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three steps to building a dynamicworkforce in the dealership
terrySheridan 26
how to land a sale on a strip-lineturning customers into buyers through build-up and take-away
mattBaker 24
unfair? you bet it is...JimRadogna 18
turning your reviews into a marketing machineyou’ve gathered those 100+ positive reviews, now put them in motion
richardWinch 30
howardLeavitt 28 empowering your sales staff
susanGivens 08 penske revolutionizes online marketing with penskecars.com + penskesocial.com
the death of the traditional dealership,part 5
markTewart 22
automotive dealership websitesand digital marketing
seanv.Bradley 20
tax season is growing againchipWiley 14
what’s your best price? i’m glad you askedmarshBuice 10
scottJoseph 32 14 traits that exist in everysuccessful dealership, part 1
an interview with davidWithnell
marketing solutionSusanGivens
08 autosuccessonline.com
By offering consumers a one-stop shopping portal to thousands of vehicles, a recently launched Website is bringing together dealers from across the United States and increasing their visibility to the car-buying public.
Penske Automotive Group has launched PenskeCars.com, a national Website that makes it easy for consumers, employees and partners to research, shop and maintain their vehicles 24 hours a day, seven days a week. And, by combining traditional marketing with a social media component, Penske properties, their partners and thousands of employees are looking to build a national network by creating a fully integrated social media platform.
“We did a lot of testing and took our time before we did the launch,” said Terri Mulcahey, Vice President of Business Development at Penske. “Consumers wanted lots of photos, vehicle history reports and multiple search options. Now they can browse through our one-of-a-kind inventory 24 hours a day, seven days a week when it is convenient for them.”
PenskeCars.com allows consumers to view and compare nearly 25,000 new, certified and pre-owned vehicles, representing more than 40 brands located at 173 of its retailers across the country. The site also provides consumers a simple method to schedule maintenance and repair services at their local Penske Automotive dealership.
The complete consumers experience includes extensive vehicle information including photos, videos and Carfax history reports for pre-owned vehicles and warranties. “Not only can consumers browse the more than 25,000 new and used vehicles, but they can even schedule service appointments online,” Mulcahey said.
PenskeCars.com also is designed to integrate with social networks so consumers can interact and connect with each other while sharing news, events, photos, videos and promotions from all of the company’s dealerships in the United States.
By creating a contest that consumers can enter to win smart phones and VIP racing experiences, the company has created a viral social media event to spread the word about the portal in ways that traditional marketing cannot. The contest platform uses sophisticated technology that allows a contestant to increase their chances of winning by sharing the contest via Facebook, Twitter or e-mail.
“The Penske brand is perfect for social media because it is a name people trust, and that is the foundation of a successful social media strategy,” said Sean Wolfington, owner of the marketing company that launched PenskeCars.com and Penske’s Social strategy.
penske revolutionizes online marketing with penskecars.com + penskesocial.com
Susan Givens is the publisher of AutoSuccess. She can be contacted at 877.818.6620, or by e-mail at [email protected].
sales & training solutionMarshBuice
10 autosuccessonline.com
Not a day goes by that a salesperson is not asked, “What’s your best price?” If this question is handled in an insincere way (if answered at all), it could send a customer in a rage with smoke billowing out of their ears ready to pummel the salesperson for not answering the question. Price has very little to do with making a sale. Don’t believe me? If price had anything to do with purchasing a cup of coffee, why would anyone pay five times the amount for a cup of “celebrity” coffee when they could pay far less at the “get-it-and-go” gas station? Customers pay for two things: experience and value. When experience and value outweigh price, a purchase is made. An investor — a.k.a. customer — questions what the potential gain will be for the risk taken. Put another way, will the return exceed their investment? It is time to stop being defensive on price and begin to embrace the thinking behind P.R.I.C.E.
p — prepare:Henry Hartman said, “Success always
comes when preparation meets opportunity.” Discipline will beat talent every time. Building the proper foundation of knowledge is critical toward becoming successful. As it is written, “It is like a person building a house who digs deep and lays the foundation on solid rock. When the floodwaters rise and break against that house, it stands firm because it is well built.” If you are disciplined to study not only everything about your product, but also the relevant information of your competitor’s product, you will beat the most talented, undisciplined salesperson. Talent is what you can do naturally; discipline is a regimen that develops or improves a skill. “Nothing is more common than unsuccessful people with talent.”
r — remember:Patricia Fripp put it best when she said, “Remember, it’s not your customer’s job to remember you. It’s your obligation and responsibility to make sure they don’t have a chance to forget you.” Your stage is an opportunity to showcase what you and your
product can do for your customer. Keep in mind that even though you have performed your show (product presentation) many times each day, six days per week, the customer has not seen your show. Think as a Las Vegas performer — perform for the audience as if every night is opening night. Create a carnival-like atmosphere for your customer that will be enjoyable to both you and them.
i — identify the needs of your customer:Each customer’s needs are as unique as a thumbprint — they are all different. Do not make the mistake of giving a “canned” presentation to every customer. If your
presentation is not geared specifically towards your customer’s wants and needs, it could result in a lost opportunity for a sale. You should present your product that will address questions such as: Who is the main decision maker? What is the need for your product? Why is your product superior to your competitors’? When will they need your product? How will your product serve their needs?
c — collate everything into a professional, tailor-madesales presentation:You must, must, must display enthusiasm when presenting your product. Zig Ziglar maintains, “For every sale you miss because you are too enthusiastic, you will miss a hundred because you are not enthusiastic enough.” Preparation breeds confidence; confidence makes way for enthusiasm; enthusiasm paves the road for the sale.
e — establish a relationshipwith your customers:This is the most important stage in the sales process. Customers do not want to know what you do; they want to know you care about them. Selling is just like dating — a transference of feeling. When you meet someone, you work hard to establish rapport, credibility and trust. If you can establish those key ingredients, you may get a second date. In his new book, The Sales Bible, Jeff Gitomer wrote, “If you make a sale, you can earn a commission. If you make a friend, you can earn a fortune.”
So the next time a customer asks for your best price, confidently respond by saying, “I am glad you asked!” Know that your best price comes from all of the preparation in your product, remembering to make their experience unique and fun by identifying their wants and needs, collating all of it together onto your “Vegas-style” stage, all the while remembering throughout the sales process you are establishing a personal relationship with them. As long as you walk on this earth you are going to be something; you might as well be successful.
Marsh Buice is the sales manager of Mark Dodge, Chrysler, Jeep. He can be contacted at 866.535.5006, or by e-mail at [email protected].
what’s your best price? i’m glad you asked
the challengeIn recent years, few have been untouched by the challenging downturn in the economy. Withnell Dodge in Salem, OR was no exception. Learning from past mistakes and embracing new efforts was the only way that David Withnell felt he would be able to turn things around and remain competitive in his market. The days of waiting for the doors to swing and customers to flock to his store had long passed.
Discovering how to change this ineffective model by looking in the mirror may have been the hardest part. Improving customer retention, maintaining long-term contact through the customer life cycle, changing the haphazard approach to follow-up and advancing into the modern era of digital technology were all things that needed to happen — simultaneously and soon.
the solution“Once all of our needs for improvement were clearly identified, we were able to move forward,” said David Withnell. “Finding a solution that worked with much more consistency and accuracy, while providing measurable ROI, was the only answer for us.” Withnell Dodge decided to take matters into their own hands and manufacture sales. “Waiting wasn’t an option; we had to make it happen.”
Withnell Dodge looked to a familiar place for assistance. With direct help from their CRM partner, Withnell and their CRM consultant designed a strategic marketing road map. They integrated numerous digital strategies into one cohesive plan that not only made sense, but was easy to implement and execute. “Combining various media in different ways gave us the flexibility to reach our customers in a method that best suits them,” Withnell said. “With the availability of eNewsletters, digital Web ads, timely equity alerts, permission-based marketing, and managed campaigns, along with the help of our consultant maximizing the use of each piece, this has proven to be the right and profitable approach.”
The overall strategy that Withnell adopted changed with the implementation of their marketing solution. David began meeting weekly with his GM and others to hammer out their messaging and target audience. Once this is decided, their consultant does all of the work for them — determining timelines, media selections and execution strategies, all the while keeping ROI top on the list.
the resultsIn the last two years, Withnell Dodge has seen an explosion in improvement. From 2009 to 2010, they generated a 358 percent increase in campaign-related sales. “A utilization of everything available to us, along with the drive for success from our consultant, has made this happen,” Withnell said. They have already executed 14 campaigns in 2010 and are actively planning more; this will push their sales even further and encourage the level of consistency in customer touches the dealership so desperately needed. “Consistency in customer touches, coupled with the pattern in which they are sent has been the single greatest improvement to our execution since moving to a digital-based marketing strategy,” Withnell said. The dealership has proved that sending the right message, to the right customer, at the right time is the biggest component to the entire strategy.
Along with improved sales, Withnell Dodge is also seeing an increase in gross from customers sold through their business solutions campaigns — a nine percent increase in new car sales during the last three months, to be exact. “Maintaining contact with our customers generates loyalty and a level of comfort that breeds trust, and results in better sales,” Withnell said. The dealership maintains its presence, but doesn’t overwhelm its customers, as there is a fine line between advantageous and annoying that constantly has to be monitored. “Customers will let you know when they are getting too much,” Withnell said. “You have to listen and keep a ‘quantity vs. quality’ thought when designing the message.
“In today’s world,” Withnell continued, “no one product will solve all problems; however, the combination of effective
tools through our CRM solution enables us to best meet our customer’s needs. This is seen in the sales we are able to manufacturer month after month.” One such tool is their professionally designed digital Web ads. Created with dealer involvement, these highly engaging e-mail marketing pieces feature specific, monthly messaging that speaks directly to each target audience. Follow-up campaign tactics are then employed to generate immediate, and best of all, trackable results.
One such campaign recently featured 10 vehicles less than $10,000. Searching out the best demographic with interest in this specific category of vehicles, along with a custom-designed Web ad resulted in a 98 percent delivery rate, 12 percent open rate (well above the industry average) and a gross of almost 50 percent higher than that of a normal sale. The return far exceeded their expectations. “Our ‘10 Under 10 Campaign’ was a huge success. We couldn’t be happier with the results, and can’t wait to do it again,” Withnell said. “Web ads allow us to pinpoint a single message to a targeted group regarding everything from events, vehicles, incentives, products and more. This level of individualized messaging extends to both the topic and recipient as they feel it was custom designed for them, proven by the results from our ‘10 Under 10 Campaign.’”
And the success continues each month. Their March campaign resulted in 10 sold vehicles with a 14 percent increase above the average gross, while a June service campaign resulted in 139 repair orders, averaging more than $200 per person. “Without the professional efforts of our CRM consultant to help drive these campaigns, we would have never seen such great results,” Withnell said. “I attribute a lot of this success to the partnership we have developed, which will further drive our efforts for a long time to come.”
This renewed and collaborative approach has given Withnell Dodge a leading edge. Generating sales during even the worst economic times kept them from struggling like many in the industry. Maintaining their market presence instilled trust in their clientele, creating lifelong loyalty that is so desperately sought after in any industry, but specifically that of the automotive world. They now have a better understanding of a customer’s life cycle and can therefore market to it more effectively.
With the right partner, industry leading tools, and customized approach, Withnell continues to manufacture sales through the best digital technology available to auto dealers today.
For more information about David Withnell or Withnell Dodge in Salem,or, visit www.WithnellDodge.net.
For more information about Autobase, contact the director of marketing, Steve Lausch. He can be contacted at 866.626.7128, or bye-mail at [email protected].
marketing solutionChipWiley
14 autosuccessonline.com
For years, car dealers have looked to the first quarter and tax season for a boost in cash flow. Retailers who are not prepared to capitalize are missing the boat on this once-a year cash-grab that arrives every January.
Do you realize how much free money is out there for your customers?
A general rule of thumb is that a family with two children making $25,000 to $30,000 a year will get a minimum of $5,000 back as a refund. Incomes as low as $16,000 can yield refunds of $10,000. Most of that refund comes from the Earned Income Tax Credit, which does not phase out until a family earns nearly $50,000 a year.
The customer already knows this money is coming. In fact, they are already planning on how to use it.
In the tax business, drastic improvements to technology and the use of the Internet have saved dealers more time and money than ever. Instead of a tax refund deal taking one or two hours to complete, many can be finished in 10
•••••
AutoRaptor CRM
minutes or less. Funding of a tax refund has also dropped from days to a matter of hours. Truly, a lot has changed.
Before 2006, obsolete technology made the process painstaking and time-consuming. The upgrades over past few years have rejuvenated the once-disenfranchised dealers, who are now thrilled with the speed and ease of current tax programs.
These improvements make car dealers faster than the national tax chains. Customer’s can sit in a tax office waiting area for up to two or three hours. Car dealer customers can be serviced immediately.
The vast reduction in the time invested relates mostly to a minimum amount of data entry and processing. No actual tax experience is needed to run a tax refund program from a dealership. All responsibility and work is being taken on by the tax service provider.
As far as tax season is concerned, the actual tax refund season is expanding.
The traditional refund season of January and February is still strong. Over the past couple of years however, November and December have become prime selling seasons. Dealers who possess more flexibility in their financing options are even moving cars in the fourth quarter in anticipation of the upcoming tax refunds. They simply estimate the customer’s tax refund to-be and move the vehicle on that figure.
Using a pick-up payment is just one way to make this program work. It just depends on your individual state. The more helpful tax companies, who specialize in dealer-customers, will assist you in setting up such a program.
Remember, the customer is already making plans on how to use their big tax refund check that comes every January. Any dealer who wants to succeed must work their way into that existing mind-frame and think outside of the box.
Chip Wiley is the GM and senior marketing advisor for Tax Refund Services Tax Max. Hecan be contacted at 866.387.7217, or bye-mail at [email protected].
tax season isgrowing again
leadership solutionJimRadogna
“Buyers are liars.”
I don’t think I was in the car business one hour before I heard that catchy little phrase. Sure enough, over the course of my retail career, I suspect I was lied to over and over again by the best of them.
I’m not going to pontificate about what buyers lie about and why — many of us could easily write a book on that subject. Instead I’m going to bring up what I think is an important point: Buyers can say pretty much whatever they want without fear of recourse; dealers cannot. Yep, that’s right. Buyers can outright lie through their teeth, but dealers are not allowed to stretch the truth even a little.
Doesn’t seem fair, does it? Well, it’s not. All may be fair in love and war, but it sure isn’t fair on a car lot. For the most part, when buyers lie to a dealer, they get to go on their merry old way. But if a dealership is accused of being dishonest with a customer, either by commission or omission, they may end up in a courtroom or worse.
When you look at actual enforcement actions and court cases against dealerships, there is typically one common element: the perception that the dealer was less than completely honest with a consumer. The laws allow for a very broad interpretation of what is considered to be unfair or deceptive. Here are some common examples of accusations by plaintiff’s attorneys and regulators:• Making false statements or failing to
disclose material facts to a consumer
• Oral promises made to the consumer that the dealer fails to deliver upon
• Misleading statements about APR, such as “You won’t be able to get a better interest rate than this,” when the buy rate is being marked up
• Communicating information in a manner that may be misleading, either by commission or omission
• Adding the cost of an F&I product to a consumer’s purchase agreement or lease without first obtaining the consumer’s
express consent to purchase the product• Informing or suggesting to a consumer that
the price of any F&I product is included in the price of the motor vehicle
• Informing or suggesting to a consumer that the sale or lease of a vehicle subject to credit approval is a final or completed transaction
• Altering documents without the knowledge and permission of all parties
• Obtaining a credit bureau without proper authorization
• Failing to sell a vehicle at or below an advertised price, whether or not the consumer knows about the advertisement
• Advertising vehicles with intent not to sell them as advertised
• Misrepresenting discounts in advertising and not disclosing important limitations
• Advertising claims such as “everyone financed,” “no credit rejected,” or similar claims when the dealer is unwilling to extend credit to any person under any and all circumstances
• Engaging in false or misleading advertising, either orally or by way of media
• Advertising “no money down” or “zero drive off” when there is actually some money needed to achieve the advertised payment amount (such as tax, license, acquisition fee, etc.)
• Representing to a consumer that a vehicle is available for sale when it is not
• Informing or suggesting to a consumer that an F&I product is a required purchase
• Informing or suggesting to a consumer that purchase of an F&I product will increase the likelihood that the consumer will be approved for financing or that financing will be approved on more favorable terms to the consumer
• Increasing the selling price of a vehicle to cover a bank acquisition fee
• Intentionally overstating a vehicle’s value by supplying an incorrect book-sheet or due bill to a financial institution
• Over-allowing on a trade-in, thereby increasing the sale price of the purchased vehicle or failing to properly disclose negative equity
• Misrepresenting the amount of rebates available to a customer
• Engaging in payment packing, i.e. inflating payments, inflating down payments, extending the contract term or in any way disguising the actual charges for goods or services.
• Knowingly delivering a vehicle where the lender or lessor will not approve the consumer for financing according to the terms set forth in the installment sales or lease contract, with the intention of re-writing the contract at a later date
• Failing to properly disclose deferred down payments
• Knowingly misrepresenting a vehicle’s prior history or condition, either by commission or omission
• Forging documents• Knowingly misrepresenting a vehicle,
products or the terms being offered• Falsifying, or allowing to be falsified, any
information on a credit application • Knowingly allowing a consumer to
participate in a “straw purchase”• Misrepresenting the scope or extent of
coverage under a service contract or warranty
It’s more important than ever to be very careful when dealing with customers. Plaintiff’s attorneys are constantly on the prowl for cases and regulators who recognize the political capital in going after dealers. There’s just no upside to being accused of lying.
The good news is that you can feel free to lie to car salespeople in your spare time.
Jim Radogna is president of Dealer Compliance Consultants, Inc. He can be contacted at 866.704.8657, or by e-mail [email protected].
unfair?you bet it is...
18 autosuccessonline.com
marketing solutionSeanV.Bradley
automotive dealership websites anddigital marketing
20 autosuccessonline.com
NADA says that you have a six percent OEM closing ratio (within 30 days), and eight percent third-party provider closing ratio, and a 16 percent or better closing ratio to your dealership Website, plus higher gross profit
It is a waste of money, however, if you spend money driving traffic to your Website and your Website sucks. And what do I mean when I say a Website sucks? I mean it doesn’t have a strategy. Many dealership’s sites look like they were mass produced on an assembly line; there is no uniqueness, and there is no unique value package proposition. There isn’t a crystal clear reason from the start why someone should buy a vehicle from that dealership.
Here are some more facts:• More than 88 percent of Americans go
online before they step foot into your dealership
• The average prospect searches between five to seven other Websites or dealerships besides yours
• The average buying cycle is 45 to 55 days• Average prospect spends more than six
hours online doing research
Put yourself in the customer’s shoes. If you are the average prospect in the market for a vehicle and you are researching online, you are getting bombarded by a myriad of dealers who are aggressively trying to sell you a vehicle. How do you differentiate which dealership to do business with? One way to decide is researching the dealership’s Website. If you go to the dealership’s Website and you find nothing but generic, cookie-cutter information and none of it gives you a clear reason why you should buy a vehicle from that particular dealership, how inclined are you to actually buy a vehicle from that store?
Let’s redirect here and look at it from a different perspective. How much more successful would you be if the client was able to go to your dealership’s Website and see right there, clear as day, “Why you should buy a vehicle from ABC Motors?”
If you have any questions about creating a value package proposition for your Website or you would like me to review your Website for free and give you my opinion, please feel free to call or e-mail me with the information below.
Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at [email protected].
Digital marketing has to start somewhere, but there are so many layers to it that it can be confusing. Where do I start first? What is the best campaign? Should I focus on third-party providers or SEO or e-mail blasts? Let’s make some sense of it all.
First and foremost, with digital marketing everything needs to be thought out and calculated. We are trying to create an opportunity, but what type? A phone call? An e-mail? “Internet Walk In”? These are fine, but the best opportunities come from your Website. Why?
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22 autosuccessonline.com
leadership solutionMarkTewart
the death ofthe traditionaldealership P
AR
T 5
The average dealership hires a salesperson and, after a brief introduction of paperwork, allows the salesperson to begin talking to and selling to their customers. Some dealerships may send the salesperson to a meeting room to watch a series of perfunctory training videos and then cut them loose on the showroom floor to sell. Either way, the day of unleashing an untrained salesperson on a well-trained customer is dead.
The days of counting on a steady stream of traffic and allowing salespeople to train through trial and error are over. The margin for error has been erased. The customers are now unforgiving in having salespeople on the job train at their expense. The customers, through the use of the Internet and their information gathering, have driven the competition for their business to another level.
Selling can no longer be taught solely as features and benefits. Selling is an educational, experiential process won by salespeople and dealerships who have worked diligently at becoming a category of one. A new salesperson with a lack of intense education — from cradle
to grave of their careers — is doomed to failure or mediocre results at best.
No longer can dealership leaders allow the idea to permeate their business philosophy that veteran salespeople can’t, won’t or don’t need to be trained. The marketplace is unforgiving and cares only about results. An experienced salesperson without continual updated information and education is no better, and often worse, than an untrained new salesperson. The meaning at the root of the word “sell” is “to serve.” At least a new salesperson usually has an attitude of servitude that may be lacking in an often jaded but experienced salesperson.
Death is a cessation of movement and an unwillingness to adapt and accept change. Today’s marketplace demands that businesses be staffed with team members who display “teachable spirits.” Dealerships who wish to be in a position to compete for a customer’s business will have an intense written, communicated and required game plan for continual education.
The average technician in a dealership can have tens of thousands of dollars invested in education, tools and tool boxes. What about your salespeople? What investment is the salesperson making in his tools? What investment is the dealer making in that person who, with one bad contact with a customer, can in the short term cost the dealer thousands of dollars and, in the long term, hundreds of thousands of dollars.
Education is not a sometime thing but an everyday habit. Doctors, lawyers and brain surgeons don’t stop educating themselves upon graduating from school. Would you want a doctor to operate on you who has not been trained on the latest techniques and best practices? I once had a dealer tell me they were waiting to see if a salesperson was going to make it in the business first before investing in him. The only thing worse than investing in a salesperson who does not make in the business is not investing in a salesperson who does make it in the business.
For a free special report “10 Things Your Dealership Must Do To Be Successful” e-mail me at the address below with “10 Things” in the subject line.
Mark Tewart is the president of Tewart Enterprises, and the author of the best seller, How To Be A Sales Superstar. He can be contacted at 866.429.6844, or by e-mail at [email protected].
sales & training solutionMattBaker
24 autosuccessonline.com
how to land a saleon a strip-lineturning customers into buyers through build-up and take-away
After a few months of sharing sales technique articles with AutoSuccess readers, I’ve received a lot of requests for additional techniques and word tracks — especially ones regarding reverse selling. I’ll be the first to admit that this concept isn’t for everyone. Of course, many who’ve put forth the effort to master this technique have been well rewarded and feel less pressure when selling. For most, however, it will require lots of practice, commitment and time to comprehend. That’s usually why most stop short.
Today we’ll be digging deep into the reverse selling technique and uncovering how to develop and execute strip-line statements that downplay customer’s interests to move you closer to a sale. Strip-lines are a communication tool for salespeople looking to differentiate themselves from all the others. The type of personality or ego a salesperson communicates from will dictate how a customer reacts and vice versa. Until you’ve learned how to identify and manage your ego (as well as your customer’s ego), word tracks won’t get you far. How hard is it to identify and manage egos in sales situations? Believe it or not, it’s as easy as P-A-C.
P-A-C is an acronym for ‘Parent Adult Child’; the three root states of our ego according to the theory of Transactional Analysis by psychologist Eric Berne. While the name may seem intimidating, the concept is quite simple. According to Berne’s theory, when a salesperson and a customer communicate back and forth, they are doing so from one of three ego states: parent, adult or child.
the parentThe Parent ego is our voice of authority. People communicating from the Parent ego will show physical signs such as angry expressions or impatient body-language. Verbal communication from this ego is often in a demanding, authoritative or frustrated tone and includes strong, judgmental language such as the words “always,” “never,” “should” and “must.”
the adultThis ego encompasses our ability to make
informed decisions and is the force by which we manage Parent and Child egos. Your ideal sales situation will involve you and your customer both communicating through this state. Physical characteristics of this ego include attentiveness and non-threatening gestures. Verbal communication from the Adult ego is straight-forward with a tone of equality and friendship, often using questions such as “Why?” What?” “How?” “Who?”
the childThis is our emotional state where anger, fear, insecurity or despair will dominate. People communicating from the Child ego will show physical signs such as whining voices, rolling of the eyes or shrugging shoulders. Verbal communication from this ego is often in an emotional tone and includes statements such as “I wish…” “I want…” “I don’t care…” “How come?” “That’s not fair…,” etc.
The ego that either the customer or the salesperson will communicate through is determined by their feelings at that moment, and can easily shift at anytime. To ensure success in sales, the state of your ego and the customer’s should remain at Adult. So what happens if the customer’s ego is more Parent or Child? You, as the salesperson, must identify and understand the ego from which the customer is coming, then make an attempt to move them to their Adult.
One way to accomplish this is by using an aspect of reverse selling known as strip-lines. Strip-lines are all about building up the customer’s ideal situation, then gently taking it away. For instance, let’s pretend you’ve spotted a male customer on your lot in his early forties, dressed sharp but sporty. He’s told you what price range he’s looking for, and you have a good idea of the cars in your inventory that will suit him based on his apparent interests. But the two of you seem to be struggling to get any closer to a sale. Why? Because you and the customer are communicating on non-compatible P-A-C levels. Here’s how you might fix this situation:Salesperson: “We have two sedans in the price range you want. One is a nice spacious
family car. The other has a sportier look, feel and drive to it. Is it fair to say you probably wouldn’t be interested in something sporty like that?”Customer: “Yes, I would. I want something sporty.”Salesperson: “Aren’t you interested in a more a family-oriented car?”Customer: “No way”Salesperson: “Why is that?”
Note the beginning of the conversation in this example. The salesperson approaches the customer in an Adult frame of mind. The customer responds from the Child portion of his ego, demanding what he wants. The salesperson had a good idea that the sportier option would be right up the customer’s alley, but needed a way to get the customer reengaged in a more Adult to Adult conversation. By challenging the customer’s wants, the salesperson helps the customer shift frame of mind from a Child to an Adult.
Some additional examples of strip-lines include:
“This may not wow you…”“I don’t suppose _____________ are a problem?”“I don’t know if you need anything from me.”“I don’t know if I can help you, what are you hoping for?”
When used correctly these phrases reverse the sales situation requiring the customer to sell the salesperson. After all, the most effective sales pitch will always come directly from the prospects mouth. Strip-lining is one of the most effective ways of accomplishing this.
If you are interested in learning additional strip-line role plays and word tracks, e-mail me at the address below with the subject line STRIP-LINE and I will send you a copy of G&A’s Guide to Improving Sales Talent: Strip-Lines.
Matt Baker is the vice president of sales for G&A Marketing. He can be contacted at 866.618.8248, or by e-mail [email protected].
leadership solutionTerrySheridan
26 autosuccessonline.com
With the recession moving into the rearview mirror, many dealerships are eager to put the past year behind them and be ready for the prospects that lie ahead. However, one of the most important opportunities for success dealers may be overlooking is located within their own four walls — with their employees.
From finding and hiring new talent to keeping track of all the activities and paperwork related to managing employees, personnel costs are easily the No. 1 expense item in the dealership. In the automotive retailing industry – where dealerships can experience employee turnover rates as high as 50 percent or more – the ability to manage employee relationships effectively can go a long way toward helping a dealership reduce costs while improving productivity and business operations.
A Cornell University study showed small businesses that hire workers who fit the company’s culture achieve 22 percent more revenue growth, 23 percent more profit growth, and 67 percent less employee turnover. Now, apply those numbers to your dealership and you can begin to see the impact your hiring and employee management practices could have on your business.
If you’re ready to foster a workforce that supports growing your business operations, here’s a best practice approach that’s proven to be very effective for helping to find and retain quality employees.
1. find the right person forthe Job – screening assessmenttools are essentialAccording to June 2010 U.S. Department of Labor statistics, after months of job loss in the automotive retailing sector, hiring has been on the rise in dealerships. For dealers in the market to hire, the store closings that occurred in the past year have created a flood of potential job candidates. However, while the supply of applicants may be higher in this economy, it takes more than luck to hire the right person the first time. If you have ever spent an afternoon interviewing applicant after applicant, only to realize that not a single candidate was a good fit for the position, you
understand the time that can be wasted and the money lost during the hiring process.
Assessment screening solutions can help dealerships get ahead of the curve – before a candidate sits down with you for the job interview. Assessment screening solutions:• Provide a streamlined system for tracking
and vetting applicants to identify those who have the right personality, cultural fit, work habits and motivation that match the dealership
• Allow dealers to work quickly and effectively through the hundreds of applications they may receive for a job opening
• Provide dealers the luxury of interviewing only the best-matched candidates for the job
• Help reduce the time required to manage the hiring process
2. know who you are hiring – background screening helpseliminate surprisesIn the interest of filling a position, many dealers understandably may want to rush the process of getting a new person hired. However, hiring without conducting the proper background screening of a candidate could result in problems that are costly in both time and money. Who today has not heard stories of employers who learned too late that an employee hid a criminal history or a bad driving record?
Background screening services for bringing new employees on board – and for ongoing screening for existing employees – is a critical element of best practice employee management. These typically include drug and alcohol, reference, motor vehicle record, criminal background and other essential screenings.
Web-based background screening systems make it easy to order, track and review a full range of personnel checks in order to make informed employment decisions.
Hiring just one wrong applicant can cost a dealership thousands of dollars or more. In the long run, it is less expensive to do a background check than to deal with the
disruptions to the work place, liability issues and the potential financial loss that may result from employing the wrong person.
3. employee satisfactionday-to-day means a betterbusiness for your dealershipMaintaining accurate employee files and managing career path through every aspect of employment is a critical aspect in developing a workforce that is prepared to achieve success for the dealership. However, handling that large amount of workforce data is becoming an increasingly complex process.
Employee management systems today are far more sophisticated than in years gone by. From speeding up the payroll process, to tracking vacation and sick pay, to logging benefits and employee training, to monitoring employee certifications and licensures, to developing and managing career path progression, these systems help eliminate time spent manually logging data, improve dealership compliance with government employment regulations and increase employee satisfaction on the job.
Today’s challenging environment requires that dealerships have good, productive employees. Following best practice processes in employee management will help dealers identify who will be the best fit for the jobs at their dealerships, hire those who will be the most successful at the job, and who, in turn, will be the happiest in that job. Together, this increases the likelihood that dealership employees will be more productive and satisfied at work and will stay longer with the dealership. Ultimately, all of this contributes to the bottom line of the dealership.
Consult with your dealership management system provider to learn more about tools that are available to help you build a dynamic workforce that can help to grow your business.
Terry Sheridan is the product planning manager for Employee Management Products at The Reynolds and Reynolds Company. He can be contacted at 866.440.3445, or by e-mail at [email protected].
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empoweringyour sales staff
“The reason why so little is done is generally because so little is attempted.”
- Samuel Smiles 1812-1904
How many owners and managers are dissatisfied with their sales staff? I would venture to say there are more who are dissatisfied than satisfied. There is a whole industry of sales training companies and facilitators that exist simply to provide services to improve the capability of your sales staff. The solution to helping unqualified salespeople is much deeper than simply providing training seminars. It goes to the heart of what I see as a mindset in the industry.
If you speak to your peers who run sales floors, you will probably hear a common theme. Salespeople are lazy, and if you empower them you will lose gross profit. If you do not attempt to change the mindset, little will change and we will continue to have unqualified sales staffs.
To change the culture that exists, we need to start with the hiring process. How do we
attract smart, personable people who like a challenge and are financially driven? Dealers somehow feel that requiring 50+ hours with late nights and no holidays or vacations will attract the best of the best applicants. If you put in little effort to hire and train, you will get the least qualified staff in return. Many dealers have come to the conclusion that they need to hire non-car people, and spend the time and resources to teach them the sales process that they want in their stores. This eliminates any old habits or built-in reluctance to change.
Usually, the first employee to meet a new up is one of your sales staff. Why would you want your staff with the least amount of training to be the one creating the customers’ first impression? Think of the money you spend on training for technicians and the levels of certification they have to attain to work on today’s vehicles. New sales hires are told to read the brochures and watch what the other salespeople do in the sales process.
That happens every day and then we wonder why we are unhappy with the results. Hiring mediocre salespeople to fill positions creates mediocre results; we are reluctant to look for the best. It is not to say that all your sales staff fall into the above category, but I would venture to say that the majority do. We can change as an industry only if we change as individuals and treat the sales position at the professional level it deserves.
To have a professional staff, you must conduct formal training: in the sales process, in the structure, in the dealership policy, in the product and in the methods of turn-over to your managers to close the deal. Many managers have to start from the beginning of the
sale with the customer when a turn over occurs because the salesperson did not know what they were doing. Closing is simple if the turn over is done correctly. Trained and empowered salespeople make managers look like stars. By empowering your sales staff, you will give your managers the ability to close more deals by using their skills to see and win the deal.
Before you can empower your staff, you need to understand the skill level of your sales staff. If you do not evaluate each salesperson, you will never know his or her potential to bring the deal to a close. Management’s daily involvement in the sales process is essential. It is not just the numbers; it is about accountability and the effective use of the sales process.
The most important part of your workday should be spent with your sales staff. Reviewing each up sheet, whether digital or paper, with each salesperson should be your priority. We all have vehicles to order, inventory to manage, advertising to schedule and 99 other tasks that stop us from working with our sales staff. However, when your sales team is empowered to work the deal within parameters that have been established, then your manager is empowered to close more deals. Salespeople can be the best of the best; it is a simple idea that requires discipline and perseverance.
Stop today — think about what comes first on your agenda. Ask yourself about your sales process: steps of the sale, presentations, follow up and demos. If there is no clear policy, make the changes and document the changes. You can start by:• Setting standards that all of your staff has to
maintain• Having the courage to replace salespeople
who do not perform to the standards you have set
• Evaluating monthly in an open atmosphere. I am a believer in using peer pressure to raise everyone’s goals
• Instructing your sales staff on how to properly turn over a customer to a manager and the importance of collecting all the contacts’ information
• Most importantly, correcting any negative thoughts and creating positive attitudes by encouraging excellence over mediocrity
Do it today to compete effectively in our new economy.
Howard Leavitt is the president and founder of AutoRaptor CRM. He can be contacted at 866.618.9053, or by e-mail [email protected].
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marketing solutionRichardWinch
30 autosuccessonline.com
Understatement: Online reputation management has attracted a lot of buzz this year. And it’s great news — many dealers have now begun to take their online review presence as seriously as their customers do, and are putting in place systematic review monitoring, management and gathering processes that are leading to significantly more “online referrals” and sales.
The inevitable downside of all concepts with major buzz, though, is the tendency to think “next.” Dealerships are so bombarded with online flavor-of-the-month strategies that just when they start implementing a real digital backbone, some new “digital siren” calls and they leave the work unfinished. Online reputation management is one such backbone. As long as there is an Internet — and consumers placing a huge value on the real-world experiences other consumers have had with products and services — it will remain the highest-ROI social media a dealership can implement.
So, many of you have probably begun to tackle your online reputation. You’ve gathered those 50 or 100 new, positive reviews for your sales and service departments, and now you need to keep building out your campaigns. One crucial way to do this is to start mobilizing those reviews — to turn them into a real marketing and closing machine. Here are some ideas that I found really work:
disperse reviews throughout the showroom & service departments• Buy freestanding whiteboards and put short,
interesting, glowing reviews on them near where you work your car deals.
• Put a whiteboard with short, exceptional service, parts and accessories reviews in your service waiting area.
• Try restaurant-style table toppers throughout the store featuring short reviews.
• Use indoor and outdoor banners featuring concise testimonials.
(Note: Not only will this saturated review
presence physically remind your customers how great you are, but when you ask for a review, they will have already seen great models, while noting how many other customers have already reviewed you.)
deploy reviews across your website• Build easy-to-find/access dedicated
testimonial or review pages at your Website.• Rotate short, glowing testimonials on your
homepage, or use a streaming “ticker” of reviews crawling on your homepage.
incorporate in all outgoing e-mails• In all of your outgoing e-mails and follow-
up templates, include one or two short, interesting prominent reviews. Keep these fresh: If you have a scheduled or automated follow-up e-mail process, the customer should see a new review each time.
• Feeling bold? Add a couple of live links to Google Local or the review sites where you really shine, and that specifically illustrate your competitors’ poorer reviews.
employee e-mail correspondence• Add a link to view dealership/salespeople
reviews in the signature lines of every one of your employee’s outgoing e-mails (i.e., “Click here to see what my customers have said about their buying service,) etc.”
• Train salespeople to add that link to all of their outgoing e-mails
social media sites such asfacebook and twitter• Encourage customers to write reviews about
your dealership on Facebook. There are free “Review Tab” applications that you can integrate into your Facebook page.
• Encourage your employees to post their favorite and most interesting positive reviews at their personal social media accounts (Facebook, Twitter, MySpace, LinkedIn, etc.)
let reviews do your selling• When working deals, have a system where
salespeople can easily pull up live pages
at Google Local or at the review sites, where your dealership’s/salespeople’s positive reviews “tell the tale” against your competitors.
• Have them compare your/their reviews to your competitors’ directly.
use video testimonials:they’re powerful and relatable• Video is an extraordinarily powerful way to
communicate with your customers, because “people like people like them.”
• Follow up with customers who have already written a great review for you; most are willing (and excited) to be on camera.
• Buy a Flip video camera ($149), and record testimonials at that exciting time of delivery.
• Unleash these video testimonials in diverse ways: Posting at YouTube, in your e-mail campaigns, in your Website content, etc. You can loop video testimonials on your showroom/service department TV screens/monitors.
use text and video testimonialsin traditional advertising• Use your new video testimonials in
traditional TV ads• Center newspaper ads or flyers around
testimonials, or feature a concise, compelling review in every newspaper ad, flyer or newsletter.
Breaking out and mobilizing your positive reviews across your physical store and across the Internet and other media pretty much means that wherever your potential customers glance — or click — they’re confronted with real, impactful validations of your business and salespeople. And remember, customers generated from reviews act a lot like old-fashioned referral business: They’re the highest-closing and grossing leads you will get.
Richard Winch is CEO & Founder of eXtéresAUTO. He can be contacted at 866.476.4389, or by e-mail [email protected].
turning your reviews into a marketing machineyou’ve gathered those 100+ positive reviews, now put them in motion
sales & training solutionScottJoseph
32 autosuccessonline.com
I have spent the last 20 years trying to improve our products and services to dealers. In doing so, I’ve invested countless hours interviewing the top dealers, managers and their salespeople. I realized that in virtually every successful dealership there are 14 traits that were always present.
1. people setting and achievingtheir own lofty goals andliving their dreams.The successful people I’ve studied did what they wanted — the way they wanted to do it. They didn’t hold back or follow the status quo. They reinvented the game and made all their competitors follow their lead. The people I studied had the ability to form a clear vision of what was possible and pursue it relentlessly.
2. easily and effectivelyovercoming obstacles.Obstacles come in many forms: competitive challenges, financial setbacks, health problems, cash flow difficulties, ignorance of advertising or marketing, etc. Yet these successful people
all managed to triumph over their obstacles through a common philosophy.
3. turning negatives into positives.The super-achievers I’ve studied did one thing better than anyone else they competed against: They reframed every problem or disappointment they faced into a solution or opportunity for greater success.
4. persistence.Everyone experiences failures. The people I studied never let that get in the way. They tried again, again and again until they succeeded. The people who do this succeed and succeed massively. They have a very empowering belief system that a vision is real and deserved. These people found the best way to realize their vision and circumvented every obstacle in their path.
5. ethics.The people I’ve studied have the highest ethical standards. They took firm stands on what they believed in and did what was right. They didn’t compromise, they didn’t sell out, and
they didn’t lower their standards. These are highly successful people who feel great about the way they got there. Taking the high road and operating in an ethical way intimidates competitors. It attracts the highest quality of employees, vendors and professionals and it serves like a magnet to bond you to the community or the industry in which you operate.
6. belief and commitment.Persistence does not work without a clear, strong belief in your right to have a goal and the reward you are after.
7. focus and unstoppable drive.Persistence, belief and commitment are all essential to success. Yet, without clear focus and unstoppable drive, you’ll only accomplish a fraction of your true potential. Focus is the ability to never let diversions get in your way. It’s the ability to cut to the “bottom line essence” in everything you do. Drive is the force you generate in your mind and business that lets nothing, no one, and no excuse stand between you and achieving your goal. Time doesn’t hold you back, either. Because when your drive mechanism is properly engaged, you accomplish more in a day than your competitors can achieve in a month.
Check back next month for traits 8 through 14.
Scott Joseph is the president of J&L Marketing, Inc. He can be contacted at 888.835.1689, or by e-mail at [email protected].
14 traits that exist in every successful dealership
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