a division of Systems Marketing, Inc. November 2005

P.O. Box 43611Louisville, KY 40253

PRSRT STDUS POSTAGE

PAIDLOUISVILLE, KYPERMIT NO 879

New, FullyIntegratedTechnology isKey to MoreSales andHigher GrossesJohn Palmer, CEODealer Marketing Services, Inc.ProMax Online Software

Read this month�s and previous issues online at www.AutoSuccess.biz

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49367_AT_AT5-373.indd 1 10/13/05 6:21:37 PM

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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 orinfo@autosuccess.biz. 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. 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 in whole 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 that names 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.

3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170

Patrick Luck, Editor & Publisher• pluck01@autosuccess.biz

Susan Givens, Vice President• sgivens02@autosuccess.biz

Courtney Paris, Sales-improvement Strategist• chill-paris04@autosuccess.biz

Brian Ankney, Sales-improvement Strategist• brian01@autosuccess.biz

Thomas Williams, Creative Director• twilliams03@autosuccess.bizGod Bless America

INSI

DE 89

10121314161820

22242628303233363738

BrianTracy

Negotiate Like a Professional MarkTewart

Improving Communication Skills SeanWolfi ngton

CarolMartin-ArdellLearn More About Yourself and Be a Better Leader

ScottGruwellThe Secret to Selling 384 Extra Cars in One Month

How to Position Yourself to TurnObjections Into Reasons for Buying

TomGegaxIncrease Brand Equity

ToddSwickardSearch-Engine Marketing, Are You Ready

JimAdamsMail and E-mail Follow-Up

MichaelYorkBoring Organizations and Becoming Uncommon

ChrisAlford

The Follow-Up Timeline

PattiWoodTalking Hands

RobPearsonNew, Fully Integrated Technologyis Key to More Sales and Higher Grosses

Dealers Report an Additional $750 to $1000 Per Deal

What is an �Expensive Campaign� ScottJoseph

Use �Seuss Sense� for Rejection

ChrisHanson

DavidKainNot Getting a Response FromYour Internet Prospects, I Can Help

TonyDupaquierThe Importance of Training to Maintain Compliance

How to Win Back Your Service Customers KarenDillon

Dealers Get a �Power Boost� Through Automation RandyBarone

Why I Should Buy From You AnthonyHall

Ephesians 6:16“Take up the shield of faith.”

Psalms 31:3“For thou art my rock and my fortress; therefore for thy name’s sake leadme, and guide me.”

8

How to Position Yourself to TurnObjections Into Reasons for Buying

BrianTracy

In golf, there is a saying: “You drive for show, but you putt for dough.” In selling, you prospect and present for show, but

you overcome customer skepticism and gain commitment for dough. Your ability to answer objections and get the sale is the true test of

how good you really are as a sales person.

This is perhaps the most stressful and challenging part of the sales process. It’s where the rubber meets the road. It is your ability to answer the questions that the prospect puts to you and overcome his or her natural reluctance to make a commitment that wraps up the sales process. It is also the part

of the sales process that sales people dislike the most and which customers fi nd the most stressful. The end game of selling must be carefully thought through and planned in advance so that you are thoroughly prepared to bring the sales conversation to its natural conclusion at the earliest and most appropriate moment. Fortunately, this is a skill, like riding a bicycle or typing with a typewriter, and you can learn it through study and practice.

Handling objections and closing the sale are two different parts of the sales process but they are so close together that this chapter will discuss them as a single function. Just as there are reasons people buy a product, there are reasons they don’t. Often answering an objection or removing an obstacle is the critical element in making the sale. You can answer the objection and close the sale simultaneously. Objections can be turned into reasons for buying. Just as there is a primary reason for buying a product, a hot button, there is a primary objection that stops the person from buying it. If you can emphasize one and remove the other, the sale falls together naturally.

In selling smaller products or services, with which you can prospect and make a complete presentation in the fi rst meeting, your approach to closing will be different from that required if you are selling a larger product in a multi-call sale that stretches over several weeks or months. In the shorter, smaller sale, the prospect knows everything necessary to make a buying decision at the end of your presentation. Your aim should be to answer any lingering questions and then ask for the order. In the larger sale, you may have to meet with the prospect several times before the prospect is in a position to make a buying decision. You will have to be more patient and persistent.

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

First prepare yourself in advance for the endgame of selling by anticipating anything the customer might offer as a reason for not buying. Be ready.

Second, look for the hot button, the reason the customer will buy, and press it. Meanwhile, fi nd out his or her major reason for not buying and remove it.

Brian Tracy is the chairman and CEO of Brian Tracy International. He can be contacted at 866.300.9881, or by e-mail at btracy@autosuccess.biz.

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9november 2005

What is an�Expensive Campaign�

ScottJoseph

Imagine two direct mail campaign proposals. One costs $8,000 and the other costs $12,000. Which is more expensive?.

From the information provided, you can only tell what a campaign costs. It’s impossible to say which campaign is more expensive.

The true measure of any campaign is its effectiveness at generating results; therefore the most accurate way of measuring a campaign must be the cost per up and the cost per deal, not the cost per campaign or cost per piece.

On that basis, the $12,000 campaign that generates 180 leads and sells 45 cars is much better and less expensive than an $8,000 campaign that produces 75 leads and sells 18 cars. But that’s still only half the equation.

Most dealerships fi ddle around with their marketing until they fi nd something that works reasonably well. Having found a workable solution, they run it on a consistent basis.

That could be one of the most expensive things they ever do. What they’re failing to realize is that another campaign might generate a 1 percent, 20 percent or better response.

The real cost of that adequate campaign, then, is not just the hard cost of the campaign – it also includes the opportunity cost of the sales that could have been made, but were not.

What if another campaign could generate 50 more sales opportunities and sell an additional 10 cars? Given that an ad that works will generally continue to be run, that’s an awful lot of money being lost by sticking with the adequate campaign.

The only way to protect yourself from this possibility is to consistently analyze the results of your campaigns.

By analyzing the results you achieve in every campaign you do, you can set benchmarks or control packages against which to measure your future performance.

The mere existence of the benchmark forces you to acknowledge that there is no best campaign – there is only a best campaign discovered so far. Without exception, a better approach is just waiting to be discovered.

And while the improvement might not be dramatic when that new campaign is discovered, it is still worth looking for.

Analyzing your results on every campaign and testing new ideas, headlines, offers, lists, etc. also will help protect you against one of the direct mail industry’s biggest challenges – market saturation.

If you are one of the many dealerships who used to run direct mail campaigns but stopped because it stopped working, or maybe you still run but you don’t quite get the same results you did on your fi rst couple of campaigns, then think about the sales and money you cost yourself by not analyzing the results and testing new approaches.

If you analyze the results of every campaign, then you should know exactly what aspect of your campaign worked and what did not. You then continue to do the things that worked and remove what does not. This is the only chance you have to produce consistent results or even have a realistic opportunity to improve your advertising performance.

Think about it for a second. What if you could quickly and easily identify, without a doubt in your mind, what works with your advertising and what does not? How many more leads or opportunities could you create for your sales staff? How many more cars would you sell? How much more profi table would your dealership be?

What if you were analyzing your campaigns for the last three to fi ve years? How much more cost effective would your advertising be now? Would your sales staff make more money? If you answer “yes” how much easier would it be to retain sales people? Would you invest less time trying to fi nd good people and more time trying to sell more cars?

You need to make the decision to start analyzing every campaign you run. The reality is it may cost you a small amount up front to do so but think about what it costs you not knowing which half of your campaign works and what half does not.

By making testing and analyzing a passion and a requirement for all your campaigns, you’ll quickly fi nd the small changes you can implement. The list of improvements is endless.

And by implementing those changes, you’ll quickly and completely change the shape of your whole dealership.

Scott Joseph is the president of J&L Marketing Inc. He can be contacted at 866.429.6846, or by e-mail at sjoseph@autosuccess.biz.

10

The Follow-Up Timeline

ChrisHanson

We have spent some time talking about why we should follow up and the different ways we can follow up. Now lets talk

about the timeline in which we do this. Lets look at my specifi c follow-up timeline that I use with every customer.

Unsold customersUnsold customers are very time sensitive because 90 percent will be making a purchase decision within seven days. And

since we know that 83 percent of customers were never contacted again, we also know that 33 percent if contacted will come in. Unsold customers are just money waiting to be put into the bank. I would also like to point out that if you follow a proven process every time you can easily raise that 33 percent even higher.

1. Same Day: You must get the customer’s name, address, phone number and e-mail address every time!

2. Same Day: Be-Back CD – give this to the customer as he or she leaves: “I put together some information about myself, the dealership and what our customers have to say on this short audio CD. I know you’ll fi nd it useful and it will answer any questions you may have.”

3. Same Day: Always leave the door open. As they leave say: “You know, I just thought of something. You like the car, right? I’m going to talk to my manager about about something. Can I call you later today?”

4. Same Day: Send the customer a “thanks for the opportunity” note.

5. Same Day: Send the customer a video e-mail right after they leave. This is a very powerful technology that has a huge effect on the customer.

6. Later that day and the next day: Call the person. Every time you call the customer you must always give new information. Examples: Service records of the vehicle if it’s used or a one-owner local trade. Maybe a service contract that can be cancelled and used as a down payment. Give them alternatives, such as using a different trade-in, model down, new-to-used etc. Most of the time you need to think outside of the box. Be creative. Figure out how to get the deal done. The main object of the phone call is to set another appointment and get them to come back in.

7. From here on, the phone calls that you have made will determine where you go from here. Don’t wing the phone calls. There are many different phone-training programs out there that you can take to improve your phone skills.

8. If they don’t buy or they buy from someone else, put them on your mailing list. Start with the “you’re on my mailing list”

note. Send them everything you send your sold customers.

Sold CustomersNinety-six percent of people bought their car because they liked the sales person. So why is it that 82 percent of people after one year forget their sales person’s name? Because they didn’t follow up! Scrap the haphazard phone calls and notes and let’s get down to business. Our name and face always needs to be in front of them.

1. Same Day: Send out a “Thanks for your business” card.

2. Same Day: Send them a video e-mail thanking them for their business.

3. Call the customer within a few hours after delivery. “Hi John, Chris from Hibbing Chrysler. I just wanted to make sure you fi gured out how to work the cruise control on your way home and if you had any other questions about your new van?”

4. Two weeks: Send them a “you’re on my mailing list” note.

5. Three weeks: Send them the last issue of your newsletter.

6. Put them on your monthly e-mail newsletter list. I incorporate my video e-mail in each one so they also get to see and hear me each month.

7. Put them on your quarterly newsletter list.

8. From here on out:a. Every 45 days I send different mail pieces b. Every 90 days I call. I have several phone scripts I use.

If you would like to learn more about creating your own be-back CD, using video e-mail, monthly e-mail newsletters, mail pieces, quarterly newsletters or phone scripts, please e-mail me and I would be glad to assist you.

Chris Hanson with Hibbing Chrysler can be contacted at 800.901.2862, or bye-mail at chanson@autosuccess.biz.

12

Improving Communication Skills

SeanWolfi ngton

Our ability to infl uence the lives of others is only as great as our ability to communicate with them. Consider the possibilities. Every

day we have the opportunity to:• Help family, employees, colleagues

and customers make wise decisions• Convey ideas and concepts that are

important to us and to them• Prevent and avoid mistakes; either

today or down the road• Lift their spirits, give them hope and

bring them comfort• Strengthen their self-image and

boost their confi dence• Improve our team’s effectiveness

and results.

Our ability to communicate determines whether our interactions bring us closer together or drive us further apart from others. Before we can articulate our views, we need to create a climate in which others want to communicate with us and want to share our thoughts, plans and ideas. Last month, I wrote that others will go along with your ideas if they get along with you as a person, and this holds true for communication, as well. Think about a person with which you enjoy working. When he or she has something to say, do you listen? If he or she has a new idea, even one that may be controversial or risky, do you at least hear this person out or do you shut them down and tune them out? Now conjure up an image of a person to whom you have a diffi cult time relating. If these people came to you with the same idea, who would you support? Great communicators understand that communication starts before the message is sent. It starts with everyday relationships and being interested in the other person, and what’s important to them.

When we focus on the other person and on creating an environment that makes our audience comfortable and eager to hear what we have to say, we’re better able to strategically position our ideas for success. We’ve all heard the old adage that “a man convinced against his will is of the same opinion still” but what can we do to keep from falling into that trap ourselves? For starters, I’ve outlined the four characteristics of a powerful communicator. Foster these

characteristics in others and in yourself and you’ll improve your ability to communicate.

Passion:Every great communicator has a passionate belief that his or her purpose is founded in solid principles and has the ability to change the world. Cultivate a burning mission to share your message with others and you cannot fail. Even if they don’t agree with the content of your message, when others can sense your passion and appreciate your purpose you are on your way to connecting with your audience, and that’s the fi rst hurdle.

Attitude:It’s not about you. Seek to understand. Be interesting by being interested in them. Seek out other people’s ideas and build on them.

Skill:A common misconception is that great communicators are born. And while it may come more naturally for some than for others, rest assured that powerful communication skills are something you can learn, practice and become profi cient in. When speaking one on one with an individual or even in a small group, it helps to employ a simple listening skill called C2 for “confi rm and clarify.” Confi rm: While many sales people are great listeners, the challenge is to let the other person know that we are listening by

confi rming or restating, in your own words, exactly what you heard them to say. It may help to use a lead-in statement before you paraphrase what you just heard, and some examples you can use are:

1. “If I heard you correctly, what you mean is …”

2. “So you’re saying …”3. “When you say …”.

Clarify:Once you’ve demonstrated to the other person that you’re actively listening, it may help to clarify what they mean by asking an exploratory question or making a statement that will help you both to gain clarity. It shows that you care, builds rapport and trust and creates that environment in which people want to hear what you have to say.

Examples are:1. “Tell me more” 2. “What do you mean by that?”

Persistence:What happens when you’re on fi re with a sense of purpose, you’re becoming profi cient with the communication skill of C2 and still you’re not the powerful communicator you had dreamed you’d be? Persist. If you’ve ever read an autobiography of someone you admire, chances are they failed a great many times on their way to success. With failure comes an opportunity to learn, and persistence is what sets the best of the best apart from those who are satisfi ed with the path of least resistance.

Practice:Perfect practice equals perfect results. Great communicators are like great athletes; they’re not born, they’re made, and they practice their gift to build the most from what they’ve been given. Seize the opportunity today to practice improving your communication skills with the next person you encounter. You might be surprised with the results.

Sean WolÞ ngton is the owner of BZResults.com. He can be contacted at 866.802.5753, or by e-mail atswolÞ ngton@autosuccess.biz.

Persist. If you�ve ever read an autobiography of someone you admire, chances are they failed a great many times on their way to success. With failure comes an opportunity to learn, and persistence is what sets the best of the best apart from those who are satisÞ ed with the path of least resistance.

Mail and E-mail Follow-Up

JimAdams

Who can remember the eight ingredients of a Big Mac sandwich? That’s right, two all beef patties, special sauce, lettuce, cheese,

pickles, onion on a sesame seed bun. The reason we can remember these items 20 years after McDonalds ran those spots is repetition. The golden rule of advertising is that “advertising works through repetition.” Follow-up is advertising. Owner follow-up reminds the customer who you are. New business contact introduces new clients to your master list. Hot prospect follow-up lets your customer know that their business is important. So is follow-up really that important? Let’s take a look at the math.

• 99 percent of your customers will buy more cars.

• 90 percent of our owners never receive regular follow-up calls from the sales person.

• 82 percent can not remember the sales

person’s name that sold them their last vehicle.

• 80 percent of fresh ups are never followed up by their sales person.

• 78 percent of the customers that shop for a vehicle buy one.

• 75 percent said the sales person was one of the major reasons they purchased the vehicle.

• 67 percent is the average closing ratio on a be back.

• 60 percent is the average closing ratio on a repeat owner or referral.

Let’s explore the different types of follow-up we must perform on a daily basis.

Hot prospectThe most important prospect that you have is the one that just left the dealership without purchasing. This fresh opportunity is in the market. You must make contact with this

customer immediately. Cell phone numbers and e-mail addresses are the two most important pieces of information that you can obtain from your customer. The minute your customer leaves the dealership, log your opportunity and send the customer an e-mail. There is a good chance that the prospect will check his or her e-mail the same day that they were on your lot. Because you took the time get your name and your product back in front of the customer you will have the advantage over the competition. Here is an example of an e-mail:

“Thank you for taking the time to consider the new Optima. I know that where you buy is as important as what you buy. I will be in contact soon. Thank you again for the opportunity to serve you.”

Jim Adams is the general manager at Roper Kia in Joplin, MO. He can be contacted at 800.905.0627, or by e-mail at jadams@autosuccess.biz.

13november 2005

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e-PULSETrak, the leader in Web-based CustomerRelations Manager programs, has continued toevolve with a changing market. This fifth-generationprogram offers new and exciting features such as:

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• Service integration for improved customer dataand referrals.

• Value-added partnerships provide extra benefitssuch as liability protection with SecureTrak.

14

Learn More AboutYourself and Be a Better Leader

CarolMartin-Ardell

This is the second in a three-part series on how specifi c leadership styles affect different members of a work

team. Our previous AutoSuccess article, “Beyond the Vision” discussed ways to maximize the benefi ts of traits associated with the Entrepreneur, a type of leader known for being - among other things highly personable and time driven. This month, our focus is on authority fi gures who are more reserved, pensive and methodical in their all-around business approach -- but still looking to reach beyond the goals!

The Persistent Leader PersonalityYou’re very driven, confi dent, serious and technically minded; you tend to establish routines and work within schedules, and you expect subordinates to do the same. You consider yourself more listener than talker, yet you have no qualms about speaking out when others fail to follow you. You’re a leader who typically keeps a distance from subordinates, does not micromanage and appreciates it when people catch on to complex material quickly. You can be practical, objective and steadfast in your beliefs; you might classify yourself as a bold decision maker who not only earns, but also commands, the respect of others.

Because Persistent Leaders value their privacy and tend to keep to themselves, they often need to consciously enhance their social skills. Very strong determination and a direct style of communicating can sometimes make them seem stern or aloof. They’re arguably among the best analysts and most adept troubleshooters, but are sometimes so immersed in their own thoughts that they come across as distant, removed from or uninterested in situations that seem exciting or important to others.

If you’re a Persistent Leader, you need to ensure that staff members can always feel comfortable discussing critical problems with you. Communication is key when it comes to heading off trouble before it wreaks havoc; however, if everyone’s afraid to talk to you, all lines will be down. Great leaders are strong and resilient, but they’re not unapproachable; be accessible. And don’t be afraid to occasionally point out your own shortfalls, or see the positive side of an otherwise gloomy situation. A large part of your job is to restore order to chaos; if things

always ran smoothly, you’d probably be out on the street, looking for work.

One of your many strengths is your ability to concentrate and follow through in prolonged situations. Under your guidance, subordinates who seem scattered can become more organized and effective; help those who take on everything at once and are easily distracted, to focus on their work. Show them how you set your own priorities. You’re a natural when it comes to determining which projects need attention fi rst. Your streamlined, systematic approach can make you invaluable as a leader.

Bear in mind, though, that people who are more hurried than you also become bored more quickly. Find ways to keep the level of energy high at your dealership. Your antsy staff members need to stay busy or their attention diverts to areas that may or may not be work-related. Cross-train them, if possible, so that when their own work is slow they’ll still have plenty of other tasks to keep them occupied.

You probably possess the tenacity needed to persevere on tedious tasks or work toward long-term ambitions; your quick-paced workers do not, though. To better hold their attention, break lengthy or tedious assignments into smaller segments; this gives them the sense of quick accomplishment they crave. Set short-term goals for your impatient salesperson; don’t plan objectives for him or her that extend far into the future, because these will almost certainly be cast aside, forgotten or ignored in favor of more readily attainable end results.

You have an uncanny ability to detect fl aws, spot errors, and you likely offer candid remarks when critiquing subordinates. Learn to praise their efforts as well, however, and try not to reserve kudos for extraordinary accomplishments only. You probably have several people on your team who would appreciate a verbal -- if not physical – pat on the back from you.

Helping those who seem cluelessYou’re likely confi dent about your own business decisions and, therefore, may not feel compelled to discuss your pending actions with anyone. However, remember that some people are less independently minded and may be reliant on you for guidance and direction. When you’re unable to respond to their dilemmas, your

structured, direction-seeking colleagues may panic and do nothing rather than risk making a mistake. Leave very specifi c instructions and underline your objectives; if you’ll be unavailable, offer alternative resources for quick answers or advice. Cautious workers need input on how to handle ambiguous situations; when you, as their manager, force them to fend for themselves, they may see you as an inattentive leader or one who is abandoning not only them but also their problems.

Flexibility is keyYou’re probably an objective, fair-minded person who weighs the pros and cons of situations, assumes nothing and takes little at face value. Those who know you likely admire your ability to hold your ground and not fl inch, cave in to pressure or waver in your personal beliefs. Be careful, though, as you may have a stubborn streak that needs to be addressed. Make it a practice to be a little more fl exible; give at least some consideration to what might at fi rst seem like an impractical idea. Sometimes it is worth it to make a change, take a break from the routine or consider someone else’s strategy. Keep an open mind!

Persistent Leaders tend to focus on the big picture and may not always relate well to people who dwell on the particulars of any given situation. You may fi nd yourself surrounded by detail-oriented workers, those who feel compelled to check, recheck and sometimes even triple-check their work. If your administrative assistants, fi nancial analysts and support staff tend to scrutinize small points, be patient with them. Show them examples of work you deem acceptable so they have some objective to work toward. Keep in mind that they need specifi cs; this is just how they’re wired!

Knowing more about your own behavioral traits helps you better meet the needs of your staff. You may be surprised to fi nd that simple modifi cations of your own management tactics can alleviate problems and increase productivity. Your unique assets empower you and when utilized correctly they become the building blocks needed to lead a winning team!

Carol Martin-Ardell is a senior consultant with the Omnia Group. She can be contacted at 800.601.3216, or by e-mail at cmartin@autosuccess.biz.

16

Not Getting a Response FromYour Internet Prospects, I Can Help

DavidKain

A common challenge among Internet sales people is that customers don’t respond to their e-mails or voicemails.

The Internet sales role is a tough job; probably the toughest selling role in the dealership. The Internet role reminds me of a customer of mine that joked when he said “the game of business is tough – that’s why they don’t play it in short pants.”

To truly be successful and enjoy your role as an Internet sales professional, you must benefi t from having some or all of the following attributes.

1. EmpathyIt really helps when you can identify with and appreciate your customer’s situation, feelings and motives. A fair question to ask is how can I empathize with a customer that only provides a few pieces of information? In a lot of cases you can mimic the path your customer took to get to your inbox. Identify the lead source if possible and then take the same path and read what the lead source conveyed to your customer. You only have to do this a few times to see the promises that have been made to your customers along the way.

• “Click here for your free price quote” • “Hassle free Internet experience – no

questions asked” • “Get the lowest price within minutes” • “Take delivery of your car in one

hour”

Online prospects have high expectations when they click the submit key and send their private data over the World Wide Web. I like to approach this with the old sales adage of feel – felt – found. Use this to your advantage in writing your personal response or making your fi rst call.

For example:“It must be exciting to consider the new_________. I felt the same way when I bought my last vehicle. I have found it to be a much better experience for my customers when I can ask just a few quick questions to help you make the best possible decision.”

2. PatienceBeing capable of calmly awaiting an outcome or result is diffi cult especially as you are trained in traditional fl oor sales. Not being hasty or impulsive really assists Internet professionals. When I was selling cars on the fl oor I knew how the numbers worked. I had to have enough ups working to get a few to end up buying. On the fl oor a 20 percent close rate is good performance so to sell 20 you’ve got to work 100. Right? If you are good at follow-up you are probably working more than 100 at any given time, so it is diffi cult to say which 100 the 20 sales came from. Same with the Internet, only the numbers are a bit lower. A great close rate is 15 percent, so to sell 15 you have to work 100. Once again, which 100 are you working? If you do effective database marketing with your lead management tool you could be working several hundred or even several thousand, and it is hard to predict which one will raise its hand and decide to buy. Be patient – market to them all and when they are ready you will get your chance. Be prepared and you’ll be the one they buy from.

3. PersuasiveBeing persuasive is getting closer to the tactical action of creating an e-mail or a word track. Your e-mails, voicemails and phone conversations must be designed to persuade the customer to accept your offer of an appointment, a price or whatever it is

you are extending for their benefi t. Some simple examples tend to work the best but often we forget to employ them because we think the customer is after the best price and that’s all. Research has shown price to be a big factor but not necessarily the fi rst fi lter for the average customer. Try providing customer testimonials in your early e-mails (with permission, of course).

For example:Here’s what a few of our customers had to say about our dealership Internet experience. “It was quick and easy – Jenny was so professional.” Mike and Mary Jones - Local Town, USA

“I admit I was hesitant when Internet Motors called me, but after I answered a few questions they guided me toward the right vehicle and I am really pleased.”Dr. Rita Smith – Local Town, USA

Other ways to be persuasive include providing alternative vehicles to their initial selection that are similarly equipped but are less expensive, or mentioning “sale” vehicles that provide exceptional value.

4. CreativeInternet marketing is a great way for the creative among us to express originality and come up with new and imaginative ways to communicate with Internet prospects. Pictures, animations, creative writing, creative offers or whatever you can think of should be tried in your quest to stimulate the customer. The important thing to remember is your customer is more likely to open your e-mail if they anticipate that it will be good information or humorous or interesting. Once you set the stage that the information you provide is worth looking at you separate yourself from the other dealers in the market.

Work on developing these attributes and you’ll get the customer to respond. Of course, being the best is helpful, too!

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 dkain@autosuccess.biz, or visit www.kainautomotive.com.

Internet marketing is a great way for the creative among us to express originality and come up with new and imaginative ways to communicate with Internet prospects.

18

Increase Brand Equity

TomGegax

Marketing is the only way to pull potential customers toward you. From there, it’s like a relay team. You have the opportunity

to pass them to sales and, after the purchase,

to customer service. Four steps create big-league recognition and market share:

1. Differentiate.Most differentiation decisions focus on where you want to land on the price-quality-service continuum. One isn’t necessarily

better than the others, but a choice has to be made. The low-price, bag-your-own-groceries niche has been staked out by the likes of Wal-Mart, Home Depot and Motel 6. Plant your fl ag in the middle of the spectrum and value-conscious customers will pay a little more to get a little more — think Banana Republic, Applebee’s, Crate & Barrel. Customers of premium-positioned companies — Mercedes, Nordstrom, Neiman Marcus — will shell out top dollar for top-quality products and white-glove service.

A hybrid position is “low-price, nicer experience.” Look at Target Corp., Best Buy, IKEA and JetBlue. Early on at Tires Plus, this is how we differentiated ourselves to compete with the big boys. Some competitors could match our prices. But nobody else was offering upscale stores with clean-cut sales consultants in dress shirts and ties, cappuccino machines, framed art, VCR movies and children’s play areas.

2. Put your identity on the couch.Each and every exposure to a strong brand — a succinct, powerful name; a memorable tag line; a bold logo (think Nike swoosh) — cements your market position and produces free advertising. The name Tires Plus told people exactly what we did. Our tag line — “Warehouse Prices. World-Class Service.” — told them exactly what to expect. Any time people heard either, our brand message sank deeper into their consciousness. If your name doesn’t describe what you do, your tag line had better.

3. Tie your offering to your point of differentiation.Good companies never stop trying to make their offering more appealing. But that doesn’t mean they stray from their differentiating factors. Ryanair, the Dublin, Ireland–based no-frills airline that raised the low-airfare bar, continues to fi nd ways to drive prices even lower. Freebies? Forget about it. Weary passengers “rent” pillows and blankets. They even pay extra for air-sickness bags. Instead of installing seat-back TVs, Ryanair will be renting handheld mini-entertainment centers.

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Studying your competitors’ offerings provides perspective on how to optimize your strengths and neutralize theirs. To the extent you can, shed your passion for your industry and look at your products and services through your customers’ eyes. Ask yourself, if I was happy doing business with one of my competitors, what would it take to get me to switch? Price? Speed? Service? Warranty? All of the above? I liked that customers would come to our stores armed with detailed competitive analyses. It gave us opportunities to gain further insight into our guests’ needs and desires.

4. Promote, promote, promote.One thought bounced around my brain as I walked into our brand-new Burnsville, Minn., store: Where the heck are all the people? It was years ago, when we were still the new kid on the block. But we had great people, competitive prices, better hours and a perfect location. We just had to get our message out — I knew there’d be no stopping us if we got people in the door. But we were caught in a budget bind. Our advertising and public relations resources were slim. Yet, if we didn’t juice up our promotional wattage, we couldn’t bring in enough revenue to cover costs. The only way to drive revenues up was to achieve top-of-mind awareness in the marketplace. That called for a promotional blitz.

Not long afterward, we had an opportunity to plaster our logo on the largest sign at the Hubert H. Humphrey Metrodome, home to the Minnesota Twins and Vikings. The package also included 60 seconds of big-screen ad time for our tire mascot races at all Twins games. My executive team thought I was crazy to commit $1 million over 10 years, particularly since the cost equaled our annual profi ts. They said we couldn’t afford it. “Guys,” I said, “we can’t afford not to.” I pointed out that the contract would give us the exposure and credibility our young company needed. I swung the bat and didn’t look back. It was a grand slam.

Some advertising and PR promotion pointers: • Clarify your objective.Imagine sitting down with all your customers at once. What would you tell them?

Something about your company (an image ad)? Something about a specifi c offer (a direct response ad)? The former is good when you aren’t well known; the latter is good when you are. Helping your customers get to know you is as crucial as getting to know your customer. People want to know and like you before they’ll part with their money.

• Find the right media mix.Do you know who and where your customer is? Until you do, you’re wasting your money. You gotta know whether to rifl e (narrow market) or shotgun (broad market). Ad agencies and PR fi rms hike up the quality of your promotions; just make sure their loyalty is to you and not the media they purchase.

• Track the metrics.Three of the most important measurements for TV and radio ads are:

• Reach — the percentage of your target market you’re reaching.

• Frequency — the number of times your targets see or hear your message in a given period. The term “3+ reach” — often referred to as “effective reach” — refers to the percentage of your audience that will see or hear your spot at least three times. Generally, it takes three or more exposures to a message to prompt an individual to act on it.

• Cost per point — the cost to reach 1 percent of your target market. Calculate it by dividing your total cost by your reach.

Reach and frequency numbers will vary according to your offer and objectives. For instance, are you trying to drive traffi c to your stores or focusing on branding? Are you launching a new product or advancing a long-term campaign? Is your message time sensitive?

Tom Gegax served as the chairman and CEO of Tires Plus and is the founder of Gegax Management Systems. He can be contacted at 800.723.2601, or by e-mail at tgegax@autosuccess.biz.

continued

20 AutoSuccess

The following four dealerships have one thing in common: they use an Internet-based, fully integrated, front-end software system. In the interviews below, they describe some of the ways that using one system to handle the entire sales process helps them sell more vehicles and satisfy more customers.

Ricart Automotive Group, Columbus, Ohio• www.ricart.com• 6,000-vehicle inventory, averaging 1,000 car sales per month• Interview with Rick Clark, Director of Internet Sales

One of the largest dealerships in the country, Ricart Automotive has come a long way from the corner store opened by Paul Ricart in the 1950s. “We do everything, from pre-owned vehicles at our used car factory, to franchises including Ford, Jeep, Mazda, Mitsubishi, Hyundai, Chrysler, Chevy, Isuzu, Nissan and Kia,” Internet sales director Rick Clark said. Ricart Automotive signed up for a new system in January, at the NADA convention in New Orleans.

Q. How does Ricart benefi t from a complete front-end system?

We’re selling more cars at higher grosses because the system makes everything easier for us. For example -

1. Automated follow-upBecause we are such a large organization, it can be hard to keep track of customer follow-up. Now follow-up is done daily by our system. It prints out the letters, pre-addressed, ready to send. You set up when you want to call customers and it pops up on your screen and reminds you to call them - on their birthday, for example, or when they hit their one-year anniversary with us.

2. Easy data inputSales people can swipe a customer’s driver’s license through a scanner and it loads the person’s name, address, everything off their license, and searches the data base to see if they’ve been here before.

3. Quick quotesQuoting payments is much faster and easier; the whole deal process can be done much more quickly than before we purchased the system. It makes everything easier for us, and this convenience is passed on to the customer.

4. Access from anywhereI can be at home, I can be at our Ford store, our Mega Mall, our used car factory or even the airport, and still access the system.

Car Vision, Norristown, Pa.• www.carvision.com• 450-vehicle inventory, averaging 180 car sales per month• Interview with Tom Schnader, General Manager

Car Vision just celebrated its 10-year anniversary with a move to a new six-acre location and a grand re-opening. It specializes in pre-owned, imported vehicles, from Honda Accords to Mercedes Benz.

Q. What is the most important thing to consider when choosing a technology provider?

Training is the most important thing. The best technology in the world is useless if your people don’t know how to use it. A system needs to be simple to use, and plenty of training must be available. We are 60 days into a new system, and today we have a trainer on site helping us maximize our investment. In fact, he even helped us sell a car to a customer who was $7,200 upside down in her trade and had only $500 to put down. She said she had been to four other dealerships and found nothing. We put her parameters into the new system, ran a scan of our inventory, and came up with a 2003 Nissan Altima. She couldn’t believe it – “I can have that?” She drove it away, one very satisfi ed customer. The right technology with great training is helping us close more deals and satisfy more customers.

Q. Why did you feel you needed a new system?

With much of our business coming from the Internet, we get 50 to 75 e-mail inquiries a day. This is great, but it presented a challenge to our sales department. By the time we could get back to a customer who had e-mailed us, the car he or she was interested in had often been sold. We needed one system. A single system for prospects, follow-up, desking and our Web site. Now the sales process is simplifi ed from responding to the fi rst e-mail to fi nding and delivering the right car to the right customer.

Q. Has your new system affected sales? We have seen a big improvement in sales. In September alone, about 35 sales were attributable directly to more effective management of our follow-up activities. Before, we would send out one thank you at a time, one e-mail note at a time. Now we send out a month’s worth, about 240 e-mails, every day. The system helps us send letters to sold customers thanking them, and then continues to send sold customers a letter at monthly intervals for the duration of their loan. Not only are we hitting the people who have bought from us, but we’re also following up with the people who didn’t buy. We have substantially increased our be-backs, which have a 50 percent closing ratio.

Rhoden Automotive Group, Council Bluffs, Iowa• www.rhodenauto.com• 100-vehicle inventory, 50 to 60 car sales per month• Interview with Chris Belair, General Manager

Rhoden Auto Group specializes in late model, pre-owned vehicles, 2004 to 2005 models. The main lot is just across the Missouri River from Omaha, and a large part of it’s business comes from there.

General manager Chris Belair has been using a complete front-end system since 1995. “I attribute approximately 30 to 40 percent of my success as a top high grosser through the years to our system. Since we’ve

An Interview by - RobPearsonfs feature solution

New, Fully Integrated Technology is

21Feature Solution

had it, we make an additional $750 to $1,000 per deal. And my job has gotten a lot easier.”

Q. How does Rhoden Automotive use the all-in-one technology?

I use it to maximize inventory - In addition to our main lot, I have fi ve different locations that I can draw from. It would be hard for me to walk the inventory every single day. But with a couple of clicks I can know exactly what’s out there at all times. We maximize the inventory we have and generate the highest possible profi t per customer.

If you don’t have software that simultaneously scans lenders and vehicles, it’s very diffi cult to fi nd the best possible deal. With booked-out inventory and updated lender programs it’s easy to identify your best profi t opportunities. I’ve seen how other dealerships do it, and it’s kind of hit and miss because it is diffi cult to know all the bank guidelines and parameters, and how they apply to every vehicle in stock. I can select the most profi table vehicle and lender combination for every customer in just seconds.

Steve Austin�s Auto Group, Bellefontaine, Ohio• www.steveaustins.com• 170-vehicle inventory, 85 car sales per month• Interview with Mark Myers, Sales Manager

Sales manager Mark Myers enjoys selling cars for “fun and profi t” at the Steve Austin Auto Group, where he works with a sales staff of nine to help customers purchase new and pre-owned Chevrolets, Cadillacs, Pontiacs, Buicks and other makes of used vehicles.

Q. What were your priorities in selecting a front-end system?

I was looking for greater effi ciency and liked the simplicity of handling all sales department operations with one system. I use it to do everything I need to do to run the dealership. It handles desking, submitting apps, rehashing, follow-up and inventory control much more effi ciently than using several systems.

In fact, the new technology has made business development a one-person job for us. I put in exactly what I want to happen with a particular type of customer. Then every morning my letters are automatically printed for me, e-mails are automatically sent out and I get a daily work plan that tells me who to call and why. The program does it all.

Q. Have your sales been affected?

Our sales have increased, with an additional 10 sales in the last month, and we’re also seeing better customer retention and service

retention. The new system saves me time and makes me money. That’s the bottom line.

Managers are faced with many tasks and can manage them effectively with a little help. A complete front-end solution can provide this help. Prospects and follow-up can be managed by the same system that manages inventory, desks deals for maximum gross, submits apps, rehashes, updates the Web site and prints window stickers.

In addition to the benefi ts of using a single, fully integrated front-end system, the dealer saves money because he or she doesn’t need to deal with multiple vendors. One system provides all the tools needed, a software solution for every step of the sales process.

For help in implementing a system or to have your questions about this technology answered, please contact Rob Pearson.

Rob Pearson is the national sales manager at ProMax Online. He can be contacted at 866.870.2760, or by e-mail atrpearson@autosuccess.biz.

Key to More Sales and Higher GrossesDealers Report an Additional $750 to $1000 Per Deal

Mark Myers, Sales Manager,Steve Austin�s Group,Bellefontaine, OH

John Palmer at Quad Cities SuzukiDavenport, Iowa

22

Negotiate Like A Professional

MarkTewart

Negotiating can be done in a professional manner that can increase customer satisfaction while helping to protect both

parties’ interests. Let’s fi rst look at some of the problems that give negotiating a bad name and then look at the solutions. A lack of training in negotiating in the automotive industry has put sales people at a disadvantage. Usually, a sales person is taught how to negotiate in a learn-as-you-go method. Although all learning must be accomplished by doing, some preparation has to be done to make the learning experience more effective. All sales people and managers should go through a course on basic and advanced negotiating. Assuming that sales managers can automatically teach your sales people to negotiate professionally is asking for trouble. How did the managers learn to negotiate?

Sales people should be taught the expected procedures. Call these routing procedures. Routing procedures will defi ne everyone’s responsibilities, from the moment a customer is greeted until they are delivered, including the necessary paperwork and who initiates what. Included in the routing procedures are items known as, black and white items. Black and white items are the things that should never vary at your dealership. These items are to be defi ned by your top management and can include such things as not quoting discounted prices on the lot or never low-balling on price.

Another source of problems in negotiating is the misuse of traditional negotiating techniques. The “higher authority technique” is a technique of always deferring to a higher authority for a decision. The technique is a solid negotiation tactic that has been run into the ground by automotive people. Having your sales people run to the manager more than once or twice in negotiations is a crime. Not giving the sales person any latitude or decision-making capability in negotiations leads to the yo-yo effect that creates mistrust in the sales person and customer.

When is the last time a sales person in your dealership was taught what to do when a customer asks for a lower down payment, lower payment, higher trade values or a reduction of the sales price? Most veteran sales people in dealerships all over the country could not verbally and written give you at least three or four steps to an objections. How many objections in negotiation are there? Most objections fall into only a few categories. Have your sales people role-play often on objections and the potential answers to them. Example: “Mr. Customer, we would be happy to lower your monthly budget $50 a month. Did you want to go 60 months instead of 48, or put $1,500 more cash investment, or look at the car with about $50 a month less in equipment, or look at a lease/Smart Buy program? Which would be best for you?” Whether you like my words or there are some others you prefer is not as important as having a way to handle the objections and practicing them over and over until the sales people know their negotiating skills.

“He or she who prepares the most, wins the most.” A large part of negotiating is knowing when and how to negotiate, as well as being prepared for all situations. The tragic

death of John Kennedy Jr. might have been prevented with more preparation. Although negotiating may not be life or death for a sales person, it can feel like life or death to a sales person that wants to help his or her customer and doesn’t know how.

The following are few simple negotiating techniques:

1. Flinch - always fl inch at any proposal or counter proposal.

2. Split the Split - When customers offer to split the difference, offer back to split their proposal again.

Example: $3,000 apart $1,500 split offered $ 2,250 your counter

3. Bracket proposals - If your desired gross profi t is $3,000 and the customer offers you $1,500, propose back as much above your desired profi t as they proposed below, example: $4,500 gross would be the same $1,500 amount above your desired gross, as they had offered below. Most likely they will offer to split the difference and it also lends credence to your offer.

4. Give/get - Try always to get something in return for giving something. This will stop the customer from nibbling and eroding your gross. If you don’t use give/get, you will not only give away all your gross but will also create a shopper.

Everyone negotiates everyday. Whether it’s on vehicles, houses, relationships or pay plans etc., everyone negotiates on things we sometimes didn’t even realize we had negotiated on. Somehow people walk away from negotiating things other than automobiles feeling extremely positive about the process. Why? Ask how you would feel negotiating at your dealership and what you could do to make it better for the customer, sales person, manager and dealership.

Mark Tewart is the president of Tewart Enterprises. He can be contacted at 866.429.6844, or by e-mail at mtewart@autosuccess.biz.

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24

Boring Organizationsand Becoming Uncommon

MichaelYork

How does it happen?How, as an organization, can you get from wherever you are now, be it ordinary, under-performing,

stagnant, boring, etc., to remarkable? Is it really possible? Sure is, it’s already been done. Did you know that right now there are selling organizations that are at double-digit revenue growth? Month over month, year over year? Begin by looking for the clues that successful (read: uncommon) organizations have left behind and start making a few decisions in that direction.

Sounds easy. Feels hard. But it’s the start that’s the hardest part.

After that comes momentum, and the law of inertia begins to work with you and not against you. First things fi rst. Whatever you do is boring unless you do something to make it remarkable. Remarkable in the way you say it, sell it, service it, make it or deliver it. Go!

Got your attention yet? If so, how do you get the attention of your customers? And I mean your customers inside the organization as well as outside. Chances are if you’re in an under-performing organization, you’re boring, and your customers and workers are bored, or soon will be.

Do something amazing, quickly.

And it doesn’t matter how big you are, because as the book says, it’s not the big that eat the small, it’s the fast that eat the slow!

You’ve got questions: the marketplace has answers.When was the last time you looked up from the day-to-day grindstone to see what the landscape looks like? When was the last time you actually spent some time on being “pro-active” instead of just reacting to all of the day’s problems?

Quick sand is slow to pull its victims under, but there is time to escape if you know you’re sinking. Ever hear of the “surplus society” or

the “emotional economy?” They’re out there, working for you or against you. And most organizations are too busy going under to notice that help really is available.

Let’s go to the list and see if any of this sounds familiar.

Common mistakes of “common” organizations:

1. Poor performance environment2. Neglecting things that are easy to do3. Wanting or wishing instead of taking

the needed actions for change4. Not challenging workers to continue

improvement5. Leadership not focused on common

outcomes or strategic plans6. Thinking “sales training” instead of

“revenue generation”7. Not getting help from independent

thinkers/outside consultants.

Poor performance environmentExpending major time or energy on minor

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things, negative attitudes, gossip, grumbling or complaining. Bare walls that provide little or no inspiration or positive environment. What does your offi ce environment say about your company? Inside reality vs. outside perspective. What do your customers think?

Neglecting things that are easy to do.Making the routine amazing! (How do you answer the phone?) Creating action teams that can address attitudes and provide more suggestions (ideas). How do you wow your customers? Your workers? Interested spectators?

Wanting or wishing instead of taking the needed actions for change.Change is uncomfortable but necessary for achievement and improvement. The greatest obstacle to top performance is the status quo. If you know something should or must be done, do it (long vs. short term).

Not challenging worker to continuing improvement.How about offering a $100 bonus for a book report on a must read best-seller? Creating celebration and reward for accomplishment and top performance (individual). Create expectation. Offer incentives to attend seminars. Change the way your people think!

Leaders and managers not focused on common outcomes or strategic plans.Very common! Everyone has a different idea, vague idea or no idea how we win!

Training is boring, learning is controlled by the individual and generating revenues should be understood and developed on a broader scale than just sales training.

Independent thinkers and outside consultants.Who needs ’em? We all do. Someone who can see the forest and the trees that can be chopped down, or the ones to leave standing. How are you changing the way individuals think in your organization? How negative has the small talk become? Can it be changed, or are you resigned to just deal with it as part of the routine?

Tough questions all. And the common denominators of under-performing organizations.

That’s it. The list of common mistakes in a boring marketplace. Making mistakes is a clue to radical success; making the same ones is a sign of stagnant and failing attitudes and performance.

For the sake of time, that’s the short list. Recognize anything that looks familiar at your place?

As a consultant, or what the marketplace refers to as a trainer when I’m asked to improve an organization or team or group of individuals with sales training or leadership training. There are certain steps to making the greatest impact with the time available.

That time could be an hour, a day or multiple days, but the formula remains the same.

1. Expose the need for improvement2. Create awareness and understanding of

the need3. Inspire the desire and commitment to

improve4. Provide tools, assistance and coaching

toward the improvement5. Review, evaluate, implement and

continue improving.

Experience and training are over-rated in today’s marketplace. One is used as a crutch - “I’ve got 10 years experience; why am I here?” And the other is like medicine - you don’t want to take it and you’re pretty sure you won’t like it.

It’s more than just training … it’s creating a learning experience. An overall improvement process or event with information that’s delivered in a way that they can understand and gain from. It should challenge the individual personally to be better!

To improve skills, abilities, understanding, performance, effi ciency, attitude or any combination of the above.

Different individuals need different prompts to create a need (or awareness of that need) to commit to personal development and continuing improvement.

And your 10 years of experience is not a free pass that says you already know everything and this training stuff must be for someone else. If the customer doesn’t get something remarkable from your organization (product, service, buying experience, etc) then it’s everybody’s fault!

Training alone is not enough to improve that process or your performance. Why?

If you’d like my short list on “The 4 Factors of Improvement” send an e-mail to the address below.

Michael York is an author and professional speaker. He can be contacted at 800.668.5015, or by e-mail atmyork@autosuccess.biz, or visit www.MichaelYork.com.

continued

25november 2005

Use �Seuss Sense� for Rejection

ChrisAlford

26

“Never, never, never give up.”-Winston Churchill

The greatest killer of the spirit of a sales

person is the fear of rejection. While many sales people report few lost sales from it, rejection by design, usurps a fundamental need that sales people have to maintain emotional momentum, to be accepted and liked. Sales managers report lack of persistence as the number one cause of lost sales. Globally, dealerships scream follow-up is the culprit for the number one loss of sales. Who is right? Could it be an initial rejection, and the fear of more rejection that kills confi dence and discourages sales people from being persistent and following through in closing a sale?

Veteran sales people know to instinctively remain calm, confi dent, and persistent when presented with rejection in sales. This calm, but confi dent response-ability is a key component for all successful people actually taught to most of us as children. While rejection may clearly be Beyond Your Control, one famous Dr. believes how you respond to it is not.

Perhaps in youth, your parents taught you to see certain events as inevitable – “Only two things are certain, death and taxes” – that you should accept life and move on. You should accept the rained-out game and not freak-out when a fl ight is postponed. (A common trait of the novice fl yer) Keeping that in mind, rejection continues to put an overwhelming chink in the proverbial armor of today’s sales people.

Sales people fear rejection only if they are not prepared to handle rejection. Train your sales people to be ready. Dr. Seuss wrote children’s books about four decades ago. Seuss simplifi ed in story form, how to overcome and by-pass rejection. His understanding of the dynamic allowed him to address rejection in one of the most popular books ever written for children, “Green Eggs and Ham” (fi rst published in 1960). In this simple book, Seuss coupled the relationship between selling and rejection in a most interesting way.

In “Green Eggs and Ham” you meet Sam, a scruffy, funny looking salesman facing the undisputed number one killer of sales --strong rejection. Sam, a.k.a. “Sam-I-am,”

embodies persistence, as he refuses to take “no” for an answer from his customer, a grumpy curmudgeon of a client, mentally unshakable to trying something new.

In “Green Eggs and Ham”, Sam calmly presents old inventory to the Cat. Sam makes sixteen different closes, stays focused, denying rejection as it comes, and fi nds success after an amazing seventeenth attempt. “OK. Maybe you wouldn’t like it in here or there, but would you like it in a house or with a mouse?” Sam never gave up. He never made excuses because he was prepared, Sam consistently tells the Cat he WILL like it, and the customer respected Sam for it. Not only did the customer eventually see value and buy the eggs, he also bought the ham. Because of Sam’s belief and love for both products, the customer ultimately told Sam that he too, loved both.

The customer also agreed to give Sam referrals.

It doesn’t matter what you sell, use “Seuss Sense” when confronted with rejection.

�Seuss Sense� one- Believe in yourselfThree times on the fi rst three pages Sam tells the world “I am Sam”! Why? Seuss knew the importance of knowing who you are before selling a customer and he made sure we understood too! Believing in your self is paramount before gaining customer confi dence. Customers can sense a sales person’s level of personal confi dence, and respond accordingly. I read a famous book that says, “If you believe strongly enough,

you can say to a mountain, ‘Move!’ and it will.” Professionals know. Rejection isn’t personal. Professionals never endorse negative opinions. Therefore, “I do not like green eggs and ham” is NOT an “I do not like you,” –it’s merely a red fl ag that says, “You haven’t built enough value”. Use “Seuss Sense!” Slow down, build value, and ask for the sale again. You must know your product in order to build value. When Sam gets rejected after his box and the fox story, he doesn’t give the Cat a business card. He fi nds a new angle, creates mental ownership and discusses the advantages of owning the product in a house with a mouse. Sam is ready. We can all do that.

�Seuss Sense� two- When the rapport is warm you�ll weather the storm.With rejection, too often we prematurely abandon the value of rapport building and doubt our sales skills, perhaps running for a brochure or manager. Not Sam. Green eggs and ham had spiffs on it, so Sam builds more rapport! He maintains eye contact, he never once stops smiling, and establishes the kind of rapport that picks the locks of closed minds. Like getting a toddler to eat green foods, Sam looks his customer in the eye, believes that “new green” must be given a chance, and his rapport weathers the rejection. Sam does what we should all do.

�Seuss Sense� three- Believe in what you�re sellingSam, like all sales people, understands that value is important. Green eggs and ham may fl y off the shelves on St. Patrick’s Day when “green” is easy, but the other 364 days “green” must be SOLD. Sam’s belief in green eggs and ham allowed his customer to believe in them too. Sam proves beyond the shadow of a doubt, when you know you’re your selling and believe in what you’re selling, your customer believes in you. In sales, enthusiasm and confi dence will never go out of style. Are you building it everyday?

Young or old, the timeless lessons are the best. Believe in yourself, your product and persistence will instinctively follow. It just makes “Seuss Sense”.

And it’s just that simple.

Chris Alford is the president of Moivate America and Chris Alford Concepts. He can be contacted at 866.881.9315, or by e-mail at calford@autosuccess.biz.

Believing in your self is paramount before gaining customer conÞ dence. Customers can sense a sales person�s level of personal conÞ dence, and respond accordingly. I read a famous book that says, �If you believe strongly enough, you can say to a mountain, �Move!� and it will.�

28

The Importance of Training toMaintain Compliance

TonyDupaquier

Look at some of the areas that could lead to legal concerns and profi tability issues within a dealership. How many of these

are you aware of?

1. Is the base payment supposed to be quoted using the rate and term only, with no additional products included, to every customer, every time?

If the base payment is not fully disclosed to your customer using the rate and term only, you could be accused of packing the payment.

2. Does the customer need to be aware that all products are optional?

Yes.

3. Who is the lender when the contract is signed?

The dealership is. The dealership’s name, in fact, is stated right on top of the contract. There are only a couple of states where you can have the customer re-sign a contract. However, in most states, when customers sign the contract – whether it is approved or not – the customer has a valid contract, and the customer can hold the dealership to it.

4. Does every customer need to be offered every eligible product?

Yes. If every product isn’t offered to every customer, you are susceptible to a discrimination lawsuit.

5. Does a contract or waiver need to be included in every deal?

Your paperwork needs to be your alibi in the event of legal action. If you do not have a contract or waiver, who is to say you even offered a product to a customer?

6. How important is it to have a waiver approved by the dealership’s legal council?

Waivers are easy to come by and easy to make, but is the waiver legal? In many states, a legal document, as in a waiver, must have a minimum font size, specifi c wording and be on a specifi c colored paper. Your lawyer should approve the waiver that is used in your store. A waiver used in one

state is not always legal in another.

7. How important is a menu when it comes to ensuring that every product is offered to every customer?

The easiest way to ensure that every customer is offered every product is to use either a paper menu or a customizable menu, such as MasterMenu. The most predominate advantages are legal compliance and profi tability. A menu alone, however, does not ensure 100 percent legal compliance or maximize profi tability. It is the process leading up to the menu that also ensures compliance.

8. Does every customer who wants to purchase a vehicle need to be submitted to a lender?

Every customer who wants the dealership to secure a loan must be submitted to a lender. If not, you are in violation of the Equal Credit Opportunity Act (ECOA). Regardless of how ridiculous the deal may look, you must still submit the application to a lender.

9. Must a business manager use the same starting price for the same service contract?

Yes. If he or she does not, it could be considered discrimination. On any product that is sold, there must always be a pre-determined starting price.

10. Must an “As-Is” Buyer’s Guide be signed by a customer for every pre-owned and demo vehicle that is sold?

The law clearly states that a Buyer’s Guide must be signed on any pre-owned, demonstration, or any other vehicle that has miles exceeding a normal test drive. What is a normal test drive? The FTC doesn’t clearly state what normal is. Many dealerships have a mileage boundary for all vehicles, some as low as 500 miles. It is better to be safe than

sorry on this issue. Remember: the Buyer’s Guide only tells the customer who warrants the vehicle, regardless if it is the dealership or the manufacturer.

11. How important is it for a business manager to be aware of all the stipulations concerning the FIN/CEN IRS 8300 form?

It is very important. The form must be fi lled out when cash in excess of $10,000 is given to any business. There are a few more parts to it, however. Perhaps the one that is the least known is that when any amount over $10,000 is given to a business in one year, the money must be reported. Does your dealership’s operating system have the ability to track how much money a customer gives your dealership in one year? If it does not, does your provider intend to pay the fi nes when the IRS fi nds out you did not report all the customers you should have? When in doubt, fi ll it out. A good practice is to fi ll out a FIN/CEN IRS 8300 form for every customer who puts down any sizable amount of cash.

12. Does a dealership need to check every customer against the SDN list?

According to the USA Patriot Act, no U.S. business can conduct transactions with anyone on the OFAC SDN list. If you are unfamiliar with what this means, it is the Offi ce of Foreign Asset Control’s (OFAC) Specialty Designated Nationals (SDN) list. To learn more about this subject and to view the list, visit www.treas.gov. To check a customer’s status on the list, there are several electronic options you can use, but it must be done by every dealership.

13. Does a dealership need to ensure customers’ identities?

Identity theft is just the newest in a long list of concerns facing the business offi ce. It is solely up to the dealership to ensure customers’ identities before consummating a transaction. If the dealership does not and a person uses a stolen identity or stolen credit information to purchase a vehicle, the dealership will be 100 percent responsible for full restitution to the lender.

Tony Dupaquier is the director of F&I training for American Financial & Automotive Services Inc. He can be contacted at 866.856.6754, or by e-mail at tdupaquier@autosuccess.biz.

It is solely up to the dealership to ensure customers� identities before consummating a transaction.

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Don’t let your dreams end up in the dumps. At Chrysler Financial, we understand that in order for your business to grow,

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30

Talking Hands

PattiWood

U n d e r s t a n d i n g gestures can help you increase your sales; they help you think and help you read what other people are

thinking. The fi rst thing they do is show your personality to your prospect. Because your arms come out from your heart they show how open and receptive you are to everyone you meet and interact with, so when you open your hands wide and hold them high you show you are open to your prospect when you hide them behind your back or glue them to your sides you show you are not willing to embrace the person or situation you’re in. Personality tests say that the more outgoing you are as a person, the more you tend to use your arms and the more you gesture broadly. The quieter and more introverted the less you move your arms away from your body. How do you gesture and what does it say about you?

Making it perfectly clearWe use more gestures when we’re excited or trying to communicate a diffi cult message. There are more than 100,000 possible hand signals using different combinations of postures, arm, wrist or fi nger movements. As a professional speaker, I use an enormous number of gestures. Research says lecturers make twice as many hand gestures as people who are talking one on one. Gesturing actually helps you access information in your brain and helps you form your messages.

One night after a week on the road, my body and mind were especial ly tired. As I began an after-dinner speech, I noticed I was having trouble thinking and wasn’t as animated as usual. This was not good news as the audience had just fi nished a large steak and baked potato dinner preceded and followed by an open bar. They needed every bit of moxy I could muster. I increased my animation and gestures, and suddenly had no trouble speaking the words. They came out smoothly and effortlessly, when only a moment before I was struggling. And my animations energized the audience. If you are ever in a situation where you are struggling for the right word, try to move around and gesture — even a little movement will help you verbalize. Using the right hand stimulates the speech centers

in the left hemisphere of the brain so you can explain things logically and rationally. Using the left hand stimulates the emotional right hemisphere, so you can communicate everything from excitement to frustration. Caution, this may be dangerous as the right hemisphere’s only accessible verbal language is cuss words.

Help me rememberGesturing may even help you remember things and let your brain rest. In the study, led by Dr Susan Goldin-Meadow, a psychology professor at the University of Chicago, shows one way our gesturing helps us remember information. In the study 26 children and 32 adults who were observed to use gestures went through a fi ve-step exercise. First, they solved age-appropriate math problems. Then they had to memorize a list of items. In the third exercise they were asked to explain how they had solved the math problems. That was a tricky part of the research, having to explain increased the amount of work their brain had to do in addition to remembering the items, after that they were tested on their recall of the memorized items. Finally, they were asked to give the explanation again, this time keeping their hands still on a tabletop, and were tested again. The research found that people who were allowed to gesture

recalled on average 20 percent more items than people who were not. In a discussion of this research another author, Dr Howard Nussbaum, said, “These fi ndings suggest that gesture reduces the cognitive load of explanation, freeing capacity that can be used on a memory task at the same time.” Translation: Gesturing frees up our brain.

Research shows bilingual people tend to use more gestures when they’re speaking in their non-dominant language. They use the gesture to help them think. So you see again if you’re having a hard time expressing a point or fi nding the right words to say as you speak one on one, using gestures lets your arms and hands help write out your message.

Not sure if your prospect or clients is really understanding what your saying? Read their gestures. How would you know if someone you’re talking to needs more explanation or is ready to buy? Look for a mismatch between their gesture and their words when they explained the information. If someone says they see where the interest rates will go down if they sign with your plan, but their hands gesture upwards they are confused. If your prospect is repeating a point you’ve made and the gestures don’t match, or seem out of sync with what they are saying you know you need to clarify or risk loosing the sale. If you want to know if your prospect is truly excited you can gain insight from looking at their gestures. Sometimes they will use hands to create an exclamation mark in the air, or they will do little chopping movements up and down or sideways. As always, you have to look at the whole body to tell you the whole truth of a nonverbal message, because if the chopping motions are overly forceful and aren’t accompanied with a smile they should be read as symbolic weapons. They are chopping you to pieces!

So as you go out this month notice that hands talk and do the crazy hand jive!

Patti Wood is the president of Communication Dynamics. She can be contacted at 800.849.3651, or by e-mail at pwood@autosuccess.biz, or visit www.pattiwood.net.

Research shows bilingual people tend to use more gestures when they�re speaking in their non-dominant language. They use the gesture to help them think.

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32

ToddSwickard

Search-Engine Marketing,Are You Ready

Many dealerships are experimenting with search-engine marketing for the fi rst time. The buzz is that search-

engine marketing offers the best return on investment for your marketing dollars. Some dealerships have jumped to the head of the pack and are enjoying incredible results. Car shoppers are visiting their sites and submitting their information or just calling the dealership directly. Other dealerships have been less successful on their initial attempts. Search-engine marketing can work for every dealership.

Dealership Web sites are changing. The next generation Internet sites will look and feel the same, but behind the scenes more tracking will take place. Dealerships will be able to measure where their Web traffi c is coming from and what percentages are converted into deliveries. Measurement will provide data to improve conversion rates and maximize the impact of dollars spent bringing Internet shoppers to the site.

Effective search engine marketing will drive traffi c to your Web site. Be prepared to handle this additional traffi c the correct way.

There are three key elements to getting ready for traffi c in addition to making your Web site search-engine friendly. First, make the

front page inviting. Make sure your menus are easy to read and understand. Make sure your phone number, address and hours are easy to fi nd. More than three clicks can get everyone confused and aggravated. Make sure that you can fi nd anything you need at your dealership in less than three clicks.

Second, make sure you can handle the incoming information. Make sure you have a dedicated phone number and someone answers it. Don’t let everything go to voicemail, or worse, just let it go to the front desk. Make sure that someone is checking the e-mails frequently and responds with the appropriate information and level of service. Don’t type in all capital letters. Mystery shop your own Web site on a regular basis. Have a friend call the phone and see how long it takes your sales department to get back with

them. Drop an e-mail with a question about a car and fi nancing. You will fi nd out exactly where you need to improve.

Third, understand what is happening on your Web site. Measure and examine traffi c and look for trends. Learn which vehicles generate the most traffi c. Promote special offers for these vehicles on your Web site. Increase your stock and variety of these vehicles. Is it important to fi nd the price point of the vehicles that people are searching for on your site? Are most people looking for $6,000 trucks or are the majority of your Internet shoppers looking for late model luxury sedans? Learn which vehicles are hottest among your Internet shoppers. By stocking more of these vehicles you can grow your Internet sales.

Keep track of the phone calls generated by your site. The quantities at most stores are staggering. For every one electronic contact you get from your site (e-mail, contact us, inventory request, fi nance requests, etc.); you are receiving three phone calls. You should track the calls generated by your Web site and count the resulting sales when calculating the return on investment for your Web site and search engine marketing.

Todd Swickard is the CEO of Auto Dealer TrafÞ c, Inc. He can be contacted at 866.871.0247, or by e-mail attswickard@autosuccess.biz.

...understand what is happening on your Web site. Measure and examine trafÞ c and look for trends. Learn which vehicles generate the most trafÞ c. Promote special offers for these vehicles on your Web site.

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33november 2005

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The Secret to Selling384 Extra Cars in One Month

ScottGruwell

At Courtesy Chevrolet, we’re using our Business Development Center and the Internet to sell 384 additional vehicles

in one month alone. The cornerstone of our BDC is our digital marketing system that generates incremental sales and drives over half of the phone traffi c to the dealership. In a short amount of time, the BDC staff has learned to use the Web as an incredible marketing medium, and as a result we’re using the system to increase sales, F&I, service and parts business for a lot less money than traditional advertising media. As a result, our cost per sale ranges from $125 to $200, which is a lot less than our traditional advertising.

The SystemThe system includes a high-end custom Web site and a prospecting/CRM tool that automates most of the BDC’s e-mail activity. Automation enables the team to focus its energy on the phone, and it’s setting more appointments as a result. Our new Web site increased our leads by more than 400 percent but it was only one part of our new system. The system also includes the e-mail and search engine marketing tools to create traffi c and the CRM tool to manage our Internet, phone and showroom opportunities so we can turn leads into sales. After the fi rst month we sold 40 units, then 75, then 150, then 200 and 380.

The BDC LaunchWe found that the secret to success hinges on the people. It’s true that you need a strategy

and system for generating traffi c and turning traffi c into leads, but the secret to success lies in your staff’s ability to turn those leads into appointments and appointments into sales. To do this, you need to fi nd and train the right people and give them the tools they need to do their job. The right people for the BDC are those with excellent phone skills and a passion for customer satisfaction. The right tools will automate much of the follow-up process and provide the reports to manage and measure results. Installing a successful BDC is not a simple task, but when the BDC helps take the gross profi t from $84,000 per month to $582,000 per month, it’s an effort that’s worth the investment.

The Bottom Line:• Courtesy Chevrolet’s BDC sold 384

extra cars and generated $582,000 in one month.

• Courtesy became the No. 1 Chevy dealer in the U.S. and fi nished the year as the No. 2 Chevy dealer in the country.

• Courtesy was named one of the Top 10 eDealers of the Year.

• Courtesy has successfully established a regional Internet Buying Service that generates high quality leads at the lowest cost per sale of any lead source it uses.

• Courtesy’s cost per sale ranges from $125 to $200 since installing its new system.

Scott Gruwell is the new car manager at Courtesy Chevrolet. He can be contacted at 866.871.9178, or by e-mail atsgruwell@autosuccess.biz.

�Our BDC took us from 40 - 384 sales�- Scott Gruwell

36

KarenDillon

Are your customers returning to your dealership for scheduled m a i n t e n a n c e ? Dealerships have lost

more than 80 percent of non-warranty service business to the independents. This is a huge source of potentail revenue for dealers.

At an average dealership, the 20 percent of customers that do return for non-warranty service generate $125,000 in monthly parts and service revenue. If a dealer can somehow capture an additional 25 percent of lost customers, this would add $156,250 in monthly revenue, or $1.88 million annually.

Lack of convenience is the number one reason customers don’t return to the selling dealership for service. Price and trust are numbers two and three. If we provide the convenience, this will allow us to capture these customers and will increase our opportunity to earn their trust and educate them that we are very price competitive.

Customers use the Internet for so many things – banking, shopping, travel, research, etc. These are not just younger customers who grew up using the Internet, but customers of all ages who have discovered the convenience it offers. Provide your customers the ability to go to your Web site at their convenience and schedule a real-time, on-line, confi rmed service appointment.

The majority of dealers today offer only a request for appointment on their Web site; however, this request still requires someone at the dealership to respond to the customer either via telephone or e-mail.

This request form doesn’t get used to any great extent, as the customer still doesn’t have a confi rmed appointment until he or she hears from someone at the dealership, prompting them, most times, to pick up the telephone to call to make the appointment, so they can plan their schedule accordingly. This just does not fulfi ll the service customer’s need for convenience.

At most dealerships the service advisors still take the incoming calls for appointments. because they are the people who know how, what and when to schedule. When you use an online appointment program, it should be robust, full-featured and properly developed with the services you offer, the service duration and service depth of each. This can simplify the appointment process by not only providing your customers the ability to schedule from your Web site, but also allowing any of your employees to book the appointment and not be concerned about overbooking resources.

What does this accomplish? More time spent by the service advisor with the customer on the service drive, creating happier customers who are not hurried through the write-up process, and allowing more up-selling of

needed services, creating more revenue for the dealership.

There is no question that a full-service walk-around is the most effective and powerful selling tool for the service advisor. Take a look at the potential for increased service department revenue. For a dealership that writes 1,500 repair orders a month, if only 10 percent of customers make their appointments online, this would free up 1,200 minutes, or provide an additional 20 hours (150 calls at 8 minutes/call) per month for the service advisors to spend on the service drive. If each service advisor averages just $250 per RO and sees three customers per hour, this would provide an annual increase of $180,000 in service department revenue.

An online scheduling system can also help increase car sales by driving traffi c to the dealer Web site. A record high 67 percent percent of new-vehicle buyers use the Internet in their vehicle shopping process – up from 64 percent in 2004.

For this service to be successful, it must be well promoted because customer awareness is critical. Highlight the service everywhere. Make it clearly visible on the Web site. Include it on the dealership’s voice-recorded phone messages and those that customers hear while on hold for a service advisor.

Sell the benefi ts when the vehicle is purchased. Have your sales people register the customer and schedule his or her fi rst service appointment. This allows you to capture an e-mail address for each customer. Follow-up with e-mail service reminders with links back to the online scheduling page. Brief your staff on the benefi ts of having the tools to do the job more effi ciently, along with the potential for increased earnings.

The primary reason service customers defect to other providers is a perception of greater convenience. Recapturing this business is critical to the dealership both in service department revenue and customer retention. Making it more convenient for customers to use your service department can help win back these service customers.

Karen Dillon is the president of TimeHighway.com. She can be contacted at 800.901.3170, or by e-mail atkdillon@autosuccess.biz.

How to Win BackYour Service Customers

37november 2005

Dealers Get A �Power Boost� Through Automation

RandyBarone

Information is power. The more you have and the quicker you access it, the more likely you are to beat the competition and

maximize success. The question is, how do you get the information you need without spending a great deal of time and effort? The answer is automation.

The power of having the right information at your fi ngertips is especially evident during the vehicle appraisal process. Without automation, the traditional “think and feel” appraisal process leaves a wide margin for errors in judgment. Even the most experienced manager can sometimes miss the mark when it comes to making an on-target offer and knowing the right vehicle for your pre-owned lot. It is particularly easy for your staff to rely on gut instinct, instead of informed decisions, when appraising a vehicle that is similar in make and model to dozens they’ve appraised before. Yet, it’s even easier – and much better for your bottom line – if they can instantly tap into updated “master book” information for your area. An automated system enables them to do just that. Plus, it provides immediate access to past transactions on the vehicle, with exact trade and profi t analysis for dealerships in your group. The system makes a comparison of sales history across your network and determines if the vehicle would trade better at a sister location.

Automation provides instant information about how many of a particular vehicle have sold retail, the wholesale quantity sold and the average of the following: retail turn, cost of sale, retail profi t, retail price and mileage. And this same information is at your fi ngertips for your entire dealership group. You can even fi nd out immediately if this vehicle was bumped at other dealerships in your network, as some vehicles are justifi ably valued higher at different lots based on available sales history.

With just a click of the mouse, you can fi nd out the price of a particular make and model on other Web sites within a designated radius of your dealership. This provides you with the information you need, while saving valuable time for you and your customers.

It’s easy to see how all this information, – so quickly and accurately accessed with the right automation system, – helps you appraise the vehicle fairly and at the most profi t-maximizing amount. You also can print out a report that refl ects how many similar make/model vehicles you’ve appraised in the past, but did not trade for. After a quick review of a “like history” performance report, you can determine how this vehicle has traditionally performed at your dealership.

What if this vehicle hasn’t performed so well? You can still close the deal with optimum profi tability potential, and make your trade-in customer happy. How? You launch the vehicle at time of appraisal to your sister stores knowing that the vehicle has performed well there. Your associated dealership reviews pictures of the vehicle, book values and detailed sales performance at their lot, and decides they want the vehicle for more than you were willing to offer the customer. Your sister dealership gets a core vehicle for considerably less than it is running for at auction. In the end, you print out a professional appraisal form that details the information for the consumer. This important data is also available, now and in the future, to your sister stores as well.

Take your success to the next level. Empower yourself, and your team, with the information needed to make the best possible deals.

Randy Barone is vice president of sales at American Auto Exchange, Inc � a subsidiary of JM Family Enterprises, Inc. He can be contacted at 800.901.3017, or by e-mail at rbarone@autosuccess.biz.

Take your success to the next level. Empower yourself, and your team, with the information needed to make the best possible deals.

Why I Should Buy From You

AnthonyHall

The number one reason people buy a vehicle at your dealership is not price, but the sales person.

Price falls somewhere around number seven out of the top 10. Virtually every person who enters your dealership has “why buy from you?” as the primary question in their mind. To truly maximize your revenues you need to give people a reason to buy from you versus a competitor. This article will explore a few strategies that will help you differentiate yourself from your competitors.

First, it’s important to understand that people make their buying decisions on two levels — logical and emotional. The logical aspect revolves around the product or service and includes such things as product specifi cations, warranty, color, size, ease of use, price, etc. This decision is usually already made by the time the customer has entered your dealership through previous study or your vehicle using the different sources available to them, such as the Internet, friends, TV commercials and brochures. Anything directly associated with the vehicle is a logical need. The second buying motivator and, perhaps the most powerful, is the emotional aspect of the sale. These criteria are the less tangible needs and include feelings of success, relief, pride, joy, fear, concern and safety. For example, a person buying a pair of jeans will have specifi c logical needs such as waist size, inseam length, color and style. But, ultimately, the emotional aspect of how they fi t and look will infl uence that person’s buying decision,

To uncover your customers’ emotional buying requirement learn to ask, “What are you looking for in a vehicle?” followed by, “Why is that important to you?” The fi rst question helps you learn the logical need while the second question will help the customer express the emotional reason behind the purchase. Most sales people have a tendency to leap into a poor vehicle demonstration before they have learned what is important to the customer. Invest the time to accurately and thoroughly uncover the customer’s needs and wants (who, what, why, when and where).

This will help you to begin to differentiate you from your competitor.

The next step is to give a six-point presentation that focuses on the customer’s needs, which you learned about with the better questions we discussed in the previous paragraph. Rather than discuss everything about the vehicle, focus fi rst on what the customer identifi ed as being important. This demonstrates that you not only listened to what he or she said and, it also demonstrates it is important and will help you separate yourself more effectively.

When presenting your vehicle be sure you discuss the benefi ts as well as the features. The feature is “what it is” and the benefi t is “what it means to the customer.” A great way to phrase this is to say “This vehicle is equipped with an overdrive transmission, which will reduce the RPMs (feature). What this means for you is increased fuel economy, as well as prolonging the life of both the transmission and engine (benefi t).

This addresses the customer’s emotional buying needs, which means there is a greater likelihood they will buy from you versus your competitor who didn’t do a thorough needs analysis like you did.

People also make buying decisions based on their overall experience in your dealership. Here are some infl uencing factors:

1. Ease of doing business. Are you easy to do business with or do I, as a customer, have to jump through hoops to buy a vehicle? Are you well staffed and organized, or do I have to wait to be waited on?

2. Staff accessibility and attitude. Are you friendly and well trained in customer service procedures? Do you exhibit the mentality that the customer is important and comes fi rst or do you spend time smoking and joking? Do you eagerly approach the customer or do you wait for customers to come up to you?

3. Product selection and availability. Do you have a good supply of vehicles?

4. Dealership cleanliness and layout. Is your dealership clean, tidy and visually appealing? I recently visited a dealership that had cigarette butts all over the front side walk and the sales offi ces were in complete disarray.

Lastly, equip yourself with the tools you need to properly do your job. Take advantage of the product training most manufacturers provide, invest your time in the on-going development of yourself and your sales skills, to help you succeed. I’ve worked with a lot of dealerships and people who invest a great deal of their time and money training and others who spend a bare minimum. The difference in the overall results is always signifi cant.

Today’s business environment is more challenging and competitive than ever before, which means you need to give people a clear reason to do business with you rather than someone else.

Anthony Hall is a training consultant at Ziegler Supersystems. He can be contacted at 800.610.9047, or by e-mail at ahall@autosuccess.biz.

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Take advantage of the product training most manufacturers provide, invest your time in the on-going development of yourself and your sales skills, to help you succeed.

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Call (877) 298.6657 For a FREE eCRM Biz Plan

HerbChambers.com

Red McCombs: 500 Extra Sales in One Month www.RedMcCombs.com Increases sales and profi t by using the web and CRM

to improve business

Red McCombs has

become one of the

largest dealerships in the country by

working to constantly improve how

they serve their customers. They are

quickly becoming known for how

they are revolutionizing the way

cars are bought and sold in Amer-

ica. Like many dealers, Red Mc-

Combs noticed that more and more

customers were using the Internet

to start their shopping experience.

However, unlike many dealers who

allow the opportunities available

through the Internet Department

and Customer Relationship Cen-

ter to slide by, Red McCombs not

only noticed the trend, they rose to

the challenge and are now leading

the way to success by establishing

their own online buying service.

“Our goal is to make it quicker,

easier and less expensive for cus-

tomers to get their next vehicle,”

said Rad Weaver, Internet Director.

In the year since building their on-

line buying service, www.RedMc-

Combs.com has enabled them to

increase sales volume from 100 ve-

hicles per month to 500 sales in one

month. Customers who in the past

may have used brokers (who would

then sell the leads to the dealership)

now know that they can go directly

to the www.RedMcCombs.com

buying service. Rad Weaver, Inter-

net Director at Red McCombs says,

“Customers love it because they

can build any car they want or view

virtually unlimited new and pre-

owned inventory with just a couple

clicks. They can also take a virtual

test drive with 360 degree tours,

view product comparisons, get fi -

nancing, view performance vehi-

cles, check for specials, download

coupons, learn about the pre-owned

certifi cation process and the 1-hour

Case Study:

vehicle purchase and even book a

service appointment or schedule

parts.” As a result www.RedMc-

Combs.com has enabled Red Mc-

Combs to become one of the most

successful eDealers of the year.

How did they do it? Rad attributes

their success to the following:

Dealer and management support, a

great marketing strategy, the right

website and CRM tools, tight pro-

cesses and a great team. “We also

leverage trend reports to establish

new goals for each month and ev-

ery quarter. We’ve signed with

outside training to make sure that

our team is skilled and able to ex-

ecute the process 100%.” Rad says,

“Low attrition rates are attributed

to our staff knowing that we are

here for them no matter what they

need. If your sales staff is not fi r-

ing on all 8 cylinders all the time,

you will not get the performance

or results you’re looking for. A

lot of our success has come from

their month in and month out dedi-

cation to helping perfect our pro-

cess. A big thanks to them!” To

provide more insight into what it

means to give your sales team what

they need for success, Rad pro-

vides a summary of what it takes

to be among the best in the nation.

DO’s

1. The Right Vision: Our vi-

sion is to give our customers more

than what they want and to create

a “Wow” experience. Since more

than 70% of our customers shop

online we wanted to create the best

experience possible before they

even set foot in our dealership.

2. The Right Attitude: The goal is

to create a lasting personal relation-

ship with our customers and we do

this by maintaining a focus on what’s

important to them. By building re-

lationships with our customers they

know who to ask for when they get

to the dealership. These relation-

ships have created a terrifi c repeat

and referral customer database.

3. The Right Strategy: We focus

on how customers buy rather than

how we like to sell. Customers are

shopping online so we have shifted

our advertising strategy to ensure

we have a market presence where

the customers are; on the internet.

4. The Right Technology: We

had the templated websites from

Reynolds, Third Coast Media and

Cobalt but we did not get many

leads from any of them. We hired

a company called BZResults.com

to custom build our online buy-

ing service and they gave us all

the tools & training we needed to

promote, manage and measure all

of our customer activity. We expe-

rienced massive growth instantly.

5. The Right Marketing: We

have used TV, radio, print, direct

mail and other advertising media

with disappointing results. When we

switched our advertising strategy to

focus on using the web and CRM

Success Story

“With our new online buying service, we sold 500 extra cars in one month at a much lower cost per sale compared to tradi-tional advertising.” Rad Weaver, Internet Director Red McCombs

• Right Vision

• Right Attitude

• Right Strategy

• Right Technology

• Right Marketing

• Right People

• Right Process

to attract more customers our traffi c,

leads and sales increased while our

cost per sale decreased. We now ad-

vertise where people shop and buy.

6. The Right People: We prom-

ise a world class experience to our

online customers. The only way

to deliver this is to staff the de-

partment with the right people;

otherwise it’s just lip service. Our

people are able to provide our cus-

tomers with all of their options and

help them feel more comfortable

in making a purchase decision.

7. The Right Process: We

improve our sales when we im-

prove the buying experience for

our customers. Some customers

don’t buy for 1-4 months and to-

day, 75% of our follow up process

is automated with our customer

management system, Buzztrak.

8. The Right Results: We have

increased our online sales from 100

vehicles to 500 vehicles a month

and our cost per sale is dramati-

cally lower than our traditional

mass advertising. Most impor-

tantly, we have customers who

absolutely love buying a car from

us and that is our primary mission.

Success Story

Since implementing their new web site and CRM tool, Red McCombs is selling an additional 500

cars a month.

Red McCombs learned that more than 70% of their customers were starting their shopping online,

so they adjusted their advertising to reach them, sell them and keep them loyal.

Red McCombs has increased gross profi t from $60k per month to over $750k per month while also

increasing CSI and customer loyalty.

Red McCombs increased their closing ratio from 3% to 19% by automating much of their follow up.

Red McCombs uses email marketing campaigns and search engine placement to attract more

customers to their site and dealership for very little money.

www.RedMcCombs.com sells more vehicles than most large dealerships and it makes more money

because their cost per sale is below $200 per vehicle sold.

Red McCombs uses BZResults.com

•

•

•

•

•

•

•

“Our virtual test-drives generate leads to the phone, the show-room and to our Internet department. They’re a great way to increase sales with smarter marketing.” Rad Weaver

Rad cautions that the biggest mis-conception about the potential of the Internet is that it’s all about how many Internet leads you get and how many people email your dealership. He explains, “The great thing about the Internet is that ev-erything is measurable so we know that we get 3 times as many phone calls as email leads. For this reason, phones have become the main focus for our dedicated staff. We rely on automation to handle the email fol-low up so that our people can focus

their energies on using the phone to set appointments. We were los-ing a lot of deals every month due to poor follow up and poor time management. Automation makes it easier for us to manage our time and maintain our focus.” Their ap-pointment setting ratio is now triple the national average and the team is committed to keeping that trend on an upward track. Rad adds, “We fi rmly believe in the importance of tracking and measuring perfor-mance results. This is easy for us

now because our CRM tool auto-matically emails the reports we need daily, weekly and monthly which makes it easy to identify issues that need to be resolved. In the past, we waited until the end of the month, and at that point it is often too late. It’s just one more example of how automation makes our lives easier and more jobs more profi table.” The people at the dealership are ex-cited about what they have accom-plished but they’re even more excit-ed about what they are going to do.

Success StoryG

ross

Pro

fit

2003 2005

73% of buyers use web to research before buying.Therefore dealers are shifting their ad budget to attract and sell these customers.