 600 cars a month, new and used. Up here, we can’t hear cows moo, but we can hear the traffi c on I-70, and every time a car goes by, there’s a potential opportunity, whether it’s a lube and oil fi lter, or a used car or new car opportunity.”

Properly motivating the sales staff is key in making the best of those opportunities, McCauley said, noting that the guiding principles of the dealership are “Do the Right Thing,” “Do your Best” and, above all, “Treat Others the Way You Want to be Treated.” These principles led to the store being honored with the Toyota President’s Award in 2004. This award, the most prestigious award a dealership can receive from Toyota, is based largely on customer satisfaction.

“You’ve got to feel it in your heart,”

...we can hear the traffi c on I-70, and every time a car goes by, there’s a potential opportunity, whether it’s a lube and oil fi lter, or a used car or new car opportunity.


special feature

McCauley said, “and get rid of the phony carrots. When you give a sales man a $500 bonus to sell this vehicle, he’s chasing that bonus. When the bonus is gone, you don’t have him anymore. You only have part of the sales man. When you get him to buy in to your principles — do the right thing, do your very best, and treat everyone like you would want to be treated — you get a whole

person every time, and you’re not going to short change the customer who got the sales man who wasn’t motivated. We try to put the right chemistry inside these walls so we don’t fail the customer.”

At the end of the day, however, growth and records are refl ections of what’s really important, McCauley said. “The real gratifi cation we get is not breaking sales records,” he said. “The real gratifi cation comes within these walls. Watching our people get their fi rst house, have their fi rst baby, the smile that comes on their face when they get their car loan approved. When they show pictures of that baby, or invite us over to look at the house they just bought. It’s living the American Dream, and we’re providing the opportunity to earn an above-average income. We’re going to provide you with a big enough opportunity to fi ll your back yard with toys or take that elaborate vacation. We’re going to support you with the right amount of training and the right inventory, and the right marketing and management staff to be as successful as you want to be. All you have to do is grab hold of it, and keep reaching goal after goal. Sales records come when you have people reaching their individual goals.”

Continued from page 19

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How to Hire, Train, and Develop 20 Car-A-Month Sales People, Part 2

BobCarmacksts fos ls ms sf fi s


Last issue I discussed that the main reason for the average closing ratio of 20 to 25 percent is that there are four very distinct personality

types — the Type “A” or dominate person; the Type “B” or very emotional and impulsive person; the Type “C” or very non-assertive, indecisive person; and the Type “D” or very organized, analytical person. The main reason the sales person closes a customer is that he/she meets their own personality type and instantly develop a rapport with each other.

If we close around 25 percent, this means we lose 75 percent of the customers that walk into the dealership — and it’s not all about the price. Most of the reason is the chemistry, or lack of it, with our customers. I had a very intuitive manager that once told me, “most deals are lost because of your words and actions, not the price.” He was right. The key: You must become the other personality type, just like a good actor plays a believable character in a movie.

Let’s start with getting to know and how to become the typically hardcore Type “A” customer. Note: this customer wants to buy today.

How They Process InformationDirect, Fast, Logical, “Bottom-Line” Thinker

Patterns When EnteringThe DealershipThey drive up to the main entrance and walk quickly into the dealership for assistance. If several sales people are outside waiting for a customer, they will challenge the group to determine the strongest sales person by often asking, “WHO wants to sell me a car.” The sales person who steps forward is viewed as the strongest team member. Or, they drive onto the lot and walk directly to the vehicle they want and will become impatient if not approached quickly.

Controlling And Communicating With The Type “A”Match the body language and characteristics above when communicating with the Type “A” — especially body language. What happens when two lions, tigers, or bears meet in the wild and want to claim a territory as their own? The fi rst thing is they have an eye-to-eye staring contest. Most always, the one who looks away fi rst loses. This is also true of the typical Type “A” person; therefore, direct eye contact is critical. They want to deal with strong, assertive people like themselves and if you look away from them, they will usually interpret this as weakness (just like a dominate alpha tiger or bear in the wild) and they will ask for the person in charge, another sales person, or just leave. You can lose the sale on eye contact alone. It is very important that you stand up to them and, as they say, “never let them see you sweat.” This person can detect fear. The Type “A” is going to have an overbearing “vice grip” handshake, so be prepared.

They may also use the “open-hand,” “open-fi nger” technique and if you get caught in the “vice,” it’s going to hurt, so be prepared. Match their handshake as fi rmly as possible while looking them directly in the eyes. Again, this is another test to determine if

they want to do business with you. You may notice they display a small smile after this. If so, you know they have approved you.

Throughout the course of the sale, move very quickly. As I mentioned earlier, they may place a time limit on their trip to the dealership. Don’t directly address the time limit by telling them you can’t sell them a car in 30 minutes and by asking them to come back when they have more time. Simply move fast, walk fast from point to point, and talk “bottom-line,” logical precise answers, direct and to the point. It is critical you know your product and/or know where to locate the product manuals. Never tell them you don’t know the answer to their questions,

as they will view you as unprofessional and will become irritated. They are logical thinkers, and it’s not logical to pay you a commission if you constantly tell them you don’t know. Rather say, “Mr. Smith, that’s a good question and I know it’s important to you. I’m going to look it up to ensure I’m 100 percent accurate.”

The Type “A” will usually make a demand (they may be pointing at you for emphasis) after you greet them, i.e., “I want this Tahoe and I want your best price.” If this happens, simply respond by saying, “I understand” or “no problem” while pointing back with emphasis. “I’m going to get you the vehicle you want, get you the bottom-line price, and get you out fast.” This statement caters to their time-line and expresses exactly what they want to hear. I want to express a word of caution regarding their demand about “best price.” In this example, I used a Tahoe as the vehicle of interest. The Tahoe has approximately a $20,000 price spread from base to fully equipped. What’s the chance of fi nding the exact model they touched at your dealership and at one or two other dealerships? Very slim. Therefore, you must verify that the Tahoe’s are equipped exactly the same, or you won’t have the best price, because only a few equipment additions or deductions can change the price several thousand dollars. Respond by saying, “Mr. Smith, the Tahoe has around a $20,000 price difference from low to high and I’ll be happy to get you the best price, but do you want the best price on the Tahoe you touched or one equipped the way you want it?”

In closing, use a straightforward disclosure of the numbers and focus on the bottom-line (includes TTL). This is what 99 percent of Type “A” people want; therefore, unless otherwise indicated, give them the bottom-line. Most Type “A” people will only negotiate two times and they will almost always tell you they have your deal beat elsewhere as part of their bluff. As I mentioned earlier, if the vehicles are not apples to apples, it may not be a bluff, and because of different (less) equipment, the vehicle is actually $5,000 cheaper at the other dealership. Verify the vehicles are equally equipped, sell yourself, stay fi rm on price, and don’t drop the price in large increments.

Bob Carmack is president of Carmack & Associates, LP and is a professional speaker and trainer. He can be contacted at 866.393.8221, or by e-mail at [email protected].

Characteristics:Aggressive Assertive Always RightCompetitive Decisive Demanding and DirectIntolerant Impatient InvasiveLogical Rude Self Assured

Body Language:Eye Contact is 100Percent Direct

Talk is Fast, Direct,Demanding, Logical

Handshake; Vice Grip, Open Handed

Gestures: Points using their Index Fingers, Taps Quickly

Walk; Very FastPoint “A” to “B”

Paces, Checks Watch, “Super-Man” Stance

ADVERTISEMENT

Targeted direct mail, e-mailand Internet marketing haveemerged as the most effectiveways for our dealership to advertise for less cost and get measurable results. Our most effective new marketing strategy is an advanced direct-marketing

campaign that is staffed by an automotive training company. It generates 30 to 50 extra sales and $120,000 to $175,000 in gross profi t over a three to four-day period. Direct marketing has been the most cost effective way to increase our sales and profi ts and target more customers.Below is a list of marketing strategies incorporated in an event:

• We use emerging technology and online databases to generate targeted lists of prospects that have in-market status and are ready to buy.

• We send high-end mailers that are designed to have the customers go to a Web site or call to register for the event.

• The customer calls are handled by the marketing company’s call center with employees that are well trained to schedule appointments that show. This gives us a full appointment list before the event begins, which helps us manage the traffi c fl ow more effectively.

• The marketing company staffs the event with valet parking, greeters, extra sales staff to handle the extra traffi c, extra sales managers and even back-up F&I managers.

• We execute an event-specifi c sales process on which we are trained, and we typically sell 10 to 18 extra cars a day at an average gross profi t of $2,500 to $3,500 per vehicle.

• The company stays after the event to help get all of the deals ready for funding by the lender and to clean up loose ends after the sale.

These new events are staffed by professional marketingcompanies that bring everything a dealership needs toget the results it wants. We knew direct mail worked, butwe were not having the success that a dealer from our 20 group was having. So he referred us to his direct marketing company, The Wolfi ngton Group. They set up and implemented the whole program for us. By the third day of the event, we had sold more than 41 units for more than $147,680 in gross profi t. In addition, the campaign drove a lot of traffi c to our Web site, and we continued to deliver vehicles weeks after the event. The best part is that after the event we did not have the customer concerns that we normally have when we do a direct-mail campaign and sell a lot of cars in a short period of time. Direct mail has replaced a lot of our newspaper advertising because we have been able to increase our traffi c while spending a lot less money, and the cost per sale is almost half of what we used to spend. A unique element of staffed marketing events is theopportunity for training for our sales people and managers.Our management and sales staff learns more on the showroom than they do in the conference room, and they are able to pick up a lot of best practices by working alongside the experts that staff these events.

Glenn Shepard is the president ofShepard Motors in Rockland, ME.

He can be contacted at 866-239-3846.

Chevy/Toyota Dealer FindsDirect Mail Formula That Works

GlenShepardsts fos ls ms sf fi s

marketing solutionGlennShepard

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In my last article in AutoSuccess, we took a beginning look at developing high-quality employee communications tools.

This month, we’ll take an in-depth look at one of the more common types of employee communications tools: the employee newsletter.

Many companies produce newsletters that they mail externally — to clients, investors and other community relations. Developing a newsletter dedicated to in-house personnel is similar, but allows a consistent method of communications within a company.

Why Produce an Employee Newsletter?

• These are typically mailed to employee’s homes or attached to their paycheck, so you know that they’ve been received, and not lost between mailboxes or departments. Also, this ensures that spouses and partners who are interested in reading them get to see them as well.

• These are distributed in a printed format, so even employees who are not familiar or profi cient with technology can access and enjoy them.

• By putting information in this format, you can ensure all employees are receiving a consistent message about policies and information that pertains to them.

What Considerations do INeed to Make?

• Newsletters can be developed by an in-house team or a third-party provider. Do you have the manpower required to produce a monthly publication?

• If you decide to go with an in-house team, who are the most appropriate people to produce the newsletter? How many people do you have to contribute to this type of publication? How much, and what types of information do you

Developing High-Quality EmployeeCommunications Tools: Employee Newsletter

HeatherConarysts fos ls ms sf fi s

marketing solution

typically have to disseminate?• If you use an in-house team to produce

them, they can take a signifi cant amount of work, depending on how many contributors there are to each edition, and how much information you wish to include.

• Print publications, such as employee newsletters, are diffi cult to track. It is nearly impossible to know who is reading the newsletter, unless you include a survey or other reason for employees to act.

• Producing a print publication requires resources. Money needs to be invested in the actual resources for the newsletter (paper, envelopes, printing and postage). Additionally, human resources, such as the people who work to produce the newsletter, must be accounted for.

What Can We Put in Them?Most companies have vast amounts of information that could be disseminated among employees, both to inform and engage. Some ideas for content:

• Employee birthdays and service anniversaries

• Milestones, such as employees who recently got married, had a child or celebrated other exciting events

• Updates and information on insurance, benefi ts and policies

• Employee of the month profi le• Photos of employee events, such as

training, sales or company trips• Photos and short introductions to new

employees, especially if your company is larger

• Information on company programs, such as Employee Assistance, purchasing and discounts or scholarships

• Upcoming dates and events, such as days that the company is closed, holidays, days for insurance enrollments, training or seminars, or sales events

• Information on community activities,

such as events or groups that the company is sponsoring

How do I Make it Work for My Company?

• Always solicit and respond to feedback. If employees aren’t enjoying the newsletter, then they won’t read or benefi t from it.

• Make it interesting. Try to include both facts (such as information on changes and updates to benefi ts and policies), as well as human interest stories, such as employee profi les.

• Know your limits. If you have a minimal amount of time to invest in producing and managing a newsletter, stay to a shorter format with more key information.

• Keep it simple. It is easier to start small and work your way to a larger, more diverse publication, than it is to start large and maintain it.

• Select an appropriate time frame. A good stretch is a monthly newsletter, although if you’re a smaller company with less information to share and disperse among fewer employees, you may be able to produce a newsletter every other month, or even quarterly.

Need Help Getting Started?Want some inspiration? Not sure where to start? E-mail me to see a sample from another company who has produced an employee newsletter.

Over the next several issues, we will examine several other types of employee communications tools, their pros and cons, and some suggestions for their development.

Heather Conary is a co-owner of ID Communications, a division of Illumination Design. She can be contacted at 866.386.4914, or by e-mail [email protected].


WillParquette

Out of Showroomand Into the Street

Getting Your Outside Prospecting Program Rolling



In today’s competitive automobile retail market, sitting in the showroom and waiting for customers to arrive just won’t get the results

needed. Traffi c is simply not happening as much as we would like. Therefore, our sales people and managers are faced with two choices: Sit and wait it out, or do something.

Part of a sound pro-active marketing plan for the dealership should include outside prospecting, and what better way to start doing this now than to visit other businesses in the dealership’s market area. Start with a friendly and casual, yet professional approach. Bring coffee and donuts on the visits and introduce yourself to as many people as possible while keeping the meetings brief. Here is an outline detailing what to do:

Tell Prospects About:• Dealership location and offerings

(franchises)• Dealership services and amenities• Dealer Web site• New vehicle model arrivals• Factory programs, specials, etc.

Ask Prospects:• Is anyone here shopping for a new or

used vehicle now?• Does anyone here have a friend or

family member looking for a vehicle right now?

• Will anyone be looking for another vehicle in the near future? If so, when? Log this information into the “tickler” system for later follow-up, short or long term.

• Does anyone here need service on their vehicle?

Materials to Leave:• Brochures• Service menus• Business cards• Current dealership ads and specials

Your goal is to bring something back to the dealership, other than a receipt and empty paper bag. Remember, this is not just a sociable visit — it is outside prospecting, and any customer you bring in from the outside is more than 75 percent sold when they arrive at the dealership. Ask for leads and be sure to write down contact information.

If you fi nd someone who is interested and currently in the market, take action immediately. Get their contact information and type of vehicle desired, call the dealership

to verify inventory and make an appointment right then and there. Simply handing the person a business card and saying “come and see me” will not make it happen. Bring the vehicle to the prospect at the appointed time and do your best to sell it. Follow up once you return to the dealership.

Plan to make business visits consistently

and stick with it. Chances are that no other dealership in your market area is doing this so this is your chance to separate yourself from the rest of the pack.

Will Parquette is the training director for Gates Automotive Group. He can be contacted at 866.647.0467, or by e-mail at [email protected].



Developing a Marketing GPS Approach to Reach Your Target Audience

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marketing solution

To ensure your marketing dollars are working for you, conduct research to gather market intelligence. The

following steps will get you on your way to knowing who your customers are and fi nding more like them. Gaining and incorporating customer insights into your marketing campaign will perform much like a GPS navigation system — a precision measurement tool to pinpoint your targeted group.

1. Know Your Current CustomerDevelop a clear view of the demographical breakdown (i.e., age, gender, ethnicity, education, income levels, etc.). It’s important to know if they are fi rst-time buyers or repeat customers. This is a fundamental step in your marketing intelligence.

2. Measure Satisfaction Levelsand Buyer InterestsIt’s important to know what triggers a customer to want to do business with you and what infl uenced their decision to buy.

3. Identify the TargetedGeographical AreasReaching out to a targeted area that has an abundance of prospective customers who meet your profi le may yield much higher results compared to simply casting a net to an undefi ned area.

4. Defi ne EffectiveCommunication ModeIt’s important to determine your customers’ preferred method of hearing about upcoming promotions or announcements. On the surface, one might suggest electronic forms such as the Internet or e-mail as the preferred method, but it really depends on your targeted group. You might be surprised with the results.

5. What’s in it for the CustomerThe marketing collaterals you produce must be concise and give a call to action that’s relevant and important to your prospective customer. If you promote services of interest that are important to your customer, it can have a huge effect. Craft a campaign that emphasizes those features and benefi ts.

It’s important to not only look at survey results by each question, but even more important to analyze the results by conducting a cross tabulation. That is, looking at the correlation between two or more questions and seeing how they relate. As an example from a recent study conducted at a dealership, the fi ndings showed that location is an important attribute in bringing the prospective customer into the dealership; however, it only had minimal infl uence in their buying decision.

There are many factors that tie into the customer’s fi rst impression and on-going reputation of your dealership. It’s crucial to

stay in touch and tap into what’s important to your customer base. Are customers more concerned about getting a competitive price or receiving excellent customer service? Answers to these questions may yield higher returns.

The richer the information obtained, the more you can make informed decisions based on data driven results. Conducting market research is a vital method of gathering customer insights that will give you a competitive advantage and allow you to stay one step ahead of your competitors. It’s important to continuously measure your performance. Studies now show the number of consumers who shop online rising and that consumer interest in purchasing a vehicle rapidly decreases if the dealership does not respond in a timely manner. In today’s market, this may mean within a few minutes. You must be able to deliver superior customer support to increase the likelihood of the prospective customer doing business with you. Remember, your competitors love it when you screw up.

Customer insights should be a vital component in your strategic marketing campaign. If done correctly, it will transform into a Marketing GPS tool that may infi nitely increase the percentage of repeat customers and accelerate sales.

Allen Cheek is the president of CLARITY OMS. He can be contacted at 866.611.0998, or by e-mail [email protected].

RalphPagliasts fos ls ms sf fi s

marketing solution

Integrated Search Marketing Funnels Additional 174 Units

Courtesy Chevrolet in Phoenix, AZ is utilizing an integrated online marketing effort to become the

nation’s leading volume Chevrolet dealer. By integrating marketing strategies, we have generated a 350 percent increase in lead volume, resulting in 174 additional units sold.

Our goal for Courtesy was, and continues to be, to attract and acquire new customers while maintaining a low cost-per-lead in order to maximize marketing return on investment. We utilize advanced search marketing strategies that increase visibility to customers going online, supplemented with branding-oriented campaigns using non-vehicle-based offers designed to instill interest in consumers even before they begin their buying process.

The core objective of our digital marketing strategy is to obtain and maintain a competitive advantage on our Phoenix market region. For Courtesy Chevrolet, it began with understanding the target consumer at a fundamental level in order to capture interest during searches, and then create an online experience designed to promote customer participation and loyalty. We melded online marketing efforts with traditional media such as billboards, radio, television, magazines and direct mail. Additionally, we created targeted microsites, landing pages, and deep links into relevant content within the Web site. Keyword campaigns have helped to precisely target ad delivery to consumers who are seeking information about a particular make or model.

Courtesy Chevrolet was recently featured in a Google Case Study, and I was invited to speak at Google’s Automotive Dealer Executive Summit at Google Headquarters in Mountain View, CA. At the automotive roundtable, we discussed automotive industry trends and reviewed case studies before looking at Google product solutions. Because the automobile business is evolving rapidly on a worldwide basis, Google has realized that eCommerce is having profound

effects on the automobile industry. With the intense increase in consumer use of the Internet to become better informed before purchasing, it has become imperative for top dealers such as Courtesy to dominate search results through a combination of banner advertising and Cost-per-Click campaigns utilizing key words and phrases. Programs such as AdWord allow dealerships to take advantage of precisely targeted broad distribution to Internet users who are seeking information about a particular make or model. Google AdWord combined with our advanced Search Marketing campaigns provide an effective online result. During a recent four-month period, our online initiatives attracted nearly 30,000 visitors to one of our sites, and generated well over 2,000 online and phone leads.

Supporting all successful digital marketing strategies is a foundation of accountability.

eCommerce initiatives, like all forms of marketing, need to be clearly defi ned with goals and objectives, and accurately measured. Digital marketing provides unprecedented abilities to track and measure the effectiveness of campaigns. At Courtesy Chevrolet, measurable yields are what keep us on track, both in terms of acquiring customers and in keeping our advertising and marketing cost per sale as low as possible.

We are excited about our success with our eCommerce strategies and plan to continue to capitalize on new technological advances within our marketing mix.

Ralph Paglia is the CRM/eBusiness director at Courtesy Chevrolet. He can be contacted at 866.883.9250, or by e-mail at [email protected].

IMN Loyalty Driver™ is a turnkey e-marketing service that drivesinterest, sales and customer loyalty. Customized, trackable emailcommunications provide tangible results for dealerships acrossthe country. A couple of examples:

• 15 test drives scheduled within the first hour after an IMN Loyalty Driver e-newsletter was sent.

• Web traffic spiked to 2.5 times its normal rateafter a dealership’s first e-newsletter.

Looking for results like these? Call 866.964.6397, ext. 214 oremail [email protected].

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“Within the first hour of the

e-newsletter going out, I had 15 test drives.”



PattiWood

Making the Most of Your Media Interview, Part 3

Personal Preparation



Being interviewed as an expert in your fi eld is a great way of getting your name out to the public, and gives you

the opportunity to educate the public on topics that you are passionate about. Interviews are really fun, but they are extremely time-consuming. These tips will help you get your ducks in a row before you begin this process so you don’t waste energy.

1. Know Your Topic Inside and OutIf you have an hour or a day of training material on the topic or you have read a few books, or written an article on it, you probably do not have the depth or breadth of knowledge for an unscripted interview. Avoid being surprised by questions you are asked. Be confi dent and quick, because you are prepared.

2. Be Familiar With All the Current Books, Research and Media Buzz on Your TopicGo to Amazon.com or another on-line book source at least once a month and fi nd out what is out there on your topic and read it. If you are asked — as you often may be — if you have read a certain book or a book related to your topic, you can say “yes” and have an opinion on it. Get any periodicals related to your topic so you know what is hot. This is particularly helpful in fi nding additional angles that enable you to create winning press releases. Go to your favorite search engines at least once a week, put in your key words and see what comes up. This will also let you know who the other experts on your topic are. Perhaps you’ll want to write together or quote each other.

3. Get in Touch With Other Experts Who are Being InterviewedDevelop an expert network to share information. I e-mailed my group when I got a particularly thorny question from US Magazine about how head size is related to charisma and success in movie stars. I received some great information, and we all had a few laughs. When Cosmopolitan gave me some information from another expert about body language and dating, I told them I

held a different opinion, but then I offered the name of a researcher who would agree with that information. Imagine how impressed they were when I cited the very researcher who had given them the initial information. Naturally, we both sounded more credible. 4. Answer the Following Questions to get Clarity About Your Image and Your Business Goals:

• Why are you doing interviews?• What are your goals? • What image do you want to project?• How do want to be perceived by the

media? • How do you want to be perceived by

your audience? • How do you want your information

used by the media? • How do want it used by your

audience?

5. Decide What You Will and Will Not Talk About, and What Types of Shows You Will and Won’t Participate InYou may fi nd that certain shows are (in your view) morally ambiguous, strange or distasteful. For example, I was asked to do a radio show on which they were interviewing a 19-year-old multi-million-dollar corporation president. I discovered on the air that the intent of the show was to make him look bad. Asking questions up-front about the show will give you the opportunity to decide if you wish to participate. I am sometimes asked to analyze the body language of the parents of missing children or the spouses or family members of people accused of crimes. I let it be known I have a policy of not reading the body language of victims or non-public fi gures. If you’ve determined the answers to the previous questions, you know how you want your information used and how you want to be perceived; which makes choosing whether or not to participate on a show simple.

Patti Wood, MA, CSP is a professional speaker, author and coach at Communications Dynamics. She can be contacted at 800.849.3651, or by e-mail at [email protected].


The MostImportant Customer

MarkTewartsts fos ls ms sf fi s


Customer service is false propaganda.

Before you think I am nuts, let me explain. The factory gives

customer service surveys and dealerships give customer surveys. Everyone seems to talk about Customer Satisfaction Indexes. Measuring your success and failure is obviously important. However, is customer service really about numbers? In customer service, the most important customers are the one’s who hate you the most and the one’s who do business with you the most.

People like to have nice things said about them. Every business owner and their employees would like to feel like they give good customer service. We all love the customer testimonial letters that praise us. How much time do you spend with the customers who don’t like you? How much time do you spend trying to cultivate ongoing relationships and purchases from your best customers?

The customers who don’t like you have a story to tell that can’t be told in numbers. If you want to really fi nd out what your marketplace feels about you, ask the people who work at the gas station, local hotels and anyone who does not know where you work. One hour in a local eatery or tavern may give you more solid information about your dealership than all the surveys ever concocted in history.

When you fi nd people in your marketplace that don’t like you or have a negative perception of your business, you must dig deeper to fi nd out why. Remember that perception is reality to your marketplace. Discussions with your people in your marketplace can lead to simple changes that can lead to massive improvements — “Small holes cause big fl at tires.”

On the other hand, the old phrase that the customer is always right is bunch of baloney. The customer is not always right. Some things that make people upset with you may not only be acceptable for you but part of a purposeful plan. You cannot and should not try to be all things to all people. Defi ne who your marketplace target is and begin to work towards them. Speak directly to them and

treat them in a way they want to be treated. There are riches in niches. Targeting your primary audience and your best customers will pay you handsomely.

Your marketplace should be divided into fi ve categories: 1) Active customers 2) Inactive customers 3) Customers of your competitors that own your brand 4) Customers of similar brands 5) General audience.

Write down three ways you currently contact and reward your current customers in an ongoing and even automated manner (and, by the way, three ways is not nearly enough). There is rarely a saturation point to customer contacts and rewards. Do you have a VIP Program for your best customers? Ten to 20 percent of your customers will reward you more than the other 80 percent combined. Your goal should be to take customers that do business with you — let’s call these customers supporters — and convert them to Advocates, who continually buy and service with you and refer you to your marketplace.

Do you have a written, automated campaign to convert inactive customers — ones who buy from you but don’t service with you? Do you have a three-stage letter campaign planned for inactive customers? Do you have an automated campaign involving e-mail, postcards, regular letters, dimensional mail, voice broadcast, phone calls, appreciation dinners/gatherings, special inducements, etc.?

Any dealership can have an intensive and automated process that involves all the necessary media, volume and correct copywriting that utilizes emotional direct response marketing methods that are necessary to retain their customers, reward their best customers and learn from their lost customers.

You must make a commitment to spending resources on the most important thing of all — your most important customers.

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

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special fi nance solution

Sales and Finance: Pulling Together to Move More Vehicles

BillBates

When BMW was developing its Certifi ed Pre-Owned program, we knew our dealers were the key to its success. We

needed their enthusiastic participation and, as we traveled around the country talking to them and seeking their buy-in, we were pretty straightforward about what we saw as the benefi ts, which included increased sales volume, an expanded customer base and more business for the service and parts departments.

So far, so good. But how were we going to make the program work for them?

An Unprecedented Partnership The fi rst thing they needed to know was that the program was developed through an unprecedented partnership between BMW North America, our sales arm, and BMW Financial Services, our fi nance division. It brought together considerable resources, all focused on a single goal: devising a way to re-market large numbers of off-lease vehicles and drive business to our dealers.

It was an ambitious goal, but we were confi dent that we could make it work. Now, a decade later, I can report that the business case we made to our dealers has exceeded all expectations. Dealers report a substantial increase in CPO sales and a signifi cant increase in profi tability both on the pre-owned sales side and in their service and parts operations.

Sales Have Climbed Steadily This year, we expect to sell more than 90,000 Certifi ed Pre-Owned BMWs, a 30 percent growth rate (compounded) over the past 10 years. It’s hard to believe that in the fi rst full year of the CPO program, we only sold 6,100 Certifi ed vehicles.

So, how did BMW take off-lease vehicles, typically of little interest to dealers, and turn them into a major profi t center for dealers and a major draw for new and existing customers?

First, the partnership between BMW North America and BMW Financial Services allowed us to achieve things together that we simply could not do as separate entities. Like any good “marriage,” the partnership helped us maximize our strengths and see

the world from a different perspective. Our commitment to a shared goal — driving new business to our dealers — also gave us clarity and focus.

With those underpinnings in place, we analyzed our businesses to see where we could create new opportunities. In fact, everything we needed already existed in the BMW family; we just needed to combine the parts in a new way.

The Power of SynergyAt BMW NA, we had begun working on a CPO program, one that would help broaden our customer base and help our vehicles retain their value.

Simultaneously, BMW FS had a large number of vehicles coming off-lease. Putting together those two circumstances — the CPO program and the availability of large numbers of low-mileage vehicles — in an entirely new way was our “ah-ha” moment. Importantly, if the people in the Sales Company and the people in the Finance Company had remained isolated in their separate operating units, we probably would not have recognized and been able to capitalize on this “perfect storm” of opportunity.

At that point, there was only one critical component missing; the active and engaged support of our dealers and we needed the absolute engagement of the BMW dealers to succeed.

Creating a New Product Class We brought our dealers in as full partners and working together, we designed one of the most successful initiatives in BMW’s history.

To begin, BMW FS sold off-lease vehicles to our dealers, using an agreed-to wholesale pricing mechanism. The dealers then became responsible for reconditioning the vehicles to meet BMW’s stringent CPO standards, and then selling them at a premium price. In doing so, we created a whole new product class, one that has proved to be popular with customers and lucrative for dealers.

This marked a major shift in BMW’s traditional operations and mindset.

Dealers Embrace CPO Sales Before the introduction of the CPO Program, BMW dealers had not been fully engaged or excited about the used-car business,

preferring to focus on new vehicles. But once they saw the distinct advantages of getting behind a strong CPO program, the benefi ts became apparent and their excitement and engagement increased.

In fact, at every point in the process, dealers saw bottom-line benefi ts. They profi ted from bringing the vehicles up to CPO standards because this generated additional business in their workshops. Then they sold the vehicles at a premium to a previously untapped customer base, people who were not fi nancially able or who were “value buyers” — unwilling to pay full-price for a new vehicle. This also helped build customer loyalty and generate repeat business. Finally, under the CPO warranty (up to two years or 50,000 miles) they saw signifi cant increases in their parts and service operations.

BMW Now the LeadingCPO Luxury Brand The partnership has helped BMW become the leading CPO luxury brand, and we continue to expand and fi ne-tune our business model. The BMW CPO Program enables the company to maintain the highest residual value in the industry, according to Kelley Blue Book and Automotive Lease Guide (ALG). One benefi t of our synergistic approach is that we have a wealth of actionable information. For example, we keep close tabs on our leasing schedules and market demand. We parlay that information to develop sales and advertising strategies to capture the consumer in the market for a “new” CPO vehicle at the same time as we work to put the off-lease customer into a new BMW.

Now, when I visit our dealers, they don’t look at me like I’ve come to them with something unattainable. They know that the CPO business represents a good business for them to be engaged in. With the resources of BMW of North America and BMW Financial Services combined with a willingness to take a holistic approach to our business, we have successfully transformed our operations and those of our dealers. The business will surely not get any easier, but with the lessons that we have learned over the past decade, we are confi dent that we will continue to grow the business in the future.

Bill Bates is the manager of Pre-Owned Sales at BMW of North America, LLC. He can be contacted at 866.515.6516, or by e-mail at [email protected].

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MichaelYork

The Leading Edge of Leadership Part 2: Understanding Servant Leadership




Last issue we opened the box that everyone’s always talking about getting on the outside of in the area of leadership. This issue

continues, but doesn’t fi nish, the story on Leading Edge Leadership.

Major Key: Leaders Pay AttentionAre you? Paying attention, I mean. Because there’s lots of different messages out there on leadership. Willie Nelson was once quoted as saying, “Leadership isn’t all that tough. You just fi nd a bunch of people going in the same direction and then jump in front of them.”

True leadership has never been more needed today, and the paradox is, I believe, it’s never been more misunderstood. Everyone it seems is doing leadership talks, leadership columns and leadership training. That in itself should be a clue on how desperately this marketplace and this society need leaders.

Leading is something we should think of on a very individual or personal basis. You can have an effect on someone, and how their life works out, even if you wouldn’t necessarily consider yourself a leader.

Could you be a leader? Could you be leading others, infl uencing them in a certain direction? And the answer is “absolutely.” Someone is watching your “leadership” skills right now.

If you were in a dark or cloudy place in a single fi le line, would you try and break from the ranks, or simply follow closely behind the person in front of you? Even if they were to lead you into oblivion, you’re still following.

That is exactly what is happening today in our world. People are leading without realizing, other people are then following without realizing it, and often neither really knows where they are going. As a result,

they both are lost.

Who’s watching your “leadership skills” right now? The attitude and empathy of true leaders is paramount. Read Jim Collins take on the difference between LEVEL 4 and LEVEL 5 leaders in his book “Good to Great.” The leader’s “manifold respect for his followers” is a clue Warren Bennis talks about in his book “Organizing Genius.”

Servant Leadership The “servant” part of leadership is where the real treasure is buried. That’s the missing puzzle piece for many aspiring (or even those who think they’ve arrived) leaders. Misconceptions abound, that leaders should be ruthless or isolated or untouchable or unapproachable or intimidating or have it all fi gured out by now (see Rohn’s wisdom above), and that’s just not true.

And it’s equally true that servant leaders are not weak or timid. True servant leadership


is found in examples that are thousands of years old (read the Old Testament account of Nehemiah’s “wall rebuilding project”) or as current as the leadership philosophies of Starbucks’ Howard Schulz or Rick Warren and Saddleback Church (one of the largest thriving “member-organizations” in this marketplace).

The wisdom of these servant leaders is evident to any true student who cares enough to seek out the clues of leadership these and other leading edge individuals have left behind.

When people think of Starbucks they usually think of coffee. But the leader has a different take on his business and what drives it. “We’re not in the coffee business,” says Schulz, “we’re in the people business, serving coffee.” And food, and music, and whatever’s next. Ring a bell? If you’re a leader, you’re in the people business as well.

Rick Warren says the greatest obstacle for most individuals today is “short-term thinking.” And again, an ancient script offers more leadership wisdom here when we read that “without vision (read: Big Picture Thinking), the people perish, or wither away.” Know anyone (even a “leader”) who’s stuck in a rut?

Vision, big-picture thinking, long-term goals, etc. leads aspiring leaders back to growing themselves in preparation of leading others — or personal development.

And personal development really is personal. You have very personal reasons for why you’re here reading this and caring enough to engage in personally improving your skills and abilities, striving for an uncommon measure of success, and thinking like a leader.

The Four Cornerstones of Leading Edge IndividualsThink of these 4 cornerstones in building your “leading edge” life:

1. Purpose What’s yours? And how can you

assist (lead) others in fi nding theirs? Purpose is simply life, and life is bigger than work. Not everyone got the memo on that one. Many people are all about work and then they just try and fi t life in somewhere. For more

clues on this one see my book “The 10 Commitments.”

2. Performance Performance is the work part of life.

It’s what we’re paid for. How well we add value or exchange our services for compensation in the marketplace. Improve your performance, and the performance of others and the marketplace will notice and write you bigger checks.

3. Plan Do you have one? Plans, goals, and

targets become your map that leads to the treasure. Most everyone can use a refresher course in this area. Watch the movie “National Treasure” and see how complex clues can become simpler and lead to something really big for you.

4. Passion This is simply your how: How you do

all of the above? How do you live your life and perform on your stage every day? Believe it or not, you’re known for something right now by those around you. Ask and go to work on whatever you do with daily discipline and passion. That brings commitment, and commitment is stronger than motivation.

What so many seem to have forgotten is the history lesson offered by countless leaders who have gone before. And that is, America is not the land of “jobs,” it has always been and remains today, the Land of Opportunity.

Think like an owner. Think free enterprise and take ownership of your leadership. What you are is not as important as what you can become and what those around you can become in the process.

If you’d like the rest of my “short list” on LEADERSHIP LESSONS e-mail me.

Michael York is an author and professional speaker. He can be contacted at 800.668.5015, or by e-mail [email protected], or visit www.MichaelYork.com.

DeniseRichardson

Headlines...OuchThey Can Really Hurt



Ominous headlines continue to enlighten, inform and alert us to the ever-growing presence of identity theft, which can touch

our lives at any time. As criminals continue to fi nd ingenious ways to steal from us whatever they can, including the thing we most take for granted — our own identities — it becomes ever more apparent that our best defense is knowledge and awareness.

On June 1, 2005, a new provision of FACTA (Fair and Accurate Credit Transaction Act) went into effect. It says that any employer, whose action or inaction results in the loss of employee information, can be fi ned by federal and state government, and sued in civil court. What this means is that even if you take precautionary steps to insure the safety of your past, current and future employees’ identities and their private information still gets out, under FACTA, you could be held responsible.

Let’s look more closely at what’s behind some of the recent headlines…

“Liability for Employee IdentityTheft is Growing!”This headline points to a benchmark case in Michigan where, for the fi rst time, a court found that a custodian of employee information has a duty to guard their employees’ data with scrupulous care. Employers can ultimately be held liable when personal information goes unprotected, is discarded without care, or identifying information is accessible to non-essential employees who shouldn’t have access to this information.

A bit of advice:• Consider a mandatory employee

meeting or seminar that offers educational material, resources and services for identity theft prevention.

• Establish written procedures and guidelines for those employees who handle and have access to sensitive information.

The more time and effort you invest in preventing or detecting fraud, the less time, effort and money you will spend dealing with it when it hits.

“Banks Face Growing Threat of Inside Identity Theft”While you’re busy building stronger defenses against outside scammers and hackers, you could be overlooking a potential danger right under your nose — inside thieves.

While this headline pertains to banks, in actuality, any business is at risk when a criminal is on the prowl for one of your employees and ready to offer them a “second job” with promises of a lucrative “second” income. Since criminals strive to be more innovative and resourceful, we must follow suit. All kinds of industries are at risk — restaurants, car dealerships, banks, universities, etc.; no establishment is immune to being infi ltrated by thieves looking for a treasure chest of information they can turn into a profi t.

All Businesses Should…• Warn employees about criminals trying

to “hire” them to do their illegal dirty work and consider offering employee awards or recognition for exposing or thwarting attempted frauds

• Arm employees with educational material and most importantly, make your company procedures and policies on this type of fraud known

“Car Dealers May Be Held Responsible for Identity Theft”This headline refers to The Harris County (TX) District Attorney’s Offi ce which recently reported it was cracking down on identity theft when used to purchase cars, AND beware — the thieves aren’t the prosecutors’ only targets.

The prosecutors believe car dealerships should do more to prevent ID theft and “they could fi nd [their] property seized” if they aren’t more diligent in combating identity theft in their dealerships. The DA’s stance? Too many identity thefts happen because “dealers aren’t diligent” about checking buyers’ credit records and identifi cation to ensure the buyers are, in fact, who they say they are. The DA’s offi ce went on to say that fraud alerts don’t work unless merchants pay attention to them. They believe that if consumers take the steps to place fraud alerts on their credit reports, and dealerships (or other merchants) don’t pay attention to the alerts, the merchant should be held liable.

It’s important to note that car dealers are often preferred targets of thieves. Car dealers are fi nding themselves on the front lines of the war on identity theft. Car dealerships are as valuable to identity thieves as banks are to bank robbers.

Verifying a potential buyer’s identity can turn out to be more important than the sale of the vehicle itself. When you’re scammed, consumers lose trust and they take their business and their negative word of mouth with them. Here are a few of the many things you can and should do, to protect all of us.

Inspect All Forms of ID For…• Clarity — Check for matching fonts

and typeset on pertinent identifying information such as dates of birth, height, weight and address, etc.

• Discrepancies — Look for obvious differences in height, weight and eye color. Do they match the person you’re looking at?

• Validity — Compare any questionable ID source against one you’re sure is valid — your own if it is the same state. If it is an out-of-state license, use an ID checking guide or ask the individual for a second form of identifi cation.

If you are not absolutely convinced that the buyer’s identity is authentic, stop the sale until you are convinced.

The fi rst step in preventing fraud in your business is to educate all employees, especially your “front line” employees, who are the decision makers. If you provide them with appropriate resources and suffi cient guidance and information, they can be your most valuable allies in preventing fraud-related losses.

When if comes to identity theft or data breaches, the last thing you want to see is your name in the headlines.

Denise Richardson is a member of the National Association of Consumer Advocates and an author. She can be contacted at 866.439.9242, or by e-mail at [email protected].


STOP THIEF - Protecting Your Dealership From Online Theft

DavidKainsts fos ls ms sf fi s

marketing solution

As your dealership becomes more active online, you will need to ensure you have the necessary protections in place to secure

your dealership from identify theft, database security and e-mail security. As soon as you accept private data from consumers it is your responsibility to ensure that the data is kept in a secure place.

We have all read or heard stories about major corporations that have had their data tapped into by computer hackers that plan to use or sell the data to steal from the consumers who have provided it on a company “secure Web site.” Sure, you can convince yourself that your dealership is not a likely target, and I would tend to agree to a certain point that a large fi nancial institution is a more attractive target to an identity thief. However, when you consider the fact that these institutions have tighter security, a thief will likely fi nd it easier to target smaller companies, which is why

you want to make sure you are protected.

Safeguarding data is not only smart business — it is the law and you will want to make sure you are aware of your responsibilities as a business. Excellent sources of information for dealers seeking the latest in this critical area are the NADA Web site at www.nada.org where you can obtain a copy of A Dealer Guide to Safeguarding Customer Information, or the Web site of the recently developed Open Secure Access Inc. (OSA) at www.opensecureaccess.com. According to information provided on the OSA site, the safeguards rule of the Gramm-Leach-Bliley Act “establishes standards relating to administrative, technical and physical information safeguards. The standards are intended to: ensure the security and confi dentiality of customer records and information; protect against any anticipated threats or hazards to the security or integrity of such records; and protect against unauthorized access to or use of such records or information that could result in substantial

harm or inconvenience to any customer.”

Precautions You Should Consider:1. Ensure that your Web site is set up to

securely collect customer data — There are two methods to protect transmittal of data on Web sites according to Webopedia (www.webopedia.com). One method is Secure Sockets Layer (SSL) technology, a protocol developed by Netscape for transmitting private documents via the Internet. SSL uses a cryptographic system that uses two keys to encrypt data — a public key known to everyone and a private or secret key known only to the recipient of the message. Another protocol for transmitting data securely over the World Wide Web is Secure HTTP (S-HTTP). Whereas SSL creates a secure connection between a client and a server, over which any amount of data can be sent securely, S-HTTP is designed to transmit individual messages securely. SSL and S-HTTP, therefore, can be seen as complementary rather than competing


technologies. Both protocols have been approved by the Internet Engineering Task Force (IETF) as a standard.

Qualifi ed Web site builders will ensure that these levels of protection are part of your standard package, but don’t take that for granted. Be sure to ask and be aware of the limitations so you can measure the risk.

2. Ensure that the data you collect is secure within your in-house computer system - Once you have collected private data it is important that you limit access to the data both inside and outside your dealership. A great deal of data theft occurs from inside a dealership as employees gain access to your customer’s private data. A dealer relayed a story to me recently about a BDC employee who used a prospect’s credit card to pay her rent and the dealership had to accept responsibility. Limiting access to this data is a key step to ensuring something similar does not happen at your dealership. I recommend that all fi nancial data be password protected within your system and that only fi nance department personnel trained in the handling of private fi nancial data be allowed access.

3. Ensure that your computer network is secure — Computer security from hackers and other security threats is essential to your business and your piece of mind. Microsoft recommends businesses follow their Seven Step Small Business Security Checklist:

1) Protect your desktops and laptops — If you are serious about security, there are three things you must do: 1) keep your software up to date; 2) protect against viruses, and 3) set up a fi rewall.2) Keep your Data Safe — Implementing a regular backup procedure is a simple way to safeguard critical business data. Setting permissions and using encryption will also help.3) Use the Internet Safely — Unscrupulous Web sites, as well as pop-ups and animations, can be dangerous. Set rules about Internet usage to protect your business — and your employees.4) Protect your Network — Remote access to your network may be a business necessity, but it is also a security risk you need to closely monitor. Use strong passwords and be especially cautious about wireless networks.5) Protect your Servers — Your servers are your network’s command center. If they become compromised, your entire network is at risk. To

protect your business, protect your servers.6) Secure your line of Business Applications — Make sure that software critical to your business operations is fully secure around the clock. Internal and external vulnerabilities can lead to lost productivity — or worse.7) Manage Desktops and Laptops from the Server — Without stringent administrative procedures in place, the security measures you take to safeguard your business may be unintentionally jeopardized by users.

Marketing on the Internet is an extension of your physical dealership. Just as you lock the doors and protect your physical data from thieves, it is essential you do the same in your virtual dealership. Being cautious will give you the security you need to operate safely and be sure you always seek the guidance of an Internet security expert before you open your online doors for business.

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



The Secret ofthe Crumpled Letter

RalphR.Robertssts fos ls ms sf fi s


What happens to those hundreds or thousands of letters you send to prospective clients every year? My guess

is that 90 percent or more of the recipients simply crumple up those letters and toss them in the trash. But what if that letter came back? Wouldn’t that be a hoot? Wouldn’t that catch the recipient’s attention?

That is exactly what I was thinking when I came up with the idea of using a crumpled letter as one of my key marketing tools. For years I would send letters to people who were trying to sell their homes themselves — whom we in the real estate business refer to as For Sale By Owners or FSBOs — and to sellers whose listing contracts had expired. In the letter, I would explain that I knew the homeowner’s listing contract with the other agent was about to expire or that the person had been trying to sell her home for several months without success, and offering my services as a listing agent.

These letters generated some extra business, but I was not getting nearly the conversion rate that I had expected. I knew that most of the people receiving my letters were going to do the same thing as I do when I receive similar sales letters; they were going to crumple them up and throw them away.

Tired of spending time sending out letters that were just going to end up in the trash, I decided that I would take action whenever someone tossed my letter in the trash or simply ignored me. I would resurrect that letter and use it to my marketing advantage.

About four days after I sent out the original letter, if the prospect had not gotten in touch with me, I would send out a nearly identical

letter, but this time, I wadded it up fi rst, smoothed it out a bit, and wrote with a red marker at the bottom of the letter, “Please Don’t Throw Me Away Again!” I inserted the letter in a plain envelope, addressed it by hand, and mailed it to the original recipient.

When I started this new marketing program, I saw an instant boost in conversion rates. I was receiving more than double the responses to my crumpled letter than I had ever received from the originals. Some people thought that I had actually dug through their trash to fi nd the letter and resend it. Even prospects who knew it was a marketing trick thought it was clever and were willing to hire me. It showed that I would stop at nothing to sell their homes.

What made the crumpled letter approach so successful was that it was a unique twist on an old strategy. I was still using traditional direct-mail marketing, but I had discovered a way to freshen it up and make it new. People who were so accustomed to tossing unopened letters in the trash took notice of the crumpled letter. That’s the one letter in the whole stack that they did read.

I employ a similar tactic whenever I deliver marketing materials to prospects prior to meeting with them. Instead of sticking them in a plain brown envelope or one with my company’s logo on it, I place the materials in a FedEx or DHL envelope and drop the package off at the prospect’s home, leaving it inside the screen door.

When the owners arrived home from work, they drive up, get out of their car, collect their mail and perhaps their newspaper, open the screen door, and see a package from FedEx or DHL. Now which envelope are they going to open fi rst? I can almost guarantee that it

is going to be that unlabeled FedEx or DHL envelope. The shipping companies do not mind, because you are advertising for them, and the people receiving the package are usually delighted to receive a little surprise when they get home from work.

I use a similar approach with e-mail messages, adding a catchy description to the Subject line and offering something of value in every message I send out — my signature, containing my name and contact information and a list of Web sites where the recipient can go to fi nd out more about me and what I do. Send me an email at the address below, and I will respond, so you can see exactly how I use my signature to draw attention and opportunities my way. I also regularly broadcast e-mail messages with valuable insights or gifts attached, such as inspirational or entertaining poems or presentations.

Remember, the ultimate goal of any correspondence you send out is to have the recipient read it. Just think of the number of messages that an average person receives every day from newspapers, magazines, TV, radio, e-mail, Web sites, postal mail and while driving to and returning home from work. Ask yourself, “Why would anyone want to read my letter?” If you expect someone to read your letter, you had better come up with a good answer.

Ralph R. Roberts is a nationally recognized sales coach, author and offi cial spokesperson for Guthy-Renker Home. He can be contacted at 866.470.5181, or by e-mail [email protected].

www.sellingsuccessonline.com


leadership solution

SeanWolfi ngton

Lose Unwanted PoundsNo, this is not an endorsement for some instant weight-loss gimmick. I guess you could say it is an exercise plan to help

shed some weight — dead weight.

I think we have all been spurned, at one time or another, by someone we know or work with, and are guilty of picking up that chip and placing it squarely upon our shoulder. If you have every carried “a chip on the shoulder” then you know the extra weight it brings to your life. That “chip,” if left unattended, will soon grow and become an enormous burden to carry, like dead weight.

In recent months, we focused on building self-worth in those individuals whom we have offended by acknowledging the error of our ways and asking for forgiveness. I mentioned that the words “Will you forgive me?” were some of the most diffi cult words to speak sincerely because, in doing so, we must openly expose our own weaknesses. But, how are we doing in reciprocating that virtue when we are the one being offended?

Forgiveness is powerful. Granting the gift of forgiveness to someone who has harmed you is the greatest gift you can extend. In the humble realization of our own fl aws and weaknesses, forgiveness extended to another person liberates that individual from the effects of his/her own fl awed humanity and instills the understanding that one is worthy of love, hope, and the possibility of new beginnings. It will also benefi t yourself by removing the tremendous weight from your own shoulder in the process.

Leaders who incorporate the virtue of forgiveness into the management process

and the core values of their organization will inevitably experience the results through the impact that it makes on the performance of colleagues. In a business where colleagues freely extend and receive forgiveness, there you will fi nd an environment that is free of callous treatment of individuals, which will result in the promotion of dignity and respect within the organization. Forgiveness also serves to bridge the organization’s vision and mission among employees which provides an experience of unity, thereby enhancing performance. Perhaps more importantly, if forgiveness is shared as a core value of management, it will serve to build and strengthen relationships within the organization, which will trickle down into the community and customer service relationships.

May we all focus less on what is happening to us, and instead refl ect on what is happening in us.

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


In a business where colleagues freely extend and receive forgiveness, there you will fi nd an environment that is free of callous treatment of individuals, which will result in the promotion of dignity and respect within the organization.

Delegating Up to Decide


leadership solution

JesseBiter


As business leaders, it’s not always easy to give up control. The same independent drive and entrepreneurial spirit that helps propel elite

individuals to the top of their respective profession oftentimes makes it diffi cult to let go of certain tasks. Learning to effectively delegate responsibilities is a fundamental component of good leadership and a staple in the curriculum of most leadership training materials. But there is more to delegating than simply letting go of a few routine tasks that inundate your daily schedule.

Making a decision can be hard, time-consuming work. The stress of making the right decision can weigh heavily on even the most seasoned business leaders. Delegating “down” to direct reports is certainly a necessary step towards freeing yourself of the more mundane day-to-day operational decisions. It’s equally important to delegate “up” to gain the spiritual guidance needed to turn good decisions into effective decisions.

“If any of you lacks wisdom, he should ask

God, who gives generously to all without fi nding fault, and it will be given to him.”James 1: 5

There is a distinction between making a good decision and making an effective decision. While a good decision may satisfy a particular need, an effective decision actually produces results. Human nature is prone to make decisions that are good for us as individuals, typically made to satisfy a particular need. However, our concept of good is inherently fl awed and will not stand up to what has been commanded by God. Jesus said, “There is only One who is good.” Excluding God from the decision-making process will yield results that are solely based on one’s perception of what is good, not what is truly good in the eyes of God.

There are no defi nitive formulas that can be used to make every decision in one’s life. Human beings have free will and all situations are going to be different. Making an effective decision is a multi-layered process requiring information and priorities to be placed in the proper perspective. It’s also important to stand fi rm in your own convictions. It’s much

too easy to allow external infl uences to affect your decision-making process. Only accept facts from others and avoid the biases that tend to blur the information. Staying true to your convictions, fi rmly rooted in Biblical principles, will give you the peace of mind to know that you are honoring God by making an effective decision.

“Trust in the Lord with all your heart and lean not on your own understanding; in all your ways acknowledge him, and he will make your paths straight.”Proverbs 3: 5-6

All Christians have the ability to harness the knowledge and insight of the Holy Spirit. God wants to help you to succeed in all aspects of your life. Don’t bear the signifi cant weight of leadership alone. Delegate up to God and He will grant you the wisdom needed to be a decisive and effective leader.

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

Power Prospecting = 100 Deals

DavidThomassts fos ls ms sf fi s


Getting back to basics in prospecting could net you 100 sales by year-end. Set a goal: 100 units delivered by

you, the sales associate, by the end of the year.

Here is how to do it:

Prospect by Phone, Fax, E-mail, Mail or in Person, Every Day,9:00 – 11:00amMake it your goal to contact at least 15 quality prospects each day. If you set appointments with just one-third of them, you now have good traffi c fl ow. If you close one-third of your appointments, you will sell 20 units a month and hit your goal of 100 by year-end.

Become a Master at NetworkingBe social, and start conversations that will work their way around to cars. People love to talk about their cars. Start with your friends,

relatives, neighbors, PTA groups, etc. How about your dealership’s orphan owners? Ask your sales manager for a list or source. Look at those who bought three to four years ago. They are probably in the trade cycle now.

Increase Your Closing Ratio by Bettering Your Walk-Around, Test Drive and Turnover TechniqueUse a manager or closer to the fullest extent allowed to close every deal. Allow someone else to be the last word. Buddy up to another

good sales person to act as your closer, and you can help with their customers. When they come in to assist, stand back, listen and be supportive. An assist is as good as a goal.

Follow-up & Follow-upNever quit the follow-up game, or you will lose. Drop a line to your “be-backs.” Stay in touch with your customer base.

At my store, I encourage our sales people to: 1. Be polite, and 2. Be aggressive. Yes, these do go together. We are here to facilitate and motivate a transaction, and we do this in a fun, polite and energetic fashion. You have to ask for the sale, and you’ll get more “yeses” when they like you.

David Thomas is the owner of Subaru of Dallas. He can be contacted at 866.429.6803, or by e-mail [email protected].


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Congratulations and much appreciation to all the attendees and sponsors of the AutoSuccess Best Practices Summit VI.

We look forward to seeing you at the next Summit onNovember 6th and 7th 2007. Call now to reserve your spot.

At my store, I encourage our sales people to: 1. Be Polite, and 2. Be aggressive. Yes, these do go together.


Follow Up Tips

JeffMorrillsts fos ls ms sf fi s


Don’t Feel Like You’re Bugging Prospects When You Follow UpProspects who are actually interested

in buying a car appreciate hearing from you because they see you’re organized, interested in their satisfaction and eager to earn their business. It’s typically the strokers who petulantly rush you off the phone — the reason they don’t want to hear from you is because they never wanted to buy a car in the fi rst place. No loss there.

Make Sure You Get Good Contact Info During InvestigatingAt a minimum, ask for two numbers and e-mail.

Don’t Give Up Too EarlyLike everyone else, your prospects are very busy. Returning your call is a low priority. (How responsive are you with people trying to sell you something?) Just because someone doesn’t get back to you doesn’t mean they don’t want to buy a car. Keep trying until you reach them and they tell you that they don’t need your attention anymore. (Note: beware Do Not Call restrictions. Typically, you may only call prospects for 90 days after they contact you. After that, use e-mail.)

Don’t Stop Following Up Just Because Prospects Say They Already Bought ElsewhereIf they haven’t picked up the car yet, stay in touch. You would be surprised at the number of folks who decide to buy elsewhere but don’t ultimately take delivery because of some problem. Some of your customers cancel, right? Guess what — they eventually buy another car. Even if they do buy elsewhere, put them on your mailing list — you know the other sales person won’t.

Call People From Your Cell or Home if You Can Never Reach SomeoneThis can help you reach a prospect who won’t pick up because of caller ID.

Don’t Wait Too Long to Call Someone After They Contact You If the prospect is very hot, then follow up the same day. Otherwise, the next day is typically best.

Have a Reason to Call If you have a good reason to call, your prospects are more likely to appreciate your call or return your message. Examples: “You were very interested in crash results when you came in. I researched it further…”“Incentives changed this month on the Outback so if you’re still interested…”

When Leaving Messages, Keep it Short and Use a TeaserExamples: “Bob, this is Jeff Morrill at Planet. I have great news! Please call, 781.826.4444.”“Bob, this is Jeff Morrill at Planet. Incentives just went up! Please call, 781.826.4444.”

Ask For Permission to Follow Up Before Your Customer Leaves or Hangs UpIdeally, you ask every prospect for the sale today. If you can’t get that, ask every prospect for the next best thing: an appointment to come back. If you can’t get that, ask for the next best thing: permission to follow up, so your prospect will be more likely to take your call.

The Phone is Better Than E-mailThe phone is more personal, effi cient and effective. E-mail is best for very simple communication or when you can’t reach them with the phone.

If Prospects Won’t Respond to Your E-mail, Try This:“Not hearing from you, it appears that I must

have written your e-mail address wrong. I’m going to call you this Friday.” Some prospects will fi nally respond so they are not interrupted by a call.

Try to Catch Prospects on the Phone Once you leave a message, you pester them if you try to call again the same day. Instead of leaving a message on your fi rst call, try to reach them a few times during the day, and then leave the message at the end of the day if you never reach them.

Send Handwritten Thank You Notes There is nothing like a personal, handwritten thank you note. It will not guarantee a sale, but it sure will help. Don’t use the excuse that your handwriting is sloppy, because it’s the thought that counts. Example text: Dear Julie, Thank you very much for giving me a couple hours today to show you how a new Outback will deliver you to the ski slopes much more safely than your Camry. I understand that the Camry has become part of your family after 10 years, but the Outback will be like getting a new puppy! I’ll be in touch soon … good luck at the Slalom Competition this weekend!”

Stay in Touch with People After They Buy From YouMost of your buyers won’t remember your name even one year after they buy from you. How will you sell them another? Send them a personal, handwritten thank you note right after the sale. Then, send quarterly newsletters in the mail that are folksy and informational. These newsletters will keep your name fi rst on their mind for all things automotive.

Make the Calls and Send the NotesYou have the time.

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

There is nothing like a personal, handwritten thank you note. It will not guarantee a sale, but it sure will help.

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